Oil & Gas

The East African region, home to vast untapped hydrocarbon resources, is on the brink of an energy revolution. With major licensing rounds, new offshore exploration prospects, and increasing global energy demand, East Africa stands at a turning point—one that could shape its economic future for decades to come. Governments across the region are intensifying exploration and development efforts, making the upcoming East African Petroleum Conference and Exhibition (EAPCE’25) a defining moment for the industry. Decision-makers, investors, and energy leaders will gather to strategize on unlocking the region’s full energy potential.

East Africa’s Geological Potential: The Rift and Coastal Basins

Beneath East Africa’s landscapes lie some of the world’s most promising petroleum reserves. The East African Rift System—a vast, geologically active zone stretching from Ethiopia to Mozambique—has been identified as a basin with significant hydrocarbon potential. Recent discoveries in Uganda’s Albertine Graben and Kenya’s South Lokichar Basin have reinforced this optimism, attracting global investors eager to tap into the region’s oil wealth.

Tanzania’s Mnazi Bay and Songo Songo areas, highlights some of the country’s success stories resulted from previous licensing rounds. Similarly, Rwanda’s nascent oil and gas ambitions, with special consideration on hydrocarbon potential in Lake Kivu part of the country, add to the momentum, signaling that the region is ripe for exploration.

Offshore, East Africa’s coastal basins—from Somalia’s deepwater prospects to Tanzania’s and Mozambique’s gas-rich deposits—continue to attract exploration efforts. The region's proven natural gas reserves, particularly the massive finds in Mozambique’s Rovuma Basin and Tanzania’s Block 1, 2 and 4, position East Africa as a future liquefied natural gas (LNG) hub. With the rise of offshore drilling technology and improved deep-sea exploration techniques, new discoveries are expected to reshape the region’s energy map.

Unlocking Offshore Potential: Challenges and Opportunities

While the potential is immense, offshore exploration in East Africa presents both opportunities and challenges. The waters off Tanzania, Kenya, and Somalia remain largely underexplored, with several blocks yet to be awarded to potential investors including international oil companies. However, navigating offshore projects requires robust infrastructure, regulatory stability, and political commitment to ensure a favorable investment climate.

The development of LNG facilities, such as Tanzania’s proposed $40 billion LNG export terminal in Lindi, underscores the commitment to monetizing offshore resources. Industry players are optimistic that regulatory clarity and government incentives will fast-track these projects, positioning East Africa as a key global energy supplier.

Security concerns and geopolitical tensions, particularly in Somalia’s offshore territory and parts of the Mozambique Channel, remain significant hurdles. Addressing these risks through regional collaboration and investment in maritime security will be crucial in unlocking the full potential of offshore exploration.

Upcoming Licensing Rounds: Paving the Way for New Investments

A major highlight of EAPCE’25 is the unveiling of licensing rounds by Tanzania and Kenya, offering global investors opportunities to tap into unexplored petroleum reserves. Tanzania’s 5th Licensing Round focuses on key basins, including deep offshore and onshore blocks. These blocks, some of which are strategically positioned near planned LNG export terminals, provide immediate monetization potential. Kenya’s first Licensing Round builds on existing discoveries, particularly in the South Lokichar Basin, where commercial oil production is on the horizon. The country seeks investors to explore new frontier blocks with pipeline potential. Rwanda’s Oil and Gas Exploration Push marks a significant step for the country’s energy sector. While still in the early stages, Rwanda is opening up doors for potential investors to  undertake exploration, signaling its ambition to be part of East Africa’s petroleum boom.

Shaping East Africa’s Energy Future.

EAPCE’25 provides a platform for governments and investors to engage in critical discussions about the region’s energy future. Beyond oil and gas, the conference will explore how East Africa can balance fossil fuel development with the growing push for energy transition.

Eng. Felchesmi Mramba, Permanent Secretary of Tanzania’s Ministry of Energy and host of the EAPCE’25 , underscored the significance of the conference, stating:

"The East African region is at a critical juncture in its energy journey, with vast untapped hydrocarbon resources and a growing commitment to sustainable energy solutions. Through EAPCE’25, we are showcasing the collective strength of East Africa as an emerging energy hub—offering investors a transparent, resource-rich, and strategically positioned market. This conference is a platform for regional cooperation, where governments and private sector players can align on policies, infrastructure development, and the future of energy security in East Africa."

With energy security becoming a global priority, East Africa is positioning itself as a key player in the industry. By unlocking its hydrocarbon potential and advancing investment-friendly policies, the region is set to benefit from increased energy access, economic growth, and job creation.

As EAPCE’25 approaches, investors and stakeholders cannot afford to miss this opportunity. The discoveries made, the deals signed, and the policies shaped during this event will define the trajectory of East Africa’s energy sector for decades to come. The time to engage is now.

By Irene Jerry,

Oil & Gas Commercial Analyst.