One of Madagascar’s main enterprises, located in the Vakinankaratra region, has inked contracts with Madagascar Oil SA, which manages the Tsimiroro Oil block 3104, to receive heavy oil.
The company’s decision to focus on the neighborhood market is consistent with its dedication to promoting employment and the local and national economies. Knowing in particular that these industries may currently save close to 25% on their fuel costs thanks to their imports of heavy oil from Tsimiroro. Due to the scarcity of heavy oil on the market, many enterprises are forced to use gasoil, which is significantly more expensive to purchase in the wake of the present global energy crisis.
Contracts have been signed with a number of agriculture and textile-related businesses. Some of the clients have received storage tanks from the business, enabling them to keep some of the product on-site. This is being done to avoid any potential rupture brought on by the catastrophic condition of the highways connecting Tsimiroro and Antsirabe. By making these investments, Madagascar Oil is assisting in securing the supply of these sectors and guaranteeing the ongoing operations of their operations.
An agribusiness client representative of Madagascar Oil SA stated the following: “We have come to understand that we are heavily dependent on imports as a result of the health problem. We are prepared to support initiatives for the local production of energy in Madagascar, such as the one in Tsimiroro. The tests we’ve done with this product so far have been conclusive. We use it to drive a boiler that provides steam to our manufacturing.”
With these initial sales agreements, the project is able to progressively establish itself on the local gasoline market. This action will be a turning point in the advancement of this significant oil project in Madagascar.
It should be mentioned that this HFO product is of Premium quality. It is a significantly cleaner product than those frequently found on the market because to its low sulfur level of 0.3%. Its use has less environmental impact, lowers engine maintenance costs, and lengthens and improves engine performance. The HFO from Tsimiroro might also be marketed at a very attractive price because it is a locally extracted product. This price might still be substantially less than those being charged today even if the roads connecting the exploitation location to other regions were to be rebuilt.