OIL company linked to vice-President Joyce Mujuru has joined hands with a local consortium to bid for all interests owned by BP and Shell Zimbabwe as Zanu PF leadership take advantage of the controversial indigenisation regulations.
A government agency, National Indigenisation and Economic Fund recently blocked the acquisition of the oil firm’s assets by two foreign companies.
The consortium, known as Positive Energy will be led by Mujurus’ oil firm Wedzera, which is run by Harare businessman Eric Nhodza and Downtown Petroleum is also part of the new consortium.
The establishment of Positive Energy will bring to three, companies that are keen to buy the BP and Shell Zimbabwe assets.
Other groups interested in buying BP and Shell Zimbabwe interests are Indigenous Petroleum Group of Zimbabwe and Fabrex.
“It is a consortium dominated by indigenous people and it’s all encompassing,” sources close to the goings said.
“There is also provision for a stake to be reserved for the current management. Much of the ground has already been covered.”
The US$16 million deal also involves buying out 15 percent interests currently held by BP and Shell’s senior management.
The sources said the consortium would tighten some loose ends today before making a formal bid later this week or early next week.
Mauritius-based Engen Holdings International had jointly made a bid with KenolKobil to buy BP and Shell Zimbabwe assets.
The NIEEF blocked the bid on the grounds that the shareholding after the transaction would not be consistent with the country’s empowerment laws.
The transaction had also attracted a strong opposition from black economic empowerment lobby groups, which felt the deal was in violation of the country’s empowerment laws.
NIEEF recommended that a consortium of indigenous people be considered.
Shell has been operating in Zimbabwe under a management contract with BP.
BP and Shell joint Zimbabwe operations employ about 400 people. Their Harare blending plant has capacity of 30 million litres per year.
Harare businessman, Eric Nhodza is the man running the successful Wedzera Petroleum on behalf of vice President Joyce Mujuru and her husband Retired General Solomon Mujuru.
Eric Nhodza is a holder of a Master of Laws In European Union Law (Commercial). He has extensive exposure to the world of banking, business, tourism, transport to name but a few.
He has undertaken research work and formulated invaluable Strategic, Economic and Financial theories for markets in developing countries.
