Jamani Dili hilo!

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Opportunities

The Government of the United Republic of Tanzania

and the

Tanzania Petroleum Development Corporation (TPDC)

are pleased to invite the international petroleum industry and other specialised investors to participate in the exploration of hydrocarbons in Tanzania. Companies may wish to negotiate a Production Sharing Agreement (PSA) for a number of available blocks in the sedimentary basins both onshore and offshore. Currently, open acreage include the Rufiji basin, inland rift basins of L. Rukwa, L. Tanganyika, L. Nyasa, and the Ruhuhu Karoo Basin.

KEY TERMS AND INCENTIVES

  • Data on previous exploration available

  • Negotiable work programme

  • No ring-fencing for the recovery of exploration costs

  • Favorable profit sharing

  • Low TPDC's participation, capped at 20%

  • Duty exemption on exploration equipment

  • VAT exemption on locally purchased goods and services for use in Petroleum exploration

  • No foreign exchange restrictions

  • No initial payments such as signature or production bonuses

  • Negotiable training fund

  • Fast track negotiations for concluding a Production Sharing Agreement

Model (PSA) and Petroleum (Exploration and Production) Act 1980 requires an Acrobat Reader to unfold)

A model PSA, the Petroleum (Exploration and Production) Act 1980, The Income Tax 2004, and also a brochure on petroleum exploration potential are available free of charge. Following the first round, Petrobras have been awarded exploration rights for Block # 5 in year 2004. Following the closure of the Second round in July 2002, Shell were awarded exploration rights over Blocks 9-12. The agreement awaits the endorsement of the Government. The third licensing round was closed in May 2005 and three companies namely OPHIR ENERGY, STATOIL and PETROBRAS were invited for PSA negotiations. OPHIR ENERGY signed their PSA agreement over Block #1 end of October 2005. Negotiations with PETROBRAS and STATOIL are continuing. For details on the deep sea project companies that may wish to apply for open acreages onshore or to buy deep sea data may contact:

Permanent Secretary
Ministry of Energy and Minerals
P.O. Box 2000
Tel: 255-22-117153/9
Fax: 255-22-116719
E-mail:mem@mem.go.tz

Managing Director
Tanzania Petroleum
Development Corporation
P.O. Box 2774
Tel: 255-22-2118535
Fax: 255-22-2129663
E-mail:tpdcmd@tpdc-tz.com

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