The government is in final stages to establish the national oil and gas policy that is to govern the entire sector that is still new in the country.
The initiative comes at a time when Tanzania’s natural gas reserves have just surged from 35 trillion cubic feet (trillion cubic feet) to 40tcf.
Energy and Minerals deputy minister George Simbachawene, made the revelation in the National Assembly yesterday.
He was reacting to a question posed by MPs while debating the 2013/2014 financial year budget for the Prime Minister’s Office.
Simbachawene said the current discoveries by companies, including the Statoil ASA, indicated that Tanzania’s natural-gas reserves have increased to 40tcf from the 35tcf formally discovered.
According to the minister, the government has completed all necessary processes in the establishment of the policy expected to open doors for investors to acquire licence for undergoing gas and oil exploration and exploitation.
He said the policy is being reviewed by the Parliamentary Committee on Energy and Minerals before it is tabled to a panel of permanent secretaries for final approval.
The minister told parliamentarians that the government’s delay in setting-up the policy is based on the fact that the sector needs more attention from all stakeholders, who should agree on the best way for regulating the entire exploitation process.
“We would have rushed things but instead we wanted broader participation of all stakeholders ...,” he said, noting, “the committee formed to go through the stakeholders’ opinions has acquired various supportive ideas from the public for the benefit of the sector.”
Earlier, while winding up debate before approving the Prime Minister’s Office’s budget, Christopher ole Sindeka (Simanjiro, CCM) appealed to the government to clarify on updates and stages towards the establishment of the policy and its regulations.
The lawmaker claimed that there were numerous natural resources including gas but efforts for setting-up policy by the government does not meet the demand thus deterring the country’s full involvement in the sector.
While in Oslo, Norway mid-this month Energy and Minerals minister Prof Sospeter Muhongo was reported saying discoveries of natural-gas reserves are likely to double by early 2015.
He said while the country prepares to offer new exploration blocks as early as September, “we have enormous amounts of gas,” revealing that “we are now at 40 tcf and I’m sure in the next two years we should be at more than a 100 tcf.”
Adding, the minister said the government will offer exploration permits between September and November, after the country delayed a planned licensing round for nine blocks in September last year. Tanzania Petroleum Development Corporation will decide on a date for the round, he said, without giving the number of blocks to be awarded.
