Seychelles to change oil legislation to invite exploration bids

Posted in Business and Economy, Foreign investments, Seychelles legislation at 12:56 pm by Robert Klien

According to an energy official, Seychelles plans to revamp its model petroleum production sharing agreements. After that, oil and gas companies will be invited to bid for exploration licences from May 2013.

East Africa has become a hotbed of exploration after oil discoveries in Uganda and Kenya, as well as natural gas finds in Tanzania and Mozambique. Currently, Seychelles is attracting much interest.

Eddy Belle, chief executive of upstream regulator PetroSeychelles, said that many firms have approached him but they will have to wait until after April to submit their proposals. “By then we will have put in place the few pieces of legislation required to modernise our model petroleum agreement and the new fiscal regime,” he told Reuters in an interview. He also added, “We will not have a licensing round per se. The way we will do it is: after April 2013, oil companies can come in at any time and provide a proposal for an area”.

So far, Afren Plc and Australia’s WHL Energy are the only companies holding exploration licences in Seychelles.

Belle said that after April, once a company had approached the government for an exploration area, other interested ones would have up to 90 days to submit bids for the same block. After the 90 days expired, the government would evaluate and award the exploration area to the company that showed it had the financial capability to conduct exploration and then go into production if it struck commercial quantities of oil.


Seychelles inflation rises to 6.2% in February

Posted in Seychelles' statistics at 12:56 pm by Robert Klien

Consumer prices in Seychelles rose 0.6% in February 2013, pushing the year-on-year inflation rate higher to 6.2% from 5.9% a month earlier. This data was released by the National Bureau of Statistics on March 5.

According to the National Bureau of Statistics, food prices excluding fish increased 1.3% during February while non-food costs climbed 0.4% month-on-month.