Dar es Salaam, Tanzania -- Dominion Petroleum Ltd. has signed a production-sharing agreement (PSA) with the Tanzanian Petroleum Development Corp. and the government of the United Republic of Tanzania.
The new PSA is for exploration block 7, which covers 8,500 sq km ( sq mi) in the Indian Ocean east of Dar es Salaam. Water depth ranges from 100 m (328 ft) to more than 3,000 m (9,842 ft).
The PSA has an initial exploration period of four years. During this initial period, Dominion has committed to spend at least $8.75 million on geological and geophysical surveys, 4,000 km (2,485 mi) of 2D seismic data acquisition, and 500 sq km (193 sq mi) of 3D seismic surveys. The terms of the PSA also require Dominion to drill a well not later than the second four-year period.
"We are very excited about this award," says Mike Garland, chief executive of Dominion Petroleum. "Block 7 is an important asset for Dominion and adds significantly to our extensive portfolio of exploration assets in Tanzania. Securing this acreage puts us alongside some of the largest and best known oil companies in the world."
Other companies with interests in East African offshore blocks include Petrobras, Shell, Anadarko, Norsk Hydro, CNOOC and Statoil.