The Tanzanian Petroleum Development Corporation has increased its ownership in the Mnazi Bay natural gas field, operated by Etablissements Maurel & Prom SA, by doubling its stake. This move aligns with the East African nation’s strategy to enhance government involvement in key projects.
TPDC signed an agreement with the French company on Saturday to boost its share in the gas-producing prospect south of the country to 40% after purchasing a 20% stake from the Paris-based company for $23.6 million. Maurel & Prom—before the latest transaction—controlled 80% of the Mnazi Bay gas field.
President Samia Suluhu Hassan is pushing for Tanzania to boost production of natural gas and build pipelines to export it to neighboring countries, including Uganda, Zambia, Kenya, and the Democratic Republic of the Congo, in a bid to accelerate economic growth. Mnazi Bay has proven natural gas reserves of 641 Bcf and currently produces around 48% of Tanzania’s gas, according to Mussa Makame, managing director of the Tanzanian oil operator.
The two companies plan to invest $100 million in the project to expand gas compression infrastructure and boost drilling, according to Nicolas Engel, general manager of Maurel & Prom Tanzania.
Tanzania has total recoverable natural gas reserves of 57.54 Tcf and needs to invest up to $550 million at the Mnazi Bay gas field alone to boost production, Hassan said.
In a speech during the signing ceremony, Hassan emphasized the need to actively boost the government’s share in successful projects, extending beyond the energy sector to encompass various other sectors.
