The Botswana government, through its mining investment arm, the Minerals Development Company Botswana (MDCB), has announced plans to acquire a stake in Botala Energy, the company developing a Liquefied Natural Gas (LNG) project near Serowe.
Botala disclosed last week that it had received a major endorsement from the government following MDCB’s confirmation of its intention to exercise its option under Section 40 of the Mines and Minerals Act to acquire a 15 percent equity interest in the Serowe Coal Bed Methane (CBM) Project.
According to Botala, MDCB’s planned investment will be made at the project or asset level. The decision follows an extensive economic and technical review conducted by the agency, which confirmed the project’s commercial viability.
“Botala has received an initial Term Sheet, which remains confidential at this stage,” the company said.
“Completion of the transaction is subject to execution of detailed operating agreements expected in November/December 2025, and approval by the MDCB Board and shareholders.”
Botala Energy Chief Executive Officer, Kris Martinick, said the company welcomes MDCB’s decision to pursue a partnership role in the Serowe CBM Project.
“Their planned participation reflects confidence in the project’s potential and alignment with the Government of Botswana’s energy security objectives,” he said.
“This investment will support our immediate work programme and provide a foundation for the next stage of project development.”
Botala is currently advancing a Bankable Feasibility Study (BFS) to develop a modular LNG production facility to commercialise gas from its Serowe CBM Project. Detailed engineering, financial modelling, and commercial delivery planning are being completed for a four-phase plan to reach a production benchmark of 3.5 petajoules (PJ) served by 108 wells.
The first phase of development at the Serowe CBM Project involves establishing Pilot Pitse, a five-well “proof of concept” station designed to test commercial deliverability.
Botala says the MDCB investment will support ongoing flow testing and data collection at Project Pitse, expansion drilling of additional wells, as well as the ongoing progression of BFS work programmes.
It is reported that the MDCB transaction forms the first step in a broader funding pathway for the Serowe CBM Project.
“Botala continues engagement with additional potential investors in the Serowe CBM Project,” Botala said.
“Additional funding initiatives would complement the MDCB’s participation and underpin the capital requirements for continuous drilling, well tie-ins, and LNG infrastructure development.”
