The Norwegian oil firm-Statoil AS has acquired a block to start petroleum exploration and production in Tanzania.
The exploration and production activities will start next month (June).
The contractor, Statoil AS is expected to spend a minimum of US$65 million during the entire exploration period of 11 years. Mr. Jan Vollset, Chairman of the Board of Statoil AS told Business Week in Dodoma that in the initial four year period, the contractor will spend a minimum of $10 million for review of existing data and acquisition of total 5800 kms of new seismic data.
Vollset said that the exploration operations over Block 2 will commence shortly after review of the existing data in the area.
The Statoil block which is on the eastern part of Mandawa Coastal Basin has an area of 11, 099sq km.
"During the first extension which is a period of another four years, our firm will spend a minimum of $30 million to drill an exploration well," he said adding that in the second extension period which is a period of three years, the contractor will spend a minimum of $25 million to drill one exploration well.
Statoil AS is an integrated oil and gas company from Norway with representation in 33 countries and active operations in 15 countries including the North Sea, Iran, China, Indonesia, Azerbaijan, and U.S.A while in Africa the firm is represented in Angola, Algeria, Libya, Nigeria, Egypt and Tanzania.
The firm was invited to negotiate with the Government of Tanzania for Block 2 of the Deep Sea after winning the bidding round.
Mr. Yona Killagane, managing director of the Tanzania Petroleum Development Corporation (TPDC) told this reporter in Dodoma last week that the entry of Statoil AS in Tanzania brings the total number of active Production Sharing Agreements (PSAs) in Tanzania to 17.
Killagane said the entry of Statoil as an investor in Tanzania is a manifestation of the longstanding relationship between Norway and Tanzania in oil exploration and development, dating back to 1975.
"There are three more PSAs being negotiated by the Government and TPDC for Deepsea Block 7, the northern part of Lake Tanganyika and the onshore Ruvu area," he said.
TPDC is a state owned firm with a role to oversee the operations of AGIP, the only concession holder then working in the country.
Following the discovery of the Songo Songo Gas field, and subsequent relinquishment by AGIP, TPDC undertook the confirmation of the gas field, and eventual appraisal.
The firm undertook the function of the sole importer of both white and crude petroleum products and marketing but with the onset of economic liberalisation, the oil marketing operations ceased in the year 2000.
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