Overview of Gas Exploration and Production in Tanzania

By April 2014, the Tanzania Petroleum Development Corporation (TPDC) had awarded 25 exploration licences—17 on-shore and eight off-shore licences—to 17 operating oil and gas companies, according to the former Minister of Energy and Minerals Prof. Sospeter Muhongo. Up to July 2014, 81 deep exploration wells had been drilled. The biggest discoveries of natural gas have so far been made in deep water off-shore blocks where the BG Group in partnership with Ophir Energy, and Statoil in co-operation with ExxonMobil, have since 2010 discovered recoverable gas resources totalling 25 to 30 trillion cubic feet. Natural gas production has so far been confined to two gas fields of Songo-Songo and Mnazi Bay.

=Natural Gas Exploration= By July 2014, Tanzania’s gas exploration blocks were licensed as follows (according to operators):

=Natural Gas Production= Tanzania’s existing gas producing fields are small and it took decades for them to begin commercial production due to infrastructural problems, lack of a local market and the impracticability of export-related production because of limited reserves. The Songo-Songo field, which is operated by Pan African Energy, is currently run at production levels of up to 110 million cubic feet per day (mmcf/d). The field has been in production since 2004. It provides gas to generate a significant proportion of Tanzania’s electricity. Its gas is used by a number of industrial and commercial customers in Dar es Salaam. The Mnazi Bay field began delivering gas in January 2007 through a 17-mile pipeline to the 12 MW Mtwara electric power station. It is currently operated by Maurel et Prom in partnership with Wentworth Resources and the TPDC. On 12 September 2014, the partners signed a Gas Sales Agreement with the Tanzania government to deliver up to 130 mmcf/d of natural gas from the Mnazi Bay concession to a new government-owned Mtwara-Dar es Salaam Gas Pipeline that is expected to be operational by 2015.

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