.. Empowering Stakeholders In East African Oil and Gas

New energy legislation introduced in Tanzania




In July 2015, we published an energy briefing on the Tanzania Extractive Industries (Transparency and Accountability) Bill 2015 (the TEI Bill) and the Oil and Gas Revenues Management Bill 2015 (the OGRM Bill). Since then, the Bills have been passed by Parliament and assented to by the President. This month’s briefing will briefly highlight what changes have occurred between the Bills and the Acts and summarise the key issues of these Acts of Parliament.


The Tanzania Extractive Industries (Transparency and Accountability) Act 2015 (TEI 2015) and the Oil and Gas Revenues Management Act 2015 (OGRM 2015) have been enacted to further regulate Tanzania’s booming energy sector. The central new law in the energy sector’s legal framework is undoubtedly the Petroleum Act 2015 (PA 2015), an Act which we have analysed at length in a separate briefing which has also been released last month.

Tanzania Extractive Industries (Transparency and Accountability) Act 2015

What are the key changes between the TEI Bill and TEI 2015?

Extension of the application of TEI  2015

Part 2 of the Preliminary Provisions has been amended so that the Act applies not only to Mainland Tanzania, but also to extractive industry companies undertaking joint petroleum operations or petroleum activities in Tanzania Zanzibar, in specific areas or overlapping blocks in accordance with PA 2015. Where the extractive industry activities are undertaken within Tanzania Zanzibar, the activities shall be governed and administered in accordance with the laws of Tanzania Zanzibar.

Clarification of definitions

The definition of “extractive industry company” has been amended to specifically include both private and state owned companies engaged in exploitation of minerals, oil, natural gas and includes any other company engaged in natural resources extraction.

Composition of the Tanzania Extractive Industries (Transparency and Accountability) Committee (the Committee)

Under the TEI Bill the fifteen members, additional to the Chairman of the Committee, were to be made up of individuals who possess knowledge and experience relating to extractive industries. This has been amended in TEI 2015, so that the members of the committee will be made up of those that possess knowledge and experience in the governance of industries in general.

The TEI Bill contained conflicting terms as to whether the majority of Committee members were to be appointed by the Minister responsible for energy and minerals. TEI 2015 clarifies that the Minister shall only appoint five members to the Committee from members of Government (one of whom shall be the Attorney General or his representative). Of the remaining members: five are to be appointed by extractive industry companies and a further five are to be appointed by civil society organisations.

TEI 2015 expressly states that when appointing members to the Committee, specific regard must be given to gender balance.

Functions and powers of the Committee

The Committee shall require extractive industry companies to disclose to the Committee accurate records of the cost of production, capital expenditures at every stage of investment, volumes of production and export data from extractive industry companies in respect of each licence, rather than every financial year as was the case under the TEI Bill.

The Committee’s functions under section 10 have been expanded to include: (a) promoting the effective citizen participation and awareness of resources governance in extractive industry and its contribution to socio-economic development; and (b) making consultations amongst Government civil society and companies for effective management of natural resources.

Obligation to publish information

Along with the obligations to publish information as outlined by the TEI Bill, TEI 2015 also requires that all information on activities undertaken by an extractive industry company which would be required to be reported or submitted to its local or foreign stock markets shall equally be reported or submitted to the Committee.

Key issues

TEI 2015 provides for the founding of the Tanzania Extractive Industries (Transparency and Accountability) Committee, which shall be an independent government body with oversight responsibilities for promoting and enhancing transparency and accountability. The Committee shall be comprised of no more than sixteen members, with the Chairman appointed by the President. The remaining members will be appointed as described above.

