TANZANIA: Increased Upstream Activity Expected Onshore in 2023

Tanzania is expected to see increased upstream activity in 2023 in all aspects including seismic, exploration drilling, development and production buoyed by improved oil prices and goodwill from the country’s political leadership.

Among the main licenses expected to see increased seismic acquisition include the Songo songo, Kiliwani north and the Nyuni licenses, with some ongoing data acquisition undertaken by African Geophysical Services (AGS).

Tanzania also expects a number of exploration and developmental wells in the next 12 months including the much-awaited Chikumbi-1 well although no wells are contemplated in the offshore licenses.

In production, most companies have already altered their earlier guidelines to indicate better than earlier reported expectations with the increase in demand from especially power generation and use in the industrial base expected.

There is also expected to be increased government negotiations with international oil companies involved offshore with the companies having already signed

the initial Host Government Agreement (HGA) with global energy majors Shell, ExxonMobil, Equinor and Ophir for the country’s $30 billion liquefied natural gas (LNG) project. The agreement, which defines the fiscal, legal and commercial terms for the onshore components of the project, kickstarts negotiations for the development that will see Tanzania unlock its over 57 trillion cubic feet of gas reserves.

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For more information on the ongoing construction of the East African Crude Oil pipeline download a copy of the UGANDA TILENGA PROJECT DEVELOPMENT STAGE & EAST AFRICA CRUDE OIL PIPELINE (EACOP) OUTLOOK 2021 – 2025 Here

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