South Africa And Angola Sign Energy Deals

South Africa And Angola Sign Energy Deals

South Africa and oil-producing Angola have taken a step away from decades of friction by signing an energy deal during the first state visit of Angola 's leader.

On his first visit to South Africa on Tuesday, Angolan President Jose Eduardo dos Santos said he was open to new forms of cooperation.

As part of the visit, South Africa 's PetroSA and Angola 's Sonangol signed a Memorandum of Understanding to step up broad cooperation in the energy field.

The two state energy companies have been in talks on construction of a crude oil refinery in the coastal town of Lobito . Once constructed, the refinery is expected to produce about 200,000 barrels of refined oil a day.

According to data collected from trade sources, Angola 's crude exports peaked near 1.9 million bpd earlier this year but maintenance and production glitches pulled this back to below 1.7 million bpd in the third quarter.

South African President Jacob Zuma visited Angola last year to help patch up ties between the two nations.

South Africa is looking for new sources of oil to help power the continent's leading economy and has eyed Angola - Africa 's second-biggest oil producer - as a potential new supplier.

REUTERS/Evelyn/Yinka