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Oil Sector: Madagascar Oil Seeks Partner

1 Novembre 2012 - lexpress.mu

Oil Sector: Madagascar Oil Seeks Partner

The results of the exploration work carried out on Tsimiroro are promising. The company must appeal to other investors for the next steps.

Oil flows Tsimiroro. As part of the celebration of the Day of Oil Tsimiroro, technicians Madagascar Oil Company have confirmed through a demonstration well before guests including, among others, ministry officials, parliamentarians, governments and the local population, as well as private sector representatives. That was yesterday, on the site of exploration. Since September, the cold production has indeed yielded one to six barrels per day per well. From the end of the year, steam injection will be carried out over a period of eighteen months. Various tests will be performed on the parameters to determine the commerciality of the project.

"We have here the result of eight years of work. The presence of oil in Madagascar is based on sound economic and technical basis. The presence of these three large tanks on the site marks a turning point in the history of oil, "said Laurie Hunter, CEO of Madagascar Oil.

Major works

The heavy oil produced during the pilot will actually stored in these tanks, which have a total capacity of 180,000 barrels. After marketability is justified, the company will seek permission from the state to begin construction. For this next step which is estimated starting date in 2014, the establishment of new partnerships necessary.

"For the construction phase should last about four years, it will take an investment of $ 1.5 billion. Madagascar Oil company can not bear it alone. We must look for partners, including majors to collaborate, "said Emma Ralijohn for its part, Deputy Managing Director of the company. "At each stage of the project, it was always important to find partners," she said. The construction phase will include, among others, the achievement of thousands of drilling, infrastructure steam injection, pipelines & shytres 1000 kilometer, port infrastructure. The Minister of Mines, Rajo Daniella Randriafeno agreed that progress of this project should attract new investors.

Pending marketing, parliamentarians have welcomed the rehabilitation of road infrastructure in the region with heavy oil Tsimi & shyroro. "Everyone knows that the state of our roads remains an obstacle to development in the region. It would be desirable to see that three highway to four lanes to be built with this heavy oil, "said CSE Pikulas Jonah.

 

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