Zambia plans to start importing refined petroleum products from neighbouring Angola to lower the cost of fuel.
Energy permanent secretary George Zulu has told Reuters that oil-rich Angola was willing to supply Zambia with petroleum, which the country has been importing from the Middle East.
Mr Zulu says a technical team led by the minister of energy will travel to Angola next week to discuss the details of importing finished petroleum products.
He says government has been looking at ways of bringing down the cost of fuel and that so far it seems the answer lies in importing fuel from neighbouring Angola.
Mr Zulu adds that technical team traveling to Angola would also explore the possibility of jointly putting up a pipeline from Angola to Zambia.
Zambia relies on semi-refined oil imports from the Middle East but has been studying plans to import crude oil from Angola and set up a new oil refinery locally.
President Michael Sata apologised to Angola in October for the MMD government’s backing of the former UNITA rebels led by Jonas Savimbi in the country’s 27-year civil war.
QFM
PF is working for Zambia,Let us support our democratically elected govt lower fuel prices make life easy for our people
Good idea to start with but how is this feasible in the immediate future considering that Sonangol the Angolan National oil institution’s daily output is far below national demand. Talk of crude we would understand that. Also plan for shocks and contingency because if not managed properly Angola brewing political dynamic could place that country into next casualty of the Arab Spring flu. Unless political dynamics are intelligently managed, i foresee the spring flu yet to finish sweeping Africa.
Good advice
Mr but I thought this is why the government is studing the possibility?
With Santos in his 3 decade rule, Angola remains an underdeveloped, war-scarred country that has foundered for decades under corrupt leadership, Angola is one of the poorest lands on earth. But ask any energy executive these days and another picture emerges: a place of immense riches, solicitous of foreign investors and among the three fastest-growing oil exporters in the world today.
A joke of the day.what determine the cost of fuel most is international oil price ant useless taxes,Transportions have little impact on the cost of fuel.
In the capital, Luanda, hotel rooms cost more than $200 a night and are booked two months in advance by the oil companies. While oil companies talk at length about how welcoming the government is to foreign investors, they are much more circumspect when it comes to the government’s lack of transparency or the history of corruption among its leaders.These days, Angola still has a terrible record on corruption and ranks on the lowest rungs of nearly all development indicators. Elections have been postponed several times and are currently scheduled. Public resentment, dissatisfaction and anti Santos solidarity is exponentially building a critical mass towards its own spring.
thts good news,hope everything goes well!!
What connection is their for COBRA’S apology and importing fuel from them? We need a refinery in Mongu so that the pumping distance can reduce, but now BRE pipo they will think we heed to their calls to develop the sandy area.
This is a noble way of thinking. This is one way of contributing to the development of Zambia. Suppose the oil pipeline comes to Mongu and a refinery is built in Mongu, that could bring about employment in Western Province. This idea will also reduce the cost of procuring oil altogether. Don’t mind about the political climate in Angola. Any leadership in that country will need business transaction with Zambia. Look, if we don’t take the right step like this one all Angola’s oil will go to Portugal! By the way where does Angola sell its oil, if not to neighbouring countries? This idea put accross by Mr Sata and team is a very wise move. We want any reasonable solutions to enable Zambia develop. Its not confrontations after confrontations 48 years after independence. Seek for solutions
Its about time!!!!!
@#3 Senior Fimo fimo. That under-developed country managed to host the Africa Cup of Nations. Something we failed to do in the 80s!
Now work that out you dim dim!
My last post on LT.
#7 you are right on.
only felix mutati can analyse the viability and long term pros and cons of this move adequetly of course not chishimba kambwili,who is the energy minister by the way?
You don’t know Felix bwana! Dig his history first then come back and comment
I have been waiting to hear this from the moment the commission of enquiry was constituted to look into the dealings of Indeni Oil Refinery. But as much i welcome this Angola Oil prospect, i feel govt owes us explanations on the findings of the enquiry.
Well Done “Super Ken” for initiating this move, it high time we had cheaper fuel in Zambia, Damn our country is one of the most expensive countries in the world. Sata Save us.
Number 13!!!!!!!!!!! What has KK done to deserve praise here? He initiated nothing and when he was in Angola he just went for a holiday like he did to China.
ON THIS ONE I DO SUPPORT THE GOVT. BUT THE ONLY PROBLEM WITH THIS GOVT IS THEY KEEP ON PROMISING BUT NO ACTION.
Govt should formulate a long term energy policy. The current strategies do not look sustainable. They need to engage consultants to advise them.
