sikiolakufa
JF-Expert Member
- Feb 1, 2010
- 411
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Wakuu salama? nimetoka kifungoni naona mods wase.. walinifunga ila nimekutana na hii article huko Norway ni vizuri kuijadili hapa.
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Norad advises Tanzania on oil, keeps Statoil at arms length (From Norwegian magazine Development Today).
Tanzania is on the brink of becoming an oil and gas nation. As it seeks Norwegian assistance in designing legal and policy frameworks to handle this new wealth, Statoil is set to reap the benefits from two historic offshore finds.
While donors in Dar es Salaam are lining up to help Tanzania revamp its oil sector, the government is insisting on having Norway do the job. Eager to help, Norway is moving slowly, extremely wary of blurring the lines between an aid programme aimed at hiking Tanzanias future oil and gas revenues and Norwegian commercial interests.
Earlier this year, the state-owned Norwegian oil company Statoil made its first huge gas find off the Tanzanian coast.
CLEAR LINES
In the light of Statoils find, integrity guidelines have been sharpened. Representatives of the prestigious Norwegian Oil for Development Programme go out of their way to keep the Norwegian oil company at a distance.
They skip dinners at the embassy in Dar when Statoil representatives are participating. And when oil delegations from Tanzania visit Norway they avoid being involved in organising visits to Statoil. That has to be handled by someone else.
Sometimes it feels a bit artificial, but we consider it important not to blur the lines and maintain the integrity of the programme, Assistant Director of the Oil for Development Programme Petter Stigset tells Development Today.
We have a very clear mandate, which is to assist Tanzania. Our aim is to help them find solutions that are as good as possible for the country.
Oil for Development, an aid-financed programme operating in 22 countries, is located within the aid agency Norad. According to a recent memo sent to all embassies, Norads involvement will be intensified. The agency will now coordinate and quality-check all aid-funded oil assistance, independent of which budget line funds the project.
The tightening of the guidelines comes in response to the fact that Tanzania is about to become an oil and gas nation. Aid cooperation has a long history, but now huge Norwegian commercial interests must also be carefully considered.
A year and a half ago, Tanzania requested Norwegian technical support to develop its oil sector. An agreement over four years through the Oil for Development Programme worth NOK 27 million is about to start. It will cover themes like policy development, legal framework, environmental issues, security, management of data and training.
Such advice could in theory play directly into Statoils interests. The Norwegian Ministry of Petroleum and Energy owns 67 per cent of Statoil, which gained its experience from the prosperous oil and gas production off the Norwegian coast 40 years ago. Oil and gas have made Norway one of the richest countries in the world and Statoil has been a key tool.
STATOILS HISTORIC FIND
In February, the company announced a historic gas find in the first well it drilled in Block 2 off the coast of Tanzania. A second find was announced in June. Statoil has a 65 per cent stake in the block, which it operates on behalf of the Tanzania Petroleum Development Corporation (TPDC).
If successful the find could turn the economic relations between Norway and Tanzania upsidedown. From being the largest recipient of Norwegian aid during the last half century, Tanzania might very well become a net exporter of capital to Norway.
For Oil for Development, these finds represented a game changer. Concerned about the risk that conflicts of interest could arise, the secretariat of the programme wrote to Norads Director Villa Kulild, pointing to the Norwegian embassys double role as promoter of Norwegian commercial interests and manager of Oil for Development.
We recognise that Statoils international competitors could link Statoils presence as operator in the country and the Oil for Development Programme, the secretariats letter states.
Then Development Minister Erik Solheim called for a meeting at his office in mid-March. The Embassy in Dar participated by phone, while Kulild was present in the room. On the agenda was the dilemma that the secretariat of Oil for Development had identified: how to increase support without creating a conflict of interest and possible negative consequences for Statoil.
NORADS OPINION
Documents obtained by Development Today show that Kulild warned strongly against Oil for Development getting involved in Production Sharing Agreements. These are contracts signed between a government and oil companies that set the terms for future revenue sharing.
Solheim asked for Norads further analysis. The aid agency presented a memo in April that outlined Statoil and Oil for Developments differing goals.
Statoils is to maximise the companys values on behalf of the owner (the Norwegian Ministry of Petroleum and Energy), while Oil for Developments is to ensure the highest possible revenues for Tanzania.
