Tanzania makes more gas finds off Dar coast

 Tanzania's President John Magufuli. His government has slapped stringent restrictions on all diplomatic, consular missions and international organisations meeting with its officials as well as political leaders in the country. PHOTO | AFP

By HENRY MWANGONDE

In Summary

• This is the biggest onshore gas discovery in Tanzania and the third significant discovery after Mnazi Bay and Songo Songo in Mtwara and Lindi regions.

About 2.17 trillion cubic feet of natural gas reserves have been discovered in Tanzania’s Coast Region, the government has confirmed.

Energy and Minerals Minister Sospeter Muhongo said the discovery was made last July at the Ruvu Basin onshore block.

The announcement was delayed because the country was going through a political transition and the Oil and Gas Revenues Management Act 2015, which gives the minister powers to make such a declaration, was not yet operational, according to Prof Muhongo.

This is the biggest onshore gas discovery in Tanzania and the third significant discovery after Mnazi Bay and Songo Songo in Mtwara and Lindi regions.

Prof Muhongo said the discovery is a big boost to the country’s efforts to develop reliable energy sources.

Pilavulathill Surendran, CEO of Dodsal Hydrocarbons and Power (Tanzania) Ltd, which is conducting gas exploration in Ruvu Basin, said the discovery was made in three wells drilled by the company, adding that there was a possibility of more gas being discovered in the area.

Start of oil exploration

The company started oil exploration at Ruvu in 2007 after signing a production sharing agreement with the government and acquiring possession of an onshore oil and gas concession called the Ruvu Block, located 30km west of Dar es Salaam.

The firm plans to increase its investment in the country by injecting an additional $50 million into its operations in the next 12 months.

According to the Ministry of Energy and Minerals, natural gas reserves discovered in the country increased by 18 per cent to 55.08tcf in April 2015 from 46.5tcf in June 2014.