JEDDAH -- The Dodsal Group, a Dubai-based business conglomerate currently operating in countries in MENA and East Africa region and India, has struck an expansive sweep of over 2.7 TCF natural gas (natgas) deposits on their onshore concession in Tanzania for oil and gas exploration.
In July 2015, the Group had marked its first natural gas discovery in the country of 2.17 TCF in the Mambakofi and Mtini region. However, based on recent update of studies, this estimate has now been raised to 2.7 TCF with a potential upside of 3.8 TCF. Based on the current market prices, the gas resources is valued at $8 billion to a potential upside of $11 billion.
In addition, Dodsal's third well at Mbuyu has encountered a large gas column, in the western side of the block, which is estimated to contain up to 5.9 TCF of gas. Studies are ongoing to establish the prospective gas resources.
Having secured oil and gas concessions from the government following a production sharing agreement signed in 2007, the Dodsal Group is currently undertaking studies for prospective gas resources to be enhanced further, which could catalyze Tanzania's position as a leader in the natural gas sector in the East Africa region. The Group has already invested $200 million to date, and plans to invest another $300 million in Tanzania over the next 24 months to support its exploration and production activities, including implementation of an early production system to bring gas to the market.
The country's biggest onshore gas discovery is located in the Ruvu Basin Coast Region, only 50km from the commercial capital city of Dar es Salaam, will contribute to increased reliability of clean energy resources in Tanzania, and drive all-round social and economic growth. With the new discovery, the nation's total estimated recoverable natural gas reserves total over 57 TCF.
Dr. Rajen A. Kilachand, Chairman and President of the Dodsal Group, said: "The discovery of natural gas reserves in Tanzania further strengthens our commitment to the nation to be a partner in the country's all-round socio-economic progress. Tanzania has tremendous potential in the hydrocarbon sector. When efficiently leveraged, this will bring incremental economic growth by assuring timely and ready supply of clean energy. We are fully committed to supporting the nation in this journey."
© The Saudi Gazette 2016