Norad writes that there should be no links between the Norwegian private sector and Oil for Development. This needs to be clarified in order to avoid any confusion of roles. Some activities might have to be removed from the programme, and the embassy should avoid having the same person handling both Oil for Development and Statoil.
Ultimately, it is the responsibility of the leadership in the two Norwegian ministries oil and foreign affairs - to ensure necessary integrity and clarity in handling the different roles.
Norad warns explicitly that unclear roles could create a bad reputation for Norway which, if there is a change of regime in Tanzania, could be used against either Statoil or the Oil for Development. Such eventualities can only be countered by full openness about the programme and Statoils role in Tanzania, Norad says.
The situation is made more complicated by the fact that both the Foreign Ministry and the Petroleum Ministry promote Norwegian commercial interests abroad. At the same time they both act as counterparts in the Oil for Development Programme in Tanzania, though day-to-day activities are handled by Norad and the Norwegian Petroleum Directorate.
THE NORWEGIAN MODEL
The Norwegian way of managing its oil sector has been hailed as a role model for other nations. Indeed, Norway has been able put away hundreds of billions of dollars in reserves from oil revenues.
Still, for foreign observers it might be hard at first glance to understand how the model works with the Petroleum Ministry serving many functions simultaneously: as owner of Statoil, regulator of the oil sector in Norway and, in this context, as counterpart for signing the agreement with for the Energy Ministry in Tanzania for implementation of the Oil for Development Programme. This agreement has not yet been signed.
On April 27, the Foreign Ministry had a meeting with Statoil to hear the companys perspectives. Oil for Development staff did not participate at this meeting again, to avoid confusion about the different roles, Tore Nedrebø, coordinator of the Oil for Development Programme at the Foreign Ministry, tells Development Today.
At the meeting, Statoil told the ministry that they think it is fine that Oil for Development provides impartial advice to Tanzania, according to Nedrebø.
Bård Glad Pedersen, press spokesperson at Statoil tells Development Today that the company wants an orderly and clear system when they operate in Tanzania and other countries in Africa.
Statoil is a listed company and all our activities are carried out on pure commercial terms. We must win business opportunities in Tanzania and other place in tough competition, he says to DT.
In Tanzania, Statoil is an operator on behalf of the Tanzanian oil corporation, TPDC. Documents show that in early June TPDC requested technical support from Norway. They needed economic and legal assistance for a third party assessment of changes in their Model Production Sharing Agreements. In the opinion of the Norwegian Petroleum Directorate, there was no conflict of interest.
HASTY PROCESS
But engaging in Production Sharing Agreements is exactly what Norad director Kulid had warned against. Moreover, the Foreign Ministry had decided that all requests about support to the oil sector should be sent to Norad for consideration and quality checking.
This instruction reached the embassy in Dar es Salaam in late June. For the Tanzania case, it was too late.
On June 15, a few days before the instruction arrived, the embassy went ahead and engaged the consultant Econ Pöyry and the law firm Arntzen de Besche to advise TPDC on Production Sharing Agreements.
The process was rushed because Tanzania was in a hurry to revise the >>> >>> agreements before new areas are opened for oil and gas exploration in time for a bidding round this fall. Statoil is among the potential bidders in the coming round.
Since the agreement on the Norwegian support through Oil for Development Programme had not yet been signed, the embassy decided to fund the contracts from another budget line.
Petter Stigset at the Oil for Development secretariat at Norad sent a strongly-worded email to the embassy asking for a clarification in late June. Today he says they are satisfied with the job done by Econ Pöyry and Arntzen de Besche.
We have looked into the results and have found we can stand behind their proposals. They appear to be 100 per cent to the advantage of Tanzania, he says.
THE HIGHEST POLITICAL LEVEL
Tanzania does not seem to be very concerned about Norways double role in the oil and gas sector.
Ambassador Ingunn Klepsvik writes home in an e-mail that Tanzania expects that Norway will assist in revising Production Sharing Agreements based on agreements already signed. If Norway cannot do this, Tanzanian authorities have to be informed so they can approach other donors, Klepsvik writes.
According to the embassy, both private firms and other donors, including the World Bank, are ready to take on the role of advisor to Tanzania in the oil sector.
In her note to Oslo, Klepsvik writes that Tanzania emphasises from the highest political level again and again that Norway is the preferred cooperation partner in this field.
