East African Business Week

DAR ES SALAAM, TANZANIA - Discovery of oil in Uganda and natural gas in Mozambique close to the Tanzania border, has sparked interests by major oil and gas prospectors to scramble for acquisitions of oil blocks in this country.
The Tanzania Government last week signed two 'Production Sharing Agreements' (PSA) with Aminex Plc and Heritage Oil Plc to explore for oil and gas in Lake Rukwa in south western Tanzania and Nyuni-Songosongo in south eastern Tanzania.
According to the Minister for Energy and Minerals, Mr William Ngeleja, Aminex Plc will undertake oil and gas exploration at Nyuni-East Songosongo and about US$75.3 million will be injected in the project while Heritage will explore for oil and gas in Lake Rukwa block where the firm is expected to invest $66.5 million in the project.
"The terms of the PSAs cover eleven years which are divided into three sub-periods," said the Minister.
The signing of the agreements with Aminex Plc and Heritage Oil Plc brings the number of exploration companies already on the ground to 17, the highest number since exploration of oil and gas started in the country in the 1950s.
Most of the exploration companies that are currently investing in exploration for oil and natural gas in the country originate from Australia, United Kingdom, France, Brazil, Norway, USA, Canada and UAE.
Ngeleja said though Tanzania has yet to produce a commercially viable oil find, investors should be confident of high likelihood to discover oil because of  an assuring geodata.
"Tanzania has similar geographical structure with Uganda and Mozambique where discovery of oil has been made; therefore exploration firms should be confident that there is a possibility that Tanzania has oil," said Ngeleja.
He said the Government is in new talks for six more 'Production Sharing Agreements' (PSAs) with international exploration companies to undertake oil and gas in different prime places of the country.
He said that discussions are at different stages and if successfully concluded, these PSAs will cover Deep-sea Block 8, Lake Tanganyika area (northern area), Kyela, Ruhuhu, Mikumi and Pangani.
"The Government is committed to continue promoting exploration for oil and gas in the country.
“This being one of the principle objectives of our National Energy Policy which aims at ensuring that the country receives a reliable supply of energy and to all parts of the country at low cost and with due regard to the environment," said Ngeleja.