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Oil, gas industry must benefit Tanzanians, says VP

4 mins read

Oil, gas industry must benefit Tanzanians, says VP

Habari za Dharura

October 28, 2026 Admin0

Dar es Salaam. Vice-President Deogratius Ndejembi has called for Tanzania’s oil and gas industry to deliver greater benefits to Tanzanians, particularly young people and local businesses, as the country seeks to build a $1 trillion economy by 2050.

He said the government and institutions overseeing the sector needed to strengthen local participation by preparing Tanzanians to secure employment, develop businesses and provide services as petroleum projects advance.

Mr Ndejembi made the remarks during the signing of four exploration licences for the Tanzania Petroleum Development Corporation (TPDC), covering Mnazi Bay North, West Songo Songo, Lindi-Mtwara and Eyasi-Wembere.

He said preparations for local participation should begin before major projects reach the implementation stage, allowing Tanzanians to acquire the skills and business capacity needed to compete for opportunities in the industry.

“We must not wait until projects have started or reached an advanced stage before we begin looking for local content. We need to prepare our young people now so that they can participate when these projects are implemented,” he said.

Mr Ndejembi cited the example of a Tanzanian entrepreneur who returned from Saudi Arabia, established a company and secured work in the Mnazi Bay gas project.

The company employs more than 50 Tanzanians, including people from the surrounding community.

He said the experience demonstrated how local businesses could participate in petroleum projects and create employment, adding to the case for preparing more Tanzanians to take advantage of opportunities in the sector.

The four licences are intended to strengthen TPDC’s role in exploration and enable the national oil company to participate more directly in the petroleum value chain.

TPDC managing director Mussa Makame said the corporation would seek to ensure that exploration contributed to the country’s broader development objectives.

“The success of oil and gas exploration should not be measured by discoveries alone, but by the ability to turn these resources into real economic opportunities that generate revenue, jobs, reliable energy and development for the people,” he said.

Mr Makame said TPDC had undertaken seismic data interpretation in some of the licensed areas to identify locations with potential for further exploration.

The next stages would involve additional assessments, data collection and preparations for drilling, depending on the requirements of each block.

He said the corporation would also prioritise local participation and engagement with communities in areas where exploration activities would take place.

The minister for Energy Dr Juma Homera said the licences marked another stage in the development of Tanzania’s petroleum resources.

He cited the completion of drilling activities in Mnazi Bay, where an exploration well had discovered an estimated 223 billion cubic feet of natural gas.

“The discovery is very important in the government’s efforts to increase the availability of natural gas for the development of our country,” he said.

Dr Homera said Tanzania’s estimated natural gas resources stood at 57.54 trillion cubic feet.

The government was expanding the use of gas in electricity generation, industries, households and transport, he added.

By September 2026, Tanzania had 22 compressed natural gas (CNG) stations, 20 vehicle-conversion garages and more than 20,000 vehicles using natural gas, according to the minister.

He said 57 industries, 31 institutions and about 3,000 households were also connected to the gas pipeline.

Permanent Secretary in the Ministry of Energy responsible for oil and gas, Dr James Mataragio, said exploration required substantial capital, modern technology and specialised expertise, making careful planning and cooperation with investors essential.

“Oil and gas exploration is an activity that requires substantial capital, modern technology and specialised expertise,” he said.

Dr Mataragio said exploration budgets could range between $15 million and $30 million, with about 70 per cent spent directly on drilling.

He said the government would continue working through the ministry and its institutions to ensure that exploration activities were conducted transparently, complied with the law and served the country’s interests.

Petroleum Upstream Regulatory Authority (PURA) director-general Dr Charles Sangweni said the implementation of the licences should support Tanzania’s long-term development objectives.

“We believe that the implementation of these licences will align with the National Development Vision 2050,” he said.

Dr Sangweni said PURA would work with the ministry, TPDC and other stakeholders to ensure compliance with legislation, regulations and licence conditions.

Acting TPDC board chairman Peter Allan Kallaghe said the board would oversee the corporation’s activities to ensure that the opportunities were managed responsibly.

“The board will continue to oversee the corporation’s operations by observing good governance, transparency and financial discipline,” he said.

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