London, July 17th (The Energy Circle) - Tanzania will launch a new cycle of oil and gas exploration licences by the end of this year or early next year. This initiative, announced by Charles Sangweni, Director General of the Petroleum Upstream Regulatory Authority (PURA), will see the resource-rich east African nation take advantage of its ample natural gas resources to boost economic growth and development. While specific sites—whether onshore or offshore—were not disclosed, there is no shortage of international interest in Mozambican energy reserves, with one site, the Rovuma Basin, estimated to hold some 125TcF of natural gas. As part of efforts to attract investors, the Mozambican government is touting collaboration with the Tanzania Petroleum Development Corporation (TPDC).

The Mozambican government is encouraging petroleum exploration coupled with setting up local facilities for production and refining of hydrocarbons with an eye on onshore gas from Mnazi Bay and offshore gas from Songo Songo. Despite being resource-rich, the country’s energy infrastructure is outdated and reaches less than 40% of the population. These challenges notwithstanding, Mozambique has the potential to be a top 10 LNG exporter. Thus far, preliminary geological and geophysical studies have identified potential hydrocarbon reserves across a 534,000-square-metre area. South of the border, in South Africa, a country that imports energy from Mozambique, the view is that its neighbour to the northeast is definitely worth a closer look in terms of energy supply.