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Thursday 16 September 2021
HomeAfricaGovt expects BP's exit from Zambia to be seamless

Govt expects BP’s exit from Zambia to be seamless

 The government has expressed confident that the intended pull out of BP Africa from Zambia will be a seamless transition and that another competent investor would t ake over the assets of the British oil giant.

BP Africa has announced that it is pulling out of Zambia and four other countrie s in the region. Apart from Zambia, BP Africa has decided to pull out of Malawi, Tanzania, Namibia and Botswana to f ocus on mining and marketing investments.

But Energy and Water Development Minister Kenneth Konga said government believed the transition would not disrupt the oil business in Zambia, the state-run Times of Zambia reported Thursday.

Konga said BP Africa had indicated to government it would sell its shares to ano ther investor while the shareholding on the Lusaka Stock Exchange (LuSE) would not be affected.

“The Government is confident that, according to what BP have indicated, somebod y else will be found and will take over the shares and assets of BP Africa in Zambia.

“BP has given assurance that this will be a seamless transition and the Governm ent is confident the process will not disrupt oil marketing in the country, as we are sure that another investor will take ove r,” Konga said.

He said government could not prevent the company from pulling out because it was a business decision by its shareholders and board of directors.

Stockbrokers Zambia, the sponsoring broker for BP Zambia Plc at the LuSE, issued a cautionary announcement to investors in the company on the impending shares of the 75 per cent shareholding by BP Africa .

BP Zambia controls about 60 per cent of the oil marketing business in Zambia, co ntrols the supply of A1 Jet fuel and is a key supplier of fuel and lubricants to the mining sector.

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