Oil Regulation

Tanzania
Saidi Othman Yakubu and Timothy Kyepa
Yakubu and Associates Chamber

General

  1.  Describe, in general terms, the key commercial aspects of the oil sector in your country. Unlike the gas sector, oil is a budding sector in Tanzania. As such, exploration is still ongoing. The Tanzania Petroleum Development Corporation (TPDC) has reported that oil seeps have been noted at Tundaua on the west coast of Pemba Island, Wingayongo in the Rufigi basin, Msimbati near Mnazi bay in the Ruvuma basin and Lake Tanganyika. Additionally, TPDC has reported oil shows in the following blocks; Pemba 5, Mandawa 1, Mafia 1 and Mita Gama 1. Small amounts of oil have also been reported in the Songo Songo block. Some of the companies involved in oil exploration in Tanzania include: Beach Petroleum Limited and Heritage Rukwa (T) Limited. Previously, Antrim Resources and Woodside Petroleum Limited were involved in oil exploration in Tanzania. However, they have since exited the market.
  2. directly or indirectly, by oil as opposed to gas, electricity, nuclear or non-conventional sources? What percentage of the petroleum product needs of your country is supplied with domestic production? What are your country’s energy demand and supply trends, especially as they affect crude oil usage?Much of Tanzania’s energy needs are provided by biomass. Biomass caters for between 90 and 92 per cent of the country’s energy needs. Oil and related products contribute between 7 and 8 per cent. Electricity is said to contribute between 1 and 1.5 per cent, while coal and renewable resources contribute between 0.5 and 1 per cent. These estimates have been reported by various institutions including the Ministry of Energy and Minerals, the Africa Environment Information Network and the United States Energy Association.Tanzania imports all its petroleum products. None of the petroleum product needs are supplied through domestic production. Although the gas sector has developed with gas production at Songo Songo and Mtwara, this is not the case for the oil and petroleum sector.

    Tanzania operates a bulk purchase system regulated by the Petroleum (Bulk Procurement) Regulations 2013. This system is used to purchase petroleum products. Tanzania does not have a domestic refinery and does not import crude oil. Trends in the country’s oil products demand are determined by consumption, especially in the transport and energy sector (independent power production).

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