Nyakipambo
JF-Expert Member
- Nov 10, 2011
- 435
- 141
| Monday, 08 October 2012 10:05 |
Arusha. Tanzania will be among the oil producers in the world in the future following recent discoveries of huge reserves of natural gas in southeast, officials in the sector said on Friday. "We are already producing gas. Now we have to prepare for petroleum in the future," said deputy minister for Energy and Minerals George Simbachawene. He told reporters that many years of oil exploration back in the 1950s had indicated the hydrocarbon potential in form of oil reserves, especially in areas where natural gas had been discovered or drilled. He said many oil exploration surveys, including deep sea exploration, were going on in various parts of the country with high prospects that petroleum could soon be discovered. "There is no oil so far," he said but with increased exploration activities, it will not be too long before wells in high potential areas are drilled. According to him, currently 18 international oil companies, both small and large-scale, are exploring oil and gas in the country, an exercise he termed as very expensive. The deputy minister's remarks were echoed by the acting director of Exploration, Production and Technical Services with the Tanzania Petroleum Development Corporation (TPDC), Mr Elias Kilembe, who said oil might be found in a few years' time. Besides the deep sea, he said, exploration is currently underway in several lake and river basins, citing Lake Tanganyika and Lake Rukwa, Malagarasi, Rufiji and Ruhuhu rivers and depressions in Kyela, Kilosa and Selous areas. "At the moment we cannot claim any oil discovery but geological surveys over the years have indicated great potential. In fact, the same areas where natural gas is drilled are likely to have petroleum," he explained. The official said as late as 2005, multiple oil seeps had been identified during exploration of petroleum in Tanga and other coastal areas, which indicated "the presence of multiple hydrocarbons". The petroleum exploration database in Tanzania, according to TPDC, consists of a wide range of geological and geochemical studies. Geological and drilling records have been obtained from nearly 100 boreholes and 28 deep wells. Mr Simbachawene explained that the government was keen on putting in place contracts in the oil and gas sector, which would ensure the country did not lose to foreign companies once oil drilling started. "Oil and gas are finite resources. We have to create a win-win situation with multinational firms, which will be involved in actual drilling," he said after closing a training workshop on "Best Practices for Tendering, Negotiating and Drafting Oil and Gas Contracts'. The workshop was attended by experts from local organizations, including the TPDC, the Tanzania Revenue Authority (TRA), the Tanzania Investment Centre (TIC) and the Energy and Water Utilities Regulatory Authority (Ewura). The deputy minister said while the focus during the 1990s was on oil and gas exploration contracts with foreign firms, the government was now more keen on production sharing contracts that would be acceptable to both parties. "We can't have our own (Tanzania) contracts. We've to go for oil and gas contracts which match with the international standards," Mr Simbachawene stressed, while playing down criticisms on some disputed contracts signed with foreign firms in the sector. Tanzania, he said, was still faced with challenges on how to attract foreign direct investments (FDIs) in the oil and gas sector, on one hand, and how the country can optimise the utilisation of its resources for the benefit of its people. Through FDIs the country gets technology know-how, human resource development and capital injection. The government benefits through taxes, foreign earnings and development support. He hinted that a model production sharing agreements the country had embraced in the oil and gas sector was similar to that of Angola and Equatorial Guinea, which obliged foreign firms to utilise local supplies. "We must come up with contracts that will enable the country to get requisite capital, technology and expertise at the same time benefit through taxes, foreign exchange earnings, employment and community development," he explained. |
