Tanzania to launch its fifth round of oil and gas licensing in May

Tanzania announced on Thursday that it would be launching its fifth round of oil and gas licensing in May, an initiative aimed at stimulating investment in its hydrocarbon sector. A total of 26 exploration blocks will be put up for auction, including 23 off the Indian Ocean and three in the waters of Lake Tanganyika, said Charles Sangweni, Director General of the Upstream Petroleum Regulatory Authority (PURA), in an interview with Reuters.

This cycle marks the return of oil and gas auctions to the East African country after a hiatus of more than ten years. Previous exploration campaigns have uncovered more than 57,000 billion cubic feet of natural gas reserves, a resource that is now used to generate more than half of Tanzania's electricity. On the strength of this potential, the government is seeking to attract new players to accelerate the development of its energy industry.

Charles Sangweni indicated that the official launch of this licensing round will take place at the African Energy Summit, scheduled for May in London. "This type of activity should be launched at major conferences that bring together the main investors in the oil and gas sector", he explained, stressing the importance of this international platform for maximising the visibility of the operation. "The May conference is the closest event we are targeting for this initiative."

This new round comes at a time when Tanzania is seeking to strengthen its position on the regional and global energy markets. The proposed blocks, mainly offshore, are expected to attract the interest of major international companies, while the country is counting on its gas resources to support its economic growth.

At the same time, the administration of President Samia Suluhu Hassan is continuing negotiations on a $42 billion liquefied natural gas (LNG) project, which has been on hold for several years. These discussions, involving giants such as Equinor, Shell, ExxonMobil, Pavilion Energy, Medco Energi and the national company TPDC, should be concluded by June 2025. This mega-project, co-led by Equinor and Shell, aims to exploit the country's vast gas reserves for export, while meeting local energy demand.

With this double boost - the licensing round and the relaunch of the LNG project - Tanzania is positioning itself as a key player in the African energy landscape, seeking to capitalise on its resources to attract foreign investment and diversify its sources of revenue.