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| Mr Simbachawene |
Deputy Minister for Energy and Minerals George Simbachawene has said
that Tanzania prefers adopting Production Sharing Agreement (PSA) as a model
for developing oil and gas sector because it attracts foreign capital and
ensures state ownership of resources.
Mr Simbachawene said this in Dar es Salaam during the Tanzania oil and gas conference jointly organised by the University of Dar es salaam’s College of Engineering and Technology, Ministry of energy and Minerals Resources and Energy and WaterUtilities Regulatory Authority (EWURA).
He said through such a model, oil companies bear all the risks from
exploration to production phases.
He said while the approach was rewarding in
attracting foreign capital due to the fact that the state remains the owner of
the resources, it often involves considerable risk to host countries due to
limitation in human capital to provide proper oversight leading into lost
revenue.
The conference brought together local and foreign experts in oil and
gas to create a platform for sharing views, experiences and ways to develop,
manage and finally achieve win-win situation solution in exploration,
exploitation and utilization of gas.
He said according to the Tanzania Petroleum Development Cooperation
(TPDC), about 61 wells have so far been drilled in the country both offshore
and onshore during the past 60 years and the country has recently discovered
large amounts of natural gas about 33 trillion cubic feet (tcf).
Mr Simbachawene said such large discoveries have made the country a
major player in natural gas production at global level. He said if properly
managed, current resources could bring about major revolution of the country’s
economy.
Source: The Daily News, www.dailynews.co.tz
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