Zanzibar Launches Two New Onshore Blocks for Oil And Gas Exploration

The Government of Zanzibar launched two new onshore blocks for oil and natural gas exploration in the Unguja and the Pemba Islands at a press conference held on 27^th September 2024.

Speaking to the press, the Zanzibar Trade and Industrial Development Minister, Omar Said Shaaban, emphasized that the government plans to develop the sector by collaborating with international oil and gas companies (IOCs) and encouraged interested investors to submit applications.

The Minister also highlighted that the first licensing round offering eight offshore blocks totaling 31,883 km² for oil and gas exploration in Zanzibar that was launched in March 2024 and meant to last till September 2024 but was extended to 16^th November 2024.

During the launch of the first licensing round, the President of Zanzibar and Chairman of the Revolutionary Council, Hon. Dr. Hussein Ali Mwinyi noted that the launch will position archipelago as a hub for oil and natural gas investments.

“Zanzibar offers an unrivaled opportunity for investments. The geological promise is clear to see and our strategic location in the region makes it an ideal place for companies to invest. The minister of blue economy and fisheries, an official regulator, has ensured many incentives mechanisms are put in place including renewed fiscal terms to enhance a friendly investment environment in the oil and gas sector and flexibility of licensing options,” added President Mwinyi.

Zanzibar Oil and Gas

Between July 2022 and March 2023, the volume of gas imported for household use in Zanzibar was 5.98 million kilograms with consumption in Unguja reaching 6 million kilograms.

Meanwhile, in Pemba, 244,035 kilograms of gas were imported, while consumption amounted to 250,859 kilograms in the same period.

From November 2017 to February 2019, a 2D seismic survey was conducted in the Pemba-Zanzibar block by RAKGAS that covered offshore (2,815.6 km), onshore (717 km), and transition zone areas (244 km) acquiring a total of 3,776.6 line kilometers.

The results of the surveys indicated the potential presence of rock formations with estimated oil and natural gas reserves of approximately 3.8 trillion cubic feet in the Pemba-Zanzibar Block.

According to the Zanzibar Development Plan (ZADEP 2021-2026), the archipelago is committed to the sustainable exploitation of Oil and Gas (O&G) in both onshore and offshore Zanzibar.

The vision focuses on sustainable O&G exploration through effective policy and regulatory frameworks that aim to build infrastructure, and human capital, and manage revenues while promoting local development through technology transfer, training, and local content requirements.

Interventions for this plan involve developing policies, and local content frameworks, supervising exploration, enhancing capacity for youth, women, and people with disabilities, and establishing a National Data Repository (NDR).

Additionally, the plan focuses on import sustainability, improving petrol stations, refining tariffs, expanding the supply network, boosting revenue collection, and addressing health, safety, and environmental concerns.