Tanzania makes a big onshore natural gas discovery

Tanzania makes a big onshore natural gas discovery

Tanzania makes a big onshore natural gas discovery. New natural gas reserves promise to benefit the local population.

East Africa embraces new construction technology
Tanzania struggles to impose VAT on tourism industry
Helium gas field found in Tanzania

New natural gas reserves promise to benefit the local population.

Background

Tanzania is in East Africa and is one of the poorest countries in the world, it first become known as the United Republic of Tanzania in 1964 following both German and British rule. The capital city is officially Dodoma however the former capital Dar es Salaam remains the largest city, and home to the majority of the government buildings, as well as the major port.

More natural gas discovered

The most recent reserves of natural gas found in the Ruvu basin were originally discovered in July 2015, however the announcement has only just been made public due to the new petroleum act of 2015 and the fact that the country was going through a political transition at the time.

The additional 2.17 trillion cubic feet found, worth approximately $6 billion US dollars, means that their total reserves are now approximately 57 trillion cubic feet, this is made up of a combination of onshore and offshore deposits.

Ruvu basin

The Ruvu basin is in a coastal part of Tanzania. The land on which the new deposits have been found is currently licensed to the Dodsal Group. This was part of the Petroleum sharing agreement made between them and the Tanzania Government in 2007.

Ruvu is ideally located as it is only 17km from Dar es Salaam, a city with a very high reliance on electricity, both domestic and industrial.

Dodsal Group

Dodsal Hydrocarbons & Power Tanzania Limited is a subsidiary of Dodsal Resources, a company based in the UAE and owned and chaired by billionaire Dr Regan Kilachand. To date they have drilled three wells, all in coastal areas of Tanzania; Mbuyu, Mtini and Mambokofi. They began their explorations in the Ruvu basin in 2007.

Commitment to the local population

Dodsal have committed to invest $50 million in the next 12 months and have stressed that they will ensure their developments benefit local people. Additionally, the Tanzanian government have pledged $6 million to compensate the 450 people that are going to be displaced when the new facility is built.

COMMENTS

WORDPRESS: 0
DISQUS: 0