THE Government is confident the intended pulling out of BP Africa in Zambia will be a seamless transition and that another competent investor would take over the assets of the British oil giant.

Commenting on the announcement by BP Africa that it is pulling out of Zambia and four other countries in the region, Energy and Water Development Minister Kenneth Konga said yesterday that Government believes the transition would not disrupt the oil business in Zambia.
Mr Konga said in an interview that BP Africa had indicated to Government it would sell its shares to another investor while the shareholding on the Lusaka Stock Exchange (LuSE) would not be affected.

“The Government is confident that, according to what BP have indicated, somebody else will be found and will take over the shares and assets of BP Africa in Zambia.

“BP has given assurance that this will be a seamless transition and the Government is confident the process will not disrupt oil marketing in the country, as we are sure that another investor will take over,” he said.
The Government could not prevent the company from pulling out because it was a business decision by its shareholders and board of directors.

BP Zambia is being sold as BP Africa has decided to quit five African countries, Malawi Tanzania, Namibia and Botswana to focus on mining and marketing investments.

But BP Africa chief executive Sipho Maseko reportedly told governments and employees in South Africa and Mozambique that the company would stay in the two countries.

“We have discussed with the South African and Mozambique governments about our desire to remain, and invest in these two countries where we prefer to see our operations grow significantly,” he said.

Mr Maseko told Reuters that the oil marketing company would be investing into the growing market share and to grow BP Africa value chain position.

He was quoted as saying: “ BP is and will stay committed to Africa. We have significant operations in Angola, Mozambique, South Africa, Algeria, Egypt and Libya. We will continue to grow and invest in those markets especially in the value chain infrastructure.”

Stockbrokers Zambia, the sponsoring broker for BP Zambia Plc at the LuSE, issued a cautionary announcement to investors in the company on the impending shares of the 75 per cent shareholding by BP Africa.

BP Zambia controls about 60 per cent of the oil marketing business in Zambia, controls the supply of A1 Jet fuel and is a key supplier of fuel and lubricants to the mining sector.

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