Discussions Ongoing For New Drilling at Mnazi Bay Gas Field

On 30^th September 2024, the Petroleum Upstream Regulatory Authority (PURA) met with the operator of the Mnazi Bay Block Maurel et Prom Exploration Production Tanzania (M&P) in Dar es Salaam to discuss the drilling of three natural gas wells.

In the discussion, M&P provided clarifications on the proposed project budget before PURA authorizes the expenditure for the project which is expected to cost US$ 80.2 million and to be carried out early in 2025.

The project involves three wells including two (MB5 and MS2) production wells (infill) and one (Kasa) exploration well.

Drilling the three wells will enable the field to maintain a production plateau and facilitate the availability of more geological data regarding the reservoir in the Mnazi Bay block.

Currently, the environmental impact assessment for the project has been completed and the compensation for project-affected citizens is expected to begin soon after the verification exercise is finalized.

PURA directed M&P to ensure compliance with the local content legal and regulatory requirements and stated that it is monitoring the project’s implementation to ensure that Tanzanians and Tanzanian service providers are fully involved.

Tanzania’s Mnazi Bay Block

Tanzania’s Mnazi Bay onshore block located in the Mtwara region is operated by M&P Exploration Production Company holding 60% participating interests in production activities and the Tanzania Petroleum Development Corporation (TPDC) holding 40%.

The block has five wells that produce natural gas at an average of 74.24 million standard cubic feet per day as of September 2024.

The quantity of gas produced at Mnazi Bay Block constitutes 48% of total natural gas produced in Tanzania and is sold to various customers with the anchor customer being the Tanzania Electric Supply Company (TANESCO).

Recently, the Managing Director of TPDC, Mussa Makame mentioned that the recoverable reserve at the Mnazi Bay Block stood at 641 Billion Cubic Feet (BCF).