THE Zambia Chamber of Commerce and Industry (ZACCI) has advised the Government to look for a strategic partner to run Indeni Oil Refinery once it obtains 100 per cent shares in the plant.

ZACCI northern region president, Eddie Kapungulya said in an interview yesterday that the Government should hold controlling shares in the refinery but that it should allow for an experienced partner to run it.

The Government said on Monday that it was negotiating with Total International to buy the company's 50 per cent stake in Indeni.

Mr Kapungulya said the Government adding the other 50 per cent shares to what it already holds was good but that it should not directly manage the plant.

The Government has an option of re-selling a percentage of the shares or arranging a management contract with an experienced oil refining company.

Mr Kapungulya said the Government should consider retaining a 60 per cent stake in the refinery while the remaining 40 per cent should be given to a strategic partner.

He also said the Government should quickly move to increase fuel reserves for the country to at least three months, besides the reserves that oil marketing companies have.

"Government should also install a second refinery catalyst and reforming unit at Indeni as standby to operate in incidents such as this when the current ones have broken down," he said.

Mr Kapungulya said that would be a simpler way to address the current problems in the short term but that a new refinery was required in the long term to process crude oil from anywhere in the world, including the one to be extracted in Zambia once prospecting was concluded.

He said the Government should begin to plan now for the impending crude oil extraction by establishing a refinery.

Mr Kapungulya said there was need to update the technical capacity of Indeni workers and stakeholders such as the Energy Regulation Board, oil marketing companies and the Government should meet them on a regular basis to review the fuel situation in the country.