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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.

Background

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

Read:4-facts-every-Tanzanian-sholud-know-about-gas-industry

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.

Definitions

“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.

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Are you looking for a career in Tanzania Oil and natural gas industry? Do you have the interest to invest in Tanzania oil and natural gas industry?
The article meets all the questions above.

Many people are interesting to enter the oil and gas industry whether through investing or for jobs. Yet the majority of them don’t know where to begin.

No matter you are trying to find jobs or investment opportunities the article explores the most effective way to join into Tanzania oil and natural gas industry.
Let’s face them
Widen your network
Is the simple but effective tips that would allow you to join the oil and gas industry and this tips will not only help you for a short time but for the rest of your career.

You should widen your network simply by attending oil and gas conferences and exhibition.In conferences, you have not only have an opportunity to learn from the best of the best of the oil and gas industry but you have a chance to meet with some heroes of the industry and establish a long relationship with the experts who have proven themselves in the field.

The more people you know in the oil and gas industry the more you uncover hidden oil and gas jobs and investment opportunities in the industry as

To make this process into fruition, Tanzania Mines, Gas/ energy and Oil forum,together with its online media, Tanzaniapetroleum.com are about conduct major education and

investment conference and exibition which commence in August 2015.

This is the opportunity for you to learn about oil and gas business and create long relationship from proper petroleum specialists as the talkers over the world from most respectable organizations will be gathering and share their experience and professional expertise concerning natural resources in the events.

Resolve to attend at least one  oil and conference a yea, you never know where new opportunity and idea will come from.

 

 

 

Canada and Tanzania have started conducting preliminary exploration of oil and gas in the Rift Valley north of the country.

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(The guardian)The development was made public earlier this week by the Tanzania Petroleum Development Corporation (TPDC) Managing Director, Dr James Mataragio when he was introducing the project partner Canada based C-GGSU to stakeholders.
 C-GGSU started the USD14million exploration and has already done similar studies in Asian countries and the United States of America.
The TPDC official said that the area of study is a 23-km long belt of the Rift Valley on the Tanzanian side.
The study will involve blocks located in the natural alkaline soda lakes which are in the series of the East Africa Rift Valley lakes, located in Northern Tanzania such as Lake Eyasi, Manyara and Lake Natron.
“All these are lakes that fall within the East African Great Rift valley, which have the characteristics of having oil as Uganda’s lake Albert and Kenya’s Turkana,” he explained.
He said the study is to get information on the availability of oil and gas and after this study, other more detailed studies will be carried-out for similar purposes.
“Under this study, a well-equipped aircraft will be deployed to collect the required information. This will be flying at an altitude of between 80 metres and 100 metres above the sea level, with the speed of 220km/hour,” he said to which the C-CGG project manager, Brett Robson intoned that in the earlier stages, six experts and two pilots will be involved.

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Do you very interested to know numerous things  that Tanzanians who work  in oil and gas companies have in general?

You are about to learn excellent stuff.

Okay, let’s go..!

1: They love what they do
When you talk with Tanzanians who are working in oil and gas companies, they like to talk much concerning their jobs, memorable trips and challenges they face,

What does this imply?
The logic here is very   simple: If they like to talk much about their works this  means   they enjoy their jobs,
You can’t   talk much about the job you hate.

2: They graduate with neither petroleum courses

Most of Tanzania oil and gas workers they don’t have college courses related to oil and gas industry   like petroleum engineering, petroleum geosciences reservoir engineering   petroleum account etc:
They just join petroleum industry with other courses like chemical engineering,  Telecommunication engineering,   Mechanical engineering information technology etc.

3: Have  good academic history
Most of them they have great grades, As you know    many oil and gas   attract  best college students, So, most of them they finished with great grades.

You can also like to read:3 surprising Benefits,and disadvantages of working-in-oil-and gas industry

4: They are enthusiastic to assist others

Most of Tanzania oil and gas workers are ready to assist young and adult professionals who are very eager to know about different issues related to oil and gas industry. They are willing to share knowledge concerning this industry.

5: Strong oral and written communication

I  always talk to Tanzania oil and gas workers or when we do some projects collectively, I surprised with  the way they perform tasks,  they able to communicate well with others  and they have good writing skills.

Final Words
All of the above can be summarized   through the next words, Tanzania oil and gas workers are very smart.

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India is reportedly seeking close cooperation with countries in Africa, home to some of the large resources, to meet its energy and downstream industries’ requirements.

To explore opportunities in the sector, Dharmendra Pradhan, Minister of State, Petroleum and Natural Gas, along with senior officials of MoPNG and senior executives of public sector oil & gas companies, met government representatives of African countries such as Nigeria, Ghana, Angola, Tanzania, Mozambique, South Sudan, Algeria and Gabon during the 3rd India Africa Forum Summit.

According to MoPNG officials, India is keen to intensify its hydrocarbon cooperation with the African countries in upstream, midstream and downstream areas. Pradhan stressed upon the potential to graduate to an energy partnership between India and the African nations.

