Dominion Drops Selous Agreement
Bermuda-based Dominion Petroleum has relinquished an oil production sharing agreement it had signed with Tanzania Petroleum Development Corporation over a decade ago, as the firm seeks to distance itself from the controversial exploration works in the Selous game reserve.
Larger than Switzerland, Selous is the world’s largest game reserve and second only to the Serengeti in its concentration of wildlife in the country.
In a statement, the oil and gas exploration firm gave no reasons for the decision, simply saying the African country’s Ministry of Energy and Minerals had accepted the proposal, the “Tanzania Daily News” reports today [Jan.26].
“The Tanzanian Ministry of Energy and Minerals has formally accepted Dominion’s request to relinquish the Production Sharing Agreement covering the Selous contract area, onshore Tanzania,” the statement signed by CEO Andrew Cochran said.
The statement pointed out that the Ministry has also allowed approximately $500,000 of licence and training fees previously paid by Dominion on the Selous contract to be used as credit for Dominion’s deepwater Tanzania drilling operations.
The newspaper reported: “Controversy has been brewing for several years following oil, gas and minerals exploration works going on in the game reserve which is also a United Nations Scientific, Education and Cultural Organization [UNESCO]World Heritage Site. ‘As a listed company at London Stock Exchange, conservation activists’ noise would have affected trading of [Dominion] shares which has forced them to stop the project,’ said a senior Dar es Salaam Stock Exchange broker who preferred to remain anonymous.”
Dominion is an independent energy company domiciled in Bermuda and dedicated to exploration for new oil and gas reserves in East and Central Africa.
