Madagascar Revives Its Upstream Oil Sector

On January 7, 2025, during the Government Council, Madagascar announced the revival of its upstream oil sector.

Dr. Olivier Herindrainy Rakotomalala, Minister of Mines and Strategic Resources, emphasized during a press conference held last week in Antananarivo that “This initiative aims to revitalize a crucial sector that has faced various obstacles in recent years. Among these challenges are the suspension of oil block promotion since 2019 and the mass departure of international oil companies.“

He added that “this revival comes amid an international context marked by geopolitical instability, making the exploration of new hydrocarbon reserves more appealing.” The country, rich in natural resources, holds significant potential for oil and gas, particularly in its sedimentary basins. Moreover, global geopolitical instability, fueled by conflicts in several regions, has reignited international interest in oil exploration.

Recent forums such as the Africa Energies Summit and Africa Oil Week have confirmed that fossil fuels remain critical in the global energy mix. In this context, the Malagasy government is committed to cleaning up and reviving the sector. The goal is to negotiate fairer oil contracts, similar to what has been achieved in mining projects.

Key actions are planned to support this objective. These include revising the production-sharing contract model to ensure a more equitable distribution of revenues, as well as adopting presidential decrees to cancel outdated hydrocarbon exploration licenses.

The government also plans to lift the suspension on oil block promotion and review production agreements with Madagascar Oil S.A. to establish balanced terms.

These measures aim to restore transparency and position Madagascar as a strategic player in the regional oil industry. The government calls for collaboration with all stakeholders to ensure the success of this revival and to stimulate the country’s socio-economic development.