Tanzania

Tanzania is an emerging country requiring energy for its growing cities, mines sites, farms and its growing industrial base. The country has many energy resources which include natural gas but much of this energy potential remains unexplored. The country’s prospectivity is now starting to be recognised by both the major and junior exploration and production companies as can be seen by the take up of all offshore permit areas in recent times.

The commencement of gas production from the Songo Songo Gas Field in 2004 was a significant first step towards energy self sufficiency for Tanzania. The Tanzanian government has an active policy to promote the energy industry. Key secured entry into the country's oil and gas sector by earning a 20% interest in the prospective Nyuni Block. This offshore block is directly adjacent to the producing Songo Songo Gas Field that provides gas to the city of Dar es Salaam through under-utilized infrastructure that was built in 2003/04 with the assistance of World Bank funding. Key and the other joint venture participants in the Nyuni block have a right of access to these relatively new facilities and pipeline through the terms of the Production Sharing Agreement (PSA) in place with the Government's Tanzanian Petroleum Development Corporation (TPDC).

The Nyuni Joint Venture conducted a transitional seismic survey in 2006/07 that assisted in determining the locations for 2 exploration wells drilled in the 1,300 sq km Nyuni Block. Drilling commenced in the fourth quarter of 2007. Key Petroleum was rewarded with success, earlier in 2008, when the second well, Kiliwani North #1 discovered a 60m gas column in a separate accumulation to that producing at Songo Songo.  Importantly, for Key Petroleum whose main aim is to grow, this success can be commercialised relatively quickly due to its close proximity to the Songo Songo gas processing facilities only 3.5 km away.

West Songo Songo

Key Petroleum has also expanded its presence in Tanzania by recently entering into a Product Sharing Agreement (PSA) with Tanzanian Petrolium Development Corporation for the area directly to the west of the producing Songo Songo Gas Field known as "West Songo Songo". Key is the designated Operator of the block and is in a 50/50 joint venture with Aminex plc, the UK listed company who is the Operator of the Nyuni block, directly to the east of the Songo Songo Gas Field.

Signing Ceremony Click for 71kb enlargement

Signing Ceremony Click for 82kb enlargement