The discovery has been made at a block operated by Dodsal Hydrocarbons and Power Tanzania Limited owned and chaired by UAE-based billionaire, Dr Rejan Kilachand.

 

It brings the sum of proven natural gas reserves to 57.27 tcf in both offshore and onshore wells. Officials of the company estimate that the reserve is worth 6 billion US dollars (about 12 trillion/-).

 

Dodsal Chief Executive Officer (CEO) Mr P.K Surendran made the announcement during a meeting bringing together investors in the gas and oil industry, which was convened by the Minister for Energy and Minerals, Professor Sospeter Muhongo.

 

Prof Muhongo confirmed the discovery, which he said was made in July last year, but was quick to add that the government delayed to make the announcement due to new requirements of the Petroleum Act 2015.

 

"The new legislation requires that before the responsible minister makes the pronouncement of a new finding he/she should be guided by the Petroleum Upstream Regulatory Authority (PURA).

 

"My ministry has been in contact with the Attorney General's Chambers since then and the good thing is that PURA started operations yesterday (Tuesday).

 

We, therefore, hope that the official announcement will be made in a few days to come," Prof Muhongo explained. The Petroleum Act 2015 repealed The Petroleum (Exploration and Productions) Act, 1980 and The Petroleum Act, 2008.

 

Apart from the new finding, gas reserves have as well been discovered in Songo Songo Island in Lindi Region, Mnazi Bay in Mtwara and Mkuranga in Coast Region.

 

Mr Surendran said the company signed a Petroleum Sharing Agreement (PSA) with the Tanzania Petroleum Development Corporation (TPDC) in 2007 after which it started a seismic study of the licensed block. Dodsal Hydrocarbons and Power Tanzania Limited is a subsidiary of Dodsal Resources based in Dubai.

 

So far, the firm has drilled three wells at Mbuyu, Mtini and Mambokofi in the exploration area in Coast Region. "Exploration is still ongoing and we are optimistic of striking more natural gas reserves in the Ruvu Block.

 

We used local talents and resources in the search and the success is beyond our expectations," he later told 'Daily News' on the sidelines of the meeting.

 

He was more positive of reliable market for the hydrocarbons given the fact that Ruvu is just 17 kilometres away from Dar es Salaam city, which is the major market of the resource for electricity generation, industrial production and domestic use.

 

The Chairman of Dodsal Group, Dr Rajen Kilachand, said the company is currently planning appraisal and development activities to bring the gas to the market for the benefit of the people.

 

"At this moment of success, I wish to sincerely thank the Ministry of Energy and Minerals and TPDC as well as other stakeholders for the cooperation and support rendered to us," Dr Kilachand said in a statement read by the CEO.

 

Earlier, Prof Muhongo directed companies engaged in the oil and gas industry to present to the ministry with practical work plans on how they will play a part in boosting power generation to meet the target of 10,000MW by 2025.

 

"The gas economy should make us graduate to middle-income economy by 2025 as stipulated in Tanzania Development Vision 2025. This will be possible when we have adequate and reliable electricity in the economy," the minister stressed.

 

He thus urged the companies to present the plans to the ministry by June 1 this year, noting that the aim is to enhance power per capital to between 2,000 and 3,000 per annum from the current 180 units.

 

Prof Muhongo noted on the other hand discussions with a consortium planning to set up the 60 billion US dollars were well underway.

Source : allafrica.com