The approach reflects lessons from earlier phases of development, when regulatory uncertainty and limited domestic involvement constrained the economic impact of resource extraction.

Today, the reforms have become a core pillar of Tanzania’s energy policy, embedded in law and backed by political leadership.

Tanzania holds about 57.5 trillion cubic feet (TCF) of proven natural gas reserves, placing it among Africa’s leading gas-bearing nations. Discoveries at Songo Songo, Mnazi Bay and later in the Ruvu Basin established the country’s resource base, but commercialisation progressed slowly for much of the past two decades.

A major shift came with the Petroleum Act of 2015, which restructured the sector by separating policymaking, regulation, and commercial participation.

Under the framework, policy oversight rests with the Ministry of Energy, upstream regulation and licensing with the Petroleum Upstream Regulatory Authority (PURA), and national commercial participation with the Tanzania Petroleum Development Corporation (TPDC).

Since 2021, the government has accelerated implementation of this framework, emphasising public–private partnership while retaining state control over strategic assets.

According to PURA, the sector has seen increased Tanzanian participation. “These achievements reflect robust oversight,” said Eng. Charles Sangweni, Director General of PURA, attributing the gains to stricter enforcement of regulations and closer monitoring of petroleum operations.

The progress is underpinned by the Petroleum Regulations of 2017, which require companies to prioritise Tanzanian labour, suppliers, and service providers, alongside structured training and skills-transfer programmes.

By April 2025, more than 2,400 companies and 430 Tanzanian professionals were registered in official supplier databases, with approximately 300 firms actively delivering services to upstream and midstream projects, according to PURA data.

Energy Minister Deogratius Ndejembi has also called for accelerated exploration while stressing the need to protect national interests. “Before we go for the fifth licensing round, I expect advice on how to create an investor-friendly environment while safeguarding our national interests,” Ndejembi said.

His Deputy, Salome Makamba echoed the call, urging regulators to ensure Tanzanians are involved at every stage of petroleum projects.

“My plea to you is to ensure strict compliance with the regulations under the Petroleum Act,” Makamba said, adding that oil and gas development must translate into employment and enterprise growth for Tanzanians.

That balance will be tested in the fifth oil and gas licensing round, announced in 2025, which offers 26 exploration blocks to private companies. The round represents one of Tanzania’s largest upstream openings in more than a decade.

To support investor participation, PURA has launched a National Petroleum Data Repository, providing access to seismic, well, and geophysical data, including 2D and 3D surveys, aimed at reducing exploration risk.

Exploration activity is already emerging. In the Tanga Block, operator Octant Energy Tanga Limited has identified eight potential drilling locations following reprocessed 3D seismic interpretation.

“This is precisely what the 2015 Petroleum Act mandates, to prioritise local service providers in oil and gas projects,” said Charles Nyangi, PURA’s Head of Local Content and Stakeholder Engagement, commenting on the company’s early assessment of Tanzanian suppliers.

Even as private investment expands, the state has strengthened its strategic position. TPDC holds equity stakes in key projects and increased its interest in the Mnazi Bay gas block from 20% to 40% in 2024.

Production sharing agreements require mandatory state participation, profit-sharing, and domestic gas supply obligations. Regulators also closely monitor cost recovery claims. Between 2021 and 2025, audits of production sharing agreements saved the government more than TZS 340 billion (about USD 135 million), according to PURA.

Gas-led development, not a rush

Natural gas remains a critical resource in Tanzania’s development strategy, supporting industrialisation and electricity expansion. Power consumption per capita, currently about 170 kilowatt-hours, is projected to rise to 3,000 kWh by 2050 as industrial demand grows.

Major investments, including gas projects such as Ntorya, expected to deliver first gas in 2026, and the 2,115-megawatt Julius Nyerere hydropower plant, are anticipated to underpin this growth, alongside renewable energy development.

The government says its strategy is aimed at building a gas economy that supports domestic jobs and businesses while providing investors with clear rules and regulatory stability.

Notes to Editors

·      Tanzania holds approximately 57.5 trillion cubic feet (TCF) of proven natural gas reserves, ranking among Africa’s leading gas-bearing countries.

·      The Petroleum Act of 2015 restructured the sector by separating policy, regulation and commercial participation among the Ministry of Energy, PURA and TPDC.

·      Since 2021, Tanzania has accelerated reforms aimed at increasing private-sector participation while maintaining firm state oversight of strategic assets.

Media Contact:

Information Services Department and Office of The Chief Government Spokesman

E-mail: maelezotv@gmail.com

Phone: +255 754 750 765; +255 754 698 856; +255 759 714; +255 713 381 904

Availability: EAT, UTC +3

ENDS