Glencore, Vitol Bid for Stake in Zambia's Sole Oil Refinery
(Bloomberg) -- Glencore Plc and Vitol SA are among companies submitting bids for a stake in the Indeni Petroleum Refinery, Zambia’s only fuel processor, according to the southern African nation’s development agency.
Seven offers were made for a stake in the 20,000 barrel-a-day plant, including from the China Petroleum Technology & Development Corp., Philia Trading Pte Ltd, and a group including Avic International Holding Corp., Mwila Kapita, procurement specialist at the Zambia Development Agency, told reporters Friday in Lusaka, the capital.
The bid marks Glencore’s second effort to invest in a southern African refinery in less than six months. The company is seeking to buy Chevron Corp.’s South African unit, which includes a 110,000-barrel-a-day plant in Cape Town. China Petroleum & Chemical Corp. is also following a regulatory process to acquire the plant.
Zambia had twice extended bidding for the refinery, which was built in 1973. Last year, then-Energy Minister David Mabumba said the plant needs about $800 million in upgrades.
Bidders can expect feedback from Zambia’s Industrial Development Corp. in the next few weeks, said Moses Simbeye, senior portfolio analyst at the organization.
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