Madagascar+Natural+gas

=Chinese Investments in Natural Gas in Oil Blocks 2401 and 3112 Likely=

Executive Summary:
It is likely that Madagascar will continue to see Chinese investments in natural gas over the next five years, specifically investments in block 2401 by Yangch ang Petroleum International or the Sino Union Energy. Block 2401 has 2.3 trillion cubic feet of natural gas, which was previously owned by Mumbai Varun. The Sino Union Energy invested USD 150 million to acquire a 51 percent stake in the oil field block. Madagascar Southern Petroleum Co., which is a Chinese exploration company has also discovered natural gas near Sakaraha (Block 3112) in the southern part of Mozambique. It is unknown how much investment has been made by Southern Petroleum Co. but future investment is likely.

Analytic Confidence:
Analytic confidence for this assessment is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was easy to meet.

Analyst:
Sean Dailey sdaile35@lakers.mercyhurst.edu