Southern Africas petroleum refining capacity is concentrated in South Africa, where four refineries have a combined 504,547 bbl/d distillation capacity. Other Southern African refineries are in Angola (Luanda, 39,000 bbl/d); Madagascar (Toamasina, 15,000 bbl/d); Tanzania (Dar es Salaam, 14,900 bbl/d) and Zambia (Ndola, 23,750 bbl/d).
In accordance with Black Economic Empowerment (BEE) policy, in which, black people have ownership in new and existing business, Shell is expected to sell a 25 percent stake in the South African Sapref refinery to a black-owned partner. In addition to Shell and BP, multinationals Caltex (Chevron), Engen, and Total are major participants in South Africas downstream petroleum markets. Several domestic firms are also involved, including black-owned firms Naledi Petroleum and Afric Oil. Worldwide Africa Investment Holdings (WAIH) owns 55 percent of Afric Oil, 51 percent of South African Zenex, and 20 percent of Engen.
In addition to the Luanda refinery, Angola is developing plans for a new 200,000-bbl/d refinery in the coastal city of Lobito. An estimated 50 percent of the products produced at the new refinery would be consumed domestically; the remaining 50 percent would be for export. Various firms have expressed interest in partnering with Sonangol in building the refinery, especially after Sonangol linked building the refinery to having upstream ownership in Blocks 15, 17 and 18. Sonangol hopes to have the refinery operational by 2009. Zambias Indeni refinery is currently operating at 80 percent capacity after having been closed due to mechanical problems. Over the next three years, a total of $65 million will go towards refinery upgrades of Indeni. In August 2006, Indeni is slated to undergo the first phase of refinery upgrades, which will cost $24 million. Meanwhile, Zambia will be forced to import refined fuel from South Africa, Tanzania and Mozambique to supply the countrys economically vital copper and cobalt mines and transport sector. Indeni is jointly owned by the Zambian government and Total.
In 2005, petroleum consumption in Southern Africa averaged 727,000 bbl/d. The vast majority of petroleum consumed in the region is imported; Angola and DRC are the only net exporters. Several countries in the region -- particularly Zimbabwe -- have experienced periodic, sometimes severe, petroleum shortages. However, in May 2006, Equatorial Guinea agreed to supply Zimbabwe with oil, which should ameliorate the countrys struggling economy. All of Botswanas refined oil needs are supplied by South Africa, except for a small supply to the western part of the country by Namibia. Namibia acquires 90 percent of its petroleum requirements from South Africa. Sasol was awarded a tender in September 2004 to supply Namibia for three years. Most of Malawis fuel imports are supplied via Tanzanian and South African ports, although additional sources of imports, via a pipeline from Mozambique, are also being developed.
The Comoros, Seychelles and Mauritius import most of their fuel energy requirements. The Indian Oil Corporation operates an 18,000-ton storage terminal on Mauritius and is planning to expand its presence there.
The 1,069-mile Tazama Pipeline transports crude from Dar es Salaam, Tanzania to Zambias Indeni refinery. The pipeline, jointly owned by the governments of Zambia (67 percent) and Tanzania (33 percent), has a capacity of 22,000 bbl/d. In October 2004, the Zambian government decided not to privatize the Tazama Pipeline due to the facilitys strategic importance to the national economy. Serious problems facing the Tazama Pipeline include vandalism and the deterioration of pumping equipment.
The Mozambique-Zimbabwe Petrozim Petroleum Products Pipeline runs from the port of Beira in Mozambique through Feruka, Zimbabwe to Msasa, located near Harare. Zimbabwe imports 80 percent of its petroleum through the pipeline. Zimbabwes Noczim is planning to construct an additional oil-product pipeline from Beira to Msasa to help meet Zimbabwes oil demand.