Tanzania Daily News: Dar Mulls MPSAs Review to Attract Oil, Gas Search

Tanzania may consider reviewing the Model Production Sharing Agreements (MPSAs) to attract more investors in exploration of oil and natural gas.

This has come amid declining prices of oil in the world market, prompting many international oil companies to reduce their exploration budgets. Prices for crude oil in the world market have been decreasing over the past months to about 61 US dollars per barrel at present from over 100 dollars last year.

"If the current plunging trend persists, we may have to review the terms of the MPSA to attract more investments in exploration," said Tanzania Petroleum Development Corporation (TPDC) Acting Director for Corporate Strategy, Dr Wellington Hudson.

Dr Hudson added that the current model, which was drafted in 2013, came at the time of increased productivity of East African basins following discoveries in the deep-offshore in 2010 in Tanzania as well as successes in neighbouring Mozambique, Uganda and Kenya.
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