Newswire – Tanzania aims to start a licensing round for dozens of oil and gas exploration blocks in May, the first in more than a decade for the nation with an estimated 57 trillion cubic feet of natural gas reserves.
Three of the 26 blocks are in Lake Tanganyika and the rest in the Indian Ocean. The country’s last licensing round was in May 2014.
“We are proceeding with promotion activities because the blocks have already been identified and the data is in place. We are waiting for government approval of the Model Production Sharing Agreement, which outlines the fiscal terms,” said Charles Sangweni, director general of the Petroleum Upstream Regulatory Authority. “Our plan is to launch during the Africa Energy Summit in London from 13th to 15th May.”
Tanzania already produces natural gas, which it uses to generate electricity, and plans a $42 billion liquefied natural gas facility to be built by a consortium comprising Shell Plc, Equinor ASA and Exxon Mobil Corp.
That long-delayed plan is still under negotiation as Tanzania’s government is “trying to align just a few key outstanding issues,” Sangweni said in an interview in Dar es Salaam. “An agreement is coming, that’s my hope. When, I can’t tell you.”
*Fumbuka Ng’wanakilala – Bloomberg
