Dominion Petroleum in Tanzania

In 2006, Dominion Oil and Gas Limited, a 100 per cent subsidiary of Dominion Petroleum Limited was awarded an exploration permit for (part) of the Selous basin. Dominion holds three Production Sharing Agreements (PSAs) in onshore Tanzania, namely Mandawa, Kisangire and Selous. These PSAs cover the Mandawa basin and half of the Selous basin (the Selous PSA being in the southern part of the Selous basin and Kisangire being in the northern part of the Selous basin). Besides the PSAs, Dominion Petroleum also has four licences. In 2011, the Tanzania government approved Dominion’s sale of 20 per cent of its working interest in deepwater Block 7, thus opening the way for Mubadala Oil & Gas, a division of Abu Dhabi’s Investment Fund, to inject $20 million into exploration activities in the block. In accordance with agreed upon terms, the company was expected to spend an estimated $71 million over the licence period conducting seismic surveys and drilling exploration wells. During the first four years of the first phase, the company was required to drill one well and acquire 500 line kilometres of seismic data.

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