Speed Up Oil exploration, Investors Urged
AS the demand for energy increases around the world, Zambia has appealed to investors to speed up exploration and possible drilling of oil, in a move that could enrich the country and its people, according to Minister of Mines, Energy and Water Development Christopher Yaluma.
Mr Yaluma was speaking here during a road show aimed at marketing Zambia as the next best investment frontier in Africa.
“Apart from copper, the country has significant deposits of manganese, zinc, uranium, coal, limestone and phosphate all waiting to be exploited,” he said in a presentation.
Specifically, the minister told investors that the energy minerals in Zambia include “…coal bed methane and petroleum potential which can be considered unexploited” as renewable energy utilisation continues to remain “negligible” in Zambia.
Mr Yaluma feels the next biggest thing international investors in conjunction with the government must look at is to pump money into petroleum.
So far, according to Mr Yaluma’s well-received pitch here, potential investors and partners must look 43 blocks of oil and gas that have been set aside or demarcated for exploration, which has not taken place yet.
Mr Yaluma said 11 potential oil blocks were licensed last year by Government with 26 still remaining to be put up for tender, while some six other blocks await partners as Zambia targets to become a middle income country by 2030.
There are presently 86 Middle Income Countries (MIC) that include China and Egypt, which have slowly slipped off the low income bracket.
MIC people have more money than people in low income countries such as Zambia, whose people survive on less than US$2 per day for all their basic needs, according to World Bank studies.
Zambia’s quest to become an oil-producing country has probably been heightened by increasing mining activities that have exerted further pressure on power needs.
“Demand for power has risen from 1,100 mega watts in 2001 to 1,500 megawatts by 2011,” Mr Yaluma said adding “the base load has been growing at a rate of 100 megawatts per year.”
If oil and gas exploration is accelerated and the commodity is actually drilled, Zambia could join oil-producing countries in Africa such as Ghana, which discovered oil in 2009 at Cape Three Points Block.
This is being drilled by the Ghana National Petroleum Corporation (GNPC), in conjunction with Vitol Upstream Ghana Limited (Vitol), and has set Ghana on a path of economic success.
Minister of Commerce, Trade and Industry Bob Sichinga, who told potential investors here that evidence exists to the effect that oil does exist in the north-western part of Zambia, echoed Mr Yaluma’s sentiments.
Mr Yaluma also said from now own, Government will discourage the export of mined “raw ore” and encourage investors to set up industries locally to promote value addition which will create jobs.
President Sata has stated at various fora here that he intends to create more well-paying jobs for the youth as he attempts to fight corruption.
Zambia is currently Africa’s number one copper producer, but the oil dream has been the missing link in the country and Government’s desire to accelerate economic growth and if it materialises, perhaps poverty levels will be drastically reduced.
What is important, however, according to analysts here, is that President Sata’s government should start putting in place laws that will ensure that Zambians benefit more from the oil, unlike the way the benefits from copper sales have continued to elude them.
Mr Yaluma is one of the ministers that accompanied President Sata here on his roadshow, in addition to others such as Minister of Foreign Affairs and Tourism Given Lubinda and Minister of Agriculture and Livestock Development Emmanuel Chenda.
President Sata is expected back in Lusaka sometime this week as his busy schedule of business meetings continues.
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