New National Oil Company of Botswana

Botswana Oil Limited (BOL), which began operating in 2013, was established in order to achieve Government’s broader economic objectives in the petroleum sector. Chief Executive Officer (CEO) Willie Mokgatlhe says, “Botswana Oil Limited’s mandate is to ensure security and efficiency of fuel supply into the country and facilitate meaningful citizen participation in the local petroleum business. Multinational oil companies are doing a good job in bringing new technologies and products into the country. However, we note that state participation through a State Owned entity in the petroleum sector is very crucial for economic diversification.”

A priority for Botswana is to introduce a sound regulatory framework. Willie Mokgatlhe points out, “We need to have a set of standards, clear rules and a Regulator whose primary mandate will be providing economic regulation for the Energy sector. Barring the unforeseen, the legislative and regulatory framework is expected to be in place by April 2015.”

Botswana’s current annual fuel consumption is around 1.2 billion litres, almost all of which is imported from South Africa. In order to reduce over reliance on a single source and route of fuel supply, Botswana Oil Limited aims to diversify its sources and routes. Willie Mokgatlhe notes, “Since Botswana has abundant coal resources estimated at over 212 billion tonnes, BOL is considering coal-to-liquid environmentally friendly technologies in an effort to safeguard security of fuel supplies at the same time creating opportunities for the private sector and the general populace.”

Boosting fuel storage capacity

Botswana Oil Limited’s role is currently limited to management of the storage facilities and limited procurement of petroleum products. “Without necessarily speaking on behalf of Government, it is worth noting that there are plans to increase the capacity through the development of additional storage facilities at Tshele Hills and Ghantsi. Upon completion, the facility will increase our reserves from the current 18 days of national consumption to about 60 days.” Mokgatlhe explains.

Foreseeing strong performance for the company, Willie Mokgatlhe says, “In the medium to long term, we see Botswana Oil Limited becoming a significant player in the Oil and Gas industry, taking the lead in the transformation of the sector. Additionally, 49% of the company shares will be floated on the stock exchange to allow citizens of Botswana to invest into the industry.”

With the Government introducing an enabling environment, the private sector will continue to play a meaningful role in the development of the petroleum sub-sector. As Willie Mokgatlhe concludes, “Batswana continue to explore opportunities that will create win-win solutions for the benefit of the general populace. We invite investors to choose Botswana as an investment destination of choice where their investment will be respected and protected through a whole host of incentives which ensures maximum return on investment. Botswana Oil Limited is amenable to forming partnerships with international entities which have the requisite expertise in the oil industry.”