57.54 trillion cubic feet of natural gas on the continent and in deep water. Additionally, the government has made around eleven production sharing agreements (PSAs) for oil and gas exploration, development, and production. Mr Sangweni stated that three contracts are now under production, and the remaining eight are in various phases of exploration.
Mr Sangweni discussed some of the accomplishments in the energy industry following 60 years of independence. He said that the regulatory framework and contracts in the oil and gas business have evolved significantly since the country’s independence, when the then-Tanganyika relied on mutual understanding agreements with investors.
Mr Sangweni spoke about the natural gas availability in the country. He said, “In 1952 there was only one drilled and functioning well under the Esso Petroleum Company and Agip Group which were operating with just a mutual understanding agreement. We are now talking about 44 wells with natural gas discovery, out of 96 oil wells drilled in the country”.
Mr Sangweni estimates that offshore and deep sea gas discoveries total 57.54 trillion cubic feet, which is 10.06 trillion inland and 47.48 trillion marine tracts. These places include Songo Songo, which was found in 1974, Mnazi Bay in 1982, Mkuranga in 2007, Kiliwani North in 2008, Ntorya in 2012, and Deep Sea 2010. He said that nearly 534,000 square kilometres have been surveyed. He also stated that local engagement in upstream petroleum operations and improvement of cost audit efforts has grown under PSA Contracts, with nine out of ten audits completed so far. According to Sangweni, these audits have resulted in around Sh90 billion in savings.