Author: Bjørn H Amland
========
Norad advises Tanzania on oil, keeps Statoil at arms length (From Norwegian magazine Development Today).
Tanzania is on the brink of becoming an oil and gas nation. As it seeks Norwegian assistance in designing legal and policy frameworks to handle this new wealth, Statoil is set to reap the benefits from two historic offshore finds.
The drillship Ocean Rig Poseidon and support vessels at Zafarani exploration well off Tanzania. Photo: Statoil / Heine Melkevik |
While donors in Dar es Salaam are lining up to help Tanzania revamp its oil sector, the government is insisting on having Norway do the job. Eager to help, Norway is moving slowly, extremely wary of blurring the lines between an aid programme aimed at hiking Tanzanias future oil and gas revenues and Norwegian commercial interests.
Earlier this year, the state-owned Norwegian oil company Statoil made its first huge gas find off the Tanzanian coast.
CLEAR LINES
In the light of Statoils find, integrity guidelines have been sharpened. Representatives of the prestigious Norwegian Oil for Development Programme go out of their way to keep the Norwegian oil company at a distance.
They skip dinners at the embassy in Dar when Statoil representatives are participating. And when oil delegations from Tanzania visit Norway they avoid being involved in organising visits to Statoil. That has to be handled by someone else.
Sometimes it feels a bit artificial, but we consider it important not to blur the lines and maintain the integrity of the programme, Assistant Director of the Oil for Development Programme Petter Stigset tells Development Today.
We have a very clear mandate, which is to assist Tanzania. Our aim is to help them find solutions that are as good as possible for the country.
Oil for Development, an aid-financed programme operating in 22 countries, is located within the aid agency Norad. According to a recent memo sent to all embassies, Norads involvement will be intensified. The agency will now coordinate and quality-check all aid-funded oil assistance, independent of which budget line funds the project.
The tightening of the guidelines comes in response to the fact that Tanzania is about to become an oil and gas nation. Aid cooperation has a long history, but now huge Norwegian commercial interests must also be carefully considered.
A year and a half ago, Tanzania requested Norwegian technical support to develop its oil sector. An agreement over four years through the Oil for Development Programme worth NOK 27 million is about to start. It will cover themes like policy development, legal framework, environmental issues, security, management of data and training.
Such advice could in theory play directly into Statoils interests. The Norwegian Ministry of Petroleum and Energy owns 67 per cent of Statoil, which gained its experience from the prosperous oil and gas production off the Norwegian coast 40 years ago. Oil and gas have made Norway one of the richest countries in the world and Statoil has been a key tool.
STATOILS HISTORIC FIND
In February, the company announced a historic gas find in the first well it drilled in Block 2 off the coast of Tanzania. A second find was announced in June. Statoil has a 65 per cent stake in the block, which it operates on behalf of the Tanzania Petroleum Development Corporation (TPDC).
If successful the find could turn the economic relations between Norway and Tanzania upsidedown. From being the largest recipient of Norwegian aid during the last half century, Tanzania might very well become a net exporter of capital to Norway.
For Oil for Development, these finds represented a game changer. Concerned about the risk that conflicts of interest could arise, the secretariat of the programme wrote to Norads Director Villa Kulild, pointing to the Norwegian embassys double role as promoter of Norwegian commercial interests and manager of Oil for Development.
We recognise that Statoils international competitors could link Statoils presence as operator in the country and the Oil for Development Programme, the secretariats letter states.
Then Development Minister Erik Solheim called for a meeting at his office in mid-March. The Embassy in Dar participated by phone, while Kulild was present in the room. On the agenda was the dilemma that the secretariat of Oil for Development had identified: how to increase support without creating a conflict of interest and possible negative consequences for Statoil.
NORADS OPINION
Documents obtained by Development Today show that Kulild warned strongly against Oil for Development getting involved in Production Sharing Agreements. These are contracts signed between a government and oil companies that set the terms for future revenue sharing.
Solheim asked for Norads further analysis. The aid agency presented a memo in April that outlined Statoil and Oil for Developments differing goals.
Statoils is to maximise the companys values on behalf of the owner (the Norwegian Ministry of Petroleum and Energy), while Oil for Developments is to ensure the highest possible revenues for Tanzania.
