South Africa’s Strategic Fuel Fund (SFF) is looking to resume crude imports from Iraq, if sanctions placed on the country are lifted. SFF is seeking to import from Iraq 24-million BO a year to boost its reserves, an official told Businessday live.

South Africa has not been importing crude oil from Iraq since 2003 due to sanctions imposed on the country by the European Union and the United States. Although in August, the country’s Petrochemical Company WASSA had confirmed applying for crude from Iraq.

"As part of security of supply, SFF applied for an allocation with the Iraqi state-owned oil company SOMO and we are waiting for SOMO to respond. We are looking at 2-million (barrels) per month, adding up to 24-million (barrels) a year," SFF’s acting chief executive officer, Sibusiso Gamede said.

However a senior Iraq diplomat said: "The request is with our state oil company SOMO, they have sent us messages to say the request has been approved in principle," adding that SOMO was deciding on two requests from private companies for about 24-million BO a year which is to be used to supply refineries in South Africa and the SADC provinces.

In fact, Iraq’s Southern oil exports is going to rise to around 3.25 million bbls/d by 2016 as the country makes great effort to increase production due to the declining prices of crude oil.