1. FOR HYDROCARBON EXPLORATION
MADAGASCAR
NEW OPPORTUNITIES
FOR HYDROCARBON EXPLORATION
General profile
OMNIS presentation
Hydrocarbon prospectivity
Oil exploration status
Current promotion
Legal & contractual

2. MADAGASCAR GENERAL PROFILE Third largest Island
Southwest of Indian Ocean
400 km off the coast of east Africa
Length : km
Wide : km
Surface: km2
Climate: 2 seasons
Dry & cool from April to September
Wet & warm from October to March

3. GENERAL PROFILE (cont’d)
MADAGASCAR
GENERAL PROFILE (cont’d)
Capital: Antananarivo
Population: 18 millions
Languages: Malagasy and French

4. GENERAL PROFILE (cont’d)
MADAGASCAR
GENERAL PROFILE (cont’d)
ENERGY
Electricity generated by the hydro-electrical or power station using fuel
Firewood and charcoal for domestic use
Oil and Gas
Needs to import refined products
Consumption of oil: 15,000bbl/day
Refinery’s capacity: 740,000m3 of crude oil/year

5. GENERAL PROFILE (cont’d)
MADAGASCAR
GENERAL PROFILE (cont’d)
Regulation of the oil industry by the Ministry of Energy and Mines
Upstream sector managed by Office des Mines Nationales et des Industries Stratégiques (OMNIS)
Downstream sector managed by Office Malgache des Hydrocarbures ( OMH )

6. OFFICE FOR NATIONAL MINING AND STRATEGIC INDUSTRIES
MADAGASCAR
OFFICE FOR NATIONAL MINING AND STRATEGIC INDUSTRIES
GENERAL
MANAGING
Cabinet
Division
Hydrocarbon
Division
Mining Resources
&
Radioactive
Mineral
Division
Development
&
Support
Division
Patrimony
&
Human Resources
Division
Administrative
&
Financial
Division

7. OFFICE FOR NATIONAL MINING AND STRATEGIC INDUSTRIES
MADAGASCAR
OFFICE FOR NATIONAL MINING AND STRATEGIC INDUSTRIES
(cont’d)
Creation in 1976
State-owned agency for oil and mineral resources
300 employees
1/3 highly qualified with years of international experiences
Role in oil industry
Managing the national mining for hydrocarbon sector
Holder of exploration hydrocarbon data

8. hYDROCARBON PROSPECTIVITY
MADAGASCAR
hYDROCARBON PROSPECTIVITY
sq km from Onshore to Exclusive Economic Zone (EEZ), Madagascar divided into five basins :
Ambilobe Basin
Majunga Basin
East Coast Basin
THREE main sedimentary basins :
AMBILOBE: sq km
MAJUNGA: sq km
MORONDAVA: sq km
Morondava Basin
TWO other basins :
CAP STE MARIE in SOUTH: sq km
EAST COAST: sq km
Cap Ste Marie Basin

9. HYDROCARBON PROSPECTIVITY (cont’d)
MADAGASCAR
HYDROCARBON PROSPECTIVITY (cont’d)
The three western basins onshore and offshore :
Efforts concentrated in these basins due to the existence of two giant exhumed oil fields in the northern part of Morondava basin
Common geological history related to rifting & drifting of Madagascar from Africa & India
The last two basins, entirely offshore, still
unexplored

10. HYDROCARBON PROSPECTIVITY
MADAGASCAR
HYDROCARBON PROSPECTIVITY
(cont’d)
Presence of all criteria for oil accumulation in Madagascar
Mature source rocks
Reservoir rocks
Traps
Seals
Maturation of the Kerogen

11. MADAGASCAR STATUS OF EXPLORATION Geophysical surveys
71,000 km of 2D seismic
3,600 sqkm of 3D seismic
195,000 km of aero magnetism
11,000 km of micro magnetism
33,000 km of magnetism
87,000 km of gravity

12. STATUS OF EXPLORATION (cont’d)
MADAGASCAR
STATUS OF EXPLORATION (cont’d)
Exploration wells : 75 wells
1 in onshore Ambilobe Basin
8 in Majunga Basin (2 offshore & 6 onshore)
65 in Morondava Basin (6 offshore & 59 onshore)
1 in offshore East Coast
1 well / 8500 sq km

