The Tanzania Petroleum Development Corporation (TPDC) now holds four exploration licenses. The Government signed them for the Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara blocks, according to TPDC.
The signing took place at the Julius Nyerere International Conference Centre in Dar es Salaam. Vice President Deogratius John Ndejembi witnessed it.
From partner to license holder
Ndejembi said the licenses are meant to let TPDC take part across the oil and natural gas value chain rather than lean mainly on the role of a partner in exploration and production projects. TPDC can now explore using its own technical and institutional capabilities, either alone or with investors that bring finance and technology.
The Vice President told the corporation to build productive partnerships with those investors, with the national interest in mind. He also pressed TPDC to strengthen its professional staff, project management and use of capital, and to run exploration within the law, license conditions, safety rules and environmental protection.
Directions to the energy ministry
Ndejembi instructed the Ministry of Energy, working through the Petroleum Upstream Regulatory Authority (PURA), to prepare a strategic plan. It is meant to open employment, tender, training, technology and investment opportunities in the upstream sector to Tanzanian youth and companies. He said youth and women in particular should be prepared early for large oil and natural gas projects.
He also called on the ministry to tighten how it evaluates, monitors and manages the licenses, with accountability and discipline in the use of funds.
What exploration is expected to deliver
Work in the four blocks is expected to produce more geological and geophysical information to help establish whether resources are present and how large they are. If commercially viable resources are proven, they are expected to add to energy availability, government revenue, employment and economic opportunities. TPDC describes the move as a shift from being mainly a shareholder in exploration to owning its own licenses.
