Zambia invites second round of oil exploration bids
03-01-10 Zambia has invited a second round of bids from foreign and local companies to explore for oil in six of the southern African country's nine provinces. The ministry of mines and minerals development said the government was looking for companies to explore in 23 demarcated blocks in the North-Western, Western, Southern, Eastern, Northern and Luapula provinces.
"The bidder must be able to demonstrate a proven ability to raise the necessary funds, assets, machinery, equipment, tolls and technical expertise to explore for petroleum in an environmentally friendly manner," it said, adding bidding would close at the end of June 2010.
Zambia in December selected seven of eight foreign and local firms that submitted bids to explore for oil in the first round of bidding in three provinces. Britain's BG Petroleum and Petrodel Resources, Glint Energy of the United States and Exile Resources of Canada were chosen along with Zambian firms Majetu, Barotse Petroleum Company and Chat Milling Company.
Zambia, which relies on copper mining for most of its foreign exchange earnings, does not produce oil. The country launched its recent licensing initiative following soil sampling studies conducted near its border with Angola.
As reported in October 2006, Zambia has collected soil samples from 12 sites and sent them to Germany for microbial testing which the ministry said confirmed the presence of hydrocarbons.
The launch of the first bidding round had been delayed several times in order to allow the government to institute a series of laws to ensure that Zambia and its residents receive the most benefit from any production that may result from exploration.
Source: http://www.energy-pedia.com