Oxfam report faults govt on oil exploration deals on Lake Malawi

A damning consultancy report has faulted the government for questionable oil exploration contracts on Lake Malawi and its move to make the deals secret.

OXFAM Country Director, John Makina: Malawi will not benefit from oil exploration

The petroleum exploration on Lake Malawi report says the contract, which Malawi signed in May 2014, leaves a lot to be desired.

The report which is titled ‘Malawi’s troubled oil sector;  Licences, contracts and their implications’  was sanctioned by Oxfarm International and was done by a Canadian consultant.

It says the government and the people of Malawi stand to lose out in the whole oil exploration contracts as the government would get just five percent of the oil extracted from the lake.

“Officials spught to fast-track exploration activities ignoring to put in place a clear national place and to  revise the badly outdated Petroleum (Exploration and Production ) Act of 1983,” reads part of the report.

Oxfam Malawi Country director John Makina said looking at the contracts that were signed, it is clear that Malawi will not benefit.

“There is more that is going to the companies,” he said.

The report which analyses the initial allowacation of exploration licences and the signing of contracts for oil blocks 4,5 and 6 also wonders why the government is making the report a secret.

An official from the ministry of Energy, Cassius Chirambo trashed the report, saying most of its content leaves to be desired, describing it as a not balanced report.

Chirambo says views from the government were left out.

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7 years ago

Guys, let’s be serious. We do not live in exclusion with the rest of the world. Exploration is not extraction. The 5% on exploration is the same everywhere. In fact, the royalty rates vary from 3 to 5%. What you should be looking up to is how will the extraction agreements (Mining Development Agreements) look like. These agreements only come after the explorer gets convinced that he has discovered economically-viable oil reserves and would thus be willing to go to the next level i.e. actual extraction of the resource from the ground. That is where we would say we are… Read more »

7 years ago

Information bill has been signed into law. Malawians will demand to see the contracts and we will see how Government will respond. Such contracts are not supposed to be a secret at all. Zikukhudza a Malawife chonco its our right to know.

7 years ago


7 years ago

Dada Cassius Chirambo be honest, 5% is just too low.

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