TPDC to Take Over Songo Songo Gas Operations

The Tanzania Petroleum Development Corporation (TPDC) has been granted licences for the exploration and development of four oil and natural gas blocks, marking a significant step towards strengthening Tanzania’s control over its petroleum resources and expanding the role of its national energy company.

The development will enable TPDC to increase its direct participation in petroleum exploration and development, including taking over operations at the Songo Songo gas field after approximately 20 years of involvement by PanAfrican Energy.

Speaking in Dar es Salaam on October 28 during the signing ceremony for the four licences, Permanent Secretary in the Ministry of Energy responsible for Oil and Natural Gas, Dr James Mataragio, said the decision reflects the government’s investment in building national capacity in the petroleum industry.

He said investments made over the years had strengthened TPDC’s ability to participate more directly in managing and developing the country’s oil and gas resources, reducing its reliance on foreign companies for certain operational responsibilities.

According to Mataragio, the government intends to increase the participation of its national petroleum corporation in activities that have traditionally been undertaken by international operators, ensuring that Tanzania develops the institutional and technical capacity needed to manage its energy resources more effectively.

He added that the handover process for Songo Songo was ongoing and was expected to be completed on November 29, 2026.

The transition represents an important development for Tanzania’s natural gas industry, as Songo Songo is among the country’s established sources of domestic natural gas. The field has played a role in supplying gas for electricity generation and industrial consumption, supporting efforts to diversify the national energy mix and reduce dependence on more expensive energy sources.

A successful transition will require continuity in production, maintenance, technical operations, safety standards and gas supply agreements. TPDC will also need to ensure that the expertise accumulated during the previous operating arrangement is retained and transferred effectively to Tanzanian personnel.

The four licences signed during the ceremony cover Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara. They form part of the government’s broader strategy to expand petroleum exploration, attract investment and strengthen the participation of domestic institutions in the sector.

Exploration licences allow companies to investigate the potential presence of commercially recoverable petroleum resources. The economic benefits of these blocks will therefore depend on exploration results, the identification of viable deposits and the investments required to develop any discoveries into producing fields.

For Tanzania, increasing TPDC’s operational role could create opportunities to build local technical expertise, expand employment for Tanzanian professionals and strengthen the capacity of domestic companies to provide engineering, logistics, maintenance and other specialised services.

Greater national participation could also improve the government’s ability to oversee petroleum operations and ensure that resource development aligns with long-term energy security and economic development objectives. However, achieving these outcomes will depend on effective governance, financial discipline, technical competence and transparent management of the sector.

The government has also emphasised the importance of ensuring that young people and women benefit from employment, training, technology transfer and procurement opportunities associated with oil and gas investments.

As Tanzania continues developing its natural gas industry, the expansion of TPDC’s responsibilities is expected to contribute to a stronger domestic petroleum sector. The planned Songo Songo handover will be an important test of the corporation’s ability to manage strategic energy infrastructure while maintaining reliable supplies and safeguarding the long-term value of the country’s natural resources.