Challenge: Can state afford a national petroleum company that is an Operator?


In emerging oil and gas producer country like Tanzania interest in promoting national participation is growing dramatically

But  the two key questions are

  1. Whether and when it  is appropriate to create National Oil Company (NOC )  ?and
  2. What the role the  of National Oil Company  should have?

Although the decision of creating National Oil Company  (NOC) vary from one country to another.

.Some argue that creating  National Oil Company  early in the process helps build capacity and sector-specific knowledge that proves very useful if and when discoveries are made later. Others argue that the creation of National Oil Company simply diverts scarce government

resources. In many cases, the decision to create an NOC in oil hotspots is largely motivated by national political aspirations.

You can also read:how to win the trust of citizens in tanzania oil and gas sector

But  we can learn  from  Country like Norway where by the building of statoil’s operator capacity was due to ambition, dedication and stamina by company and its owner, also , coopearation and competition    have been key in developing Statoil’s operator capacity.

Hussein Boffu runs a consultancy helping entrepreneurs achieve their goals through business planning and consultancy support. Would you like to reach out to him? Contact him via email at or by calling, texting, or WhatsApp at +255(0)655376543.

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