Zambia’s sole petrol refinery to the government in Lusaka for 5.5 million dollars. Until now, Total and the government had shared ownership of the 36-year-old Indeni refinery, which has the capacity to produce 24,000 barrels of fuel per day.
“The Government now owns 100 percent shares in Indeni after concluding the talks with Total. We have taken over the 50 percent shares previously owned by Total,” the Finance Ministry’s permanent secretary, Berlin Msiska told Reuters.
Msiska could not immediately state whether Zambia would look for another partner or hold on to all the shares in the plant.
Indeni has been plagued by technical problems and erratic supplies of late, causing acute shortages of diesel and petrol in the country threatening to reverse Zambia’s economic gains.
A fault at the plant brought production to a halt on October 15. The ministry of energy said it expects to resume processing on Friday.
The fuel shortages have affected the country’s critical copper mining operations, which rely on diesel for production.
Zambia is Africa’s largest producer of the metal, which accounts for about 70 per cent of export revenue
Indeni Petroleum Refinery was 50 percent each jointly owned by Total El Fina EIF and the Zambian government and latest market estimates indicate that the refinery needs $65 million for recapitalisation.
Total last year told Zambia of its intention to sell its shares to another company but authorities in Zambia objected and opted to fully own the refinery.
Reuters/Earthtimes
Is this a good move? We shall soon see…let’s learn to be slow to judge and quick to act.
This not a good move I smell a rat here!!!! we dont have good managers in our Government, bonse niba Nichekeleko ma meters!!!!!. thou one might be proud to say its Zambian owned but very soo we shall here bad stuff about it.
Total have always owned shares in INdeni until today. but as most of you will attest, its not the first time that Zambia is having a fuel shortage, these are now as regular as xmas. we had them under the “legacy” We had them under Chiluba etc, but the point is that it is posible to have a company that is 100% owned by the state and still get a good service. Well ZESCO is not the best example, but you will agree that the electricity situation is not as grim as we are being made to understand. Another state company is ZSIC, a perfectly good company. So lets not dispair, Total wanted out. Their ownership of shares in Indeni was not in line with their corporate aspirations. rememember, CDC, Lonrho, Anglo pulled out of zambia, did we died? lets be positive, something will be worked out
Has this story been covered? “President Banda in Burundi today
04 Nov 2009
BUJUMBURA – President Banda is today expected in Burundi ahead of the International Conference on Great Lakes Region (ICGLR) heads of State and Government round-table conference”. Flying again. Amanone! Tulibacabe!
SENSIBLE THING FOR GOVT. TO DO IS SALE THE REFINERY. IT HAS BECOME A BIG DRAIN ON GOVT COFFERS. WE CAN JUST BE IMPORTING FINNISHED PRODUCTS. INDENI IS THE NCZ OF TOMMOROW. WATCH OUT ZAMBIANS.
# 5, I have this feeling you may be right. Now that there’s no external partner in Indeni, the Rb boys are likely to do as they wish. They’ll have “laluwei” (Silozi for carte blanche) to piss on the oil industry.
# 4, thanks for the info.
LT your story is takling about petroleum and all of a sudden it says: “Zambia is Africa’s largest producer of the metal, which accounts for about 70 per cent of export revenue”
Now which “metal” is being referred to here???
You cant understand these dull gonvernment. They are selling ZAMTEL 75% while at the same time they are re-owning 100% in indeni. What a joke of the year. When some deal suit their pockets they support it like the ZAMTEL. awe bwafya mu Zambia.
If the french have failed to serve Zambians by creating real or virtual shortages of fuel,then what guarantee is there that GRZ will finance the projected recapitalisation so that it can run at full capacity to serve the needs of the people?
LET’S WAIT AND SEE “AS OUR BIG MAN DENNIS LIWEWE” USED TO COMMENTATE IN FOOTBALL. WE HAVE THE CAPACITY TO MANAGE OUR OWN AFFAIRS. NO NEGATIVES PLEASE!!!!!!!!!!!!
