March 9, 2012 [Nmegi Online] - Construction of an oil storage facility at Tshele Hills in Kgatleng, which commenced in April 2010, is progressing well, the Minister of Minerals, Energy and Water Resources, Ponatshego Kedikilwe, told Parliament on Monday.
Answering a question from the Member of Parliament for Kgatleng East, Isaac Mabiletsa, Kedikilwe said the project was divided into two main components.
“The first phase is the construction of the tank farm and staff housing and the next phase is the associated infrastructure, including power connection, fencing, water, road and (a) rail spur,” he said.Power connection and fencing of the site was completed in 2010 and water connection in November 2011, while the erection of a second water tank on top of the hill is expected by April 2012. Kedikilwe said the tank farm was at pre-construction phase.
“The process is on-going to engage a construction supervising consultant,” he said, adding that the estimated construction period for the tank farm and staff housing was 24 months from July 2012. Road designs were on-going and expected to be completed by June 2012. With a fuel supply deal being signed with Petromoc of Mozambique and further negotiations for similar arrangements with Namibia and Tanzania, establishment a national oil company was advanced.
This state oil company, which will require an Act of Parliament, will take the form of a network of depots, storage facilities and supply routes supervised by headquarters that is likely to be in Gaborone.
The company is likely to take the form of a parastatal and is expected to procure petroleum products on behalf of the government and possibly the private sector as part of diversification of fuel sources and routes envisioned in NDP 10.
Its brief will include ensuring that strategic oil reserves are maintained and spearheading negotiations with other national oil companies towards Botswana’s diversification of fuel supply sources and routes.
