Oil & Gas

Tanzania is preparing to launch a licensing round for oil and gas exploration blocks in May 2025, marking the first such round in over a decade. The licensing round, which will offer dozens of exploration blocks, is expected to include an estimated 57 trillion cubic feet of natural gas reserves. This significant opportunity will allow investors to assess potential areas of interest before the official licensing process begins. The upcoming licensing round is a critical step for Tanzania to boost its oil and gas exploration efforts.

According to Charles Sangweni, the Director General of the Petroleum Upstream Regulatory Authority (PURA), the last licensing round took place in May 2014, with the previous announcement occurring in 2013. Sangweni highlighted that 2025 is a crucial year for Tanzania’s oil and gas sector, as PURA continues to work towards attracting foreign investments to the country’s oil and gas resources. Sangweni emphasized that the 2025 licensing round presents a valuable opportunity for investors to explore the designated areas and prepare for participation.

Tanzania’s natural gas sector has seen remarkable growth, with the country having discovered 57.54 trillion cubic feet of gas, though only 800 billion cubic feet have been utilized so far. Sangweni highlighted that before the launch of the Julius Nyerere Hydropower Project, natural gas accounted for up to 70 percent of Tanzania’s total electricity generation. Exploration efforts continue, especially in the Lake Tanganyika blocks, which are part of the East African Rift System and believed to have significant oil potential. The exploration of Lake Tanganyika blocks is expected to yield significant findings, with geological indicators suggesting a strong possibility of oil deposits.

As Tanzania moves forward with its energy plans, Sangweni stressed the government's commitment to balancing fossil fuel development with investments in renewable energy sources. The country is also preparing for a $42 billion liquefied natural gas facility to be developed by a consortium of Shell, Equinor, and Exxon Mobil. Despite ongoing negotiations, the government remains optimistic about finalizing key issues and moving forward with the project. This marks a pivotal moment in Tanzania's energy development as it aligns itself with both fossil fuel and renewable energy trends on the global stage.