In an another event, Pradhan had accompanied Prime Minister Narendra Modi in his bilateral meetings with African countries such as Nigeria, Sudan, South Sudan, Gabon, Mozambique, Tanzania and Angola.

It may be noted that India imports about 33 million metric tonne (MMT) crude oil from Africa, which constitutes 18 percent of the country’s total crude import.

Indian public sector oil and gas companies have invested about $ 8 billion in oil & gas assets in Mozambique, Sudan and South Sudan. Engineers India Ltd (EIL) has been associated with refining sector in several countries as well.

To further give a push to cooperation in oil and gas sector, the government has decided to organise the 4th India-Africa hydrocarbon conference on January 21-22, 2016 in New Delhi.

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Octant Energy Corp. (TSX VENTURE:OEL) (the “Corporation” or “Octant”) announces that it has entered into three agreements with subsidiary companies of Afren PLC to acquire assets in the Republic of Kenya and the United Republic of Tanzania (the “Proposed Transaction”).
The assets include Kenya Block L17/L18, Kenya Block 1, and in Tanzania, the Tanga Block.
The acquisition is important in the development of these assets for the region as it ensures that a team with extensive regional knowledge progresses the respective Production Sharing Contracts forward and raising the profile of the region through the continued delivery of near term actionable items on these assets.
The Octant team is lead by Richard Schmitt, President & CEO, and Christopher McLean, Executive Chairman. Both men have a long term history in the region with experiences going back to the initial acquisition and finance of the current discoveries in Kenya and select assets in Tanzania over the last 7-10 years.

Richard Schmitt, President and CEO of Octant says, “I am encouraged to be working with assets I know well from my past experiences.

This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further movement towards energy security and domestic growth in the countries. For me, being a part of East African growth and development again is a great opportunity and privilege.”

The acquisition of the PSC’s’ by Octant remains conditional on customary approvals from the respective governments. Once approval is received Octant will complete the acquisition of the PSC’s from Afren within 7 days.

At this time Octant is evaluating its future capital requirements with respect to these PSC’ and will provide future updates with respect the Proposed Transaction in due course.

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This follows the success of last year’s event which saw over 2,300 participants from 380 companies gain invaluable insight into the projects and latest opportunities in the region.

EAOGS is endorsed by the Ministry of Energy and Petroleum, Kenya and attracts a senior level audience of international and regional companies, ministries, NOCs, IOCS, service companies, leading consulting and contracting companies, financial and legal institutions and government authorities.
Read:Time is now to invest in-oil and-gas sector

Following the success of licensing rounds, the advancement of the crucial port and refinery developments and all the pipeline issues; there is a lot to look forward to throughout the region and EAOGS will present major projects from key countries including; Ethiopia, Kenya, Mozambique, South Sudan, Tanzania and Uganda.

The Conference Programme for EAOGS 2016 is currently in development by expert steering committee of industry and government experts and will once again provide a cutting edge agenda covering all of the key issues and success stories.

Alongside the Conference EAOGS 2016 will be increasing its exhibition space to allow for even more companies to demonstrate their products and services to thousands of decision makers from across the industry

isThe article explains about qualities that you should possess in order employer from oil and gas companies to consider you in their companies.

According to Shale Net, the following are  qualities looked for the oil and gas industry.

1Be a fast learner
2. Work hard and be willing
to work long hours.
3. Enjoy the outdoors
4. Be a reliable team player
5. Be dependable and on-time
6. Be a problem solver
7. Be a self-starter
8. Have a supportive family that
will understand long hours
9. Be physically fit
10. Have strong mechanical
ability

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Looking for job in oil and natural gas industry in Tanzania? Are you college student and you would like to bank six figure starting salaries? You are about to learn  some really great stuffs.

The article explains some great ways to join petroleum companies,for those  looking career or continue careers in oil and natural gas industry.

Petroleum industry has its own hiring methods and the methods we are going to discuss here, are the one applied by many Tanzanians who are currently enjoying career in petroleum companies.

If it work for them, it must work for you as well

Lets  face them:

1:University career fairs: Oil and natural gas companies have been recruiting  students from local universities for years.

Career fairs is the excellent opportunity for you , because attending these events enabling you to meet recruiters and employers of the oil companies who needs your skills.

During career fair you would be doing  a series of interviews, when you win competition  , you will receive job offer from particular oil companies

For instance, students from University of Dar es salaam,(UDSM) and Dar es salaam Institute of technology(DIT) have got job offer prior to their graduation date.

As I am writing this articles some of them are enjoying career with Schlumberger, Halliburton, Pan-African energy. To see example of Tanzania who join oil company through this method, click here: maintenance engineer in charge and maintenance supervisor at  Schlumberger  Innocent Anthony.

2.Company websites:

Most oil and gas company they often post open positions  on their website before posting elsewhere.

