The Fossil Fuel Market in East Africa

Dar es Salaam: Stakeholders in Oil and Gas are expected to convene next week in Dar es Salaam for the Tanzania Oil and Gas Law Market Briefing 2016 at the Hyatt Kilimanjaro Hotel.

The briefing among other things will give a chance for stakeholders to gain insight in the state of the Tanzania’s oil and gas legislations.

This follow as a result of recent offshore successes in Tanzania, the entire East Africa margin currently has the attention of the world’s new ventures teams, explorers and gas (LNG) buyers.

According to the ministry of Energy and Minerals, natural gas reserves discovered in the country has increased by 18 per cent to 57trillion cubic feet by end of last year, from 46.5trillion cubic feet in June 2014.

With Gas reserves proven and additional acreage expected to come online in 2016, the Tanzanian Government has taken some very swift steps in providing the legal and fiscal framework for the industry in the form of The Tanzania Extractive Industries (Transparency and Accountability) Bill 2015, The Oil and Gas Revenue Management Bill 2015 and The Petroleum Bill 2015. 

However, the three legislations have faced a myriad of criticism from the opposition members and the public in general who have insisted that should the Acts be assented by the President, the country’s natural resources would benefit foreign investors rather than the locals.

According to Breakthrough Attorneys there are some remarkably clear and unambiguous requirements for transparency in the newly assented Acts. Most obviously, this includes the publication of all existing and new Mineral Development Agreements and Production Sharing Agreements.

Breakthrough Attorneys is an ultramodern legal practice based in Tanzania having a spectrum of cross-borders practices that cater for local and multinational corporations, financial institutions, government entities as well as business private individuals concerning their legal needs around the globe

However, the legal firm asserted that; “despite the shortcoming on the new Acts, it is right to say that the same are a big step forward to transparency on the overall management of the country’s resources.”

Additional opportunities and the relation to the new laws will also be discussed; farming-in into the existing exploration, production licences, proper use of Oil stop valves, and investment in the downstream projects (cement, fertiliser, petrochemicals, power, gas distribution in the cities).

Others will include emerging services associated with Liquified Natural Gas (LNG) as well as establishing JV with local companies, like that well abandonment company in Alberta, for participation into servicing the oil and gas industry.

The briefing is targeting participants from Oil and Gas companies, Financiers, Development Funds, Commercial Banks, Deal Brokers, Private Equity Firms and the Law Firms.

According to organizers, the briefing will revising the three bills as well as the local content policy draftand non-Citizens Employment Regulation Bill.

The opening presentation titled “Opportunities and investment in Tanzanian oil and gas exploration and development” will provide participant with an encapsulating overview of the market presently and the parameters around future oil and gas developments and subsequent business.

Other presentation will include “Key regulatory developments in oil and gas – Tanzania” by Charles Rwechungura, Founder and Managing Partner, CRB Africa Legal.

Peter Kasanda, Partner, Clyde & Co Tanzania will present the petroleum Act 2015 which will give insight on how to conduct Oil & Gas activities in Tanzania, the Government participation and local content, Domestic supply obligations, Fiscal obligations.

Kassanda will also highlight the dynamic contract negotiation over a project lifecycle, infrastructure investment and local content, Preferential Procurement obligations and Local content priorities – “Tanzania Kwanza”

The 2015 Petroleum Bill stipulates a 12.5 percent royalty for oil and gas production onshore and 7.5 percent offshore.


According to the bill, the government’s profit share from future oil production which will be tagged to daily production levels will range from a minimum of 50  to 70 percent while the share of profit on natural gas production will range from a minimum of 60 to 85 percent.


The Bill also ring-fences the recoverable costs of exploration and development licenses, establishes a Regulatory Authority and Advisory Bureaus to manage the oil and gas sector and seeks to transform the Tanzania Petroleum Development Corporation (TPDC) into the National Oil Company (NOC)

In-depth session will cover Model Production Sharing Agreement 2013, Tanzania Petroleum Act 2015 and the Tanzania Extractive Industries Transparency and accountability Act 2015, Tanzania Oil and Gas Revenues Management Act 2015 as well as Contracts Management and Negotiations.