The Centre for Trade Policy and Development (CTPD) is calling on the government to urgently develop an Oil Exploration and Production (EP) Policy. Since the inception of the Petroleum (Exploration and Production) Act, 2008 (No. 10 of 2008),there has been no significant investment in oil and gas exploration in Zambia. Attracting exploration funds to Zambia, with its largely unproven hydrocarbon prospectivity and considerable geological risk, has proven difficult.
However, neighboring countries with similar geological characteristics, such as Zimbabwe, Mozambique, and Namibia, have achieved impressive results in oil and gas exploration.
Zambia has conducted three licensing rounds to attract private investment in the sector,with twelve out of fifty-six blocks under license and six actively explored. To date, none of these exploration activities have reported any success, largely attributed to a lack of serious funding commitments.CTPD has identified major issues affecting investments in oil and gas exploration:
1. Absence of Oil and Gas Exploration and Production Policy: Zambia does not have an EP policy, which is crucial for guiding investment activities in oil and gas exploration and production.
2. Inadequate Provisions in the Petroleum (Exploration and Production) Act, 2008,and its Regulations: Exploration companies in Zambia have raised concerns regarding inadequacies in the legal and fiscal frameworks and have made proposals to the government. For example, Uganda has developed both a policy and accompanying fiscal and regulatory frameworks that support their success story.
CTPD observes that the government must urgently develop an Oil Exploration and Production Policy. Its absence is undermining the successful development of the sector. The Petroleum (Exploration and Production) Act, 2008, and accompanying regulations should be revised to address some of the concerns raised by key stakeholders which includes a clear definition of state participation and its size thereof.
Source: Lusatimes
In other news – Minister Benjamin Netanyahu to address US Congress on 24 July
Israeli Prime Minister Benjamin Netanyahu will address US lawmakers in Washington DC on 24 July, congressional leaders announced on Thursday. He will speak to both chambers of Congress – the Senate and the House of Representatives – as the Israel-Gaza war continues.
Republicans and Democrats both invited the prime minister to speak, but the date of his speech was not made official until Thursday. Read more
