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| How will oil affect Madagascar's environmental riches? | How will oil affect Madagascar's environmental riches? |
| (31 minutes later) | |
| By Christophe Pons BBC World Service, Tsimiroro | By Christophe Pons BBC World Service, Tsimiroro |
| Amid the hills of western Madagascar, villagers have long been aware of a thick sticky substance naturally seeping out of the ground. | Amid the hills of western Madagascar, villagers have long been aware of a thick sticky substance naturally seeping out of the ground. |
| But it is only recently that these unconventional oil deposits in the region of Melaky have attracted the attention of investors. | But it is only recently that these unconventional oil deposits in the region of Melaky have attracted the attention of investors. |
| The rising prices of oil on world markets, coupled with new technologies aim to turn the Indian Ocean island - famous for its unique habitat and wildlife - into a significant oil producer. | The rising prices of oil on world markets, coupled with new technologies aim to turn the Indian Ocean island - famous for its unique habitat and wildlife - into a significant oil producer. |
| Tsimiroro is extremely remote - even by the vast island's standards - and most of Madagascar Oil's estimated 100 employees are flown by small plane from the capital, Antanarivo, 300km (about 185 miles) to the east of the oil field. | Tsimiroro is extremely remote - even by the vast island's standards - and most of Madagascar Oil's estimated 100 employees are flown by small plane from the capital, Antanarivo, 300km (about 185 miles) to the east of the oil field. |
| "Currently I work three weeks on the site and get one week off," says a 48 year old oil worker as he arrives at Tsimiroro airstrip after a week in Antananarivo with his wife in children. | "Currently I work three weeks on the site and get one week off," says a 48 year old oil worker as he arrives at Tsimiroro airstrip after a week in Antananarivo with his wife in children. |
| Tsimiroro, south of the town of Morafenobe, has proven reserves of 1.7bn barrels of heavy oil - buried some 100m to 200m beneath the mountainous region. | Tsimiroro, south of the town of Morafenobe, has proven reserves of 1.7bn barrels of heavy oil - buried some 100m to 200m beneath the mountainous region. |
| "Our main objective now is to demonstrate that this oil is a world class asset with a great commercial value," says Laurie Hunter, the British CEO of Madagascar Oil, which has oil concessions totalling 30,000 sq km in the region. | "Our main objective now is to demonstrate that this oil is a world class asset with a great commercial value," says Laurie Hunter, the British CEO of Madagascar Oil, which has oil concessions totalling 30,000 sq km in the region. |
| Oil is already being pumped in Tsimiroro but only on a very small scale. | Oil is already being pumped in Tsimiroro but only on a very small scale. |
| A few dozens of barrels a day are produced - with the objective of reaching 1,000 barrels a day during 2013. | A few dozens of barrels a day are produced - with the objective of reaching 1,000 barrels a day during 2013. |
| But unlike light crude oil, the hydro carbon in Tsimiroro is hard to extract. | But unlike light crude oil, the hydro carbon in Tsimiroro is hard to extract. |
| A pilot scheme is due to start in November designed to validate high-tech methods needed to extract it. | A pilot scheme is due to start in November designed to validate high-tech methods needed to extract it. |
| The new technology is able to inject steam into the ground to soften the oil. | The new technology is able to inject steam into the ground to soften the oil. |
| Commercial exploitation may still be years away, but the prospects of oil being produced in the impoverished country has raised a mix of expectations and concerns among Malagasy people. | Commercial exploitation may still be years away, but the prospects of oil being produced in the impoverished country has raised a mix of expectations and concerns among Malagasy people. |
| Saving trees? | Saving trees? |
| In a nearby village, where piglets wonder the streets and subsistence farming is the main means of living, some are already benefiting in terms of jobs - one man said he was working as a security guard. | In a nearby village, where piglets wonder the streets and subsistence farming is the main means of living, some are already benefiting in terms of jobs - one man said he was working as a security guard. |
| Bushes and small trees in the village bear the marks of machetes where branches have been cut away. | Bushes and small trees in the village bear the marks of machetes where branches have been cut away. |
| Deforestation - often for the purposes of making charcoal for domestic use - is a major environmental issue facing Madagascar. It is estimated that rain forests have shrunk to less than a quarter of their former size. | Deforestation - often for the purposes of making charcoal for domestic use - is a major environmental issue facing Madagascar. It is estimated that rain forests have shrunk to less than a quarter of their former size. |
| Some argue that oil could play a part in helping the island deal with this threat. | Some argue that oil could play a part in helping the island deal with this threat. |
| By boosting the economy, electricity could be installed and the production of local oil products could halt the use of charcoal. | By boosting the economy, electricity could be installed and the production of local oil products could halt the use of charcoal. |
| However, sceptics say as the oil is essentially for export, the likelihood of a local refinery is slim. | However, sceptics say as the oil is essentially for export, the likelihood of a local refinery is slim. |
| For Voaary Gasy, a coalition of non-governmental organisations, the worry is more about the possible risks of pollution as the steam injected into the underground is mixed with solvents. | For Voaary Gasy, a coalition of non-governmental organisations, the worry is more about the possible risks of pollution as the steam injected into the underground is mixed with solvents. |
| "We are also concerned by the lack of transparency and the potential pressure on water resources induced by the use of steam technology," says Andry Ralamboson, the national co-ordinator for Voaary Gas. | "We are also concerned by the lack of transparency and the potential pressure on water resources induced by the use of steam technology," says Andry Ralamboson, the national co-ordinator for Voaary Gas. |
| But Madagascar Oil, which has its headquarters in Texas, says its technology is safe and clean and the steam injection for the Tsimiroro site in is not mixed with chemicals. | But Madagascar Oil, which has its headquarters in Texas, says its technology is safe and clean and the steam injection for the Tsimiroro site in is not mixed with chemicals. |
| The company also highlights the fact that most of the water used for the steam injection process will be recycled. | The company also highlights the fact that most of the water used for the steam injection process will be recycled. |
| The World Wide Fund for Nature (WWF), which has been facilitating consultations between the Malagasy government, oil companies and local communities, does not believe Tsimiroro is an environmental threat - unlike the tar sand deposits further north, whose exploitation has been ruled out for now because of possible water pollution. | The World Wide Fund for Nature (WWF), which has been facilitating consultations between the Malagasy government, oil companies and local communities, does not believe Tsimiroro is an environmental threat - unlike the tar sand deposits further north, whose exploitation has been ruled out for now because of possible water pollution. |
| In fact WWF Madagascar representative Martin Nicoll says the Tsimiroro oilfield actually offers a real development opportunity. | In fact WWF Madagascar representative Martin Nicoll says the Tsimiroro oilfield actually offers a real development opportunity. |
| It is the prospect of large quantities of natural gas being found offshore that could be a more serious threat because of the potential influx of people and the pressure on the coastal environment, he says. | It is the prospect of large quantities of natural gas being found offshore that could be a more serious threat because of the potential influx of people and the pressure on the coastal environment, he says. |
| 'Going backwards' | 'Going backwards' |
| For Madagascar Oil, its next key step is to make what is called a "declaration of commerciality" - which will show the project is viable and will help attract bigger investors and partners for future production. | For Madagascar Oil, its next key step is to make what is called a "declaration of commerciality" - which will show the project is viable and will help attract bigger investors and partners for future production. |
| The oil company's management hopes to benefit from the global rush triggered by recent discoveries of oil and natural gas in East Africa and the Indian Ocean nations. | The oil company's management hopes to benefit from the global rush triggered by recent discoveries of oil and natural gas in East Africa and the Indian Ocean nations. |
| However, a number of political analysts, NGOs and business executives in Antananarivo believe that the country is ill prepared to face a potential oil and gas bonanza. | However, a number of political analysts, NGOs and business executives in Antananarivo believe that the country is ill prepared to face a potential oil and gas bonanza. |
| Some point out that the discovery of oil and precious minerals in other African countries has more often led to corruption and conflict than prosperity. | |
| The unstable country is still under a transitional authority following a coup in 2009. | The unstable country is still under a transitional authority following a coup in 2009. |
| "Since then, we have gone 10 years backwards," says Josephine Soanorondriaka, the head of the main employers' association in the country, GEM. | "Since then, we have gone 10 years backwards," says Josephine Soanorondriaka, the head of the main employers' association in the country, GEM. |
| The political uncertainty has made investors nervous about signing deals when it is not certain who will honour them and for how long. | The political uncertainty has made investors nervous about signing deals when it is not certain who will honour them and for how long. |
| Elections are due to be held next year. | Elections are due to be held next year. |
| But it is still unclear - despite the recommendation of the regional body Sadc which is mediating the crisis - whether the man in power, Andry Radjoelina, will allow ousted President Marc Ravalomanana, home from exile in South Africa to participate in the polls. | But it is still unclear - despite the recommendation of the regional body Sadc which is mediating the crisis - whether the man in power, Andry Radjoelina, will allow ousted President Marc Ravalomanana, home from exile in South Africa to participate in the polls. |
| Only with a democratic government in place will international recognition return and with it the island's economic revival. | Only with a democratic government in place will international recognition return and with it the island's economic revival. |