Category Archives: PetroState Blog

Petrostate Blog for the Period of 28 May 2018 to 10 June 2018

Research

Beneficial Ownership Screening: Practical Measures to Reduce Corruption Risks in Extractives Licensing- Briefing

NRGI reviewed over 50 mining and oil laws and found that about half contained prohibitions on government officials or their close associates – often called “politically exposed persons” (PEPs) – holding interests in companies applying for extractives licenses, but none required regulators to actually check whether or not such PEP interests existed as part of screening license applications. https://resourcegovernance.org/analysis-tools/publications/beneficial-ownership-screening-practical-measures-reduce-corruption

Three Decades of Poverty Mobility in Nigeria: The Trapped, the Freed, and the Never Trapped
Individuals do escape poverty during periods of overall rise in the poverty rate; they also transit into poverty during periods of overall decline in the poverty rate. A static poverty estimate drawn from independent cross surveys tends to obscure these details because it is unable to provide information on individual poverty experiences across time and space. In this paper, the author explores six sweeps of household surveys of Nigeria (1980–2010) in an attempt to address these concerns. In addition, tests, by estimating poverty regressions, whether different processes are at work in determining chronic and transient poverty.  https://www.cgdev.org/publication/three-decades-poverty-mobility-nigeria-trapped-freed-and-never-trapped

Training

Upcoming

Call for Application: How Can Tanzania Harness Natural Resources
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. Applications for this year are open until 29th June 2018. For Application visit our website www.repoa.or.tz

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

Tanzania Energy Platform (TEP) is organizing a Oil & Gas Pipe Laying & Construction short Course 
TEP is a wide network of energy stakeholders from academic institutions in Tanzania and the Netherlands, international and domestic energy companies, as well as Government institutions responsible with development of energy sector. TEP is one of the outputs (outcomes) of the Tanzania Dutch Energy Capacity Building (TDECB) Project.

The founding educational institutions from Tanzania are the University of Dar es Salaam (UDSM), Dar es Salaam Institute of Technology (DIT), and Karume Institute of Science and Technology (KIST) of Zanzibar; while those from from Netherlands are University of Twente (UT), Hanze University of Applied Sciences (HUAS), Delft University of Technology (TUD) and Utrecht University (UU).

They brings together initiatives, partners and networks to support the acceleration of the energy development and growth in Tanzania. They do so, under their three pillars: training, research and innovation. Visit: www.atogs.org

In The News

Exxon seeks to sell out of Tanzanian gas field

Exxon Mobil (XOM.N) is seeking buyers for its stake in a large undeveloped gas field off Tanzania, according to three banking and industry sources, as the company focuses on the development of an even bigger project in neighboring Mozambique. The planned sale is an example of Chief Executive Darren Woods’ strategy of freeing up cash and narrowing the American firm’s focus on a number of giant projects around the world deemed to have the best prospects, including in Mozambique, Guyana and U.S. shale. https://uk.reuters.com/article/uk-exxon-m-a-tanzania-exclusive/exclusive-exxon-seeks-to-sell-out-of-tanzanian-gas-field-sources-idUKKCN1J31PS

Karamagi, Msabaha, among five ex-ministers named in 11 investigated energy contractsSome former ministers of Energy have been mentioned by a Special Parliamentary Committee that investigated contracts. The former ministers signed 11 contracts with natural gas exploration companies. Presenting the findings to the National assembly.http://www.thecitizen.co.tz/News/Five-ex-ministers-named-in-11-energy-contracts/1840340-4593332-r6qy27/index.html

Rosneft, ExxonMobil to sign gas agreement with Mozambique in 2018
Mozambique’s fifth licence round winners Rosneft and ExxonMobil will sign an Exploration Production Concession Contract with the Mozambique government for blocks A5-B in the Angoche Basin and Z5-C and Z5-D in the Zambezi Delta according to Russia’s top diplomat Sergey Lavrov. According to Lavrov who had discussions with Foreign Minister of Mozambique Jose Pacheco and Rosneft’s management on developing the gas fields in the north of Mozambique the signing is the only barrier to the joint venture commencing the project with an earlier agreement having been set for signing in 2016.
http://www.oilnewskenya.com/rosneft-exxonmobil-sign-gas-agreement-mozambique-2018/

