Oil, gas blocks auction now rescheduled for May

However, outstanding legal and procedural matters postponed the process.

Puta director general Charles Sangweni confirmed to The Citizen that the agency was finalising key legal and administrative aspects before announcing the auction.

“We had planned to launch the auction during EAPCE’25, but some key elements were not yet complete. We are now ensuring that everything is in place and by May we will officially announce the auction,” he said.

The agency has been using various platforms, including international conferences as channels to promote the available blocks, providing potential investors with crucial geological and economic data.

Of the 26 blocks up for auction, 23 are offshore in the Indian Ocean, while three are located in Lake Tanganyika.

Despite not launching the auction as initially planned, Pura leveraged the event to showcase Tanzania’s oil and gas potential to international investors.

“The conference provided us with a unique opportunity to engage with investors. We had a dedicated room where we presented data and information about the demarcated blocks,” Mr Sangweni added.

Tanzania last conducted a similar auction in 2013. This year, the government is actively reviving efforts to attract investors to its hydrocarbon sector, aligning with its long-term goal of energy security and economic growth.

Energy expert Emmanuel Nyanda believes that Tanzania’s commitment to exploration and investment promotion will enhance its position in the regional oil and gas sector.

“The global energy market is shifting, but hydrocarbons still play a crucial role. Tanzania has untapped potential and this auction provides an excellent opportunity to attract credible investors who can bring advanced technology and expertise,” he noted.

Another industry specialist, Ms Julia Mwanga, emphasised the need for continued research to discover more resources.

“We have seen significant discoveries of natural gas, but Tanzania still needs more research to fully map its oil potential. The government should encourage partnerships between local institutions and international players to advance exploration,” she said.

So far, Tanzania has discovered an estimated 57.54 trillion cubic feet (TCF) of natural gas. Of this, 1.16 trillion TCF has been verified and partially utilised since 2004 for power generation.

“To date, we have used around 820 billion cubic feet of this gas. The utilisation of domestic gas has saved the country over $17 billion that would have been spent on fuel imports between 2004 and 2023,” Mr Sangweni said.

According to Tanzania’s Natural Gas Utilisation Master Plan (2016-2045), 8.8 trillion TCF is allocated for electricity production, 500 billion cubic feet for household use, 3.6 trillion TCF for industrial consumption, and 600 billion cubic feet for transportation.

As the world transitions towards renewable energy, Tanzania is also making strides in balancing its fossil fuel sector with clean energy initiatives.

The government aims to achieve 80 percent renewable energy usage by 2030 while still leveraging its oil and gas resources for economic growth.

“The energy transition is happening, but Tanzania must strategically use its available resources to support development. The upcoming auction is not just about securing investments; it’s about ensuring sustainable energy security,” Ms Mwanga said.

With the auction now set for May 2025, Tanzania is positioning itself as a competitive player in the regional oil and gas market.

Pura’s engagement at EAPCE’25 has already sparked interest among investors, and the coming months will be crucial in finalising agreements and attracting bids.

As the country continues to promote its hydrocarbon sector, industry experts urge the government to prioritise investor-friendly policies, transparency, and further exploration to maximise potential benefits.