CTPD calls for urgent development of Oil Exploration and Production Policy.

The Centre for Trade Policy and Development (CTPD) has called on the government to urgently develop an Oil Exploration and Production (E&P) Policy.

CTPD Associate Researcher-Extractives Dr Stephen Kambani said 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," Dr Kambani said 

He said CTPD has identified major issues affecting investments in oil and gas exploration which are Absence of Oil and Gas Exploration and Production Policy.

He noted that Zambia does not have an E&P policy, which is crucial for guiding investment activities in oil and gas exploration and production.

"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," He noted.

He observed that government must urgently develop an Oil Exploration and Production Policy. 

Dr Kambani stated that Its absence is undermining the successful development of the sector saying 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.