THE REGULATION OF THE OIL AND GAS UPSTREAM SECTOR IN TANZANIA: A THEMATIC REVIEW OF THE PETROLEUM ACT 2015

Abstract

This article reviews the regulation of upstream sector in the Tanzanian petroleum industry in the wake of the regulatory changes. For the first time, Tanzania has enacted a comprehensive piece of legislation, the Petroleum Act, 2015, to cater for its oil and gas sector in a comprehensive manner. The new law repeals two previous legislations relating to petroleum, viz; The Petroleum (Exploration and Production) Act, and the Petroleum Act. This article reviews some aspects of the upstream industry as enacted in the new law. The main argument advanced is that with the new law, the petroleum industry in Tanzania is no more business as usual as the rules of the game have substantially been modified.

This is virtually in most crucial aspects from ownership of resources; government’s participation; the fiscal regime and local content. In all the reviewed aspects the author concludes that the Petroleum Act, 2015 is expected to impact substantially future engagement of oil companies investing in Tanzania.