AS reported in the October edition of CBN, p10, entitled ”Hurry up and wait –we need to wake up!”, the inordinate delays by Government in giving clear direction by way of The Gas Master Plan, and The Gas to Power IPP Programme, has caused industry vendors to look elsewhere to neighbouring countries for opportunities.
As a consequence, SAOGA (The SA Oil and Gas Alliance) is planning an Oil, Gas and Energy focused visit to Zanzibar and Tanzania the week of 19th to 23rd November 2023.
Speaking to CBN editor Robin Hayes, Alain Kerr, responsible for Business Development and Marketing at SAOGA and organiser of this exciting Outward Business Trade Mission to explore opportunities, concurred with the delays and is asking for interested parties wishing to join the Trade Mission to contact him directly for more information – email akerr@saoga.org.za .
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SAOGA sees the potential in Tanzania and Zanzibar, with a specific emphasis on the Oil, Gas & Energy Sector, where substantial upcoming projects are underway. “As indicated in a recent Stanbic Bank report, the anticipated expenses for upstream activities in these projects amount to USD 15.6 billion, while the construction of the LNG facility is estimated at USD 17.1 billion” Kerr explained.
“The proposed LNG facility is set to be situated in Lindi, along the southern coast of Tanzania, strategically adjacent to confirmed offshore gas reserves totalling 1.7 trillion cubic meters (60 trillion cubic feet).
“A consortium comprising Equinor, Shell, ExxonMobil, Ophir Energy, and Pavilion Energy is actively developing the plan for the Tanzania LNG project, with the Final Investment Decision (FID) anticipated to be reached in 2025.”
Also, says Kerr, Zanzibar is aggressively diversifying its economy by opening new oil and gas development zones for bids, aiming to reduce its heavy reliance on tourism, which currently makes up over 25% of its GDP. President Hussein Mwinyi’s $2.4 billion plan, unveiled last February, focuses on boosting shipping, advancing oil exploration in the region. The recent bidding of 12 blocks follows a successful analysis of oil and gas data conducted by Schlumberger, initially provided by the United Republic of Tanzania. The government’s proactive approach aligns with its vision of creating a sustainable and robust economy that benefits from both its natural resources and the potential of the blue economy.
“Things are really picking up on the east coast and we best be there searching for opportunities than be left behind” says Kerr.
