Zanzibar: Disclosed Two Onshore Oil and Natural Gas Exploration Blocks Enticing Local and Multinational Enterprises

By Abdul Rahman Bangura-

NEW AFRICA DAILY NEWS (NADN) Freetown, Sierra Leone– The disclosure ensues six months after the lift-off of the primary round of offshore oil and gas exploration blocks, which were divulged by the President of Zanzibar, Dr. Hussein Mwinyi.

The Minister for Blue Economy and Fisheries, Shaaban Ali Othman, remarked in a statement on September 27th, 2024 that the current blocks were established from the Pemba-Zanzibar block, which was disembarked to the administration after the license held by a United Arab Emirates (UAE) oil and gas company Rakgas expired.

“The former Pemba-Zanzibar block has been divided into two: Zanzibar Block 1, covering 6,572 square kilometers, and Zanzibar Block 2, covering 6,242 square kilometers,” the Minister noted in the statement.

He remarked that, giving the blocks through negotiation corresponds with Zanzibar’s strategic vision to attract investment in oil and gas exploration and to strengthening the island’s natural resources.

“Both the Zanzibar Development Plan (ZADEP 2021/26) and the 2022 Blue Economy Policy stressed in pursuing oil and gas exploration in Zanzibar and partnering with international oil and gas companies (IOCs) in the activities,” Othman noted.

Glancing the eight offshore blocks disclosed in March, he noted that, the Administration is still accepting applications, with crucial interest from global oil and gas companies. Thus, he did not publicize the number of companies that have applied so far.

The first deadline for applications for the offshore blocks was September 2024 but has been extended to December 2024.

“We are open to discussing opportunities with anyone ready to invest in the onshore oil and gas sector,” the statement furthered.

The Ministry’s Permanent Secretary – Hamad Bakari Hamad, bolstered, the Ministry’s venture to assuring the sector is fully utilized for the benefit of the nation and its people.

The Administration of Tanzania in partnership with oil and gas companies have discovered a total of 57.54 trillion cubic feet (TCF) of natural gas from different blocks. That includes 10.41 TCF from onshore wells and 47.13 TCF discovered offshore. The natural gas is currently utilized mainly for electricity generation, industrial consumption, domestic use and a little bit for fuel in gas-powered vehicles.

About 53.2% of the electricity was being generated through natural gas, according to the Energy budget speech, while hydropower plants account for 43.1%. Oil contributed 3.7%, the Ministry noted.

New Africa Daily News Abdul Rahman Bangura Reports, Africa Correspondent