Tanzania is poised to launch its fifth oil and gas licensing round in May, offering 26 exploration blocks in a bid to attract fresh investment into its hydrocarbons sector. This marks the country’s first such round in over a decade, underscoring efforts to revitalise exploration and harness untapped energy potential.
According to Charles Sangweni, Director General of the Petroleum Upstream Regulatory Authority (PURA), 23 of the blocks slated for auction are located offshore in the Indian Ocean, while three are situated in Lake Tanganyika. The auction is expected to be a pivotal moment in Tanzania’s energy sector, aiming to lure global investors to its resource-rich basins.
Tanzania’s natural gas reserves are estimated at over 57 trillion cubic feet, a resource that has increasingly contributed to the country’s power generation, supplying more than half of its electricity needs. The forthcoming licensing round is set to be unveiled at the Africa Energy Summit in London, a strategic move designed to capture the attention of key industry stakeholders and potential investors. Sangweni stated that such international platforms are crucial in ensuring global participation in Tanzania’s oil and gas sector.
The licensing round coincides with ongoing negotiations concerning the country’s ambitious $42 billion liquefied natural gas (LNG) project, which has faced prolonged delays. The government, under President Samia Suluhu Hassan’s administration, aims to conclude talks with investors by June. The project involves major international oil and gas firms, including Equinor and Shell as joint operators, alongside ExxonMobil, Pavilion Energy, Medco Energi, and the Tanzania Petroleum Development Corporation (TPDC). If finalised, the LNG project could significantly bolster Tanzania’s position as a key player in the global energy landscape, leveraging its vast reserves to enhance economic growth and energy security.
Tanzania’s renewed commitment to upstream oil and gas exploration comes amid heightened global interest in Africa’s energy potential. With investment-friendly policies and regulatory improvements, the country is positioning itself as an attractive destination for international energy firms seeking new frontiers for hydrocarbon development. The forthcoming licensing round is expected to serve as a litmus test for investor confidence in Tanzania’s evolving energy landscape.
