Tanzania has uncovered new additional reserves of natural gas off its Lindi coast, the country's Minister for Energy and Minerals Sospeter Mohongo announced over the weekend.

The well, discovered by Norwegian firm Statoil in collaboration with U.S. firm Exxon Mobil, holds an estimated 3 trillion cubic feet of natural gas.

"This is a big discovery. I am happy to tell you that the country is now having big reserves of natural gas," Mr Muhongo was quoted as saying by Tanzania's Daily News.

"In the past three years there has been increased natural gas and oil exploration activities. These activities have been concentrated in the deep sea of the Indian Ocean," he noted.

In the last three years, Tanzania has discovered 20.97 trillion cubic feet of natural gas in deep sea explorations. The east African nation experienced a rapid expansion of oil and gas exploration companies after the federal government awarded some 28 licences to 19 firms from nine countries.

These included Otto Energy of Australia, Wentworth Resources of UK, Staoil of Norway, Jack Resources of Australia, British Gas of UK, Maurel & Prom of France, Petrodel of UK, Beach Petroleum of Australia, Petrobras of Brazil, Ophyr of UK, Swala Oil and Gas of Australia, Afren Resources of UK, Motherland of India, Aminex of UK, Heritage of Ireland, HydroTanz of Mauritius, Shell of Holland, Dominion of UK and ExxonMobil of the U.S.

Oil, however, still has yet to be found.

With most of discoveries being made in natural gas, a policy is now being made listing guidelines on the collection, production and use of this essential raw commodity.

The first draft of the policy, according to Mr Muhongo, would be ready by end July, with presentation to stakeholders for public hearing scheduled in September.

By yearend, the process of drafting a law on natural gas would begin, the minister said.