Oil and natural gas in Zanzibar waters have significantly attracted a proportion of foreign investors ready to explore and extract the highly sought-after energy resource.
Bell Geospace Enterprises has therefore kicked off oil exploration last year on behalf of the Zanzibar government.
Late this year, as recorded by The Exchange, Zanzibar penned a Production Sharing Agreement (PSA) with RAK Gas LLC, state natural gas utility of the Emirate of Ras al Khaimah (RAK) in the United Arab Emirates (UAE) which permits permits the exploration, production, development, and sharing of benefits derived from the hydrocarbon resources.
Previously, the 7th President of Zanzibar Dr Ali Mohamed Shein, welcomed Vice-President of the National People’s Congress of the People’s Republic of China, Cai Dafeng, to discuss business and investment opportunities to steer their respective countries to economic growth and development, just after the latter had visited Tanzania.
The meeting seems to have born fruits already with Chinese oil drilling ships arriving in Pemba and Unguja for oil exploration. The tourism-dominated economy has opened its borders to accommodate investment in the diverse sectors for growth and development. Both blocs have potential oil reserves that can elevate the living standards of the citizens once harnessed.
BGP Inc, China National Petroleum Corporation provides geophysical services, technologies, and equipment to the oil and gas industry worldwide cited by Bloomberg. The firm, founded in 1961 is one of the world’s leading geophysical service companies. The business opportunity in East Africa oil and gas industry is tipped to increase the inflow of foreign investments. The region received the highest percentage of FDI last year, touted as Africa’s investment region.
South Sudan, Uganda, Kenya and Tanzania are the front-runners of the oil and gas industry in East Africa, as the sector has emerged to be an attractive business platform. The government is willing to support local and foreign businesses to boost the performance of the industry for a better economy.