The Tanzania Petroleum Development Corporation (TPDC) has taken a significant step in strengthening its direct participation in oil and natural gas exploration, after the Government signed four exploration licenses in the Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara blocks.
The signing ceremony of the licenses was held at the Julius Nyerere International Conference Centre (JNICC), in Dar es Salaam, witnessed by the Vice President of the United Republic of Tanzania, Hon. Deogratius John Ndejembi.
Speaking at the event, Hon. Ndejembi said TPDC's move to be granted these licenses aims to strengthen the Corporation's ability to fully participate in the oil and natural gas sector value chain, instead of relying more on the role of a partner in exploration and production projects.
He stressed the importance of TPDC strengthening the capacity of its professionals, project management and efficient use of capital, while exploration activities are carried out in compliance with laws, licensing conditions, safety and environmental protection.
Through these licenses, TPDC will be able to conduct exploration activities using its technical and institutional capabilities, either independently or in partnership with investors with financial and technological capabilities.
The Vice President has directed TPDC to build productive partnerships with these investors to increase efficiency in the exploration and development of oil and natural gas resources, taking into account the national interest.
In another step, Hon. Ndejembi has instructed the Ministry of Energy, through the Petroleum Upstream Regulatory Authority (PURA), to prepare a strategic plan that will enable Tanzanian youth and companies to benefit from employment, tender, training, technology and investment opportunities in the sector.
He stressed that Tanzanians, especially youth and women, should be prepared early to have the skills and ability to fully participate in large oil and natural gas projects.
In addition, the Vice President has called on the Ministry of Energy to strengthen the systems for evaluating, monitoring and managing these licenses, ensuring accountability, discipline in the use of funds and increasing economic benefits for the Nation.
Exploration in these blocks is expected to provide additional geological and geophysical information that will help determine the presence and size of potential resources, thereby laying the foundation for investment in the next stages of development.
If resources are discovered and proven to have the potential to be developed commercially, they are expected to contribute to increasing energy availability, government revenue, employment and economic opportunities for Tanzanians.
The move marks a significant shift in TPDC's role from being more of a shareholder in exploration activities to becoming the owner of its own exploration licenses, in line with the Government's commitment to enhance energy security, increase national participation and stimulate sustainable economic development.
Source: TPDC
