Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Tanzania Opposition Calls for 10-Year Hiatus on Exploring Rights

Don't Miss Out —
Follow us on:

Sept. 12 (Bloomberg) -- Tanzania should impose a 10-year moratorium on licensing offshore oil and gas blocks to allow for the creation of laws ensuring the country benefits from its natural wealth, Shadow Finance Minister Zitto Kabwe said.

Tanzania, the holder of East Africa’s second-biggest natural-gas resources, in June tripled its estimate of recoverable gas reserves to 28.7 trillion cubic feet. The government postponed its next deep offshore bidding round, originally scheduled to start tomorrow, pending the adoption of a natural gas policy by lawmakers. Parliament may approve the draft document as soon as October.

“A moratorium will not only allow us to manage our new resources effectively, it will also ensure the welfare of future generations,” Kabwe said in an e-mailed statement. It would give time to set up a sovereign development fund, train Tanzanians for jobs in the industry, and make sure oversight bodies are monitoring oil and gas revenues, Kabwe said.

BG Group Plc and Statoil ASA have made offshore gas discoveries possibly large enough to justify building a plant to liquefy the fuel for domestic use and shipping, according to state-run Tanzania Petroleum Development Corp. Tanzania has signed a $1.2 billion loan agreement with the Export-Import Bank of China to build a 500-kilometer (311 mile) pipeline from the coastal town of Mtwara to Dar es Salaam, the commercial hub.

To contact the reporter on this story: Sarah McGregor in Nairobi at smcgregor5@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.