Africa-Press – Gambia. The Gambian government is implementing new measures aimed at attracting investors into its oil sector, the Ministry of Energy, Petroleum, and Mines has announced.
Speaking at “Mansa Kunda” on Friday, Minister Nani Juwara emphasizes that the government has intensified its promotion of oil exploration blocks this year and is focusing on creating an attractive investment climate for prospective investors.
“One key initiative is a comprehensive review of all laws related to the petroleum sector to eliminate inconsistencies, gaps, and obstacles,” Minister Juwara stated. “We are currently working on a new petroleum exploration, development, and production bill that will reflect current industry best practices and resolves conflicts with other legislation. Additionally, we are drafting other laws to further promote investment in the upstream petroleum subsector,” he reiterated. The minister provided a brief history of oil exploration in The Gambia, noting that the first two wells Brikama 1 and Serakunda 1 were drilled by British Petroleum in 1960 and 1961, respectively. The third well, Jama 1, was drilled in 1979 by Severon, while the fourth, Sama 1, was jointly drilled by FAR and Petronio 39 years later.
He highlighted that between 1960 and 2018, only one offshore well was drilled in the country. However, since 2018, two offshore exploration wells have been drilled. Currently, Petronio operates on Block A4, one of eight offshore exploration blocks.
Minister Juwara confirmed that all contracted oil exploration companies have met their contractual obligations with the government. “FAR and BP conducted geophysical, geotechnical, and environmental studies. FAR and Petronio drilled two wells in fulfillment of their licence conditions, while Petronio has carried out geophysical studies on its block, which does not include drilling. These companies also supported local communities as part of their corporate social responsibility,” he explained.
Following unsuccessful drilling results in the “Samoo” and “Bamboo” wells in 2018 and 2021, respectively, both FAR and Petronas exited their A2 and A5 licences.
The minister further noted that, since 2017, the government has received approximately $70 million in total revenue from three licence holders.
He added that negotiations with companies interested in acquiring licences for other oil blocks are at an advanced stage.
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