United Republic of Tanzania
Tanzania has been exploring for oil and gas for more than sixty (60) years, supported by extensive geological and geophysical studies aimed at unlocking the country’s hydrocarbon potential. To date, ninety-eight (98) exploration, appraisal and development wells have been drilled across both onshore and deep offshore. In addition, extensive 2D and 3D seismic data have been acquired, covering approximately 289,000 km and 3,000 km² respectively.
Upstream petroleum activities are undertaken through the Tanzania Petroleum Development Corporation (TPDC) and Production Sharing Agreements (PSAs). Currently, eleven (11) active PSAs are operated by nine (9) International Energy Companies (IECs).
Tanzania’s natural gas resources are estimated at 57 trillion cubic feet (TCF), placing the country among Africa’s major natural gas holders. The first onshore natural gas discovery was made at Songo Songo Island in 1974, followed by Mnazi Bay in 1982, Mkuranga in 2008, Ruvu in 2012, and Ruvuma in 2017. Collectively, the onshore discoveries account for approximately 10.41 TCF of Gas Initially in Place (GIIP), while offshore discoveries made between 2010 and 2014 contributed about 47.13 TCF GIIP.
The Songo Songo and Mnazi Bay gas fields have since been developed and continue to supply natural gas for power generation, industrial use, households and compressed natural gas (CNG) for vehicles since 2004 and 2006 respectively.
Following the enactment of the Oil and Gas (Upstream) Act No. 6 of 2016, Zanzibar established two institutions to oversee upstream petroleum activities: the Zanzibar Petroleum Regulatory Authority (ZPRA) as the sector regulator, and the Zanzibar Petroleum Development Company (ZPDC) as the commercial entity.
The Revolutionary Government of Zanzibar entered into a Production Sharing Agreement (PSA) with RAK GAS between 2018 and 2023 for the exploration and development of oil and gas resources in the Pemba–Zanzibar Block. Preliminary interpretation of 2D seismic data indicated the presence of approximately 3.8 TCF of natural gas resources.
Following completion of the 2D seismic acquisition programme, the Government of Zanzibar entered into an agreement with Africa Geophysical Services Limited (AGS) to acquire new 3D seismic data in the Kinyasini and West Paje areas of Unguja Island. The programme is intended to further mature identified leads into drillable prospects and improve subsurface geological understanding. Approximately 400 km² of seismic data acquisition is planned to enhance imaging resolution and support future exploration activities.
OPEN ACREAGE
There are seven (7) open offshore Blocks which are expected to be licensed in the upcoming Licensing Round (5th Licensing Round) in Tanzania Mainland as shown below:
On the other hand, the Government of Zanzibar has ten (10) open Blocks for investment and has issued conditions for direct negotiation. The direct negotiations process aims to speed up and simplify the process of granting Exploration Licenses. The ten (10) Blocks are located in onshore and offshore areas of Zanzibar.
ONGOING UPSTREAM PROJECTS
Exploration Projects
Through TPDC, Tanzania has identified five (5) strategic exploration blocks, namely Eyasi-Wembere, Mnazi Bay North, West Songo Songo, and Lindi-Mtwara for future upstream development. The Government intends to grant exploration licences for these blocks, enabling TPDC to undertake petroleum exploration independently or through joint-venture partnerships.
To support this initiative, TPDC is conducting geological and subsurface studies to further evaluate the hydrocarbon potential of the areas. Drillable prospects have already been identified in Mnazi Bay North, while 2D and 3D seismic acquisition programmes are ongoing in Eyasi-Wembere and Lindi-Mtwara. Preparations are also underway for 3D seismic acquisition in the West Songo Songo Block.
TPDC is currently inviting strategic partners with strong technical and financial capabilities to collaborate in the exploration and development of these hydrocarbon resources. In addition, preparations are ongoing under the existing PSA for the drilling of an exploration well in the Tanga Block located in the northeastern part of Tanzania.
