BP pulls out of Botswana

Brian Benza
Staff Writer | Wednesday March 3, 2010 00:00

 

Although details on timeframes and pull out strategies are still sketchy a statement by BP Africa Chief executive Sipho Maseko says that the oil company will pull out of Botswana and four other Southern Africa countries following a strategy review, but would still invest to grow its market share in Mozambique and South Africa.

Apart from Botswana, the company says it plans to sell its marketing businesses in Namibia, Malawi, Tanzania and Zambia, but said Mozambique and South Africa offered better synergies with its supply portfolio.

'I would like to stress that BP is and will stay committed to Africa,' BP Africa's Chief Executive Sipho Maseko told Reuters.

'We have significant operations in Angola, Mozambique and South Africa and in Algeria, Egypt and Libya. We will continue to grow and invest in those markets, especially in the value chain infrastructure.'

BP said it had informed the governments of the five countries it is exiting, but did not specify when their assets would be sold.

However, Kesetsenao Molosiwa, Director of Energy Affairs in the Ministry of Minerals, Energy and Water resources denies having knowledge of the company pulling out of Botswana.

' We have only heard rumours about that, nothing official has been said to us. Usually when such a decision is taken, we are informed on time so that they would be a smooth transition and no interruption in fuel supplies or job losses,' said Molosiwa.

Efforts to get a comment from BP Botswana General Manager Mahube Mpugwa were fruitless by time of going to print.

BP, which has been in Africa for over 80 years, has been operating in Botswana as an independent company since 1975 when it split from Shell.

BP Botswana has over 30 retail sites across the country, competing with Shell, Engen, Caltex and Total. The company is currently operating in over 40 African  countries.

In Botswana it has a whole range of commercial customers and its main contracts are with Debswana, BCL, BDF, Central Transport Company (CTO) the government fleet, construction companies as well as transport companies.