Petrostate Blog for the period 05.02.2018 to 18.02. 2018

Research

International Gas Outlook and Implications for Developing Tanzania’s Gas Projects
A briefing by Uongozi institute and The Columbia Center on Sustainable Investment CCSI reviews recent international gas developments and considers the implications for the development of proposed offshore gas projects in Tanzania. International Gas Outlook and Implications for Developing Tanzania’s Gas Projects outlines trade-offs that negotiators should consider as they seek to determine domestic gas allocation in contracts with extraction companies.  Continue reading Petrostate Blog for the period 05.02.2018 to 18.02. 2018

Petrostate Blog for the period 22.01.2018 to 04.02.2018

Natural gas, oil and energy sector:

A briefing by natural Resource Governance Institute (NRGI) uses newly released data on in-kind payments made to governments by oil and gas companies for the right to extract natural resources. The briefing reveals that in-kind payments made to national oil companies (NOCs) in the form of physical oil and gas can account for the majority of the overall payments that these companies make to governments in order to extract resources. While these in-kind payments received by NOCs are large, the Resource Governance Index (RGI) shows that many NOCs in oil-producing countries score poorly in indicators that assess their governance and disclosure practices in relation to the sale of these important state assets of oil and gas.

 

Gas, coal and renewable energy were all in competition last year as the global economy improved. Gas demand rose 3% in the first three quarters of 2017, compared to the same period in 2016, thanks to China and Europe.

Continue reading Petrostate Blog for the period 22.01.2018 to 04.02.2018

Petrostate Blog for the period 08.01.2018 to 25.01.2018

Starting our examination of news of the period in the macroeconomic field, the IMF Executive Board Completed Seventh PSI Review for Tanzania with the main conclusions:

  • Macroeconomic performance under the program has been satisfactory.
  • Most quantitative targets were met, though implementation of structural measures lagged.
  • Authorities should step up budget implementation, particularly in development spending.
  • Macroeconomic policies will need to be closely coordinated.

 

The Citizen however points out that the growth rate put by the IMF differs from the 7% target of the Government. The Government says that Tanzania remains among the top performers in Africa for having a steady growth rate in 2017. The economy is expected to grow by 7.0 per cent and continue to grow on average of 7.4 per cent in the medium term.

Continue reading Petrostate Blog for the period 08.01.2018 to 25.01.2018

Petrostate Blog for the period 25.12.2017 to 07.01.2018

At this usually slack turn-of-the-year time, writers and commentators take the opportunity to look back at what happened in 2017 and venture guesses and advice for 2018. A broad view on many issues are given in the Quarts News Service Africa that among other things look at “How the African economies tipped to thrive in 2017 actually performed” Continue reading Petrostate Blog for the period 25.12.2017 to 07.01.2018

Petrostate Blog for the weeks 27.11 to 10.12. 2017

In its World Energy Outlook 2017, IEA focuses on the advantages of natural gas for power generation. The role of natural gas in the future is inextricably linked to its ability to help address environmental problems. With concerns about air quality and climate change looming large, natural gas offers many potential benefits if it displaces more polluting fuels. This is especially true given limits to how quickly renewable energy options can be scaled up and that cost-effective zero-carbon option can be harder to find in some parts of the energy system. The flexibility that natural gas brings to an energy system can also make it a good fit for the rise of variable renewables such as wind and solar PV. Continue reading Petrostate Blog for the weeks 27.11 to 10.12. 2017

Petrostate Blog

A tremor in the worlds petro markets was caused recently by Norway’s sovereign fund proposing to sell off some USD 35 billion of its oil and natural gas stocks.  It caused a sharp but temporary drop in the worlds petro-stocks until the Norwegian Central Bank, that manages the fund, explained that they had merely made a proposal to the Ministry of Finance.  The Ministry will now consider the proposal and perhaps take it to the national assembly. A final decision is not expected before far into 2018.

Although the environment lobby was jubilant, the Central Bank denied that the shedding of oil stocks took place because the bank saw a future decline in the global petro industry. The Deputy Governor argued that the move was meant to diversify the economy and guard against drops in petroleum prices. Norway derives a hefty 20% of its GDP from oil and gas.

Continue reading Petrostate Blog

Policy making in the Tanzanian petro state: Building a statistical basis

This paper deals with needs and availability of data, statistics and information in Tanzania. It relates to a five-year (2014–19) research programme on prospects and challenges for the petroleum sector.

The main objectives are

  • to present a brief analysis based on data which is accessible at present and
  • to sketch a structure for the Tanzania Petro Data Hub

To read the paper click here.

Understanding the lay of the land: An institutional analysis of petro-governance in Tanzania

Tanzania has recently discovered large petroleum and natural gas reserves, boosting its natural resource stocks and potential future revenue flows. Whether the country’s petroleum resources will translate into economic development will be determined by the institutions that the government puts into place to govern the petroleum sector, to include the legal institutions. This study reviews the most important provisions of the new legislative framework that the government has recently adopted to govern this newfound wealth. We examine the institutions and actors created by the legislation as well as the opportunities and challenges that may emerge in its future implementation. Specifically, we analyse the petro-sector institutions that the legislation creates and the types of authorities granted to them; the institutional constraints placed on authorities; the interaction between institutions; potential institutional overlaps, conflicts and gaps; and transparency and accountability mechanisms. Read the paper here