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The Department of Environmental Affairs says its oil pollution team has been in Port Elizabeth since Tuesday following reports of oil on a beach on the city's outskirts.
Department spokesperson, Zolile Nqayi, says the oil was reported at Kini Bay on Saturday.
He says its suspected to be from the Kiani Satu which sank on Wednesday at a depth of a thousand metres after it was towed 100 nautical miles away from the Knynsa coast.
Nqayi says the clean up operation in Knysna and the estuaries being wrapped up.
"We have picked up that there is an area just over a halve a kilometre where there was oil on the beach. The local municipality team was there to help and clean, our job is now to clean up what is already on the coast" she said.