Energy Policy & Regulation

Tanzania is set to officially launch its fifth oil and gas exploration licensing round tomorrow, May 13, 2025, at the Africa Energies Summit in London, marking a major milestone in its bid to attract global investment into its hydrocarbon sector. The licensing round, the first in over a decade, will offer 26 exploration blocks—23 offshore in the Indian Ocean and 3 in Lake Tanganyika. “This strategic move signals Tanzania’s ambition to reassert itself as a serious player in East Africa’s oil and gas landscape.”

The decision to unveil the licensing round at an international summit is no accident. By aligning the announcement with the Africa Energies Summit, Tanzania aims to maximize exposure and directly engage with major oil companies seeking new frontier opportunities. The summit’s global reach provides an ideal platform to showcase the country’s estimated 57 trillion cubic feet of natural gas reserves. “Timing the launch alongside an influential summit allows Tanzania to capture the attention of key industry leaders and investors in one sweep.”

To strengthen investor confidence, Tanzania has worked to modernize its petroleum sector’s regulatory framework ahead of the licensing round. The Petroleum Upstream Regulatory Authority (PURA) has finalized identification of the blocks, and the government is close to approving a Model Production Sharing Agreement (PSA) that clarifies fiscal terms for investors. “Tanzania’s focus on transparent and investor-friendly reforms could be the game-changer that sets this licensing round apart from competitors.”

Industry analysts note that Tanzania’s success will hinge on its ability to sustain a stable, predictable investment climate and demonstrate reliability in contract negotiations. With neighboring countries like Mozambique and Uganda advancing large-scale energy projects, Tanzania’s proactive approach is timely and could reshape its economic trajectory. “If executed effectively, Tanzania’s licensing round could redefine its energy future and inject significant momentum into regional economic growth.”