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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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YAKUBU AND ASSOCIATES CHAMBER RANKED BY GLOBAL LEGAL DIRECTORY-LEGAL500

We are glad to announce that Legal500 has ranked Yakubu and Associates Chamber as one of the leading law firms in Tanzania. The Legal500 is one of the preeminent and independent global legal directories that rank the performance of law firms in various jurisdictions. The directory relies on customer information to consider law firms for prestigious mention. We shall continue to provide seamless services to all our clients to maintain their confidence in our services.

Although we have been in the market for just over two years, we have consistently exceeded expectations and provided quality services to all our clients. This prestigious ranking is dedicated to our team, which works around the clock to ensure that we deliver on all our assignments.

The team at Yakubu and Associates Chamber also takes this opportunity to congratulate Advocate Saidi Othman Yakubu, who received an outstanding review in the 2016 edition.

Please see http://www.legal500.com/c/tanzania for the detailed rankings. Please see the excerpt below;

Yakubu & Associates Chamber focuses on corporate advisory work for private sector enterprises and government agencies, and is particularly active in oil and gas, financial services, and real estate. In 2015, it represented Huawei Technologies Tanzania in a series of disputes, including two breach of contract cases. It also advised Vegeta Podravka, a European food processor, on establishing its business in Tanzania. Saidi Yakubu Othman is a well-connected senior practitioner, having previously worked as head of the deputy speaker’s office in the Tanzanian parliament.

YAKUBU & ASSOCIATES, PARTICIPANT IN THE UNITED NATIONS GLOBAL COMPACT

There is growing recognition among leaders in business, government and civil society that corporate social responsibility and corporate citizenship are now more necessary than ever.

Yakubu & Associates Chamber has demonstrated its commitment to these aspirations by joining the United Nations Global Compact – UNGC and is now an active participant.

UNITED NATIONS GLOBAL COMPACT is a strategic policy initiative and a practical framework for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of HUMAN RIGHTS, LABOUR RIGHTS, ENVIRONMENT and ANTI-CORRUPTION. The Global Compact offers participants a wide spectrum of work streams, management tools and resources.

Through our participation, we shall ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere, especially in Tanzania.

Our commitment to the forum is a testimony of our belief that business can sustainably do good and offer real solutions to some of the challenges that continue to afflict our societies.

Download a letter to UN Secretary General