INDUSTRY

1st environmental permit for Madagascar Oil

 

Stewart Ahmet, Managing Director of Madagascar Oil finally received officially  its  environmental permit last Thursday.  After years of careful environmental impact assessment, the Environmental National Office finally delivered the first environmental permit with its Environmental Management Plan (PGE)  for a petroleum project.  

 

Stewart Ahmet ensured a zero impact of exploration and exploitation activities of the company on local population in terms of water. An element, the company is drawing at 250 meters deep.

 

The price decline of oil has rendered investors in this sector reluctant to pursue what had been started. For Madagascar Oil,  only two out of the four important shareholders only confirm their wish to invest more funds to bear costs of production activity provided that the company leaves the London Stock Exchange :   a hanging decision, waiting for a voting majority of at least  75 % of all shareholders. 

 

However, the refining of Tsimiroro heavy oil which isn’t a conventional one requires  expensive technology so more investments. If not, a  refining in South Africa or India is to envisage.    Being at its first stage of production, the company operating in Tsimiroro already possess a stock of 140 000 barrils and plans to produce 1000 barrels per day. 

 

To adress this evidence  of financial issue,  the company is seeking  local customers. Among them, the Jirama with its 40 Mw power station in Mandroseza should be its greatest local oil buyer but this imply the total rehabilitation of the National Highway I Bis to transport  the product to Antananarivo.

 

Totalizing taxes, the «  Profil oil » and different hydrocarbon royalties, Malagasy Government will perceive 50 % of the total income from the production.

Published on Monday, 22 February 2016 06:25
Written by F. RAFIDIHARINIRINA