Tanzania buys majority stake in Mtwara plant

[nngu007]

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A gas plant in Tanzania. Picture: File By JOHN MBALAMWEZI

Posted Saturday, February 11 2012 at 17:07
Tanzania and Canadian oil and gas company Wentworth Resource Ltd have reached an agreement over the purchase of the latter’s Mtwara gas power plant.



In the deal, state energy firm Tanzania Electric Supply Company Ltd (Tanesco) will acquire the 18MW gas-fired power plant and associated assets in Tanzania.


Tanesco will buy 100 per cent shares of the power plant at $13.5 million.


Wentworth managing director Geoff Bury said the funds from the acquisitions will allow the firm to streamline its Tanzania operations and focus on exploring for hydrocarbons and developing and producing its known natural gas resources.


“Wentworth is looking forward to continuing to be a reliable, long-term gas supplier to the Mtwara Power Plant and to being a gas supply partner with Tanesco in other parts of Tanzania,” said.


The agreement will see Wentworth and its Mnazi Bay Concession Partners continue to supply natural gas to the Mtwara Power Plant.


The Mtwara Power Plant has been selling electricity to Tanesco in the Mtwara and Lindi regions. It is supplied by natural gas produced, processed and supplied via pipeline from the Mnazi Bay Concession area.


The sale of the Mtwara plant has comes after Wentworth acquired Cove Energy Tanzania Mnazi Bay Ltd for $38.8 million last month.
Cove Energy chief executive John Craven said that this transaction is an important strategic and positive step for Cove.


Mr Craven said that the agreement with Wentworth increases Cove’s share of its core asset, from Area 1 Rovuma Offshore Exploration and Production Concession Contract by removal of the royalty.


“Divesting from its Tanzanian interests allows Cove to focus on its offshore blocks where considerable potential remains from the ongoing exploration and appraisal programmes in both Mozambique and Kenya,” he said.

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[nngu007]

This is fantastic if our own GVT is buying back some of investment back to the Government entity; rather than some business Men take over and then run our government in a background leaving the GVT without any say and power...

I support the Move, but More has to be done, they need to by more big Investment for the people of the Tanzania anyway they belongs to the people of Tanganyika...

 

[Mpita Njia]

Kununua peke yake haitasaidia sana... kinachotakiwa ni uwezo wa kuiendesha hiyo mitambo kwa ufanisi. Si ajabu ukienda huko Mtwara mwaka mmja baada ya kununuliwa kwa hiyo mitambo unaweza kukuta imeshafungwa kutokana na sababu kadhaa za kipuuzi tu

 

[Gagnija]

Hakuna cha kusherehekea hapo. Bado bei ya umeme itakuwa determined na bei ya gesi itakayonunuliwa na TANESCO toka kwa huyo supplier. Hivi TPDC hawawezi ku-invest kwenye kuzalisha hiyo gesi? Sioni kama tatizo linaweza kuwa mtaji, kwani kwa resources tulizonazo ikiwa pamoja na hiyo gesi, tunaweza kukopa mtaji toka taasisi yoyote ya fedha hapa duniani.

 

[Gagnija]

I support the Move, but More has to be done, they need to by more big Investment for the people of the Tanzania anyway they belongs to the people of Tanganyika...

Wenyewe wanatudanganya kuwa serikali haipaswi kufanya biashara ili waendelee kututafuna vizuri.

W

 

[The Mockingjay]

Kumbe ndio maana bei ya umeme imepanda. $13m is a whole lotta of money.
But this is a good move for Tanesco.
I hope they run and manage the project well.
They could do better if Tanesco would go public ili na sie wananchi tusaidie funding by buying shares.
Energy is going to pay big time in the future.
GoT should try to raise funds locally kabla hawajaenda international investors or IMF na WB for funding.
Our funding will keep the profits inchini.