- Oct 12, 2012
Tuko mikononi mwa shetani!Tanzania has suspended talks between the government and foreign investors in the oil and gas sector that would have set the tone for the review of Production Sharing Agreements (PSAs). The suspension is blamed on delays by the Attorney General’s chambers.
In 2018, the government ordered the review of laws and policy, putting the liquefied natural gas (LNG) project sector on hold.
The $30 billion LNG project has been in the planning for the past five years. Construction is set to start in 2022. The plant is expected to add 10 per cent gas to Tanzania’s domestic use.
Speaking to The EastAfrican, Felix Nanguka, Tanzania Petroleum Development Corporation (TPDC) LNG project manager said, “Negotiations have been temporarily suspended to allow for the PSA on gas review. There was overlapping between issues that were negotiated in the existing contracts.
“Since all gas existing contracts need to be reviewed, the government decided to suspend negotiations for a little while to allow for smooth co-ordination between PSA review and negotiations,” he said.
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