Page 23 - issue 28 2020

News 23

Botswana oil Company

demystifies the factors that

Influence Fuel Pricing

by : Mwiza Kunyuma

n informative media workshop following and recommended formation landlocked countries is 90 days. Thus
was hosted by Botswana Oil at of a national Oil Company .Start-up was said Botswana Oil is embarking on
ATravel Lodge to explain different launched in 2013. several projects to bring capacity to 60
elements and factors shrouding fuel days cover.
pricing. Mr. Mosetlho Kenamile who is Government decided to form a national
Botswana Oil Acting Chief Operations oil Company to satisfy 1.2 billion Projects:
Officer gave a brief introduction to what litres of petroleum products /year • Tshele Hill Storage Facility
the national oil company stands for ,its consumption.3 300 liters of petrol is -181 million litres facility to serve the
vision and future strategies. consumed daily in Botswana. Currently south but Project has been suspended
Botswana imports 100% of her needs because of funding constraint but
The formation of a national oil company with 90% imported by International Oil efforts to source funding are ongoing.
was driven by the fact that petroleum Companies.
products are a basic national need and • Francistown Depot Expansion
government needs a certain degree of There is also need for transformation of - aimed at increasing the capacity
control over it. the petroleum in Botswana. A legislative of Strategic Storage Reserves in
framework has been launched to Francistown by 60 million litres bringing
At the time there was also an exit of the support this transformation. Currently the depot capacity up to 95 million
Multi-National companies such as BP a draft has been handed over to litres. Project suspended because of
and Shell (partially) coupled with the Ministry of Mineral Resources, Green funding constraints
national oil shortage of 2010.When BP Technology and Energy Security and this
pulled out of retail business in Southern transformation will give the government • Ghanzi Depot – a 30 million
Africa and MMGE bid to purchase it, significant control over imports. litres facility to serve the western part
Botswana was not successful because of the country. Fencing has completed
the business was being sold as a package Current combined BOL storage capacity but again project on hold due to funding
not singling out Botswana as a country. stands at 62 million liters/18 days cover. • LPG Depot facility in Palapye:
Deloitte engaged as consultant in 2010 The recommended storage capacity for Funding for short, medium and long
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