Botswana's President Seretse Khama Ian Khama on Tuesday launched Botswana Oil Limited (BOL), a 100 percent government owned petroleum company.

Petroleum products are important inputs for Botswana's mineral production and power generation, as they are supporting operations of the country's diamonds mines, said the president at the launch and brand reveal of the entity.

According to the president, Botswana's two diamond mines of Orapa and Jwaneng consume about 1.3 million liters of diesel per month. The emergency power supplies in Orapa comprising of two 45 MW of open cycle gas turbines consume an average of 22,000 litres of diesel per hour at full capacity.

"Without a continual and secure supply of petroleum products, our economy could be compromised," Khama said, adding that rather than relying solely on multinational oil companies, the government owned oil company would assure security of supply.

BOL was formed in 2013 and serves as an agent in the transformation of the oil industry. BOL is mandated to ensure security and efficiency of supply and primary distribution of petroleum products in Botswana; manage state-owned strategic fuel reserve facilities, strategic stocks as well as bulk storage and distribution; and facilitate meaningful citizen participation in the petroleum sector.

It is incorporated under the Companies Act of Botswana operating under the purview of the Ministry of Minerals, Energy and Water Resources (MMEWR).

Government officials have previously revealed Batswana will be allowed to purchase shares in BOL three years after it starts operations. The state oil company will spearhead negotiations with other oil companies to further diversify Botswana's oil sources and reduce over dependence in neighboring South Africa for the supply of fuel and other related products.

BOL is critical to Botswana's on-going efforts to diversify fuel routes and sources and has been in protracted negotiations with Mozambique and Namibia to source alternative oil supplies. Botswana is also exploring possibilities of importing crude from Nigeria through Walvis Bay. Endi

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