Zanzibar unveils new oil, gas blocks

ZANZIBAR: THE Zanzibar Minister for Blue Economy and Fisheries has announced the demarcation of two new onshore blocks for oil and gas exploration, inviting potential international companies to seize the opportunity.

Minister Shaaban Ali Othman told journalists and other stakeholders during the introduction of the demarcation that an area covering 12,814 square kilometres of Unguja-Pemba is ready for lease to oil and gas investors.

This milestone was achieved following the relinquishment of the former Pemba-Zanzibar Block by RAKGAS Zanzibar Limited, said Mr Othman who informed the audience.

The minister revealed that the Unguja-Pemba block area has been split into two new blocks named Zanzibar one (Z1) and Zanzibar two (Z2), measuring about 6,572 square kilometres and 6,242 square kilometres, respectively.

“With great pleasure, therefore, I, the Minister of Blue Economy and Fisheries, officially announce to International Oil Companies (IOCs) and the general public that the two new blocks (Z1 and Z2) are now open for investment,” he declared.

His announcement was followed by inviting all the IOCs to submit their proposals for the blocks and that the announcement of the two onshore blocks aligns with Zanzibar’s grand vision of making Zanzibar energy independent as stipulated in the Zanzibar Development Vision 2050, Zanzibar Development Plan 2021-2026, the ruling CCM party election manifesto of 2020 -2025 and Blue Economy Policy 2022.

At the meeting, Mr Othman also shared what he termed as notable and significant achievements made so far, in the Zanzibar 1st Licensing Round launched on March 20, 2024, for 8 offshore blocks.

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He said to promote the blocks, Zanzibar made massive roadshow campaigns to encourage international oil companies to participate in the licensing round both virtually and physically and “More roadshow campaigns are due soon”.

“The response we have received so far, from IOCs, gives us confidence that our oil and gas exploration journey is promising.

I would also like to remind the IOCs that our first licensing round closes on 16 December 2024, so please book your place in our licensing round,” he said.

The minister expressed gratitude to President Hussein Mwinyi for initiating the development in the upstream oil and gas sector.

“As we are all witnessing, the upstream oil and gas sector has been developing at an impressive pace,” he said.

The Principal Secretary in the Ministry of Blue Economy and Fisheries, Hamad Bakar Hamad, underlined that Dr Mwinyi’s leadership, vision and inspiration, to develop Zanzibar and achieve all its development goals require the citizen’s strong support.