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Tanzania Oil & Gas: Status and Trends Study Report

Oil & Gas

Tanzania Oil & Gas: Status and Trends Study Report

Background & context

Tanzania has, for decades been involved in extractive industries exploration, development and production. The country has excellent opportunities for oil and/or gas exploration and development in the ‘unexplored’ but highly potential sedimentary basins. Terms for potential investors are set out in the Model Production Sharing Agreement (MPSA) of 2004 and in the Petroleum (Exploration and Production) Act of 1980. The Production sharing Agreements (PSAs) are signed between the investors and the Tanzania Petroleum Development Corporation (TPDC), which is the Government oil company.

The country’s major (1970s) gas find includes Songo Songo (Kilwa district, Lindi region) and at Mnazi Bay (Mtwara region), and Mkuranga (2007), Coast region. Natural gas produced from Songo Songo has been used for electricity generation (since 2004), Mnazi Bay gas field is currently developed for Mtwara and Lindi electricity. The construction of a relatively bigger pipeline to transport gas from Mnazi bay through Songo Songo to Dar es Salaam is underway.

Moreover, Tanzania is well known for mineral deposits; gold, diamonds, rubies, nickels, uranium, coal, tanzanite (Tanzania exclusive mineral) et al. The country has, as well, huge deposites of copper, cobalt, gypsum, iron, lead, limestone, phosphate, tin, titanium and vanadium. Tanzania mining history goes back to the German colonial period, showing insignificant attempts to shelter people from mining environmental hazards.Objective of the study
This study has the goal of unearthing, documenting and availing Tanzania oil and/or gas material information and knowledge to public domain – the strategy to empower public scrutiny of the country’s oil and/or gas operations vis-à-vis relevant policy, legal and regulatory (fiscal) regime. The study is rationalised by commitment of PWYP-Tanzania to facilitate citizens’ right to access to extractive industries material information as a means to steer public awareness on oil and/or gas projects, production (revenue) sharing agreements, and (Strategic) Environmental Impact Assessment (EIAs) contents. Public access to oil and/or gas information is vital for the civil society to monitor and/or evaluate key actors’ compliance to PSAs, EIA and the compulsory international codes and standard requirements for extractive industries transparency and environment. It is, indeed, the best interest of the study to analyse the extent to which poverty eradication policy as stated in the National Strategy for Growth and Reduction of Poverty (NSGRP) is consistent with oil and/or gas fiscal regime.


This entry was posted on Jun 18, 2014 by in Extractive Industry.

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