The new PSA is for Exploration Block 7, which is located in the Indian Ocean to the east of Tanzania's capital Dar-Es-Salaam, covering a total area of approximately 8,500 square kilometers on the continental slope. The depth of water ranges from approximately 100 to more than 3,000 meters.
Dominion Petroleum's successful bid for Block 7 was in the face of fierce competition that included some of the largest oil companies in the world. Other companies with interests in East African offshore blocks include Petrobras, Shell, Anadarko, Norsk Hydro, China National Oil Company (CNOC) and Statoil.
The terms of Dominion's PSA are, in summary, as follows:
--Geological and geophysical surveys (US$1 million);
--2-D seismic over 4,000 kilometers (US$4 million); and
--3-D seismic over 500 square kilometers (US$3.75 million)
An initial analysis of the available seismic data already conducted by Dominion Petroleum leads it to believe that there are encouraging prospects in the shallower part of Block 7, at drillable depth.
Mike Garland, Chief Executive of Dominion Petroleum, commented:
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