Project Profile
Value: US$2 million (initial four year obligation)
Location: North Western part of Malawi bordering Tanzania to the North and Zambia to the west, Malawi
Area: 12,265 square kilometres
Licence award: 2012
SacOil has been awarded the 100% equity interest and operatorship of Block 1, an onshore petroleum prospecting license in Malawi. Block 1 is located in the North Western part of Malawi bordering Tanzania to the North and Zambia to the west. At 12,265 square kilometres, Block 1 is the second largest petroleum exploration licence demarcated in Malawi. The licence is located on trend with the East African rift system which is a proven exploration province with prolific oil discoveries in Sudan, Chad, Kenya and Uganda. It is anticipated that the same Tertiary rift system will be present in Malawi. This award dovetails with SacOil\'s strategy of building a balanced upstream oil and gas portfolio through the acquisition of early stage opportunities in Africa similar to that which has already been demonstrated by the company in the DRC. The term of the exploration licence is divided into an initial four year period followed by two subsequent three year renewal periods. During the initial four year period it is envisaged that desktop studies and the acquisition of gravity and magnetic data will take place in order to evaluate the petroleum potential of the block. The financial obligation on SacOil for the initial 4 year period is a total of US$2 million.
Operators:
SacOil: Operator with 100% interest