Government Moves to Acquire 15% Stake in Serowe Coal Bed Methane Gas Project

Government Moves to Acquire 15% Stake in Serowe Coal Bed Methane Gas Project. The Government of Botswana, through its state-owned mining investment firm, the Mineral Development Company of Botswana (MDCB), has confirmed its intention to acquire a 15% equity stake in Botala Energy’s Serowe Coal Bed Methane (CBM) Gas Project. The move represents a strategic step toward strengthening local participation in the country’s emerging Liquefied Natural Gas (LNG) sector.

According to a statement by Botala Energy, the Botswana Stock Exchange-listed company has received an initial Term Sheet confirming that MDCB’s investment will be made at the project or asset level. The agreement, still subject to final board and shareholder approval, is expected to progress with the execution of detailed operating agreements in November or December 2025.

Botala Energy’s Chief Executive Officer, Kris Martinick, welcomed the partnership, describing it as a major milestone for the project and for Botswana’s broader energy ambitions. “We welcome 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.

He added that MDCB’s involvement will help support Botala’s immediate work programme and provide a foundation for the next stage of project development.

The Serowe CBM Project has seen significant progress this year, following the announcement of a Mining Licence in March 2025 and the government’s extension of a 90-day option period to 30 September 2025. The collaboration underscores growing public-private cooperation in Botswana’s energy sector as the country looks to diversify its energy mix and enhance domestic gas production capacity.