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Former MP Kigoma Urban
- Mar 2, 2007
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Norways petroleum boss gives tips to TZ | Send to a friend |
Friday, 21 September 2012 07:49 |
digg By Alawi Masare The Citizen Reporter Dar es Salaam. Tanzania should start planning now on how it would benefit from its petroleum resources by putting in place strategies that would be applicable for the next 50 years, a Norwegian expert has advised. The founder and first chief executive of the Norwegian oil and gas company Statoil Mr Arve Johnsen, urged the country to take necessary steps right away instead of waiting until production of oil and gas is in full swing. Sharing the experience of Norway one of the most successful countries in petroleum industry Mr Johnsen said Tanzania should immediately embark on building its peoples capacity. There is also a need for mechanisms to enable the State to participate in the petroleum industry either directly or indirectly by way of concession. In Norway for instance, state participation in petroleum operations was reorganised in 1985 where Statoils interest in many licences was split into two components, one linked to the companys commercial participation and the other becoming part of the states direct financial interest (SDFI) in petroleum operations. That arrangement means that the state itself funds the exploration expenses, investment and operating costs falling to the SDFI, and receives a share of revenues that corresponds to its interest in each production licence. Underscoring the essence of early preparations, Mr Johnsen said: In Norway for example, it took us 20 years from discovery to the start of gas production. You need to start preparing human resources and plan gas transportation pipelines for the 50 years to come, he said. Mr Johnsen also advised the country to form a state-owned petroleum company under the ministry of Energy and Minerals that would supervise gas and oil drilling and transportation. The company, according to him, would comprise petroleum experts and related fields that would not necessarily be part of the ministry. The envoy was invited by the ministry of Energy and Minerals to share experience of Norway in the area of oil and gas exploration ahead of the release of Tanzanias policy draft for public hearing. We want to share experience with him as a person with enough experience from a gas economy country so that we can learn from them, said the deputy minister for Energy and Minerals, Mr Stephen Masele, yesterday. Tanzania has so far discovered 33 trillion cubic feet (tcf) of gas both onshore and offshore, 9 tcf of which were discovered by Statoil, an international energy company operating in 37 countries including Tanzania. The firm, formed in 1972, boasts 40 years of experience in oil and gas production on the Norwegian continental shelf. After the discovery of big oil and gas fields in 1970s, Norwegian authorities moved to ensure the country would have control over its rich offshore resources and established the state company, Statoil, with Mr Johnsen as its CEO. Also established in 1972, the Norwegian Petroleum Directorate was placed along with Statoil in Stavanger making that city Norways oil capital. The countrys parliament adopted the 10 Oil Commandments, -- a set of principles for oil policy which specified that oil operations in the Norwegian Continental Shelf (NCS) should be conducted under government control. Thereafter, the Norwegian oil companies proved good at learning from abroad and quickly became among the best in the world for pursuing offshore operations. Mr Johnsen who professionally is an economist and a lawyer happened to be the state secretary to the minister for industry and he was the only employee when Statoil was established in 1972. One of the biggest challenges Statoil faced was getting the relevant persons to be employed and the risk of loans from banks, said Mr Johnsen. The government of Norway controls key areas such as the vital petroleum sector, through extensive regulation and large-scale state-majority-owned enterprises. The countrys economy is among others, dependent on the petroleum sector, which accounts for the largest portion of export revenue and about 20 per cent of government revenue. Norway is the worlds second-largest gas exporter; and seventh largest oil exporter, making one of its largest offshore oil finds in 2011. The country opted to stay out of the European Union during a referendum in November 1994; nonetheless, as a member of the European Economic Area, it contributes sizeably to the EU budget. In anticipation of eventual declines in oil and gas production, Norway saved state revenue from the petroleum sector in the worlds second largest sovereign wealth fund, valued at over $500 billion in 2011 and uses the funds return to help finance public expenses. Katika mjadala wetu hapa tumesema hivi 'Secondis the reforms of the Tanzania Petroleum Development Corporation (TPDC). As itstands TPDC is now a regulator of upstream (although some argue it is theCommissioner for Energy) and a participant to the ventures with the freecarried interest. It is highly suggested that a National Oil and Gas Company(Petroleum Corporation of Tanzania PETROTAN) be established and activelyparticipate in the sector as an investor with huge stakes. It must behighlighted here that PetroBras, Petronas and StatOil are state companies intheir own countries' Nukuu hii inatoka makala ya mwaka jana. Lakini mzungu kasema. Mzungu kutoka Norway watamsikiliza. Japo kasema jambo ambalo limesemwa kitambo na Watanzania. |