Saturday, April 20, 2024

Government committed to ensuring that extensive exploration works in the Oil sector are carried out

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GOVERNMENT has said it remains committed to ensuring that extensive exploration works in the petroleum (and oil) sector are carried out because it is in a hurry to discover the rich mineral resource in Zambia.

Minister of Mines and Minerals Development Hon. Richard Musukwa said the government of His Excellency, President Edgar Chagwa Lungu is currently reviewing the Petroleum (exploration and production) Act No. 10 of 2008 and its subsidiary legislation in order to make investment in the Petroleum upstream sector attractive.

Speaking when he addressed journalists on the Status of Oil and Gas Exploration in Zambia earlier today, Minister Musukwa said it is in that regard that exploration works such as Seismic Data Acquisition to upgrade the data package have been upscaled to boost investment attraction in the sector.

He said his Ministry had demarcated a total of 38 petroleum exploration blocks covering Northern, Muchinga, Luapula, Southern, Western, North-Western and Central Provinces.
“A total of 12 blocks out of the 38 blocks have so far been granted exploration Licence from time to time through a competitive bidding process which involves a public advertisement in line with Section 9(1), Part II, of the Petroleum Act of 2008,” Hon. Musukwa said.

He revealed that the Ministry with the approval of the Petroleum Committee has so far conducted three licensing rounds between 2011 and 2016 in which a total of 12 blocks were licensed to six Companies.

Minister Musukwa has named the Companies as Geo Petroleum Limited (Block 31), Mafula Energy Limited (Block 32), Sargas Oil Limited (Block 54), Tiiseza Zambia Limited (Block 18), Barotse Petroleum Limited (Blocks 20 and 21) and ZCCM-IH (Blocks 1, 17, 27, 39, 44 and 52).

He said exploration works are at different stages in each block with others making substantial progress while some are still awaiting the necessary statutory approvals before they can commence exploration works.

Minister Musukwa further announced that substantial progress had been made with regard to exploration in blocks 31, 32 and 54 held by Geo Petroleum Limited, Mafula Energy Limited and Sargas Oil Limited, repectively.

“Surveys were undertaken in Block 31 which covers areas within Luapula and Northern Provinces to determine the presence of Geological Basins for possible Oil and Gas Accumulation. The results indicated the presence of two Geological Basins around Lakes Mweru and Tanganyika.”

He said Mafula Energy Limited had spent about $4 million United States Dollars on Oil and Gas exploration projects and Licence fees paid to government.

“This year, the Company working with collaborating partners intends to carry out further investments of about $30 Million United States Dollars on Seismic Data Acquisition and possibly drilling of exploration wells in Block 32 and other blocks in Zambia,” Hon. Musukwa revealed.

He added that more robust exploration works will soon be commenced by various licensed Companies in their respective blocks and the nation will continue being given periodic updates in that regard.

Meanwhile, Chief Geologist in the Department of Hydro Carbons Chibesa Kunda has said Oil drilling is a very expensive undertaking hence the need for a such vigorous approaches to ensure that they narrow down to a specific spot to save on Costs.

10 COMMENTS

  1. You can tell a lot by a man’s workstation and office…this former school teacher is just wasting taxpayers money he is useless even has a hifi music system in his office.

  2. This is excellent work. I am actually interested in how things will pan out and will be looking to partner with other local businesses to take advantage of this.

    Remember that those who are no longer zambian like upnd diasporans are not allowed near sensitive resources such as oil etc. This is what frustrates them. They lost their privileges when they moved to their slave drivers country

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  3. The most classic adage regarding trolling is, “Don’t feed the trolls.” Trolls seek out emotional responses and find provocation amusing, so replying to them or attempting to debate them will only make them troll more. By ignoring a troll completely, they will likely become frustrated and go somewhere else on the internet.

    You should try your best not to take anything trolls say seriously. No matter how poorly they behave, remember these people spend countless unproductive hours trying to make people mad. They’re not worth your time of day.

  4. Just chaos and lack of seriousness in this country!! We have been singing about oil exploration since KK’s time,to date we have not narrowed down to know whether we have exploitable resources or not! WHAT HAPPENED TO THE BLOCK THAT WAS GIVEN TULLOW,WHERE THEY SAID THERE WERE PROMISING RESULTS??

  5. Kabiyene uko! We have heard this story before during campaign. First give cheap fuel from Saudi Arabian then you can talk about exploration.

  6. Better do it quickly. Most countries are going towards the use of electric vehicles. We might have a very small market for oil if we don’t achieve this by 2025

  7. Oil extraction is not only expensive but also very destructive to the environment. Oil companies turned the Niger Delta into a poisonous area and forced many inhabitants to live under subhuman conditions. This should not happen in Zambia.

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