Botswana Oil Limited (BOL), Chief Executive Officer (CEO) Willie Mokgatlhe has revealed that the company plans to list on the Botswana Stock Exchange (BSE) to generate funds that will finance its expansion and infrastructure development projects. The listing is also expected to increase citizen participation in the petroleum industry and facilitate economic diversification.
Mokgatlhe further acknowledged that there are many benefits associated with listing on the BSE, among them the ability to raise capital.
“BSE is a platform where companies can raise capital to fund expansion projects to grow their value and maximize shareholder value,” he said.
The Ministry of Minerals, Energy and Water Resources (MMEWR) through the Department of Energy (DoE) in conjunction with BOL have developed a high-level CTL framework for Botswana. BOL also intends to undertake a number of key developments that are aimed at contributing to the wellbeing of Batswana; among them investment in pipelines, depots and exploration.
“BOL also intends to harness economic diversification through beneficiating the country’s vast coal resource by converting coal to liquid petroleum products as well as other by products, thereby creating jobs and reducing dependence on imports,” said Mokgatlhe.
He lauded government for playing a meaningful role by providing a conducive and enabling environment that will foster private sector growth.
“As a nation we need to collectively improve the country’s economic competitiveness,” he said.
The BOL CEO also revealed that government has proposed petro legislation that will facilitate an efficient manufacturing, wholesale and retail petroleum industry; as well as establishment of an environment that is conducive for efficient and commercially viable investment.
“It’s important for the country to diversify the economy and reduce its dependence on diamonds. Coals to liquids have the potential to achieve a significant positive impact on the economy,” said Mokgatlhe.
In that regard, he added, BOL is considering establishing a coal to liquid facility which will provide direct benefits in terms of local petroleum fuel supplies, improved security of fuel supply and national revenue earner. The project will also act as a foundation and stepping stone for significant socio economic benefits for Botswana as a result of inherent infrastructure development projects.
In its second year of operation, BOL made a profit before tax of P9.8 million, which was mainly driven by an increase in revenue as well as the sale of cleaner fuels to international oil companies.