BOL allays failure fears on new mandate
Botswana Oil Limited ( BOL) is optimistic that required preparations have been made ahead of the company’s taking over importing of the country’s petroleum needs. The Chief Executive Officer, Meshack Tshekedi has allayed fears that the national oil company would face strong headwinds in its mandate of importing 90 percent of the country’s petroleum needs, while 10 percent imports is catered for by local companies. “We spent a lot of efforts building the requisite capacity,” said Tshekedi. With the country consuming approximately 1.3 billion litres per annum and 108million litres per month, BOL has put in place a six months transitional plan, allowing the company to take over importing of fuels. One of the mitigation plans BOL has embraced is spreading the risks, through contracting different suppliers from three different routes which include – South Africa, Namibia and Mozambique. BOL General Manager Supply, Onkutule Masima said the company will optimize all routes to get efficiency to avoid shortages experienced during the COVID- 19 era and due to South Africa’s refiniries breaking down in the past. “We have made sure that all routes are active all times,” said Masima, adding that logistics is within BOL’s operational capabilities. Masima further emphasized the company has its ducks in a row ahead of its new mandate which ensures security of supply, balance interest of suppliers, retailers and consumers and citizen participation to ensure reliable countrywide supply of fuels. “We have been into risks and mitigations through stakeholders engagements to cover blind spots,” said Masima. He further said BOL has cordial working relationship with international oil companies on the new development, adding that the company is implementing a government decision to benefit more local companies from petroleum industry. Meanwhile, national Chief Energy Engineer, Baruti Regoeng said the new development will trim the dominance and prevalence of multinationals in the sector, creating investment opportunities for local companies. Regoeng said government is determined to strategically promote citizen owned companies in the petroleum sector. “Multinational oil companies will be barred from importing any petroleum products into Botswana,” said Regoeng, adding that the development is going to meet a lot of challenges.
“But we should not despair, we are stopping something and starting something to improve on it,” said Regoeng.
He further emphasized that BOL is not going to bend some of the rules to accommodate local companies but would rather tighten them. The implementation of the 90 percent import mandate will start next month, as pronounced by the Minister of Minerals and Energy in September 2023. The BOL is the national oil company incorporated in 2013 under the Companies Act ( 2008) and wholly owned by the government through the Ministry of Minerals and Energy ( MME). BOL manages state- owned strategic reserve facilities, strategic stocks, bulk storage, and distribution, and facilitating the participation of citizens in the petroleum industry value chain.