Petroliam Nasional Bhd. (PET)’s Engen unit, the biggest South African importer of Iranian crude, said it has suspended imports of oil from the Middle Eastern nation amid economic sanctions by the U.S. and the European Union.
The company has contingency supplies in place, Engen spokeswoman Tania Landsberg said in an e-mailed response to questions. Engen, which operates the country’s second-biggest refinery based in Durban and with a capacity of 135,000 barrels a day, normally buys about 80 percent of its supplies from Iran.
Engen is “under heavy pressure” to halt Iranian imports because of sanctions, Petronas Chief Executive Officer Shamsul Azhar Abbas, said in a March 30 interview. Engen has sought alternative supplies but hasn’t yet received any, he said.
President Barack Obama signed a law on Dec. 31 that denies foreign banks that do business with the Central Bank of Iran access to the U.S. financial system. The U.S. may impose penalties should a country not make “significant” reductions in Iranian crude oil purchases in the first half of this year. A South African governmental team will submit a report to cabinet by the end of May that will advise on Iran, Energy Minister Dipuo Peters said today.
Sasol Ltd., which operates the Natref refinery in partnership with Total SA in Sasolburg, south of Johannesburg, said last month that it halted crude purchases from Iran, which provided about 20 percent of supply. Refineries operated in the country by BP Plc and Chevron Corp. don’t use Iranian oil. Royal Dutch Shell Plc will comply with U.S. sanctions, CEO Peter Voser said Feb. 2.
