Tanzanian Delegation to Showcase Latest Bid Round Opportunities at African Energy Week (AEW) 2024

 

Tanzania’s Petroleum Upstream Regulatory Authority (PURA) recently announced its preparations for the country’s fifth licensing round. Promotion for the licensing round is set to open on March 5, 2025, with the round offering 24 exploration blocks in the country, including 15 onshore and 11 offshore blocks. A high-level delegation led by Tanzania’s Ministry of Energy will showcase available block opportunities at this year’s African Energy Week (AEW): Invest in African Energy 2024 (www.AECWeek.com) – taking place in Cape Town from November 4-8.

The delegation includes the country’s Deputy Minister of Energy Judith Salvio Kapinga; Permanent Secretary of the Ministry of Energy Felchesmi Mramba; Deputy Permanent Secretary of the Ministry of Energy (Petroleum and Gas) James Peter Mataragio; and Director General of PURA Charles Sangweni. Their participation aligns with efforts by the country to attract interest from international oil companies to participate in the fifth licensing round, representing a strategic opportunity for E&P firms to engage with one of Africa’s final oil and gas frontiers.  

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

With an estimated 57 trillion cubic feet of gas reserves – mostly discovered in fields south of the country – offshore blocks in Tanzania’s fifth licensing round will focus on fields in the Indian Ocean and Lake Tanganyika. Licensing terms for the round will include a nine-year exploration period and a 25-year development and production phase, with a potential 20-year extension. Furthermore, technical data – including seismic, gravity and bathymetric reports – will be made available to interested participants. During AEW: Invest in African Energy 2024, the delegation will share insight into the available blocks, providing an opportunity for interested investors to engage directly with the national regulator.

Tanzania’s upcoming licensing round comes at a strategic time for the country’s burgeoning oil and gas industry. In September this year, Oman-based ARA Petroleum received a 25-year development license for the Ntorya Gas discovery in Tanzania. The company anticipates first gas by 2025 once a pipeline from Ntorya to Madimba is constructed, which is expected to be completed within six months. ARA Petroleum has already begun preparatory work at the Ntorya site, including drilling of the Chikumba-1 appraisal well. Initial gas output is projected at 40-60 million standard cubic feet per day (mmscf/d), with plans to increase it to 120 mmscf/d, potentially boosting Tanzania’s gas production by 20-80%. The company is also setting up logistics for subsurface operations and expanding nearby areas for a camp and storage yard.

Meanwhile, in June, PURA selected energy data and intelligence firm TGS to manage and license Tanzania’s offshore subsurface data. The data encompasses 2D and 3D regional seismic and well data over an area of 132,000km2, essential for understanding the country’s geology and hydrocarbon potential. TGS will also undertake future acquisition of new seismic data, reprocess existing data and support Tanzania’s upcoming licensing round.

Tanzania’s offshore oil and gas potential is well-known, with major developments already underway to maximize resources. The country has set its sights on becoming a major LNG exporter, with the flagship Tanzania LNG facility – developed by Equinor, Shell and ExxonMobil – set to produce 10 million tons per annum once complete. While delays have been seen, the project remains a top priority for the government and project partners. At AEW: Invest in African Energy 2024, an update on the project is expected.

“Tanzania remains committed to securing the requisite investment to fuel offshore oil and gas projects. By engaging with international partners, the country is well-positioned to leverage its geological advantages and enhance their position in the global energy landscape through the exploitation of their vast resources. The upcoming licensing round is a testament to the commitment by government to connect companies to Tanzanian blocks,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

During AEW: Invest in African Energy 2024, the Tanzanian delegation will engage in high-level panel discussions and exclusive networking sessions, highlighting lucrative prospects in the country’s energy industry.

Distributed by APO Group on behalf of African Energy Week (AEW).