OVERVIEW OF TANZANIA HYDROCARBON POTENTIAL & EXPLORATION STATUS Presented at the : American Association of Petroleum Geologists (AAPG) International Conference & Exhibition INTERNATIONAL PAVILION HOUSTON, TEXAS 12TH APRIL 2011

Presentation Outline Key Legislations Sedimentary Basins of Tanzania General Exploration Activities & PSAs Status Discoveries Deep sea Exploration Gas utilisation Opportunities

Key Legislations Exploration of oil and gas in the United Republic of Tanzania is governed by three main key legislations; Petroleum (Exploration and Production) Act, 1980 Income Tax Act 2004 National Environmental Management Act 1983 Exploration and Production of oil and gas is carried under a Production Sharing Agreement (PSA) between three parties namely; the Contractor, the Government and the National Oil Company (Tanzania Petroleum Development Corporation (TPDC).

Sedimentary Basins of Tanzania

General Exploration Activities (Ctn…) Seismic Coverage by December 2010 2D SEISMIC DATA (KM) 3D SEISMIC DATA (SQ.KM) ONSHORE 24,227.120 NONE OFFSHORE 66,196.53 8,798.60 TOTAL 90,423.60

General Exploration Activities (Ctn…) Wells drilled to date ONSHORE 49 DEEPSEA 3 Exploration wells in year 2011 ONSHORE 3 DEEPSEA 2 (PETROBRAS)

Location of Wells drilled onshore and offshore

General Exploration Activities Discoveries and Reserves Wells/Field Year of Discovery Status Reserves Estimates Songosongo 1974 On stream 1 - 2 TCF Mnazi Bay 1982 2 - 3 TCF Mkuranga 2007 Undeveloped 200BCF Kiliwani North 2008 70BCF Pweza-1 (Block 4) 2010 Offshore- Chewa-1(Block 4) Chaza-1 (Block 1)

General Exploration Activities

Production Sharing Agreements (PSAs) status   SIGNED PSAs APPLICATION PSAs DEVELOPMENT PSAs ONSHORE 16 2 OFFSHORE 6 5 TOTAL 22 7 A total 19 Companies are actively engaged in Expl. & Production

Deepsea Exploration Deep sea exploration-related activities: Meteocean studies Seismic operations Establishment of Mtwara Supply Base Drilling operations Seabed Surface Geochemistry and Heat Flow Survey in Block 2

Meteocean Studies Aim: To determine the behavior of the Indian ocean in terms of wind, currents and waves Methodology: Installation of buoys in deepwater which recorded continuous readings for one year Time: Year 2010 in the deepsea area of Tanzania and Mozambique Operators: Statoil, Ophir Energy, Petrobras, Dominion, Anardako Benefits: Planning in fabrication, installation of offshore structures

Seismic acquisitions in deep sea Seismic acquisitions carried out in the deepsea include: 2D by Lamont-Deherty Geological Observers (LDGO lines-old seismic data) (197..) 2D by WesternGeco (1999-2000) 2D Long offset by ION-GXT and TPDC EastAfricaSPAN 1 - (2006) EastAfricaSPAN 2 (2008) EastAfricaSPAN 3 ( APRIL 2011) - Both 2D and 3D in Blocks 1,2,3,4,5,6, and 7 by respective Operators

EastAfricaSPAN 3 seismic lines are shown in RED colour EastAfricaSPAN (1, 2 and 3) EastAfricaSPAN 3 seismic lines are shown in RED colour

Establishment of Mtwara Port Supply Base Refurbished Port located in Mtwara in south east of Tanzania Purpose: To support oil and gas drilling operations in the deepwater Built by Ophir Energy & Petrobras

Deepsea Drilling operations Recent: The first three deep offshore wells were drilled between September 2010 and March 2011 Pweza-1 Chewa-1 Chaza-1 Status: All are gas discoveries Offshore wells to be drilled in 2011 : Block 5 (2 wells) in 2011

Seabed Surface Geochemistry and Heat Flow Survey The objective of the survey is to identify naturally leaking hydrocarbons and to measure temperatures within the sea floor Coring to be carried out between May and June 2011 by TDI BROOKS for STATOIL in Block 2

Opportunities BIDDING ROUNDS: Mini bidding round currently going on for North Lake Tanganyika block (modern rift system). Bidding will close on 7th June 2011 4th Offshore Bidding Round. Licensing round will be launched sometime next year (2012).

Location of North Lake Tanganyika Exploration Area

Contact Details Data package available for North Lake Tanganyika Exploration area include: seismic sections on paper (seismic atlas) Various reports For any inquiries kindly contact our Booth at the International Pavilion OR consult the MANAGING DIRECTOR of TPDC at the following address:

Contact Details

4th Offshore bidding round The bidding round will offer areas which include new and relinquished blocks in the deep sea in water depths (2,000m-3,000m) Data packages will include: 2D Speculative seismic data by WesternGeco 2D seismic data by GX Technology (EastAfricaSPAN 1, 2 and 3) 2D seismic data by Operators in relinquished blocks Public domain well data Associated interpretation reports

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