The brighter days ahead for Tanzanian Gas Sector
In order to understand the present scenario in Tanzanian oil and gas sector, it is important to take a traditional outlook from where our country is coming from
The past scenario for Tanzanian oil and gas sector
The 1950s- BP and Shell drilled and discovered dry hole
In1969-TPDC was established by government to help develop and handle oil and gas sector and also offered exploration permits with government and could get into partnership with foreigner associates through Production sharing agreement
In 1969-AGIP began discovery offshore after finalized production sharing contract with TPDC
The 1970s- The nation was not easy to attract foreign companies that would provide know-how and financial commitment this was because of inadequate facilities and being far away from market
In 1974- Gas deposits was discovered at songo songo area (but was not commercial v viable)
The 1980s- Shell and variety of foreign companies did seismic and sunk hole onshore and offshore
In 1982- Another Gas reserve was found in Mnazi Bay
In 1983- There was low oil price and, for this reason, it become more difficult than ever to draw in worldwide investors.
The 1990s- The work a project based on the 1974 Songo Songo gas area began evolving
In 1992-Tanzania released a variety of power change projects, such as a National Energy Policy, which began out up kind of market participation in creating electricity
In 2004-little production began at songo songo field
The Current circumstances for Tanzanian oil and gas sector
Despite the recent low oil price, Tanzanian oil and gas sector has enhanced considerably over the last several years.
For long, it could not create its gas sources because the discoveries were not considered for commercial viable.
The foreign oil companies that had capability were simply not fascinated in making a financial commitment.
The first significant project, the Songo Songo gas-to-electricity project, only came into being with contributor assistance.
Nowadays, a variety of oil and gas companies working in Tanzania, such as some of the giant oil player.
The nation, therefore, is based less on growth assistance for enhancing the oil market.
The change of the whole lawful and management structure that controls oil sources, which is continuous, indicates to a come back to a more effective part of the state.
The completions of Mtwara- Dar es salaam gas pipeline project in Oct 2015 plus the LNG place plan could put Tanzanian oil and gas sector t in the next level.
The attempt has been done by the govt to build up local content indication many Tanzanians would have fun with the whole sequence of oil and gas sector and the resources would benefit people and nation in common at the time production starts which is predicted at least in 2022.
There brighter days ahead for Tanzanian oil and gas sector
Hussein Boffu
Recent Graduate in Petroleum Geoscience
Hussein.Boffu@Tanzaniapetroleum.com
0655 37 65 43/0689955711
