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Saturday, January 1, 2022

Government Places Indeni Petroleum Refinery on Care and Maintenance, Some Staff to be Re-deployed

Economy Government Places Indeni Petroleum Refinery on Care and Maintenance, Some Staff to...

The Minister of Energy Peter Kapala has announced that the government has placed the Indeni Petroleum refinery, in Ndola on care and maintenance as part of reforms aimed at promoting efficiency and stability in the petroleum subsector.

Mr. Kapata said that the move will result in having fewer employees at Indeni with the option of re-deployment of staff and voluntary separation for those who may wish to leave the company.

Mr Kapata aid that products such as petrol, Jet A1, Liquefied Petroleum Gas (LPG), Kerosene and Heavy Fuel Oil (HFO) will all be transported via road as they will no longer be produced by the refinery.

The Energy Minister however said that the government intends to implement the pumping of Low Sulphur Gasoil (LSG) Diesel through the TAZAMA pipelines as one of the reforms.

Mr Kapata has said in a statement that as promised, the new dawn government has begun the process of reforming the fuel supply chain in a bid to achieve least-cost pricing while ensuring a stable supply of petroleum products and assured the nation that reforms in the fuel supply and procurement system will be done in a transparent manner with the participation of the private sector.

Below is the full statement


  1. Indeni has not been refining petroleum for a long time now. There are no activities at indeni and people have been getting salaries for not doing anything. The govt is just making official the transportation of fuel by road as opposed to the previous govt whose cadres were at the centre of collapsing indeni by acquiring many tankers for the same business under the disguise of youth empowerment. Not again should we have cadres to that extent in zambia. It hurts. We are okay now

  2. @BMC
    So for the next 5 years you will just be singing about PF cadres sounding like a broken record…no wonder Zambians have already given up on Vascodagama and ready to vote useless UPND out of office…you don’t know the mood of Zambians and keep on denying you will be shocked come 2026

  3. The fact of the matter is Indeni hasn’t been refining any crude oil for years …at least this govt has had the balls to come out and state it. What do you think PF aligned Road Haulage owners like GBM have been transporting all year round? FRA Maize no chance….this is why he is quiet now.
    Govt needs to come out and state what it intends to do with Indeni and putting everything on the road doesn’t help at all when you are not investing anything in the rail network.

  4. Briefly The decision to Close Indeni and import these either in Transport or reserve measure is a Policy mistake Indeni is and has always been a National security Asset that is meant to assure energy security in the fossil fuels and protect |Zambia’s Industries from supply disruptions especially in energy situations This policy decision is a minus In Zambia’s Fuel and Petroleum strategic Reserves Instead of Consolidating the Strategic Fuel reserve system for the country Its also bad in terms of addressing and modelling and containing There is no harm in having a balance of imported and locally refined improvements at indeni for a number of domestic and foreign crude oils…

  5. #3  Deja Vu 
    November 27, 2021 At 7:39 am

    “#2 Tell us kaili”

    It is more cheaper to bring in finished products by road because indeni is an old dilapidated asset……..

    The guts of That refinery are so old technology that even computarising some parts don’t do much………

  6. #12 Spaka just like using trucks instead of the rail line the real reason is that many politicians benefit from these trucks. Have you ever heard any member of parliament discouraging the use of road transport? Never! Because the majority of them own these trucks. This oil thing may be justified by the difficulties at INDENI but the underlying reason is that many of these politicians will be some sort of players. INDENI is just an opportunity.

  7. #13  Deja Vu
     November 27, 2021 At 11:40 am

    “#12 Spaka just like using trucks instead of the rail line the real reason is that many politicians benefit from these trucks. Have you ever heard any member of parliamen…”

    That could be true , but the fact remains……

    It is cheaper to use road transport of the finished products than refine into the products at indeni………..

    Ontop of that indeni is not a major employer like the mines……..

    If that is not a good enough reason , for transporting by road , I don’t know one.

