Tanzania has been exploring for oil and gas for over sixty (60) years. To date, a total of ninety-five (95) exploration and development wells have been drilled in the coastal basins, deep sea, and inland basins. Currently, there are eleven (11) active Production Sharing Agreements (PSAs) which are operated by nine (9) Companies. Exploration, development, and production activities as well as HGA negotiations for the development of offshore resources through LNG are ongoing.
The first onshore natural gas was discovered at Songo Songo Island in 1974 followed by Mnazi Bay in 1982, Mkuranga in 2008, Ruvu in 2017, and Ruvuma in 2018. These discoveries amounted to 10.41 TCF of Gas Initial in Place (GIIP). Songo Songo and Mnazi Bay gas fields have been developed and are producing gas for power generation, industries, households, and CNG for vehicles since 2004 and 2006, respectively. Significant offshore gas discoveries amounting to 47.13 TCF GIIP were made between 2010 and 2014.
Following the enactment of the Oil and Gas (Upstream) Act No. 6 of 2016, Zanzibar started an exploration of oil and gas in 2016 by establishing two institutions namely; Zanzibar Petroleum Regulatory Authority (ZPRA) and Zanzibar Petroleum Development Company (ZPDC) as upstream sector regulator and commercial entity respectively.
The Government of Zanzibar entered into a Production Sharing Agreement (PSA) with RAK GAS to explore and develop the Oil and Gas resources in Pemba – Zanzibar Block. The preliminary 2D seismic interpretation results has shown the presence of approximately 3.8 TCF of natural gas.
Open Acreage
There are at least eight (8) open offshore Blocks which are expected to be licensed in the upcoming Licensing Round (5th Licensing Round) in Tanzania Mainland. On the other hand, the Government of Zanzibar launched its first Licensing Round on 20th March, 2024 in Zanzibar for 8 offshore Blocks. The bids submission deadline is 16th September, 2024 which will give companies six (6) months period to prepare and submit bids. The awarding process is expected to be completed by November 2024.
TPDC Blocks
TPDC has earmarked five blocks namely Eyasi-Wembere, Mnazi Bay North, West Songo Songo, Lake Tanganyika, and Blocks 4/1B & 4/1C. The Government has shown its intention to award exploration licenses for these Blocks to provide TPDC with exclusive rights to undertake petroleum exploration on its own or through joint venture arrangements. In light of this, TPDC is conducting various studies to understand the hydrocarbon potential of these Blocks. Further, TPDC has undertaken subsurface studies and identified drillable prospects in Mnazi Bay North and West Songo Songo Blocks and acquired 2D seismic data in Eyasi Wembere Block. Currently, TPDC invites strategic partners with both technical and financial capability to execute the committed work plan in exploration and development of the hydrocarbon resources in these Blocks.
Gas Production
Currently, Tanzania is producing about 250 mmscfd of natural gas from Songo Songo and Mnazi Bay Gas fields for Domestic use mainly for Power Generation.
Midstream and Downstream
The Government of Tanzania built a National Natural Gas Pipeline (551 km) from Mtwara to Dar es Salaam and Songo Songo to Somangafungu with a capacity of 784 mmscfd of natural gas and two processing plants at Songo Songo and Madimba with a capacity of processing 350 mmscfd and gas receiving facilities at Somangafungu and Kinyerezi. Tanzania has two processing plants operated by Songas and Maurel & Prom and TPDC with a capacity of 110 mmscfd and 10 mmscfd respectively.
Additionally, there are other two transportation pipelines; one operated by PanAfrican Energy from Songo Songo to Dar es Salaam (232 km) with the capacity to transport 105 mmscfd, and another operated by M&P and TPDC from Mnazi Bay to Mtwara (27km) with a capacity of transporting 70 mmscfd.
The produced natural gas is utilized in Tanzania mainly for power generation whereas for the year 2023 about 7,369.91 GWh which is equivalent to 71% of the total country’s power generation was from natural gas. Currently other uses of natural gas apart from power generation include industries, institutions, households for heating, cooking and power and to power cars in form of Compressed Natural Gas (CNG). The government of Tanzania is planning to distribute gas in other regions such as Morogoro, Dodoma, Tanga, Mwanza and Arusha. Likewise, Tanzania considers expanding the natural gas transportation pipelines and distribution network locally and regionally to countries such as Uganda, Kenya, Zambia and Malawi.
Liquefied Natural Gas (LNG)
The LNG project is being implemented following significant deep-sea gas discoveries made in Tanzania offshore basin, in Blocks 1, 2, and 4. Currently, the Government and International Oil Companies (Shell, Ophir, Pavilion, Equinor, and ExxonMobil) are finalizing negotiating the Host Government Agreement for developing the discovered natural gas for domestic use and export through the LNG project. The LNG project will be implemented in the Lindi Region.
East African Crude Oil Pipeline (EACOP) Project
The Government of Tanzania through TPDC is participating in the implementation of the East Af rican Crude Oil Pipeline project with an estimated length of 1443 km from Kabale, Hoima - Uganda to Chongoleani, Tanga – Tanzania. In Tanzania this pipeline will cover 1147 km passing through eight (8) regions (Kagera, Geita, Shinyanga, Tabora, Singida, Manyara, Dodoma and Tanga) and 24 districts (Misenyi, Bukoba Rural, Muleba, Biharamulo, Chato, Geita, Mbogwe, Bukombe, Kahama, Nzega, Igunga, Iramba, Mkalama, Singida DC, Kondoa, Chemba, Kiteto, Hanang, Simanjiro, Kilindi, Handeni, Korogwe, Muheza and Tanga City).
Tanzania through TPDC participates in this project with a fifteen percent (15%) share with other shareholders including Total Energies (62%), CNOOC (8%), and UNOC (15%). Under this project, we are currently finalizing land acquisition process where 9823 out of 9904 Project Affected Persons (PAPs) have been signed and paid the compensation. The construction for Early Civil Works has already started (Coating Yard, Main Camps & Pipe Yards, and Chongoleani Marine Storage Terminal).
The final detailed engineering designs and procurement of pipelines and long lead items, and project financing process is ongoing where 400km line pipes have already been delivered in Tanzania. The construction of the Coating Thermal Insulation Plant has been completed. The pipeline construction is scheduled for May-June 2024 for 24 months.