PetroStateBlog for the period 19.02 to 04.03. 2018

Research

The research work by Uongozi brings to light social license to operate in Tanzania. The concept of a social license to operate (SLO) has become a key issue for companies, researchers, policy makers and other stakeholders in the extractive sector. Securing ‘social permission’ for extractive activities is increasingly seen as critical for the future profitability and sustainability of the sector.

Indeed, the debate around SLO has also been extended to other economic sectors, including agriculture and pulp production.  The study puts forward recommendation that may improve company-community relations in the extractive sector, read more.

The recently launched World Bank’s report  titled The Changing Wealth of Nations 2018: Building a Sustainable Future, covers national wealth for 141 countries over 20 years (1995–2014) as the sum of produced capital, 19 types of natural capital, net foreign assets, and human capital overall as well as by gender and type of employment.  Discussions of the book highlight looting in Africa read here and here.

Of interest is the book, Managing Resource Abundance and Wealth: The Norwegian Experience describes the sundry and significant challenges, both economic and political, facing petroleum-producing countries. The volume outlines the pitfalls that policymakers encounter in the aftermath of a major resource discovery, and what they can do to protect their countries from the most adverse consequences. These lessons are derived from two very different sources: The broader-if still underdeveloped-social science literature that examines the ‘Paradox of Plenty’ in its disparate forms; and the experience of a country that has successfully managed its natural resources over several decades. As a small country on the margins of Europe, Norway has stood up to powerful international interests in one of the world’s most powerful industries. Norway has exerted sovereign control over its natural environment, and exploited its resources in a way that has delivered significant wealth to its citizens.

This volume explains how Norway has largely avoided the ‘Paradox of Plenty’. It aims to demonstrate the variety of policy tools that are available to states rich in natural resources, and how these tools can be adjusted to changing (domestic and international) contexts. It considers a number of questions, such as how countries need to administer and regulate the industry to consider the costs and benefits associated with various contract and licensing regimes, and fiscal arrangements; to maintain competitiveness and avoid becoming too dependent upon the sector; to maximize local content; and to protect the broader economy from the volatility of petroleum prices. The volume shows how the industry can be managed in a democratic, just, and ethical manner, and for the benefit of the general population.

Jonathon W. Moses and Bjørn Letnes (2017). Managing Resource Abundance and Wealth. The Norwegian Experience. Oxford University Press.

Book: Implementing Shared-Use of Mining Infrastructure to Achieve the Sustainable Development Goals offers suggestion on how mining can increase access to needed infrastructure in developing countries.

Training

A 4 months fellowship (sabbatical) for  African researchers at the University of California, Berkeley, to be completed during Fall 2018 (September –December), or Spring 2019 (January -May).To be eligible, researchers must be residents of an East African country (Ethiopia, Kenya, Rwanda, Tanzania, or Uganda) and hold a staff or student position at a research institution, university, or other organization headquartered in East Africa. Applicants must already have a PhD or be working towards a PhD. Application deadline:  11:59 pm U.S. Pacific Time on Friday, 30 March 2018.

HakiRasilimali held a data &data analysis training (see here) . A blog by CCSI highlights issues around Transparency and community Empowerment around Land Investments in Cameroon.

In The News

AngloGold Seeks Tanzania Talks to Break Impasse on Mine Laws

Last year, Tanzania approved laws that enable it to renegotiate contracts with mining companies as well as other measures such as higher royalty payments. AngloGold, which plans to extend the life of its Geita mine in the country, has since lodged an appeal with the United Nations Commission on International Trade Law to have a mine development agreement it signed with Tanzania in 1999 upheld (read more)

Ghana’s new online petroleum contract registry
The government of Ghana followed through on a promise it made in July 2017 by launching a public petroleum register that contains the full texts of petroleum agreements, licenses, permits and authorizations.

Total Becomes First Major Oil Company to Support Contract Transparency
French oil giant Total is the latest company to make a policy statement in support of contract transparency in the extractive industries. Oil, gas and mining contracts agreed between companies and governments set out the legal framework for extractive projects. Publishing contracts allows citizens of resource-rich countries much-needed scrutiny of deals that can be worth billions of dollars. Disclosure also provides important opportunities for governments and companies to build public trust in the extractive industries. From an investor perspective, publication of contracts reduces the political risk that results when deals are kept secret. Read more here

Northern Gas Networks (NGN) wants to shift its customers from natural gas to hydrogen
A UK company to replace natural gas with hydrogen as a heating and cooking fuel. If the company succeeds in its pilot-scale study in the city of Leeds, it could eventually help the UK cut nearly 20% of its annual emissions and make the country a hub for hydrogen. Read it in full here.

Canada’s now losing energy sector business to Tanzania

According to a reliable contact in Alberta’s energy industry, a major international energy investor had been looking at making a sizeable investment in Canada but decided not to … the company is going to invest in Tanzania instead.

Stakeholders of the oil and gas had a workshop on the 23rd February 2018 at the Bank of Tanzania.

Up coming 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 2018 Global Forum on Development – The Power of 4 Billion – Inclusive Agendas for Women & Youth– will take stock of the progress to date, and debate how policies  can keep the promise of unleashing the power of women and youth as critical agents of change.
Location: OECD Headquarters, Paris Dates:  5 April 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.

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