As part of plans by the Tanzanian government to increase its participation in strategic projects, the East African nation, has doubled its stake in the Mnazi Bay natural gas field operated by Etablissements Maurel & Prom SA.
The two companies plan to invest $100 million in the project to expand gas compression infrastructure and boost drilling, according to Nicolas Engel, general manager of Maurel & Prom Tanzania.
On Saturday, TPDC signed an agreement with the French company to boost its share in the gas-producing prospect south of the country to 40%, after purchasing a 20% stake from the Paris-based company for $23.6 million. Maurel & Prom — before the latest transaction, controlled 80% of the Mnazi Bay gas field.
Tanzania’s president Samia Suluhu, is working to boost gas production of natural gas, and create pipelines that will export it to neighboring countries including Uganda, Zambia, Kenya and the Democratic Republic of the Congo in a bid to accelerate economic growth.
According to Mussa Makame, managing director of the Tanzanian oil operator, Mnazi Bay has proven natural gas reserves of 641 Bcf and currently produces around 48% of Tanzania’s gas.
Tanzania’s president, said that, the country, has a total recoverable natural gas reserves of 57.54 Tcf and needs to invest up to $550 million at the Mnazi Bay gas field alone to boost production.
“Our direction should be to increase the government’s stake in projects that are doing well, not just in energy but other sectors as well,” the president said in a speech at the signing ceremony.
