Rwanda seeks to woo investors in bid to explore hydrocarbons

Miners at a tunnel at Rutongo Mines in Rulindo District, Rwanda. The country is the second largest manufacturer of Tantalum from Coltan ore. [Photo:Courtesy]

East African Nation, Rwanda is seeking to partner with oil and gas companies to explore Lake Kivu for hydrocarbons, said a state official from the mines, petroleum and gas board.

According to chief executive of Mines, Petroleum and Gas Board Francis Gatare, Rwanda has already conducted shallow drilling in the methane gas producing lake for geochemistry tests in the west of the country.

The second round of drilling tests completion will allow the state to invite private investors to fund 2D and 3D seismic studies, held Gatare during an interview.

He supposed, “at the right time, when we have derisked the exploration exercise, we will make it known to investors. The government will have made a decision before the end of the year.’’

Rwanda is at present mining methane that is being adapted into 26 megawatts of electricity at KivuWatt power plant.  Next to the site lies hydrocarbon rich Albertine Graben which has produced 6.5 billion drums of oil so far.

The East African Nation is set to raise total earnings of these minerals to $800 million by exporting 10,000 metric tons in 2020 and $1.5 billion in 2024 from 14,000 tons.

According to the US Geological survey, the country is the second largest manufacturer of Tantalum from Coltan ore that is used in creating capacitors for smartphones, and Africa’s third largest tin miner.

Gatare is confidence that in 2018, Rwanda will raise an approximate of $400 million from trades of these minerals in comparison with $373 million realized in 2017.

“This year is looking promising, we are on course to achieving that,” Gatare said.

The country has asked Belgium to serve it with information gathered on mining industries when it was colonized by the European Union to help in conducting countrywide airborne geophysics survey, Gatare said.

Statistics Agency report indicated mining and quarrying as the contributors of two percent nation’s gross domestic product (GDP).

According to 2018 Index of Economic Freedom report, trade is important to Rwanda’s economy with total exports and imports value contributing to 48 percent GDP. Also, the government’s openness to foreign investment is above average.