Dar es Salaam – The Permanent Secretary of the Ministry of Energy, Dr James Mataragio, has directed the Petroleum Upstream Regulatory Authority (PURA) to intensify efforts to revitalise the country’s oil and gas exploration sector.
This directive comes in response to a significant drop in exploration activities, with the number of active Production Sharing Agreements (PSAs) falling from 26 to just 11.
Mataragio highlighted the critical need for new strategies to attract investors and ensure the nation’s energy security. He warned that the decline in exploration poses a serious threat to the future availability of natural gas, a resource fundamental to Tanzania’s economic development.
In response to the government’s directive, PURA’s Director General, Engineer Charles Sangweni, confirmed that the authority is already implementing new strategies. These include entering into agreements with geophysical companies to gather crucial petroleum data, a move aimed at enhancing research in both offshore and onshore areas.
This data will provide a clearer picture of Tanzania’s resource potential, thereby increasing the value of its exploration blocks in the international market. The government is also in the process of renegotiating and restructuring existing PSAs to provide greater regulatory clarity and boost investor confidence.
READ MORE: Africa’s Longest Oil Pipeline Nears Completion as State Energy Firm Targets $42bn Gas Deal by June
The Tanzania Petroleum Development Corporation (TPDC) has also been tasked with ensuring the timely completion of all strategic projects. TPDC’s Executive Director, Mussa Makame, has affirmed the corporation’s commitment to implementing the government’s directives to ensure that the nation’s hydrocarbon resources benefit all Tanzanians.
To this end, TPDC is overseeing several multi-billion-shilling projects to sustain and increase natural gas production. One such project is the drilling of three new wells in Mnazi Bay, Mtwara Region, at a cost of Sh235 billion.
This project is expected to increase natural gas production by approximately 45 million cubic feet per day. Another key project is the development of the Ntorya gas field, which is projected to add another 60 million cubic feet of natural gas per day.
These projects are part of a broader effort to leverage Tanzania’s significant natural gas reserves, estimated at 57 trillion cubic feet. The country has already made significant strides, having produced over 301 billion cubic feet of natural gas between March 2021 and March 2025.
To further attract investment, PURA is preparing for the country’s fifth oil and gas exploration licensing round. The licensing round is expected to include 23 offshore blocks in the Indian Ocean and three in Lake Tanganyika.
READ MORE: Indian Oil Targets Tanzania in African Energy Expansion Push
The government acknowledges that foreign investment is crucial, given the high costs and risks associated with exploration. A single onshore well can cost up to US$20 million, while offshore operations can exceed US$175 million.
One of the most significant projects on the horizon is the US$42 billion Tanzania LNG project, which is being developed in partnership with international oil majors Shell, Equinor, and ExxonMobil. The project is expected to produce 10 million tons of LNG per annum by 2030, with 3 per cent of the gas earmarked for the local market.
These efforts are guided by a comprehensive policy framework, including the Petroleum Act of 2015, the Local Content Policy of 2014, and the Natural Gas Policy of 2013. The government has also updated its Model PSA to create a more predictable and attractive investment climate.
The government’s focus on local content has already yielded positive results, with 85 per cent of jobs in the oil and gas sector now held by Tanzanians and 60 per cent of goods and services sourced locally. Strong financial oversight has also led to the recovery of over Sh340 billion.
