Gunvor oil drags Zambia to International court

The Permanent Court of Arbitration (PCA) in the Hague has started hearing the matter in which Gunvor Oil of South Africa has sued the Zambian government.

Brief details are that in 2015, Zambia ordered 100,000 metric tonnes of crude oil from Gunvor but when the oil arrived at the port in Dar-es-Salaam, Zambia refused to accept it saying it was contaminated. Gunvor on the other hand refused to take back the oil, insisting that it was according to the specifications requested by the Ministry of Energy.

While the Ministry of Energy and Gunvor were arguing, the company that was hired to ship the oil was charging US$20, 000 each and every day the oil remained in the tanker. It is believed that this (demurrage) bill, plus original contract fee, went to US$10 million. Gunvor wants Zambia to pay this charge plus the cost of the crude oil and now legal fees.

Zambia is represented by Attorney General Likando Kalaluka, Joe Simachela, Francis Mwale and Yesmin Sebah.

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