Source: Beach Energy
Beach Energy will explore for world scale oil fields along Africa’s Great Rift Valley having now executed a Production Sharing Agreement (PSA) in western Tanzania.
An agreement with the government of the United Republic of Tanzania for a 100% interest in the Lake Tanganyika South concession, was signed in Dodoma. The agreement gives Beach the right to explore the Great Rift Valley in western Tanzania.
The concession, the only exploration lease currently active in the Rift region within Tanzania, is considered highly prospective for oil, and Beach's exploration program will target plays similar to those to the north in Uganda, where recent exploration by UK's Tullow Oil and Heritage Oil has proved extremely successful.
Beach Energy Managing Director, Reg Nelson, said, “We regard the Rift region in Tanzania as hugely prospective, but totally unexplored, with the region dotted with natural oil seeps and significant oil exploration success in bordering countries such as Uganda.”
“Major oil discoveries have recently been made along the same geologic trend to the north where more than 800 million barrels of oil have been discovered in the past seven years. Companies operating in Uganda, such as Tullow Oil, have estimated there is potential to discover another 1.5 billion barrels in coming years,” Mr Nelson said.
Nelson added that, “Beach is very grateful for the leadership, co-operation and professionalism displayed by the Tanzania Petroleum Development Corporation (TPDC) in the negotiation of the PSA, and looks forward to working with TPDC to explore this highly prospective acreage.”
Tanzanian PSA’s are structured into three exploration phases (4+4+3 years) over 11 years. At the end of each phase, Beach retains the option to relinquish all of the remaining acreage without further obligation. An exploration well is required in each of the second and third phases.
Beach’s venture into Tanzania consolidates its African interests ahead of first production from Egypt in the September quarter.