Tanzania: TPDC Secures Four Exploration Licences Following Mnazi Bay Gas Discovery

Tanzania has awarded four petroleum exploration licences to the Tanzania Petroleum Development Corporation (TPDC), a day after announcing an estimated 223 billion cubic feet of natural gas discovery at Mnazi Bay in the Mtwara Region.

Vice President Deogratius Ndejembi witnessed the signing in Dar es Salaam on Wednesday, October 28, 2026, as the government moves to expand exploration, strengthen energy security and attract investment into the petroleum sector.

The licences cover Eyasi-Wembere, Lindi–Mtwara, West Songo Songo and Mnazi Bay North, giving TPDC a greater role in exploration while supporting the development of local technical expertise.

Energy Minister Dr Juma Zuberi Homera said the allocation reflected the government’s commitment to strengthening national participation in the petroleum industry and ensuring that Tanzania derives greater economic benefits from its natural resources.

He acknowledged President Samia Suluhu Hassan’s support for petroleum exploration and described the licensing programme as an important step in the country’s long-term energy development.

The signing followed the government’s October 27 announcement of a gas discovery at the Kasa-1X ST2 exploration well in Mnazi Bay, drilled by TPDC and French energy company Maurel & Prom.

The government estimated the discovery at 223 billion cubic feet, while Maurel & Prom reported a preliminary estimate of approximately 200 billion cubic feet, subject to further technical evaluation.

Homera said the well was expected to produce approximately 30 million cubic feet of gas per day for at least 10 years, depending on development and operational requirements.

Two additional development wells, MB-5 and MS-2, were reported to have increased production by more than 65 million cubic feet per day.

Maurel & Prom reported that Mnazi Bay’s production reached approximately 130 million cubic feet per day in October, boosting supplies for electricity generation and other domestic consumers.

According to Homera, more than 80% of gas produced at Mnazi Bay is used to generate electricity at Tanzania Electric Supply Company facilities in Mtwara and Dar es Salaam.

Tanzania’s discovered natural gas resources are estimated at 57.54 trillion cubic feet, comprising 47.13 trillion cubic feet offshore and 10.41 trillion cubic feet onshore.

The government is also advancing construction of an approximately 35-kilometre pipeline connecting the Ntorya gas field to the Madimba processing facility. Construction was reported to be 74% complete.

The pipeline is expected to deliver additional gas for electricity generation, industrial operations and other domestic uses.

Beyond power generation, government figures indicate that Tanzania had established 22 compressed natural gas filling stations and 20 vehicle conversion workshops by September 2026.

Six industries, 21 institutions and approximately 5,000 households were also reported to be connected to natural gas distribution infrastructure.

TPDC is holding discussions with four prospective investors interested in developing small-scale liquefied natural gas projects, three of which are proposed for the Mtwara Region.

Homera said approximately 200 Tanzanians had secured employment with companies involved in the Mnazi Bay drilling programme. Locally owned businesses had also received 35 contracts worth more than TZS20 billion.

TPDC increased its participating interest in the Mnazi Bay venture from 20% to 40% in 2024, with Maurel & Prom holding the remaining 60%. The increased stake is expected to give TPDC a stronger role in project decisions and a greater share of potential earnings.

The Petroleum Upstream Regulatory Authority welcomed the licensing programme and reaffirmed its commitment to ensuring compliance with petroleum legislation, environmental requirements and licence conditions.

It also encouraged greater participation by Tanzanian professionals and companies in exploration activities.

The developments form part of Tanzania’s efforts to expand energy infrastructure and develop its petroleum resources in line with Development Vision 2050. Future production will depend on exploration results, commercial viability, financing and infrastructure availability.