Netherlands-based oil trader Trafigura has been named as one of six companies awarded contracts to supply undisrupted petroleum products to Zambia for the next two years
The world’s third largest oil trader was among a host of successful bidders, which includes Tanzania’s Oilcom and South Africa’s Gunvor, to have been awarded contracts by the Zambian government to supply the country with petroleum products.
According to the Zambia Daily Mail, the new deals are part of Zambia’s attempts to reduce fuel pump prices.
Ministry of energy and water development permanent secretary George Zulu said the selection criteria had been tight in order to ensure corruption was removed from the process.
“All I can tell you is that the final decision was arrived at above board,” said Zulu.
“In the past my predecessors have been followed and interrogated by police on retirement and I don’t want that to happen to me; so we are doing everything by the law.”
Trafigura will work locally with its wholly-owned subsidiary Puma Energy, which bought a selection of BP’s assets across the region in 2010, while Oilcom has partnered with Petroda Zambia.
Trafigura, which has access to approximately US$33 billion in credit facilities, will supply an undisclosed amount of gasoline or diesel to the East African country, while Gunvor will provide it with crude supplies.
