January 26, 2024
Tanzania Petroleum Development Corporation (TPDC), a state-owned company, has purchased an extra 20% share in the Mnazi Bay natural gas field. The deal whose value stands at $23.6 million, increases the TPDC’s stake in the project to 40%.
On February 10, the TPDC signed a purchase deal with oil company Etablissements Maurel & Prom SA, which owns an 80% share in the field and has veto authority over project operations.
Originally, Maurel & Prom, TPDC, and Wentworth Resources shared ownership of the Mnazi Bay field. Following Wentworth Resources’ decision to sell its 31.9% holding, Maurel & Prom agreed to buy Wentworth’s shares, and TPDC exercised its right to buy a portion of Wentworth’s shares, increasing TPDC’s ownership.
In connection with the deal, TPDC and Maurel & Prom have agreed to invest USD 100 million to upgrade gas compression facilities and increase drilling activities. This project seeks to improve the field’s production capabilities, which are critical to Tanzania’s energy supply and economic growth.
With proven resources of 641 billion cubic feet of natural gas and a production rate of around 120 million cubic feet per day, the field accounts for 48% of Tanzania’s current gas output and supplies over 600 MW to the country’s national power system.
Source: Energy Ghana