Clarifying Oil & Gas Contract Uncertainty

Background

Tanzania's press on Sunday, 16 September reported that the country's Minister for Energy and Minerals, Professor Sospeter Muhongo, had ordered a review of all of the 26 production sharing agreements (PSAs) currently entered into by the Government of Tanzania (GoT).

The order was said to have been issued to the new board of the Tanzania Petroleum Development Corporation (TPDC) and would include an audit of costs incurred by exploration companies to date "to ensure that the country gets a fair share of its resources".

The Minister's reported pronouncement came against the backdrop of the development of specific legislation intended to regulate the gas industry in Tanzania (specifically, a Gas Policy; Natural Gas Utilization Master Plan and Natural Gas Act).