By Devon Maylie
South Africa's Sasol Ltd. (SSL) said Thursday it has found suppliers to replace the crude oil it normally sources from Iran as the West imposes trade restrictions and sanctions on the Islamic Republic.
Sasol, the world's largest producer of motor fuels from coal, relies on Iranian oil imports for about 20% of its crude requirement, or 12,000 barrels a day, at its Natref refinery. South Africa as a whole relies on Iranian crude for roughly 25% of its oil imports.
"In view of recent developments regarding trade restrictions, introduction of both petroleum and non-petroleum sanctions and heightened military presence in the Strait of Hormuz, Sasol Oil has sourced alternate suppliers to meet its crude oil requirements, thereby mitigating risks associated with oil supply disruptions from the Middle East," the company said Thursday.
The energy producer said in January it would seek to diversify away from Iranian crude. At the announcement of its results earlier this month the company's chief financial officer said it already buys from Saudi Arabia so could buy more from there.
It didn't provide details on the exact sources of supply Thursday.
-By Devon Maylie, Dow Jones Newswires; +27 11 783 7848 [email protected]