The Tanzania Petroleum Development Corporation (TPDC) has been granted four new oil and natural gas exploration licences, marking a significant push by the Tanzanian government to expand exploration and strengthen the state-owned corporation's role in the petroleum industry. The licences cover the Mnazi Bay North, West Songo Songo, Lindi-Mtwara, and Eyasi-Wembere areas. These regions will undergo geological and seismic studies to identify potential hydrocarbon deposits. This move aligns with the government's goals to increase domestic energy supply, attract investment, and build local technical capacity.
According to TPDC Managing Director Mussa Makame, work has already begun in the four blocks, albeit at different stages of exploration. In the Mnazi Bay North area, located offshore in water depths of nearly 800 metres, TPDC has interpreted 2D and 3D seismic data to identify potential natural gas deposits. The next steps include detailed interpretation and preparations for drilling the first exploration well. This development indicates progress in the country's efforts to explore and potentially harness its hydrocarbon resources.
In the West Songo Songo area, TPDC has interpreted 2D seismic data and identified prospective areas. The corporation is preparing to procure a contractor for 3D seismic surveys before proceeding to drill the first exploration well. Meanwhile, in the Lindi-Mtwara block, TPDC has completed the interpretation of 2D seismic data and is collecting additional 3D seismic data. This data will help identify potential drilling locations. At Eyasi-Wembere, TPDC has begun collecting 2D seismic data following earlier surveys.
The licences strengthen TPDC's position as the government seeks to deepen its participation across the petroleum value chain, from exploration to production. Permanent Secretary in the Ministry of Energy, Dr. James Mataragio, highlighted the importance of this development in building TPDC's capacity to mobilise investment, develop expertise, and participate more directly in the industry. The government aims for TPDC to grow into a major oil and gas company capable of attracting investors and developing projects with minimal reliance on borrowing.
In a related development, TPDC is set to become the operator of the Songo Songo gas field, expanding its role beyond participation in the industry. Dr. Mataragio mentioned that gas production at Songo Songo began in 2004, with PanAfrican Energy as the operator. Following the expiry of the existing development arrangement, TPDC is being prepared to assume operational responsibility. A handover process is underway, with TPDC expected to take over operations by the end of October.
The government is also promoting the use of natural gas in power generation, industry, and households, including through compressed natural gas (CNG) for vehicles. Energy Minister Dr. Juma Homera reported that, as of September 2026, Tanzania had 22 operational CNG stations, 20 vehicle conversion workshops, and over 20,000 vehicles using natural gas. Additionally, 57 industries, 31 institutions, and approximately 3,000 households were connected to the natural gas network.
The government has reported progress on infrastructure intended to bring discovered gas into use, with the construction of a pipeline from Ntoria to Madimba for processing and subsequent utilisation reported to be 74 percent complete. However, expanding exploration and production will require substantial financing, technical expertise, and effective oversight. The government emphasised that projects must comply with petroleum laws, licence conditions, environmental safeguards, and safety standards.
Key points
- The licences cover Mnazi Bay North, West Songo Songo, Lindi-Mtwara, and Eyasi-Wembere areas.
- TPDC is set to become the operator of the Songo Songo gas field.
- Tanzania aims to increase domestic energy supply and attract investment into the petroleum sector.