# 15. If they promise you anything, You wil start waiting for it, and if they dont, you dont know when it comes. The politicians are the same. It might happen or not. As we hear there are sending a team next week to start negotiations which might be fruitful or not. So the Gvt cant promise in such a situation. We pray that this deal goes through.
I wouldnt be surprised if Angola doesnt know anything about this plan.
Indeni workers should quickly find jobs as tanker drivers to import fuel from Angola. Sorry new thermal power station in Ndola, relocate to Angola thats where we will soon start refining our fuel.
ooooh sorry tazama too
I trust your post is serious because it carries a lot of wisdom in how we should embrace change: Begin to plan for policy shifts by changing lifestyles and employment leanings. That is what makes other countries progressive. In Zambia and most of the third world we will wait for the tidal wave of unemployment to sweep us aside instead!
If it works this may be the solution to souring oil prices.
Test post
Here we go again!! First a bit of history…In 1991 when MMD came into power they suggested in a rather rudimentary manner that the reason fuel prices were high was because of “middlemen”. Hence there was a period of restructuring “liberalisation” of procurement that ultimately led to the demise of ZNOC. Some years later with prices still stubbornly high the then Minister of Energy George Mpombo started to float the idea of a govt to govt deal with Iran to bring prices down. Also sometime after Iran fell flat (and during RB) taxes were reduced…And now we have Angola…Unfortunately what all of these initiatives continue to skirt the bigger issue which would have a more meaningful impact on the price pf petroleum products in Zambia. I talk a bit more about this in my next post…
The real issue that remains untackled in Zambia fuel procurement history is a structural one and for as long as we skirt it the price of product in Zambia shall continue to be high. The issue is the infrastructure. The single point mooring (SPM) off-shore at Dar es Salaam is in a state of disrepair, work needs to be done on the tank farm at Dar, the pipeline together with its re-pressurisation stations is also in a state of disrepair and Indeni who now say they have improved on performance run a processing plant (and not a refinery) hence their inability to refine pure crude. It is these issues that require to be tackled that progress governments have failed to act on ostensibly due to the fact that resolving them may require more than five years. It takes around 8 yrs to build a refinery!
The idea of importing oil from Angola is a well thought move that will save Zambia huge fuel expenses. This should have been long done by previous regimes taking advantage of proximity and trade within neighbourhood. When implemented national fuel bill will reduce thereby making vailable financial resources for development. Angola is the third largest oil producer in Africa and that shouldn’t be a problem. Good and progressive idea from PF government.
There is also the matter of the railways in Zambia that are generally in bad shape and for which running stock is woefully inadequate to transport product in a meaningful manner into the country. With respect to the Angola deal on the table. Firstly as one commentator has already said on this page….Angola does not have sufficient refining capacity to satisfy its own local demand…incidentally South Africa now faces the same challenge particularly with some grades of gas oil (diesel). Secondly turn on your Google Earth and see the lofistical challenge that this enterprise shall entail. If we pull it off someone will most certainly pay for the costs incurred in transportation of product from Luanda to Ndola through that terrain…!!
George Zulu will find, like many before him, that ideas that sound compelling from a rudimentary point of view in the oil industry are in fact sizeable challenges…If we really want to get petroleum products or crude itself from Angola we need to build a pipeline to lets say Mongu plus an associated tank farm and perhaps a real refinery and then a further pipeline into Lusaka with additional tankage. Lastly we should also remember that even though the crude will be sourced from Angola it will most certainly be quoted for using Platts i.e. prevailing prices on the international market even though it probably costs the Angolans not more than USD15/barrel to extract the stuff….:)
this is wonderful lay man’s pre feasibility analysis…..i wonder if kamponyas have the brain power to think like that..
THESE ARE JUST STORIES JUST WAIT AND SEE.
Way to go
#3 and 4: For the first time i totally agree with you. You have spoken as a strategist; hope the PF can read your comment.
The connotation of the story is that prices of petroleum products will come down because of this move and from the comments here people already believe this is the case. The story should read that the govt is sourcing for cheap sources of oil – a situation that may yield nought. The strategy of cutting the numerous middlemen is the best. Cheap sources – forget, more or less — in the same way we do not control the price of copper, so is oil.
The cost of buying crude oil may remain the same but the transportation costs will definately reduce especially if we are to set up a refinery in western province and revamp rail transport, this will result in reduced pump price.
@4 Senior Citizen
You’re very right on the price of hotel accommodation in Luanda in fact it is the most expensive city in the world ahead of Paris, Tokyo and London according to TIME magazine.
