Dar es Salaam — Tanzania has awarded four new oil and gas exploration blocks to state-owned Tanzania Petroleum Development Corporation (TPDC), as the East African country steps up efforts to expand domestic energy production and attract investment into its petroleum sector.
TPDC Managing Director Mussa Makame announced the awards on Wednesday, identifying the blocks as Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara.
The blocks have already undergone some preliminary exploration work, including seismic surveys, which help identify potential underground oil and gas resources.
The move comes as Tanzania seeks to strengthen its position as an emerging natural gas producer, with the government working to advance major energy projects and increase the country's capacity to supply both domestic and international markets.
Tanzania is also aiming to finalise agreements in the coming months for a proposed $42 billion liquefied natural gas (LNG) project led by Norway's Equinor and Britain's Shell. While most of the project's LNG output is expected to be exported, a portion will be allocated to the domestic market.
On Tuesday, Tanzania announced the discovery of an estimated 223 billion cubic feet of natural gas reserves, marking its first gas discovery in more than a decade.
The latest exploration awards and gas discovery could strengthen prospects for further investment in Tanzania's energy industry, although the commercial potential of the newly awarded blocks will depend on the results of further exploration and subsequent development decisions.
Source: Reuters
Reporting: Nuzulack Daisen
Writing: George Obulutsa
Editing: Alexander Winning
