Zanzibar has officially announced the opening of two new onshore oil and gas blocks for international investment, following the demarcation of a 12,814-square-kilometer area spanning Unguja and Pemba islands. The Minister made the announcement for Blue Economy and Fisheries, Shaaban Ali Othman, who invited international oil companies (IOCs) to submit proposals for the newly designated blocks, named Zanzibar One (Z1) and Zanzibar Two (Z2).
The blocks, which cover 6,572 square kilometers (Z1) and 6,242 square kilometers (Z2), were created following the relinquishment of the former Pemba-Zanzibar Block by RAKGAS Zanzibar Limited. Speaking at a press conference, Minister Othman highlighted the strategic importance of this move, aligning it with Zanzibar’s broader development goals, including the Zanzibar Development Vision 2050 and the Blue Economy Policy 2022.
“We are excited to announce that these two new blocks are open for investment,” Othman said, emphasizing Zanzibar’s commitment to becoming energy independent. He also noted that the blocks present a valuable opportunity for international oil companies to participate in Zanzibar’s growing oil and gas sector.
The minister provided an update on Zanzibar’s 1st Licensing Round, launched in March 2024, which opened eight offshore blocks for exploration. He mentioned that the government has been actively promoting these opportunities through roadshows, both virtually and in-person, to attract more investors. The licensing round is scheduled to close on December 16, 2024.
Othman expressed optimism about the future of Zanzibar’s oil and gas exploration, stating that the response from international companies so far has been promising. He also thanked President Hussein Mwinyi for his leadership in accelerating the development of the upstream oil and gas sector.
In addition, Hamad Bakar Hamad, Principal Secretary in the Ministry of Blue Economy and Fisheries, emphasized the need for public support in realizing President Mwinyi’s vision of developing Zanzibar’s oil and gas potential.
The unveiling of Z1 and Z2 marks a significant step in Zanzibar’s efforts to attract investment and drive economic growth through the development of its energy resources.
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