14 Mar 2016

Batswana have been challenged to play a role in the petroleum sector. 

Botswana Oil Limited chief executive officer, Mr Willie Mokgatle said this when giving an overview and update of Botswana Oil Limited at a media round table session meant to share thoughts and exchange ideas with journalists to ensure timely update with society as they deliver on their mandate.

He said the introduction of Botswana Oil was aimed at facilitating the transition to ensure that Batswana benefit from the sector. 

Mr Mokgatle said Botswana Oil Limited was a private company  that drives the government agenda in terms of the transformation of the industry.

“The current value chain is controlled by multinationals even though we have had good service from them. Notwithstanding that, they have certainly done well as we have had good service and good products coming into the country,” he said.

In response to questions, Mr Mokgatle said the economy affects petroleum prices with regard to the law of supply and demand, market sentiments and politics.

“In Botswana prices are regulated by the Ministry of Trade and Industry under the Control of Goods, Prices and Other Charges Act. 

Through this act, the government decides whether to increase, lower or leave the prices as they are looking at the prices in the market place,” he said.

Mr Mokgatle said Botswana Oil continues to serve customers as per their mandate of supplying the product into the market at cost recovery prices.

“We are unable to subsidise as the intention is to enable investors to see the opportunities in the space and facilitate their participation,” he said.

He said as markets were never perfect, it was crucial for the government to intervene to ensure that consumers become the winners. 

“In the petroleum space, intervention is driven by the need to make sure that there is continuous supply of the product, and that the industry transforms to include the local player,” he said.

“There is a shortage in terms of investment in the sector especially around storage and logistics and we continue to look at setting up storage,” he said.

“The country is working towards diversifying its economy through coal beneficiation and associated products to ensure self-sufficiency. 

An opportunity exists for Botswana to export her coal through environmentally friendly technologies and the Ministry of Minerals, Energy and Water Resources through the Department of Energy in conjunction with Botswana Oil have developed a high level framework for Botswana,” he highlighted. 

He said they have plans which include the introduction of a mobile station, expansion of the Francistown and Gaborone depot and shareholding interests or equity participation.  ENDS