Your message has been sent, you will be contacted soon

Call Me Now!

Close
Home » Analysis and reports » Tanzania new Oil law seeks to strengthen state control in Oil sector

Tanzania new Oil law seeks to strengthen state control in Oil sector

  • Array

TzTanzania’s new Oil and gas law,  The Petroleum Act 2015, currently awaiting debate in National assembly highlights a number of provisions aimed at giving state an upper hand in the Oil and gas sector.

The bill was presented by the government in pursuit of  giving a legal and regulation framework to the country’s budding oil sector. However, the Law is silent on Local content strengthening.

The parliament of Tanzania is set to debate the law which in its current form gives Tanzania Petroleum Development Corporation (TPDC) mandate to will undertake upstream, midstream and downstream operations and participating interests of the Government in the petroleum and natural gas agreements.

It calls for Government maintenance of not lesser than 51% shares in the TPDC  at all times.

The law on the other hand seeks the creation of Oil and  Gas Advisory Bureau in the office of the President whose role is to advise the Cabinet on strategic matters relating to oil and gas economy.

The law has also spearheaded the formation of the Petroleum Upstream Regulatory (PURA) as a semi-autonomous body to supervise and regulate upstream petroleum operations in all gas exercises in the country.

The National Petroleum and Gas Information System (NPGIS) will be another institution under the new law, which will act as strategic planning tool for the Government and other interested parties and for informing the public periodically, about the status of the gas industry

The government also under the law seeks to establish an Oil and Gas Revenues Fund to ensure transparency and accountability in collection, allocation, expenditure and management of oil and natural gas revenues.

See bill below for more details especially on rates, Tariffs and and charges

Tanzania Petroleum Bill 2015

Tags: