The BOL supply strategy focuses on diversifying sources and routes of fuel supply, with plans to source from different countries sharing borders with Botswana, including Mozambique and Namibia. Diversification of sources and routes will mitigate the concentration risk associated with having a single source of supply of product and lead to improved security of supply for the country.
BOL is desirous of a cost optimal model of petroleum supply into Botswana. The model is envisaged to ensure that volumes sourced from Namibia are delivered and consumed in the western corridor of Botswana (Ghanzi-Shakawe), volumes sourced through or from South Africa are consumed in the southern part of Botswana while volumes sourced from Mozambique are delivered and consumed in the northern part of Botswana.
Botswana volumes are estimated to be consumed in the following percentages across the three consumption envelopes as described above, southern consumption envelope 57%, northern consumption envelope 35% while the western consumption envelope is estimated to consume about 8% of the country demand per month. The ultimate objective is for Botswana to cost efficiently source these volumes from Namibia, Mozambique, and South Africa.
As the national oil company owned 100% by the Government of Botswana, BOL’s procurement of goods and services is guided by the principles of public procurement as enshrined in the PPADB guidelines. Our key objective is to ensure equal opportunity, fairness as well as transparency throughout our sourcing and procurement processes. Our default method of procurement, therefore, is always Request for Quotation (RFQ) or Tender based.
Citizen Facilitation
On a need basis, BOL procures petroleum products and services through Citizen Owned Oil Companies (COOCs). This may be done through open or closed tenders or RFQ’s as guided by the procurement policy of BOL. BOL also targets citizens for transportation of products as a way of ensuring capacity building and facilitating citizen participation in the oil and gas industry.
When sourcing petroleum products, BOL is influenced by price competitiveness of products as the fuel market is regulated and any procurement above the guiding regulated structure mean a loss to the business.
Health, Safety, Security and Environment measures are the cornerstone of doing business in this industry, therefore to ensure the Health, Safety, Security and protection to the environment while doing business we pay strict attention to the following;
- Bulk Vehicle compliance inspections
- Bulk Vehicles Operators compliance
- Contract Management
- Incidents Reporting and Management
Sale of Fuel Products
BOL has been open for sale of product since its inception in March 2014 to support local Oil Marketing Companies (OMCs) in ensuring a continuous and undisrupted supply of petroleum products to Botswana. BOL sells fuel product to OMCs registered and operating in Botswana, through a structured manner that is based on pre-planning and signed off commitments. Although BOL supports OMCs that buy on a planned and structured way, the Company will facilitate sales to OMCs during a supply disruption or crisis. During a supply challenge or crisis, BOL will invoke the Release Strategy Document/ Policy that guides the authorisation and release of strategic stock for use.