UAE Firm Signs First Zanzibar PSA

Zanzibar and RAKGas - owned by the government of Ras Al Khaimah, the northernmost of the seven United Arab Emirates - have signed an oil and gas production sharing agreement (PSA).

The agreement, signed October 29, is the first made by Zanzibar - a semi-autonomous island that is part of Tanzania - since the enactment of the Zanzibar Oil and Gas (Upstream) Act in 2016.

The agreement, that covers the 11,868 km2 Pemba Zanzibar Block, will be actioned by RAKGas Zanzibar, together with the Zanzibar government and the Zanzibar Petroleum Development Company.

The signing of the agreement was witnessed on the island by Sheikh Saud bin Saqr Al Qasimi, the ruler of Ras Al Khaimah, together with Zanzibar's president, Ali Mohamed Shein.

In a statement, RAKGas CEO Kamal Ataya said: "RAKGas is proud to be the company to enter into Zanzibar's first-ever exploration project". Although Zanzibar is part of Tanzania it has autonomy, under the 2016 Oil and Gas (Upstream) Act, to sign PSAs and oversee its own resources, plus any revenue derived from them.

Exploration on the island is still at an early stage, but it has potential for both gas and oil. Last year RAKGas contracted UK-based firm, Bell Geospace, to conduct hydrocarbon exploration both onshore and offshore Zanzibar.

"Ras al-Khaimah and Zanzibar have enjoyed strong ties for several years and this PSA is the culmination of the efforts of two friendly regions to cooperate for the benefit of their people. RAKGas being chosen by Zanzibar for its first foray into oil and gas exploration highlights the expertise of RAKGas and the depth of trust between us," said Sheikh Saud bin Saqr Al Qasimi.