Felix Nanguka

Felix Nanguka

Production Manager

Tanzania Petroleum Development Corporation (TPDC)


SESSION 8:  Upstream Concept Selection for Tanzania Deep Sea Gas

Tanzania has made a huge discovery of Natural Gas in deep sea (offshore). To commercialize these resources will require a proportional of the gas, in the form of liquefied natural gas (“LNG”), to be exported for sale in international markets. Two operation companies (with their respective partners) have discovered these resource in three different licensed Blocks, the Government of Tanzania (“GoT”) has requested the companies to cooperate in the developing a joint LNG plant. Each of the offshore block will be stand-alone project and the integrated LNG plant will be the forth project and thus to form the “Tanzania Gas & LNG project”. 

The Tanzania Gas & LNG project is planned to pass through several phases before first gas being produced. The planned phases include: Land/Site Acquisition; Pre- Front End Engineering Design (Pre-FEED); Front End Engineering Design (FEED); Final Investment Decision (FID), Construction phase and finally the first gas being produced.

The rationality of the project is attained by evaluating technical and commercial viability. Technical aspect of the project has progressed to the level that, upstream development concept for two blocks are chosen and further studies are going on to delineate the viable concept for the remaining Block. The commercial aspect of the project has not progressed much as GoT and International Oil Companies (“IOCs”) yet to engage in Host Government Agreements (“HGA”) negotiations. The HGA has many agreements that IOCs and Host government with respect to the upstream development, construction and operation of a project to minimize the financial and political risks posed to foreign investors as a result of sudden changes in national law as well as governing rights and obligations of the parties. Once HGA is signed, the project will develop to the Pre- FEED and subsequent phases as elaborated above.

This paper will deliberate the concept selection for the upstream development Blocks. The studies done by IOCs so far, has based on the economic, technical, Geo-hazards and environment parameters. TPDC accessed those concepts in line with parameters that IOCs used together with Tanzania gas policy.