Petrostate blog for the period 11.03.2019 to 24.03.2019

Petroleum’s potential impact on future state-society relations in Tanzania
A new brief by CMI and REPOA under the Petrostate program.

Tanzanian citizens continue to have high expectations about the benefits that the country’s emerging petroleum sector will provide them with, yet they possess low knowledge about the sector. Policy makers should take concrete steps to rectify this knowledge-expectation gap by providing updated information in accessible and easy-to-understand formats. Revenue transparency should be encouraged, and more research should be carried out to improve understanding of how the prospect of future petroleum revenues may shape citizen attitudes and behaviors. Read more here

Institutions and the “Resource Curse”: Evidence From Cases of Oil-Related Bribery

While some resource-rich countries are highly corrupt, others have transparent and well-functioning governments. What explains this wide variation in so-called “resource-cursed” states? I show that these differences result from domestic institutional choices over how resource extraction is governed. Some governments grant procurement authority—the ability to award contracts for production rights—to state-owned enterprises, whereas others place this authority in ministries. Building upon agency theory, the authour argue that this choice matters. Read more here

Dependence on extractive industries in lower-income countries
This paper synthesizes statistical information evidencing the proposition that extractive industries are of great significance in many low- and middle-income developing economies. It examines the scale of the current dependence of low- and middle-income economies on both types of extractive resources: metals, and oil and gas. The paper also assesses how country levels of dependence have changed in the past twenty years, showing that there has been a clear upward trend. The paper outlines how the upward trend has continued in many countries despite the recent commodity price collapse, and assesses some of the consequences of that collapse. Read more here

Announcement: Share your Articles!

This year we are welcoming interested parties, who would like to have their articles read by a wider audience through our Petrostate Blog to submit your articles to us. The article should reflect issues related to natural resource debate mainly Oil and Gas and Mining. Articles with focus on Tanzania’s Oil and gas sector are highly encouraged. Please adhere to making the articles brief and informative.

Send your articles by replying to this email (

In The News

LNG project on the right track

An interview with Shell managing director Marc den Hartog,as the government prepares to have individual discussions with international oil companies, The Citizen Reporter Rosemary Mirondo asks,  to know what is going on. Read more here

Tanzania to Start Talks for $30 Billion LNG Project in April

Tanzania plans to negotiate terms for developing a $30 billion liquefied natural gas project with companies between April and September, the Energy Ministry said.
The talks are aimed at reaching a so-called Host Government Agreement, the pact that governs the rights and obligations of parties with respect to the development, construction and operation of the project. Equinor ASA, one of the companies involved, could sign the accord after the talks, according to the emailed statement. Read more here

Investment centre outlines vast opportunities in Tanzania
The Tanzania Investment Centre (TIC) has identified priority sectors it now promotes to both local and foreign investors as the country`s focus shifts from exports of raw materials to value addition and industrialization. Read more here

Rising Nationalism Threatens Extractive Industries In Russia, Venezuela And Other Emerging Markets

The Democratic Republic of Congo (DRC) and crisis-wracked Venezuela top a new list of countries according to the Resource Nationalism Index (RNI) produced by global consultancy Verisk Maplecroft. Governments in 30 countries—mostly major producers of oil, gas and minerals—are ratcheting up the pressure to directly or indirectly control the exploitation of natural resources.Eight countries including Tanzania, Russia, North Korea and Zimbabwe share the highest risk profile in the ranking of 198 nations. Africa is home to 10 countries on the index facing the highest risk of expropriation. Read more here

Government plans Sh620bn Budget increase

The government plans to raise its 2019/20 budget by about Sh620 billion as it seeks to foster investments in economic infrastructure projects that would foster Tanzania’s industrialisation agenda. Presenting the 2019/20 budget framework to Members of Parliament (MPs) yesterday, the Finance and Planning Minister, Dr Phillip Mpango pegged the coming revenue and expenditure plan at Sh33.1 trillion, an improvement from the Sh32.476 trillion in the 2018/19 financial year Read more here
Pipe dreams: Inside the Uganda –Tanzania oil pipeline talks
In between the fast-turning news cycle, of terror attacks next door in Nairobi and the merrymaking over Primary Leaving Examinations results in the week of January 18: the French oil major Total’s chief executive and chairman, Patrick Pouyanné, jetted into the country for discussions with President Museveni. Read more here
Revealed: 7 oil firms control over 67pc of market share
A total of 3.29bn litres of petroleum products were imported for domestic consumption in 2017/19, equivalent to 55 per cent of total imports..Read more here

Shift Sh1.4tr Tanesco debt to government, says PIC
A Parliamentary Committee now wants the government to shoulder loans for the state-owned power utility firm, Tanesco, amounting to a staggering Sh1.39 trillion.
Speaking during a tour of Tanesco’s Kinyerezi plants in Dar es Salaam on Monday, the Public Investments Committee (Pic) chairman, Dr Raphael Chegeni said Tanesco’s debts were huge and a burden to it, proposing that the government should shoulder the loans’ repayments. Read more here


Upcoming Event
REPOA’s  24th Annual Research Workshop






Theme: Local Economic Development: Unpacking potentials for accelerated transformation of Tanzania. The Second Sub-theme focuses on spatial variation in resource endowments 

The 24th ARW aims to provoke and promote policy dialogue and research on Local Economic  Development (LED) as a viable policy strategy in the transformation of Tanzania’s economy. Follow the discussion on social media with #ARW2019.

Date: 10th-11th April 2019     Place: Dar es Salaam

IGF 15th Annual General Meeting (AGM) The theme of the AGM is Mining in a Changing Climate.The AGM will include climate-related sessions covering a broad range of topics, including: actions the mining sector can take to climate-proof their operations; the contribution mining makes to global emissions, and efforts to reduce these; the crucial role mining will play in the transition to a low-carbon future; and the future impacts a changing climate will have on the mining sector.

Date: October 7 – 11, 2019                 Place: hosted by UNCTAD in Geneva
Visiting PhD Fellowship

Application for the programme are ongoing, the programme gives registered doctoral students the opportunity to utilize the resources and facilities at UNU-WIDER for their PhD dissertation or thesis research on developing economies
Deadline: 31 March and 30 September 23:59 UTC+3 each year.  For more informationhere

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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