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- Aug 2, 2010
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Wed, Jul 11th, 2012
Tanzania |
The decision by Orca Exploration to declare in public about talks with the Government Negotiating Team (GNT) over changes to a Production Sharing Agreement (PSA) relating to Songo Songo gas production is a sign that the company is feeling the heat from local negotiators.
"Our team of negotiators is doing a very good job to ensure that the country benefits more from its gas resources," Mr Maswi said, pointing out that the GNT is carefully arguing its case to convince Orca to agree to change some provisions in the PSA signed by Tanzania Petroleum Development Corporation (TPDC) in 2001.
"I have a scheduled meeting with the company's chief executive this afternoon and will give more details later," Maswi, who took over from former Permanent Secretary David Jairo said.
Among other things, the government is seeking TPDC's more controlling rights, better profit sharing arrangements, the divestment of the downstream assets, cost recovery and share Orca's management of the upstream operations.
"Orca has been and will continue to discuss these matters in good faith with the GNT, but reserves its right to vigorously defend its position in accordance with Tanzanian and International law should no satisfactory agreement be reached," the company said in a statement posted on its website.
The government is also seeking TPDC's involvement in direct investment in gas projects by contributing 20 per cent of the costs of future new wells in return for a 20 per cent increase in profit sharing emanating from such investments.
The changes being demanded by the government are a result of a number of issues raised by the Parliamentary Committee for Energy and Minerals against a flawed arrangement of the PSA in 2010.TPDC Director General Yona Kilagane said through his assistant that Orca is disclosing details of issues still under negotiations.
"TPDC is part of the GNT and has nothing to say as negotiations proceed. It's unfortunate that the company has made a public statement while negotiations are still in progress," Mr Kilagane's assistant who preferred not to be identified told ‘Daily News' last Monday.
The British Virgin islands based company also said it has suspended the drilling of its SS-12 well partly because of the ongoing talks with GNT and plans to resume work after concluding the negotiations.
By FINNIGAN WA SIMBEYE, Tanzania Daily News
Tanzania |
The decision by Orca Exploration to declare in public about talks with the Government Negotiating Team (GNT) over changes to a Production Sharing Agreement (PSA) relating to Songo Songo gas production is a sign that the company is feeling the heat from local negotiators.
The Permanent Secretary in the Ministry of Energy and Minerals, Eliakim Maswi, told the ‘Daily News' on Tuesday that it is unfortunate that Orca, which trades locally as Pan African Energy TanzaniaLimited, is making public statements threatening to take legal action while negotiations are still in progress."Our team of negotiators is doing a very good job to ensure that the country benefits more from its gas resources," Mr Maswi said, pointing out that the GNT is carefully arguing its case to convince Orca to agree to change some provisions in the PSA signed by Tanzania Petroleum Development Corporation (TPDC) in 2001.
"I have a scheduled meeting with the company's chief executive this afternoon and will give more details later," Maswi, who took over from former Permanent Secretary David Jairo said.
Among other things, the government is seeking TPDC's more controlling rights, better profit sharing arrangements, the divestment of the downstream assets, cost recovery and share Orca's management of the upstream operations.
"Orca has been and will continue to discuss these matters in good faith with the GNT, but reserves its right to vigorously defend its position in accordance with Tanzanian and International law should no satisfactory agreement be reached," the company said in a statement posted on its website.
The government is also seeking TPDC's involvement in direct investment in gas projects by contributing 20 per cent of the costs of future new wells in return for a 20 per cent increase in profit sharing emanating from such investments.
The changes being demanded by the government are a result of a number of issues raised by the Parliamentary Committee for Energy and Minerals against a flawed arrangement of the PSA in 2010.TPDC Director General Yona Kilagane said through his assistant that Orca is disclosing details of issues still under negotiations.
"TPDC is part of the GNT and has nothing to say as negotiations proceed. It's unfortunate that the company has made a public statement while negotiations are still in progress," Mr Kilagane's assistant who preferred not to be identified told ‘Daily News' last Monday.
The British Virgin islands based company also said it has suspended the drilling of its SS-12 well partly because of the ongoing talks with GNT and plans to resume work after concluding the negotiations.
By FINNIGAN WA SIMBEYE, Tanzania Daily News
