In a first, the tourism-reliant country, Zanzibar, is looking to explore other avenues such as oil and gas and information technology (IT) to diversify its economy
A welcoming step in terms of embracing self-sufficiency, it aligns with President Hussein Mwinyi’s US$2.4bn plan to integrate shipping, oil exploration and seaweed processing. Launched in February last year, the five-year blueprint is designed to lay emphasis on the country's oil and gas industry, besides also working towards its 'blue' economy targets.
Zanzibar’s Minister for Blue Economy and Fisheries, Suleiman Masoud Makame, recently announced at a press conference that as many as 12 oil and gas exploration blocks situated in deep sea areas of eastern Unguja and Pemba are now open for investors around the globe. “This is the first tender related to oil and gas exploration and extraction to be issued in Zanzibar, constituting issues stipulated in the sectors’ Five Year Development Plan,” Makame said.Calling it 'both a legal and political milestone', he assured, “We are now going ahead to drill oil in Zanzibar because all the signs are there.” The move follows multinational company, Schlumberger's unlocking of hydrocarbon data that was presented to the Zanzibar government by the government of the United Republic of Tanzania.
A two-day International Energy and Industry summit organised by the Zanzibar Petroleum Development Company (ZPDC) in collaboration with UK-based Global Events Partners (GEP) attracted several participants from Tanzania mainland and beyond the region.Makamba called for surveys beyond the exclusive economic zones (EEZ), which make up only a few thousands of square kilometres. “We need more research in oil and natural gas along with communicating the right information to the public,” he said. “We are expecting investors to come and invest in the search for oil and gas. It is fortunate that the government has also just announced the availability of demarcated exploration areas/blocks for companies needing to invest,” said ZPDC director general, Mikidadi Ali Rashid.
The opening of new blocks come as a breath of fresh air for Zanzibar's oil and gas sector after an unfruitful exploration attempt at the Pemba block by UAE company RAK Gas.
Zanzibar's oil and gas industry stands independent of the United Republic of Tanzania's supervision since last year. The Petroleum Upstream Regulatory Authority (Pura) has transferred all extracted oil and gas data to the Zanzibar Petroleum Regulatory Authority so that the latter can progress with the search for exploration investors independently.
