Published by the government of Zimbabwe
17 December 2007
Harare — ZIMBABWE has struck a deal with Equatorial Guinea in which the petroleum-rich West African country will supply crude oil, a Government official has said
"Following our engagement with Equatorial Guinea . . . Zimbabwe can now even get crude oil and arrange for its refinement through third parties," said Industry and International Trade Minister Mr Obert Mpofu in his information memorandum to the Cabinet on his trade and investment mission to Angola recently.
The Government and Iran have already agreed to work on the refurbishment of the oil refinery here whose equipment has become obsolete.
The refinery was built in the 1960s using Iranian technology and an agreement was sealed during former president Mohammad Khatami's last visit to Zimbabwe.
Mr Mpofu said the Government was working on arrangements of paying for crude oil imports from Angola.
Angola has been concerned with Zimbabwe's payment terms.
However, following consultation with stakeholders by the Ministry of Energy and Power Development, indications were made to the Angolan Ministry of Petroleum that Zimbabwe is comfortable with a 90-day credit facility.
Alternatively, Zimbabwe could also repay with a refined product.
In that respect, Zimbabwe would send a team to Angola to pursue the matter at a technical level.
"The team should also include the Ministry of Finance and the Reserve Bank of Zimbabwe," Mr Mpofu said, adding: "The Zimbabwe Embassy in Luanda will link up the two sides."
Angola is Africa's second largest oil producer.
On the other hand, relations between Zimbabwe and Equatorial Guinea strengthened after Zimbabwe intercepted 77 mercenaries who had landed at the Harare International Airport on March 7, 2005 en route to the country where they intended to stage a coup.
Since then, the two countries signed various agreements in areas of trade and investment.
Early this year, a delegation of Zimbabwean businesspeople led by ZimTrade went to Equatorial Guinea to pursue various business opportunities in different sectors of the economy such as hospitality.
Zimbabwe has been facing acute fuel shortages over the past seven years, a development that has affected key sectors of the economy such as tourism, manufacturing and mining.
This has prompted the Government to look for alternative ways of producing fuel, including extracting bio-diesel from jatropha seeds and vegetables.
President Mugabe last month commissioned a multi-billion-dollar bio-diesel plant capable of producing at least 100 million litres of diesel per year, saving the country at least US$80 million annually.
The plant is of its first kind in Africa. Plans are underway to set up such plants in all provinces. There are also moves to revive the ethanol plant in Triangle.
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