An oil rig in the deep ocean waters. Investing in gas and oil exploration as well as drilling is capital intensive. Tanzania is set to open its fourth round of licensing for oil and gas in its seven off-sea blocks. photo | FILE
Dar es Salaam. Tanzania has arranged an oil and gas exploration 4th licensing round, the first of its kind to be held in the country.
Through the licensing round to be launched on October 25, the government plans to offer seven blocks sitting in the deep offshore and a block in the Lake Tanganyika North.
According to Tanzania Petroleum Development Corporation the bid documents will be sold after the launch at the proposed price of $750,000 (Sh1.2 billion) per set.
“We are very happy to conduct the licensing round for the first time at home. It will help to increase awareness to locals on the oil and gas industry; it will also benefit different economic sectors in the country,” said TPDC principal petroleum geologist, Wellington Hudson.
The licensing round also will market Tanzania internationally which in turn will boost the country’s tourism sector.
The 4th licensing round is scheduled strategically just after the oil and gas conference on October 23 to 24.
The round will close in May 2014.
TPDC and ION Geoventures will organise a procedure of data purchase and payments for the purchase of bid document sets.
The previous three rounds were announced and held in London.
The first was opened in June 2000 and closed in April 2001, the second was held from June 2001 to July 2002 and the third round was opened in May 2004 and closed in May 2005.
“In the first round only one bid from Petrobras was received. They were awarded a Production Sharing Agreement for Block 5 in deep offshore,” said Dr Hudson.
The second round targeted 11 licensing blocks offshore Tanzania in water depths between 200 metres and 2000 metres, but only Shell International participated, winning four blocks.
The third round which targeted seven licensing blocks saw Ophir Energy win three blocks, Statoil two blocks and Petrobras one.
Pan African Energy, Maurel et Prom and Ndovu Resources has so far commenced the second part of exploration following the discovery of gas and condensate in the first phase.
In the 4th licensing round TPDC says it will give priority to bidding companies that will be partnering with Tanzanians.
Responding to a question by The Citizen, Dr Hudson said it requires an investor to have at least $150 million (Sh240 billion) to drill a 35 trillion feet well in deep offshore.
By Veneranda Sumila.
Post a Comment