Octant Energy Tanzania and Petrodel Resources have reached a deal that will allow exploration to move ahead on the Tanga block.
Tanzania’s Ministry of Energy has approved the transfer of a 74% stake in the block to Octant. Afren Tanzania was previously the owner of the stake.
The previous consortium carried out a 3D seismic survey in 2013 on Tanga. Afren filed for insolvency in 2015. Petrodel and Octant now aim to reprocess the seismic, in the final three-year period.
“Petrodel had been a first mover in Tanzania and was awarded Tanga, Latham & Kimbiji exploration licences under competitive tender,” said Petrodel CEO Michael Prest.
“We farmed out an interest to Afren and so we are delighted with what is a most positive and significant development and we look forward to working with our partner Octant in realising Tanga’s significant potential.”
Tanzania Petroleum Development Corp. (TPDC) has not yet responded to a request for confirmation on the agreement.
Nigeria’s Petrodel said Tanga had potential in Lower Cretaceous sands, Upper Cretaceous submarine fans, Eocene shelf sands and Miocene fluvial and deltaic sands. Previous mapping has identified both structural and stratigraphic traps.
Long time coming
Tanzania awarded licences to Petrodel in 2006. Tanga is in the north of Tanzania, with onshore and offshore areas.
Octant’s East Africa director, Jeremy Martin, started at the company in 2017. Previously, he had been East Africa manager for Afren.
A 2018 presentation from Octant noted the company was linked to Black Marlin Energy, which Octant’s founders sold to Afren in 2010. The licence covers 1,935 square km, it said, noting the presence of seeps at Pemba. Seismic has defined six prospects.
Local newspaper The Citizen reported a controversy in 2022, saying Petrodel planned to invest $100 million in the country. However, the Tanzanian regulator said the company had no valid licences in the East African state.
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