(DAILY MAIL) Indeni runs out of crude oil

Indeni runs out of crude oil
… State assures nation of enough fuel
By KASUBA MULENGA

INDENI Petroleum Refinery in Ndola has stopped producing petroleum products after running out of crude oil feed stock. But Government has assured the nation that there is no need to panic because Oil Marketing Companies (OMC) have enough fuel stocks. Minister of Energy and Water Development, Kenneth Konga, confirmed the shut down of the only oil refinery plant in Zambia in an interview yesterday in Lusaka. Indeni Petroleum Refinery public relations officer, Mwila Nkonge, also confirmed the shut down of the refinery in an interview from Ndola.

“Yes it is true the company has run out of the feed stock and it was shut down on Wednesday last week. The feed stock was exhausted,” he said.

Mr Konga said although Indeni was shut down on Wednesday, there would not be any fuel crisis.

“It is just a normal shut down and there is no need for people to panic. We will not have a shortage of fuel. The ship carrying the feed stock will be docking in Dar-es-Salaam (Tanzania) before the end of this week (July 17),” he said.

Mr Konga said the ship ferrying the crude oil feed stock had delayed to dock in Dar-es-salaam because of some challenges in paying the supplier.

“The country will not experience fuel shortages because all Oil Marketing Companies were informed in advance and they have enough fuel stocks in their reserves,” Mr Konga said.

And Mr Nkonge referred the query on the partial shortage of fuel at some service stations in the country to TAZAMA Pipeline managing director Largeman Muzelenga whose company controls the fuel terminal.
But Mr Muzelenga refused to comment on the matter and referred queries to Government.

In January this year, Zambia awarded a US$1.2 billion two-year oil supply contract to Kuwait’s International Petroleum Group (IPG).

Ministry of Energy and Water Development permanent secretary, Peter Mumba, said IPG was selected ahead of four other international firms that included Russia’s Lukoil.

“IPG has been awarded a contract for the supply of 1,440,000 metric tonnes of crude oil over a period of two years and the first supply of 90,000 tonnes would arrive on or before February 9,” he said.

Mr Mumba said the tentative cost of the crude oil would be US$1.2 billion but might go up or down depending on prices on the international market.

In October last year, Zambia faced severe fuel shortages after the French oil company, Total, stopped crude oil imports over some dispute.