TANZANIA aims to start a licensing round for dozens of oil and gas exploration blocks in May, the first in more than a decade with an estimated 57 trillion cubic feet of natural gas reserves.

Three of the 26 blocks are in Lake Tanganyika and the rest in the Indian Ocean. The country’s last licensing round was in May 2014.

Director General of the Petroleum Upstream Regulatory Authority (PURA) Charles Sangweni made the call in Dar es Salaam recently on the sidelines of the East African Petroleum Conference and Exhibition (EAPCE) 2025, stating that the last licensing round for the blocks was announced in 2013 and the authority prepares to launch another round this year.

He emphasised that 2025 is a pivotal year for Tanzania as PURA continues its efforts to attract investment in oil and gas exploration. The authority has identified and mapped specific areas to enhance investor confidence and participation.

“This is the right time for investors to assess the designated areas on behalf of the government before the licencing round begins,” he said.

Sangweni extended the invitation to international energy companies operating in East Africa and beyond as well as government institutions and policymakers responsible for developing oil and gas resources.

“We have a lot of offshore and onshore blocks. Once the licencing round begins, we will continue promoting the opportunities at international forums and industry events,” he said.

Regarding Tanzania’s natural gas sector, Sangweni said that the country has discovered 57.54 trillion cubic feet of gas, with only 800 billion cubic feet utilised to date.

“Before the launch of the Julius Nyerere Hydropower Project, natural gas contributed up to 70 percent of Tanzania’s total electricity generation,” he said.

He reaffirmed that exploration efforts are ongoing, particularly in the Lake Tanganyika blocks, which are located within the East African Rift System and are believed to have significant oil potential.

“Geological indicators suggest a strong likelihood of oil deposits in Lake Tanganyika, and we remain optimistic that a discovery will be made,” he said.

Sangweni underscored the government’s commitment to intensifying exploration efforts, particularly as the world transitions towards cleaner energy sources.

 He noted that Tanzania aims to align its strategy with global trends by balancing fossil fuel development with investments in renewable and sustainable energy solutions.

“We are proceeding with promotion activities because the blocks have already been identified and the data is in place. We are waiting for government approval of the Model Production Sharing Agreement which outlines fiscal terms,” he said.

 “Our plan is to launch during the Africa Energy Summit in London from 13th to 15th May.” 

Tanzania already produces natural gas, which it uses to generate electricity, and plans a $42 billion liquefied natural gas facility to be built by a consortium comprising Shell Plc, Equinor ASA and Exxon Mobil Corp.

That long-delayed plan is still under negotiation the government is “trying to align just a few key outstanding issues,” Sangweni said.

“An agreement is coming, that’s my hope. When, I can’t tell you.