Indian Oil Corporation (IOC), India’s largest state-owned refiner, has signalled its intent to invest in Tanzania’s oil and gas sector. The interest was formally expressed during a high-level meeting at the India Energy Week 2026, concluding today, January 30.
During the conference, a Tanzanian delegation led by Deputy Minister for Energy, Salome Makamba, met with IOC’s Director for Planning and Business, Suman Kumar.
Mr Kumar highlighted Tanzania’s strong market potential, citing rising demand for petroleum products and liquefied petroleum gas (LPG) driven by the country’s economic growth, increasing population, and rapid urbanisation, as detailed in the initial meeting documents.
Deputy Minister Makamba welcomed the potential investment, stating that Tanzania is open to global partnerships to develop its energy sector.
She encouraged IOC to establish local operations and participate in joint fuel procurement arrangements to enhance competition and ensure a stable supply of affordable fuel, reinforcing the government’s commitment to its clean cooking energy agenda.
This move is part of a broader strategy by India to secure its energy future. The International Energy Agency (IEA) forecasts that India will be the largest source of global oil demand growth through 2030, with its import needs projected to rise to 5.8 million barrels per day (bpd) from the current 4.6 million bpd.
Facing declining domestic production, which only accounts for about 13 per cent of its needs, India has been actively diversifying its crude oil sources, recently increasing purchases from African nations like Angola and Nigeria. IOC itself has a long-term strategy of expanding its footprint across more than 15 hydrocarbon-rich African nations.
A snapshot of Tanzania’s energy landscape reveals a nation on the cusp of significant development, though it currently does not produce any crude oil and imports all of its refined petroleum products, consuming between 35,000 and 83,000 bpd.
The country’s primary potential lies in its vast natural gas reserves, estimated at over 57 trillion cubic feet.
This has attracted several international energy firms. The key players currently involved in exploration and development include:
| Company | Role in Tanzania |
|---|---|
| Tanzania Petroleum Development Corporation (TPDC) | The state-owned corporation overseeing the nation’s hydrocarbon sector. |
| Equinor & ExxonMobil | The Norwegian company Equinor operates Block 2 with a 65 per cent interest, partnered with ExxonMobil (35 per cent). |
| Shell | The British major leads operations in Blocks 1 and 4. |
| Other Exploration Companies | Around 22 companies, including Ophir Energy and Petrobras, are involved in exploration activities. |
| Oil Marketing Companies | Puma Energy and Total are major players in the downstream sector, distributing fuel within the country. |
READ MORE: Gas-Rich Tanzania Pushes for $42 Billion LNG Deal Amid Sector Challenges
The government is keen to monetise these gas reserves. Deputy Minister Makamba announced at the Goa conference that construction on a long-stalled liquefied natural gas (LNG) plant is expected to begin by the end of 2026.
The project is central to Tanzania’s ambition to become a regional energy hub and a significant LNG exporter.
