According to Tanzanian Energy Minister January Makamba, CNOOC, the massive state-owned Chinese offshore oil and gas company, is planning to explore offshore Tanzania under an agreement with the local state firm. Tanzania, located on Africa’s eastern coast, is actively seeking to enhance the development of its natural gas resources. Recently, the country reached a deal with supermajors to construct a significant LNG export terminal.
CNOOC and Tanzania have a prospective agreement in progress to conduct seismic studies ahead of an offshore licensing round scheduled for 2024. The Tanzanian energy minister disclosed this information during a visit to China to discuss projects with CNOOC. The Chinese company, in collaboration with the state-owned Tanzania Petroleum Development Corporation, will carry out joint operations in the deep-sea blocks owned by TPDC.
These blocks are situated in close proximity to the extensive natural gas discoveries made by a consortium consisting of Shell, Equinor, and ExxonMobil. Last month, the three supermajors and the Tanzanian government finalized an agreement to develop an LNG export terminal. The initial deal encompasses the key components of a host government agreement and a production-sharing agreement.
Unni Fjaer, Tanzania country manager at Equinor, remarked that this agreement sets the stage for a series of subsequent milestones required to realize the country’s remarkable LNG opportunity, both domestically and internationally. Tanzania, along with other African nations, seeks to capitalize on the growing LNG demand in Europe, which is increasingly purchasing significant volumes of the super-chilled fuel as an alternative to Russian pipeline supplies.
The Tanzanian minister expressed confidence that there are more gas and potentially oil reserves waiting to be discovered, as only 30% of the area with potential oil and gas resources has been explored thus far. Oil and gas majors are actively pursuing additional deals in the Mediterranean and Africa to supply gas to Europe, as the continent aims to reduce its reliance on Russian gas by 2027.
Eni’s CEO, Claudio Descalzi, highlighted earlier this year that Europe should consider Africa as a vital source for a “south-north” energy axis in terms of gas deliveries. As the demand for energy evolves, Tanzania’s partnership with CNOOC and the development of its natural gas resources position the country favorably within the global energy landscape.
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