eyasi questions, page-12

Ok here it it is lads :

1. Written permission is required to assign interests in a licence (govt hold power and discretion).

2. Transfer cannot be Reasonably Denied (what is reasonable in this context ?

So swe have to argue that their application to transfer rights wa unreasonably denied .

As I said - were stuffed.


Consents

Under the Petroleum Act 1980, a legal or equitable interest in or affecting an exploration or development licence can only be transferred or assigned, directly or indirectly, by instrument in writing, and is subject to MEM’s approval. This applies both on a transfer of an interest and on direct or indirect change of control of the party with an interest in the licence. There are no reasonableness requirements regarding approval except that MEM shall give its approval for the transfer of an exploration licence when the transferee is a person controlling, controlled by or under common control with the transferor and is not disqualified from holding such licence.

Under the MPSA, a contractor is permitted to assign or transfer its rights, privileges, duties or obligations under the MPSA to an affiliate company provided that the Tanzanian government and the TPDC are notified in writing in advance and that the assignment will not adversely affect the performance of obligations under the MPSA.

The written consent of the Tanzanian government is required if the contractor wishes to make such an assignment or transfer to a non-affiliated person, firm or corporation (in whole or in part). This consent must not be unreasonably withheld or delayed. Moreover, as a condition of the assignment, the oil company must provide an unconditional undertaking from the assignee to assume all the obligations of the oil company under the MPSA.