Search This Blog

Monday, 4 November 2013

Tanzania opens bids for gas exploration

Tanzania has invited bids for eight blocks and said late in October it would take a stake of up to 75% in each of the new production-sharing contracts. The country is a hotspot for natural gas exploration.

“The production-sharing formula will either be 35% to investors and 65% to the government or 25% to them and 75% to us,” Tanzanian President Jakaya Kikwete said.

Tanzania, which has made big discoveries of natural gas off its southern coast, is offering seven deep-sea offshore blocks and one block in Lake Tanganyika.

Kikwete said the government would consider selling stakes held by the state-run Tanzania Petroleum Development Corporation in production-sharing agreements to Tanzanians through initial public offerings.

Officials said the state-run development corporation will apply the rule on stakes during the development phase in oil and gas projects and will not participate during exploration.
Tanzania has so far signed 25 production-sharing agreements with about 17 international energy companies, including Royal Dutch Shell and Exxon Mobil.