The firms involved in this agreement are Tancoal Energy Limited (Tancoal), Tanzacoal East Africa Mining Limited (Tanzacoal).
Under the terms of the agreement, Tancoal and Tanzacoal will each earn 30% of the unconventional gas revenue in addition to a 5% royalty payment for JV on gas revenue after repayment of carried costs.
In addition, they will have a carried interest in development costs with repayment from their share of operating profits.
Furthermore, low cost drilling and early appraisal has been facilitated through sharing of drilling costs with NuEnergy Gas.
Tancoal is a joint venture and a public private partnership between IEC holding a 70% stake and the National Development Corporation of Tanzania with a 30% stake and Tanzacoal is a joint venture between IEC with 70% and Olympic Exploration with 30% interests respectively.
