
GOVERNMENT has awarded the first petroleum exploration licence to a Zambian company, Barotse Petroleum Company, to explore oil and gas in Western Province.
And two other Zambian companies have successfully gone through to the second bidding round for petroleum exploration. The two are Majeetu, which bid for block 15 in North-Western Province, and Metprosol, block 34 in the Kafue Basin in Southern Province.
Barotse Petroleum Company is among the three Zambian companies which successfully bid for the petroleum blocks.
Speaking at a press briefing in Lusaka on January 14, Minister of Mines and Minerals Development Maxwell Mwale said the company has been given a licence after complying with stipulations in the statutory instrument.
“I now have the pleasure of signing the first licence to the Barotse Petroleum Company, which has fully paid all the fees outlined in the statutory instrument,” Mr Mwale said.
He said Government expects the company to start work now and move into their blocks as soon as the rainy season is over.
Mr Mwale said he is confident that other successful bidders will follow suit to obtain their licences.
He said the exploration companies would submit quarterly reports to his office from which updates will be released on the progress of the work in the mining sector.
Mr Mwale said after the second bidding, the ministry would no longer advertise for seven other oil and gas blocks because this requirement has been abolished.
He said companies interested in applying for Government-reserved blocks should apply through the petroleum technical committee.
Mr Mwale said Government is now developing modalities for oil and gas exploration in reserved blocks which will be completed before the end of March this year.
He said bidders in Western Province should not be distracted by the current confusion in the province because Government will institute measures to protect their interests.
One of the shareholders for Barotse Petroleum Companies, Clement Mundia, said he is happy the company has been given a licence after waiting for two years.
Mr Mundia said this will encourage local companies to take up the challenges of investing in the mining sector.
[Zambia Daily Mail]