Petrobras plans oil exploration offshore Tanzania

July 07, 2011 | Africa, Budget & Investment

Petrobras_oil_platform

Brazilian petroleum company Petrobras expects to start exploration in September for oil and gas off the coast ofTanzania, which is known to have significant gas deposits.

Patrobras has a production sharing agreement licence for Block 5 and 6 deep offshore basin off Tanzania and plans to launch the Poseidon, a new exploration vessel, in South Korea, which is expected in Mtwara, south east of Tanzania.

“This ship will be in Mtwara and we hope to start work at the start of September,” PetrobrasTanzaniachief executive Samuel Miranda said in a statement issued on Thursday by the Tanzanian Prime Minister Mizengo Pinda’s office.

Petrobras, which has invested $11 million inTanzania, and plans to spend another $14 million to develop Mtwara port, said the ship will carry out exploration for a duration of 20 months.

Tanzania’s government puts the east African country’s proven natural gas reserves at 7.5 trillion cubic feet.

There has been increasing interest in exploration for oil and gas in east Africa followingTanzania’s discoveries, and those of oil inUganda.

Pinda and Miranda are on a visit toSouth Koreaand are expected to preside over the launch of the ship on Friday, which will carry out exploration for a duration of 20 months.

Tanzaniahas licensed at least 17 international companies exploring for both offshore and onshore energy sources in the country, the region’s second-largest economy.

Among other firms that hold exploration blocks inTanzaniaare Oslo-listed Artumas Group Inc (AGI) ,France’sMaurel&Prom,Norway’s Statoil , Royal Dutch Shell and Aminex .

According to a research note by Citigroup, theEast Africaregion is expected to experience a pick-up in farm-ins and mergers and acquisitions to consolidate smaller players.