Kenya in talks on oil pipeline as output set to begin in 2021
Kenya’s government is negotiating with potential investors in a pipeline that will link oil fields in the north of the country to a port at Lamu, Petroleum Principal Secretary Andrew Kamau said.The project is expected to cost $1.1 billion, after initial studies showed it would be less expensive than the $2 billion previously envisaged, Kamau told reporters Wednesday in the capital, Nairobi. The conduit will be built to ship crude finds estimated at 1 Bbbl that the East African nation plans to start producing commercially in 2021.http://www.worldoil.com/news/2018/5/30/kenya-in-talks-on-oil-pipeline-as-output-set-to-begin-in-2021

President Kenyatta Calls For Proper Management of Oil Income as Trucking Begins

President Uhuru Kenyatta today said Kenya will effectively manage oil and other natural resources to avoid the negative results that have confronted many other nations following new discoveries. Speaking during the flag off of 100,000 liters of stored crude oil in four trucks as part of the early oil pilot scheme he said there was a danger of losing all the benefits that can come from Kenya’s new oil wealth in the absence of effective resource management.http://www.oilnewskenya.com/president-kenyatta-calls-proper-management-oil-income-trucking-begins/

President Kenyatta to flag off trucking of Kenya’s oil on June 3

President Uhuru Kenyatta will flag off trucking of Kenya’s early oil from Lokichar in Turkana County on June 3, in what will inject oil as a critical factor in the economy, State House says. This follows a meeting at State House, Nairobi, chaired by President Kenyatta and attended by the Kenya Joint Venture Partners comprising Tullow Oil, Africa Oil Corporation and Total, Turkana County leaders including Governor Josphat Nanok and Petroleum and Mining Cabinet Secretary John Munyes and his team.http://www.oilnewskenya.com/president-kenyatta-flag-off-trucking-kenyas-oil-june-3/

Tanzania sees GDP growth at 7.2 pct this year -finance minister
Tanzania’s economy is expected to grow by 7.2 percent in 2018, up from around 7.1 percent last year, and the fiscal deficit will increase on the back of higher infrastructure spending, the finance minister said on Monday. Economic output in the East African nation is expected to be underpinned by vibrant activity in mining, transport and communications sectors. In a presentation to parliament, finance and planning minister Philip Mpango also said the inflation rate in 2018 would be “tamed at single digit levels”. The fiscal deficit will reach 3.2 percent of gross domestic product in the 2018/19 fiscal year (July-June), up from around 2.1 percent in 2017/18, he said. Tanzania’s inflation stood at 3.8 percent year-on-year in April, slightly down from 3.9 percent a month earlier.https://m.nasdaq.com/article/tanzania-sees-gdp-growth-at-72-pct-this-year–finance-minister-20180604-00925

Events

Upcoming Events

East Africa Oil & Gas Summit 2018

EAOGS 2018 annually features over 35 high-level speakers including ministry officials, senior executives and industry experts from NOCs, IOCs, financial institutions, government authorities and embassies, service companies and industry associations. They will gather to examine the latest opportunities and challenges in a highly informative conference led by the regions’ governments.visit: http://eaogs.com/

Date: 14 June 2018 to 15 June 2018           Place: Kenya Intercontinental hotel

WGC 2018- The 27th World Gas Conference

The 27th World Gas Conference is a global gas conference and exhibition. From June 25-29, 2018, Washington DC, expected to host 12,000 attendees, 500 speakers and 350 exhibitors representing more than 600 companies from 100 countries. Presented by the International Gas Union (IGU) and run since 1931, the World Gas Conference has 85 years of experience of bringing the gas industry together and delivers excellent insight. It creates business and learning opportunities, networking, and promises great return-on investment.https://wgc2018.com/?utm_source=African%20Energy&utm_medium=WB&utm_campaign=African%20Energy%20WB

Date: 25 June 2018 to 29 June 2018       Place: Walter E. Washington Convention Centre Washington DC, USA   Participation fee applies

2nd Africa Oil & Gas Local Content Conference & Exhibition

The 2017 programme has been created around the outcomes and recommendations of the previous, highly successful event, and will focus on the political, strategic technical, legal and financial aspects for increasing and strengthening local content in the hydrocarbon industry.http://ametrade.org/alc/

Date: 14 June 2018 to 16 June 2018      Place: EPIC SANA Luanda Hotel, Luanda, Angola

Statistical Review of World Energy 2018 launch
The highly regarded BP Statistical Review of World Energy provides an objective overview of what happened to energy markets in 2017. The 2018 launch webcast is hosted by Bob Dudley, group chief executive, and Spencer Dale, group chief economist. This will be followed by a question and answer session.http://webcast.bp.com/economics/statsreview/07/registration/

Date: Wednesday 13 June 2018        Time 2.30 – 4pm BST      Place: Online

The Tanzania Petrostate Programme Blog is produced by the joint programme of three institutions: REPOA and the NBSin 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 http://www.tanpetstate.org/ 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  (http://data.tanpetstate.org/where researchers and other users can downloadimportant 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.

