Tanzania Exploration Activities

 

Tanzania Activity Map

Tanzania has sedimentary basins, categorized into four tectonic morphological groups namely the Inland Rift Basins and Modern Rift System, Coastal and Continental Shelf Basins and the Deep-Sea Basins. It has a total surface area of about 947,300 km2 with coastal and inland basins covering 534,000 km2. These basins were formed during the rifting and drifting of the Gondwana. Petroleum systems have been identified in some of these basins including oil seeps and natural gas discoveries at Songosongo, Mnazi Bay, Kiliwani, Mkuranga, Ruvuma and Ruvu basins (onshore) and (offshore) blocks 1, 2, 3 & 4. All these indicate existence of working petroleum system.

The country has been explored over the last 60 years and most multinational petroleum companies were represented in the areas. Tanzania continues to update the existing geological and geophysical database to attract more investors. Exploration, appraisal drilling and pre-development activities for the Liquefied natural gas (LNG) project will continue in the year 2018/19.

To date more than 131,000-line km of 2D seismic have been acquired with over 93,000 km offshore and over 38,000 km onshore, including the interior rift basins and substantial coverage of over 37,000 km2 of offshore 3D seismic.

Tanzania has reserved blocks 4/1B & 4/1C for public interest and has officially shown the intension of awarding exploration licenses for the blocks to provide Tanzania Petroleum Development Corporation (TPDC) with exclusive rights to undertake petroleum exploration by its own or through joint venture arrangements. TPDC has advertised a tender to procure a contractor to acquire and process 3D seismic data over Block 4/1B to understand hydrocarbon potentials and locate the drillable prospect(s). Further, TPDC is in the advance stage of preparing tender bid documents for procuring a strategic partner in the blocks.

Tanzania has several open acreages both onshore and offshore; including Selous, Mandawa, Kisangire, Malagarasi, Lake Tanganyika North & South, East Pande, Rukwa North, Mtwara South, Luwegu, Lindi, and Tanga South Blocks. For offshore; open blocks include Block 5, 6, 7 & 8, 4-2A, 4-3A, 4-3B,4-4A,4-4B,4-5A, and 4-5B. The Government is evaluating the blocks using available geophysical and geological data. Once the evaluation process is completed, the government will announce a bidding round.

Tanzania has drilled a total of 96 wells both offshore and onshore with total discovered gas initially in place being 57.25Tcf of which offshore blocks 1, 2, 3 & 4 has 47.13Tcf while onshore blocks (Songosongo, Mnazi Bay, Mkuranga, Kiliwani, Ntorya and Mambakofi) has 10.28Tcf. The natural gas is locally used for power generation, industrial use, households and motor vehicles. Plans to export part of this gas to the neighboring countries are underway.

The Government of Tanzania has completed the construction of two natural gas processing plants in Madimba (Mtwara) and Songosongo (Songosongo Island), these processing plants are currently operational. Furthermore, the Government has completed construction of a 36-inch 487 km gas pipeline from Mtwara to Dar es Salaam to enhance gas utilization in Tanzania. The new infrastructure has increased the capacity of gas deliverability to customers by 784mmscfd. The project was commissioned in September 2015. It is expected that the natural gas will cater for the existing and future projects in Tanzania. In addition, the Government and international oil companies (IOC’s) are in the initial stage of LNG project where an LNG infrastructure has to be constructed onshore in order to process the offshore gas for export. 

Tanzania Onshore and Offshore Open Acreage Blocks

The current gas distribution network in Tanzania is mainly focusing in power generation in which 54% of country power is produced from natural gas.  37 industries and 2 institutions close to the gas infrastructure are connected to natural gas. Further, 70 households are connected to compressed natural gas. The planned next downstream project related to gas distribution is the proposed gas Network in the City of Dar es salaam, Lindi and Mtwara.

Tanzania considers expansion of the natural gas distribution network locally and regionally through TAZAMA and EACOP wayleaves.     

To commercialize discovered gas reserve, the Government of Tanzania has requested IOC’s partners for Block 1, 2 and 4 (deep sea Blocks) to cooperate in developing a joint LNG project which will form part of the Tanzania gas & LNG project.

The aim of LNG project from offshore fields is to liquefy and export gas for generating revenue and meeting domestic market demand. Five IOC’s committed to invest in the project are working with TPDC and the Government to ensure the success of the project. FID is expected by 2020 and first export ship by 2025 if all planned activities are executed within timeline as planned. There are six companies committed to this project: BG/Shell, Ophir, Pavilion, Statoil and ExxonMobil and TPDC.

The aim of LNG project from offshore fields is to liquefy and export gas for generating revenue and meet domestic market demand. Five IOCs committed to invest in the project are working with TPDC and the Government to ensure that this project is successful. The FID is expected by 2020 and first export ship by 2025 if all planned activities will be executed with timeline as planned. There are six companies committed to this project: BG/Shell, Ophir, Pavilion, Statoil and ExxonMobil and TPDC