Players battle for new production sharing deal

Environmental considerations: a lion in the Serengeti National Park

AP/SCANPIX

By BARRY MORGAN London

 17 May 2012 22:59 GMT

TANZANIA’S government is set to award a production sharing contract for the onshore Eyasi-Wembere-Natron concession, one the country’s last unexplored frontier basins, by the end of next month.

The move surfaced just as BG Group announced that its deep-water Mzia-1 probe in Block 1 hit gas and oil pay zones and may host up to 6 trillion cubic feet of resource.

A raft of minnows have lined up in a bidding exercise, which closed this week, for the Eyasi-Wembere-Natron tract, all companies with an existing commitment to Tanzania’s interior basins.

Industry sources said the initial suitors included Australian explorers Beach Energy and Jacka Resources together with UK explorer Adamantine Energy as well as Swala Oil & Gas (Tanzania) and Mafuta Oil…

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