The parliament of Tanzania has approved a legal and regulatory framework to develop the country’s hydrocarbons industry
Members of the parliament voted mostly in favour of the 2015 Petroleum Bill. However, the ones who opposed the bill stated that industry majors and non-governmental organisations should be given more time to scrutinise it, said a Reuters report.
According to government estimates, the East African nation has more than 1.5 trillion cu/m of natural gas reserves but they are yet to be explored. After months of debates, the energy ministry has decided that energy companies will pay 12.5 per cent royalty for oil and gas production in onshore or shelf areas, and 7.5 per cent for offshore output.
The state’s share of profit on natural gas production would range from a minimum of 60 to 85 per cent, pegged on a daily gas output.
With the regularisation of the natural gas sector, Tanzania could serve Asian markets, which are keen to buy natural gas and related products from the country.
