CNOOC, Tanzania to partner on offshore oil and gas fields exploration

Chinese state-owned offshore oil and gas company CNOOC is planning to start offshore exploration in Tanzania. The plan follows an agreement between CNOOC and the Tanzania Petroleum Development Corporation (TPDC).

The two companies will collaborate on conducting seismic studies in deep-sea blocks owned by TPDC. These blocks are located near the significant natural gas discoveries made by Shell, Equinor, and ExxonMobil.

Tanzania is actively seeking to develop its natural gas resources and has recently reached a deal with major oil and gas companies to construct a large liquefied natural gas (LNG) export terminal. This agreement involves a host government agreement and a production-sharing agreement. The development of the LNG export terminal aims to meet the increasing demand for LNG in Europe, as the region looks to diversify its gas supplies away from Russian pipelines by 2027.

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Potential market

The Tanzanian Energy Minister, January Makamba, expressed confidence that there are more gas and possibly oil resources to be discovered in Tanzania. He stated that only 30% of the potential area for oil and gas resources in the country has been explored so far. This suggests that there is untapped potential for further exploration and development in Tanzania.

The interest in Africa as a gas supplier for Europe is growing, with oil and gas majors seeking additional deals in the Mediterranean and Africa to meet Europe’s increasing demand for natural gas. Eni’s CEO, Claudio Descalzi, has proposed an “south-north” energy axis between Africa and Europe for gas deliveries, highlighting Africa’s potential as a significant gas supplier to the continent.

The collaboration between CNOOC and TPDC in offshore exploration and Tanzania’s efforts to develop its natural gas resources reflect the country’s ambition to capitalize on the LNG demand in Europe and enhance its energy sector.