Saturday, January 28, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home investing

Tanzania in a new initiative to attract oil, gas investors

7 months ago
in investing
Tanzania in a new initiative to attract oil, gas investors
Share on FacebookShare on Twitter


kelvin matandikopic

By Kelvin Matandiko

Dar es Salaam. The government of Tanzania is readying to amend the Model Production Sharing Agreements (MPSAs) of 2013 to loosen conditions in the oil and gas sector after Tanzania failed to sell any exploration block during the past nine years.

The changes will take into consideration the global trends in trade, fuel prices over the past decade and estimates for the next decade, the institutional changes in Tanzania and current legal system, including the Petroleum Act of 2015, which is said to be unfavourable to investors.

MPSAs give a clear picture of what the terms and conditions offered by a particular government, especially how the oil and gas investor will share revenue with the government.

They play a key role in either convincing the investors to enter into Production Sharing Agreements (PSAs) for exploring and developing the gas blocks, or disappointing the prospective investors.

During the nine years of the current MPSAs, Tanzania has not sold any block even as the government put eight blocks in the deep sea and Lake Tanganyika up for auction.

The director general of the Petroleum Upstream Regulatory Authority (PURA), Mr Charles Sangweni, said the government was conducting reviews under a consultant who was expected to start work this June, and complete the work in February 2023, before announcing the intention to auction more than 20 blocks.

Advertisement

“We are reviewing the MPSAs of 2013 because they had stringent conditions for investors,” said Mr Sangweni.

Latest Oil News

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023

“The consultant has been found, although contract is not yet signed. We hope the consultant will start working towards the end of this June and he will do that within six months,” he said.

According to the Tanzania Petroleum Development Corporation (TPDC), oil and gas exploration activities in the country began in 1952 when the British Petroleum (BP) and the Royal Dutch Shell launched an oil exploration in all the coastal areas.

From that period to date, a total of 96 wells have been drilled, while 44 of them were discovered to have gas and 52 wells had no gas.

According to PURA, MPSAs are amended in accordance with changes in the sector. In 1989 the government saw the first use of MPSA, followed by others in 1995, 2004, 2008 and the 2013 MPSA which will be amended in 2023.

Tanzania has discovered natural gas reserve estimated at 57.54 trillion cubic feet, with the government feeling pride to save more than Sh16 trillion in foreign exchange through the use of natural gas to produce electricity and in factories between 2004 and 2020.

Amendment areas

According to PURA, the amendments will focus on areas such as the responsibility between the two parties in the contract; the rate of cost recovery; dispute resolution; the participation of locals; and the exploration period.

As Mr Sangweni explains the force behind the change of MPSAs to be the global business trends in the oil and gas sector, the regional director for the Natural Resources Governance Institute (NRGI), Mr Silas Olang, said debates on encountering carbon dioxide in the world are among the main factors.

“Currently, investors want more incentives. It is possible that in the years 2030-2050 the demand for oil and gas will decrease significantly in the world and move to renewable energy in order to encounter carbon dioxide. So, the investor will need the protection of his capital from the government if prices will go down,” he said.

“So, there is a need for reforming MPSAs so that we should not find ourselves giving away that resource for free. It is also time for the government to analyse the business environment so that it can be used more useful in the future,” he added.

Gas and oil industry stakeholder Lucy Shao advised the government to be open to its citizens about the areas it intends to reform in order to avoid conflicts.

“If they admit that there were some mistakes, what should the people do now? If the government involves the public, it will increase trust in them,” said Shao.

Roselian Jackson, a private consultant for international investment and trade laws supports the transparency argument, suggesting that the government should strengthen the legal frameworks that will be strong for every investor.

“MPSAs facilitate agreements with the investor, attracts even bribes due to its secrecy. What is needed is transparency and strengthening the laws like Botswana, where they benefit from their resources,” he said.



www.thecitizen.co.tz

Tags: attractGasInitiativeinvestorsoilTanzania
Previous Post

All new passenger cars will be electric by 2040

Next Post

China ready to talk with Marcos on oil, gas exploration in WPS

Related Posts

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

by Oil Market News
January 27, 2023
0

© Reuters. FILE PHOTO: United Arab Emirates' Industry Minister Sultan Ahmed Al Jaber speaks during the Abu Dhabi International Petroleum...

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

by Oil Market News
January 26, 2023
0

The image that comes to mind when I think of fossil fuel villains is Batman’s adversary Two-Face. To be two-faced...

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

by Oil Market News
January 25, 2023
0

© Reuters. Chevron goes big with new $75 billion buyback, surpassing Exxon's By Investing.com Staff Chevron (NYSE:) shares rose 2.5%...

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

by Oil Market News
January 24, 2023
0

© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma,...

Wells Fargo, Disney, and 10 Other Stocks Value Investors Are Watching

Wells Fargo, Disney, and 10 Other Stocks Value Investors Are Watching

by Oil Market News
January 23, 2023
0

Text size Eaton Vance’s Aaron Dunn expects cost cutting at Disney and a more balanced approach to growth and profitability...

12 Best Algae and Biofuel Stocks To Buy

12 Best Algae and Biofuel Stocks To Buy

by Oil Market News
January 22, 2023
0

In this article, we will take a look at the 12 best algae and biofuel stocks to buy. To see...

Next Post
China ready to talk with Marcos on oil, gas exploration in WPS

China ready to talk with Marcos on oil, gas exploration in WPS

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Biden Crackdown on Permian Pollution to Pare Crude Output, Oil Lobby Says

Biden Crackdown on Permian Pollution to Pare Crude Output, Oil Lobby Says

6 months ago
If we’re lucky, OPEC is wrong about oil demand going up

If we’re lucky, OPEC is wrong about oil demand going up

6 months ago
Saudi Arabia, Russia Agree to Record Oil Cut Under US Pressure as Demand Crashes

Saudi Arabia, Russia Agree to Record Oil Cut Under US Pressure as Demand Crashes

6 months ago
12 Best Algae and Biofuel Stocks To Buy

12 Best Algae and Biofuel Stocks To Buy

5 days ago
Saudi Oil Boost, Yemen Truce Set Stage for Biden Visit to Kingdom

Saudi Oil Boost, Yemen Truce Set Stage for Biden Visit to Kingdom

8 months ago
ADVERTISEMENT
Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

January 27, 2023

Internet of Things-as-a-Service to Enable Improved Opportunities

January 27, 2023

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023

White House blasts Big Oil stock buybacks again as Chevron profits double

January 27, 2023

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023

Trinity To Spud Jacobin Well In Second Quarter Of 2023

January 27, 2023

Crude Oil

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

January 27, 2023
Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

January 26, 2023
Opinion | Should the Strategic Petroleum Reserve Be Used Now?

Opinion | Should the Strategic Petroleum Reserve Be Used Now?

January 25, 2023
Rising Crude, Oil Products Inventories Weigh On Oil Prices

Rising Crude, Oil Products Inventories Weigh On Oil Prices

January 24, 2023

Investing

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023

Market

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023

OPEC

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023
Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

January 26, 2023
Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

January 25, 2023
FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

January 24, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.