Rwanda has recently made a significant oil discovery, marking a crucial milestone in the country’s efforts to diversify its economy beyond its traditional sectors of agriculture and tourism. This discovery aligns with the government’s strategy to expand revenue sources through the exploitation of hydrocarbons and mining resources.
Currently, Rwanda’s economy heavily relies on agricultural and mineral exports, as well as its thriving tourism industry. The extractive industries in Rwanda contribute about 2% to the nation’s GDP, according to its statistical agency. The country has also made notable contributions to global mineral markets, accounting for a significant percentage of the world’s tungsten, tin, niobium, tantalum, vanadium, and gold exports.
The newfound oil discovery could further bolster Rwanda’s growing presence in the global extractive industry and significantly enhance its economic prospects. Rwanda currently imports all its petroleum product requirements due to the absence of local production. However, with this recent discovery, the country is poised to join the ranks of Africa’s oil-producing nations, alongside major players like Algeria, Nigeria, and Egypt.
The Rwanda Mines, Petroleum and Gas Board announced that a 2D Seismic Survey commissioned by the board has shown that Lake Kivu has potential for hydrocarbon resources. The study indicated that the Lake Kivu basin has a deep thickness of around 3.5 km with hydrocarbons’ occurrences. There are thirteen structural pockets and potential drilling locations identified to confirm the presence and nature of hydrocarbons in the area.
There is growing confidence in discovering more oil reserves, with significant findings in neighboring Uganda and the Democratic Republic of Congo within the Great Lakes region. Rwanda has been conducting tests and exploratory digs in Lake Kivu for over a decade and signed a cooperative agreement with the DRC in 2017 for the exploration of cross-border hydrocarbon resources.
In 2021, Rwanda announced the discovery of a field in Lake Kivu estimated to hold millions of tonnes of crude oil and natural gas reserves. The country has already begun tapping into the area’s methane gas, securing a $400 million agreement with Gasmeth Energy to extract and process the gas into compressed natural gas for various applications.
Overall, Rwanda’s oil discovery holds great potential for the country’s economic growth and development, positioning it as a key player in the global extractive industry. With strategic partnerships and continued exploration efforts, Rwanda is on track to become a significant oil-producing nation in Africa.
