Wednesday, July 31, 2024

CTPD calls for urgent development of Oil Exploration and Production Policy

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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.

Issued by:
Stephen Kambani (Dr)
Associate Researcher – Extractives
Centre for Trade Policy and Development (CTPD)

9 COMMENTS

    • Who told you that? If poeple from Botswana thought there were no diamonds and told to stop dreaming and wasting money, would they have become one of the largest producers fo diamonds?

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    • Surveys have been done. There’s nothing viable. Forget it. Redoing surveys can’t create oil. Also the story of Zambian diamond hasn’t been heard for about 10 years, that is a fairy tale that’s going to come again soon. Then diesel from Jatropha, cashew nut scheme, groundnut scheme, all fantasies that will come again since people have forgotten the previous time this was Ka “idea”. Rerouting rivers also

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  1. That’s not the future. The same money and time should be used for new technology clean energy, you will still need oil but there are enough countries doing that. By the time you developed any fields the ball would of moved. Don’t get left behind again.

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    • Which clean energy naimwee… The chamoions of clean energy are busy drilling for oil and looking for new oil fields. By the time clean energy oil will become cheaper and affordable and we will have used and benefited from our God given natural resources. We cannot be sure there is no oil because Tullow Oil said they had promising information based on their preliminary works in the Tanganyika basin.

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    • @Zedyatu I wonder by what percentage did Tullow Oil shares increase on that day when they made that announcement, and how many shares were subsequently quickly sold for a tidy profit by shareholders? Meanwhile you will notice that nothing has happened

  2. I think they must change the constitution so that before anyone aspires for any political role must have about 10 -15 years living abroad so that they really understand how backward & undeveloped we are. This trust me will open them up to see through the eyes of the west & do what the West have done. Not grown up & raised Up in ZED , no exposure nothing but with some degrees that do not even benefit the nation.

  3. The world is moving towards electric cars, hydrogen fuel cells and you are still asking to search for oil which isn’t even there.

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