The Chinese company Cnooc Ltd. is planning offshore oil and gas exploration with state-owned Tanzania Petroleum Development Corp. as the East African nation looks to boost development of its natural resources.
The joint work will take place on TPDC’s deepwater Blocks 4/1B and 4/1C, according to Tanzanian Energy Minister January Makamba. The acreage is located near large gas fields discovered by a consortium of international energy companies led by Equinor ASA, Shell Plc and Exxon Mobil Corp. who plan to build a $42 billion liquefied natural gas terminal.
“There is also an agreement in the works” between Tanzania and Cnooc to conduct seismic surveys on unassigned blocks ahead of a licensing round next year, Makamba said by phone from China on Wednesday after talks with senior officials of Cnooc.
Tanzania wants to launch an oil and gas licensing round in the first quarter of 2024 to attract more investors as European nations move to diversify energy sources and reduce dependence on Russian gas. Hydrocarbon exploration in Africa has grown steadily since a dip in 2020, when only a single rig was operating in African waters.
Tanzanian President Samia Suluhu Hassan has revived negotiations with oil majors for an onshore LNG terminal and has introduced economic reforms. The talks closed in May and paved the way for the signing of agreements for the project.
A model production sharing agreement is also being reviewed to attract more activity, the minister said.
The country has recoverable natural gas reserves of more than 57 trillion cubic feet, according to Energy Ministry estimates.
“We believe Tanzania has more gas, and possibly oil, to discover because only 30% of the area with potential for oil and gas resources has been explored so far,” Makamba said.
