Oman’s ARA Petroleum to Develop Tanzania Gas Discovery

Oman’s ARA Petroleum wins gas development licence in Tanzania
Omani upstream energy firm ARA Petroleum has announced that it has been formally awarded a license for the development of Tanzania’s Ntorya gas discovery – the largest onshore gas project in the East African nation to date. Muscat-headquartered ARA Petroleum – part of Zubair Corporation – said the 25-year development license was presented at a recent ceremony attended by Tanzania’s Deputy Prime Minister and Minister for Energy Dr Doto Mashaka Biteko. ARA Petroleum’s development partner Aminex Plc was also represented at the event. The award follows a decision by Tanzanian authorities to name ARA Petroleum’s wholly-owned local subsidiary ARA Petroleum Tanzania (APT) as the winner of the Ntorya license in May this year. The Ntorya gas field lies within the Tanzanian onshore Ruvuma JV licence area, operated by APT with a 75 per cent working interest. Production from the Ntorya gas field will help ramp up supplies to the domestic Tanzanian market, potentially transforming the country into a regional energy hub in the future. Under a gas sales pact signed with the Tanzanian Petroleum Development Corporation earlier this year, APT is anticipated to produce 40 million standard cubic feet per day of gas in the first year. This is projected to increase to 140 million standard cubic feet per day within a few years.

“We were honoured to receive this licence from Deputy Prime Minister Doto Biteko at such a prestigious event. This ceremony marks a significant milestone in our commitment to harness Tanzania’s gas resources for the benefit of its people. Our ambition for this serious endeavour is that it results in boosting economic development, alleviating energy poverty and supporting the country’s energy transition,” ARA Petroleum Tanzania General Manager Erhan Saygi said. Based on seismic data interpretation, Ntorya is believed to hold a matured unaudited Contingent Resource estimate of 3.45 trillion cubic feet of Gas Initially In Place (GIIP), with an mean unrisked GIIP potential of 16.4 Tcf and a risked mean potential of 6.9 Tcf for the wider Ruvuma JV area. If suitably developed, these reserves could potentially attract investments in domestic consumers such as fertiliser, cement and plastics production plants, vehicle CNG stations, domestic LPG suppliers and additional gas fired power stations for industrial and residential use. First gas from the Ntorya field is expected to flow starting from 2025.