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Oman-based ARA Petroleum Llc was on September 10 formally commissioned on the Ntorya gas field in southern Tanzania, which is believed to hold an estimated 1.6 trillion cubic feet of gas. It is expected to start production within a year under a USD180 billion agreement with the State-run Tanzania Petroleum Development Corporation.
Tanzania has given its first license to a natural gas project in 13 years as it looks to fast-track the development of significant resources in the sector, amid concerns that the slow pace by authorities in sanctioning new investments may be blocking progress.
Oman-based ARA Petroleum Llc was on September 10 formally commissioned on the Ntorya gas field in southern Tanzania, which is believed to hold an estimated 1.6 trillion cubic feet of gas. It is expected to start production within a year under a USD 180 billion agreement with the State-run Tanzania Petroleum Development Corporation.
This made ARA the first multinational gas investor to secure a license since 2011, and the fourth overall, as negotiations with a slew of other investors for similar gas extraction projects have remained bogged down by delays in reaching an agreement.
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Other foreign investors currently under license to operate gas development projects in Tanzania are Pan African Energy of Mauritius and France’s Maurel Et Prom in Songosongo and Mnazi Bay in Lindi and Mtwara respectively, and Ndovu Resources Ltd, also in Songosongo island, off the Indian Ocean coastline.
