During the latest Oil &Gas conference taking place in Dar Es Salaam, Deputy Minister of Energy and Minerals George Simbachawene announced that official estimates of recoverable natural gas reserves were raised from 28.74 trillion cubic feet (tcf) to 33 following latest large offshore discoveries.
Mr Simbachawene told that “These [natural gas] discoveries are an indication that Tanzania is now becoming one of the natural gas hubs and a new frontier in oil and gas exploration in the east Africa region and the world at large”.
He also indicated that the Government of Tanzania prefers to develop the oil & gas sector via the use of Product Sharing Agreement (PSA) because this deal structure attracts Foreign Direct Investment while ensuring state ownership of the resources.
The government of Tanzania is preparing the country’s economy for a significant increase in the country’s foreign investment inflow following the recent discoveries of natural offshore Tanzania gas deposits.
According to a number of sources within the next five years Tanzania is expected to receive massive amounts of investment capital that if properly managed will redefine the country’s economy.
