The Zambian and Angola government have signed a Memorandum of Understanding on bilateral cooperation on trade in oil and gas worth US$ 5 billion.
And Minister of Energy Mathew Nkhuwa says the equity partner in Indeni oil refinery is expected to be announced by the end of this month.
Mr Nkhuwa says the process of acquiring an equity partner for Indeni through the Industrial Development Corporation (IDC) has reached advanced stage.
He says move is aimed at capitalizing the petroleum refinery plant.
He says due to absolute equipment, the refinery is currently operating at 65% of its installed capacity of 1.1 million tons of feedstock per year to 600,000 tons.
And Mr. Nkhuwa says government spends up to US $1 billion in importing petroleum products per annum.
He, however, notes that the price of fuel will start to reduce once Zambia finalizes the importation of petroleum products from neighboring Angola through the setting up of a pipe line.
Mr. Nkhuwa was speaking during the signing of a Memorandum of Understanding on bilateral cooperation on trade in oil and gas with Angolan Minister of Petroleum Diamantino Azevedo in Lusaka.
And Mr. Azevedo says the signing of the MoU, whose desk study value is US$ 5 billion, is the first step in achieving his Country’s goal to contribute to the economies of neighbouring countries like Zambia.
Mr. Azevedo says the MoU now opens the way for Angolan companies to start the implementation of the trade in oil and gas between the two countries.
He says the Angolan national oil company (Sonangol) which oversees petroleum and natural gas production will be in charge of the trade deals.
This is the same government that spent years negotiating with Saudi Arabia on buying oil that would last Zambia only six days.
Angola tops African countries that owe money to the Chinese. Zambia is not far behind.
Both countries are ultra corrupt.
I truly worry that citizens of either country will benefit from these shady deals being made by two of the most corrupt countries in the region.
So that Saudi deal was just a sham. Money gone again.
Cheap politics, this is likely to never happen. Building a pipeline from Angola to Zambia would take over 5 years. And who is funding the pipeline?
People want cheap fuel now and not in the future. This is just another cheap PF propaganda
“And Minister of Energy Mathew Nkhuwa says the equity partner in Indeni oil refinery is expected to be announced by the end of this month.”
Really laughable…that because they are waiting for Kz and Munir to register their proxy company…..
Let’s develop it! It is UNELECTABLE!
Oooweee there is no pipeline for Sharon to tunda into…..wait 5 years Sharon….
HH has also said he will clear out all dung in his Animo Farms in Namwala and replace it with CHICKEN MANURE. Has he finished yet?
This story of prices reducing…..we heard it again not too long ago with the Saudi oil. This just more cheap propaganda and corruption.
They will never reduce fuel as thats free mark up to them…only a different govt with different policies can do it.
“Mr Nkhuwa says the process of acquiring an equity partner for Indeni through the Industrial Development Corporation (IDC) has reached advanced stage”…….How has it reached an advanced stage when the advert is still running in the papers. Have they found someone already?
The oil that comes from Angola cannot be processed at indeni. This type of oil needs a totally different processing equipment which will entail building a brand new refinery for that purpose only.
You will buying finished products from Luanda…meanwhile dull Lungu will be reading speeches about value addition.
Dept of MAPATIZYA FORMULA of the TRIBAL H-ORGANISATION at work! HaNEGATIVES! HaUN-APPRECIATIVES! HaLOSERS!
This is a solution to our problems for ever. If it means building another processing plant so be it. Oil is just next door .Government must be supported on this one even if it means getting a loan for the infrustructure for it lets do it.
Foolish support for a very costly idea. Are you ready to raise Zambia ‘s debt by $2bn for a costly new refinery?
The issue is not investment but luck of financial prudence by the so called leaders.. they cannot account for 70% of borrowed funds.. Not to mention over pricing of these very projects..
