Tanzania is preparing to launch a new licensing round for multiple oil and gas exploration blocks in May, marking its first such initiative in over a decade. The nation, which holds an estimated 57 trillion cubic feet of natural gas reserves, sees this as a significant step toward expanding its energy sector and attracting global investors.The upcoming licensing round will include a total of 26 blocks, with three located in Lake Tanganyika and the remaining situated in the Indian Ocean.
The last time Tanzania held a similar round was in May 2014, making this a much-anticipated move for both the government and energy companies looking to explore new opportunities in the region.Charles Sangweni, director general of the Petroleum Upstream Regulatory Authority, emphasized that the groundwork for the licensing process is already well underway. “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 the fiscal terms,” he stated.Sangweni further revealed that Tanzania plans to officially launch the licensing round during the Africa Energy Summit, which will take place in London from May 13th to 15th. This high-profile event will provide an opportunity for Tanzania to showcase its available oil and gas assets, engage with potential investors, and highlight the country’s commitment to developing its energy sector.
Tanzania produces natural gas for electricity and plans a $42 billion LNG facility with Shell, Equinor, and Exxon Mobil. The long-delayed project is still under negotiation, with a few key issues remaining, said Sangweni. “An agreement is coming, but I can’t say when,” he added.
