Speakers

Adam Zuberi

Adam Zuberi

...

Ministry of Energy and Minerals, Tanzania


ABSTARCT

SESSION 14:  New Policy, Legal and Institutional Frameworks for the Petroleum Upstream  Sub- Sector in Tanzania

The exploration efforts in deep offshore basins (201-2015) resulted in discoveries of large quantities of natural gas. The discoveries have increased the total estimated gas in place (GIIP) in Tanzania basins from 8TCF in 2005 to 55.08 as of March 2015.

Oil and gas are finite natural resources. If these resources are not prudently managed in all phases of the value creation chain, producers may overexploit resulting into resource mismanagement. Firm policy, legal, regulatory and institutional arrangements are therefore necessary for the prudent management and sustainable exploitation of these finite resources and management of expectations.  

Cognisant of these facts, the Tanzania Mainland has reviewed the key instruments governing the sub sector and enacted new instruments, namely: Energy Policy (2015); Petroleum Act, 2015; The Oil and Gas Revenue Management Act, 2015; and Tanzania Extractive Industries (Transparency and Accountability) Act, 2015 to guide and oversee the industry operations. These new instruments together with Model Production Sharing Agreement (MPSA 2013) are the key instruments governing the development and operations of the petroleum upstream activities in Tanzania Mainland. Other laws that supplement the petroleum upstream legislations include: The Constitution of the United Republic of Tanzania (1977); The Income Tax Act, 2004; the Environmental Management Act, 2004 and Occupational, Safety and Health Act, 2013.

The Energy Policy (2013) provides framework for guiding petroleum operations in the country including Legal and Institutional framework. The Petroleum Act, 2015, enforces the Policy guidance and provides for: regulations of upstream, midstream and downstream petroleum activities; establishment of the Petroleum Upstream Regulatory Authority (PURA); ` Designation of TPDC as the National Oil Company, Securing the accountability of petroleum entities and other related matters.   The Oil and Gas Revenue Management Act, 2015 provides for: the Establishment and Management of the Oil and Gas Fund; Framework for the fiscal rules; and Management of Oil and Gas revenue and other related matters.  Tanzania Extractive Industries (Transparency and Accountability) Act, 2015 provides for: the establishment of Extractive Industries (Transparency and Accountability) Committee for the purpose of ensuring transparent and accountability in extractive industries; and to provide for other related matters.

This paper therefore discusses the new policy, legal and institutional framework governing petroleum upstream industry in Tanzania Mainland, and the challenges in enforcing the same into practice.