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Monday, April 6, 2020

ZCCM IH’s CEO defends sale of oil exploration rights to a Nigerian firm

Headlines ZCCM IH’s CEO defends sale of oil exploration rights to a Nigerian...

KCCM- Zambia Consolidated Copper Mines CEO Pius Kasolo
KCCM- Zambia Consolidated Copper Mines CEO Pius Kasolo

ZCCM-IH Chief Executive Officer Dr Pius Kasolo has strongly defended the decision to sale the oil exploration license to a Nigerian oil firm Oranto Petroleum.

Some sections of the Zambian society has questioned the rationale behind ZCCM-IH’s decision to give up its oil and gas exploration license to a Oranto.

Oranto will own a 90% stake in this project while ZCCM-IH will retain 10%.

Dr Kasolo said the decision to partner with Oranto was strategic as it will allow ZCCM-IH to acquire technical skills from their Nigerian counterparts.

He said Oranto will also provide funding and technical support for the project.

Dr Kasolo stated that technical support will include the provision of training to ZCCM-IH Technical Staff in oil and gas exploration and production.

“We are delighted to announce that the Company has been granted two onshore Oil and Gas exploration licenses by the Ministry of Mines and Minerals Development of Zambia (MoMMD). The two licensed oil blocks are situated in the Western and Muchinga provinces of Zambia. The granting of this license by the MoMMD is in line with ZCCM-IH’s strategy to undertake mining related diversification particularly in the energy sector,” Dr Kasolo said.

He said in order to undertake exploration works on the license area, ZCCM-IH has partnered with Oranto, a Nigerian based and the largest privately-owned oil exploration and production company in Africa.

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  1. I cant understand the logic here. Dr Kasolo says “technical support will include the provision of training to ZCCM-IH Technical Staff in oil and gas exploration and production.” So what he means is that its is okey to have trained staff after extraction of oil? ZCCM-IH’s role is not profit but training of Technical Staff? You mean we can not train staff as Zambia but trade the training for oil wealth? This is the most ridiculous answer i have ever heard in many years…..

    • Unless ZCCM-IH is convinced from preliminary findings there is no oil afterall, otherwise, this will be a worse deal than the KCM and Mopani rip-offs

    • These Nigerians in their own country exploration rights are held by Shell, Tullow oil and other such MNC …the local companies are often subcontracted same case in Ghana where Tullow did the job. Besides we know this is not the issue, once the rights are given these guys can extract the precious minerals they can

    • …..as well as their so called prophets what a country never he we witnessed such a level of greet corruption and fraud concentrated in one country that it makes the mafia look so good!
      Wouldn’t it be better to partner with the likes of shell BP ENI etc?

    • Ba Kasolo which sort out his personal life in South Africa and Zambia then his mind and conscience will be clear to run ZCCM. Am just saying!

      Chaps lack capacity. There is more than what meets the eye here.
      Kavindele sold a farm for a song, the Chinese bought that farm as a mine. In short all Kavindele could see was a farm. The choncholis saw beyond a farm. Even CBU trained mines engineers lack capacity and the necessary knowledge. It is a scandal for ZCCM-IH to lie in broad daylight that their viewpoint is credible. How did ZCCM-IH acquire that license in the first place? Who gave this bunch of incompetents that license they have sold to Nigeria.

    • ZCCM-IH means Zambia Consolidated Copper Mines – Investment Holdings.
      How did a consolidated coppermines company end up with an oil exploration license. 1and 1 by and large adds up to 2 but this deal doesn’t add up common sense. This is what Parliament should be deliberating on. I urge all chiefs and municipalities where the exploration of oil could be taking place to push back. How you Kasolo, sink so low. ACC you got a job to do. Hey EL rise to the occasion. Something is not right here.

  2. Stay away from Nigerians they are known for their corruption and scams not for scientific / technological prowess.They don’t even control their own Nigerian oil blocks.

  3. Dr Kasolo stated that technical support will include the provision of training to ZCCM-IH Technical Staff in oil and gas exploration and production.

