The State-owned Tanzania Petroleum Development Corporation (TPDC) has successfully acquired an additional 20% stake in the Mnazi Bay natural gas project, solidifying its total share in the venture at 40%. The deal, valued at $23.6 million, was finalized through a purchase agreement signed on February 10th with Etablissements Maurel & Prom SA, an oil company that holds an 80% stake in the project and maintains veto power over its operations.
Under the terms of the agreement, both TPDC and Maurel & Prom are set to make an initial investment of $100 million in 2024. This investment will be directed towards upgrading the gas compression infrastructure and enhancing drilling activities at the project site.
The Mnazi Bay natural gas project boasts proven resources amounting to 641 billion cubic feet of natural gas, with a daily production rate of approximately 120 million cubic feet. Notably, this field contributes significantly to Tanzania’s energy landscape, accounting for 48% of the country’s current gas output and supplying around 600 MW to the national power grid.
This strategic move aligns with Tanzania’s broader objective of increasing government participation in key projects while concurrently fostering growth in natural gas production and exports. The aim is to strengthen ties with neighboring countries such as Uganda, Zambia, Kenya, and the Democratic Republic of the Congo.
Tanzania’s President, Samia Suluhu Hassan, emphasized the importance of enhancing the government’s stake in successful projects, extending beyond the energy sector. “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,” President Hassan remarked during the signing ceremony.
