Oil Company begins trading

The highly anticipated national oil company will soon begin its operations, top officials from government said on Wednesday. BG Business has learnt that the final process for the registration of the company was done on Wednesday. The company will be responsible for procuring oil on behalf of government. An economist at Minerals, Energy and Water Resources ministry, Gamu Mpofu, said that they were given Cabinet directive that gave them a nod to start operating the company recently. The name of the company is still to be announced. Meanwhile, it appears it will take some time before it actually starting operating since a board of directors is still to be constituted. Mpofu said they have written to selected departments for members of the Board and were waiting for their response.  The founding Chief Executive will also be appointed in due course. Mpofu further stated that they have been granted P20 million for the kickstarting of the company. BG Business was also informed that Mozambique Minister of Energy, Salvador Namburete, is in Botswana to discuss, among other issues, the new oil company. He had a meeting with officials including ministry’s permanent secretary Boikobo Paya. Mozambique is one of the Southern African countries that have state oil companies. Paya announced to members of Ntlo ya Dikgosi that after three years of existence of the company, Batswana would be invited to buy stake in the company. Botswana, a landlocked country, relies heavily on the region’s economic powerhouse, South Africa, for the supply of fuel and other related products. Some 98 percent of the 935 million litres of petroleum products Botswana consumes every year is imported from South Africa whilst the remaining 2 (two) percent is split between Namibia and Mozambique, minerals minister Ponatshego Kedikilwe told parliament in December 2010. The establishment of the state oil company will allow government to further diversify its oil sources. Botswana and Mozambique have signed a number of investment accords which among others will allow the former to import oil via the Southern African country.

Last modified on Wednesday, 31 July 2013 16:21

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