A large amount of pre-existing seismic data is available for the area, west of the Kiliwani North-1 discovery, and both Key and the Tanzanian Petroleum Development Corporation have identified structures with the potential to be significant gas bearing prospects.
Key will operate Songo Songo West, held equally with Aminex.
Aminex also operates the nearby Nyuni block in which Key holds a 20% interest.
"The new PSA is well located to maximise the potential of the area and being in shallow waters and along the coastal plain it will provide Key with ample drilling location opportunities," Key managing director Ken Russell said.
"The recent success with the drilling of the Kiliwani North-1 well and the geological data gained during its involvement in the recent Nyuni block drilling campaign provides Key with a high degree of confidence that a number of large quality prospects exist in the Songo Songo West area."
He added the gas pipeline transporting gas from the Songo Songo gas field traverses Songo Songo West, adding to the area's attractiveness.
Meanwhile, Key said testing of Kiliwani North-1 had started following the arrival of the well testing equipment package onsite.
Kiliwani North-1 had discovered a 60m gross gas column in the Neocomian sandstones, the same producing reservoir as in the Songo Songo gas field.