Tanzania Empowers State Oil Firm TPDC with Independent Exploration Rights and Key Gas Operations

Tanzania is taking direct ownership of its energy future by granting the Tanzania Petroleum Development Corporation (TPDC) independent licences to explore four major oil and gas blocks. Signed in Dar es Salaam, the agreement gives the state-owned enterprise exploration rights solely under its own name for the first time, breaking away from its long-standing reliance on joint partnerships with foreign operators.

The expansion goes beyond new exploration. The government is also preparing TPDC to step in and manage the Songo Songo gas field, a primary energy source that has powered Tanzanian industries and electricity grids since 2006. The asset was previously run by PanAfrican Energy Tanzania (PAET), a subsidiary of Orca Energy, whose licence recently ended.The operational handoff follows a series of disputes, including a $1.2 billion international claim launched by PAET in 2024 after an extension was rejected, a regulatory block on a proposed company sale, and PAET’s formal decision to walk away from operations in late November. Officials say transition plans are underway to keep gas flowing without interruption.

This dual focus on fresh exploration and direct field management is part of a broader push to capitalize on the country’s estimated 57 trillion cubic feet of natural gas. Holding the primary rights to the four blocks located across Mnazi Bay North, West Songo Songo, Eyasi-Wembere, and Lindi-Mtwara allows TPDC to seek out foreign investors and technology on its own terms rather than taking a backseat role. While the policy gives the government greater leverage over its national resources, its ultimate success will rest on how effectively TPDC can manage technical operations,handle complex infrastructure, and secure the heavy investment needed for deep-water and onshore development.