/ 29 May 2005

World firms bid to explore for Tanzania’s oil

Three international firms have applied for a licence to explore for oil off the coast of southern Tanzania, energy ministry officials said in Dar es Salaam on Saturday.

Austria’s Orphir Energy, Brazil’s Petrobras and Norway’s Statoil have bid for the licence, which is expected to be awarded next month, Tanzania Petroleum Development Corporation director Yona Killagane said.

”The successful bidder will get a licence for eight out of the 12 blocks in the Indian Ocean that have been demarcated for oil exploration,” he added.

Petrobras won block number five off Mafia Island in 2001 and The Netherlands’ Shell Exploration won in 2002 the blocks that cover Tanzania’s semi-autonomous Zanzibar and Pemba Islands.

While Petrobra has started its operations, Shell has not because it is yet to sign to sign the Petroleum Sharing Agreement.

Apart from the two firms engaged in deep-sea explorations, there are five others operating in other parts of the East African country. — Sapa-AFP