Govt To Assume Full Ownership Of Feruka-Harare Pipeline
State-owned National Oil Infrastructure Company of Zimbabwe (NOIC) has been given the green light to assume full ownership of the Feruka-Harare pipeline by the Competition and Tariffs Commission (CTC).
This comes after NOIC has reportedly acquired Lonmin’s 50% shareholding in Petrozim Line (Private) Limited (Petrozim/PZL).
The Feruka-Harare pipeline is owned and operated by Petrozim. The company holds exclusive rights to pump fuel from Beira to Zimbabwe.
In an interview with Newsday, CTC director Ellen Ruparanganda confirmed that NOIC is considering the option of buying all Petrozim shares. She said:
NOIC entered into a joint venture (JV) agreement with Lonmin on 30 September 1988, which detailed the formation, control, operation and objectives of a JV company — Petrozim Line.
NOIC had the option to purchase all shares in Petrozim Line owned by Lonmin and is now exercising the option.
As a result of this transaction, NOIC will have 100% ownership of PZL and thereby having sole control of the pipeline and storage facilities managed by PZL.
The transaction was classified as a vertical merger and was approved subject to the condition that NOIC maintains the pumping schedules of fuel in a manner that promotes competition among fuel retailers.
Ruparanganda said that ownership of a strategic asset by the government is key to increasing revenues and attracting investors into the country.
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