The Tanzanian government has announced that it will retain up to 65 per cent of future oil revenues as it embarks on its first deepwater drilling project.

Speaking to This Day, Yona Killagane, managing director of the state-run Tanzania Petroleum Development Corporation (TPDC), said revenues will be between 55 and 65 per cent over the next 20 years.

His comments followed the landmark signing of a $50 million contract with Ophir Energy to conduct deepwater drilling in the country for the first time, with exploration due to start this month.

Mr Killagane said contractors working in the country are also required to pay for oil and gas training initiatives in order to ensure local workers can find employment in the energy sector.

Plans to develop offshore fields in Tanzania follow highly successful drilling campaigns in Uganda and Ghana, both of which are preparing to achieve first oil with investment in extensive training and development initiatives.

Getenergy for Western Africa