By Christopher Makaza
Following Cabinet`s approval for a merger of State owned petroleum companies, the responsible ministries are at an advanced stage in establishing a Technical Committee to that effect, Harare Post has learnt.
According to the 38th Cabinet meeting of 29 October, the petroleum companies to be emerged are Petrotrade, Central Mechanical and Equipment Department (CMED), and Genesis Energy.
A source within Petrotrade revealed that the merger is part of the on-going State Enterprises Reform Programme (SERP). He said the Petroleum companies were going to be merged under Petrotrade.
“Cabinet directed Ministries of Finance and Economic Development, Energy and Power Development, and Transport and Infrastructural Development to facilitate the implementation of that resolution. The Ministers are going to establish a Technical Committee to facilitate the implementation of that resolution,” he said.
According to the contact, the Technical Committee will craft the terms of reference aimed at expanding the scope of work for the Transaction Advisor, CBZ Advisory Services and Manokero Attorneys to include consolidation of the companies and ultimate partial privatisation of Petrotrade.
This Cabinet decision is consistent with the process underway of partial privatisation of Petrotrade through engagement of suitable strategic partners.
So far Independent Petroleum Group of Kuwait, Sotic International of Mauritius and Abu Dhabi National Oil Company (ADNOC), have been proposed as potential strategic partners for Petrotrade.