Now i understand why people in Zambia say 99% of us bloggers from Diaspora are dangerously dull and futureless zealots. Here we are.I cannot believe this armchair criticism thus far all devoid of solutions but shamelessly pandering to French control of a vital national asset.
This is probably the greatest thing that has happened to Zambia. Energy in any given country is of great security importance to Zambia. Without being prejudiced, kindly keep a good maintenance track record of our only oil refinery. Great move on the Zambian Govt.
Total was not there to pump petrol. It was there to make a profit and anything that was not adding up to their profits was obviously pushed to our govt. I think the govt did well to buy back the equity that Total held in Indeni. If there is need for a partner, let it be a Zambian consortium as that will ensure they serve the interest of Zambians first and not look at profits like Total did year-in and year out. Aluta continua!
This is a developing story. I wish to challenge the Donors, all NGOS operating in Zambia including Transparency International, Post Newspapers i.e. Mmembe, Mutembo, Maureen, Patrick Mwanawasa and Mpombo to test the validity of the so called fake Mwanawasa legacy of fight against corruption that they have been trying to feed Zambia through the Post Newspapers. This issue is one of the many corrupt activities of the legacy which George Kunda was for the first time correct in his analysis, when he correctly said there was no legacy to talk about.
For a start can Maureen Mwanawasa and Katele Kalumba explain how Total got the 50% shares in Indeni Refinery and what process if any was followed to chose Total as a strategic partner in Indeni Refinery. We also need to know who was in the 50 %
% shares that Total held in Indeni Refinery other than Total International itself.
Secondly can Mpondo, Maureen Mwanawasa, The Post Newspapers and The Nchitos explain what tender procedures Mwanawasa and Mpombo used to follow when Total was the sole and exclusive supplier of crude oil to Indeni Refinery. If no tender procedures were in place then what process did they put in place to ensure that Total supplied oil at competitive rates?
Finally can Msika explain how the negotiating team arrived at the figure of US $ 5.5 Million as payment to Total International?
Through an Audit carried out by Grant Thornton of UK, three years ago, engaged by Mwanawasa himself, it was reported that Indeni Refinery had accumulated losses in excess of over US $ 300 Million Dollars. Msika you need to tell
Msika you need to tell us who is going to bear this Loss of US $ 300 Million Total Losses at Indeni Refinery. Indeed even the Donors should be interested in this information.
Please Msika publically announce the loss of that Total International has left at Indeni Refinery, because these losses are the legacy of Mwanawasa and Mpombo corruption. It is also important for the Donors to see how this international company has miserably failed because of its corruption with Mwanawasa, Mpombo, and Katele Kalumba with the Post Newspapers as their public relations managers to cover their scams. This scam is the reason Katele Kalumba, Mpombo, Maureen, Patrick Mwanawasa and the Post Newspapers support each other
The Zambian government of RB is justified in distancing itself from Total and Mwanawasa
Good move grz. get some privatise some. get indeni privatise state house.privatise paramilitary and get armco.
The Zambian government of RB is justified in distancing itself from Total and Mwanawasa from the mess that they created in the oil sector. RB was justified to refuse to capitalize Indeni Refinery with Total in charge, because previous payments in millions of Dollars that the Zambia government paid to Indeni Refinery for purposes of capitalization was not put to the intended use.
I don’t like commenting on dead presidents but with all due respect, there was more corruption happening under Mwanawasa’s reign than at any given time in Zambia. The problem why it looks as though it never happened is that Fred Mmembe’s The Post lobbied Levy for favours & in exchange they started to propagate Levy’s anti graft campaign and in the process we lost grip even on cases that we should have been able to prosecute now the courts are dismissing them because the procedures where not done correctly from the start. Mwanawasa was a mistake & he traded his own unpopularity in the MMD by advancing corruption but where has it taken us now? Total was a mess & a burden. I hope we can learn from it and not repeat the same mistakes again. We will develop if we have belief in ourselves
Let us wait and see. Soon or later we will know who is making a good analysis.
