State-run Tanzania Petroleum Development Corporation (TPDC) has paid $23.6 million to double its shareholding in the Mnazi Bay natural gas field under an agreement with French energy company Maurel & Prom.
The Mnazi Bay gas field, in the Mtwara region of the country’s south, has an estimated 641 billion cubic feet of recoverable natural gas reserves and contributes nearly half of the gas used to generate electricity in the East African country.
Mussa Makame, TPDC’s managing director, said in a televised signing ceremony on Saturday the company had doubled its ownership in the asset to 40% after acquiring an additional 20% stake from Maurel & Prom.
Initially the field was jointly owned by Maurel & Prom, TPDC and Wentworth Resources. But after Maurel and Prom agreed to acquire Wentworth Resources’ 31.9% stake, TPDC exercised its rights to buy a part of the shareholding that belonged to Wentworth.
“With this agreement, TPDC has refunded Maurel & Prom its purchasing costs equivalent to the value of 20% shares initially owned by Wentworth,” Makame said, adding they had reimbursed Maurel & Prom $23.6 million.
TPDC and Maurel & Prom also signed a joint operating agreement under which TPDC will have decision-making power in the development and operation of the gas field, including sending its staff on long-term secondments.
Reuters
