TANZANIA is gearing up for a major step in its oil and gas sector with the launch of its fifth licensing round, offering 24 exploration blocks to international investors. The Petroleum Upstream Regulatory Authority (PURA) announced that promotion for this round will begin on March 5, 2025, providing a significant opportunity for global energy companies to explore one of Africa’s most promising oil and gas frontiers. The available blocks include 15 onshore and 11 offshore, located in key regions such as the Indian Ocean and Lake Tanganyika.
Delegation to promote opportunities at African Energy Week
A high-level Tanzanian delegation, led by the Ministry of Energy, will promote these opportunities at the upcoming African Energy Week (AEW) 2024, scheduled from November 4 to 8 in Cape Town. The team will showcase the available blocks and engage with potential investors during panel discussions and networking sessions.
The delegation includes prominent officials such as Deputy Minister of Energy, Judith Salvio Kapinga, and the Permanent Secretary, Felchesmi Mramba. Their presence highlights the government’s commitment to attracting foreign investment to accelerate exploration and production (E&P) activities.
‘This licensing round is a strategic opportunity for international energy companies to engage with Tanzania’s rich energy potential,’ said Charles Sangweni, Director General of PURA.
Vast offshore gas potential
Tanzania boasts an estimated 57 trillion cubic feet of natural gas reserves, much of which lies offshore. The upcoming licensing round offers a nine-year exploration period followed by a 25-year development and production phase, with the potential for a 20-year extension. To attract interest, Tanzania will provide technical data, including seismic and geological reports, to investors.
In June 2024, PURA selected energy intelligence firm TGS to manage the licensing of offshore subsurface data. The data, covering a vast area of 132,000 square kilometres, will provide invaluable insights into Tanzania’s oil and gas prospects. This data includes 2D and 3D seismic and well information, vital for assessing the country’s hydrocarbon potential.
Growing industry and strategic timing
Tanzania’s fifth licensing round comes at a pivotal time for the country’s oil and gas sector. In September 2024, Oman-based ARA Petroleum secured a 25-year development licence for the Ntorya Gas discovery. The company expects to begin gas production in 2025, with initial output projected at 40-60 million standard cubic feet per day (mmscf/d), potentially rising to 120 mmscf/d. This development could boost Tanzania’s gas production by as much as 80 percent, enhancing the country’s energy output.
ARA Petroleum is currently laying the groundwork for the Ntorya project, including drilling the Chikumba-1 appraisal well and constructing a pipeline to transport gas to the Madimba plant. The swift development of this project further underscores Tanzania’s ambition to cement its position as a key player in the global energy market.
Tanzania’s LNG ambitions
Tanzania’s long-term strategy includes becoming a major liquefied natural gas (LNG) exporter, with the flagship Tanzania LNG project being developed by energy giants Equinor, Shell, and ExxonMobil. The project is expected to produce 10 million tonnes of LNG annually. Despite some delays, the project remains a top priority for both the government and private sector partners, and updates are anticipated during African Energy Week 2024.
Executive Chairman of the African Energy Chamber, NJ Ayuk, emphasised the significance of international investment in Tanzania’s energy future, stating, ‘Tanzania is well-positioned to leverage its geological advantages. The upcoming licensing round shows the government’s commitment to connecting companies to Tanzanian blocks, enhancing their standing in the global energy market.’
Engaging international investors
At African Energy Week 2024, Tanzania’s delegation will participate in panel discussions and exclusive networking events, presenting lucrative opportunities to prospective investors. As the country seeks to harness its substantial gas reserves and advance LNG production, the fifth licensing round represents a crucial step in Tanzania’s journey toward becoming a regional energy hub.
With its vast natural resources and proactive government efforts, Tanzania offers a compelling opportunity for energy companies to tap into Africa’s growing energy sector.
