Imagine this was NIGERIA....
Dar es Salaam. Chiefs of Tanzania's leading businesses would not let go yesterday of their desire to have a significant stake in the country's up-coming oil and gas sector.
They have termed as ‘reckless' the move by the government to auction eight oil and gas blocks in the Indian Ocean and Lake Tanganyika without first having a gas policy, which clearly defines participation of locals in the sector.
They protested saying it was unfair to put local private sector on the same terms with giant multinationals in the bidding process for the oil and gas blocks, viewing it as systematically locking out Tanzanians from having a significant share of the resources.
The reaction by the CEO Roundtable came just a day after President Jakaya Kikwete said at an oil and gas conference that the private sector should either participate by buying shares or by bidding privately or as a group.
President Kikwete allayed fears that locals are marginalised in the race to control the resources, saying national interests are adequately covered by the Tanzania Petroleum Development Corporation (TPDC).
He made the remarks shortly before he launched the fourth round of invitation to bidding for eight oil and gas exploration licensing. But the CEO Roundtable, a policy dialogue forum that brings together top bosses of over 70 local leading companies, said they were gravely concerned and dismayed by the government's move to proceed with the block auction in the absence of the key legal instrument.
"The CEOrt firmly believes moving forward with the gas block auction without having a gas policy is a reckless move," said Ms Santina Benson, executive director of the body.
She said the decision will have a ripple effect on the local economy and the lives of Tanzanians for generations to come. The Tanzania Private Sector Foundation (TPSF) has been lobbying for postponement of the auction until a relevant policy has been formulated.
It fears that a similar trend to that in the mining sector, which despite numerous booms, has failed to fully benefit the majority of Tanzanians who only play marginal role in controlling the resources, was unfolding in the oil and gas sector.
However, the dreams were shuttered this week during the Oil and Gas Conference and Exhibition when Energy minister Prof Sospeter Muhongo affirmed that the local private sector would not play a role in the auction but would be represented by TPDC.
Yesterday, Ms Bensons said Tanzania must be willing to learn from countries that have successfully implemented policies which guarantee locals control over the country's natural wealth.
Her views were echoed by CEOrt chairman Ali Mufuruki, who said they strongly feel that the private sector was being marginalised, and called for a deliberate government action to empower them economically.
"The President said local and foreign investors will be treated equally in the gas and oil sector…We cannot have a policy that treats local and foreign investors in this sensitive sector equally," he said.
He cited countries like US, Malaysia, Saudi Arabia, Norway, Brazil and South Africa as significantly benefiting from gas and oil discoveries because locals enjoyed preferential treatment and protection by the laws.
Mr Mufuruki said even TPDC, which the government says will cover interests of the locals in controlling gas and oil resources, did not have the money to drill oil and gas or expertise to do so.
"I don't have problems with the TPDC, which the government says will represent the private sector in the gas block auction, but does it have the money to prospect for oil and gas? They can do so just because the law protects them," he said.
President Jakaya Kikwete on Friday dismissed as "inciting" reports that the government had locked locals out of the sector valued at an estimated $430 billion.
Dar CEOs stick to their guns in gas auction row - National - thecitizen.co.tz