Page 15 - AfrOil Week 45 2021

AfrOil PROJECTS & COMPANIES AfrOil

The Indeni refinery has a capacity of 24,000 bpd (Photo: IDC Zambia)
The Indeni plant has been idle for nearly a year. countries and improving fuel supply security for
It suspended operations in December 2020 to the latter.
begin a turnaround maintenance programme The deal signed between Angolan Minister
that was supposed to be completed within a of Mineral Resources and Petroleum Diaman-
month. However, it has had to revise its timeline tino Azevedo and Zambian Minister of Energy
in light of persistent technical and financial chal- Mathew Nkuwa will see the two sides carry out
lenges that prevented a late restart, missing one feasibility studies on the pipeline, a project that
deadline in April of this year and then missing may take up to two years to complete. Follow-
another the following September. ing the study which has been budgeted at up to
In early 2019, the Zambian Development $2bn, Luanda and Lusaka will discuss taking a
Agency (ZDA) issued an invitation to interested final investment decision.
parties to take up a majority stake in Indeni, with The Angola-Zambia Oil Pipeline (AZOP),
the ultimate objective of upgrading the plant the plans for which have gone through numer-
and improving the output and efficiency of its ous iterations, is now expected to cost around
operations. $5bn, roughly double the figure quoted around
Zambia is not currently an oil producer, and a decade ago.
the Indeni refinery depends on crude imported Also known as the Refined Petroleum Mul-
via the Tazama pipeline, which has a capacity of ti-Product and Natural Gas Pipeline Project
22,000 bpd. The pipeline originates in Tanzania’s (AZOP), it is expected to run 1,400 km through
main port, Dar Es Salaam, and is 1,710 km long. the so-called Lobito Corridor, connecting the
It has been in operation since 1969. planned Lobito refinery in the coastal Benguela
In May, the governments of Angola and Province to the Zambian capital Lusaka. The
Zambia signed a memorandum of understand- link is expected to have a throughput capac-
ing (MoU) to carry out studies for the construc- ity of 100,000 barrels of oil equivalent per day
tion of a refined product pipeline linking the two (boepd), comprising gasoline, diesel and gas. ™

NEWS IN BRIEF

INVESTMENT stimulate investment in the oil and gas industry 5 Chapters, 319 Sections, and 8 Schedules deal-
in Nigeria. The Executive Secretary made the ing with Rights of Pre-emption; Incorporated
PIA seen stimulating assertion at the Association of Energy Corre- Joint Ventures; Domestic Best Price, and Pricing
spondents of Nigeria (NAEC) 2021 Strategic Framework.
investment in Nigeria’s International Annual Conference held recently the formation of NNPC Limited, its Functions;
According to him, the PIA will bring about
in Lagos.
oil and gas industry and Evaluation, Tunde Adelana, he said the PIA Operations; Fiscals, Taxes, and Royalties; and
Speaking through the Director, Monitoring Gas Flare and Gas Infrastructure; Midstream
The Executive Secretary of the Nigerian Con- will foster the development of critical infrastruc- Host Community Development with a bid to
tent Development and Monitoring Board ture and enhance the utilisation of Gas resources engage the business of renewables. Wabote
(NCDMB), Simbi Wabote has stated that the for national development. Engr. Wabote stated noted that the PIA Petroleum Profits Tax (PPT)
Petroleum Industry Act (PIA) 2021 will enable that the PIA provides legal governance, regu- replaces the National Hydrocarbon Tax, along-
the development of host communities, reduce latory and fiscal framework for the oil and gas side royalties reduced for onshore areas, shallow
funding pressure on Government, boost capac- industry in Nigeria, and development of Host water, deep offshore and frontier basins, and
ity development in identified skills gaps, and Communities. The Act, he further said, contains natural gas.

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