This is a great move made by the government. It is my hope that GOVT now realizes the need to maintain those key assets that support the economy as a whole. We have seen how these investors come in and dont contribute to the infrasturcture or build anything. Govt should assess the viability of building another refinary in Lusaka and also pull a pipeline similar to tazama from angola to minimize the burden and reliance on Indeni. Corrupt leaders should be barred from beng elected or holding office. let the new geneation come forward and bring new ideas to the table.
Further more yes costs will be initially high on building new assets to support the economy, but lets look at the big picture, such projects create jobs, reliance on importation is minimized, and there is some govt control to ensure zambians are not continually exploited as we have. This could also reduce the cost of finished goods for zambians. Hopefully Govt leaders now think through their ideas of privitasing Zesco and Zamtel. As the same could also happen. I.e. hold us zambians at ransom.
Wow! This is a good debate. I’m impressed with y’all. For and against, that’s what makes democracy. the bottom line, though, is that our country has been redcduced to a loss-making venture by vultures like Chiluba, Mwanawasa and Banda. Period.
I wish the government could get back all the companies they have sold to investors eg mines,chilanga cement now called larfage,half of zanaco, zambia sugar etc, that way zambians will gain back confidence in government. About Indeni i will watch closely and judge later on RB Administration is gone perform.
Oil is a product that needs to be handled delicately; source, supply chain, distribution, end user etc. If not handled properly it can bring a Country down to its’ knees. Wars are being fought over oil. It is a good thing that Total has offered its’ stake to Government at-least now there will be no,”blame game” as there is now one major owner. It is a great challenge and hope that this will be handled with care. Its’ also good that the Government is finding ways of re-activating the Tazara pipe line which is in itself a lifeline. Otherwise beware, becareful and take heed, “OIL” is must handle carefully ! Our Country needs flamboyount contract negotiators to sway transations to our total benefit as a Nation. In it?
Commentaries on this thread following Government move on Indeni presents every reader a Golden opportunity to authenticate the caliber of Zambian punditry. Though rationalists exist, Immaturity presents its own challenges to the future of the nation. I pause on the terraces bearing in mind that Indeni is strategically a vital installation that can directly drive or break Zambia’s economic and national security either way.Whatever reasons George Mpombo and Mwanawasa had to promptly disband Zambian National Oil Company (ZNOC) and give it to total a French outfit for a song only to suffer a double jeopardy at the hands of the ABSA US $100 million scam.Mpombo has a challenge to clear the family tree than hallucinating.
The debate today is very constructive…although the usual insulting shallow minds are present but I have to admit that I have found the blog here quite refreshing, and ver educative, may be becoz the government has finally done soemthing constructive. I fully support this move by government. And it is our hope that Zambians will benefit from this move in the soonest possible time….Good move my namesake, you are pulling through from slunder!
The government has sold 75% shares in zamtel because they cannot run the telecommunications company which in my view is much simpler to operate and run as compared to running and mainting a refinery which is more complex,but they gain total ownership of indeni,sorry but i dont see the logic here,the govnt faild even to just run zcbc,zambia airways and even just the railway system,all you people supporting this move havent come up with any criteria as how indeni will be run,and please for ffs,stop pointing fingers at individuals unless you have hard facts
No 15 .The problem we have in zambia is that we have young generation who failed their history in school.INDEN was not created by Banda or Mwanawasa.This was a creation of Kaunda when Zambia was under UDI in Sothern Rhodesia(Now zimbabwe).But we know that Sata will nationalize some of the industries if he becomes a president.are you going to say No? IT is better for the government to do what has been done beacuse most of you dull pipo who failed in school dont think.only what the opposition say is good.you will suffer one day and remember the past.
You people add 1 + 1 here. There is no business in that refinery anymore. Henry Banda has taken over all the transactions!
Another way of looking at it is that the plant has probably reached its useful life and needs replacing or decommissioning and the French oil giant Total decides to off load the shares on the government, as an exit strategy instead of reinvesting. Could they be clever! Watch out!
Someone tipped me just when Kavindele had lost his bid for Vodacom that the deal had been won by government and RB’s connections: He specifically said – with this, they have been celebrating because now the RB thru his children will soon have total control of key sectors in the economy: “THE MINES, COMMUNICATION AND OIL”
By then, there was no sign that there would be any shortage of fuel etc… I maybe wrong, but worth thinking!!!!
