The Tanzania Petroleum Regulatory Authority and the National Petroleum Institute of Mozambique are on the verge of signing an agreement regarding the sharing of natural gas in the border area.
This action will take place within the framework of unitization, which will reshape the energy landscape in East Africa and have far-reaching implications for both countries.
The proposed unitization agreement was revealed this past Monday (06) during a meeting between Tanzanian media and the officials from the Tanzania Petroleum Regulatory Authority.
Unitization is the process by which an oil or gas reservoir spanning multiple areas is developed jointly by the license holders.
Charles Sangweni, the Director-General of the Tanzania Petroleum Regulatory Authority, stated that the essence of the agreement stems from the unique geographical location of these gas reserves.
Unlike traditional border disputes where demarcation lies within land, in this case, the gas deposits encompass an area that transcends both national borders.
The complex and sensitive issue of resource sharing brought Mozambique and Tanzania to the negotiating table, recognizing the potential for significant overlap in gas reserves.
The gas reserves extend to the south of Tanzania, where Blocks 4/1B and 4/1C overlap with the Mozambique border. On the other hand, Mozambique has discovered 172 trillion cubic feet of gas in the North Belt area, specifically in Blocks 5/A and 5/B.
It is now believed that these reserves may overlap with Tanzania’s territory, leading to further exploration.
Sangweni emphasized the global precedent of unitization agreements in such cases, through which countries collaborate to share resources when reserves overlap.
The head of the Tanzania Petroleum Regulatory Authority stated, “To implement this, we have been in contact with our colleagues through the Ministry of Foreign Affairs and the Ministry of Industry and Energy so that we can now conclude a Memorandum of Understanding that will bring cooperation in various areas, including the celebration of a unitization agreement.
