KenGen seeks geothermal drilling contract in Tanzania

Near Ngozi, Tanzania (source: Geothermal Power Tanzania Ltd.)

KenGen Acting Managing Director Abraham Serem has stated that the state-owned power generation company is currently actively pursuing two geothermal drilling projects in Tanzania. If the bid is successful, the contracts will add to similar drilling projects undertaken recently by KenGen in Djibouti and Ethiopia.

“We have responded to expressions of interest for two from Tanzania and we are waiting for their response. Some are for studies and others for drilling,” said Serem.

The drilling contracts are part of KenGen’s ambitious diversification strategy, in which the company seeks to acquire new revenue streams by offering commercial drilling services, geothermal consulting and other related services across Africa.

Serem did not provide more details on the nature or value of the drilling contracts in Tanzania. Several tenders were announced for geothermal projects in Tanzania in late 2022 and mid-2023. These include contracts for slim hole drilling in the Ngozi prospect, shallow drilling in Songwe, and supervision services for detailed surface studies in the Natron prospect.

The Tanzanian government has set a target of developing 200 MW of geothermal power generation capacity by 2025. To this end,  52 areas have already been identified for potential geothermal development spread across the regions of Mbeya, Arusha, Iringa, Kilimanjaro, Dodoma, Shinyanga, Morogoro, Mwara, Manyara, Kagera, Katavi, Rukwa, Tanga, Singidi, and Songwe. The Tanzania Geothermal Development Company (TGDC) is currently exploring several of these sites.

Source: Business Daily Africa