/ 5 October 2004

Madagascar steps up search for oil

Rising world oil prices have given fresh impetus to an as yet fruitless 40-year search for the black gold on and near the Indian Ocean island of Madagascar, officials there said on Monday.

”Since the rise in the price per barrel, several foreign oil companies have signed exploration licences in Madagascar,” said Ignace Randrianasolo, head of fossil fuels at the Office of Mines and Strategic Industries.

”In the past, signs of oil have been found in several places, on land as well as out to sea, but never with a clear indication of the amount available,” he added.

Madagascar imports all its oil.

As well as rising prices, new technology has played a part in the renewed interest in Madagascar, especially on and off the west coast.

”We started our explorations in 2001 with a two-dimensional system. The signs are good,” said Marcelle Dane, the local representative of Vanco Energy, a subsidiary of ExxonMobil.

”Since August, we began looking with a 3D exploration system, which will last until December,” she said.

”If all goes well, we will start drilling in 2006,” she added without detailing expected reserves.

In August this year, a Mauritian company, Vuna Energy, extended its maritime exploration licence to search on land, between the west coast towns of Morondava and Mahajanga.

At the same time, Britain’s Sterling Energy reached a similar deal to explore in the waters off the port of Antsiranana, in the north.

Norway’s Statoil and ExxonMobil are in discussion with the mines office to extend their explorations. – Sapa-AFP