Tanzania plans to launch its first oil and gas licensing round in over a decade starting May 2025 in the United Kingdom.
The Petroleum Upstream Regulatory Authority (PURA) announced that it will auction 26 exploration blocks—located in Lake Tanganyika and the Indian Ocean—during the London-based event.
PURA Director General Charles Sangwenj confirmed that the blocks have been identified, data collected, and the agency now awaits final government approval of the Model Production Sharing Agreement (PSA).
This move underscores the government’s renewed push to tap into its hydrocarbon resources and attract international energy investors.
It marks the fifth licensing initiative by Tanzania, aligning with national goals to maximize natural resources and strengthen energy security.
Of the 26 available blocks, three lie in Lake Tanganyika, while the remaining ones are offshore in the Indian Ocean.
The PSA will define key fiscal terms and contractual duties for investors, setting the rules for upstream oil and gas activities.
The licensing round comes as Tanzania works to conclude talks on a long-delayed $42 billion LNG export project.
This LNG initiative aims to leverage the country’s vast gas reserves and establish Tanzania as a leading LNG exporter.
Tanzania holds significant natural gas deposits, with Shell-operated offshore Blocks 1 and 4 holding an estimated 16 trillion cubic feet.
Equinor’s Block 2 has yielded nine discoveries, with estimated in-place volumes surpassing 20 trillion cubic feet.
These figures underscore Tanzania’s potential to influence global energy supply.
However, tax disputes have slowed negotiations with Shell and Equinor.
Deputy Prime Minister and Energy Minister Dotto Biteko expressed hope that a tax resolution will be achieved by June 2025.
source:tanzaniatimes.ne
