Tanzania to boost production from Mnazi Bay natural gas field.

Tanzania Petroleum Development Corp. has doubled its stake in the Mnazi Bay natural gas field operated by Etablissements Maurel & Prom SA as part of the East African country's plans to increase government participation in strategic projects.

TPDC signed an agreement with the French company on Saturday to increase its stake in the southern gas production project to 40%, after buying a 20% stake from the Paris-based company for $23.6 million. Prior to the latest transaction, Maurel & Prom controlled 80% of the Mnazi Bay gas field.

President Samia Suluhu Hassan is pushing for Tanzania to increase its natural gas production and build pipelines to export it to neighboring countries, including Uganda, Zambia, Kenya and the Democratic Republic of Congo, in a bid to accelerate economic growth. Mnazi Bay has proven natural gas reserves of 641 billion cubic feet and currently produces around 48% of Tanzania's gas, according to Mussa Makame, Managing Director of the Tanzanian oil operator.

According to Nicolas Engel, Managing Director of Maurel & Prom Tanzania, the two companies plan to invest $100 million in this project, aimed at extending gas compression infrastructure and boosting drilling.

Tanzania has total recoverable natural gas reserves of 57.54 Tcf and needs to invest up to $550 million in the Mnazi Bay gas field alone to boost production, said Hassan.

"Our goal should be to increase government participation in projects that work well, not only in the energy sector but also in other sectors," Hassan said in a speech at the signing ceremony.