THE Government is confident the intended pulling out of BP Africa in Zambia will be a seamless transition and that another competent investor would take over the assets of the British oil giant.
Commenting on the announcement by BP Africa that it is pulling out of Zambia and four other countries in the region, Energy and Water Development Minister Kenneth Konga said yesterday that Government believes the transition would not disrupt the oil business in Zambia.
Mr Konga said in an interview that BP Africa had indicated to Government it would sell its shares to another investor while the shareholding on the Lusaka Stock Exchange (LuSE) would not be affected.
“The Government is confident that, according to what BP have indicated, somebody else will be found and will take over the shares and assets of BP Africa in Zambia.
“BP has given assurance that this will be a seamless transition and the Government is confident the process will not disrupt oil marketing in the country, as we are sure that another investor will take over,” he said.
The Government could not prevent the company from pulling out because it was a business decision by its shareholders and board of directors.
BP Zambia is being sold as BP Africa has decided to quit five African countries, Malawi Tanzania, Namibia and Botswana to focus on mining and marketing investments.
But BP Africa chief executive Sipho Maseko reportedly told governments and employees in South Africa and Mozambique that the company would stay in the two countries.
“We have discussed with the South African and Mozambique governments about our desire to remain, and invest in these two countries where we prefer to see our operations grow significantly,” he said.
Mr Maseko told Reuters that the oil marketing company would be investing into the growing market share and to grow BP Africa value chain position.
He was quoted as saying: “ BP is and will stay committed to Africa. We have significant operations in Angola, Mozambique, South Africa, Algeria, Egypt and Libya. We will continue to grow and invest in those markets especially in the value chain infrastructure.”
Stockbrokers Zambia, the sponsoring broker for BP Zambia Plc at the LuSE, issued a cautionary announcement to investors in the company on the impending shares of the 75 per cent shareholding by BP Africa.
BP Zambia controls about 60 per cent of the oil marketing business in Zambia, controls the supply of A1 Jet fuel and is a key supplier of fuel and lubricants to the mining sector.
[Times of Zambia]
I thought the Zambian investment environment was flourishing, now BP is pulling out? There is a need to be concerned.
The only asset BP has in Zambia is the plant on the bulk holding facility on the copperbelt,all the petrol stations around the country are under franchise,they’ve made their money and the trading conditions currently prevailing are not beneficial to them either,they are just another OMC,otherwise if they had a refinery,like they do in Angola,SA,Mozambique,Namiba or any other country,they would have stayed put.
Its more unemployment for zambians,and whoever comes in will not maintain the same standards for BP servos,like Woodlands BP,Longacres,in the end zambia looses out
Its noe time for local investors to take up the 75% shares BP Africa is offloading to avoid their falling on the las of another international investor to avoid what happened to Agip and Mobil when their shares ended up in the hands of Total.
The British are also a problem. This better be done smoothly, I saw what happened to Barclays when they restricted their business to commercial industries. They are still trying to come out of that mistake. This is the one reason why the Chinese are becoming our favorite investor, the Western investors really suck us dry. Look at the fuel prices in Zambia, they are marginally high, but still they pull out of Africa.
Its now time for local investors to take up the 75% shares BP Africa is offloading to avoid their falling on the las of another international investor to avoid what happened to Agip and Mobil when their shares ended up in the hands of Total.
Wait and see how Namibia and Botswana react. These two countries have well managed economies and often make informed decisions. Look and learn.
What happens to BP TOP 8
what is Zambia’s bigest challenge in the Petroleum sector today? Is it production or distribution? Much as we appreciate the contribution BP has made to the Zambain economy I strongly feel our bigest concern should be on the production of fuel not merely distribution. Secondly, I think its high time we move away from the dependence syndrome where we put all our hopes and trust in one Company lets encourage and help others to take play a role in the market.
