Malawi stops oil, gas exploration: RakGas gets support

November 20, 2014 Hudson Mphande - Nyasa Times 26 Comments

Malawi government has ordered all companies involved in oil and gas exploration in the country to immediately stop their operations until government scrutinizes how exploration licenses were granted by the former administrations which included that of Joyce Banda and of Bingu wa Mutharika.

Botolo: Stop exploration
Botolo: Stop exploration

Ironically, a balk of the exploration licenses was granted during the time of Bingu wa Mutharika with his Democratic Progressive Party (DPP) which is now back in government under his younger brother Arthur Peter Mutharika.

In a statement released by the country’s Ministry of Natural Resources, Energy and Mining the Malawi Government says that the review of the licenses and agreements is to ensure that they are “for the benefit of the people of Malawi and were done in accordance with all the relevant laws of the country.”

The statement has been signed by Secretary for Natural Resources, Energy and Mining Ben Botolo.

“I therefore give notice to all companies that are involved in oil and gas exploration in Malawi to immediately cease all operations in relation to the granted oil and gas exploration licences until the review that is currently underway, regarding the manner and the procedures that were followed is finalized,” says Botolo.

He adds: “This will allow Government to thoroughly scrutinize and review each and every License and Agreement that was issued and signed.”

The order comes amidst an outcry from the majority of Malawians that despite the country having a lot of natural resources which include minerals and now oil and gas, it is only a few and particularly those in high offices who benefit from the proceeds of such resources.

Meanwhile, United Arab Emirates (UAE) firm, RakGas, has gained support from local communities as it gears to start preliminary oil exploration activities in Malawian districts under Block Five.

Chimwemwe Chikuse, a RakGas official, explained that the firm intends to have a strong partnership with communities they will be operating in and expressed support for community involvement in various agreements pertaining to resources.

Through the Department of Mines and District Councils, the company engaged community leaders comprising chiefs, councilors and members of Parliament (MPs) in Mulanje, Machinga, Zomba, Chiradzulu, Thyolo and was later this week expected to interact with local leaders in Phalombe and Blantyre—all of which fall under Block 5.

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26 replies on “Malawi stops oil, gas exploration: RakGas gets support”

  1. The award of natural resources should be made and approved by parliament so all malawian interest are catered for, or else this oil is not going to benefit us,

  2. What a coincidence. The president says the whole lake is ours and then a minister stops oil exploration. Remember Tanzania!!!

  3. This is sending a wrong message to investors that Malawi is a risky destination to invest in. If government changes, the new one can just wake up and tell you to leave. Mining is along term investment so no serious minor will risk his money on such risky destinations.

  4. BUT LET US NOT TRUST BEN BOTOLO 100% UNTIL WE SEE THE END RESULT OF DIS MOVE.CLENCHED FIST,LET US BE SKEPTICAL UNTIL WE SEE WERE HE IS LEADING US.YES! MALAWI BELIEVE ME

  5. I DEMAND THAT PARLIAMENT LOOK INTO ALL MINERAL/GAS CONTRACTS.PUT TO SCRUTINY AND DEBATE FUTURE BENEFITS TO MALAWI.ITS NOT JUST COMUNITY JOB OPORTUNITIES AND MEAGER SOCIAL RESPONSIBILITIES.THD MAIN THING SHOULD BE ABOUT MALAWI HAVING AT LEAST 51 %SHARE MALAWIANS OPEN UP YO EYES.BE LIKE BOTSWANA.PRECEDENCE HAS SHOWN US DAT LATE BINGU WAMTHARIKA MADE KAYEREKERA CONTRACT “A SECRETE”AS A RESULT MALAWI GOT PEANUT SHARE OF 15%.HOLDING ON KAYEREKERA.SINCE WHEN DOES A BEGGER GET LIONS SHARE?I MEAN INVESTORS BEG TO INVEST IN A NATION ;THEY DO NOT DEMANT TO INVEST-DEY BEG SO DEY MUST DANCE TO OUR TUNES AND NOT VICE VERSA.OR ELSE U WIL HAVE MINES BUT STIL DEPEND ON YO SEASONAL TOBACO. I REST MA CASE.SMEL DE COFFEE

  7. No wonder no one wants to come and invest in Malawi. Wasn’t it Mutharika who was asking for companies to invest in Malawi. Successive governments must honour commitments made by predecessors.

  14. Hope this stoppage is not simply to align DDP leaders to siphoning money and demanding shares from the companies. Malawi has evil and greedy leaders, they don’t care about the poor majority.

  16. Koma zinthu zathina ndithu mboma. No aid yazunguza ubongo. I hope the govt us not going to be a victim in this especially this time when things r tough. Mumakokota ma reserve thinking business as usual. I hope soon timva the govt wanting to know how Mulli was being awrded business contracts too.

  17. DPP regime awarded 2 licences to Surestream the rest was the works of PP under Kalindekafe. Rak Gas and Sac Oil we know paid him handsomely and now we hear Sac Oil has no funds to undertake the project. Did the Minustry not carry out any due diligence to ascertain whether these companies had the financial capability to take on these project.

  18. I agree with the government position. The only skepticism is how the companies that have spent a lot of money in exploration process will swallow the new development. You wonder how the contracts were framed.

  22. Cholinga ndi choti anthui apangenso apply so that mutenge amene mukufuna inu basi thus the reason of stopping them.

    1. Already has occurred in Nigeria $13billion yes billions of dollars disappeared in thin air like evaporation.

      Mark 13:23

      Mathew 24:23

  24. It is not just scrutinising what is in the agreement but making them public. Malawi is for us Malawians and not politicians who are here today no where tomorrow. Do blindfold and then tell us that all is well. We want to know what is there for us. Government is our agent and not the other way round. Tell us Malawians want you have agreed and allow us to have a say. Full stop. BAsi!

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