Tanzania Petroleum notes with great interest the Memorandum of Understanding (MoU) signed on July 18, 2025, between the Tanzania Petroleum Development Corporation (TPDC) and Nigeria’s FIRST Exploration and Petroleum Development Company Limited (FIRST E&P) to explore and potentially develop oil and gas at the Mnazi Bay North Block, located in Mtwara, the southern region of the country.
Key Facts From This Deal
Groundbreaking collaboration model: This is the first MoU of its kind, enabling TPDC to bring in a capable partner for upstream exploration and development through a new modality.
The evaluation of Mnazi Bay North is scheduled to take nine months, with a possibility for renewal.The MoU marks the beginning of the collaboration, which will be followed by a definitive agreement and actual exploration work.
The Value Proposition of the Mnazi Bay North Project
Proximity to existing infrastructure: Being located close to the established infrastructure at the Madimba Gas Processing Plant means the project could be fast-tracked to early gas production—especially if the evaluation phase confirms commercial volumes.
High chance of project success: As mentioned earlier, the field is located in shallow water between the Mnazi Bay gas discovery and the Chaza gas discovery in Block 1, which makes the project highly likely to succeed. Extensive exploration in this block has already been carried out, including 2D and 3D seismic surveys. This increases the project’s chance of success.
The Importance of This Strategic Partnership
Enhancing project’s economic advantage: The Mnazi Bay North block is located in shallow water and will involve the drilling of two exploration, appraisal, and development wells. The development of this type of project comes with significantly higher costs and risks. The TPDC’s strategic partnership with FIRST E&P will further enhance the project’s economic advantage.
As an indigenous African company, FIRST E&P brings a deep, practical understanding of the social and environmental dynamics unique to our communities—an advantage that significantly enhances stakeholder engagement and accelerates project success.
A model for intra-African collaboration:
FIRST E&P is a homegrown Nigerian success story—an indigenous upstream company that has made notable progress in Nigeria, where it produces around 57,000 barrels of oil per day in partnership with the Nigerian National Petroleum Corporation(NNPC). Their move into Tanzania is symbolic:
- It validates Tanzania’s upstream potential from an African player with proven success in a market with 60 years experience like Nigeria.
- It shifts the narrative from Western-dominated investment to intra-African strategic partnerships—a model aligned with the AU’s Agenda 2063.
Why This Matters: South–South cooperation in hydrocarbons is still rare. In this regard, the Mnazi Bay North project appears to be a model of intra-African collaboration between national oil companies (NOCs) and indigenous African oil and gas operators.
Related Trends and Developments.
Energy Transition:At a time when global capital for hydrocarbons is shrinking due to the energy transition, African NOCs and independents must increasingly rely on each other. This deal shows that African operators can fill that gap—bringing capital, experience, and shared regional ambitions to the table.
It is worth addressing the concerns of those who argue that, due to environmental issues, Africa should not develop its oil and gas resources. At Tanzania Petroleum, we recognize the need for the world to transition to greener energy sources. However, this achievement symbolizes that Africa is serious about developing its petroleum resources responsibly, while also participating in the global transition agenda.
Considering the wider context, this deal also comes as Tanzania prepares to auction 26 new oil and gas blocks at the end of this year. Potential investors will no doubt be encouraged, and this could set a precedent for other African oil and gas operators to follow FIRST E&P’s lead.
The message is clear: Tanzania is open for business and willing to explore new partnership models to unlock its energy potential. The Mnazi Bay North project will play a crucial role in shaping our energy mix and ensuring a secure and reliable energy supply in Tanzania.
Tanzania Petroleum will continue to provide coverage of this important story and other developments that matter in the East African oil and gas sector
