Petrostate Blog for the Period of 09 July 2018 to 22 July 2018


What Mining Can Learn from Oil: A Study of Special Transfer Pricing Practices in the Oil Sector, and their Potential Application to Hard Rock Minerals
This paper looks at whether special practices in the oil sector that provide materially greater protection against transfer pricing risk could be applied to hard rock minerals. These are (1) administrative pricing, where government, rather than the taxpayer sets the price for crude oil; and (2) the no-profit rule, which prevents joint venture partners from charging a profit mark-up on the cost of providing goods and services to the group. The paper finds that administrative pricing may be effective at curtailing undercharging of specific mineral products, for example, base and precious metals. The no-profit rule is a less obvious “fit” for mining given the lack of joint ventures, and alternative rules to limit cost overstatement may be required instead

Governing Extractive Industries-A book
Uses Latin American and African case studies to form a broad geographical comparison also compares countries over long historical periods in order to allow readers to see patterns over time. Combines theory and deep empirical analysis, explaining concepts and supporting them with broad based substantiation

Extending the reach of multi-tier sustainable supply chain management – Insights from mineral supply chains
TTriadic or tetradic multi-tier sustainable supply chain management (MT-SSCM) research emerged recently to reach out towards raw material suppliers and to address their often severe sustainability impacts. This is especially relevant in mineral supply chains (SCs) which consist of a commodity chain upstream and an end-product chain downstream. To comprehensively investigate the reach of MT-SSCM in mineral SCs, the extant Delphi study brought together 44 global authors on sustainability in mineral SCs. They contributed their professional knowledge in three questionnaire rounds, which systematically identify, evaluate and contrast the sustainability challenges in mineral SCs. As a result, a generic mineral SC structure is derived and 17 major sustainability issues are identified. Moreover, the findings reveal that all but two sustainability issues need to be addressed in the upstream SC. As mineral SCs might comprise up to nine tiers, the most impactful tiers lie outside the reach of current MT-SSCM concepts, which are limited to triads or tetrads by the visible horizon or lacking power of the focal firm. We thus propose a cascaded MT-SSCM approach which links the up- and downstream SC parts. Moreover, individual focal firms for each SC part are defined, which build a direct strategic link. This link enables that tailored managerial responses can be cascaded into the respective SC parts, where the individual sustainability issues can best be addressed. This cascaded design represents a novel approach in MT-SSCM which multiplies existing concepts. Moreover, the challenges and opportunities, which the cascaded approach raises for MT-SSCM research are discussed and outlined.The article can be accessed at:

South Africa Oil & Gas Report 2018 to

The Zayed Sustainability Prize, a global award that honours the legacy of the UAE’s late founding father, Sheikh Zayed bin Sultan Al Nayhan, by rewarding the most innovative and visionary sustainability solutions of our time. In order to ensure that the best ideas from around the world are considered, It looks to attract the very best applicants from six world regions, across five core categories: Energy,Health, Food, Water, and Global High Schools.
If you are an organisation, SME, or high school, with an idea that can redefine your community and the global sustainability agenda,  submit your entries by clicking



Harnessing Natural resources for Development (HNR4D) 2018
Organised and delivered by REPOA and Natural Resource Governance Institute (NRGI). The training is a hands-on “learning from practice workshop that focuses on building the understanding of the links between, and the dynamics of, Extractives Governance and country’s development goals. The training aims to improve participants’ knowledge not only of policy options and tools to achieve these goals, but also the inherent challenges.

Date: 13-17th August  2018                                Place: Dar es Salaam

Swala Halts Further Investment in PanAfrican Energy Corporation citing Regulator Delays
Swala Oil & Gas (Tanzania) has announced that it will not extend the deadline to complete the previously announced investment by Swala in PAE PanAfrican Energy Corporation, a subsidiary of Orca Exploration Group Inc. of up to US$130 million for any specific time period. The extension pertains to tranche 2 and tranche 3 and does not impact tranche 1 which closed on January 16, 2018.

ARA Petroleum Tanzania Takes Over Operatorship of Ruvuma PSA following Farm-Out

ARA Petroleum Tanzania an affiliate of Eclipse Investments, the largest shareholder in Zubair Corporation will take over operatorship of the Ruvuma PSA after Ndovu Resources signed a binding farm-out agreement with the Zubair Corporation.

Eni, ExxonMobil Submit Rovuma LNG Phase 1 Development Plan

Mozambique Rovuma Venture has submitted the development plan to the government for the first phase of the Rovuma LNG project, which will produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block offshore Mozambique. The plan details the proposed design and construction of two liquefied natural gas trains which will each produce 7.6 million tons of LNG per year.

Guinea to Host the AU’s African Minerals Development Center
Guinea will host the headquarters of the African Minerals Development Center (AMDC). This is an outcome of the 31st Summit of the Heads of States and Governments of the African Union (AU) held in Mauritania, from 25 June to 2 July. Created in 2013, AMDC is the African Union’s specialized institution that implements the Africa Mining Vision (AMV), developed in 2009 for “a transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development” by 2050.

Launch of second phase of Kinyerezi II power project September, said the Tanesco board chair Alexander Kyaruzi during the 42nd Dar es Salaam International Trade Fair.
AECOM expands presence in East Africa’s oil and gas industry
The oil and gas sector in East Africa is on the verge of a major boom, as various infrastructure projects are expected to coming online, according to Bridget Ssamula, managing director of AECOMUganda.

Ethiopia begins trials for crude oil production
Ethiopia has started a trial of crude oil production at the Kalub and Hilala fields, located in the east of the country. Ethiopia is also planning to upgrade its downstream portfolio to boost oil and gas infrastructure. The test-production is undertaken by Chinese oil and gas exploration company Poly-GCL Petroleum Holdings Investment Ltd (POY-GCL).

Shell still needs to play catch-up after BG purchase
As both BP and ExxonMobil take a major bet on the continent, and Total and ENI ramp up their African investments, Shell is nearly the only Western major to be dragging behind.

Managing risk around maintenance in the data-rich age
Technology is disrupting the world of business. Digitalisation for oil and gas could be worth up to US$2.5tn for the industry over the next decade. What is the reality of risk in the current business world and how can technology and data enable safer, efficient environments for our businesses?


Upcoming Events


Breakfast Debate on “The Extractive Sector in Tanzania: What are the Key Political Economy Issues?”. The presentation will be made by Thabit Jacob from University of Dodoma. This month Breakfast Debate is done in collaboration with HakiRasilimali

Date: 27th July, 2018  from 0730am to 0930am                                  Place: British Council Auditorium, Dar es Salaam, Tanzania.
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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