Petrostate Blog for the Period of 14 May 2018 to 27 May 2018

Research

Status of Power System Transformation 2018: Summary for Policy Makers
Power plants play a critical role in enhancing system flexibility. Based on a wealth of real-life case studies and data, this report provides a comprehensive overview of how power plants can contribute to making power systems more flexible, while enhancing electricity security. It summarises the findings of the Advanced Power Plant Flexibility (APPF) campaign of the Clean Energy Ministerial (CEM). The solutions presented in this study have been collected in close collaboration with industry stakeholders, including manufacturers, expert consultancies, system operators and plant operators. Continue reading Petrostate Blog for the Period of 14 May 2018 to 27 May 2018

Petrostate Blog for the period 30.04.2018 to 13.05.2018

Research

The Role of Natural Gas, Renewables and Energy Efficiency in Decarbonisation in Germany: The need to complement renewables by decarbonized gas to meet the Paris targets
by Ralf Dickel, Oxford Institute for Energy Studies

As the European region continues to prioritise the decarbonisation of its energy system, Germany provides a fascinating case study of the potential gains and pitfalls from the introduction of renewables into the energy mix, in particular with relation to gas. Continue reading Petrostate Blog for the period 30.04.2018 to 13.05.2018

Petrostate Blog for the period 02.04.2018 to 15.04.2018

Research

Local content in Tanzania: Are local suppliers motivated to improve?

Firms located in developing countries generally encounter difficulties with meeting the challenging standards posed by the oil and gas supply chain. It is against this background that the present study aims to reveal to what extent Tanzanian indigenous firms are ‘motivated’ to compete and close the performance gaps vis-à-vis corporate expectations in the petroleum industry.

Continue reading Petrostate Blog for the period 02.04.2018 to 15.04.2018

PetroStateBlog 19.03 to 01.04.2018

Research

Resource curse and corruption
You can now read our new Working Paper from the petro-state programme titled “Understanding the resource curse: A large-scale experiment on corruption in Tanzania.” We report from a large-scale field experiment in Tanzania that provides causal evidence on how expectations about future natural resource revenues shape expectations about corruption and the willingness to engage in corrupt behavior.

Continue reading PetroStateBlog 19.03 to 01.04.2018

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. Continue reading PetroStateBlog for the period 19.02 to 04.03. 2018

Petrostate Blog for the period 05.02.2018 to 18.02. 2018

Research

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.  Continue reading Petrostate Blog for the period 05.02.2018 to 18.02. 2018

Petrostate Blog for the period 22.01.2018 to 04.02.2018

Natural gas, oil and energy sector:

A briefing by natural Resource Governance Institute (NRGI) uses newly released data on in-kind payments made to governments by oil and gas companies for the right to extract natural resources. The briefing reveals that in-kind payments made to national oil companies (NOCs) in the form of physical oil and gas can account for the majority of the overall payments that these companies make to governments in order to extract resources. While these in-kind payments received by NOCs are large, the Resource Governance Index (RGI) shows that many NOCs in oil-producing countries score poorly in indicators that assess their governance and disclosure practices in relation to the sale of these important state assets of oil and gas.

 

Gas, coal and renewable energy were all in competition last year as the global economy improved. Gas demand rose 3% in the first three quarters of 2017, compared to the same period in 2016, thanks to China and Europe.

Continue reading Petrostate Blog for the period 22.01.2018 to 04.02.2018

Petrostate Blog for the period 08.01.2018 to 25.01.2018

Starting our examination of news of the period in the macroeconomic field, the IMF Executive Board Completed Seventh PSI Review for Tanzania with the main conclusions:

  • Macroeconomic performance under the program has been satisfactory.
  • Most quantitative targets were met, though implementation of structural measures lagged.
  • Authorities should step up budget implementation, particularly in development spending.
  • Macroeconomic policies will need to be closely coordinated.

 

The Citizen however points out that the growth rate put by the IMF differs from the 7% target of the Government. The Government says that Tanzania remains among the top performers in Africa for having a steady growth rate in 2017. The economy is expected to grow by 7.0 per cent and continue to grow on average of 7.4 per cent in the medium term.

Continue reading Petrostate Blog for the period 08.01.2018 to 25.01.2018