At the prestigious “Africa Oil Week: Investing in African Energy” event held on Wednesday in Cape Town, South Africa, representatives from Liberia, Tanzania, and Zanzibar announced significant new licensing rounds designed to advance oil and gas exploration across their respective territories. This initiative underscores the commitment of these nations to develop their energy sectors and attract foreign investment in their abundant natural resources.
Liberia revealed plans for an expansive new licensing program featuring 29 blocks as part of a structured three-phase exploration initiative. This program is particularly appealing to investors, as it allows for 100% cost recovery on seismic data incurred prior to signing a Production Sharing Contract (PSC). The licensing process will involve several key steps, including pre-qualification, block selection, and subsequent negotiations, ensuring a transparent and competitive bidding environment. To bolster this initiative, the energy data firm TGS will provide critical support by supplying over 24,000 square kilometers of 2D seismic data and more than 26,000 square kilometers of 3D seismic data, offering potential bidders vital insights into the geological characteristics of the regions.
In Tanzania, the fifth licensing round will present an opportunity for 24 exploration blocks, which will include both offshore and onshore locations. The application process is set to commence on March 5, 2025, positioning Tanzania as a key player in the region’s energy landscape. These blocks are strategically situated in the Indian Ocean and Lake Tanganyika, tapping into promising hydrocarbon potential. The licensing terms will feature a comprehensive nine-year exploration phase, followed by a 25-year period dedicated to development and production, with the possibility of a further 20-year extension. Prospective bidders will be granted access to valuable technical data, including seismic, gravity, and bathymetric reports, enhancing their ability to make informed investment decisions.
Meanwhile, Zanzibar announced the availability of eight blocks, which vary in size from 2,846 square kilometers to 5,666 square kilometers, with water depths ranging from 500 meters to 3,000 meters. The total licensing area encompasses an impressive 31,883 square kilometers and includes 10,145 linear kilometers of 2D seismic data. The exploration plan for these blocks is set to cover a five-year duration, allowing for thorough assessments of the region’s hydrocarbon potential.
These announcements not only reflect the determination of Liberia, Tanzania, and Zanzibar to bolster their energy sectors but also highlight the growing recognition of the economic benefits that can arise from responsible development of oil and gas resources. The strategic positioning of these countries within the African energy landscape emphasizes their readiness to engage with international investors, signaling a promising future for energy exploration and investment in the region.
