Ven 2 Nov 2012 09:55
OIL Exploration parliament
OIL EXPLORATION IN THE NORTH-WESTERN PROVINCE
173. Mr Lufuma asked the Minister of Mines, Energy and Water Development what progress the Government had made in relation to oil exploration in the Kayombo area in Kabompo, Chavuma and Zambezi Districts in the North-Western Province.
The Deputy Minister of Mines, Energy and Water Development (Mr Musukwa): Mr Speaker, I would like to thank you for giving me this opportunity to inform this House and the nation about the PF Government’s commitment to ensuring success in oil and gas explorations in all parts of the country and the North-Western Province in particular.
Sir, the Government, through the Geological Survey Department, conducted oil and gas explorations, using Microbial Prospecting for Oil and Gas (MPOG) techniques in the three districts between 2007 and 2010.
Mr Speaker, the areas that were found to have potential to host oil and gas were demarcated into blocks and advertised to enable interested companies to bid. The blocks in Kabompo, Chavuma and Zambezi Districts were awarded to exploration companies in 2011.
Sir, the Government is, now, awaiting the companies that got these blocks to report on the progress made on the exploration details and activities in these areas.
I thank you, Mr Speaker.
Mr Lufuma: Mr Speaker, I would like to thank the hon. Minister of Mines, Energy and Water Development for that elaborate answer. Has the ministry attempted or given these companies a timeline within which they should report back so that we can make progress on this issue?
Mr Musukwa: Mr Speaker, I am very grateful to the hon. Member for that question because oil and gas explorations have a huge potential to help the country and the Government to diversify its dependency from minerals such as copper and cobalt.
Sir, yes, we have given them a time limit. In fact, upon giving them the licences, they must be able to move on site within ninety days.
Interruptions
Mr Musukwa: Mr Speaker, I am very glad because I was very optimistic about addressing this issue in the presence of our colleagues who have been very magnanimous, today, by not walking out of the Assembly Chamber.
Sir, the ninety days, regarding the exploration of oil and gas is stipulated in the Mines and Minerals Act. I would like to take this opportunity to inform the House and the nation that the Government is in the process of entering default notices for companies that have not moved on site within ninety days, as stipulated in the Act.
I thank you, Sir.
Hon. Government Members: Hear, hear!
Mr M. B. Mwale: Mr Speaker, the exploration licences were issued in 2011 and, now, 2012 is about to end. The hon. Minister is saying the Government is awaiting responses from the companies that are exploring for oil and gas. Is the hon. Minister informing this House and the nation that the companies that have been exploring for oil and gas have not been submitting monthly, quarterly and annual reports?
Mr Musukwa: Mr Speaker, I would like to thank the hon. Member for that question. However, the hon. Member, who is also the former Minister of Mines and Minerals Development in the previous Government, lamentably failed to implement the Mines and Minerals Act.
Hon. Government Ministers: Hear, hear!
Interruptions
Mr Musukwa: Mr Speaker, the PF Government is committed to ensuring that it moves on site in terms of this programme. The hon. Member …
Mr M. B. Mwale: On a point of order, Sir.
Mr Deputy Speaker: Since the hon. Member raising the point of order is the one who asked the question, I am reluctant to give him the Floor.
The hon. Member may continue.
Hon. Government Members: Hear, hear!
Mr Musukwa: Mr Speaker, I am trying as much as possible to be polite because our colleagues use any opportunity to walk out. Sir, I would like to …
Interruptions
Mr Deputy Speaker: Order!
I think, to be very honest, let us not provoke situations. I would rather, hon. Minister, you zero-in on the question.
You may continue.
Mr Musukwa: Mr Speaker, I would like to thank the hon. Member for that question …
Ms Siliya: On a point of order, Sir.
Mr Deputy Speaker: A point of order is raised.
Ms Siliya: Mr Speaker, we come to this House because this is the only place we meet, as Zambians, and because we are the elected Members who are here to represent the other Zambians. For most of us, this function is more emphasised on the Executive, who are the custodians of the resources of this nation. At this particular time, …
Mr Deputy Speaker: Order! Order!
You have made your preliminary remarks. Can you come to your point of order?
Ms Siliya: My point of order is: Is the hon. Minister who is answering the question, at a time we are about to discuss the Budget for which they need our support, in order to play politics and refer to a former Cabinet Minister, who was very successful, whereas he is failing to answer questions appropriately?
Interruptions
The Deputy Speaker: Order!
Let us not use points of order to debate and, like I ruled earlier, hon. Minister, zero-in on the answer to avoid opening a Pandora’s Box.
You may continue.
Mr Musukwa: Mr Speaker, what is very clear is that we did not receive any reports from the companies exploring for oil and gas for the period our colleagues have asked about. However, the Government is very proactive. It ensures that we send them default notices so that we can move on.
I thank you, Mr Speaker.
Mr Deputy Speaker: I give you credit for that. That is good.
Laughter
Mr Kakoma: Mr Speaker, Zambia started talking about oil exploration almost at the same time as Uganda did, and Uganda has gone ahead to mine its oil deposits, but Zambia is still talking about exploration.
Interruptions
Mr Deputy Speaker: Order!
Mr Kakoma: Mr Speaker, regarding the oil blocks that the hon. Minister referred to, the Government reserved the best oil block for itself. What is the progress on that oil block in Kabompo, which the Government reserved for itself? How far have the explorations gone?
Mr Musukwa: Mr Speaker, the hon. Member of Parliament is very well-informed about his area. Yes, the Government reserved blocks for itself in that area. It is not just one, but four blocks which have been reserved for the Zambia Consolidated Copper Mine – Investment Holdings (ZCCM-IH). In the last few weeks, the Government has been precipitating the ZCCM-IH to get into partnerships and move into this area so that the Government can lead the way in this exercise.
I thank you, Mr Speaker.
Hon. PF Members: Hear, hear!
Ms Lubezhi (Namwala): Mr Speaker, the hon. Deputy Minister said that the PF Government has been proactive and is seeing to it that it gets reports from the companies that are exploring for oil. It has been in office for one year, now, but has not received any reports. What has it been doing?
Mr Musukwa: Mr Speaker, in following your advice very seriously, I would like to tell the hon. Member of Parliament that we found many issues that needed to be cleared. As a working Government, we wanted to do things in a civilised manner so that we do not create confusion.
I thank you, Mr Speaker.
Hon. Government Members: Hear, hear!