I think this habit of Banda flying all the time is proving to be a big drain on the resources of this country. If indeed he is so traditional so as to bear himself naked in front of children in Swaziland all in the name of culture, why can’t he as the oldest among all the presidents and being Chairperson of the International Conference on Great Lakes Region invite the belligerent factions to come to him as opposed to him flying to them? I also wonder what we have to gain from trying to resolve biblical genocides of Hutu and Tutsi Nyamulenges when we have more pressing problems like the oil saga he was elected to attend to.
While the gvt is getting $5.5m worthy of shares from TOTAL reports going round are that over k70 billion of tax payers money is missing at ZRA . The question is when did this money disappear?
why didn’t They sell the stake to me for 5.6 million
US$ 5.7million here
Most of the comments on this subjects are good and mature except no. 31
If you dont know anything the best is to wait and see what happens next because you seem to have no idea as to while Total has left. The best is be patient, continue reading so you can learn something Brother.
True story guys, Total pulled out and sold all shares because Zambian government did not commit itself to planned maintenance of Indeni by recapitalising it. Total do not want its name dented should there be kafwafwa at Indeni. For now top priority for government is to win all bye elections even if it means selling part of assets like Luangwa and Kafue rivers, Vic falls, Unza, UTH and Chilimbulu road just to raise money for campains.
This is a joke.
# 32,I have forewarned right here that the bitterness, hope to coerce RB for favors and the whole lack of strategy to marshal national posture for both disgraced fallen leaders and struggling opposition is backfiring instead sanitizing RB into a true iconic statesman.The worst gaffe is Kavindele smearing of the mashilika under Dr.Kalombo Mwansa.History shows that when your lies take you to that estate of BOMA, you are done for life for any public responsibility. Survival along the way will be a miracle.They are all just barking without substantiating anything typical of bitter emotional minds.
A very rare combination of rational comments, this is indeed a welcome breath of fesh air as opposed to the shallow childish, uninformed commens that normally come on LT. . However it is really hard to comment without knowing the facts. The govt needs to do a due dilligence before deciding the way foward ( and i pray that they will not use RP capital) My two fears are that the Government may lack the managerial know how to run Indeni, and this will be made worse by the normal political influence that is common in parastatals . Secondly I have doubts on how viable the refinery is, especially after Total pulled out. I say this because the private sector has a way of sniffing out profits and will normally only abandon a project when they can see no further benefit or vilbility
There is no thinking in emotions but self destruction.You cannot convert voters but proping up self damaging lies that only expose your bitterness.Look at Kavindele who was busy framing Mwanawasa of injustice for firing him over his Son Enock Junior’s Trans Sahara Oil deals. He said and i quote,” my son is old enough to take interest in state business opportunities and Mwanawasa is being vindictive to fire him and take over the oil imports” end quote.
Does Kavindele really expect RB to give him US $ 120 million he is seeking for his failed rail line business from the treasury ignoring all his business failures now under court restrictions?
Wouldn’t that be a scandal ponderous in magnity for RB to instruct Dr.Musokotwane to give Kavindele US $ 120 Million without parliamentary vote?
And under what circumstances should RB be that careless such that Kavindele has even reacted to RB’s response that his plea demands extensive consultation? This is very cheap strategy of manipulation at worst. No wonder Enock has politically failed.
Kavindele rebuked- he has fixed himself with his unresearched irrationality
….for unjustified attacks on President Banda’s family
THE Church has castigated former vice-president Enoch Kavindele for his unjustified personal attacks on President Rupiah Banda and his family.
Independent Churches of Zambia (ICOZ) board chairperson, David Masupha said yesterday that it was sad that Mr Kavindele could choose to wage war against the president just because of his failed attempt to have the head of State intervene in his personal business.
Reverend Masupha urged politicians to mean well when issuing statements and not to settle scores.
