Petrostate Blog for the period 05.02.2018 to 18.02. 2018


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. 

The East African Crude Oil Pipeline
The East African Crude Oil Pipeline (EACOP) continues its implementation where the Tanzania team led by the URT Coordinator, Mr. Salum Mnuna and Secretariat met with the Energy Parliamentary committee and shared updates. The team is expecting to see by 2020 first Ugandan Oil flowing in EACOP project. The pipeline project is expected to be the longest heated pipeline and with sizeable FDI Tanzania thus far to receive. Meanwhile, the new vision newspaper reports that, Uganda to get national talent register for oil jobs a move to catter for the EACOP and other related projects.

A Road map to Improve Rules for Taxing Multinationals
The Independent Commission for the Reform of International Corporate Taxation (ICRICT) proposes a solution to a failing system. Global formulary apportionment, coupled with a minimum corporate tax rate, is the only effective way for all countries to collect a fair share of tax revenue from multinational enterprises and avert a race to the bottom. Read a roadmap to improve rules for taxing multinationals. While there have been continuous talk about meaningful Tanzanians participation in mining sector as stipulated in the supplementary act. Recently Anine Kilian shared views, “Recent regulations published to facilitate the implementation of the earlier legislative changes have added a further layer of complexity for industry participants to consider”.

Is gas demand growth living on borrowed time?
The idea that gas growth could stagnate as early as 2030 – within the economic lifetime of gas assets being sanctioned now – is understandably alarming.  But the truth is that several pundits within the gas industry have issued dire warnings about the longevity of gas’ role in the world energy mix.  Most recently Jonathan Stern, of the Oxford Institute for Energy Studies (OIES), joined the fray, suggesting that gas is well on the way to become either unburnable due to carbon restrictions or unaffordable because of high costs.To read click here But the International Energy Agency’s energy outlook projects gas demand to grow beyond 2030, although there could be large scale shifts in the global energy mix, driven by the rapid deployment and falling costs of clean energy technologies, shift to a more services-oriented economy and a cleaner energy mix in China, and the resilience of shale gas and tight oil in the United States, among other factors. Read more. here.


For 14 weeks since February 5th: A free online course on Natural Resources for Sustainable Development: The Fundamentals of Oil, Gas and Mining Governance. The training is offered by Natural Resource Governance Institute, CCSI and the World Bank (FREE)

28th February 2018 is the deadline for applying for the Executive Training on Extractive Industries and Sustainable Development offered by CCSI
Location: Columbia University in New York City Dates: 4th to 15th June 2018.

In the news

Tanzania lays down the law on local participation in mining sector
The mining industry in Tanzania is adopting a wait-and-see approach following the government’s sweeping changes to mining regulations, aimed, in part, at ensuring sovereign ownership of the country’s natural resources, read on

Continuous reinvestment in the petroleum sector is crucial for sustaining production
Investments by BP in exploration work in the North Sea have proved to be worthwhile. BP announced the discovery of what is believed to be a large North Sea field, which will boost its oil production by more than three decades. It expects to double its production to 200,000 barrels a day as early as 2020. BP’s strategy for developing new fields is also associated with a strategy to offload mature assets in UK’s Continental Shelf as oil prices plummeted, read on

Why Think Tanks Matter?

Recently REPOA organized a discussion on why think tank matters event that coincided with the launch of the 2017 Global Go To Think Tank Index in more than 170 countries worldwide. The meeting was graced by H.E. Katarina Rangnitt, Swedish Ambassador to Tanzania, who insist ed the importance of continuous support to research organizations to bring about equality. At the meeting, Planning Commission – Ministry of Finance and Planning and the National Bureau of Statistics spoke of the importance of having more think tanks to complement their work on planning and analysing information respectively. Fellow think tanks in attendance included Uongozi Institute, ESRF and STIPRO. The meeting called for having a platform for think tanks to discuss their matters.


REPOA ranked Top Think Tank in Tanzania
The recently launched 2017 Global Go To Think Tank Index (GTTTI)  Report has ranked REPOA at number 12 out of 90 leading Think Tanks in Sub Saharan Africa that were assessed. For 4 consecutive years REPOA is ranked as the top Think Tank in Tanzania. Speaking at the Why Think Tanks matter event hosted by REPOA in Dar es salaam Dr. Mmari mentioned that In 2015, REPOA was ranked at 18 of 95 Think Tanks and 13th in 2016 in Sub-Saharan Africa. The report shows decline in number of think tanks due to several reasons mainly around declining supporting resources.

Beyond GDP
In comparing nations GDP is often used. Listen to this webcast that covers the ups and downs of using the measure and some additional suggestion in a panel led by NRGI President an CEO Daniel Kaufmann.. What will it take to move beyond GDP?

Rising Domestic Demand
Growing gas sales from Maurel & Prom in the second half of 2017 as reported in early  February is derived from increase in local demand. In particular the surge in industrial use of gas may raise domestic market for natural gas providing opportunities to promote regional markets.

Upcoming events

The 23rd REPOA’s Annual Research Workshop will be held in April with the theme “Towards an industrialized society by 2025: Why national competitiveness matters
Location: Dar es Salaam Dates: 4 to 5 April 2018

The 23rd REPOA’s Annual Research Workshop will be held in April with the theme “Towards an industrialized society by 2025: Why national competitiveness matters
Location: Dar es Salaam Dates: 4 to 5 April 2018

The Fifth Edition of the Prestigious East African Oil and Gas Summit has now been slated for next June in the Kenyan capital of Nairobi.
2018 will see the East Africa Oil & Gas Summit celebrate its fifth anniversary as the most prestigious oil and gas summit in the region. Significant onshore oil discoveries in Uganda and Kenya and offshore gas discoveries in Tanzania and Mozambique have made East Africa a subject of intense interest among the global energy industry. The speed at which governments in East Africa are developing hydrocarbon reserves is a clear indication of their will to cement the region’s reputation as the new hotspot in hydrocarbon exploration and production. Recently, Tanzanian President John Magufuli ordered that exploitation of natural gas begin as a matter of urgency, whilst Kenya’s President Uhuru Kenyatta announced that the government has brought forward the country’s oil production deadline by two years and ‘set a path’ that will enable the country to become a major producer and exporter by 2019. The 5th East Africa Oil and Gas Summit& Exhibition (EAOGS): provides a platform for East African ministries and the National Oil companies to engage with international and local investors to examine the vast opportunities across East Africa in the Oil & Gas industry.

Location: Intercontinental Hotel, Nairobi Dates: 14 to 15 June 2018


The Tanzania Petrostate Programme Blog is produced by the joint programme of three institutions: REPOA and the NBS in Tanzania, and CMI in Norway with support from the Royal Norwegian Embassy in Dar es Salaam. The purpose of the blog is to draw attention to publications and reports on the gas and petroleum sectors, which may be of interest to researchers, politicians and the general public. The blog does not state opinions but merely links to relevant postings on the world wide web with a brief description and/or quotes of the content and opinions stated by authors.

The programme and its cooperating institutions are extremely grateful for constructive comments, advice on the blog and website (link below) as well as information on important web posting that deals with the petro sector and its role in Tanzania.

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