China’s CNOOC is planning offshore oil and gas development in Tanzania in partnership with the state-owned Tanzania Petroleum Development Corp.
This move comes as Tanzania aims to enhance the development of its natural resources.
According to Tanzanian Energy Minister January Makamba, the collaboration will focus on deep-sea blocks 4/1B and 4/1C, which are currently held by TPDC.
These blocks are situated near substantial gas fields that were discovered by a consortium of international energy companies including Equinor ASA, Shell Plc, and Exxon Mobil Corp. The consortium plans to construct a $42 billion liquefied natural gas terminal.
Tanzania intends to launch an oil and gas licensing round in the first quarter of 2024 to attract more investors.
This effort aligns with the actions of European nations, which are seeking to diversify their energy sources and reduce dependence on Russian gas.
The exploration for hydrocarbons in Africa has steadily increased since a decline in 2020, when only one drilling operation was active in African waters.
President Samia Suluhu Hassan of Tanzania has resumed negotiations with major oil companies regarding the onshore LNG terminal and has implemented economic reforms.
These negotiations concluded in May, clearing the way for the signing of agreements for the project.
