Tanzanian parliament passes petroleum bill

Tanzanian lawmakers have passed a new petroleum bill that creates a regulatory and legal framework to manage discoveries and control of its natural gas reserves and possible future oil finds, officials said.

Tanzania has an estimated 55.1 trillion cubic feet of gas reserves. The bill was passed late on Sunday amid stiff opposition and days of debate.

“We are now through... the Parliament has finally passed the bill,” Energy minister George Simbachawene told the state television from Dodoma.

Over 30 international gas and oil exploration firms are currently operating in Tanzania. Under the law, the State will take a 60 to 80 per cent share of profit from onshore gas production, and up to 85 per cent from offshore production.

The Government’s share of profits from any future oil production will be between 50 and 70 per cent.