Nigerian indigenous company secures deal to develop Tanzania’s Mnazi Bay North oil and gas block

FIRST Exploration & Petroleum Development Company (FIRST E&P), a Nigerian indigenous oil exploration and production firm, has successfully signed a Memorandum of Understanding (MoU) with the Tanzania Petroleum Development Corporation (TPDC) to assess and potentially develop the Mnazi Bay North gas-rich block in southern Tanzania. The agreement signals the first major upstream partnership of its kind between the two African nations.

The MoU, formalized in Dodoma at TPDC’s headquarters, positions FIRST E&P to fully fund the technical assessment phase. This strategic move reflects FIRST E&P’s confidence both in the block’s prospects and Tanzania’s broader energy expansion ambitions. The gas-rich concession fits within Tanzania’s ongoing efforts to unlock gas reserves for domestic energy access and regional export markets.

For FIRST E&P, the agreement marks a defining moment in the firm’s continental expansion. Having achieved meaningful upstream success in Nigeria—operating several licenses in joint ventures with NNPC Limited and producing around 57,000 barrels of oil per day—the company is now charting a pan-African strategy driven by technical capability and financial discipline.

Managing Director Ademola Adeyemi-Bero described the partnership as more than a typical commercial contract. He said it represents a shared vision of long-term collaboration rooted in trust, development, and mutual prosperity. “We bring not just capital, but experience built on disciplined execution and community engagement,” he noted.

Tanzanian officials welcomed the agreement as a landmark moment in national upstream policy. Commissioner Godluck Shirima, of Tanzania’s Ministry of Energy, said the MoU was the first major exercise under the Petroleum Act of 2015 empowering TPDC to enter partnerships with regional firms. TPDC Managing Director Mussa Makame emphasized the importance of African-owned firms taking leading roles in energy development, describing FIRST E&P’s engagement as a breakthrough for local value creation and technical exchange.

Tanzania’s upstream sector is currently evolving. The country is preparing to launch its fifth oil and gas licensing round in mid‑2025—the first since 2014—and offers 26 exploration blocks including both onshore and offshore acreage. The Mnazi Bay North Block remains a priority in the government’s roadmap toward increased gas-based energy generation and industrial applications. FIRST E&P’s early involvement may offer advantages in potential participation in that upcoming licensing window.

The agreement positions FIRST E&P not merely as a passive investor but as a technical partner with South-South collaboration credentials. Backed by Nigeria’s robust regulatory framework and growing upstream investment confidence, the company could emerge as a blueprint for other African firms seeking to replicate homegrown capability across borders.

Industry analysts view this development positively, noting the strategic value of indigenous leadership in African oil and gas. With international majors often retreating from onshore investments due to security and social risks, local companies like FIRST E&P offer proximity to communities, alignment with national policy goals, and agility in execution.

Yet, several challenges lie ahead. The MoU marks only the initial phase: technical assessment must validate reserves, commercial viability, and infrastructure requirements. If results are positive, the deal may lead to formal licensing under production-sharing contracts or development agreements. FIRST E&P will need to interface with Tanzania’s Petroleum Upstream Regulatory Authority (PURA) and TPDC to clarify fiscal terms, environmental standards, and local content commitments.

Execution will depend on navigating Tanzania’s evolving legal and regulatory landscape, which underwent reforms—including separation of TPDC and PURA—to attract new investment and improve transparency. Project delivery will also require sustained commitment to community engagement and adherence to environmental and ESG standards.

For Nigeria, FIRST E&P’s entry into Tanzanian upstream marks a broader shift. The country’s private sector, backed by frameworks like the Petroleum Industry Act (PIA) and growing capital market recognition, has emerged as Africa’s top destination for upstream investments in 2024. Nigeria accounted for three‑quarters of confirmed Final Investment Decisions on the continent, totaling over $13.5 billion. FIRST E&P’s move represents a natural extension of that ambition: leveraging domestic technical competence beyond national borders.

As the deal progresses to technical evaluation and potential pilot drilling, stakeholders will be watching for indicators such as funding timelines, partnership models, and value chain localization. If successful, FIRST E&P’s foray could catalyze cross‑border African energy cooperation, enable regional gas prosperity, and demonstrate that an indigenous African oil company can lead major upstream execution beyond its home market.

In summary, the agreement between FIRST E&P and TPDC to explore Tanzania’s Mnazi Bay North Block represents a bold milestone. It underscores the rise of African-led energy ventures, opens new frontiers for gas monetization, and may foreshadow broader collaboration across the continent’s emerging energy corridors.