Dar es Salaam — Tanzania has granted the Tanzania Petroleum Development Corporation (TPDC) independent licences to explore for oil and natural gas in four blocks, marking a significant shift towards greater state participation in the country’s petroleum industry.
The licences, covering Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara, were signed at the Julius Nyerere International Convention Centre (JNCC) in Dar es Salaam on October 28, 2026, in the presence of Vice-President Deogratius Ndejembi.
The decision marks the first time TPDC has received petroleum exploration licences in its own name, having previously undertaken such activities in partnership with international companies.
The move is intended to strengthen the state-owned corporation’s capacity to explore and develop domestic petroleum resources while attracting investment and technology needed to advance exploration.
Speaking at the ceremony, Mr Ndejembi said the licences would enable TPDC to fulfil its responsibilities under the Petroleum Act of 2015, which assigns the corporation a central role in petroleum exploration, development and production.
“The signing of these licences is an important step towards strengthening TPDC’s capacity to fulfil that responsibility and participate fully in the entire petroleum value chain,” he said.
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He emphasised the need for technical expertise, sound planning, efficient capital utilisation and effective management of the corporation’s strategies to ensure the initiative delivers results.
Permanent Secretary for Petroleum and Natural Gas James Mataragio said the government had decided to grant TPDC independent licences after the corporation developed the technical capacity to undertake exploration activities.
He said the arrangement would also allow TPDC to seek financially and technologically capable investors to accelerate exploration, given the substantial capital required for petroleum projects.
“By first giving TPDC the blocks, we will accelerate oil and gas exploration,” Mr Mataragio said, adding that the initiative would help build the capacity of both TPDC and other Tanzanian companies.
The exploration programme comes as Tanzania seeks to maximise the economic potential of its estimated 57 trillion cubic feet of natural gas reserves. Between March 2021 and March 2025, the country produced more than 301 billion cubic feet of natural gas, highlighting the sector’s importance to electricity generation and industrial activity.
Whether the newly licensed blocks will yield commercially viable discoveries remains to be established through exploration.
Beyond the four exploration licences, the government is preparing TPDC to take over operations at the Songosongo gas field, a major development in the corporation’s expanding role in the sector.
Mr Mataragio said the development licence previously held by PanAfrican Energy Tanzania (PAET), a subsidiary of Orca Energy, had reached the end of its term. The government now intends to grant TPDC the licence to continue developing the field.
Natural gas production at Songosongo began in 2006 under PAET. The field has since become an important source of gas for electricity generation and industrial operations in Tanzania.
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The transition follows a prolonged dispute over the future of the field. In 2023, PAET sought an extension of its licence but was unsuccessful. The company subsequently filed an international claim against Tanzania in 2024, seeking $1.2 billion.
In April 2026, Orca announced plans to sell its business for $10 to Amber Energy and Taifa Gas. However, Tanzania’s Fair Competition Commission(FCC) blocked the proposed transaction on October 5.
On October 9, PAET publicly rejected the government’s conditions for extending its licence and announced that it would cease operations on November 29.
Mr Mataragio said arrangements were under way to ensure a smooth handover from the existing operator to TPDC, which is expected to assume operational responsibility when the transition takes effect.
The government’s decision could give Tanzania greater direct control over a strategic gas-producing asset. However, the benefits will depend on TPDC’s ability to maintain production, manage infrastructure and attract the investment required to sustain operations.
