Malawi awards oil licences to two more firms

Malawi has stepped up the hunt for oil in Lake Malawi after awarding exploration licences to two firms amid tensions with Tanzania over the lake.

But government says the two companies will not conduct oil exploration in disputed waters.

The companies awarded the licences are RAK GAS of Saudi Arabia and Pacific Oil of Singapore.

Government divided the lake into six parts called blocks. The Saudi company will take up blocks 4 and 5 while Pacific Oil has been awarded block 6.

Block one, which lies at the tip of the lake, was awarded to South African oil and gas company SacOil while blocks 2 and 3 in the middle of the lake went to United Kingdom firm Surestream.

Spokesperson for the Ministry of Foreign Affairs Quent Kalichero said the awarding of the licences will not affect the dispute over the lake if the companies stay clear of the contested parts of the water body.

“There is nothing wrong with the awarding of the licenses. Discussions are underway on the dispute,” said Kalichero.

Ministry of Mining spokesperson Levy Undi confirmed that RAK GAS and Pacific Oil submitted applications for exploration licences and a recommendation was made to grant them the licences.

“The licensing committee at its sitting recommended that RAK GAS be awarded block 4 and 5 while Pacific Oil was recommended to be awarded block 6,” he said.

Undi said the companies are expected to begin exploration for oil once the licences have been issued.

“They should start exploration as soon as they are ready and have fulfilled all the statutory requirements such as the Environmental Impact Assessment (EIA),” he said.

The Sadc Forum for Former Heads of State and Government is mediating the longstanding border dispute over the lake.