Tanzania is set to launch its fifth petroleum licensing round in March 2025, offering 26 exploration blocks to global investors.
Dr. James Mataragio, the Energy Deputy Permanent Secretary for Oil and Gas, announced the plan during a presentation on Tanzania’s oil and gas sector at the African Energy Week in Cape Town, South Africa.
The conference, which brings together policymakers, investors, and industry leaders, focuses on advancing energy innovations and sustainable development strategies across Africa.
Of the 26 blocks up for auction, 23 are located offshore in the Indian Ocean, while three are situated in Lake Tanganyika, a key area in Tanzania’s rift valley region.
Dr. Mataragio invited investors to connect with the Tanzania Petroleum Development Corporation (TPDC) to explore high-potential blocks, particularly those in Eyasi-Wembere, Mnazi Bay North, and Songo Songo West.
To support investor interest, Tanzania has prepared extensive data packages for each block, including gravity, magnetic, 2D and 3D seismic data, and survey logs.
These datasets vary by block and are available for viewing and purchase by interested parties, creating a streamlined process for accessing valuable exploration information.
The upcoming licensing round reflects Tanzania’s ongoing commitment to creating an investor-friendly climate.
Key reforms under review include modifications to the model production sharing agreement, aimed at improving contractual and fiscal terms.
Proposed adjustments include more favorable royalty rates, cost recovery limits, profit splits for oil and gas, state participation, and other fiscal incentives like reduced rental fees and bonuses.
Dr. Mataragio highlighted Tanzania’s longstanding experience in the petroleum industry, with over 70 years of survey history and two decades of a robust regulatory framework.
The government is also prioritizing infrastructure and energy diversification projects to further support the sector’s growth, ensuring Tanzania remains an attractive destination for oil and gas investments in the future.
