Tanzania’s biggest onshore gas discovery has been made in the Ruvu Basin located 50 km west of Dar es Salaam, the country’s major city and commercial port.
Dubai-based Dodsal Group which announced its discovery on Monday estimates the gas reserves to be over 2.7 trillion cubic feet (TCF) worth $8 billion to $11 billion at current market prices. Dodsal began exploration at the site in 2009, two years after obtaining the concession rights.
“It’s a game changer. This will change the economy of the country,” said Rajen Kilachand, chairman and president of the Dodsal Group. According to him, the onshore gas discovery, which is Tanzania’s biggest, will boost the country’s reserves to more than 57 TCF. Most of the East African country’s natural gas discoveries have been off its coast.
Dodsal also said the discovery would stimulate the local economy by creating jobs.
The company has already spent $200 million on its project in Tanzania and plans to invest an additional $300 million in the country over the next 24 months, to support exploration and production.
Kilachand says profits made will be shared 50-50 with the government, as agreed. He expects to start selling gas from the field in 2018.
Dodsal says it is exploring a third well at Mbuyu in Tanzania which according to initial assessment could contain up to 5.9 TCF of gas, more than the big find announced today. However, the company said studies of the deposit were underway.
Oil and gas discoveries in East Africa in recent times has positioned the region as a lucrative investment destination, attracting interest from international oil firms like Exxon Mobil. Research has shown that discoveries in the region over the last few years, are more than that of any other region in the world, and the boom is expected to continue for the next three to four years.