South Africa’s Sasol Ltd. to avoid Iran’s oil

(The Wall Street Journal)

South Africa’s Sasol Ltd. said it is trying to diversify away from Iranian oil as sanctions from the U.S. and Europe increase pressure on those doing business with Tehran, The Wall Street Journal reported.

Sasol, which is the world’s largest producer of motor fuels from coal, depends on Iranian oil imports for 20% of its crude, which calculates to 12,000 barrels a day, at its Natref refinery, the Journal report said.

“In view of recent developments regarding trade restrictions and possible oil sanctions against Iran, Sasol Oil is diversifying its crude oil sourcing,” a company spokeswoman said to the Journal, declining to give further details.

The decision comes as increased sanctions from the U.S. and the European Union clamp down on Tehran’s ability to sell its oil. President Barack Obama signed into law on Dec. 31 legislation that punishes anyone doing business with Iran’s central bank, which routes most of the country’s oil transactions. Earlier this week, the E.U. agreed on sanctions that include an oil embargo on Iran that goes into effect on July 1.

Measures from the U.S. against countries can be waived if that nation shows a “significant” reduction in oil imports from Iran, and U.S. officials have fanned around the world—including to South Africa—to explain how the sanctions work.

“South Africa has not made a decision,” a spokesman for the Department of International Relations said to the Journal on the country’s position regarding sanctions against Iran. “The matter is currently under discussion.”

By Samuel Rubenfeld