Sometimes theres no easy answer....it like being in court...asked a question under oath...."the whole truth and nothing but the truth"...but they only want a yes or no answer....is this letting the jury now the "whole truth"?
So I will give my understanding / belief....
Correct, we are well advanced past this.
Also, I think that this is only an expansion article to gain political support. PSA are already in place throughout the world and are starting to vary, very little.
This is only part of the Production Sharing Agreement...
Basically its scaling any discovery:
Example: We find Oil/Gas which produces a well(s) PSA (Barrels per day/profit Split/Government/Company) 1-50,000 50/50% 50,000-99,9999 60/40% 100,000 - 150,000 65/35% over 150,000 70/30%
Varies depending on Gas or Oil found (market sell prices considerations)
You can see our PSA's here: http://www.swala-energy.com/documents/OPLResearchNote31July2013.pdf
Pages 11 (Kenya) & 19 (Tanzania).
As you will see, this at the lower end, will bring Tanzania to the same ratios as Kenya, as they used to be at 45/55% and 55/45%
As you can see, not a great deal of difference and bring some conformity & equality regionally.
So they may have increased the Government (peoples) stake 5% at the lower end of the scale. (increased chances)
What is not mentioned is that PROBABLY, the companies making the Exploration & Discoveries would want better tax & recovery benefits (off set partial)....this is just a direct route to ensuring the "people" retain some of their own resource values.
We, SWE (SOGTL, unique initiative) also have the luxury of being very close to SOGTL listing on the Dar Es Salaam exchange....this proves our strategy is not only right, but fair & desired by the people of Tanzania and will benefit them. WIN/WIN.
Considering the larger picture, I think this all ties in with a (any) Companies, Corporate Responsibilities....SWE's (Tanzania) & SWE's/Tullows (Kenya) is the best I've seen. Add in Student sponsorships, EGM Listing....its one of my attractions to SWE.
To be fair, can it impact...well yes of course.... Should we manage to discover a measly 200 million barrel resource....there would be a case for whether your shares are worth $5.00 or ONLY $4.75 :) = Win/Win ...LOL
Add in increased values...do you think Oil will be $100.00 per barrel in a few years? Maybe $150.00 would be closer to the mark?
Has Tanzania gone to early....Not at all. Their allocateable blocks is almost exhausted, hence the regional HOT SPOT label will ensure Companies maintain their enthusiasm for gaining some ground. Regionally...the good ground is moving fast....and SWE already has lots of it....front row, center stage I've used before :)
I believe this has been on the cards for a few years and remember reading that they had support of the World bank, or United Nations in developing their Oil and Gas plan. (or similar such organizations - memory recall :). I will respect this as Tanzania is unlocking their potential and joining the rest of the world as a developing nation.
This developing nation desire is not targeting Oil and Gas, negatively but is securing a future. Tanzania is/has also increase royalties on Gold as an example. Its total resource management, & country building. Great off spins with underpinned stability, investment cycle, international & local growth, infrastructure development, employment etc etc.
Large Majors and Super Majors are willing to invest huge sums to gain favour. Look at China and India making inroads and investments to infrastructure and development.
I hope this helps somewhat.
Myself, I support this type of patriotic preservation and advancement (for any country) and wish New Zealand did this better with our resources....