“Mr Kavindele has been in Government before and he should be well placed to know that what he was asking for was beyond the president as an…
Kavindele know that what he was asking for was beyond the president as an individual. The president rightly told him that he could not go ahead and help him without consulting,” Rev Masupha said.
He said Zambia did not need politics of hate that had taken root in the country and advised politicians to desist from swaying the minds of the public by issuing misleading statements meant to portray a negative picture about the country.
IS THE SUBJECT ABOUT KAVINDELE OR INDENI SHARES? BLOGGING HERE SOMETIMES SEEM TO BE SHEAR WASTE OF TIME. LETS USE THIS SITE TO EDUCATE ONE ONOTHER IN AN ORDERLY MANNER.
YOU ARE RIGHT 46
LT SHOULD START DELETING COMMENTS OUT OF POSTED SUBJECT.
Our Govt can’t manage our Economy, what of Indeni, Pliz let good managers take it up. RB worse than Polio
I HAVE NOT SEEN ANY COUNTRY AS A GOVERNMENT RUNNING A REFINARY. WE ARE IN TROUBLE
I am seeing a lot of contradictione here. A lot of people do not want ZAMTEL sold but again hey are against INDENI being owned 100 by the Goverment
.
I am seeing a lot of contradictions here. A lot of people do not want ZAMTEL sold but they are against INDENI being owned 100 % by the Goverment. . I detect a lot of negative energy – that says anyting about Government should be criticised. My feel goverment should give out INDENI to an internationally recognised management team.
RB, please dont forget to sell 100% Zambia to chocholis.
It is a fact that Total got frustrated from the inertia of the equal partner GRZ to put up money for works to maintain the refinery. If ever GRZ came up with the funds, it would usually be too late – untimely. You don’t run business like that. Now left on their own, I wonder what will change in their attitude that will enable tham run indeni successfully. My bet is indeni will slowly die and all fuel will be imported by – you-know-who.
Nkosi, I dont think that is alone the reason, these multinationals are very craftty and will normally find a way around such Government inertia. That is why you see them operating and making profits in real trouble spots e. Nigerai, Afganistan . If is was just about puttting up money, these firms are able to negotiate that a govt to govrnment ( French to Zambian) deal ,or even a government guaranteed loan. There is must be more to it. I think we should also wonder if INDENI is actually viable
53 & 54 YOU ARE VERY FAR FROM THE TRUTH KEEP RESEARCHING YOU WILL DISCOVER THAT GOVT HAS DONE THE RIGHT THING. YOU KNOW PEOPLE THE PRIMARY OBJECTIVE OF AN INVESTOR IS TO GET BACK THEIR MONEY PLUS MARK UP WHETHER YOU ARE CRYING OR LAUGHTING BUT THE GOVT IS INTERESTED IN THE CITIZENS OF THE COUNTRY. SO TOO MUCH PRAISING AND DEPENDANCY ON OUTSIDERS WILL NOT HELP MUCH. LETS GIVE TIME TO THE GOVT AND SEE WHAT THEY HAVE FOR US IN PETROLEUM SECTOR. YOU CAN BE THERE GUESSING AND COMPLAINING BUT YOU HAVE ONLY RECEIVED THE NEWS TODAY, YOU HAVE NOT SAT WITH ANYONE IN GOVT TO KNOW THEIR PLAN. LETS SUGGEST BEST ALTERNATIVES TO THEM THEY ARE HUMAN AS WE ARE. IF YOU WERE PUT IN THEIR OFFICES YOU WOULD NOT EQUALLY PEFORM ANY MIRACLES FOR ZAMBIA. LETS CONTRIBUTE POSITIVELY.
No comment but to wait and see what will follow. For sure something brewing up the minds of our ***** politicians
I said ***** politicians not ************
#8, Kambongolo, When I read your comment all I feel great pity. And your comment is not an isolated case. Why do zambians prefer to peddle fears and ignorance rather than understand a situation and speak from an informed position. Indeni was a joint venture between Indeco andENI the Italian Oil Company hence the acronym . This was at a time Italy was very close to Zambia and provided trucks for ZAMTAN and hepled fund TAZAMA when the country had to fly fuel in after UDI in Rhodesia. The French company, Total was never a preferred partner in INDENI. It just bought the shares of ENI. When Total wanted out, Zambia preffered to identify a strategic partner itself and not to have a partner forced on it by Total. That is the crux of the situation. What are all these ignorant comments.
