tanania

Unease in Tanzania takes hold

 21 September 2012 06:45 GMT
ALARM bells rang out in the Tanzanian commercial capital of Dar es Salaam this week when newly appointed Minister of Energy & Minerals Sospeter Muhongo declared a review of all oil and gas contracts entered into by the Tanzania Petroleum Development Corporation (TPDC), writes Barry Morgan.
Officials have until 30 November to determine whether any of the 26 petroleum sharing agreements are ‘not in the country’s best interests, are shoddy and need to be revoked”.

At first glance, Muhongo is simply treading a well-worn trail blazed by many a new African energy minister in promptly declaring all deals signed by his predecessors as somehow lacking in transparency.

“I can’t tolerate agreements that are not in the country’s interest but they benefit a few individuals,” he said.

There have been strains lately on relations between the government and some of the companies that originally opened up the country’s offshore gas play, but most, such as Ophir Energy, simply view these comments as part of a wide brief to ensure compliance with work programmes and regulatory commitments.

The country delayed a licensing round for nine deep-water blocks last month, which optimists hope will resurface later this year as fresh regulations look set for parliamentary passage next month, but the timetable is far from assured.

Analysts worry that inter-ministerial wrangling and acrimonious national politics will intensify as the debate over the country’s fledgling oil and gas policy unfolds, pushing back any prospect of getting an effective legislative framework to govern E&P.

Let's hope this doesn't impact BPT