By free registration and creating account, on their website you will able  to see all posted jobs, and you can apply directly through these sites,

To apply for these jobs you don’t need to be an Internet expert,because they provide further details about the application process,

After applying, when you meet their qualifications  required for particular jobs they will contact you through phone but in most cases through your email address.

The best news is that we have some of Tanzanians currently working with petroleum companies thanks to company website method. Example of oil and company website you can apply now: http://www.bakerhughes.com/careers and http://careers.slb.com

3.Job Portals or jobs sites: Is among of the popular methods to get jobs in oil and natural gas companies. I have already explain about it in my previous articles, if you miss it, you should read here:see important job sites-for petroleum jobs.

4:Network, Network, Network: Instead of posting jobs on jobs board which might cost company in terms of time and money, many employers  use current employee inside the company to look for ideal candidates to fill open positions.

As you look for career in natural and gas industry your job is to wide your network by asking friends and family about others who are currently working with oil and natural gas industry and network with.

The more people you know in oil and gas industry  the more you increase your chance to get jobs in oil and gas companies

5:Social Media:  Social media is  a nice platform to meet with people regarding to your interest.If oil and gas is your passion, the social media I recommend you to use is LinkedIn. It will expose  you to the world of recruiters and other peers.Don’t be shy to ask people for information or advice on LinkedIn about oil and gas matters. Because linked in is designed for business purpose.

My Final Words

If you will take actions,these methods  are starting point of getting  jobs in oil and gas industry not only in short time but for  the rest of your career.

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Visiongain has calculated that the Southern African oil and gas market will see capex of $18.55bn in 2015, including spending on both upstream exploration & development (E&D) and midstream infrastructure.

Southern Africa is the single largest region of Africa, a region that includes a diverse range of economies all at varying stages in terms of oil and gas industry development. OPEC member Angola and newcomer Namibia on the West coast are set to increase oil and gas production over the coming years with the continuing exploitation of pre-salt reserves.

Mozambique and Tanzania are set to rapidly increase gas production to cater for burgeoning domestic and regional demand for gas-to-power facilities, as well as a desire to supply the resource-hungry economies of Southern Asia via LNG exports. South Africa is looking to expand its offshore operations, boosted by successes off its Western coast, as well as hoping to expand onshore shale gas development in the Karoo Basin to supply the needs of the region’s economies.

Read:Tanzania oil and gas market insight and outlook report h2 2015-2025

Lastly, Madagascar is set to become one of the world’s most exciting emerging oil producers, and is currently vying for foreign capital along with other countries in the region to develop its large onshore, heavy oil and oil sands reserves over the coming decade.

The report will answer questions such as:
– What are the prospects for upstream oil and gas markets in Southern Africa?
– What are the prospects for midstream oil and gas markets in Southern Africa?
– How are oil prices affecting the Southern African oil and gas market?
– Who are the leading companies in Southern Africa?
– Which Southern African countries are currently attracting the most upstream and midstream spending and how will this change over the coming decade?

How will you benefit from this report?
– Over 280 pages of analysis, including 153 charts and tables, which provide the perfect accompaniment to high-end business presentations
– Details on upstream exploration and development activity across 226 active license blocks in the region
– Information on 24 current and future midstream projects
– Up-to-date oil price forecasting and analysis
– Sections on Economy and Energy Sector Development by country
– Sections on Political Risk Analysis by country
– In-depth interviews with industry experts, providing exclusive insights into oil and gas developments across the region

Five reasons why you must order and read this report today:

1. The report provides forecasts and analyses for the main categories of oil and gas upstream and midstream spending in Southern Africa

Upstream
– Geophysical studies
– 2D studies
– 3D studies
– Onshore wells
– Offshore wells and subsea development
– Floating Production Systems (FPS)

Midstream
– Pipelines
– LNG facilities
– GTL facilities
– Refineries
– Storage

2. The above upstream & midstream submarkets and spending categories are broken down for the six largest national markets in Southern Africa
– Angola
– Madagascar
– Mozambique
– Namibia
– South Africa
– Tanzania
– ‘Rest of Southern Africa’ (Botswana, Lesotho, Swaziland, Zambia and Zimbabwe)

3. Tables and analysis detailing the latest activity within each Southern African licence block

4. The analysis is also underpinned by our exclusive interviews with leading experts:
– James Baban, Managing Director of Tanzania Ltd
– Dr David Mestres Ridge, CEO of Swala Energy

5. Comprehensive accompanying analysis on each country:
– Economy and Energy Sector Development
– Political Risk Analysis

Who should read this report?
– Companies currently investing in, or thinking of investing in, any Southern African countries
– Anyone within the upstream and midstream oil and gas industry
– CEOs
– COOs
– CIOs
– Business development managers
– Marketing managers
– Suppliers
– Investors
– Contractors
– Government agencies
– Onshore/offshore drilling engineers
– Geologists

Read the full report: http://www.reportlinker.com/p03337066-summary/view-report.html