  8. Indeni is not a refinery. It does not refine crude oil. It is a separator that recovers oil products from co-mingled waste. It is a an antiquated technology from the 1930s. Indeni was never fit for purpose when it was built in the 70s . Kaunda went for the worst solution in the 70s. It was cheaper then to just use TAZAMA to import refined oil products. Oil refining technologies have undergone massive changes and improvements. Oil refineries that were built in the 60s and early 80s are now antiquated. Countries such as Argentina, Australia and South Africa whose refineries were built during that era are now resorting to importing refined products mostly from Asia where huge and modern efficient refineries are located. This is the same problem Nitrogen Chemicals has. Nitrogenous fertilizers…

  9. Life under upnd. People have been calling me past few weeks saying kaizar we regret voting for upnd and are sorry

  10. ….are now been cheaply manufactured from Natural Gas. And there’s absolutely no way NCZ can manufacture cheaper fertilizer with that technology than what is obtaining on the international market. Zambia moves very slowly and this is our undoing.

  11. I saw this coming after the budget speech and the follow up Sunday Interview. Indeni becomes the first company to be fixed. Let us prepare for an increase in fuel prices and the resulting domino effect. Nice fixing Bally. ????

  12. 1. Whilst on this subject, the government & the Private Sectors need to start investing more money in Electric Grids & Solar Energy. Especially the private sector. The future is electric cars, which means we will need more power to charge electric cars and use less gasoline. We will need home charging points, public electric kiosks and work place charging points. The major leading car manufacturers have committed to stop making gasoline cars. Ford, GM, Mercedes Benz, [ VW which owns Audi, Bentley, Bugatti, Lamborghini, Porsche, and Volkswagen] will all go electric by 2035.

  13. @Tarino Orange
    Someone will emerge I don’t know who but by 2024 Zambians might have a choice….also looking at the crop of Politicians in PF I don’t think they stand a chance….Hamududu is just a joker and Kalaba has some PF stains….

  14. 2. For those bloggers who turn up every day at Lusakatimes times who say are trained engineers, this is an opportunity to set up energy companies and tap into great potentials.

    The world has so much money sitting idle, just waiting for someone with the next big idea. All it requires is to write a business plan and go and knock at doors in Investment & Financial Houses. The UK has £400 Billion waiting to be taped. The USA has $1.5 Trillion waiting for anyone from developing nations such as Africa to use to it. What stops us is a lack of belief to pursue. If you live in EU / UK & USA sourcing money is easier as long as, have you a great idea.

  15. 3. When you use your “Imaginations”, “Faith and have the “Will” to do it – things always have a natural and miraculous way of coming to manifest, regardless of your background or how bad you started. That means cleaning up your “Anger”, “Hatred” & “Jealousy”. These 3 are success blockers. And not forgetting – Laziness, Blame Games & Excuses which is an culture in Zambia.

  16. Ati some staff will be redeployed, where? Do we have another refinery in Zambia.

    Instead of creating jobs, you have started reducing. Ukulanda kwalyanguka

  17. All these are jobs, if people are in employment then that is good, you don’t close an institution that has employed citizens even if it is making loses you have subside it and improve it to make viable .
    Now those 300 workers must be multiplied by 11 house holds all those people will lose their livelihood,, it is 3 ,300 people thrown in the streets.
    This government need to kind to it’s citizens.

  18. My explanation here is that one Zambian worker represents 300 by 13 more people equal to 3,900 people .
    Meaning that his wife and her mother and father. The husband his father and mother, and the five children in his own house and usually cousins from both sides one from each side he looks after in that family.
    So please you government don’t rush into closing an institution that employes citizens it is wrong, just do your thinking don’t add poverty to your people who brought you in power to better their lives .

  19. @Henry
    The Language they’re using is very deceiving….instead of just saying they’re laying off staff….like you’ve put UPND is killing employment not creating employment….talk is cheap

  20. Just imagine for a moment if it was Lazy Lungu’s goverment that had made this statement. Those supporting this move would have come up with theories of how could be utilized to full capacity, how in some European country where they had the same type oil factory and it was upgraded to something unbelievable. Yet they knew that INDENI was a failing project.

