South Africa Signs Oil Deal With Angola

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Luanda — South Africa and the oil-rich Angola signed a number of trade agreements including cooperation in the oil sector, following major bilateral talks aimed at strengthening economic relations on Thursday.

The agreement will allow South Africa‘s state oil company PetroSA and Angola‘s Sonangol to work together in oil projects, as well as in the areas of exploration, refining and distribution of oil.

Angola, which is Africa’s biggest oil producer, has only one refinery in Luanda. It currently imports a great deal of its refined gasoline.

President Jacob Zuma met with Angolan President Jose Eduardo dos Santos during a state visit in the country on Thursday. He was accompanied by 11 ministers and more than 150 business leaders, making it the biggest delegation South Africa has sent outside the country since 1994.

Mr Zuma said was an indication of the seriousness of the relations South Africa‘s aimed to forge. President Dos Santos hailed the visit as the start of a new era of co-operation between Africa‘s biggest economy and its biggest oil producer.

Mr Dos Santos said Angola needed more qualified labour from South Africa, which in turn could help rebuild infrastructure destroyed by Angola’s 27-year civil war that ended in 2002 and tap into its oil industry. "We want to create a strategic partnership between our two countries," he said.

The pair also discussed the supply and distribution of electricity from the Democratic Republic of Congo’s Inga hydroelectric plant and other regional infrastructure projects to facilitate business.

They also signed air services and diplomatic consultation agreements, as well as other memorandums on trade, industry, commerce, housing, and sport and recreation. It was further agreed that a Bi-National Commission would be established to upgrade and coordinate all relations between the two countries political, economic and social.

Source: Allafrica