Zambia short-lists five firms for majority stake in oil refinery (updated)

Capitan Investment

16/04/2018 14:37

(Adds details, background)
    LUSAKA, April 16 (Reuters) - Zambia has short-listed five
companies including Britain's Glencore Energy Ltd. and Sahara
Energy Resources Ltd. to buy a majority stake in its only oil
refinery, a state-owned firm said on Monday.
    The government-owned Industrial Development Corporation
(IDC) has said it wants a strong strategic equity partner that
will improve the production capacity of Indeni Oil Refinery to a
level that will meet the nation's future petroleum demand.
    The IDC said in a statement the short-listed firms will now
be asked to submit technical proposals on their bids.
    Seven firms submitted bids to buy a majority stake in
Zambia's sole 24,000 barrel per day Indeni Petroleum Refinery,
an executive at the agency handling the bidding said on March
17. urn:newsml:reuters.com:*:nL8N1QZ077
    Others short-listed are Joint Stock Company Global Security
of Russia, China Petroleum Technology and Development
Corporation and a Chinese consortium of Beijing Huiersanji Green
Chem - Tech Co. Ltd. and Avic International Holding Corporation.
    "Indeni's contribution to the national petroleum demand in
Zambia has, since 2005, been less than 50 percent and this will
progressively reduce if nothing is done to increase the
production capacity of the plant," the IDC said.
    With a design capacity of 1.1 million tonnes per annum and a
current output of 850,000 tonnes per annum, Indeni's production
was far short of Zambia's combined demand of petrol and diesel
currently in excess of 1.7 billion litres per annum, it said.

 (Reporting by Chris Mfula
Editing by James Macharia)
 ((chris.mfula@thomsonreuters.com;))