Back to the article, this is a good move by the gov’t I just hope the encourages manufacturers to make their products in Zambia instead of importing everything as this would reduce the price of these products and create jobs and additional tax revenue source.
* they encourage manufacturers to …
What happened to the oil we discovered in NW which Mwanawasa announced with some fanfare?
This Senior Citizen of yours is peace of tormented soul. He sounds like a character in this book I am reading “The Egyptian Book of The Dead”.
My friends.You mean even after attending that dinner you never understood what KK came for to China? You never saw or heard what kind of Higher officials he met and what was resolved? People,When commenting as bloggers we do not need to comment based on personal feelings but for the betterness of Zambia .Seemingly some people don’t even understand that our relations with Angola has improved greatly.In Addition you cannot compare Angola and Burundi to Zambia as of now in As far as Infrustructure is concerned.We need to learn alot from them.We’ve to give praise were it is deserved.
Unfortunately, always bad news from Angola! Angola is the nouveau riche of the developing world and yes, expensive but this is understandably a country coming from a war! The infrastructure looks like Zambia’s (a country not coming from war), even our neighbour Zimbabwe is doing better than us!. However, trading with Angola is another way of putting more money into your pockets! Viva la PF and Angola!
Good move by the PF govt.hope this is not just talk.fuel in zambia is just 2 expensive.consider removing some of the make-no-sense taxes.
Peter Cool! We need that kind of analysis! Thanks
dreams. very wonderful dreams. where will PF government find money to do this project? engage private investors? do a PPP?
Good move, but don’t let Kabindele spoil things as he wanted to play his corrupt game with RB on Bangweala rail line.
Importig petroleum products from Angola and planning to erect a pipe line?? Very very bad idea. Whoever is coming with this grazy idea cannot reason beyond his/her political immaturity. How on earth can you expect Angola to supply you with petroleum products when it cannot provide itself with those products. Currently, Angola imports these products from South Africa. The Angolan petroleum products are priced way beyond the rich of most Angolans, and you think they will come cheap for you Zambians. You cannot put up a refinery to beneficiate crude oil from Angola when the supply is so uncertain. Angola does not and will never consider Zambia a trading partner. They do not need your kwacha and your culture!!Please do your research and stop dreaming.
Bravo PF Govt.This are the moves we have been awaiting to hear.In fact this has been long over due.The quicker you do it the better.
Step in the right direction!
@28 The cost of buying crude oil may remain the same but the transportation costs will definately reduce especially if we are to set up a refinery in western province and revamp rail transport, this will result in reduced pump price.
What about the oil propects and diamonds in western province? Can someone enlight me on this issue.
Isn’t this what RB’s son wanted to do with some turkey business guys? why is everyone deliberately skating this issue?
GOOD LUCK WITH THOSE LAND MINES WHEN CONSTRUCTING YOUR PIPELINE. ANGOLA HAS 20 MILLION LANDMINES WITH A POPULATION OF 10 million people. ITS DULL MOVE BY A DULL TRIBAL PARTY PF.
The government needs to be careful on this matter because we have oil and gas deposits around the country and what would happen to the pipeline from Angola if we decide to start to process oil in the near future!
@Kitoko…you are an *****…mutasha kali kwitobo…..
Yes Angola is heavy infested with landmines. The waste in the world. This has hindered infrastracture development. It has `heavy crude oil` which can not be refined in most African refineries. It goes to the USA. We still need 20 yrs or more to develop the infrastructure and facilities to be able to get some benefits from the Angolan oil. It is not an overnight thing and requires not only petience but discipline with resources. I hope we are not just talking without considering these serious issues. If PF starts it now the benefits will most likely not be seen during it`s reign unless it rules in perpetuity. All the best guys!
It has been long over due…its a right step in the right direction PF.some of strated wondering when we were still in late 90’s why fuel from Angola is exported the USA and zambia importing from the middle east.
This is the problem with us zambians, we tok too much and less actions, let the zambian government go tok to angola and hear what they say. why condem now? this is why most you fail in life! you give up before trying. awe mwe…!
@27 ye of little faith, support the government of the day u low life chap what’s wrong with u.?
Thank you Jesus, Amen. Lord we pray make our president Sata whole in health and other faculties of development.
#3 Senior citizen. Angola is not a poor country. You are undermining one of the potentially richest countries of SADC. The past decades of civil war in that country hindered development which would have even changed the lives of many Zambians. And this may be the right opportunity for the region to develop it’s industries by tapping into rich raw materials. We as true Zambians should thank God for the efforts our current government is showing. United we stand. Bravo MS, this is one of the brilliant ideas act on it quickly before America dries the Angolan oil wells.
