United Republic of Tanzania

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Tanzania has been exploring oil and gas for over sixty (60) years. To date, a total of ninety-five (95) exploration and development wells have been drilled in the coastal basins, deep sea, and inland basins. Currently, there are eleven (11) active Production Sharing Agreements (PSAs) which are operated by nine (9) Companies. Exploration, development, and production activities as well as HGA negotiations for the development of offshore resources through an LNG, are ongoing.
 
The first onshore natural gas was discovered at Songo Songo Island in 1974 followed by Mnazi Bay in 1982, Mkuranga in 2008, Ruvu in 2017, and Ruvuma in 2018. These discoveries amounted to 10.41 TCF of Gas Initial in Place (GIIP). Songo Songo and Mnazi Bay gas fields have been developed and are producing gas for power generation, industries, households, and CNG for vehicles since 2004 and 2006, respectively. Significant offshore gas discoveries amounting to 47.13 TCF GIIP were made between 2010 and 2014.
 
Following the enactment of the Oil and Gas (Upstream) Act No. 6 of 2016, Zanzibar started an exploration of oil and gas in 2016 by establishing two institutions namely; Zanzibar Petroleum Regulatory Authority (ZPRA) and Zanzibar Petroleum Development Company (ZPDC) as upstream sector regulator and commercial entity respectively. The Government of Zanzibar entered into a Production Sharing Agreement (PSA) with RAK GAS to explore and develop the Oil and Gas resources in Pemba – Zanzibar Block. The preliminary 2D seismic interpretation result has shown the presence of approximately 3.8 TCF of natural gas.
 

Tanzania Activity Map
Tanzania Activity Map


Open Acreage

The rift basins of Lake Tanganyika South, Kisangire, Mandawa, and deep sea relinquished blocks are currently unlicensed. On the other hand, the Government of Zanzibar has started the preparations for the first licensing round for the Eastern deep offshore area of Zanzibar to welcome new investors to Zanzibar.

 

TPDC Blocks

TPDC has earmarked five blocks (Eyasi Wembere, Mnazi Bay North, West Songo Songo, Lake Tanganyika, and Blocks 4/1B & 4/1C. The Government has shown its intention to award exploration licenses for these Blocks to provide TPDC with exclusive rights to undertake petroleum exploration on its own or through joint venture arrangements. In light of this, TPDC is conducting various studies to understand the hydrocarbon potential of these Blocks. Further, TPDC plans to drill the first exploration well in Mnazi Bay North Block in 2023. Based on the fact that exploration activities require high capital investment and high technology associated with operational challenges, TPDC invites a strategic partner with both technical and financial capability to execute the committed work plan in the exploration and development of the hydrocarbon resources in these Blocks.

 

Gas Production

Currently, Tanzania is producing about 218 mmscfd of natural gas from Songo Songo and Mnazi bay Gas fields for Domestic use mainly for Power Generation.

 

Midstream and Downstream

The Government of Tanzania built a National Natural Gas pipeline (551km) from Mtwara to Dar es Salaam and SongoSongo to Somangafungu with a capacity of 784 mmscfd of natural gas and two processing plants at SongoSongo and Madimba with a capacity of processing 350 mmscfd and gas receiving facilities at Somangafungu and Kinyerezi. Further, Tanzania has two processing plants owned by Songas and Maurel & Prom and TPDC with a capacity of 110mmscfd and 10 mmscfd respectively.

 

Gas Processing Plant, Madimba Mtwara
Gas Processing Plant, Madimba Mtwara


 
Additionally, there are other two transportation pipelines; one owned by Songas from Songo Songo to Dar es Salaam (232km) with a capacity of transporting 105 mmscfd, and another owned by M&P and TPDC from Mnazi Bay to Mtwara (27km) with a capacity of transporting 70 mmscfd.
 
The produced natural gas is utilized in Tanzania mainly for power generation where 1021.32 MW which is equivalent to 60.27% of the total country’s power generation is from natural gas. More than fifty-three industries and nine institutions use natural gas for heating and power. Furthermore, about 1379 households are connected with natural gas and more than 1000 cars use Compressed Natural Gas (CNG). The government of Tanzania is planning to distribute gas in other regions such as Morogoro, Dodoma, and Mwanza. Likewise, Tanzania considers expanding the natural gas transportation pipelines and distribution network locally and regionally to countries such as Uganda and Kenya.

Liquefied Natural Gas (LNG)

The LNG project is being implemented following significant deep-sea gas discoveries made in Tanzania offshore basin, in Blocks 1, 2, and 4. Currently, Government and International Oil Companies (Shell, Ophir, Pavilion, Equinor, and ExxonMobil) are in the initial stage of negotiating the Host Government Agreement for developing the discovered gas for domestic use and export through the LNG project. The LNG project will be implementnted in Lindi Region.  

 

East Africa Crude Oil Project (EACOP)

The Government of Tanzania through TPDC participates in the implementation of the East Africa Crude Oil Pipeline project with an estimated length of 1443 km from Kabale, Hoima - Uganda to Chongoleani, Tanga – Tanzania. In Tanzania this pipeline will cover 1147km passing through eight 8 regions (Kagera, Geita, Shinyanga, Tabora, Singida, Manyara, Dodoma and Tanga) and 24  districts (Misenyi, Bukoba Rural, Muleba, Biharamulo, Chato, Geita, Mbogwe, Bukombe, Kahama, Nzega, Igunga, Iramba, Mkalama, Singida DC, Kondoa, Chemba, Kiteto, Hanang, Simanjiro, Kilindi, Handeni, Korogwe, Muheza and Tanga City).

Tanzania participates in this project with a fifteen percent (15%) share. The other shareholders include Total Energies (62%), CNOOC (8%), and UNOC (15%). The project is currently under Early Civil Works (Coating Yard, Main Camps & Pipe Yards, and Chongoleani Marine Storage Terminal), Entitlement Briefing and Compensation for pipeline corridor, detailed final engineering designs and procurement of pipelines and long lead items, and project financing process.

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10th East African Petroleum Conference & Exhibition 2023 (EAPCE'23).
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