Madagascar Oil brings tar sands project to London market
The arrival of
Madagascar Oil on the Aim market today allows investors to buy into what are likely to be among the dirtiest
oil sands projects – benefiting from the lowest tax rates – anywhere in the world.
Higher oil prices make the projects viable and the government is desperate to get production going, possibly as early as next year. It is ready to entice Madagascar Oil and its French partner Total with an extremely generous tax regime. Operators are being offered 99% of the revenue for the first 10 years while they recoup their costs, with just 1% for the government. Platform, a campaign group that monitors oil companies' activities around the world, said the offer was "unheard of".