Dominion Petroleum Acquires Exploration License Offshore Tanzania
Dominion Petroleum has signed a Production Sharing Agreement with the Tanzanian Petroleum Development Corporation and the government of the United Republic of Tanzania.
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:
- The initial exploration period is 4 years;
- During the initial period, Dominion has committed to spend a total of at least US$8.75 million on:
- The terms of the PSA also require the drilling of a well not later than the second 4 year period.
--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:
"We are very excited about this award. Block 7 is an important asset for Dominion and adds significantly to our extensive portfolio of exploration assets in Tanzania. Securing this acreage puts us alongside some of the largest and best known oil companies in the world."
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