ARA Petroleum to develop Tanzania’s largest onshore natural gas discovery

Posted on : Monday , 1st July 2024

ARA Petroleum announced that Tanzania's Ministry of Energy has granted a 25-year Development Licence for the Ntorya natural gas discovery area to the Ruvuma joint venture. The licence was awarded to ARA Petroleum Tanzania Limited (APT), a subsidiary of ARA Petroleum and operator of the Ruvuma JV.

This licence enables APT to advance Tanzania’s largest onshore natural gas project, aiming to supply gas to the domestic market within a year. "We are thrilled to receive this licence and are ready to commence work immediately," said Erhan Saygi, General Manager of APT.

APT's field development plan includes converting an existing well into production, constructing in-field gas processing facilities, and drilling a third well. Initial production is expected to reach 40 MMcfd, increasing to 140 MMcfd within a few years under a Gas Sales Agreement with the Tanzanian Petroleum Development Corporation (TPDC).

APT's seismic data analysis indicates a substantial gas potential, with estimates of 3.45 Tcf of Gas Initially In Place (GIIP) and a mean unrisked GIIP potential of 16.4 Tcf. The Development Licence divides the original exploration area into nine blocks, with further geological and drilling activities required within five years. "This project could significantly impact Tanzania's energy landscape, alleviating energy poverty and fostering economic growth," added Saygi.