In October this year Tanzania intends to provide 7 deep offshore blocks as well as 1 onshore block in for oil and gas exploration, Tanzania is currently being seen as a region that has transformed into a hot spot for gas findings. The round was a recovery of an auction that was slated for September last year however it was extended as Tanzania formulated a new oil and gas policy. The round will be introduced on October 25 and will function until May 15, 2014.

Gas strikes off east Africa’s seaboard have led to predictions the region could transform into the world’s third-largest exporter of natural gas. Tanzania is east Africa’s second-biggest economy and it is projected to contain above 330-trillion cubic feet (tcf) of recoverable natural gas reserves.

The 7 deep offshore blocks – Block 4/2A, Block 4/3A, Block 4/3B, Block 4/4A, Block 4/5B, Block 4/5A and Block 4/5B – have areas of roughly 3 000 square km each and are situated in deep waters of up to 3 000 metres. 2 offshore blocks – Block 4/1B and Block 4/1C – would be reserved for the government, which will later seek tactical partners. The only onshore block is North Lake Tanganyika, situated on the Tanzanian side of the lake.

The 2013 draft natural gas policy plans to ensure that the domestic market is given first priority over the export market in gas supply. Government of Tanzania expresses that the country’s natural resources belong to all its citizens and merely 14% of the gas will be transported to Dar es Salaam and external regions. For power generation and for use by industries, the remaining resources would stay in Mtwara.

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