Madagascar offshore tenders suspended

Madagascar's government has suspended tenders for 225 offshore oil blocks until further notice, the country's mines and hydrocarbons minister said.

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By Alain Iloniaina

Antananarivo - Madagascar's government has suspended tenders for 225 offshore oil blocks until further notice, the country's mines and hydrocarbons minister said.

Minister Mamy Ratovomalala told reporters late on Thursday there had been plans to launch tenders for the blocks in the Morondava basin, one of the three main basins along the Indian Ocean island's western coast.

Foreign investors are showing strong interest in Madagascar's untapped oil reserves, where one field alone holds estimated recoverable reserves of 2.5 billion barrels - enough to put the country within reach of the top 30 oil producers.

However, exploration has been hampered by the political crisis that has dogged the world's fourth largest island since President Andry Rajoelina ousted incumbent Marc Ravalomanana with the help of dissident soldiers in 2009.

“The Office of National Mines and Strategic Industries had suggested pressing ahead but the president of the transition and I decided ... there were no grounds to rush,” Ratovomalala said.

A roadmap to end the political crisis, backed by international mediators, stipulates that the transitional government headed by Rajoelina should refrain from making new long-term commitments until an election is held.

The Southern African Development Community (SADC) recommended last month that Rajoelina be recognised as interim president until elections later this year, although the main opposition leaders remain opposed to the plan.

“We have decided to clarify the current situation before passing to the next stage, as is also the case for existing contracts,” the minister said.

Madagascar comprises five basins totalling 320,000 square kilometres (123,550 miles).

The most important are Ambilobe, Majunga and Morondava along the western coast. All three share a common geological history and the structures are similar to those off Angola and Nigeria.

The remaining two basins, at Cap Sainte Marie on the south coast and Ile Sainte Marie on the north eastern coast are smaller and poorly understood.

Madagascar said in October that France's Total was on target to start producing heavy oil at the onshore Bemolanga oilfield by 2019 and Houston-based Madagascar Oil could see production by 2015 at a second heavy oil project at Tsimiroro. - Reuters

Source: http://www.iol.co.za/madagascar-offshore-tenders-suspended-1.1036220

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