Botswana Oil to secure supply stability
Isaac Pinielo | Thursday October 16, 2014 15:02
The highly anticipated company is expected to achieve government’s broader economic objectives of ensuring security of fuel supply and facilitating active citizen involvement in the petroleum industry.
Speaking at the launch, President Ian Khama said, as a landlocked country Botswana needed to ensure a flawless flow of petroleum products. He noted that two diamond mines of Orapa and Jwaneng consume about 1.3 million litres of diesel per month, adding that the emergency power supplies in Orapa comprising of two 45 MW open cycle gas turbines consume an average of 22,000 litres of diesel per hour at full capacity.
“It is clear that petroleum products are important inputs for our mineral production and power generation. Without a continual and secure supply of petroleum products, our economy could be compromised,” he stated.
Khama acknowledged that the company would consider means of bringing in petroleum products into the country to ensure that the country developed a reliable and sustainable petroleum industry. He further indicated that the company would work with other companies to facilitate their participation in the oil industry. “It has been difficult for citizen emerging companies to make a significant contribution in the petroleum sector,” he said.
The president also expressed hope that BOL would provide support to the emerging citizen-owned companies, a catalyst that would provide opportunities for them to ensure that Botswana achieves security of fuel supply.
“We expect Botswana Oil Limited to develop world class products and services and thus support the growth of citizen emerging companies and hopefully their contribution towards economic development,” he explained.
Khama also appealed to citizen companies that are active in the oil sector to contact BOL and seek further information on what areas of potential partnership exist.
Having been incorporated under the Companies Act and operating under the purview of the Ministry of Minerals, Energy and Water Resources, BOL is said to be a critical agent in the transformation of the oil industry.
BOL chief executive officer, Willie Mokgatlhe, indicated that among other duties, the company had been mandated to manage state-owned strategic fuel reserve facilities, strategic stocks as well as bulk storage and distribution.