Maravi

Govt reopens oil exploration bids

Govt reopens oil exploration bids
Written by Chiwoyu Sinyangwe
Wednesday, May 20, 2009 11:12:46 PM

GOVERNMENT is this week expected to re-open bids for exploration of petroleum and gas following the conclusion of the framework under which firms will be invited.
Mines minister Maxwell Mwale who disclosed this last week said the geological survey department at his ministry had completed its work and was currently working out on the bid documentation to invite interested investors to carry out oil and gas explorations in the country.

The government almost two years ago suspended the bidding process for the exploration of gas and oil in North Western Province, citing inadequacies in the oil exploration and Production Act of 1985, which has since been amended.

This was in a view to protect the resources from being exploited to the disadvantage of the nation.

And Mwale said the bidding document being worked on by the petroleum committee would be based on the positive results obtained from the geological survey department’s explorations which used a technique called microbial prospecting for oil and gas in identified blocks in North Western, Western and Eastern provinces.

According to geological data, microbial prospection for oil and gas is a surface exploration technology based on detection of anomalies in microbial distribution in soil samples.

Microbial prospection is a unique, stand-alone method which has proved itself effective even in complex geological reservoir conditions.

Its effective application and the high level of accuracy attained is the result of many years of practical experience and the use of specialised microbiological techniques to detect the presence of various groups of methane, propane and butane-oxidising microorganisms can reliably differentiate between prospective and non-prospective areas, as well as between oil and gas reservoirs.

“The petroleum committee was meeting on Tuesday [last week] just to see how soon we can place adverts in the papers and start inviting the would be explorations companies into our country and start doing detailed exploration work,” Mwale said.

“…under the geological survey department which is under the ministry of mines, there were preliminary wide works carried out in terms of petroleum explorations and they used a technique called microbial prospecting for oil and gas.

With that technique which we are well informed has got 90 per cent success rate, gave quite very positive results in North Western, Western and Eastern provinces. So, we have demarcated some blocks in these provinces for which we should be inviting bidders…including local companies, those who have the capacity to engage in this activity to bid for those blocks and to explore for petroleum and gas. We are anticipating that within a few weeks, we shall place adverts in the local and foreign media inviting for companies who have experience in that area [petroleum and gas exploration].”

The country first started prospecting for oil and gas in early 2007 after some suspected cases of gas in some parts of the country were reported, with North-western province topping the list.

From the time the investigations started, close to 200 soil samples were collected, whose laboratory results had proved to be very positive for gas and oil.

And Mwale has revealed that Luanshya Copper Mines (LCM) ceased operations due to differences between former shareholders for the mine and not the collapsed international copper price.

“In terms of LCM, the official position is that it was due to the price downturn.

But there is also unofficial position which is…that the difference between the shareholders,” Mwale said. “And in fact, they wanted to get back into Luanshya after one shareholder exited from that partnership but really it is just that there were not forthright in terms of telling us what was the problem [was] and in fact, if they had given a timeframe…for example if they had opted to get back into Luanshya by this February, the community in Luanshya would have been more than happy to see them.”

LCM which had been placed under care and maintenance in the last five months was owned by Bein Stein Resources Group and International Minerals Resources. The two companies also suspended the $354 million Mulyashi copper project, which was expected to start producing 60,000 tonnes of copper in 2010. China’s NFCA has since been selected by the government to take over operations of LCM.

Bein Stein Resources Group and International Minerals Resources also jointly owned the country’s largest cobalt producer, Chambishi Metals Plc, which also closed, rendering 900 workers unemployed.

However, later on the LCM shareholders dramatically announced that they would maintain and reopen Chambishi Metals Plc after securing vital ore input from Democratic Republic of Congo as well as other mining companies on the Copperbelt.

Labels: FUEL, MINING, OIL

posted by MrK @ 10:15 PM