TANZANIA GOVERNMENT RECEIVES OIL TENDER BIDS

Yona Killagane, TPDC Managing Director.

IN SUMMARY

• Executives at the state-run agency said the bidding is for seven open blocks in deep sea and Lake Tanganyika North. It is significant because of the high probability of finding oil.

Tanzania Petroleum Development Corporation (TPDC) is evaluating documents from five companies that submitted bids for the fourth deep sea, offshore and Lake Tanganyika North licensing round.

Executives at the state-run agency said the bidding is for seven open blocks in deep sea and Lake Tanganyika North. It is significant because of the high probability of finding oil.

“Our neighbours in Uganda have discovered oil in Lake Albert and Lake Tanganyika lies in the same basin. This gives us hope that what has been discovered in Lake Albert can also be discovered in Lake Tanganyika,” said George Ngwale, the senior principal petroleum geologist at TPDC.

The TPDC website lists companies whose tenders are being evaluated as China National Offshore Oil Corporation (CNOOC), which has applied for Block 4/3A (2,620 square kilometres), Ras Al Khaimah Gas fron UAE, which has bid for Lake Tanganyika North (6,970.2 square kilometres) and Statoil and ExxonMobil from Norway and the US respectively, which have applied for Block 4/3A (2,620.3 square kilometres).

Others are Mubadala from the UAE, which has submitted bids for Block 4/2A (3,630 square kilometres) and Gazprom of Russia which is seeking Block 4/3B (3,045 square kilometres).

Yona Killagane, the managing director of TPDC, said all bid documents were being evaluated.

“The announcement of the bid winners will follow immediately after the evaluation, which will be within the bid validity period as stipulated in the instructions.

Successful bidders will be invited for negotiations for production sharing agreements (PSAs) with the government and TPDC,” he said. 

With current discoveries confirmed at 46.5 trillion cubic feet (tcf) and exploration showing promising results, Tanzania is poised to be a gas giant in the region. 

“This calls for proper planning on how to efficiently utilise this resource. We also need public awareness to help people understand the benefits of the discoveries and where they fit in this complex industry,” Mr Killagane said.

He said that plans were underway to ensure that the gas is also used for domestic purposes so as to directly benefit local people.

Mr Killagane called on East African countries to develop common instruments for dealing with energy, to help them develop the sector. “We need to co-operate in exploration activities. We need to exchange information so as optimise our resources,” he said.