Tanzania’s regulatory body, the Petroleum Upstream Regulatory Authority (PURA), and its Mozambican counterpart, the National Institute of Petroleum, are in the final stages of signing a unitization agreement to co-develop a shared natural gas reservoir.
With a potential overlap in resources from Tanzania’s Blocks 4/1B and 4/1C and Mozambique’s Blocks 5/A and 5/B in the Northern belt area, the agreement addresses the complexity of sharing a cross-border gas reservoir, prompting negotiations for collaborative development.
Up to 172 trillion cubic feet of gas has already been identified on the Mozambican side.
A team has been established to expedite the terms and signing of the agreement, and according to Charles Sangweni, CEO of PURA, “We have been in contact with our colleagues through the ministry of foreign affairs and our ministry (the Ministry of Energy), so that we can now enter into a Memorandum of Understanding that will bring cooperation on many things.”
In addition to gas exploration provisions, the agreement will enhance bilateral cooperation and technology exchange. With the deal, Tanzania will also utilize Mozambique’s gas infrastructure and expertise to supply Tanzanian gas to neighboring countries, such as Kenya, Uganda, Zambia, and Malawi.