Zanzibar moves into critical phase of oil and gas exploration

Speaking after the signing ceremony on January 24, 2026, ZPDC Managing Director Mikidadi Ali Rashid said the agreement would provide a clear direction for oil and natural gas exploration in Zanzibar.

He said that in previous years, ZPDC worked with RakGas, which conducted 2D seismic surveys across Unguja and Pemba islands, followed by interpretation of the data.

“As is the standard procedure in oil and gas exploration, we narrow down identified areas and collect additional data to better understand them. We have successfully done this and identified specific areas, which has led us to enter into this agreement to conduct 3D seismic surveys for more detailed data,” he said.

Mr Rashid added that the results are expected to guide the next phase, including drilling an exploratory well.

He said that the contract outlines the specific operational areas, duration of activities and technical approaches to be used. Unlike previous surveys that relied on explosives, the new exercise will employ advanced technology tailored to the area’s requirements.

He said the work is expected to be completed by February 2027, after which the government will have a clearer picture of the oil and gas potential and decide whether to proceed with drilling, either with AGS or another company.

Mr Rashid assured the public that the government is committed to transparency, noting that the objective is to conclusively determine whether oil and gas resources exist and can be exploited, or to close the chapter if they do not.

He also praised AGS for partnering with ZPDC, saying the agreement marks the revival of a sector that had remained inactive for a long time.

Meanwhile, the Minister for Blue Economy and Fisheries, Mr Masoud Ali Mohammed, said the signing of the contract aligns with the government’s blue economy policy, which focuses on the sustainable utilisation of marine and land-based resources.

He said the acquisition of seismic data would enable Zanzibar to move to a critical stage of oil and gas exploration.

“This step is extremely important as it will determine whether Zanzibar proceeds with oil and gas exploration or focuses on other areas,” said Mr Masoud.

The minister commended ZPDC and AGS for reaching the agreement, noting that it was not an easy process.

He said the seismic surveys will be conducted in North Unguja and South Unguja regions and called on residents in the areas to cooperate to ensure the success of the exercise.

Mr Masoud added that while oil and gas remain key focus areas, the blue economy also encompasses other sectors, particularly marine resources, where the government has ongoing development plans.

For his part, AGS Tanzania General Manager Mr Shaun Graham said the company was pleased to be given the opportunity to deploy modern technology in the search for oil and natural gas.

He said the contract would enhance ZPDC’s capacity to assess and potentially utilise the resources for national development.

Mr Graham thanked the government, through ZPDC, for entrusting AGS with the exploration work in Zanzibar.