East Africa emerging as new hydrocarbon province

West Africa has long held the spotlight as a major oil province, but other areas of the continent are proving just as exciting. Beyond Tullow's success in Uganda, the waters offshore East Africa are attracting attention from various international players.

With successes in Mozambique and potential growing in Tanzania, Kenya and Madagascar, East Africa is emerging as a new hydrocarbon province.

Mozambique

US independent Anadarko Petroleum (NYSE:APC) has seen numerous successes in its Offshore Area 1 in the Rovuma Basin of Mozambique. With successes at Windjammer, Lagosta and Camarao, the natural gas reservoir is now believed to contain some 10 trillion cubic feet of natural gas.

Anadarko has already contracted a consortium between Technip and KBR to conduct the pre-FEED on the development of an LNG liquefaction and export facility in Mozambique.

Tanzania

Despite the recent negative press generated by a Somali pirate attack on a drillship there, Tanzania is also gaining spotlight with Brazilian major Petrobras (NYSE:PBR) and super-major Shell (NYSE:RDS-A) (NYSE:RDS-B) joining forces on two blocks in the deepwaters there.

Drilling is ongoing on the Zeta-1 exploration well on Block 5, and seismic is being acquired to identify future prospects.

BG Group and Ophir Energy have drilled numerous successful wells on Block 1 offshore Tanzania, with Pweza-1, Chewa-1 and Chaza-1 all hitting natural gas.

Kenya

Other countries in East Africa have majors clamoring for acreage, as well. Offshore Kenya, French major Total (NYSE:TOT) has gained interest in five oil and gas blocks in the Lamu Basin.

“This transaction is part of a bold exploration strategy that consists in acquiring large stakes in high-potential frontier plays,” said Marc Blaizot, Total’s senior vice president, Exploration. “Recent discoveries in offshore Mozambique and Tanzania offer a very promising outlook for these Kenyan permits.”

BG Group, Cove Energy and Dominion are also active in Kenya.

Madagascar

Although political issues have clouded some prospects lately in the island nation of Madagascar, certainly the successes in East Africa have upped the ante for this country.

With interest in five onshore blocks, Madagascar Oil (AIM: MOIL) has been diligently trying to develop the Tsimiroro heavy oil field on onshore Block 3104 there, but offshore exploration has not yet started.

Australia's ROC Oil recently divested its interest in the Juan de Nova Maritime Profond Block, which is offshore Juan de Nova, a tiny island possessed by France sandwiched between Madagascar and Mozambique.

Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.