Zambia and Angola have signed a memorandum of understanding to construct an oil pipe line at an estimated cost of five billion United States Dollars.
Minister of Energy Matthew Nkhuwa says once the Angola- Zambia product pipeline project-AZOP – is complete it will facilitate for a significant reduction in the price of fuel.
He says government spends over one billion US dollars in the procurement of fuel annually because it is transported in trucks.
Mr. Nkhuwa says pipeline will see enhanced trade in oil, development of petroleum refinery infrastructure and capacity building for Zambia.
He further says government will announce an equity partner in the Indeni refinery before the end of November in order to recapitalize the refinery plant.
Mr. Nkhuwa was speaking during the signing ceremony with the Angolan delegation led by the Minister of Mineral Resources and Petroleum Diamantino Pedrol Azevedo.
Meanwhile, Dr Azevedo says the project will be beneficial for both countries as it will enhance trade.
Dr Azevedo says the Angolan government produces over one point five million barrels of oil per day and is looking into opening new oil exploration plants in order to increase its production.
The signing ceremony was witnessed by Angolan Ambassador to Zambia Balbina Dias Da Silva and Zambian Ambassador to Angola Laurence Chalungumana among others.