Agreement to benefit citizen-owned fuel companies
Leading diamond mining company Debswana Diamond Company and Botswana Oil Limited (BOL) have entered into a five-year strategic partnership valued at P8 billion. According to Debswana, the partnership is aimed at capacitating citizen-owned companies in the fuel supply value chain.
“Through the agreement, BOL will play the facilitatory role of handholding and assisting emerging citizen-owned fuel supply and fuel transportation companies to supply Debswana’s Jwaneng and Orapa Letlhakane Damtshaa (OLDM) mines with diesel and petrol for their operations,” says Debswana says in a statement. “This is part of Debswana’s Citizen Economic Empowerment Programme, which seeks to accelerate citizen participation in its supply chain.”
The agreement is also aimed at ensuring security of supply for Debswana operations, which are a mainstay of the Botswana economy. “Debswana procures approximately a 100 million litres of fuel per annum,” says the statement.
“As part of their mandate to facilitate citizen participation in the petroleum sector, BOL will under the agreement be obliged to transfer skills to citizen suppliers and transporters during the contract period and ensure delivery of competent and skilled citizen suppliers and transport companies upon completion of the agreement.”
The five-year partnership will also create opportunities for support services along the oil value chain such as trucks staging, truck stops, tyre services, wash bays, truck service, maintenance jobs and other related support activities for Batswana.
Said Debswana Acting Managing Director, Lynette Armstrong, commenting on the partnership: “This is a huge milestone for Debswana, especially for our ‘One Dream, One Team (ODOT)’ 2024 strategy which is very intentional about citizen participation. I am also proud to say that with this major step forward, we are well underway to realising our strategic ambitions under the Debswana Citizen Economic Empowerment Programme (CEEP).
“The programme has two breakthrough outcomes on creating and delivering shared citizen spend value of BWP20 billion and 20 000 jobs by 2024. This deal therefore forms part of the 2021 CEEP key breakthrough actions which include the continued localisation of Debswana’s long term contracts, the development of citizen participation in the supply and transportation of fuel, and delivering on a transformational plan that creates opportunities for citizen ownership participation in the Original Equipment Manufacturers (OEM) sector.”
Commenting on the partnership, the CEO of Botswana Oil, Meshack Tshekedi, noted: “For Botswana Oil Limited, this is a thrilling development that brings to life the third prong of the company’s mandate which emphasises the meaningful facilitation of citizens in the oil and gas industry through BOL’s CEE programme.
“Through this collaboration, BOL will play a faciliatory role by handholding citizen companies which will be selected to participate in the Debswana’s fuel value chain. As an anchor partner, BOL will shoulder the responsibility for the development of the citizen suppliers and ensure business continuity to Debswana’s operations.”
The project is scheduled to commence in August 2022 with BOL, through citizen-owned oil companies, expected to deliver their first consignment to Debswana on the 1st August 2022.