Petrostate Blog for the Period of 06 to 19 August 2018

Can smallholders benefit from the new market opportunities from the extractive industry in Tanzania 
The recent discovery of huge oil and gas reserves in Tanzania has created a new opportunity for economic growth and development of the country. Tanzania is expected to be one of the leading producers and exporters of natural gas in the coming decade. However, 88 percent of poor Tanzanians live in rural areas and two-third of the labour force is engaged in agriculture. For the extractive industry to serve as a catalyst for economic growth and poverty reduction, it has to be integrated with the rest of the economy through forward and backward linkages.
One such linkage is food supply from agriculture. The projected boom in the extractive industry will open up new market opportunities for farmers to supply food items for high value buyers such as caterers, restaurants, supermarkets and processors. However, to benefit from rapidly expanding high-end food markets, farmers need to have both the capacity and the incentives to supply their produce at the desired quantity and quality. Currently significant portion of the new demand is already being filled by imported goods. This report discusses the opportunities for and challenges of integrating farmers into high-end food markets.Read more here

Energy Production & Changing Energy Sources

Authors attempt to cover the fundamental pillars we need to understand global and regional energy systems: their evolution through time in terms of consumption, relative sources, and trade; progress in global energy access and our transition towards low-carbon sources; and crucially the main development, economic and health drivers behind the energy choices we make. It is intended to provide a fundamental background to the macro-trends in our historical and current energy systems, with key learning on how we can use this understanding to shape pathways towards a sustainable future. Read more here

The boom, the bust, and the dynamics of oil resource management in Ghana
Oil resources are neither a curse nor a blessing. The sound management of these resources can make them beneficial or otherwise. In order to translate Ghana’s oil resources into inclusive development amid high expectations, several laws and regulations have been passed and new institutions created.
Despite the presence of the new institutions, laws, and regulations, spending from petroleum revenues appears to be rather thinly spread and not efficient. This defeats the purpose of diversification and leads to high debt and cost overruns.
On a positive note, the Minister for Finance, the Public Interest and Accountability Committee, and Bank of Ghana have been complying with most of the transparency requirements specified in the laws. It is essential that spending from petroleum revenues is guided by a medium- to long-term inclusive development strategy that is based on proper needs assessment, global trends, feasibility studies, and possible growth dynamics of the country.
In addition, expenditure of the annual budget funding amount needs to be rationalized and investment guidelines developed and implemented to focus within-priority expenditures to not more than three project/expenditure categories. Read more here

Extractives Data Ecosystems
In order to help users navigate the vast supply of data and the diverse global availability of data use cases, NRGI has created two searchable online repositories, or ecosystems, that focus on data supply and data use. read more here 

Finding the Missing Millions
A handbook for using extractive companies’ revenue disclosures to hold governments and industry to account. Read more here


The training was jointly opened by the REPOA Executive Director, Dr Donald Mmari and Silas Olan’g, NRGI Co-coordinator Africa, who set the scene in their brief welcome remarks about the workshop. REPOA and Natural Resource Governance Institute (NRGI) were honoured to have the workshop officiated by Mr. Trygve Bendiksby the Acting Ambassador to Royal Norwegian Embassy (RNE) in Tanzania. Read more here


MOOC on Natural Resources for Sustainable Development: The Fundamentals of Oil, Gas and Mining Governance
The Columbia Center on Sustainable Investment (CCSI), the Natural Resource Governance Institute (NRGI), the World Bank and the United Nations Sustainable Development Solutions Network (SDSN) are pleased to announce that enrollment for the massive open online course on Natural Resources for Sustainable Development: The Fundamentals of Oil, Gas and Mining Governance, starting on September 10, 2018 is now open! The MOOC, (delivered in English with video transcripts also available in French, Spanish, and Russian), is designed for the participation of large numbers of geographically dispersed learners. It stretches over 12 weeks and covers a range of topics including:understanding the governance and industry fundamentals,developing and implementing robust and transparent legal frameworks, designing fiscal regimes to capture a fair share of the revenues, managing environmental risks, engaging with communities,leveraging investments for infrastructure and business linkages,managing revenues for economic diversification and development. For more details click here

