• PSA is a core legal contract between Oilbi Ltd, the Ministry of Energy, and the Tanzania Petroleum Development Corporation(TPDC).
• This agreement secures Oilbi's exclusive rights for exploration and development of natural gas in offshore Blocks 2R and 3R.
• The PSA forms the legal foundation for Oilbi's LNG project, setting clear terms for revenue sharing, investment recovery, and compliance with international standards across environmental, social, and governance(ESG) practices.
• The PSA is currently in its final stage, pending official signature by all parties.
• Once signed, it will provide full legal certainty and protection for Oilbi's activities, enabling project advancement and facilitating partnerships with global energy and financial institutions.
• Exclusive Rights : Oilbi takes exclusive exploration and development rights in Blocks 2R and 3R for both oil and natural gas.
• Royalty : Fixed at a globally competitive 7.5%
• Cost Recovery : High recovery Capex of up to 75% of total production, reducing investor risk and accelerating quick return on investment
• Local Content and ESG : Requires prioritization of local businesses, technology transfer, and strict adherence to environmental and safety standards.
• Arbitration : International dispute resolution under ICC rules is guaranteed, with freedom for foreign exchange and remittance.
• Assignability : Project Rights can be assigned to affiliates or third parties.