Energy
Petroleum Bill on the Cards
September 17, 2024 / Wahard Betha
By Wahard Betha
The Ministry of Mining says it is finalizing the polishing of the draft Petroleum (Exploration and Production) Bill in order to formulate a new Act to manage the upstream petroleum subsector, which is currently governed using the Petroleum (Exploration and Production) Act 1983 currently considered outdated.
Director General for Mining and Minerals Regulatory Authority Samuel Sakhuta told Mining and Trade Review that Government is fast-tracking the drafting process to create a better legislative environment in the subsector which continues to attract interest from investors.
Government demarcated Malawi’s part of the Great African Rift Valley geological zone, which has potential for hydrocarbon prospecting into six blocks. The blocks were awarded to various multinational firms that later relinquished their licences due to the prevalence of the Covid-19 pandemic which made it difficult for them to mobilise staff and equipment to conduct the exploration work.
Sakhuta said the Ministry has included a provision for re-demarcation of the existing big blocks in the new Bill to create room for more investors interested to conduct hydrocarbon exploration.
He said: “We have a draft bill that we are to submit to parliament at some point once polishing of the document is finalized.”
“Looking at the pressure that we have now from the investors who are interested in the sector, recently I presented a memo on the same to the Principal Secretary.”
“We are saying we want to come up with a solid and revised Act. In terms of re-demarcation, once the controlling officer gives a nod to that, we are much ready to re-demarcate.”
“By demarcating, we will give a chance to many investors and have a high probability of getting what we are looking for very quickly.”.
Coordinator for Chamber of Mines and Energy Grain Malunga commended the move saying the subsector still carries weight in terms of energy sources.
“Oil and gas will never be completely abandoned as a source of energy. There is a need to encourage exploration and development of the same,” said Malunga.
In a separate interview, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera also commended the Malawi Government for the move but further urged for full implementation of the laws.
Chabwera said: “The Ministry reviewed the petroleum policy last year which was a good move and hearing that they are now drafting a bill is progressive since the 1983 Act is long outdated.
“However, having good laws is not enough if there is no implementation and political will to see rule of law at work in this country.”
Chabwera also asked the Malawi Government to conduct due diligence on the companies applying for licenses and finalize the legal framework before rushing to grant any company a license.
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The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
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Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
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