Vice-President Deogratius Ndejembi has emphasized the need for Tanzania's oil and gas industry to deliver greater benefits to Tanzanians, particularly young people and local businesses. This call comes as the country seeks to build a $1 trillion economy by 2050. The Vice-President made these remarks during the signing of four exploration licences for the Tanzania Petroleum Development Corporation (TPDC). These licences cover the areas of Mnazi Bay North, West Songo Songo, Lindi-Mtwara, and Eyasi-Wembere.
The government and institutions overseeing the sector need to strengthen local participation by preparing Tanzanians to secure employment, develop businesses, and provide services as petroleum projects advance. Mr. Ndejembi stressed that preparations for local participation should begin before major projects reach the implementation stage. This will allow Tanzanians to acquire the necessary skills and business capacity to compete for opportunities in the industry. He cited the example of a Tanzanian entrepreneur who returned from Saudi Arabia, established a company, and secured work in the Mnazi Bay gas project.
The four licences signed are intended to strengthen TPDC's role in exploration and enable the national oil company to participate more directly in the petroleum value chain. TPDC managing director Mussa Makame stated that the corporation would seek to ensure that exploration contributed to the country's broader development objectives. He emphasized that the success of oil and gas exploration should not be measured by discoveries alone but by the ability to turn these resources into real economic opportunities that generate revenue, jobs, reliable energy, and development for the people.
The Minister for Energy, Dr. Juma Homera, noted that the licences marked another stage in the development of Tanzania's petroleum resources. He cited the completion of drilling activities in Mnazi Bay, where an exploration well discovered an estimated 223 billion cubic feet of natural gas. Dr. Homera stated that Tanzania's estimated natural gas resources stood at 57.54 trillion cubic feet. The government is expanding the use of gas in electricity generation, industries, households, and transport.
By September 2026, Tanzania had 22 compressed natural gas (CNG) stations, 20 vehicle-conversion garages, and more than 20,000 vehicles using natural gas. The Minister also mentioned that 57 industries, 31 institutions, and about 3,000 households were connected to the gas pipeline. This expansion aims to increase the availability of natural gas for the development of the country.
Exploration requires substantial capital, modern technology, and specialized expertise, making careful planning and cooperation with investors essential. Permanent Secretary in the Ministry of Energy, Dr. James Mataragio, emphasized that oil and gas exploration is a capital-intensive activity. He noted that exploration budgets could range between $15 million and $30 million, with about 70 per cent spent directly on drilling.
The implementation of the licences should support Tanzania's long-term development objectives. Petroleum Upstream Regulatory Authority (PURA) director-general Dr. Charles Sangweni stated that the implementation of these licences will align with the National Development Vision 2050. The board of TPDC will oversee the corporation's activities to ensure that the opportunities are managed responsibly, with a focus on good governance, transparency, and financial discipline.
Key points
- Tanzania aims to build a $1 trillion economy by 2050.
- The country has an estimated 57.54 trillion cubic feet of natural gas resources.
- The government is expanding the use of gas in electricity generation, industries, households, and transport.
