Madagascar to licence 50-plus exploration blocks in 2015
Offshore exploration and exploitation of oil and natural gas reserves off the coastlines of East and Southern Africa is bubbling with potential new projects. This news on the licensing of around 50 exploration blocks in Madagascar adds new dimension and impetus to the phenomenon – and precedes the imminent announcement of the winners of the latest oil and gas bids in Tanzania. It also follows closely behind President Jacob Zuma's announcement that South Africa plans to drill about 30 deepwater oil and gas exploration wells in the next decade. Meanwhile, a recently-estimated 200-trillion cubic feet of natural gas discoveries off the coast of Cabo Delgado province in Mozambique await exploration. GK
By George Obulutsa
NAIROBI (Reuters) – Madagascar plans to issue licenses for three on-shore and up to 50 off-shore exploration blocks next year once parliament approves a new petroleum law, a senior energy ministry official said on Friday.
Madagascar, famed for its wildlife and eyed by foreign companies for its minerals and its hydrocarbon prospects, has struggled to court oil and mining giants since a coup in 2009, which also prompted international donors to cut off ties.
President Hery Rajaonarimampianina, who took office in January after a peaceful vote in December, has pledged to woo foreign investors and alleviate poverty which deepened after the 2009 coup when the economy slumped. The World Bank and other donors have since re-established ties and resumed aid flows.
"The new petroleum code will be submitted to parliament at the end of this year, or for its next ordinary session in May 2015," Pascal Velonarivo, Director General of Hydrocarbons at the Ministry of Hydrocarbons, Madagascar, told an east African oil and gas conference in the Kenyan capital Nairobi.
"After the adoption of the new petroleum code by parliament … Madagascar will launch a bid round."
Velonarivo later told reporters the offshore blocks to be offered for licensing will number 30 to 50, with another three onshore blocks to be auctioned.
"It must be next year," he said when asked about timing of the licensing round, adding all the required data for the blocks to be licensed had already been gathered.
Madagascar has a total 249 exploration blocks, of which 24 have so far been licensed to exploration companies.
Among the companies that hold licenses in Madagascar are Exxon Mobil, Tullow Oil, Madagascar Oil and Afren
Tanzania poised to pick latest bid winners
Meanwhile, Reuters reports from Dar Es Salaam that Tanzania – which has made big discoveries of natural gas off its southern coast – will pick the winners of its latest round of oil and gas bids before year-end.
"Winners of the successful bids should be announced this year."
Tanzania, a focus for natural gas exploration, received five bids in May for four of the eight oil and gas blocks it offered in its fourth offshore licensing round. In some of the blocks there were joint bids.
ExxonMobil, Statoil, Russian gas producer Gazprom and state-run Chinese offshore oil and gas producer CNOOC Ltd are among companies that submitted bids.
Abu Dhabi state-owned investment fund Mubadala and another United Arab Emirates firm, Ras Al Khaimah Gas LLC, also put forward bids.
Tanzania, had offered seven deep-sea offshore blocks and one block in Lake Tanganyika.
Andilile also said the government had raised its estimate of recoverable natural gas resources to up to 53.2 trillion cubic feet (tcf) from 46.5 tcf previously following recent major discoveries offshore south of the country.
Tanzania has so far signed at least 25 production sharing agreements (PSAs) with some 17 international energy companies.
Winners of the latest bidding round would be subjected to new PSA terms introduced in November that experts said toughen some of the conditions for energy firms seeking to explore and develop the nation's big gas prospects.