Talks on Zambia, Saudi Arabia oil deal nears completion

Talks between the Zambian and Saudi Arabian government on the possibility of sealing an oil supply deal reached an advanced stage and the deal will soon be signed, the Times of Zambia reported Wednesday. Ministry of Mines, Energy and Water Development Permanent Secretary Charity Mwansa said details of the agreement will be unveiled once the contract had been signed. "I must say the negotiations on the fuel deal have greatly advanced and right now we are just about to sign a contract with Saudi Arabia. We are currently waiting for the contract which is expected in the country this week from Saudi Arabia," she was quoted as saying by the paper. The government, she said, was looking at a government-to- government deal that would enable it to get access cheap source of petroleum products.

The two governments started negotiations last year.

According to her, it was the government's intention to lower the pump prices of fuel hence its decision to secure cheaper sources from countries like Saudi Arabia amidst reduced prices of oil on the global market.

The government was also looking at other factors such as insurance and transport in order to reduce the pump prices of fuel further, she added.

The Zambian government recently announced a reduction in fuel pump prices following the reduction of the price of the commodity on the international market which currently stands at 58 U.S. dollars per barrel. Endi