Trafigura gets hands on BP Botswana assets-Report

Staff Writer | Tuesday November 9, 2010 00:00

 

Earlier this year, BP announced that it would pull out of Botswana, Namibia, Malawi, Tanzania and Zambia, due to a change in strategic focus. Since the March announcement, bidders in the five countries have lined up for BP's extensive assets.

Through its London headquarters, BP has been eager to sell off its assets wholesale, as opposed to piecemeal.

Last week, The Namibian reported that Trafigura, a large independent oil trader had won the right to purchase BP's assets in Botswana, Zambia and Namibia. The Namibian newspaper quoted a government minister as saying the petroleum giant had accepted the conglomerate's offer.

Other media, however, quoted a BP spokesperson as saying nothing had been finalised.

Glenda Zvenyika, as quoted by Reuters Africa, said the company was in talks to sell assets in the three countries, as well as Malawi and Tanzania, but no decision had been made. 'BP is in the process of selecting a buyer for its assets in five African countries and that's all there is at the moment. Before we make an announcement on the deal, these reports are just speculation.'

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.

Ð 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.