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Dodsal Group discovers $8 billion worth of natural gas deposits in Tanzania

Dubai - The company said Tanzania's biggest onshore gas discovery in the Ruvu Basin near Dar es Salaam is estimated to contain over 2.7 trillion cubic feet (TCF) of natural gas deposits.

 The Dodsal Group, a Dubai-based business conglomerate, on Monday announced a major natural gas discovery worth an estimated $8 billion at current market prices in Tanzania.
The company said Tanzania's biggest onshore gas discovery in the Ruvu Basin near Dar es Salaam is estimated to contain over 2.7 trillion cubic feet (TCF) of natural gas deposits.
Dodsal, which is currently operating in countries in Mena and East Africa region and India, said a third well at Mbuyu has found a large gas column, which is estimated to contain up to 5.9 TCF of gas. "Studies are ongoing to establish the prospective gas resources," said Dr Rajen A. Kilachand, chairman and president of the Dodsal Group.
Dr Kilachand said Dodsal has invested $200 million so far in Tanzania exploration and would be putting in an additional $300 million to $400 million over 24 months to step up exploration and support production activities, including implementation of an early production system to bring gas to the market by the first quarter of 2018.
First discovery
In July 2015, Dodsal marked its first natural gas discovery in Tanzania of 2.17 TCF in the Mambakofi and Mtini region. However, based on recent update of studies, this estimate has now been raised to 2.7 TCF with a potential upside of 3.8 TCF.
"The discovery of natural gas reserves in Tanzania further strengthens our commitment to the nation to be a partner in the country's all-round socio-economic progress," said Dr Kilachand. "It's a game changer, this will change the economy of the country," he added.
"Tanzania has tremendous potential in the hydrocarbon sector. When efficiently leveraged, this will bring incremental economic growth by assuring timely and ready supply of clean energy. We are fully committed to supporting the nation in this journey, underlined by nine years of natural gas exploration that we have been undertaking," he said at a media briefing.
Concessions
The Dodsal Group had secured oil and gas concessions from the Tanzanian government following a production sharing agreement signed in 2007. It began exploring the site in 2009, two years after obtaining the concession rights in Tanzania.
The group is currently undertaking studies for prospective gas resources to be enhanced further, which could catalyse Tanzania's position as a leader in the natural gas sector in the East Africa region.
"As a socially responsible organisation, our focus is to bring in added value across all aspects of our operation and support Tanzania in stimulating the local economy, create new jobs for Tanzanian youth and drive the growth of small and medium enterprises by building a strong local supply chain," said Dr Kilachand. The group has implemented projects in over 22 nations.
- issacjohn@khaleejtimes.com