An African country importing oil from another African nation. Soon After we export electricity, Sugar nefi ways to them; senior citizen are you even African. Your anti-pan Africanism leaves you suspect! Embrace the fact that we shall only develop once we stop shipping billions of kwacha to the emirates for oil, and high levis in Tanzania, plus those oil tankers that have to play ka bishe bishe with Somali pirates lol.
animal farm, some comments are from goats while others are from well informed clever pigs.
Africa is underdeveloped because of this: fear of change western culture worshippers. People that know not that we knew God millennia before missionaries even set foot here. WAKE UP PEOPLE WE BUILT PYRAMIDS. Try saying we didn’t when if fibabumba are on African soil, not Europe and definitely not Greece. Development is, 1) God, 2) housing, 3) education, 4) agriculture. Let that oil flow, better still bring electric cars to Zed and wind mills.
LT bloggers answer me this, why do some Africans here get happy when Zambia makes deals with even Arab nations? But panic and criticize when it’s other African countries. This has bugged me for eons now. Please answer.
@40, PM:
You sound like a foreigner commenting on Zambian issues—-because I do not expect a Zambian to be that daft and ignorant about their own proud history. First of all, let me tell you that Zambia does not need to force on anybody its proud culture, or try to export its culture in that neighborhood. Tell me one country in that neighborhood whose citizens (hundreds of thousands, as refugees) have not, at one time or another, lived in Zambia? These people have/are now going back to their countries (Angola included) well inculcated/acquainted with the Zambian culture. This is our proud history as Zambians which no amount of ignorance or misinformation will ever takeaway from us. No any other country in that neighborhood can ever boast of such…..
cont…. @40, PM:
So where do you get this idea that Zambia is somehow desperate to export its culture, you little twit? And who lied to you that if countries do business their cultures have to merge too—-how shallow is that?
cont… @40, PM:
By the way, last time I checked most (if not all) international business transactions are conducted in Dollars (especially oil which is exclusively quoted in Dollars) and, to a lesser extent, other internationally convertible currencies. So where do you get this rotten idea that Zambia will be trading in “Kwachas” with Angola? I see a RSA flag beside your name, surely you are aware that even RSA does not do international business in Rands, does it? Zambia, like any other country on earth, has foreign currency reserve funds through which international transactions and businesses are done—-stop trying to be smart when you are not, !diot! You may not like the current govt, but please don’t be childish in your discourse on important national issues—-what a mug!!!
We have always wondered about this for decades. Congo DRC, Angola,… have oil, but we import from the middle east. Talking about political dynamic, That region is not the most stable. Actually, oil producers are some of the most unstable. Big up to the pf govt for this progressive move. I think a lot of intellectuals are not disposed to accomplish the impossible because they think things within the confines of taught theories. we shall only move forward if we can break new ground!
wat has always hurt me from bloggers is the hatred pipo have in their heart no matter wat the govt you always seem to have something bad to say, People lets learn to luv and appreciate each other fo Heavens seek. Lord help us
I have been in Zambia for 3 decades as the war being waged here in my country. But immediately the war ended, my govt was more than willing to trade with Zambia as being a good neighbour. The Moxico provincial entire administration travelled to Zambia to find how best we can join hands in developing our two countries.The problems were more from the Zambia than Angola.In Zambia there is too much talk than doing and every body is an expert in the running of the Zambia’s affairs. Unlike here in Angola, where we have leadership although not perfect but are performing very well despite having just come out of the war.So the onous is on Zambians and not the Angolans, no! If the whole Western and Eastern worlds are flocking into Angola for their survival every, WHY NOT ZAMBIANS? AFRICA IS OURS!
I was in Zambia for 3 decades as the war being waged here in my country. But immediately the war ended, my govt was more than willing to trade with Zambia as being a good neighbour. The Moxico provincial entire administration travelled to Zambia to find how best we can join hands in developing our two countries.The problems were more from the Zambia than Angola.In Zambia there is too much talk than doing and every body is an expert in the running of the Zambia’s affairs. Unlike here in Angola, where we have leadership although not perfect but are performing very well despite having just come out of the war.So the onous is on Zambians and not the Angolans, no! If the whole Western and Eastern worlds are flocking into Angola for their survival every, WHY NOT ZAMBIANS? AFRICA IS OURS!
Chinjongo Very sensible you true African patriot