(Ecofin Agency) - To boost its supply of petrol and reduce its reliance on foreign companies, South Africa plans to build an oil refinery where it will process crude oil imported from Iran.

The Deputy President of Libya Cyril Ramaphosa (photo) is planning a visit to Iran to re-establish their co-operation in the energy sector. Truly, since the EU and US imposed sanctions on Iran, South Africa has been diversifying its sources for crude oil.

According to a statement issued from his office, South Africa's Deputy President Cyril Ramaphosa is to pay a courtesy call on Iranian President Hassan Rouhani, the Speaker of parliament Ali Larinjani, amidst other officials with the aim of attracting investments into the refinery to be built by Pretoria.

“Ramaphosa's delegation will also explore opportunities for the co-operation in the energy sector with a view of attracting investment into South African refinery and shipping capacity and for an exchange of technology and skills in the energy sectors,” the statement said.

Though plans are ongoing, the cost of construction and time for commencement have not yet been disclosed, Reuters report.