Algeria, Tanzania close to deal on oil, gas exploration

Mon Jul 7, 2014 3:26pm GMT
 

ALGIERS (Reuters) - OPEC member and gas exporter Algeria is in advanced talks for a first deal to start oil and gas exploration in Tanzania, boosting its ambitions to expand in east Africa, Algerian and Tanzanian energy ministers said on Monday.

"We want to use the Algeria's experience to explore for oil and gas in several areas in Tanzania," Tanzanian Energy Minister Sospeter Muhongo after talks with his Algerian counterpart Youcef Yousfi, according to Algerian state news agency APS.

Algeria's state energy group Sonatrach last year said it was in negotiations with Tanzania's neighbour Mozambique to buy a stake in offshore gas projects operated by Italy's Eni and Anadarko Petroleum Corp.

Algeria and Tanzania also plan to set up joint ventures for electricity and butane gas distribution, APS said.

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