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Three new natural gas wells set for drilling in Tanzania

Drilling

What you need to know:

  • The drilling, which will run through to 2026, follows the company’s October 2024 announcement of an $80 million (approximately Sh208 billion) investment in the Mnazi Bay gas field.

Mtwara. A French oil and gas company, Maurel & Prom, is set to commence drilling three new natural gas wells at Mnazi Bay this June, as part of its broader strategy to bolster gas production in Tanzania.

The drilling, which will run through to 2026, follows the company’s October 2024 announcement of an $80 million (approximately Sh208 billion) investment in the Mnazi Bay gas field.

Speaking at the weekend, Maurel & Prom’s Production Superintendent, Mr Hussein Chitemo, said the three new wells are expected to contribute an additional 30 million cubic feet per day (MMcf/d) to the current output, raising the company’s total production capacity to 130 MMcf/d. At present, Maurel & Prom produces an average of 100 MMcf/d from five existing wells.

“The strategy has been endorsed at various high-level platforms, and we are now in the implementation phase. As such, drilling is scheduled to begin in June this year and will continue through to 2026,” Mr Chitemo said.

He added that the Petroleum Upstream Regulatory Authority (Pura) has granted all the necessary approvals for the drilling operations.

Mr Chitemo noted that the expansion aims to meet growing domestic and regional demand for natural gas.

 “The gas extracted from our existing wells is processed at the Gas Processing Facility (GPF). The new wells will enhance our ability to respond more effectively to market needs,” he said.

Maurel & Prom’s key clients include the Tanzania Electric Supply Company Limited (Tanesco), which has been its primary customer since 2006, and Gasco, a subsidiary of the Tanzania Petroleum Development Corporation (TPDC). Gas is supplied to Gasco’s Madimba processing plant for further treatment and distribution.

The government is banking on increased output from Mnazi Bay to significantly boost national gas production, with an eye on exports to regional markets such as Uganda, Zambia, Kenya and the Democratic Republic of the Congo (DRC).

According to Mr Desmond Risso, a geologist at Pura, current production is sufficient to meet existing demand, though the country has capacity to scale up as needed.

“Natural gas from Madimba and Songo Songo is used for electricity generation, industrial processes, domestic consumption and even as fuel for vehicles,” he said.

Maurel & Prom has been a key player in Tanzania’s natural gas industry since 2005, with a long-term commitment to exploration, development and production to support economic growth, job creation and environmental sustainability.

Last week, while tabling the 2025/26 budget estimates for the institutions under his office, Prime Minister Kassim Majaliwa informed Parliament that the country’s power generation capacity reached 4,031.7MW in March 2025.

The increase was largely attributed to the completion of the Sh6.6 trillion Julius Nyerere Hydropower Dam, which alone contributes 2,115MW to the national grid.

Hydropower and natural gas remain key sources of Tanzania’s electricity.

Mr Majaliwa said that, as of February 2025, the country was producing an average of 177.18 million standard cubic feet of natural gas per day—sourced from the Songosongo (87.78 MMcf/d) and Mnazi Bay (89.4 MMcf/d) blocks.

Additionally, Mr Majaliwa said the ongoing construction of natural gas service stations across the country is expected to further encourage the use of natural gas locally.

The government, in partnership with the private sector, continues to promote the use of natural gas across various sectors, including transport, manufacturing, public institutions, restaurants and households.

To date, 14 licences have been issued for compressed natural gas (CNG) projects—six for the construction of CNG refuelling stations and eight for pipeline infrastructure.

In the 2025/26 financial year, the government will continue implementing key energy projects, including those related to electricity generation, transmission and distribution; universal access to electricity in all sub-villages on the Tanzanian mainland; and strategic initiatives in oil and gas.

Efforts will also be intensified to promote clean cooking energy and improve access to petroleum products in rural areas through the construction of filling stations.