Bemolanga PSC

The Bemolanga Block covers an area approximately 5,463km2. MOIL holds a 40% interest in the Bemolanga Block, with Total E&P holding the remaining 60% as partner and operator. Total acquired its interest in 2008, paying a premium of $100m and committing a further $100m work programme.

Initially the focus was on a potential ultra heavy “tar sands” mining project, with a best estimate gross discovered bitumen-in-place of approximately 1.2bn bbls and further upside of 1.0bn bbls. However, a detailed evaluation including a 2-year, 160 well coring programme in 2009/2010 indicated that currently despite the size of the deposit in the area studied, at a base oil price range of US$60-$100/bbl Brent Blend, the total cost of mining the ore to shipping the heavy oil product would not support a commercial mining project.

Therefore, the focus is now on exploration for light hydrocarbons in the deeper formations in the block, and MOIL and Total have carried out an 8,000km2 AGG survey in 2011 that identified two promising prospective features. Further seismic is expected to be performed once necessary approvals have been received from the relevant authorities.

The results of the 2011 AGG survey indicate that further seismic acquisition is required in order to confirm the presence of drillable prospects.

The Operator of Block 3102 (Bemolanga) License, Total E&P Madagascar S.A.S (“Total”), presented the 2015 annual work programme and budget to the Madagascar authorities and to MOSA in December 2014.  The 2015 work programme is aimed at maturing leads on the block to plan for a seismic acquisition programme in 2016.  The proposed 2015 budgeted work is fully covered by the terms of the existing Total carry of MOSA costs.

Swiss Energy Partners