Publish What You Pay Malawi Press Release: What happened to oil and gas contracts renegotiation?
Malawians would like to understand the status of oil and gas contracts that have remained a secret for a long time. Time has come for Government to inform Malawians about the status of all the contracts that were signed with oil and gas companies
and the revenues being generated from the sector. If the oil and gas intuitive is meant to benefit Malawians, it is only fair that Government should inform Malawian citizens about the renegotiation of the oil and gas contracts.
The following are some of the key issues and questions:
1. Non-disclosure of the Production Sharing Agreement (PSA) signed with RAK Gas for Blocks 4 and 5, and with Pacific Oil for Block 6.
- What is the motive behind this secrecy on PSAs signed with RAK Gas for Blocks 4 and 5; and with Pacific Oil for Block 6?
- Confidentiality breeds suspicion, make known the contracts and its proceedings to the public.
2. Non-disclosure of the addendum that includes revisions to the fiscal terms for the RAK Gas PSAs and its justification for the changes.
- Has the Addendum been published?
- Let’s end secrecy by disclosing oil and gas deals and profits to the public;
3. Questionable allocation of petroleum licenses or PSAs
- What are the criteria used to allocate Petroleum licenses or Production sharing agreements?
- Take a turn towards transparency by explaining how oil and gas contracts were allocated.
4. The absence of a report on all payments made by companies holding petroleum Licenses or PSAs, including Corporate Social Responsibility to any organization.
- Malawians deserve to know what companies are paying to the Government; what Government is receiving from companies and the benefit from the value of wealth
beneath our feet
5. Nonexistence of information on the beneficial owners of petroleum rights holders.
- Malawians need to know who owns what in the petroleum rights in Malawi.
6. The absence of a national policy for the petroleum sector and outdated Petroleum (Exploration and Production) Act of 1983.
- Develop a petroleum policy now!
- Can a 35-year-old Petroleum (Exploration and production) Act be relevant today?
- Give a new face and dimension to the 35 years old Petroleum Act.
Mining in Malawi Note: In relation to point one, the government made the PSAs public one year ago. They are all available here.