GOVERNMENT is negotiating with Total International to buy the company's 50 per cent shares in Indeni Petroleum Refinery, Ministry of Energy and Water Development Permanent Secretary, Peter Mumba has said.

And the Government has said Total's decision to sell its stake in Indeni will not affect the supply of fuel because the Government took over the supply of crude oil from Total more than two years ago.

Mr Mumba said in an interview yesterday that the Government had over the past few months engaged in talks with Total to buy the shares although the company had indicated that it had identified a willing buyer of its shares.

"As Government, we have been talking with Total over our intentions to completely take over the refinery as the sole owners and talks have now reached an advanced stage," he said.

The Government and Total International are the joint owners of Indeni with 50 per cent shares each.

Mr Mumba said the discussions between the Government and Total on the future of Indeni Petroleum Refinery in Ndola started last year.

He said the Government was committed to buying the Total shares and had temporarily suspended plans to engage a third strategic partner to join Total and the Government.

"After we buy the 50 per cent shares, it will be time to go back to the drawing board to reorganise Indeni. We are sure this will be done soon because the talks have been going on well," Mr Mumba said.

He said the pulling out of Total would not have a bearing on the country's energy sector.

"It is now more than two and and a half years since the Government took over the role of sole supplier of the country's crude oil from Indeni and there have been no serious problems in as far as supplying feed stock of the refinery is concerned," he said.

And National Union for Transport and Allied Workers general secretary Sam Phiri has urged the Government and Total to quickly iron out their differences before the latter leaves.

"As stakeholders representing the workers at Indeni, we are aware of the fact that the relationship between the Government and Total have been suspect in the recent past.

"We want the two shareholders to part company on a good note although the pull-out of Total will have no serious effects on the future of Indeni and the energy sector in general," he said.

He said there was no need for panic over Total's plans to sell its shares in Indeni because Zambia enjoyed a free market economy where there was room for new players.