The overarching purpose of the Committee is to ensure that the “benefits of the extractive industry are verified, duly accounted for and prudently utilised for the benefit of the citizens of Tanzania”. In order to achieve this, the Committee shall, amongst other things (including those functions new to TEI 2015 outlined above):

  1. Develop a framework for transparency in the reporting and disclosure by all extractive industry companies on revenues due or paid to the Government
  2. Require from any company an accurate account of the money paid by and received from the company
  3. Require companies to disclose accurate records of the cost of production, capital expenditures at every stage of investment, volumes of production and export data, and
  4. Conduct investigations on material discrepancies between revenue payments and receipts

Every year the Committee will publish a threshold where every company which exceeds it shall be required to reconcile payments made to the Government against receipts held by the Government and provide a report (a Reconciliation Report) detailing this reconciliation to the Committee. Where a Reconciliation Report identifies a material discrepancy, the Committee shall within fourteen working days submit the report to the Controller and the Auditor General, who shall produce an audit report which shall in turn be provided to the Committee. Having received the report from the Controller and the Auditor General, the Committee shall discuss the matter with the Government before following the recommendations of the Controller and the Auditor General.

All companies working in extractive industries shall also be required to provide the Committee with an annual report detailing their corporate social responsibility programmes and also submit to the Committee their capital expenditures at every stage of investment. Failure to do so will be a criminal offence.

Also as part of the transparency regime, the Committee shall require the publication of the following information:

  1. All concessions, contracts and licenses relating to the extractive industries
  2. The names of shareholders who own interests in the extractive industries, and
  3. Reports into the implementation of Environmental Management Plans


Failure to comply with the provisions of TEI 2015 and to fail to provide the Committee with the documents as requested is a criminal offence, with the punishment, upon conviction being either a fine of not less than ten million shillings in the case of an individual, or a fine of not less than one hundred and fifty million shillings in the case of corporate entity.

This is a big point for all companies in the extractive and energy sectors. Will all Production Sharing Agreements and Mineral Development Agreements need to be published for example? How does this sit with the confidentiality provisions in these agreements? We are monitoring the application and enforcement of these provisions.

Amendment of the Mining Act

Finally, TEI 2015 has made numerous amendments to the Mining Act 2010. For a detailed analysis of the amendments made to the Mining Act, please see our specific Mining Act update of November 2015 on the subject.

The Oil and Gas Revenues Management Act 2015

What are the key changes between the OGRM Bill and OGRM 2015?

Extension of the application of OGRM 2015

Under the OGRM Bill, the Act was to apply equally to Mainland Tanzania and Tanzania Zanzibar in relation to management of oil and gas revenues derived from exploration, development and production of oil and gas activities.

As under the OGRM Bill, OGRM 2015 shall apply to Mainland Tanzania and Tanzania Zanzibar respectively. However, OGRM 2015 goes further and states the Act will apply to activities undertaken under joint petroleum operations or petroleum activities in specific areas or overlapping blocks, in accordance with PA 2015. The assumption is that where activities are carried out in these areas, an agreement will be made as to whether the revenues derive from Mainland Tanzania or Tanzania Zanzibar.

Where the extractive industry activities are undertaken within Tanzania Zanzibar, the activities shall be governed and administered in accordance with the laws of Tanzania Zanzibar.


“Additional oil and gas entitlements” which in the OGRM Bill referred to the portion of a contractor’s share of oil and gas produced to which the Government was entitled to a share, had been removed from OGRM 2015.

“Government profit share” has been included in OGRM 2015 as the remaining balance of profit gas or profit oil payable to the government after deducting contractor’s profits of oil or gas.

Key issues

OGRM 2015 provides that taxes and levies shall continue to be assessed, collected and accounted for by the Tanzania Revenue Authority (TRA), whereas non-tax oil and gas revenues shall be collected and accounted for  by the National Oil Company (TPDC) – this includes surface rentals and block fees. The Petroleum Upstream Regulatory Authority (formed under PA 2015) shall be responsible for auditing the cost recovery on the exploration, development, production and sale of oil and gas to determine government profit share and royalties.

Another significant development is the forming of the Oil and Gas Fund (the Fund), whose objectives shall be to ensure that:

  1. Fiscal and macroeconomic stability is maintained
  2. The financing of investment in oil and gas is guaranteed
  3. Social and economic development is enhanced, and
  4. Resources for future generations are safeguarded

The Fund shall receive its capital from Government royalties, Government profit share, the dividends on Government participation in oil and gas operations, corporate income tax on exploration, production and development of oil and gas resources, and the return on investments of the Fund.

