| The Tsimiroro heavy oil exploitation site of Madagascar oil |
Information is pouring in regarding the completion of the financial restructuring of Madagascar Oil SA. According to our sources, the Supreme Court of the Bermuda Islands approved, on April 2, the financial restructuring proposal presented by the shareholder Benchmark Group. This decision also authorizes the acquisition by the latter of all the shares of Madagascar Oil Ltd, based in Mauritius, holder of 99% of the shares of Madagascar Oil SA. According to information, this Court had already ordered this financial restructuring in February 2023 following a request from a creditor of the parent company of Madagascar Oil SA.
These same sources indicate that during the company’s General Assembly, held a few days later, among the first decisions taken unanimously was the replacement of the General Administrator. Willy Ranjatoelina and Charlie Thurnston are appointed to this function, in accordance with the provisions of the Companies Law in Madagascar. The person concerned is immediately notified by an officer appointed by the Supreme Court of Bermuda, but immediately contests his dismissal and takes the matter to the Commercial Court. Madagascar Oil is far from coming out of the woods.
And as if that were not enough, the company would have in turn filed a complaint with the Anti-Corruption Center against the outgoing General Administrator for financial embezzlement. A real soap opera is looming.
This time, everything seems to be in place and we reasonably hope to see the exploitation of heavy oil from Tsimiroro begin within a reasonable time frame. However, this affair, if it drags on, could complicate things, or even delay the exploitation of Tsimiroro once again. However, in addition to the prospect of entering the list of oil exporting countries, the large-scale production of this heavy oil is eagerly awaited.
Indeed, Madagascar Oil SA already supplies the local market based on its stock of 180,000 barrels, a quantity extracted during the exploration phase. Its current use by industries in Antsirabe and Antsiranana shows promising productivity benefits. Not to mention the possibility for Jirama to obtain supplies locally, without having to incur maritime transport costs.
There is hope for Tsimiroro with this restructuring, thus putting an end to years of freezing and uncertainty, unlike Bemolanga who has fallen into oblivion.
Itamara Randriamamonji
