In May, Tanzania will initiate its first oil and gas licensing round since 2014, offering 26 exploration blocks in a bid to attract investment and develop the country’s natural gas sector.
Tanzania is set to launch its fifth oil and gas licensing round in May, marking the country’s first such bidding event in over a decade. The round will offer 26 exploration blocks, including three located in Lake Tanganyika and the rest offshore in the Indian Ocean. This new bidding round aims to stimulate investment and further develop Tanzania’s hydrocarbons sector, particularly its significant natural gas resources, which are estimated at 57 trillion cubic feet.
Charles Sangweni, the Director General of Tanzania’s Petroleum Upstream Regulatory Authority (PURA), confirmed that the data and blocks for the bidding have already been finalized, with the country now awaiting government approval of the fiscal terms outlined in the Model Production Sharing Agreement. Tanzania plans to officially launch the round during the Africa Energy Summit in London, scheduled for May 13-15.
The nation’s natural gas sector has been a key focus of development, with ongoing projects aimed at utilizing these resources to generate electricity and support the broader economy. Tanzania’s long-planned $42-billion liquefied natural gas (LNG) export facility has faced delays, with Shell and Equinor still awaiting agreements to advance the project.
This licensing round comes at a critical time for the country’s energy sector, as Tanzania looks to finalize key negotiations for the LNG project with global investors, including Shell, Equinor, and ExxonMobil, while addressing outstanding fiscal and regulatory concerns. The successful implementation of these projects could significantly boost Tanzania’s economy and further establish it as a major player in the global energy market.
In addition to boosting energy production, the licensing round is seen as an essential step toward attracting further international investment in Tanzania’s oil and gas sector, which has remained underdeveloped despite the country’s vast resources. The upcoming round is expected to play a crucial role in unlocking Tanzania’s energy potential in the coming years.