TANZANIA is set to auction 26 petroleum exploration blocks in the country’s fifth licensing round set for March next year.

Dr James Mataragio, the Energy deputy permanent secretary for oil and gas, revealed this plan in a presentation on Tanzania’s oil and gas sector and investment opportunities at the African Energy Week here yesterday.

The conference in Cape Town, the South African legislative capital, brings together public policy makers on energy, investors and other executives working in the sector, as the week highlights the latest energy innovations and strategies, seen as critical to Africa’s sustainable development.

A total of 23 blocks are located offshore in the Indian Ocean, while three are within Lake Tanganyika, a rift lake to the west of Tanzania, he said, inviting investors to link up with the Tanzania Petroleum Development Corporation (TPDC) to explore promising blocks in Eyasi-Wembere, Mnazi Bay North, and Songo Songo West.

Comprehensive data sets, including gravity, magnetic and seismic data (both 2D and 3D), plus survey logs are available for these blocks with datasets varying by block in terms of type and coverage, he stated.

These datasets are readily accessible for viewing and purchase by interested investors. He said, noting that the auction is part of government efforts to create a favourable investment climate for the licensing round.

Key changes under review include the model production sharing agreement to make contractual and fiscal terms more attractive, along with adjustments to royalty rates, cost recovery limits, profit oil and gas split, state participation, rental fees, bonuses and other taxes.

He said that Tanzania is an appealing destination for oil and gas investment as it has extensive experience in the petroleum industry, with surveys starting over 70 years, while in the past two decades it has set up a viable petroleum exploration and regulatory system.

Ongoing efforts by the government to improve the broader investment environment and implementing large-scale projects in electricity generation, power diversification, are set to drive energy and infrastructure development for a while, he added.