Brazilian petroleum company Petrobras expects to start exploration in September for oil and gas off the coast of Tanzania, 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," Petrobras Tanzania chief executive Samuel Miranda said in a statement issued by the Tanzanian Prime Minister Mizengo Pinda's office.
Petrobras, which has invested $11 million in Tanzania, 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 following Tanzania's discoveries, and those of oil in Uganda.
Pinda and Miranda are on a visit to South Korea and are expected to preside over the launch of the ship, which will carry out exploration for a duration of 20 months. Tanzania has 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 in Tanzania are Oslo-listed Artumas Group Inc (AGI) , France's Maurel & Prom , Norway's Statoil , Royal Dutch Shell and Aminex. According to a research note by Citigroup, the East Africa region is expected to experience a pick-up in farm-ns and mergers and acquisitions to consolidate smaller players.
