CAPE TOWN, SOUTH AFRICA – October 12, 2024
Tanzania has announced its fifth oil and gas licensing round, offering 24 offshore and onshore exploration blocks in a bid to attract global investors. The announcement was made by the Deputy Minister for Energy, Ms. Judith Kapinga, during the Africa Oil Week: Investing in African Energy Conference held in Cape Town, South Africa.
The licensing round is set to officially open on March 5, 2025, during the East African Oil and Gas Conference and Exhibition in Tanzania. The exploration blocks are located in the Indian Ocean and Lake Tanganyika, which are believed to hold substantial untapped reserves. “The government is committed to promoting investment in Tanzania’s energy sector, and this licensing round offers exciting opportunities for exploration and development,” Ms. Kapinga stated.
The terms for the licensing round include a nine-year exploration period and a 25-year development and production phase, with the possibility of a 20-year extension. Interested companies will have access to technical data, including seismic, gravity, and bathymetric reports.
Alongside mainland Tanzania, Zanzibar has also announced eight blocks for exploration, covering a total area of 31,883 square kilometers. These blocks, located at depths between 500 and 3,000 meters, come with 10,145 linear kilometers of 2D seismic data. Zanzibar’s exploration period will last for five years.
Tanzania has a well-established natural gas industry, with an estimated 57 trillion cubic feet of gas reserves, primarily located in offshore fields. The country’s natural gas is used for electricity generation, vehicle energy, and industrial applications. As part of Tanzania’s strategy to align with the global energy transition, the government is focusing on expanding the use of natural gas while continuing to develop its vast reserves.
Ms. Kapinga also highlighted the government’s commitment to fostering a favorable investment environment for oil and gas exploration. “Tanzania offers enabling infrastructure for transporting oil and gas products, including the natural gas pipeline from Mtwara to Dar es Salaam, natural gas processing plants, and the East African Crude Oil Pipeline,” she said, pointing to strategic initiatives like the TAZAMA oil pipeline linking Tanzania and Zambia.
In addition to exploration opportunities, Ms. Kapinga emphasized Tanzania’s efforts to promote clean cooking energy, a priority led by President Samia Suluhu Hassan. She invited international investors to explore the various opportunities within the country’s energy sector.
While Zanzibar is yet to make commercial discoveries of oil and gas, promising signs of hydrocarbon deposits have been detected in offshore blocks. This latest licensing round presents new opportunities for the region to establish itself as a key player in the oil and gas industry.
With growing interest in African energy resources, Tanzania is poised to attract significant global attention with its upcoming licensing rounds, further solidifying its position as a hub for oil and natural gas development in East Africa.
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