Tanzania Strengthens TPDC Oil and Gas Role

Tanzania’s government has strengthened the capacity of the Tanzania Petroleum Development Corporation (TPDC) to explore and develop the country’s oil and natural gas resources by granting it four exploration licences, enabling the national petroleum company to own exploration blocks and participate more directly in the development of strategic energy resources.

Energy Minister Juma Zuberi Homera announced the development on October 28, 2026, during a ceremony to sign the four licences at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam.

Homera said the decision was grounded in the Petroleum Act of 2015, which provides for TPDC to hold its own petroleum exploration blocks. The arrangement is intended to strengthen the corporation’s technical and operational capabilities while increasing Tanzania’s direct participation in the management of its natural resources.

He said the government would continue strengthening oversight of the oil and gas industry to ensure that exploration and development activities comply with national laws, safety requirements, environmental protection standards and the country’s broader economic interests.

The minister also emphasised the importance of cooperation between the Ministry of Energy, TPDC, the Petroleum Upstream Regulatory Authority (PURA) and other industry stakeholders. He said effective coordination would help ensure that each institution fulfils its responsibilities and that petroleum activities are implemented efficiently and transparently.

The four licences cover the Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara blocks. Their development forms part of Tanzania’s broader efforts to expand exploration, strengthen domestic expertise and improve the long-term contribution of petroleum resources to the national economy.

Homera said the government was also continuing efforts to increase the country’s natural gas reserves. He reported that drilling of three wells in the Mnazi Bay block in Mtwara Region had been completed, comprising two production wells and one exploration well.

The development of additional wells is important to Tanzania’s efforts to sustain gas supplies for electricity generation, industrial production and other domestic uses. However, the long-term impact will depend on the performance of the wells, the commercial viability of the resources and the infrastructure available to transport and distribute the gas.

Alongside exploration and production, the government is expanding the use of natural gas across the economy, including in households, factories, public institutions and transport. Compressed natural gas (CNG) has emerged as an alternative fuel for vehicles, offering opportunities to diversify the transport energy mix and reduce reliance on conventional petroleum fuels.

According to figures provided by the Ministry of Energy for September 2026, Tanzania had 22 operational CNG filling stations, 20 workshops equipped to install natural gas systems in vehicles and more than 20,000 vehicles using CNG.

The figures also showed that 57 industries, 31 institutions and approximately 3,000 households had been connected to natural gas infrastructure. These connections demonstrate the expanding role of domestic gas in supporting industrial activity, institutional energy needs and household consumption.

Increasing local gas utilisation could help support manufacturing, improve energy access and create additional business opportunities. Nevertheless, continued expansion will require investment in pipelines, distribution networks, refuelling facilities, technical skills and safety systems to ensure that the fuel reaches more consumers reliably.

Homera said the government’s objective was to ensure that strengthening TPDC and developing the petroleum sector translated into tangible benefits for Tanzanians. These include employment opportunities, professional training, the development of local technical expertise and greater participation by Tanzanian companies in supplying goods and services to the industry.

The increased role of TPDC also places greater importance on effective financial management, technical competence and accountability. As the corporation takes on more direct exploration responsibilities, its ability to manage investment risks, apply modern technologies and work with qualified partners will be critical to the success of the licensed blocks.

For Tanzania, the strategy extends beyond discovering new petroleum deposits. It is also about building national capacity to manage energy resources, supporting domestic industries and ensuring that natural gas contributes to electricity security and sustainable economic development.

The government’s challenge will be to translate exploration investment into commercially viable resources while protecting the environment, maintaining strong regulatory oversight and ensuring that local workers and businesses secure a meaningful share of the opportunities generated by the sector.