facing a fall in global oil prices, with competition from the ‘shale
gas revolution’ in the United States, as well as renewable energy
sources.
by Chatham House and co-sponsored by the Commonwealth Secretariat,
authorities from more than 20 countries met this week to find solutions
to these and other shared challenges.
released, was attended by government ministries and national oil
companies from Belize, Guyana, Kenya, Mauritius, Mozambique, Jamaica,
Seychelles, Trinidad and Tobago, Tanzania, and Uganda, among other
nations.
investment,” commented Michael Mwanda, Chairman of the Tanzania
Petroleum Development Corporation, which hosted the meeting in Dar es
Salaam. “Some projects which were pegged on a high oil price are now
becoming uneconomic and difficult to operate.
reduce costs, operate efficiently and become more competitive,” Mr
Mwanda said.
the Commonwealth Secretariat, remarked: “This price decline has
necessitated a critical look at strategies to manage petroleum
resources, from development programmes to responsible wealth management,
to ensure benefits for future generations.”
over US$100 a barrel in 2014 to around US$60 today – presents immediate
challenges, these can be mitigated through the adoption of flexible
fiscal regimes, increased economic diversification, the development of
good governance regimes and revenue transparency.
realise the potential of their resource wealth as a driver of
sustainable development and economic prosperity,” the Commonwealth
representative said.
established in 2012 to help countries think critically about policy
options available either during the first steps of exploration and
development or when restructuring governance arrangements. Options
include setting up regulatory institutions and drafting regulations and
laws that encourage investment, while balancing the needs of society and
environmental protections.
London and included a final-day national seminar for representatives of
Tanzania’s oil and gas sector. Co-sponsors of the initiative include the
Natural Resource Governance Institute and the Africa Governance
Initiative.
a synthesis of proposals put forward at each discussion group, seek to
guide national authorities to pursue policies which follow good
practices, but which also respond to national contexts.
author of the guidelines, said: “The emergence of shale oil and new
renewable technologies offer opportunities and challenges. How the
emerging producer is affected and will respond is what we have been
debating. One of the main issues is how to adjust to a low price
environment, asking what impact is this going to have on licensing terms
and the ambitions of national oil companies.”
about what has worked elsewhere and what advice to give. More
established producers want to know whether they are doing things right
and what pitfalls they should avoid. This is a really important learning
process.”
attract investment while preserving long-term national interests,
managing expenditure plans as well as ways to guard against abuses and
fraud in contracts and licensing. Training sessions focused on involving
local suppliers in supply chains, the design of fiscal systems and new
information tools.
company of Seychelles, said: “[Petroleum] is a very dynamic business –
there is new technology coming in and new ways of doing things. What
Chatham House is doing with the help of the Commonwealth Secretariat is
getting people together so you have the chance to learn from the
mistakes as well as the successes of others.”
Exploration and Production Department, commented: “Such a forum helps us
a lot as emerging producers. We peer review ourselves, and our people
go home with a lot of advice. One piece of advice I would share is that
you cannot ignore your stakeholders – civil society, academia and
communities where there are operations. They should not be taken for
granted; they should be brought on board and be involved in the
management of the resource.”
Energy Specialists, said: “Oil and gas resources give opportunities to
deepen industrialisaton, providing power and access to better lighting,
heating and cooking facilities as well as petrochemicals and
fertilisers. There are also benefits from developing the services
industry. What strikes me most is that all countries want the same
thing: they want the resource to benefit their citizens.”
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