CAPE TOWN, SOUTH AFRICA – Tanzania is set to auction 26 petroleum exploration blocks in its 5th licensing round in March 2025. The Deputy Permanent Secretary of the Ministry of Energy (Gas and Oil), Dr. James Mataragio, disclosed this in Cape Town on November 5, 2024, while delivering a presentation on Tanzania’s oil and gas sector overview and investment opportunities at the African Energy Week held in Cape Town, South Africa.
In his presentation, Dr. Mataragio explained that of the 26 blocks, 23 are offshore in the Indian Ocean, while three are located in Lake Tanganyika.
Mataragio also encouraged investors to partner with the Tanzania Petroleum Development Corporation (TPDC) to explore oil and gas in the Eyasi-Wembere, Mnazi Bay North, and Songo Songo West blocks.
He added that data sets for the blocks, though varying from block to block in type and coverage, generally include gravity, magnetic, and seismic (2D and 3D) data, as well as well data, and are readily available for investors to review before deciding to participate in the upcoming auction.
Additionally, Dr. Mataragio highlighted the government’s efforts to ensure a successful 5th licensing round. In this regard, he mentioned that the country is in the final stages of reviewing the Model Production Sharing Agreement, among other tools, to make contractual and fiscal terms more attractive.
Terms that have been improved to attract more investment include the royalty rate, cost recovery limit, profit oil/gas split, state participation, rental fees, bonuses, and taxes.
On why Tanzania stands out as a preferred investment destination, particularly in oil and gas, Dr. Mataragio cited the country’s over 70 years of experience in the petroleum industry and proven petroleum systems. He also noted that the government has made significant efforts to improve the investment climate and implement strategic projects, such as the Mwalimu Julius Nyerere Hydropower Project (JNHPP).
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