Norad writes that there should be no links between the Norwegian private sector and Oil for Development. This needs to be clarified in order to avoid any confusion of roles. Some activities might have to be removed from the programme, and the embassy should avoid having the same person handling both Oil for Development and Statoil.
Ultimately, it is the responsibility of the leadership in the two Norwegian ministries oil and foreign affairs - to ensure necessary integrity and clarity in handling the different roles.
Norad warns explicitly that unclear roles could create a bad reputation for Norway which, if there is a change of regime in Tanzania, could be used against either Statoil or the Oil for Development. Such eventualities can only be countered by full openness about the programme and Statoils role in Tanzania, Norad says.
The situation is made more complicated by the fact that both the Foreign Ministry and the Petroleum Ministry promote Norwegian commercial interests abroad. At the same time they both act as counterparts in the Oil for Development Programme in Tanzania, though day-to-day activities are handled by Norad and the Norwegian Petroleum Directorate.
THE NORWEGIAN MODEL
The Norwegian way of managing its oil sector has been hailed as a role model for other nations. Indeed, Norway has been able put away hundreds of billions of dollars in reserves from oil revenues.
Still, for foreign observers it might be hard at first glance to understand how the model works with the Petroleum Ministry serving many functions simultaneously: as owner of Statoil, regulator of the oil sector in Norway and, in this context, as counterpart for signing the agreement with for the Energy Ministry in Tanzania for implementation of the Oil for Development Programme. This agreement has not yet been signed.
On April 27, the Foreign Ministry had a meeting with Statoil to hear the companys perspectives. Oil for Development staff did not participate at this meeting again, to avoid confusion about the different roles, Tore Nedrebø, coordinator of the Oil for Development Programme at the Foreign Ministry, tells Development Today.
At the meeting, Statoil told the ministry that they think it is fine that Oil for Development provides impartial advice to Tanzania, according to Nedrebø.
Bård Glad Pedersen, press spokesperson at Statoil tells Development Today that the company wants an orderly and clear system when they operate in Tanzania and other countries in Africa.
Statoil is a listed company and all our activities are carried out on pure commercial terms. We must win business opportunities in Tanzania and other place in tough competition, he says to DT.
In Tanzania, Statoil is an operator on behalf of the Tanzanian oil corporation, TPDC. Documents show that in early June TPDC requested technical support from Norway. They needed economic and legal assistance for a third party assessment of changes in their Model Production Sharing Agreements. In the opinion of the Norwegian Petroleum Directorate, there was no conflict of interest.
HASTY PROCESS
But engaging in Production Sharing Agreements is exactly what Norad director Kulid had warned against. Moreover, the Foreign Ministry had decided that all requests about support to the oil sector should be sent to Norad for consideration and quality checking.
This instruction reached the embassy in Dar es Salaam in late June. For the Tanzania case, it was too late.
On June 15, a few days before the instruction arrived, the embassy went ahead and engaged the consultant Econ Pöyry and the law firm Arntzen de Besche to advise TPDC on Production Sharing Agreements.
The process was rushed because Tanzania was in a hurry to revise the >>> >>> agreements before new areas are opened for oil and gas exploration in time for a bidding round this fall. Statoil is among the potential bidders in the coming round.
Since the agreement on the Norwegian support through Oil for Development Programme had not yet been signed, the embassy decided to fund the contracts from another budget line.
Petter Stigset at the Oil for Development secretariat at Norad sent a strongly-worded email to the embassy asking for a clarification in late June. Today he says they are satisfied with the job done by Econ Pöyry and Arntzen de Besche.
We have looked into the results and have found we can stand behind their proposals. They appear to be 100 per cent to the advantage of Tanzania, he says.
THE HIGHEST POLITICAL LEVEL
Tanzania does not seem to be very concerned about Norways double role in the oil and gas sector.
Ambassador Ingunn Klepsvik writes home in an e-mail that Tanzania expects that Norway will assist in revising Production Sharing Agreements based on agreements already signed. If Norway cannot do this, Tanzanian authorities have to be informed so they can approach other donors, Klepsvik writes.
According to the embassy, both private firms and other donors, including the World Bank, are ready to take on the role of advisor to Tanzania in the oil sector.
In her note to Oslo, Klepsvik writes that Tanzania emphasises from the highest political level again and again that Norway is the preferred cooperation partner in this field.
Author: Bjørn H Amland