Parly Reporter
THE Mines and Mining Development Ministry is scouting for potential suitors to undertake oil and gas investments in the Muzarabani area.
Speaking in Parliament recently Deputy Minister responsible for Oil and Gas Research and other Strategic Minerals Exploration,Dr Caleb Makwiranzou said following successful groundwork, the project is now moving to the next level.
“As far as oil and gas are concerned, perhaps I can explain the issue with Muzarabani. We have done some boreholes in Muzarabani. The first borehole is called Mukuyu 1 and the second one is Mukuyu 2. We now have evidence. We have samples that show that we have hydrocarbons in Muzarabani,” he said.
He said the second one is that they had to discover and they have since discovered that there is oil and gas in Muzarabani.
“What we now need to do is, we need to have a contract with the person who wants to invest in Muzarabani. This contract is called Petroleum Production Share Agreement (PPSA).
Currently, we are negotiating with Geo Associates and Invictus who are in Muzarabani to try and agree on the terms of their exploitation of the mineral,” he said.
Makwiranzo said this will ensure that there is transparency and that there is a legal and physical framework and that indeed, there is fair value sharing. This is what is now happening in Muzarabani.
He added that explorations done in Lupane also show that said there is gas in that area.
“We will also follow that same route. After exploration, we will discover. After discovery, we will exploit. After exploiting, we will process. After processing, we will market the asset,” added Makwiranzou.
