Form associations, small oil marketing companies told
SMALL oil marketing companies must form a national association to stand a greater chance of participating in fuel imports, the Energy Forum Zambia (EFZ) has said.
Speaking to the Daily Nation yesterday, EFZ chairperson Johnstone Chikwanda said there was need for small local oil companies to forge alliances to enable them speak with one voice and lobby for greater inclusion.
“It is easier for financiers to leverage funding through a national association compared to funding a small oil company in isolation.
This is because small oil companies are beset with significant challenges some of which could only be resolved through the establishment of a national association.
“The establishment of a national association would be in line with government policy for local empowerment through establishment of cooperatives.
All things being equal, it could be preferable for Government to award a fuel tender to a consortium of 20 small oil companies as this represents broader economic empowerment instead of awarding to one small oil company,” Mr. Chikwanda said.
He said plural economic empowerment was far much better than singular empowerment hence the need to network and form an association that would make work easier not just for Government, but the Energy Regulation Board (ERB) and the oil companies themselves. “Small oil companies need to take a leaf from the Tanker Drivers Association or the Truckers Association of Zambia who have emerged into a formidable association and stronger voice compared to perpetuating “lone wolf” approaches.
“In addition small oil companies must strive to bench mark against best industry practice as being demonstrated by some industry statesmen.
Industry statesmen have been around the block decades of years and so much to offer in showing the way and how to remain resilient.
“It will be a very big challenge to fully implement the petroleum sector reforms in the absence of compelling oil companies to form an association,” he said.
Meanwhile, Mr. Chikwanda has appealed to Government to establish a pipeline master plan which could guide how it intended to roll out the fuel pipelines in the country in future.
“We have read that there will be a fuel pipe line from Tanzania to Ndola running parallel to the current TAZAMA pipeline.
But we have also read that there will be another pipeline from Lobito Bay in Angola to Zambia.
Government need to be cautious when balancing projects of this magnitude especially that we still want to keep the refinery,” he warned.