Ngali Mining has been give the green light to pursue petroleum explorations in Lake Kivu. It is believed that the Rwandan firm, a branch of local investment company Ngali Holdings, from sources at the company, affirmed the progress but did not submit the statement of agreement.
Rwanda hopes to begin hydrocarbons exploration shortly after discovering, in 2014, the Eastern Basin of Lake Kivu is favourable for oil and gas exploration.
Oil survey in Rwanda had stalled after agreements were terminated and fresh negotiations between the government and foreign firms collapsed.
The country was expected to resume oil search in November last year when BGP – a Chinese company – won a tender, in May, for the petroleum exploration rights.
However, sources confirmed that BGP is now ‘completely out of the picture’ after negotiations between government and the Chinese firm hit a dead end, even when a draft contract had been adopted by both parties.
Oil exploration is now expected to resume two years after it was put on hold following the termination of a contract with Vanoil – a Canadian company that had spent $3 million on petroleum exploration in Lake Kivu.
It is unclear when actual exploration works will start, but speculations are that Ngali Mining and the government are currently negotiating the terms.(Source: The Exchange)