DAR ES SALAAM — In an ambitious move set to attract both local and foreign investment, the Petroleum Upstream Regulatory Authority (PURA) of Tanzania is gearing up to unveil new blocks for oil and gas exploration by year-end.
This initiative aims to bolster the nation’s energy sector and harness untapped resource potential.
PURA, responsible for overseeing petroleum upstream activities and liquefied natural gas (LNG) operations in mainland Tanzania, disclosed that approximately half of the surveyed land displays promising signs of oil and gas deposits. This revelation underscores the substantial opportunity awaiting potential investors.
Director General Charles Sangweni revealed plans on Friday, July 12, 2024, for the forthcoming auction, scheduled to commence by late 2024 or early 2025. “We are inviting partnerships with the Tanzania Petroleum Development Corporation (TPDC) to explore and develop these resources, ensuring eventual production,” Mr. Sangweni affirmed during the announcement.
Highlighting the significance of Tanzania’s natural gas reserves, particularly those in Songosongo and Mnazi Bay, Sangweni emphasized their pivotal role in the global energy landscape. With a worldwide shift towards renewable energy anticipated by 2060, Tanzania aims to achieve 80 percent renewable energy usage by 2030.
To date, collaborative efforts between the government and industry stakeholders have led to the discovery of 57.54 trillion cubic feet (TCF) of natural gas across various blocks, comprising 10.41 TCF from onshore sites and 47.13 TCF offshore. These resources currently play a crucial role in electricity generation, industrial applications, and domestic consumption.
As of March 2024, natural gas accounted for 56.1 percent of Tanzania’s electricity generation, equivalent to 2,138 megawatts, while hydroelectric sources contributed 39.1 percent, oil 4.3 percent, and biomass 0.5 percent.
Mr. Sangweni underscored ongoing efforts to expand natural gas usage for household cooking and transportation, thereby reducing reliance on charcoal and firewood and mitigating carbon emissions.
Preliminary surveys spanning 947,000 square meters have identified oil and gas indicators across 534,000 square meters, suggesting significant potential for future exploration and development.
With Tanzania poised on the brink of energy transformation, the upcoming auction of new oil and gas blocks promises to be a pivotal moment in shaping the nation’s economic trajectory and energy security.
Email us at: info@alleastafrica.com