The best way to counter the British agenda to tarnish Zambia’s reputation to investors abroad to promote regime change is by; avoiding their tainted bilateral donor AID money; terminating business involvement with UK companies ie Cancel and put to tender the Tullow Oil Petroleum Exploration Licence 28, which covers a 55,000-square-kilometer onshore block in northern Zambia. and disqualify Glencore Energy UK’s exploration bid to buy a majority stake in Zambia’s Indeni Petroleum Refinery. The less we have to do with the British the Better off we are.
This is the good news Zambians expect to hear from hard working PF Govnt not the sale of Public firms to Chinese like HH with FTJ Chiluba did in the 90’s !!!Just imagine how cheap fuel would be in Zambia if we start importing it from Angola which is just next door?I CANT UNDERSTAND WHY THESE LEADERS FAIL TO IMPLEMENT SUCH SPLENDID IDEAS FAST!!!Ruling people is simple-just do the right things daily and implement good policies which favour the masses unlike being seen to be favouring foreigners!!!PF Govnt can rule beyond UNIP’s 27 yrs provided they do things in a right way like what they have done in the ROAD SECTOR!!!TODAY MOST OF OUR ROADS ARE SECOND TO NONE IN THE REGION!!
Please Hon.Nkhuwa,push for this deal with the Angolans.CHEAP FUEL FROM ANGOLA WOULD MAKE PF WIN UNOPPOSED IN…
“…..TODAY MOST OF OUR ROADS ARE SECOND TO NONE IN THE REGION!!…”
What is the use of roads when there are no jobs ? Will people eat roads ??
Your friends in the west do things the other way round, provide jobs then create roads…..
Dept of HATRIBES HANEGATIVES at work.
Kainde please dont bring your confusion in this deal as we DESPERATELY NEED CHEAP FUEL IN ZAMBIA!!!Whether there will be corruption in this $5bn oil deal or not is none of HH’s business!!!ALL ZAMBIANS SHOULD SUPPORT THIS OIL DEAL WITH ANGOLA!!!WE HAVE SUFFERED A LOT DUE TO EXPENSIVE FUEL WHICH COMES FROM MIDDLE EAST WHICH IS JUST VERY FAR FROM ZAMBIA!!!
President Edgar Lungu should 100% ignore evil men camped in opposition about this deal as we know too well that they will oppose this splendid idea because IT HAS HUGE INFLUENCE ON WHO WINS NEXT ELECTIONS!Besides,allow processed Angolan oil to start coming into Zambia now!!
WE REALLY CANT WAIT TO HAVE ANGOLAN CHEAP FUEL ON THE LOCAL MARKET!!!
Iwe koswe understand that building a pipe line is not the same as running a horse pipe to your back garden….we are talking 5 years minimum……
What happened to the exploration of oil and gas in Zambia?
It’s was not oiling the corrupt hands so dumped it ????????????
Shortsighted trade deal bcoz Angola’s oil is not suited for Zambia’s Indeni refinery which was built with specifications to import middle eastern light crude oil.
The above observation by Mzambia wa Zamani @9 is the truth. The Angolan crude oil cannot be processed by our refinery because of its configuration. the second point is how the oil be brought in? Unless if they will allow for the importation of the white products from Angola through Namibia or through DRC by railway.
A new refinery for Angolan type oil will cost some $2bn- $2.5bn for a country already heavily in debt .That $5bn oil deal is counter intuitive our trade negotiators ignorant foolz.
Very bad trade deal Indeni refinery will reject this counter intuitive costly agreement.
My reading of this article suggests there are TWO in reference: 1) Angola deal to bring in petroleum products from there by pipeline and 2) bringing on board an equity partner to help in recapitalising INDENI in Ndola.
The Angola pipeline deal was mentioned quite a few years ago and I’m not sure whether it will terminate in NW or Northern province oir Ndola.
Presumably, the petroleum products from Angola will be in ready to use form.
Good moves both of them and urge the Govt to ” faka speed m’fana” as KK would say!