26 oil, gas blocks up for grabs in March

Morogoro. The Petroleum Upstream Regulatory Authority (Pura) is expected to auction 26 oil and gas exploration blocks in March 2025.

The blocks were initially scheduled to be auctioned before the end of last year.

Pura director general Charles Sangweni announced on Wednesday during the third session of the second staff council meeting held in Morogoro that 23 of the 26 blocks are in the Indian Ocean and three in Lake Tanganyika.

The aim is to attract investors and boost the search for vital energy resources to support the nation’s economy.

He revealed that the auction is set for March 5 alongside the East African Community (EAC) Oil and Gas Conference slated to take place in Dar es Salaam.

Mr Sangweni said previous auctions held in 2000, 2004, 2008, and 2013 led to the discovery of natural gas, which is now being utilised in various parts of the country.

Tanzania currently boasts 57.54 trillion cubic feet (TCF) of proven natural gas reserves, reducing dependence on polluting energy sources.

“We have set a nine-month target to attract investors by the end of 2025. The discovery of gas aligns with President Samia Suluhu Hassan’s campaign to promote clean cooking energy in Africa,” Mr Sangweni said.

Energy deputy minister Judith Kapinga said the auction would stimulate investment and increase oil and gas exploration, creating jobs and generating national revenue.

She added that the sector is pivotal for economic growth and increasing access to clean energy.

Ms Kapinga said the ministry’s ongoing support for attracting investment in the energy sector, particularly in oil and natural gas, which are essential for achieving the Tanzania Development Vision 2050.

“Attracting investors for these blocks will enhance exploration activities and increase the potential for long-term production. With 57.54 TCF of natural gas discovered, now is the time to push for further exploration to secure this vital resource for the nation’s development.”

The development comes at a time when Tanzania’s natural gas resources discovered in Songosongo and Mnazi Bay have gained global recognition as a viable energy source.

It also comes at a time when the world aims to transition from petroleum to renewable energy by 2060. Tanzania has set a target of achieving 80 percent renewable energy usage by 2030.

To date, Tanzania, in partnership with oil and gas companies, has discovered a total of 57.54 trillion cubic feet (TCF) of natural gas from different blocks.

That includes 10.41 TCF from onshore wells and 47.13 TCF discovered offshore.

Natural gas is currently used mainly for electricity generation, industrial consumption, domestic use, and a little bit for fuel in gas-powered vehicles.

By March 2024, 56.1 percent of the electricity in Tanzania, estimated at 2,138 megawatts, was generated through natural gas, with 39.1 percent coming from hydroelectric sources, 4.3 percent from oil, and 0.5 percent from biomass.

Natural gas is currently used mainly for electricity generation, industrial consumption, domestic use, and a little bit for fuel in gas-powered vehicles.

Mr Sangweni is on record as having been quoted saying that the government will continue with its research efforts to identify natural gas resources that can be utilised for household cooking and transportation, aiming to reduce carbon dioxide emissions by shifting away from charcoal and firewood.

He said in July last year (2024) that preliminary research conducted across 947,000 square metres showed that at least 534,000 square metres exhibited indicators of oil and gas deposits. This suggests that nearly 50 percent of the surveyed area holds potential for these energy resources.