    Really laughable with 10% stake they are giving you technical support…is it just our docility or we simply like to shortchange ourselves.

    “Current operators in Zambia include Tullow Oil and Bowleven. Though only marginal finds have been discovered, the under-explored market shares basins with Tanzania to the northeast and Angola to the west — both of which have hosted mega oil and gas discoveries.” – WorldOil.com

    • The laughter disease needs someone to cure it! It is disturbing, really! Maybe if it were directed at Childish, it would make sense.

  4. This looks like a backdoor scam for shares in ZCCM…….after years of explorations , Likelyhood of presence of oil , less than 5%, and the Nigerians know this.

    • It is fine! We are used to backdoor scams from inside trading in privatization to Panama tax evasion scams to land grabbings in Namwala! This is not new.

    • Oil exploration involves core drilling. If the likelihood of finding oil is less than 5% according to Spaka, then the Nigerians are covertly after other precious metals such as diamonds in Western Province. The proximity of WP to Angola makes it likely to have the occurrence of diamonds.

  5. Zambians are a danger to themselves. Unbelievable nonsense coming from our own educated people who are supposed to direct and manage our companies. Remember, our mines were sold at 25m USD in 3 months the buyer made profits and paid Zambia in full. Do we learn anything from the past or from other countries? Our population is growing and we are not creating opportunities for the youth. Personally, I think there will be civil war in Zambia. We are slowly reaching the breaking point – wait and see.

  6. Can we write to President Lungu, so as an end is put to this. I am really convinced that president Lungu has little to choose from within PF, reason he brings in MMD technocrats. This is worse than selling KCM and Mopani to the other crooks from India and China( Luanshya mine ). Just because these crooks have the same color skin a you does not mean they are not crooks. Crooks of the mainland here.

  7. But who gave Pius Kasolo all the powers to sell those exploration rights? There must be a Chairman of ZCCM-IH so does ikt mean that he is also involved? Even Parliament has control of state corporations and left ion the hands of individuals like Pius Kasolo to mess around with his Nigerian crooks! This is a very serious case of fraud which needs political answers too.
    Kasolo has taken Quantum Minerals to courts in Zambia and London and yet he is also involved in worse cases of corruption! What is going on here? Arrest that Chimpanzee Kasolo and keep him in custody forever.

  8. These are ‘technocrates’ trusted with the responsibility of managing our natural resources and Mr kasolo calls 10% as strategic!! Surely something is wrong in zed!

    • Its madness I tell you…no wonder they are giving away land like fritters..we have entrusted thieves with our resources!!

  9. @HaJayJay, In Namwala the chiefs related to HH are giving land like fritters! So far HH has 1,000 hectares there. You ha right HaJayJay!

  10. It seem most of you don’t understand want an exploration license is, an exploration license is not the same as an extraction license.
    For ZCCM-IH to be profitable they need money, and this is one of the ways they will make that money. Ofcourse, maybe a corrupt hand was involved in this, that’s another matter altogether.
    How much money would ZCCM-IH have invested for just exploration? Do they have the necessary expertise to back this venture? What ZCCM-IH has taken is a necessary gamble, they will benefit this country provided that the institutions tasked to give oil extraction licenses does it’s job well. Just so you know, Oranto Petroleum will have to apply for an oil extraction license if the find.

    • Licenses should not be given to individuals or organizations without financial muscle to undertake serious works like oil exploration. If ZCCM-IH has no equipment and tools to undertake exploration works how the hell did they end up with a License? Who gave out that license? Parliamentary committees must have a hearing so we can learn from this self confessed misdeed.

    • @Pharaoh’s Braggadocio. You are right indeed, but the case with ZCCM-Investment Holdings is a bit different. Being an Investment Company is what makes them different. Mostly what they have is in immovable assets, preferential shares, oil, gas and mining exploration licenses, extraction licenses etc. so for them to grow and be profitable they have to sale some of these things which unable to make use of at the moment.

    • Dokowe!!

