The liberalization of the country's downstream oil sector in 1999 heralded a new era for the sector, which is managed by private operators. British Petroleum had requested a VAT exemption from the Malagasy government to continue its exploration activities; the world's third-largest oil company was then in its second phase of exploration in Madagascar. BP is now undergoing a strategic reorientation quantified at nearly 80% of its global portfolio. Thus, despite the investments made in the exploration phases and exploitation projects of four offshore oil blocks in Madagascar, the British major has opted for a radical about-turn, a decision accompanied by the return of its oil blocks to the Office of National Mines and Strategic Industries. 

Madagascar Oil, the largest onshore company, focuses on oil development, exploration, and production. It holds the largest heavy oil resource in the Tsimiroro and Bemolanga oil fields. It is the sole operator in the Tsimiroro Contract Area, while operating in a farm-in relationship with Total SA, one of the supermajor oil companies. Madagascar Oil's projects are governed by Production Sharing Contracts signed in 2004 with OMNIS, a state-owned company. These contracts provide the Government of Madagascar with significant interests in future production. Tsimiroro is a major oil field in the onshore Morondava Basin in the west of the island. Madagascar Oil is engaged in the development of the Tsimiroro heavy oil field and in conventional oil exploration on five contiguous onshore blocks. The potential is estimated at 1.7 billion barrels and some 8 Gbbl of heavy crude oil.