“From what we know, [is that] the blocks themselves are located in water depth of about 2,000 to 3,000 metres. So it’s really deep offshore and they are quite close to some very prospective blocks,” Dolapo Oni, Oil and Gas Analyst, Ecobank Research told CNBC Africa.
The licencing round was expected to be launched in September 2012, however, the Tanzanian government moved it forward to finalise gas regulations in the country. According to Oni, significant interest from investors in Asia and Europe pushed the government to facilitate the launch as it was not yet complete.
“For me, BG [Group] and Offshore Energy have discovered about 13 trillion cubic feet of gas in their blocks one, three and four may be interested in possessing the blocks that are next to them because they have the intention to set up an LNG plant in Tanzania,” he explained.
Despite the low interest of Tanzania’s local players to invest, BG announced that it intends to spend about 15 billion in 10 years in Tanzania, and they plan on creating an energy plant.
“Exxonmobil and Statoil who also operate block two in which three discoveries of gas have also been made, also have announced that they intend to spend over 30 billion in the next 10 years,”
Due to the recent discovering’s on the West African Coast, Oni doesn’t think Nigeria will have its oil licencing round soon. Despite the fact that the last one was in 2003.
“In Nigeria we are expecting a marginal food licensing round sometime before the end of this year but we are still watching to see if there’s been any indication from the DPR (Department of Petroleum resources) from there if that’s still likely to hold. Most likely, it’s going to push onto next year.”