Vangold seeks oil exploration licence in Rwanda

* Canada-based firm wants to explore Lake Kivu

* Initial surveys show 400 sq km basin

By Hereward Holland

KIGALI, July 2 (Reuters) - Canada-based Vangold Resources (VAN.V) is seeking oil and gas exploration rights for Rwanda's Lake Kivu following successful air and satellite surveys.

The landlocked central African country has agreed to enter discussions for a Special Hydrocarbon Exploration License (SHEL) in the 1,631 sq km Kivu Graben basin, Vangold said in a statement seen by Reuters this week.

Dal Brynelsen, Vangold president, said he was pleased with initial geochemical, geophysical and other technical data on the lake which is shared with Rwanda's volatile neighbour, Democratic Republic of Congo.

"Based on the partially completed 2008 gravity and magnetic survey, we have identified a 400 square km basin under Lake Kivu," Brynelsen said.

"We want to increase our Rwandan exploration activities and look forward to working closely with the Rwandan government."

Lake Kivu is a southern extension of Uganda's Albertine rift where Tullow Oil plc (TLW.L) and Heritage Oil (HOIL.L) have made major oil and gas discoveries. [ID:nL1874248]

The Rwandan government granted Vangold exclusive rights to assess hydrocarbon and petroleum potential on the Rwandan portion of Lake Kivu in October 2007.

In February this year, Rwanda's Energy Minister Albert Butare said the quantity and quality of the oil was unknown. [ID:nLA751237]

However, the crude discovered in Uganda's Albertine Graben, which shares similar geological features, has been described as heavy or "waxy", posing logistical problems for transportation to the coast.

The energy minister was not immediately available for comment on the proposed exploration contract.

Vangold is also exploring potential oil and gas projects in the United States, Armenia and Kenya, according to the company's website. (Editing by James Jukwey)