      The issue is when extraction license is to be issued, the company with exploration right will have certain demands ranging from what to be paid to ownership.
      We have to learn to invest as Zambians and not always looking for easy way out. What skills are we talking about? What money we talking about? such that we have to surrender our rights

    • It still begs the question then how did ZCCM IH end up with this explo license when they possessed absolutely zilch expertise in exploration of oil?? I also beg to differ ZCCM-IH has money and still continues to generate it holds shared in all the major mines in Zambia. Despite not even being a lender it lent IDC USD 19 million for only Lungu and God knows what. I have come to realize most Zambians want to give financial positions of organizations whom they have no access to their books. Small wonder you are failing to even provide the countries real financial position on debt

  11. This deal must be scrapped. No sensible Zambian must let it go. If there is change of government in 2021, the deal must be swiftly reversed. Above all, where there’s government participation, our ownership share must not be less than 65%. It is our natural resource that will be extracted and will not be replenished at all. This is what we must focus attention on as Zambians.

  12. Any other explorers than Nigerians would have been credible and imparted Trust the matter is in good hands.

  13. We have a lot of educated fools in Zambia; this Kasolo is a fool; and those involved in this deal are fools; his explanation does not make any sense; the opposition should warn the Nigerians that once PF is out of power; the deal will be scrapped; and prosecutions will take place;

  14. We have a lot of educated f00ls in Zambia; this Kasolo is a fool; and those involved in this deal are f00ls; his explanation does not make any sense; the opposition should warn the Nigerians that once PF is out of power; the deal will be scrapped; and prosecutions will take place;

  15. At doctorate level, one would expect that an individual is sufficiently qualified but Pius Kasolo is talking about acquiring technical skills from Nigerian counterparts. Is ZCCM-IH in capable hands? I thought ZCCM-IH is an investment undertaking and not a vehicle for giving away Zambian business interests to foreign entities. If that’s the role they want to play then Margaret must disband them and float their shares on LuSE for all to buy for that will be more transparent. Otherwise we’ll begin to speculate

  16. Why can’t those that wish to invest in Zambia come through the Zambia Development Agency? They are the ones with the mandate to ensure would be investors meet the requirements. What Pius has done stinks, shame on him.

  17. Ati 10% and we are ” delighted” ( to sound English no doubt) that we will receive technical skills… to do what with those skills? Go into another exploration this time all by yourself with your new skills?
    Anyway, this leaves a sour taste in the mouth – especially that the details are scanty. In anycase, someone above has hinted that this is only an ” exploration licence, and not an extraction licence”. My logical guess is that the one with the exploration licence has a lot of leverage on getting the extraction licence on his exploration.

    • If Pius Kasolo has no skills for oil exploration, he can employ and that’s what good managers do. Otherwise his justification sounds *****ic, to say the least

  18. Dear Sir,
    There is no amount of justification that can vindicate such decisions. This is wrong. We call on you to reconsider this decision, such exploration rights are to remain with Zambia no matter the skills and money we might be needing to carry out such ventures. We have only one Zambia

  19. President Lungu should intervene and ensure that this CEO is fired and ensure the deal is cancelled. There is no defence to the myopic thinking of this selfish CEO

  20. What was role of the chairman in this deal, we should look beyond. The deal doesn’t feel and smell like Pius.

  21. The worst deal ever.. Zambians are used to live in poverty while foreigners run their countries..That’s poverty thinking.. Always used someone to give you hand out.. This is like Jacob and Essau. Wanting soup just the hunger at that moment and giving away ones birth right which comes with blessings and abundance

  22. The whole ZCCM-IH setup is corrupt, and of course favors foreign exploration companies and a small clique.

    ZCCM-IH should be raking in billions of dollars a year. Instead, they can’t wait to return dividends to the mining companies.

    Instead, Zambia had to borrow Eurobonds – guess who invented those? The same family that created Anglo-American Corporation, De Beers, controls Glencore, etc.

    This is deeply corrupt, it goes all the way up to the international elite.

    Meanwhile, those in government display what has been called the patronizing disposition of unaccountable power.

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