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Four petroleum exploration licences have been signed but Vice President Deogratius Ndejembi used the occasion to turn the spotlight from rigs to people. He told the government that the country’s growing oil and gas industry must create meaningful employment, transfer technology and build the capacity of Tanzanian professionals and businesses.
Ndejembi was speaking at a ceremony to sign petroleum exploration licences for four blocks, Mnazi Bay North, West Songo Songo, Eyasi Wembere and Lindi Mtwara. He directed the Ministry of Energy to draw up a strategic plan to empower young Tanzanians to take part in the sector and pointed to oil and gas professional Lusiba Majira as an example, urging the ministry to promote knowledge sharing so that more young people acquire the expertise the industry needs. Legal frameworks, fair competition systems and centres of excellence will have limited impact, he stressed, unless Tanzanians are properly prepared to participate.
He also called for stronger implementation of local content requirements so that domestic companies secure opportunities across the value chain. He cautioned against foreign firms registering locally and presenting themselves as Tanzanian businesses to capture those opportunities and said the benefits must reach genuinely Tanzanian owned enterprises. The energy sector, he added, should learn from the mining industry’s experience with local content and adopt the practices that have worked. Oversight was a second theme. Ndejembi directed the Ministry of Energy to strengthen monitoring and evaluation of licensed projects so that commitments are delivered on time and in line with contractual obligations. He said inadequate follow up after licences are issued could undermine implementation, accountability and the contribution of investment to the national economy.
The government expects expanded exploration to generate additional public revenue through royalties, taxes and profit sharing, while creating jobs and supporting electricity generation and industrial development. Ndejembi said the initiatives should also widen access to employment, training and technology for women and young people, alongside greater participation by local companies in supplying goods and services. He linked the sector’s development to Tanzania Development Vision 2050, which sets out the country’s long term aspirations including an economy worth US$1 trillion.
He reiterated the case for a centre of excellence to develop the specialised skills the industry requires, and called on institutions in the sector to uphold accountability, financial discipline and the national interest. The signing, he said, should mark the start of a new phase for the Tanzania Petroleum Development Corporation (TPDC), including a stronger capacity to lead exploration and work with international partners. He also voiced hope that preparations for the proposed liquefied natural gas (LNG) project in Lindi will move towards signing the necessary agreements and starting implementation, describing it as a major strategic investment. The ceremony brought together government officials and industry stakeholders as Tanzania works to expand exploration and strengthen domestic participation in developing its petroleum resources.
