(Agency Ecofin) – Zanzibar has set itself the goal of diversifying its economy through the full exploitation of its natural resources. The archipelago, which is still in the early stages of development of its oil and gas sector, will pursue new strategies to achieve this goal.
Much of Zanzibar’s economy is driven by services (almost 50%) thanks to windfall revenue from tourism and agriculture, which accounts for 35% of the island’s activity and industry for 15%. The semi-autonomous archipelago now wants to focus on developing its oil and gas sector with the aim of diversifying and strengthening its economy by 2050, weakened by the emergence of Covid-19.
To this end, Zanzibar intends to develop its internal capacity by strengthening oil and gas information systems, preparing multi-client exploration work in deep waters in the east of the island, attracting new investors to the sector and starting an audit Pemba Zanzibar entered into a public-private partnership agreement in August this year …
It should be noted that the latest developments in the oil and gas sector in Zanzibar were due to the passage of a 2016 law, which allowed for the creation of the island nation’s national oil company (Zanzibar Petroleum Development Company). and the regulatory body (Zanzibar Oil Regulatory Authority).
Subsequently, further government action in 2018 led to the signing of a Production Sharing Agreement (PSC) with RAK Gas, a company owned by the government of Ras Al Khaimah, the northernmost of the seven United Arab Emirates, in relation to the Pemba Zanzibar Block. This block covers an area of 11,868 km2.2 and, according to preliminary results of the 2D seismic survey carried out, it contains unproven reserves of sea gas in the amount of 3.8 thousand cubic meters. feet.
Zanzibar is a Tanzanian archipelago located off the coast of East Africa with a greater chance of attracting investment in the oil and gas sector compared to other players in the region with good projects, more advanced and much larger proven reserves.
These include Mozambique with proven reserves of around 100 cubic feet, three LNG projects with final investment decisions totaling $ 30 billion. Next comes Tanzania with 57 cubic meters of gas, most of which are offshore the Lindi LNG project.
10/31/2018 – Oil / Gas: Zanzibar signs first production sharing contract