Economy

Zambia Inks $2.5b Oil Deal with Angola

The Zambia Development Agency (ZDA) and an international corporation of Angola on Friday signed a US$2.5 billion memorandum of understanding (MoU) which will see the construction of a petroleum pipeline to run from Lobito in Angola to Lusaka.

Basali Ba Liseli Resources Limited (BBLR) of Angola and Zambia’s ZDA, confirmed that the project that would see a reduction in the pump prices of petroleum products, would commence early next year and be completed in 2016.

According to the MoU, the project would help reduce fuel prices in Zambia and also create about 6, 000 jobs in both countries.

The project which would be called Angola-Zambia Refined Petroleum Multi-Product (AZOP) would cover 1, 400kilometres from the Port City of Lobito, to Lusaka in Zambia.

AZOP Pipeline system would not involve middlemen but designed to deliver finished products including petrol, low sulphur diesel, Jet fuel and Liquefied Petroleum Gas (LPG) for Zambia, and Katanga Province in Congo DR.

BBLR executive director Wamulume Kalabo said Friday “we have no doubt the AZOP Pipeline system will reduce the relative pump pricing in Zambia and the regional target market, while further enhancing the quality of life by agitating for migration from the use of charcoal to the use of LPG, in most domestic homes,” he said.

But Minister of Mines, Energy and Water Development Christopher Yaluma has been quoted by local Times of Zambia saying his ministry is not aware of the deal.

He said the ZDA went ‘a little bit too far’ in signing and announcing the agreement and should not commit Government to deals such as the US$2.5 billion construction of a petroleum pipeline.

It is not clear however, why the newspaper contacted the minister of Energy when the said deal is under the responsibility of the minister of Commerce Bob Sichinga.

Exclusive to Zambia Reports

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