Tanzania to Take Up to 75% Stake in PSCs

Tanzania on Friday said it would take a stake of up to 75 percent in each of the new production-sharing contracts, reports Reuters.

The East Africa nation which has seen become an attractive destination from gas exploration opened bids for eight blocks on Friday. Tanzania will offer seven offshore blocks and the one block in Lake Tanganyika for the 4th Licensing Round.

“The production-sharing formula will either be 35 percent to investors and 65 percent to the government or 25 percent to them and 75 percent to us,” Tanzanian President Jakaya Kikwete said when launching the country's fourth licensing round, reports Reuters.

Kikwete said the government would consider selling stakes held by the state-run Tanzania Petroleum Development Corporation (TPDC) in production-sharing agreements to Tanzanians through initial public offerings (IPO), Reuters adds.

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