  21. Independent Observer **24

    Though I like your headfirst thinking and mindset…. I can also say that we are a doomed nation because we are too much about
    fighting each other than having progressive minds. And those that are given instrument of power often end up as looters…..

  22. INDEPENDENT [email protected] 20
    Just to add to your list, Volvo, Jaguar, Fiat, Mini are completely going electric by 2032. In the USA the Biden Administration wants 50% cars to be electric by 2030. Its time for Africa to invest heavily in solar power and think ahead.

  23. #25, 26  Nshilimubemba

    I dont think indeni emplyes more than 100 workers ……..I could be wrong…

    But , keeping indeni operating means the high cost operations is passed on to millions of Zambians……….maybe 70 to 80 % of urban dwellers and a good percentage of rural folks …….

    Though it is bad for those who will lose jobs , millions of Zambians will have less costs passed to them………

  24. This is a very sad development to the nation, Zambians expected job creation not putting industries on care ad maintainance is not a solution to the nation. Ba HH think twice on this issue, this nation won’t develop if Zambians won’t hv a lion’s share in the running of our economy, foreigners won’t solve this job issue bt us. Am really disappointed with such moves. This not a solution to the problems we facing. U turn on this issue ad revamp our industries.

  25. TARINO 30

    I get you. My points above are about the future and how we must “tap into our potential” as the world goes into electric cars away from using Gasoline which we are very much dependant to run cars. Let me quantify why it’s important to tap into our potential!

    1. Everything looks impossible until when someone does it. We need to stop looking at reasons why things cannot work but finding or taping into Ways, Concepts, Ideas and Means which can change things and challenge the status quo.

  26. 2. I am not for Fred Mmembe, but I respect his guts. Times of Zambia & Zambia Daily Mail were too powerful and funded by the government. People were scared to set up newspaper companies and challenge the status quo. Yet Mmembe, started the Weekly Post and grew his media business to point of selling more newspapers per day beating Times of Zambia & Daily Mail combined. Then he set up Post Courier, and Zambian Airways but power got to his head & greed killed him.

  27. 3. At one point doing a Marketing Diploma and Degree was a must have qualification. However, the world has now completely changed. You don’t need to have a Marketing Dept / Agency / Middlemen Sales Reps to sell your product. You can market and target customers/clients by just using technology and run a $ Billion Dollar Business.

  28. 4. The world said Henry Ford was crazy before he made his first car. The world said The Wright Brothers were delusional to think of a plane. Mind you these two brothers were just Bicycle Repair Men. The first plane they made, only flew up for 12 seconds but they never gave up. The rest is history. Then there was George Graham Bell who invented the Telephone. He was told to go and seek Psychiatric Help, because it was seen as impossible to have two people speak over a distant via wires and two telephone devices.

  29. 5. Tarino – I challenge you to always think outside-the-box and tap into your Creative Power. Don’t ever look at why things cannot work. But find ways in which you can challenge the Status Quo become a Game Charger

    Original ideas normally don’t make any sense. Making a car after centuries of using horses sounded impossible. Making a telephone was so spooky. A plane was up against the Force-of-Gravity, but someone thought of euro-dynamics, and it worked.

    Enjoy The Day and Keeping Blogging !!!

  30. Malaika 29
    We are not doomed. Failure starts in the mind and it ends in the mind. If we say we are doomed then we surrender to failure.

    The quickest path or way to guarantee failure – is to say I am not going to take action or try. Or point at every reason you can find to justify that things will not work.

    Successful people look for problems and once they find a solution they make money out of it and change the world. Poor minded people run away from problems. They never see them as opportunities, to change the world and create worth out of it. They spend too much time looking for quarrels and confrontations.

    Enjoy The Day !!

  31. Spaka @ 32

    Its nice to see you engage with other commentators without getting into name calling.
    Don’t you think its a progressive way of approaching debate. ??

