Kuwaiti Independent Petroleum Group (IPG) said on November 12th that it is weighing investment in Zimbabwe’s downstream oil sector after renewing a supply pact with the country in late October.
An IPG spokesman said that: “IPG has extended a deal to supply oil to Zimbabwe for two years, and downstream investment opportunities are still under study.”
The deal was signed in Kuwait by Zimbabwean Energy and Mines Minister Sydney Sekeramayi in late October, but a formal announcement had been postponed until an IPG delegation finalized details in Zimbabwe.
IPG also signed a memorandum of understanding to finance and invest in the country’s oil industry, including the construction of storage farms and pipelines. The company, which supplies Zimbabwe with nearly 70 percent of its fuel needs, is to provide the country with 100,000 tones per month of oil and products under the new deal.
IPG had halted exports to Zimbabwe due to non-payment, but resumed supplies in August. The country had earlier been unable to cinch an oil deal worth $80 million with the Kuwaiti government, failing to demonstrate sufficient credit, and had to contend with fuel shortages after state oil importer NOCZIM lost its credit lines over a $180 million debt.