Tanzania is set to launch a licensing round for 26 oil and gas exploration blocks in May 2024, marking the first such event in over a decade. The announcement is planned during the Africa Energy Summit in London from May 13th to 15th.
The licensing round includes three blocks in Lake Tanganyika and the remainder in the Indian Ocean. This initiative aims to further explore Tanzania's significant natural gas reserves, estimated at 57 trillion cubic feet.
The Petroleum Upstream Regulatory Authority is awaiting government approval of the Model Production Sharing Agreement, which will define the fiscal terms for the exploration. Tanzania already utilizes its natural gas for electricity generation and is in negotiations for a $42 billion liquefied natural gas facility with Shell, Equinor, and Exxon Mobil.
Key moments to watch will be the official announcement at the Africa Energy Summit and the subsequent details released regarding the Model Production Sharing Agreement. This licensing round is crucial for Tanzania's energy sector and could attract significant international investment.