DAR ES SALAAM, Aug 21 (Reuters) - Tanzania expects its gasresources to increase fivefold within the next two years if newfinds in east Africa's second-biggest economy prove productive.
"It is expected that Tanzania's natural gas resources willrise to 200 trillion cubic feet after the next two years," theenergy and minerals ministry said in a statement.
Discoveries offshore of Tanzania and Mozambique's watershave led to predictions the region could become the world'sthird-largest exporter of natural gas, with the countrystrategically located for exports to Asia.
The country's energy ministry said on Wednesday that oil andgas exploration activities were being carried out offshore,along the coastline, lakes and on onshore blocks.
Tanzania has previously estimated it has 43.1 tcf ofrecoverable natural gas reserves, most of it found offshoresouth of the country.
Tanzania's minister for energy and minerals, SospeterMuhongo, announced in May exploration companies planned to drill17 new wells in the country during the 2013/14 (July-June)fiscal year at a cost of at least $680 million.
Tanzania has currently licensed 16 international energycompanies to search for oil and gas.
British gas firm BG Group, Norway's Statoil,Brazil's Petrobras, Royal Dutch Shell and Exxon MobilCorp are among companies already operating in Tanzania.
The country plans to offer seven deep offshore blocks andone onshore block in October for oil and gas exploration, withthe potential of making more high-impact gas finds.