13. STATUS OF EXPLORATION (cont’d)
MADAGASCAR
STATUS OF EXPLORATION (cont’d)
Hydrocarbon shows
Outcrop: Bemolanga tar sand
Tsimiroro heavy oil
Oil and gas shows: 65 % of wells drilled
The most important light oil shows in Majunga, Morondava and East Coast basins
Gas shows found in both Majunga and Morondava basins

14. STATUS OF EXPLORATION (cont’d)
MADAGASCAR
STATUS OF EXPLORATION (cont’d)
Five Companies operating in Madagascar (10 Contracts)
VANCO Group (Vanco – ExxonMobil – Norsk Hydro) in Majunga offshore deep water.
Madagascar Oil Sarl (MOS), in onshore Morondava basin
Majunga Oil Sarl (MAS), in onshore Majunga basin

15. STATUS OF OIL EXPLORATION (cont’d)
MADAGASCAR
STATUS OF OIL EXPLORATION (cont’d)
Sterling Energy Ltd in Ambilobe and Ampasindava offshore.
ExxonMobil in Cap Saint Andre offshore.
TGS-Nopec: Speculative Survey in west and south offshore of Madagascar

16. MADAGASCAR Current Promotion open blocks based on the available
Promote the onshore and the offshore
open blocks based on the available
data and the petroleum concepts
Promote in particular the Mozambique
channel facing Morondava basin and
South Madagascar Plateau till the
EEZ.

17. MADAGASCAR Current Promotion The offshore open blocks
(Cont’d)
The offshore open blocks
The Mozambique Channel facing Morondava basin containing :
thick sedimentary sequence on the Davie Ridge
trapping system controlled by possibly salt tectonic and also related to Madagascar southeastward drifting)

18. Current Promotion (cont’d)
MADAGASCAR
Current Promotion (cont’d)
The Madagascar Plateau constituted by the southward continuation of Madagascar : relatively shallow Karroo and thick Mesozoic sequence;
The East coast basin: thick post Middle Turonien sequences shown through seismic lines and MAL 1 well
For both, few data

19. Current Promotion (Cont’d)
MADAGASCAR
Current Promotion (Cont’d)
2D speculative seismic survey carried out in late September in offshore Morondava basin and Madagascar plateau.
Shooting 9000 km of lines
OMNIS will launch a bid round in year
Average size of blocks:1900 square km
Maximum of 3 blocks per contract

20. LEGAL AND CONTRACTUAL FRAMEWORK
MADAGASCAR
LEGAL AND CONTRACTUAL FRAMEWORK
Hydrocarbon upstream activities governed by petroleum law
OMNIS, representative of the state and administrator of the National Mining Domain of Hydrocarbons
“National Society” in charge of all production activities
OMNIS entitled to act on behalf of the “National Society”

21. LEGAL AND CONTRACTUAL FRAMEWORK
MADAGASCAR
LEGAL AND CONTRACTUAL FRAMEWORK
(Cont’d)
Exploration & Production operations governed by contracts,
Production Sharing Contract (PSC)
Joint Venture Contract
Non negotiable terms
Exploration period : 8 years & 2 years extension upon justified
request
Production period : Oil 25 years ; Gas 35 years & 5 years
extension
Royalties (sliding scale)
Income tax : 30%

22. LEGAL AND CONTRACTUAL FRAMEWORK
MADAGASCAR
LEGAL AND CONTRACTUAL FRAMEWORK
(Cont’d)
Mining titles granted by the President of Republic
Three separate Mining Titles:
Exploration Mining Title
Exploitation Mining Title
Transportation Mining Title
Legislation and Jurisdiction
All activities related to hydrocarbons are governed by
Malagasy law

23. CONCLUSION AND CHALLENGES
MADAGASCAR
CONCLUSION AND CHALLENGES
High prospectivity of all open blocks with respect to oil accumulation criteria:
Numerous trap systems
Wealthy source rocks
Density of wells = 1/8,500sqkm

24. CONCLUSION AND CHALLENGES (Cont’d)
MADAGASCAR
CONCLUSION AND CHALLENGES (Cont’d)
Enhancement of the prospectivity by speculative seismic survey over Madagascar Exclusive Economic Zone
The Mozambique channel
The Cape Sainte Marie extended to Madagascar Plateau
Exploration data available for consultation and/or sale

25. MADAGASCAR
THANK YOU