The UDSM, supported by group of geoscientists from Universities of the Netherlands has been able to establish the first Master program in Petroleum Geology of the country. With the crucial financial support of BG-Group 13 students has enrolled for the program. Courses have been given in the first year covering a wide range of relevant disciplines. Students have demonstrated a remarkable dedication to the course and have all performed at high level. The second year of the program will be dedicated to research projects developed in close connection with Industry. Challenges for the future include the development of shared data bases and e-learning facilities, the strengthening of the training the trainers component of the project and the establishment of robust relations with Industry