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Tanzania Drafts $30B LNG Export Project Deal

Tanzania’s government has prepared a draft agreement with international oil companies willing to take part in a $30-billion LNG export project, and has sent the draft for ministerial review, local media reported on Wednesday, citing a senior official at the Ministry of Energy and Minerals.

State-run Tanzania Petroleum Development Corporation (TPDC) is partnering with ExxonMobil, Statoil, Ophir, and Shell in developing an LNG project that would allow the country to export gas from its offshore resources.

BG Group, now part of Royal Dutch Shell, in partnership with Ophir Energy and Pavilion Energy, has found 16 to 17 trillion cubic feet of gross recoverable gas resources.

Progress on the LNG project has stalled due to legal and regulatory uncertainty, obstacles in acquiring the land, and low LNG prices.

As of January 2017, Tanzania was hoping to reach an agreement with international oil companies in 2018.

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