Thursday 18, October 2018 by Bloomberg

Rwanda may invite private investors to search for oil in lake

 

Rwanda is considering partnering with oil and gas companies for the next stage of exploring Lake Kivu for more hydrocarbons, a government official said.

The East African nation has conducted the first round of shallow drilling for geochemistry tests in the methane-gas-producing lake in the west of the country, according to Mines, Petroleum and Gas Board Chief Executive Officer Francis Gatare.

After the ongoing second round of shallow-drilling tests, the state will decide whether to invite private investors to finance 2D or 3D seismic studies, Gatare said in an interview in the capital, Kigali.

“At the right time, when we have de-risked the exploration exercise, we will make it known to investors,” he said.

The government will have made a decision before the end of the year, he said.

Rwanda is already extracting methane from the lake that lies in the same hydrocarbon-rich Albertine Graben, where neighbouring Uganda has found 6.5 billion barrels of oil resources. The gas is already being converted into 26 megawatts of electricity for Rwanda at the KivuWatt power plant.

On the wider mining industry, Rwanda is targeting to grow mineral earnings to $800 million from shipping an estimated 10,000 metric tons in 2020 and $1.5 billion from 14,000 tons in 2024. The country is the world’s second-biggest producer of tantalum, a mineral extracted from coltan ore that’s used to make components in smartphones, and Africa’s third-largest tin miner, according to the US Geological Survey.

This year, Rwanda could make about $400 million from the exports, compared with $373 million earned last year, Gatare said.

“This year is looking promising,” he said. “We are on course to achieving that.”

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