Tanzania has moved to strengthen its control over oil and natural gas exploration after granting the Tanzania Petroleum Development Corporation (TPDC) four exploration licences, allowing the state-owned company to directly participate in identifying and developing the country's petroleum resources.
The move is expected to expand TPDC's role in the upstream petroleum industry, strengthen domestic technical capacity and increase the country's participation in an industry that requires significant investment, technology and specialised expertise.
Energy Minister Juma Zuberi Homera said the licences were issued under the Petroleum Act of 2015, which provides for TPDC to own blocks for oil and natural gas exploration.
He was speaking on October 28, 2026, during the signing ceremony for the four licences at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam.
Dr Homera said the development would enable TPDC to participate directly in exploration and development activities, strengthening the government's ability to oversee and benefit from the country's petroleum resources.
“The government will continue strengthening the management of the oil and natural gas sector by ensuring that all activities are conducted in accordance with the law, safety standards, environmental protection requirements and the wider national interest,” he said.
He emphasised the need for coordination between the Ministry of Energy, TPDC, the Petroleum Upstream Regulatory Authority (PURA) and other industry stakeholders to ensure that exploration and development activities are effectively implemented.
The licences come as Tanzania seeks to increase its natural gas reserves while expanding the use of the resource in electricity generation, industries, households and transport.
Dr Homera said drilling of three wells in the Mnazi Bay block in Mtwara Region had been completed, comprising two production wells and one exploration well.
Increasing domestic gas production is important to Tanzania's efforts to strengthen energy security and provide industries with a reliable source of energy.
The government is also seeking to expand the domestic market for natural gas through infrastructure development and the promotion of compressed natural gas (CNG) as an alternative fuel for vehicles.
Statistics up to September 2026 show that Tanzania had 22 operational CNG filling stations and 20 workshops for installing gas systems in vehicles. More than 20,000 vehicles were using CNG.
The natural gas network had also connected 57 industries, 31 institutions and approximately 3,000 households.
These figures point to growing domestic demand for natural gas, although expanding infrastructure and increasing access remain important to unlocking its wider economic potential.
Dr Homera said the government wanted the development of the petroleum industry to deliver direct benefits to Tanzanians through employment, training and the development of local expertise.
He also stressed the importance of increasing the participation of Tanzanian companies in supplying goods and services to the oil and gas industry.
The challenge will be to ensure that increased domestic participation goes beyond ownership of exploration blocks to include technology transfer, skills development and meaningful opportunities for local businesses.
For TPDC, the four licences provide an opportunity to build its technical and operational capacity in an industry where exploration requires substantial financial resources and specialised knowledge.
The government has maintained that the development of the oil and gas sector should be guided by national interests, environmental protection and compliance with existing laws.