Saturday , February 24 2024

Petrodel Resources Ltd announces intention to develop the Tanga, Kimbiji and Latham Blocks

Petrodel Resources Ltd, a major energy business specializing in the exploration and production of oil and gas deposits, has announced plans to restart operations in Tanzania. The Tanga, Kimbiji, and Latham licenses in Tanzania were purchased by Petrodel in 2006. Petrodel is primarily interested in natural gas extraction from all three fields. Afren and Heritage Oil, Petrodel’s former partners, are no longer participating, and Petrodel now owns all three companies outright.

Tanzania is home to sub-Saharan Africa’s second-largest gas resources, with reserves estimated at 57.5 trillion cubic feet. Past uncertainty over the investment landscape has meant that these reserves have remained largely untapped. However, Petrodel believes investor confidence has improved following the coming to office of President Samia Suluhu Hassan.

Commenting on Petrodel’s decision, Michael J. Prest said the time is right to accelerate Petrodel’s operations in Tanzania.

“As we travel the energy transition journey, the current global demand and supply balance mark that the time is right to accelerate Petrodel’s operations in Tanzania, the combination of that and the positive sentiments coming from the new Tanzanian Government make further development of these prospects very real. I believe the stable investment platform being created by President Samia Hassan is a good omen for both Tanzania and Petrodel. We look forward to engaging with the Government to realise these opportunities.”

Petrodel will invest approximately USD 80 million to meet first well commitments in Tanga and a combined total of USD 20 million to complete final and additional seismic work in both Kimbiji and Latham to bring the fields into production. It is estimated that the required infrastructure to be in place will take two years. Production and shipments of gas are expected to commence in 2025. All three fields will require significant labour forces and should provide much-needed employment opportunities for the surrounding regions.

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