Tanzania Confirms Continued Production at Songo Songo

Fresh comments made in Tanzania’s Parliament by Deputy Minister for Energy Salome Makamba have provided another important update regarding the future of the Songo Songo gas development, one of Tanzania’s longest-producing natural gas assets.

Speaking during the 27th sitting of Tanzania’s 13th Parliament in Dodoma, Makamba confirmed that twelve wells have now been drilled within the Songo Songo block. According to the statement, the Tanzanian government, through Tanzania Petroleum Development Corporation (TPDC), drilled nine of those wells, while PanAfrican Energy Tanzania (PAET) drilled three.

The Minister also stated that the field is currently producing approximately 84.7 million cubic feet of gas per day based on existing domestic demand levels.

Perhaps most importantly, however, the government confirmed that negotiations are continuing with PanAfrican Energy Tanzania regarding the future of the current development licence, which is due to expire in October 2026.

That update may appear routine on the surface, but for investors following Tanzania’s wider gas sector — including Aminex shareholders — the implications are potentially significant.

Who Operates Songo Songo?

Songo Songo has historically operated under a somewhat unusual structure compared to newer Tanzanian gas developments.

The field itself is owned by the Tanzanian state through TPDC, while operations have been conducted through PanAfrican Energy Tanzania (PAET), a subsidiary associated with Orca Energy.

Over many years, Songo Songo became one of the core foundations of Tanzania’s domestic gas supply system, particularly for power generation and industrial use around Dar es Salaam.

However, the contractual structure surrounding Songo Songo has also long been viewed as relatively unique within Tanzania’s energy sector, particularly regarding cost allocation arrangements and the distinction between “Protected Gas” and commercially sold “Additional Gas.”

Those arrangements contributed to recurring political and regulatory tensions over time, especially as Tanzania increasingly focused on maximising long-term national benefit from domestic gas resources.

The fact that the government is now openly negotiating future licence terms ahead of expiry strongly suggests Tanzania remains focused on maintaining production continuity while also potentially reshaping how mature gas assets are managed going forward.

What Does This Mean for Aminex?

For Aminex investors, the importance of the latest Songo Songo update lies less in the field itself and more in what it may reveal about Tanzania’s broader energy strategy.

Firstly, the government’s willingness to continue negotiating rather than simply allowing production disruption reinforces an important point:
Tanzania still needs gas.

Domestic gas demand continues expanding across:

• power generation

• industrial development

• household distribution

• and wider infrastructure growth.

That broader demand backdrop remains fundamentally supportive for projects such as Ntorya.

Secondly, the Songo Songo negotiations appear to reinforce the Tanzanian government’s increasingly pragmatic approach toward long-term gas development. While historical tensions have existed around certain legacy contracts, the current administration under President Samia Suluhu Hassan has simultaneously demonstrated strong support for:

• new infrastructure development

• upstream investment

• pipeline expansion

• and accelerated domestic gas utilisation.

That distinction matters because Aminex and ARA Petroleum’s development pathway appears considerably more aligned with Tanzania’s current strategic priorities than some earlier legacy arrangements elsewhere in the sector.

A Changing of the Guard in Tanzania’s Gas Sector?

The wider context may also be important.

Songo Songo represents one of Tanzania’s older gas developments, while projects such as Ntorya increasingly represent the next phase of the country’s gas expansion story.

Recent years have already seen:

• the signing of the Ntorya Gas Sales Agreement

• formal award of the 25-year Development Licence

• pipeline construction activity

• and preparation for expanded drilling campaigns.

At the same time, Tanzania continues pushing broader energy integration through:

• domestic gas infrastructure

• LNG discussions

• regional pipeline agreements

• and industrialisation initiatives.

Viewed together, the sector increasingly appears to be transitioning from its earlier foundational phase into a much broader period of national gas expansion.

That does not diminish the importance of Songo Songo. The field remains strategically important to Tanzania’s domestic energy supply.

However, it does suggest the government is simultaneously trying to:

• maintain mature production assets

• while accelerating the development of newer gas infrastructure elsewhere.