Tanzania has awarded four oil and natural gas exploration licences to the state-owned Tanzania Petroleum Development Corporation (TPDC), giving the company a stronger mandate to explore the country’s hydrocarbon resources and expand its involvement in upstream petroleum operations.
The newly allocated blocks are Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara. The licences will enable TPDC to take a more active role in identifying potential oil and gas deposits, marking a significant development in the government’s efforts to increase national participation in the petroleum industry.
The agreements were signed at the Julius Nyerere International Conference Centre in Dar es Salaam in a ceremony attended by Tanzania’s Vice President, Deogratius John Ndejembi. The allocation forms part of Tanzania’s broader strategy to strengthen control over its petroleum resources, improve energy security and attract investment into hydrocarbon exploration and development.
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Exploration activities
Under the new arrangements, TPDC will have the authority to conduct exploration activities directly, drawing on its technical capabilities and institutional resources. The corporation will also be able to work with private-sector investors to access the financing, technology and specialised expertise required for petroleum exploration.
Ndejembi said the expansion of TPDC’s responsibilities should be accompanied by investments in technical skills, operational efficiency and institutional capacity. He emphasised that the corporation needs to develop the ability to participate more independently in upstream petroleum activities rather than relying mainly on interests held through partnerships with other exploration and production companies.
He also urged TPDC to establish strategic relationships with experienced investors while maintaining effective management of public resources and protecting the country’s interests. The Vice President stressed that exploration programmes must adhere to licensing requirements, environmental regulations and safety standards to ensure responsible development of Tanzania’s petroleum resources.
The government is also seeking to ensure that increased activity in the oil and gas industry creates wider economic opportunities for Tanzanian businesses and workers. Ndejembi directed the Ministry of Energy, through the Petroleum Upstream Regulatory Authority (PURA), to prepare a plan for expanding local participation in petroleum projects. The proposed framework is expected to improve access to jobs, contracts, technical training, investment opportunities and technology transfer for domestic companies and professionals.
Particular attention will be given to young people and women, with the government seeking to strengthen the skills needed to compete for employment and business opportunities in major petroleum developments. The Vice President further called for improved supervision of exploration activities, including stricter performance monitoring, financial accountability and effective management of licence holders.
The four licensed areas will undergo exploration work to establish their geological characteristics and determine whether they contain recoverable oil and natural gas deposits. The activities are expected to generate additional geological and geophysical information, which will guide decisions on further exploration, investment and potential field development.
Any discoveries will need to undergo technical and commercial assessments before production decisions can be made. If commercially viable reserves are established, the projects could contribute to Tanzania’s domestic energy supply, create employment, increase public revenues and stimulate investment in related industries and infrastructure.
By granting TPDC direct exploration rights over the four blocks, Tanzania is seeking to build a stronger national presence in the upstream petroleum industry while creating opportunities for partnerships with international investors and technology providers. The success of the initiative will depend on the corporation’s ability to mobilise funding, deploy the necessary technical expertise and translate exploration activities into commercially viable petroleum developments.
