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The Centre for Trade Policy and Development (CTPD) has called on government to urgently develop an Oil Exploration and Production (E&P) Policy, pointing out that its absence was undermining the successful development of the sector.
The centre raised concern regarding the lack of exploration activities despite Zambia conducting three licensing rounds to attract private investment in the oil and survey sector.
CTPD Associate Researcher – Extractives, Stephen Kambani, in a statement issued on Thursday recalled that 12 out of 56 blocks under license and six actively explored had been conducted and yet none of them had reported any success.
Kambani said CTPD had identified major issues affecting investments in oil and gas exploration.
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These included the absence of Oil and Gas Exploration and Production Policy.
According to Kambani, Zambia did not have an E&P policy, which was crucial for guiding investment activities in oil and gas exploration and production.
“Exploration companies in Zambia have raised concerns regarding inadequacies in the legal and fiscal frameworks and have made proposals to the government.
“For example, Uganda has developed both a policy and accompanying fiscal and regulatory frameworks that support their success story. CTPD observes that the government must urgently develop an Oil Exploration and Production Policy,” he said.
Kambani said the Petroleum (Exploration and Production) Act, 2008 and accompanying regulations should be revised to address some of the concerns raised by key stakeholders which included a clear definition of state participation and its size thereof.
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