In The News

Talks on energy investment on track
Negotiations between the government and companies that have shown interest in investing in the energy sector are at an advanced stage, The projects and their projected capacity in brackets include: Wind-East Africa Energy (100MW); Masigira Hydro (70MW); Songo Songo natgas (60MW); Kilwa natgas (320MW) and Mbeya Coal (300MW). The acting assistant commissioner for energy development at the ministry of Energy, Mr Juma Mkobya, told The Citizen last week that the government will also float a tender so as to give room for other interested companies to participate in developing Tanzania’s energy sector. Read more here

Swala Receives Approval To List Bonds On The Stock Exchange Of Mauritius
Swala Oil & Gas (Tanzania) has announced that the Stock Exchange of Mauritius has approved the Company’s Listing Prospectus, allowing the listing of the Company’s US$50 million Corporate Bonds on the SEM with Greenshoe Rights. The Company first announced the move to Mauritius on the 2nd of July 2018. The Company and its advisors will now proceed to finalising the financing for the second and third tranches of the transaction with Orca Exploration Group Inc. Read More here

Uganda to start Importing Gas from Tanzania
Uganda has started negotiations with Tanzania on importing natural gas that will be used as a reducing agent in steel and iron manufacturing. The minister for the Energy minister,Ms Irene Muloni, told Parliament’s Natural Resources Committee that discussions about depending on Tanzania for gas are still on-going. “Maybe as we build the pipeline for crude [oil], we could also build a pipeline for gas to come from Tanzania [to] go to the west [of Uganda] to help us set up the iron and steel industry,” she said. The gas, she said, will be used as a reducing agent in the iron and steel industry. Read more here

Africa Oil Relinquishes Kenya’s Block 9
Block 9 operator Africa Oil has submitted a notice to the Government of Kenya relinquishing its interest in the block leaving Delonex as the only partner after acquiring Marathon Oil’s equity. The two JV partners had until June 2018 to reevaluate and reprocess seismic and other data the Bogal-1 well which was plugged and abandoned with then operator CNOOC citing extensive fracture network proven by the abundant fluid losses during drilling and the Formation Micro Imaging (FMI) log.Read more here

Mozambique Approves PSCs Awarded During the 5th Competitive Bidding Round
The Mozambique’s government has approved exploration contracts to various international companies awarded blocks during the 5th Competitive Bidding Round in 2015 after four years of delays. The companies which include: N-Exploration (100% Rosneft subsidiary) and ExxonMobil Exploration and Production Mozambique Offshore which were awarded 3 blocks (A5-B in the Angoche Basin and Z5-C and Z5-D in the Zambezi Delta), Eni and Statoil which won Angoche Area A5-A, Sasol Petroleum for Pande/Temane Area PT5-C and Delonex Energy Ltd which got Palmeira Area P5-A. Read more here

Marked for demolition? Ugandans on pipeline route fear land loss
The government is set to take about half of the land, which feeds Mubona’s 20 children and numerous grandchildren, to build the world’s longest electrically heated oil pipeline from northwest Uganda to Tanzania’s Tanga port on the Indian Ocean. Read More here


Upcoming Events
AOP 2018: Africa Oil & Power Returns to Cape Town
For the third year running, Cape Town is host to the flagship Africa Oil & Power conference, connecting Africa’s top leaders in the petroleum and power sectors. AOP 2018 is the premier platform for energy investment and policy discussions for the entire continent. For more Information click here
The Tanzania Petrostate Programme Blog is produced by the joint programme of three institutions: REPOA and theNBS 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 Petrostate Programme runs a website at where the participating institutions and researchers are presented and the aims of the programme, research results and publications are posted. The programme is also gradually building up a Resource Hub  ( researchers and other users can download important statistics and information pertaining to the petro sector and its effect on the Tanzanian economy and society. The database covers 20 categories including production and sales of petroleum products, environmental issues, poverty, public budgets etc.

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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