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The southern African republic of Malawi has no known oil or gas reserves and consequently no upstream oil industry. Its downstream oil industry is wholly dependent on refined petroleum products imported from neighboring African countries. Oil-derived products supply 74% of the country's commercial energy needs. The market exceeds 20,000 tonnes per month. Legislated changes are being implemented to split the mid-stream from downstream industries. The Chirimba distribution depot is currently under construction.

The distribution infrastructure consists of road and rail systems all in need of upgrading and repair. There are 17 storage depots. A matter of concern to the government is the smuggling that takes place on the border with Tanzania. A single pricing formula exists for all products which determines the maximum price that can be charged.

In 2003 Energem Resources Inc. secured a 12 year oil importation license to import refined products to Malawi. The company was awarded rights to build, own and operate a 70,000 cubic meter strategic oil storage facility, and pipeline from Mozambique to Malawi, to replace road & rail transport. CITAC was appointed as the engineering & environmental consultants. In April Bankable feasibility started April 2004 commenced with a bankable feasibility study for the pipeline.

Petroleum Law & Legislation

The Malawian oil industry is regulated by The Ministry of Natural Resources and Environmental Affairs.

Oil & Gas Companies

  • Salim Trading (ST) Malawi
  • BP Malawi
  • Energem Resources Inc.

Key Figures

  • Oil production: 0 bbl/day(2008)
  • Oil Consumption: 8,000 bbl/day(2008)
  • Oil Exports: 0 bbl/day(2007)
  • Oil Imports: 6,960 bbl/day(2007)
  • Oil Proved Reserves: 0 bbl (2009)
  • Natural Gas Production: 0 cu m(2008)
  • Natural Gas Consumption: 0 cu m (2008)
  • Natural Gas Exports: 0 cu m (2008)
  • Natural Gas Imports: 0 cu m (2008)
  • Natural Gas Proved Reserves: 0 cu m(2009)

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