##8, Kambongolo, When I read your comment all I feel great pity. And your comment is not an isolated case. Why do zambians prefer to peddle fears and ignorance rather than understand a situation and speak from an informed position. Indeni was a joint venture between Indeco andENI the Italian Oil Company hence the acronym . This was at a time Italy was very close to Zambia and provided trucks for ZAMTAN and hepled fund TAZAMA when the country had to fly fuel in after UDI in Rhodesia. The French company, Total was never a preferred partner in INDENI. It just bought the shares of ENI. When Total wanted out, Zambia preffered to identify a strategic partner itself and not to have a partner forced on it by Total. That is the crux of the situation. What are all these ignorant comments.
###8, Kambongolo, When I read your comment all I feel great pity. And your comment is not an isolated case. Why do zambians prefer to peddle fears and ignorance rather than understand a situation and speak from an informed position. Indeni was a joint venture between Indeco andENI the Italian Oil Company hence the acronym . This was at a time Italy was very close to Zambia and provided trucks for ZAMTAN and hepled fund TAZAMA when the country had to fly fuel in after UDI in Rhodesia. The French company, Total was never a preferred partner in INDENI. It just bought the shares of ENI. When Total wanted out, Zambia preffered to identify a strategic partner itself and not to have a partner forced on it by Total. That is the crux of the situation. What are all these ignorant comments.
&8, Kambongolo, When I read your comment all I feel great pity. And your comment is not an isolated case. Why do zambians prefer to peddle fears and ignorance rather than understand a situation and speak from an informed position. Indeni was a joint venture between Indeco andENI the Italian Oil Company hence the acronym . This was at a time Italy was very close to Zambia and provided trucks for ZAMTAN and hepled fund TAZAMA when the country had to fly fuel in after UDI in Rhodesia. The French company, Total was never a preferred partner in INDENI. It just bought the shares of ENI. When Total wanted out, Zambia preffered to identify a strategic partner itself and not to have a partner forced on it by Total. That is the crux of the situation. What are all these ignorant comments.
hello PERMANENT fuel shortage!
sell zambia to taiwan now!!
# 61 Walasa! Most of us blogger just blogg for the sake of blogging, we need to have more informed and well researched arguments. We should also learn to appreciate divergent views! And be slow on the inult peddle!
The only time a company can decide to opt out of a business venture is when they see no future in it.
Total knows that Indeni is not viable entity and that importing a finished product for resale is more profitable in the long term.The revenues generated by Indeni cannot meet the high operational costs.
Unless substantial capital is pumped into Indeni to upgrade it to handle “sweet crude” from Angola then we should not be surprised when it is shut down permanently in the near future.
NO. 64 Independent
This is the ignorance no. 61 is talking about your arguments are based on unfounded assumptions please try to follow 61 and learn something. Your little business knowledge from my view cannot determine the viability of a company like Indeni. There are so many reasons an investor can pull out other than viability of a company e.g failure of one partiner to bend to certain selfish conditions unfortunately you may not understand this.
Folks, it is my view (mine) that this is a step in the right direction. Any developing nations government should miaintain some control of those assets that will maintain law and order in the country. I agree the mines, zamsugar, chilanga cement, zanaco, zamtel and zesco should never again never be sold. These are core assets that are needed to ensure a calm nation. Secondly, the sale of zamtel still amazes me, why can’t the biggest creditor (GRZ) clear its bills? Further more, the infrastructure is there and diversification is must for Zamtel, update mwembeshi eart station, lay down fiber optic and push, internet, TV, phone, fax video confrencing through it. Do we need brits or americans to come and do that and then buy back zamtel as well?
All these good things are happening because of the Government’s commitment to improvement of the economy. That is the reason why I like MMD. It’s very transparent and open to new good ideas.