Ntorya Development Project
Development activities are ongoing at the Ntorya Gas Field located in the Ruvuma Basin. The project includes drilling operations and construction of gas gathering and transportation infrastructure to connect production to the Madimba Gas Processing Plant. The Ntorya Project is expected to significantly increase domestic gas supply and support the growing industrial and power generation demand in Tanzania.
MIDSTREAM AND DOWNSTREAM
Tanzania currently produces approximately 190 MMscfd of natural gas from the Songo Songo and Mnazi Bay gas fields. Natural gas is primarily utilized for power generation and contributes significantly to the country’s electricity supply. Beyond electricity generation, natural gas is utilized by industries, institutions, and households for heating and energy applications. Compressed Natural Gas (CNG) is also increasingly being adopted for transportation, particularly in Dar es Salaam, Coast Region, Lindi, and Mtwara. The Government is further expanding gas distribution infrastructure to additional regions such as Morogoro, Dodoma, and Mwanza, while also considering regional pipeline interconnections to neighbouring countries including Uganda and Kenya.
Natural Gas Infrastructures
Tanzania has developed extensive gas infrastructure to support domestic gas utilization and industrial growth. The National Natural Gas Pipeline, stretching approximately 551 km from Mtwara and Songo Songo to Dar es Salaam, has a transportation capacity of about 784 MMscfd.
The country also operates two major gas processing plants at Songo Songo and Madimba with a combined processing capacity of approximately 350 MMscfd, supported by gas receiving facilities at Somanga Fungu and Kinyerezi. In addition, Tanzania operates other strategic gas transportation pipelines, including: The Songas pipeline from Songo Songo to Dar es Salaam, approximately 232 km long with a capacity of 105 MMscfd; and The Mnazi Bay–Mtwara pipeline operated by Maurel & Prom (M&P) and TPDC, approximately 27 km long with a capacity of 70 MMscfd.
Strategic Midstream projects
i) Liquefied Natural Gas (LNG)
The Tanzania Liquefied Natural Gas (LNG) Project is among Africa’s largest planned energy projects and is expected to position Tanzania as a major global LNG exporter. The project is proposed to be developed in the Lindi Region and is estimated to cost approximately USD 42 billion. The project is being jointly pursued by the Government of Tanzania through TPDC together with IECs, including Shell and Equinor with their partners. Negotiations on the Host Government Agreement (HGA) and related commercial arrangements are ongoing, with the Government targeting a Final Investment Decision (FID) in the near term.
Once implemented, the LNG project is expected to unlock commercialization of Tanzania’s offshore resources in Blocks 1, 2, and 4, attract large-scale foreign investment, create employment opportunities, and significantly increase government revenues.
ii) East Africa Crude Oil Pipeline (EACOP)
Tanzania, through TPDC, is participating in the implementation of the construction of East African Crude Oil Pipeline (EACOP), a strategic regional infrastructure project jointly developed by Tanzania and Uganda. The 1,443-kilometre heated crude oil pipeline will transport crude oil from Hoima in Uganda to the Port of Tanga in Tanzania. Within Tanzania, approximately 1,147 km of the pipeline traverses eight regions and twenty-four districts. TPDC holds a 15% equity stake in the project alongside other shareholders including TotalEnergies, CNOOC, and UNOC. The pipeline is designed to transport approximately 216,000 barrels of crude oil per day and is expected to strengthen regional energy trade, infrastructure integration, and economic cooperation. The project has also generated significant opportunities for employment, local content participation, and infrastructure development across Tanzania and the wider East African region. The project is currently at 80% to completion.
Clean Cooking Initiatives
Tanzania is actively promoting clean cooking solutions as part of its national strategy to improve energy access, protect public health, reduce deforestation, and support environmental sustainability. The Government has prioritized clean cooking under the National Clean Cooking Strategy 2024–2034, which aims to accelerate the adoption of clean cooking energy and technologies across households, institutions, and commercial sectors.
Natural gas is expected to play a major role in supporting the clean cooking agenda through expansion of Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), piped natural gas distribution, and other clean energy technologies. Investments are also being made in gas storage, distribution infrastructure, and clean cooking appliances to improve affordability and accessibility. In addition, Tanzania is encouraging private sector participation across the clean cooking value chain.