Norway’s Equinor is ready to start talks with Tanzania on developing a liquefied natural gas (LNG) project based on a deepwater offshore discovery, the company said on Tuesday.

Tanzanian President John Magufuli has asked his government to proceed with negotiations to set out the commercial and fiscal framework for the LNG project, Equinor, a majority state-owned energy company formerly known as Statoil, said.

“Equinor will now proceed with our partner ExxonMobil with negotiations for a host government agreement,” an Equinor spokesman said in an email to Reuters. He said it was too early to say how long talks with the government could take and how much the project would cost.

Royal Dutch Shell, which operates deepwater Blocks 1 and 4, adjacent to Equinor’s Block 2, previously sought to develop the LNG project in partnership with Equinor and Exxon Mobil. Shell however declined to say whether it would join Equinor and Exxon Mobil or would pursue separate talks with the government.

Source: Reuters

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