Kampala
24/10/07
 
SEARCH FOR ELUSIVE OIL HAS INTENSIFIED IN EAST AFRICAN COUNTRIES.

By Leo Odera Omolo
 
As the search for oil in East Africa intensified, Tanzania has also joined the league by inviting International oil exploration firms to tender for six concessions on a production sharing agreement (PSA) basis.
 
The managing director of Tanzania Petroleum Development Corporation, Yona Killigane was last week quoted as saying the 2007/2008 licensing round will make six blocks available for exploration, the first of which will cover the Lake Eyasi – Wembere, Lake Manyara and Lake Natron area.
 
Killigane further disclosed that the second block will cover the Ruhuhu area while the third will coverKilosa-Kilombero area.
 
The fourth block will cover South Seleas while the fifth one will cover Malagarasi area. The sixth block will cover South of Lake Tanganyika area.
 
Tanzania has proven a lot of natural gas basins and geologists, who have been studying the basins of East Africa extensively, believe the country’s potential for oil discovery is high.
 
Natural gas estimated at one trillion cubic feet (TCF) was discovered near Songo Songo Island and is being developed for power generation.
 
The Mnazi Bay has 500 billion cubic feet (Bcf) proven natural gas reserves.
 
In April this year, Tanzania signed a PSA with Statoil As of Norway for Petroleum exploration and production over block 2 on the eastern part of Mandawa Coastal Basin in an area covering 11,099 sq Kms.
 
Statoil as is an integrated oil and gas company from Norway with presence in 33 countries and active operations in 15 others, which include Egypt, Algeria, Libya, Nigeria, Angola, Iran, China, Indonesia, Azerbaijan and the United States.
 
Tanzania Energy Minister Nazir Karamagi was recently quoted by the local media as saying that Statoil As is expected to spend a minimum of USD 65 million during the entire exploration period of eleven years.
 
Karamagi said in the initial four-year period, the contractor will spend a minimum of USD 10 million for review of existing data and acquisition of 5, 800 kms of new seismic data.
 
There are three more PSAs which are currently being negotiated by the government and International oil firms.
 
At the same time four International oil exploration companies have won rights for oil exploration in the Ruvuma Basin in Northern Mozambique and are expected to invest an estimated USD 300 million and drill eight wells in the five blocks within eight years.
 
These are Canada’s Artumas Group, US-based Anandarke Petroleum Corporation, and Italy’s Enland patrons of Malaysia.
 
In the same Eastern African region Presidents Yoweri Kaguta Museveni of Uganda and Joseph Kabila of the Democratic Republic of Congo have agreed to collectively explore and use any oil found on the border by sitting up a joint commission.
 
The commission will among other things review the terms of the June 1990 oil exploration agreements between the two countries.
 
Uganda ’s State Minister for International Affairs Henry Okello Oryema said his country supported such undertaking as a way of easing out tension at the border.
 
There has been tension around the newly discovered oil well, which are located around Lake Albert in Western Uganda which in the recent past sparked intermittent shootings between the armies of the two countries causing death to both soldiers and Canadians.
 
A peace meeting called by the two countries but mouth flopped at the last minute when the Congo delegation failed to arrive at the agreed venue is was then hurriedly rescheduled for a suitable date in the near future.
 
Ends.
leooderaomolo@yahoo.com