19 July 2008
A consignment of 90,000 tonnes of crude oil which was expected in Zambia by Monday will be delayed for a week because the Government is yet to sign an importation deal with the financiers.
Energy and Water Development Permanent Secretary, Peter Mumba, however, assured that there was no need to panic because the Oil Marketing Companies (OMCs) were already importing finished petroleum products.
Zambia's diesel consumption has risen to 1.6 million litres a day from the previous one million while petrol consumption was up to one million litres from 750,000 litres a day.
Most industries have turned to fuel powered electricity generators to beat Zesco load shedding.
"The crude oil will be delayed for one week but hope is not lost because the OMCs are bringing in fuel to meet the country's demand," Mr Mumba said in an interview in Lusaka yesterday.
The delayed 90,000 tonnes shipment of crude oil was financed by PTA Bank after negotiations with Stanbic Bank broke down.
Mr Mumba said he was confident that the Government would next week conclude negotiations with Zambia National Commercial Bank (ZNCB), which had been selected to finance up to US$400 million for Zambia's crude oil imports over the next two years.
He said British Petroleum (BP) Limited alone had already ordered 35 million litres of diesel while 35 wagons of diesel were on the way to Ndola using the Tanzania Zambia Railway Authority (TAZARA).
Mr Mumba said the 35 million litres of diesel that BP had ordered could last the country more than 20 days.
He said other companies that had been engaged to import fuel included Total, Engen and Petroda and the Government was comfortable with the fuel situation.
The Government selected Kuwait's International Petroleum Group last November to procure crude oil.
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