Petroleum Africa
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Thursday, August 28, 2008
Earlier this month reports were bandied about regarding the launch of a new bid round for Tanzania in 2009, if the 2007 bid round did not produce the desired results. Petroleum Africa contacted Halfani R. Halfani, Exploration Director of state-run Tanzania Petroleum Development Corporation (TPDC), to get the latest information from the Tanzania E&P arena.
Last year TPDC put six onshore blocks up for tender and received eight bids from six companies. Halfani said that currently TPDC is in the negotiation stage with the bidders.
“TPDC is at the negotiations stage at the moment, and we will make the outcome public as soon as the negotiations are wrapped up, whichever way it will be,” Halfani said. “These areas are very virgin indeed and TPDC looks forward to negotiating with the companies.”
The company is looking for specific criteria before awarding the blocks, not the least of which is a competent exploration proposal. Halfani said that so far as the model production sharing agreement (PSA) is concerned, it should involve a drilling commitment within the time span of the PSA. “The companies should add geological value from an exploration standpoint, and geology permitting, enable the companies and TPDC to determine the prospectivity and the presence or otherwise of hydrocarbons in the respective areas.”
The southern Selous block, due to what can only be termed as environmental complications, received no bids in the earlier bid round. Dominion Petroleum has access to the Northern Selous Block; however, it has not made much progress.
“Over the last two years, TPDC and the Dominion have been working with the Government on environmental issues related to working in the northern Selous license in a manner that will be environmentally friendly. As such, Dominion has had no access to the exploration area, not for acquisition of new seismic data. This fact is widely known among prospective companies interested in working in Tanzania. Until the matter is resolved [environmental concerns addressed prior to exploring in a sensitive area], and adequate assurances given, and a seismic crew allowed, I am afraid no company will look at the southern Selous block,” Halfani told Petroleum Africa.
He also commented on the current status of exploration activity on the Nyuni/East Songo-Songo discovery. “The Aminex Nyuni discovery was made at year eight of the PSA, a few months before the mandatory end of the First Extension.” Halfani said that for Aminex to apply for the second extension, they needed extra time to test the well, review the results, and file the application. The company completed the testing and filed the application. “This has all been done and Aminex have been allowed to proceed into the last exploration period of their license. Aminex will be discussing with TPDC on follow-up work, including new seismic and further drilling, to establish the commerciality of the find,” said Halfani.
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