Tanzania to Launch First Oil and Gas Licensing Round in Over a Decade

Tanzania to Launch First Oil and Gas Licensing Round in Over a Decade

Tanzania will launch its first oil and gas licensing round in more than ten years in May 2025, with a formal event planned in the United Kingdom, according to the Petroleum Upstream Regulatory Authority (PURA).

The bidding round will offer 26 exploration blocks, located in Lake Tanganyika and the Indian Ocean, as part of Tanzania’s renewed efforts to tap into its hydrocarbon potential and attract foreign investment.

PURA Director General Charles Sangwenj confirmed that data for all blocks has been collected and the authority is now awaiting final government approval of the Model Production Sharing Agreement (PSA), which will define fiscal terms and investor obligations.

This marks Tanzania’s fifth licensing round, aligning with the country’s broader strategy to unlock natural resource wealth and enhance national energy security.

Of the 26 blocks on offer, three are in Lake Tanganyika, while the rest are offshore in the Indian Ocean.

The licensing round comes as Tanzania seeks to finalize agreements for a long-delayed $42 billion LNG export project, which could transform the country into a major liquefied natural gas exporter.

Tanzania boasts significant gas reserves, with Shell-operated Blocks 1 and 4 estimated to hold 16 trillion cubic feet (tcf) of gas.

Meanwhile, Equinor’s Block 2 has yielded nine discoveries, with total volumes exceeding 20 tcf.

Despite these promising resources, tax disputes have slowed progress in negotiations with Shell and Equinor.

However, Deputy Prime Minister and Energy Minister Dotto Biteko expressed optimism that a resolution will be reached by June 2025.

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