Sunday, September 9, 2012

Oil&Gas in Tanzania:To Fast-track or to Backtrack ?

"We are not prepared for an expansion of exploration activity. Current legislation is out-dated and does not mirror the current political and economic status quo. We have no overarching Gas Policy, however progress has been made as both the Gas Act and Policy are currently being crafted. Nevertheless to continue on with a new round of licensing before these policies are complete is irresponsible. More importantly, we do not have legislation that will manage revenues from the sector. We need more time for the policies and legislative acts to be implemented. We will also need more time for institutions to be in place.A ten-year moratorium will give us the space to develop our capacity in key areas. TPDC can be overhauled to become an active exploration and production company, modelled on Malaysia’s Petronas. Currently, TPDC does not have the capacity or resources to be an effective and strong partner in developing our reserves. These capacity deficits include the ability to conduct basic geological surveys, contract negotiations and management as well as production and processing. A moratorium will allow us to support TPDC to become a strong and reliable trustee and gatekeeper of the country’s resources" - Zitto Zuberi Kabwe

"May I breifly talk on oil and gas activities. Tanzania has so far made discoveries of two natural gas fields, Songo Songo (discovered in 1974) and Mnazi Bay (discovered in 1982). Production of gas from Songo Songo started in July 2004, and is being used for electricity generation as well as for thermal applications in 37 industries in boilers, kilns and furnaces. Plans are underway to supply natural gas for households and vehicles. The Songo Songo gas field is estimated to contain 1.6 (tcf) of natural gas while Mnazi Bay is estimated to stock in excess of 4 tcf. The other 5 discoveries namely Mkuranga, Kiliwani-1, Pweza-1, Chewa-1, and Chaza-1 are under appraisal programmes.The three fields recently discovered by Ophir/BG in the deep water offshore have an estimated potential of 7 trillion cubic feet (tcf).Through Support and Agreement between Tanzania and China, a 532 km, 36 -inch pipeline will be constructed from Mnazi Bay, Mtwara to Dar es Salaam via Somanga Fungu. The maximum capacity of the pipeline is 286 bcf/year, which is sufficient to meet thermal and electricity demand of up to 3,900 MW. Presently, more effort is being put on policies and legislations on oil and gas which are at different stages of preparations prior to approval. However, the guiding principles are: the use of resources to create lasting benefits to society; efficient resource management; Transparency and accountability; Competitiveness and productivity; Protection of the environment and conservation of biodiversity; and Co-operation among stakeholders" - Ally Bondo Samaje


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