South Africa: PetroSA & PDVSA Sign Agreement
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Thursday, 04 September 2008 |
Petro SA and PDVSA signed a key oil deal this week during President Hugo
Chavez of Venezuela first visit to South Africa reflecting a new
strategic alliance.
No details of the deals were immediately available, but they were likely to include plans for Venezuela to supply crude at preferential rates to South Africa's PetroSA state oil company. President Thabo Mbeki said PetroSA would also look for oil in new Venezuelan oil fields.
Venezuela is interested in South Africa's pioneering gas-to-liquid technology, and Chavez said his country is interested in using South Africa's oil storage capacity of some 45 million barrels and helping expand its refining capacity.
Mbeki refused to say if South Africa would get preferential rates from Venezuela, but said "the object is to assist in reducing the costs of energy". Mbeki said such state-to-state deals eliminated intermediaries and thus reduced costs.
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