Ngali Holdings wins bid to search for oil in Lake Kivu

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Part of Lake Kivu in Rwanda: Kivu graben is an extension of the Albertine region in which Uganda has discovered massive crude oil deposits.

Ngali Mining, a subsidiary of local investment company Ngali Holdings, confirmed to the East African that a Rwandan firm, Ngali Mining, has won petroleum exploration rights in Lake Kivu.

The East African reported that sources at Ngali Holdings, confirmed the development but did not reveal details of the agreement.

The country hopes to kick-start hydrocarbons search in Lake Kivu following discovery in 2014 that the Eastern Kivu Basin 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.

In June 2016, Rwanda enacted a law on Petroleum Exploration and Production which is expected to have a control on the oil activities.

The development comes after negotiations between government and the Chinese firm hit a dead end, after even when a draft contract had been adopted by both parties.

Rwanda was expected to resume oil search in November last year when BGP , a Chinese company  that  won a tender, in May, for the petroleum exploration rights.

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.

The source intimated that Ngali Mining and the government are currently negotiating the terms.

 

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