We advise investors on the legal and regulatory regime that governs the petroleum sector in Tanzania, and companies raising capital on foreign stock exchanges in order to fund their petroleum operations.

As with land, all title and control over petroleum on any land in Tanzania vests with the Government. The Minister of Energy and Minerals has power to grant licences for upstream exploration and development. Exploration licences are granted for an initial term of 4 years, and development licences for a period of 25 years, with extensions.

As a matter of policy and general practice, all exploration and development licences are issued to the stated owned entity, Tanzania Petroleum Development Corporation (TPDC) which then grants exclusive rights to the oil and gas company under a production sharing agreement (see Model PSA 2013).

Relevant legislation in the oil and gas sector includes:

  • Petroleum Act 2015
  • Natural Gas Policy
  • Tanzania Extractive Industries (Transparency and Accountability) Act 2015
  • Oil and Gas Revenues Management Act 2015
  • Energy and Water Utilities Regulatory Authority Act (CAP 414)
  • Public Corporations Act (CAP 358)
  • Environmental Management Act 2004
  • Income Tax Act 2004
  • Occupational Safety and Health Act 2003

Read our Memo: Conducting oil and gas activities in Tanzania which we have produced with CMS Cameron McKenna.

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