Tanzania’s energy minister spearheads historic Petrodel-Octant oil exploration deal in Tanga block

The recent approval by Tanzanian Energy Minister Doto Biteko of the transfer of Petrodel Resources Ltd.’s 74-percent interest in the Tanga block to Octant Energy Tanzania Ltd., marks a significant step in the nation’s energy sector. The strategic move, governed by Section 86(2) of the Petroleum Act 2015, heralds a new chapter in Tanzania’s quest for energy resource optimization and underscores the government’s commitment to fostering partnerships that enhance the nation’s energy potential.

Located in a prime area, the Tanga block boasts a deep basin characterized by a thick sedimentary section. This geological feature presents a fertile ground for various source rock intervals and potential reservoirs. The presence of lower Cretaceous sand deposits in deltaic to shallow marine environments, upper Cretaceous submarine fans, Eocene shelf sands, and Miocene fluvial and deltaic sands, affirms the block’s rich geological diversity. The discovery of oil seeps and shows in nearby Pemba Island further validates the block’s oil potential.

According to a report by Oil Review Africa, the collaboration between Petrodel, retaining a 26-percent stake, and Octant, now the operator with a 74-percent interest, is poised to leverage cutting-edge technology for reprocessing the 3D seismic survey of Tanga, initially acquired in 2013. This technological advancement is not only a testament to the partners’ commitment to excellence but also aligns with the government’s vision of harnessing natural resources using sustainable and efficient methods.

Petrodel’s strategic foresight is evident in its history as a pioneering entity in Tanzania’s energy landscape. Awarded the Tanga, Kimbiji, and Latham exploration licenses in 2006 through a competitive tender, the company has been instrumental in shaping the nation’s energy narrative. Its partnership with Afren, which has now transitioned to Octant, signifies a progressive approach towards realizing the full potential of these assets.

Tanzania, with its significant reserves estimated at 57.5 trillion cubic feet, stands as a pivotal player in sub-Saharan Africa’s energy arena. The government’s proactive policies and openness to international partnerships have positioned the country as an attractive destination for energy investments. The Tanga block, in particular, with its promising geological features and the recent seismic data advancements, is set to become a cornerstone in Tanzania’s energy sector.

Michael J. Prest, founder and CEO of Petrodel, expressed optimism about this development. His enthusiasm reflects the potential that the Tanga block holds and the fruitful collaboration anticipated with Octant. The focus on applying state-of-the-art technology for reprocessing the seismic data is a clear indication of the partners’ commitment to uncovering the full extent of the block’s resources.

The approval by the Tanzanian energy minister of the Petrodel-Octant partnership is a milestone in the nation’s energy sector. It not only demonstrates the government’s dedication to fostering productive partnerships but also highlights the potential of the Tanga block as a significant contributor to Tanzania’s energy reserves. This development, underpinned by technological advancements and strategic collaborations, is poised to propel Tanzania further into the forefront of energy production in the region.