Thursday, January 7, 2010

Zambian Government bought Indeni refinery to partner TOTAL

Zambia has purchased the French oil major Total's 50% stake in the country's sole oil refinery, the 24,000 barrel a day Indeni plant. Previously, the Zambia government and Total held equal shares in a joint venture agreement, but when Total advised the government last year that it intended to sell its share in the concern, the government stepped in to take it over completely.

Modernising the ageing refinery, built in the mid-1970s, requires substantial investment, the country's finance ministry has confirmed. The state is said to be considering options to raise the $65m it is estimated the modernisation requires, including seeking investor partners.