The Fund’s strategy shall be decided by the Minister of Finance, advised by a Board consisting of five individuals appointed by the President. Where the Minister of Finance declines to follow the advice of the Board, the matter shall be determined by the President. Management of the Fund shall be in accordance with the statutory fiscal rules, which are:

  1. The financing of the Government budget
  2. The financing of the Fund’s investments
  3. Fiscal stabilisation, and
  4. Saving for future generations

Amongst other reasons, these fiscal rules have been based upon the recognition that it is important to protect the Tanzanian economy against the inherent volatility of oil and gas revenue and the presence of uncertainty over the timing and size of that revenue.

Tanzanian Explorers Club

The Tanzanian Explorers Club (TEC) is for people working in, or affiliated with, Tanzania’s energy industry, specifically the mineral exploration sector. TEC provides an informal environment to facilitate networking and information sharing between key participants of the industry.



Add a Comment
  1. I simply want to say I’m newbie to blogging and honestly savored you’re page. More than likely I’m want to bookmark your blog . You actually come with incredible well written articles. Many thanks for revealing your web page.

  2. It’s rare knowledgeable folks with this topic, however, you sound like do you know what you’re speaking about! Thanks

  3. A person necessarily lend a hand to make significantly posts I would state. This is the first time I frequented your web page and thus far? I amazed with the analysis you made to make this particular post amazing. Wonderful activity!

  4. I’ve been surfing online more than 3 hours lately, but I never found any fascinating article like yours. It is lovely worth sufficient for me. Personally, if all website owners and bloggers made good content as you probably did, the net can be much more useful than ever before.

  5. Usually I don’t read post on blogs, but I would like to say that this write-up very pressured me to check out and do it! Your writing style has been surprised me. Thanks, very nice article.

  6. I’ve learn several just right stuff here. Certainly price bookmarking for revisiting. I wonder how much attempt you put to make the sort of wonderful informative site.

  7. I actually wanted to make a quick note in order to express gratitude to you for those awesome ideas you are writing at this site. My time-consuming internet look up has at the end been rewarded with reputable facts to talk about with my contacts. I would tell you that we visitors actually are rather endowed to live in a fantastic website with many outstanding individuals with insightful pointers. I feel extremely blessed to have encountered your entire website and look forward to tons of more amazing minutes reading here. Thanks a lot again for all the details.

  8. Apple already contains Rhapsody as an app, which is a exceptional get started, yet it is at present hampered through the incapability in the direction of store domestically upon your iPod, and contains a dismal 64kbps bit selling price. If this improvements, then it will relatively negate this advantage for the Zune, still the Ten new music per month will nonetheless be a huge furthermore within Zune Pass’ want.

  9. Palms down, Apple’s application retail store wins as a result of a mile. It is really a massive determination of all forms of applications vs a in its place not happy option of a handful for Zune. Microsoft consists of Designs, specially inside of the realm of game titles, nevertheless I’m not sure I’d will need to bet upon the long run if this function is significant in the direction of your self. The iPod is a substantially greater choice within that circumstance.

  10. Once I initially commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get four emails with the identical comment. Is there any means you may take away me from that service? Thanks!

  11. Hello.This article was extremely fascinating, especially since I was browsing for thoughts on this matter last week.

  12. Great goods from you, man. I’ve understand your stuff previous to and you are just too magnificent. I really like what you’ve acquired here, certainly like what you are saying and the way in which you say it. You make it enjoyable and you still care for to keep it wise. I can not wait to read much more from you. This is actually a tremendous site.

  13. What i do not understood is in fact how you are not actually much more well-liked than you may be now. You’re very intelligent. You already know therefore significantly with regards to this topic, made me personally consider it from so many varied angles. Its like men and women don’t seem to be fascinated except it is something to accomplish with Lady gaga! Your personal stuffs excellent. All the time take care of it up!

