business

Tanzania launches offshore bid round

Tanzania is looking to take a stake of up to three quarters in any of eight offshore blocks which will go under the hammer in the country’s latest bid round, according to a report.

The emerging East African energy powerhouse opened its much-anticipated four licensing round on Friday that would see seven blocks in the Indian Ocean go up for grabs, www.upstreamonline.com reported.

At the inauguration, Tanzanian President Jakaya Kikwete said, “The production-sharing formula will either be 35 per cent to investors and 65 per cent to the government, or two per cent to them and 75 per cent to us,” according to Reuters.

“We will look at the possibility of selling (state-run Tanzania Petroleum Development Corporation)’s shares in production-sharing agreements through (initial public offerings) in the future if we want more Tanzanians to participate in the oil and gas industry,” Kikwete added, according to the news wire.

Tanzania is offering a sextet of deep-water and ultra-deepwater blocks off the country’s east coast as well as the the lacustrine North Lake Tanganyika block.