Mamamamamama……………….yalula nkani,This is one of the well paying Companies,GEE!:((:((:((:((:((
how i wish the heading was : RB EXISTS ZAMBIA
I agree with no. 8
The Petroleum in Zambia is one ot the complex sectors that has been debated for some time now. Its a well known fact that the pulling out of an invest (BP) may raise some concern and fears such as loss of employment, reduced revenue for Govt etc. However people need to know who an investor is and their primary objective. The main objective of an investor is to reap his investment plus markup and if according to their own analysis they have done that or they feel their investment is not making expected returns they go. The good thing the Govt has done in Zambia is to maintain a Refinery despite calls from certain selfish individuals to shut the plant so that they can start importing finished products and pull out when they feel like putting Zambia in desperate position.
Cont. from 8
The biggest investment for zambia in the Petroleum sector is infra-structure suc us TAZAMA pipelines and INDENI Oil Refinery. In my opinion if these two companies can work efficiently and effectively the distribution of a product around the country will not be a problem. As a matter of fact alot of OMCs are now involved in the buying and selling of fuel as long as theres a local Manufacturer. There are over 18 OMCs in Zambia today unlike some time back when we only had BP, Total,Mobil etc. Which means fuel business is now highly competitive.
These white guys are fools. After all the money they made from Zambians they just leave like that. Anyway lets show them that we can do without them. If Chinese can mine copper am sure they can supply fuel & lubs. And please whoever in govt is sighning BP’s exit certificate, incluse a clause that will not allow them back until the year 2110, whatever turn our economy takes…. I now understand why MUGABE does not trust the Britons.
Dont worry,Mr RB will woo more foreign Investors,IoI,he has made alot of journeys,so we shall have plenty of investmenst again.
Typhoon,# 1 the economy is certainlly growing as for whether the investment enviroment is flourising, that depends on where you standing. As for the withdrawal of BP, thats just strategy, they have seen an opportunity to eveolve themselves and make more money so they are going for it. Smooth Criminal dont be negative. there is no need for the stations to close down and create unemployment. As for standards why should we fail to maintain them? Its all in the mind
Number 10…there have been many headlines ‘RB exits Zambia’ …only problem is he always comes back
there is nid to be concernd wen a big company pulls out.the minister is just tryin to make us fill gud,while in actual fact everything is wrong
AN energy expert has challenged the government through the Zambia Competition Commission (ZCC) to ensure that the impending share transfer of BP Africa does not land in the hands of other international oil companies alone.
Commenting on the proposed sale of 75 per cent shares by BP Africa, South African-based Zambian petrochemical consultant Johnstone Chikwanda said the trend of international investors living their assets on the laps of another international company when they get tired must not be treated as business as usual.
Chikwanda stated that the country should not experience what happened when AGIP and Mobil pulled out and outlets were sold to Total thereby making Total a dominant company.
He said the departure of long time investors present a unique opportunity for…
:(( inchito shapwa
I think it’s too early to tell the effects of the exit yet. We shall see…
Koonga we trust you on this one the same we did on the last fuel saga!!! What a pretty good you are doing!!
You’re a DAMN GOOD MINISTER
You are hereby invited to attend a meeting at the Zambia High Commission on Friday, 12 March 2010 starting from 1800 – 2030. The meeting is to enlighten fellow Zambians here in the UK about the Citizen Economic Empowerment Commission (CEEC) which has been created by the Government of Zambia to enable it provide funds for Zambians to run businesses. The Chief Executive of CEEC, Ms Mable Mung’omba will lead the discussions.
BP will sell to whoever they want. The govt has only been informed of the pull out but they are not the ones selling BP.
Secondly, BP is pulling out of 4 other countries for strategic reasons. Nothing particular about Zambia. BP wants to concentrate on value addition ie where they can refine and distribute. In Zambia, they only distribute.
Thrirdly, the distribution market in Zambia is regulated by ERB so BP exit will have little effect. It’s only on workers welfare I expect some changes as each company has it’s own culture.
BP has 60% market share in Zambia, having inherited State owned BP Zambia facilities. There’s little room for growth. I will be interested to see who buys it.
Hopefully Zambians will buy it. They made noise about Zamtel?
This is another Barclays Bank saga. come three year BP will return just like the prodigals son.