Features

Energy Minister on Saudi oil deal

FROM right, President Edgar Lungu, Total Zambia Managing Director Olufemi Babajide, Minister of Energy Matthew Nkhuwa, Minister of Finance Margaret Mwanakatwe and Total Zambia Chairman Pierre Yves-Sachet at the official opening of the Total Zambia head office in Lusaka on October 16, 2018. PICTURE: SALIM HENRY/STATE HOUSE

VIOLET MENGO, Lusaka
IN THE last part of this interview, Minister of Energy Matthew Nkhuwa talks about the much anticipated Saudi Arabia oil deal which was expected to make the price of petroleum products cheaper. The minister explains why the oil deal has not materialised four years later.
Q: In the past, Government had promised the people cheap oil from Saudi Arabia. What has gone wrong with the Saudi oil deal?
A: The procurement discussion of the Saudi oil began in 2014, when the Saudi Fund for Development (SFD) offered the Zambian Government a loan of US$20 million towards the supply of petrol and diesel by the Saudi Aramco Product Trading Company, (Aramco Trading) up to the port of Dar es salaam. The contract that was signed in February 2015 with Aramco Trading for the supply of 18.3 million litres of petrol, which is equivalent to 16 days of national consumption and 27.2 million litres of diesel, which is equivalent to 13 days of national consumption.http://epaper.daily-mail.co.zm/

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