Zambia Shortlists Glencore, China Petroleum for Refinery Stake
(Bloomberg) -- Zambia shortlisted five groups including Glencore Energy Ltd. and China Petroleum Technology & Development Corp. as possible candidates for a majority stake in the country’s sole oil refinery.
The other three groups on the list are Russia’s JSC Global Security, Sahara Energy Resources Ltd. and a joint-bid from Beijing Huiersanji Green Chem-Tech Co. Ltd and Avic International Holding Corp., Zambia’s Industrial Development Corp. said in an emailed statement on Monday. These groups will now be asked to submit their technical and financial proposals, it said.
Zambia is seeking to increase production at its Indeni Petroleum Refinery to help meet domestic demand for gasoline and diesel, currently estimated at 1.7 billion litres a year. The southern African nation had twice extended bidding for the 20,000 barrel-a-day refinery, which was built in 1973.
The IDC expects that a “strong strategic equity partner will upscale the production capacity of Indeni to a level that will meet the nation’s petroleum demand for the future,” it said.
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