    I agree with all your comments.
    In about 5 years electric cars will be in demand which is a reminder that we will need more power from Solar Energy to charge cars and cut down on fossil fuels. We have to be strategically one step ahead.
    This challenge cannot jut be left to the government. Overall nice objective comments from you.


    i guess that’s the difference between your success story and all those
    people who come here to insult you. they wake up every day just determined
    to insult, abuse and often they just embarrass themselves. one can see that they frustrated
    people full of hate, hate, hate, hate…………………

  34. flag Wow! How Anthony Bwalya came from the backdoor, overlapped and knockout SLUGGISH and SLEEPY established media CRONIES of UPND to become HH’s Right Hand Man & Press Aid.

    30 #Tarino

    I think you have been schooled by # INDEPENDENT OBSERVER. That’s how intelligent people think.
    ” Ati Tap Into What? …. Kikiki Kikiki

  35. @Matafela Mulife
    Thanks for your observations on Spaka and this is how forums and debates should be…very civil and respectful of others whether they agree with you or not….no more insults and that’s how we will develop Zambia

  36. If you want to create industry or more jobs you don’t go around closing those are performing less, however you revitalize them so that they can be vibrant and bring new ones on the block that is being progressive , I mean if there is any under performing company potentially it means there is an infrastructure at that location now you close what do you do with those asserts do you sell them or you just leave them standing.

  37. @ Independent Observer, I rarely comment as a rising entrepreneur. Thank you for schooling most of the doubting Thomases who are always thinking in the negative than the positive. That has been my principle never to give up no matter how many times I fail. To me, failure is not an option because the survival of thousands of Zambians in family and friends depend on my success. Keep up the objective and positive comments.

  38. @37 independent observer
    Wow….you’ve reminded me of my late friend Cletus Chanda…he had a diploma in Marketing from ZAMIM….it used to be the most feared diploma back in the days….remember every company used to have a Marketing Manager

  39. Saulosi @ 45
    I am approve your argument and Thank You.
    We must stand up against this poison

    I have noted that in the last few months @INDEPENDENT OBSERVER & @GEOFFREY KHUMBULA
    have been consistence on the need to respect each other even if we disagree.
    We can still promote civility….
    Supporting different political parties should never be the reason to hate
    and abuse another person.

  40. Zambians are very very happy with life under UPND rule with no regrets. Even inflation and Kwacha vs U$D value have bowed down to UPND rule.

  41. Saulosi 47

    Indeed the world has changed. Guys used to come from college with Diploma in Marketing and would get company cars straight away as Marketing Managers, because their jobs was to be on the road looking for clients and promoting products and services

    In the meantime, keeping up preaching goodness. No one owns the Truth & Wisdom. We are all here learning every single day. The day we stop being students-of-life, is the day you take your last breath and die.

    Remember !! . Bullies are normally cowards at heart. The minute you challenge them they resort to insults.

    Enjoy The Evening !!!!

  42. The new dark government is thinking that they are punishing PF. Indeni does not belong to PF, infact the people you have started punishing are the people that voted for you.

    And these are the same people that will vote you out. Did someone think about how many families will be affected. The number of employees does not matter. Let’s be considerate!! Where would a security guard be redeployed to???

  43. Just face it. Zambia has a problem of maintaining important structures. Look at ZRL, our Mines, Our roads, or buildings in LSK. When you see handworking galant men like ECL, you immediately learn that undertaking projects like rebuilding Lusaka roads and KKIA becomes paramount.
    The option of a lazy Mwanakatwe/hh pair is to do away with capital infrastructure-like projects to save for the economy, accountant mentality. The culture of maintenance in Zambia has never awaken. This Government can’t lauch a satellite. It can’t explore for crude OIL either. It is run by accountants. Sorry accountants but you’re weak. You just want to milk the cow.

  44. Its a bad move,no job creation there,why not recapitalise and bring new management? The company needs to actually employ more people.there is no way the company can fail to run with high numbers of vehicles in the country.fuel business is lucrative.

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