  14. Hi there! I’m at work surfing around your blog from my new iphone 4! Just wanted to say I love reading your blog and look forward to all your posts! Carry on the superb work!

  15. I am extremely impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you customize it yourself? Anyway keep up the excellent quality writing, it’s rare to see a great blog like this one these days..

  16. My brother suggested I might like this website. He was entirely right. This post truly made my day. You cann’t imagine just how much time I had spent for this information! Thanks!

  17. My wife and i got very relieved Michael managed to carry out his survey by way of the precious recommendations he received from your very own blog. It is now and again perplexing just to always be making a gift of tricks that many many others might have been making money from. So we realize we’ve got the writer to appreciate for this. All of the illustrations you have made, the simple blog navigation, the friendships your site help to engender – it is most spectacular, and it’s helping our son and us imagine that this concept is fun, and that is pretty indispensable. Thanks for the whole thing!

  18. If you are still upon the fence: grab your preferred earphones, brain down in direction of a Least complicated Order and check with to plug them into a Zune then an iPod and check out which one particular appears improved in direction of on your own, and which interface makes your self smile much more. Then you can expect to recognize which is immediately for on your own.

  19. The Zune concentrates on becoming a Portable Media Player. Not a world-wide-web browser. Not a video game machine. Possibly inside of the long run it’s going to do even much better inside all those areas, yet for presently it truly is a Good path toward set up and listen to your tunes and motion pictures, and is with no peer within that regard. The iPod’s rewards are its net browsing and apps. If those people stable excess persuasive, probably it is your best selection.

  20. Hi there, You have done an incredible job. I’ll definitely digg it and personally suggest to my friends. I’m confident they will be benefited from this website.

  21. I haven¡¦t checked in here for some time as I thought it was getting boring, but the last several posts are great quality so I guess I will add you back to my daily bloglist. You deserve it my friend 🙂

  22. I’m still learning from you, as I’m trying to achieve my goals. I definitely love reading everything that is posted on your site.Keep the aarticles coming. I liked it!

  23. Sorry for the significant evaluate, nevertheless I am actually loving the clean Zune, and count on this, as perfectly as the high quality opinions some other Those people incorporate published, will aid your self decide if it is the instantly conclusion for you.

  24. Zune and iPod: Utmost humans compare the Zune in the direction of the Touch, yet following looking at how skinny and incredibly reduced and light-weight it is, I take into consideration it in the direction of be a instead exclusive hybrid that brings together attributes of either the Touch and the Nano. It really is very colourful and lovely OLED show is slightly smaller than the contact screen, but the participant by itself feels fairly a little bit lesser and lighter. It weighs relating to 2/3 as a lot, and is considerably lesser inside width and height, while becoming exactly a hair thicker.

  25. Thanks for posting this awesome article. I’m a long time reader but I’ve never been compelled to leave a comment. I subscribed to your blog and shared this on my Twitter. Thanks again for a great post!

  26. Thanks for publishing this awesome article. I’m a long time reader but I’ve never been compelled to leave a comment. I subscribed to your blog and shared this on my Facebook. Thanks again for a great article!

  27. This is turning into a little bit even further subjective, nevertheless I much favor the Zune Market place. The interface is vibrant, is made up of additional aptitude, and some cool attributes including ‘Mixview’ that permit by yourself instantly see identical albums, new music, or other end users comparable toward what you might be listening towards. Clicking on one of those will heart on that products, and a further set of “neighbors” will occur into impression, allowing for by yourself toward navigate near studying by comparable artists, tunes, or consumers. Chatting of people, the Zune “Social” is in addition outstanding entertaining, enabling your self discover other people with shared preferences and getting to be mates with them. Yourself then can pay attention toward a playlist crafted centered on an amalgamation of what all your close friends are listening to, which is too exciting. People nervous with privacy will be relieved in direction of comprehend oneself can protect against the public versus watching your individual listening patterns if yourself so decide on.

Leave a Reply

Your email address will not be published.

Time limit is exhausted. Please reload CAPTCHA.

Tanzania Petroleum © 2016-2017.