ExxonMobil may sell out Tanzanian gas field

exxonmExxonMobil is planning to sell its interest in an undeveloped gas field off Tanzania, as the American multinational oil and gas corporation aims to develop a bigger project in neighbouring Mozambique

The company has a 35 per cent interest in Tanzania’s deepwater Block 2 field which holds an estimated 23 trillion cf of gas, according to the operator Equinor, which holds a 65 per cent stake.

Speaking to Reuters, industry sources said that Tanzania’s oil and gas potential faces continuous delay, mostly due to lack of proper infrastructure and government regulations to develop oil and gas sector. In addition, the value of the asset was not clear because of the nascent development phase and uncertain future, said the source.

However, spokespersons from Equinor refused to comment on the proposed sale process of the Tanzanian oil and gas assets.

In 2017, ExxonMobil acquired a 25 per cent stake in the gas-rich Area 4 development offshore Mozambique from Eni, signalling descends of Tanzania from Exxon's priority list, said the source.

Mozambique’s Area 4 has an estimated 85 trillion cf of gas and is a leading gas discovery across the world. The project is presently under development and is scheduled to start production by 2022.

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