Category Archives: Oil

3 principles for natural resources to become a blessing for development

From: Yona Maro

Many of the world’s biggest economic success stories have happened in places with few or no natural resources.

This is clearly visible in Asia. Tiny Singapore, without a single natural resource, has transitioned from one of the poorest countries in the world to one of the richest. Japan and South Korea rebuilt their war-torn countries and became two of the most advanced economies on the planet through hard work, industrialization and education. China, which used to be a poor country and net oil exporter, is now the world’s second-largest economy and top importer of oil, with 600 million people brought out of poverty in the process. There are success stories on all continents.

On the other hand, countries richer in natural resources have ended up much poorer. Mountainous North Korea has access to mineral wealth that more successful neighbor in the south lacks. In West Africa, oil-rich Equatorial Guinea has a higher gross domestic product than Poland, but the life expectancy of its citizens is 20 years lower than that of the average Pole. If natural wealth alone determined development, the list of winners and losers would have been very different.
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Shifting global power

From: Emmanuel Dennis

Global Power Shift is scaling up the climate movement in an unprecedented way — it is sparking climate action all over the world.

After our massive gathering in Istanbul last year to train young leaders in grassroots and climate activism, thousands of youth have joined regional events, organised mobilisations and launched campaigns to fight the climate crisis in country after country — Australia, Ukraine, Canada, Vietnam, France, Kenya, Philippines, Brazil, Egypt, China and India are just some of them. And we’re not done yet — more Power Shifts are planned for the coming months! Check this awesome timeline to see what the teams are up to.

From national summits to months of action, these teams are building innovative, bold climate activism in their regions. They are exposing fossil fuel corporations and pressuring their leaders to take serious action. They are promoting and implementing clean, renewable energy, reaching and engaging frontline communities, and highlighting climate impacts. They’re working with well established partners and articulating effective, coordinated campaigns to tackle climate change. But most of all — they’re taking climate leadership and shifting the power!

There’s still a lot to do and we’re certainly going to see many powerful, inspiring campaigns sparking across the planet. But we are so excited about how Global Power Shift is moving so far that we wanted to share the news with you. Can you share the infographic with your friends too?

Onwards, is building a global movement to solve the climate crisis. Connect with us on Facebook and Twitter, and sign up for email alerts. You can help power our work by making a donation To change your email address or update your contact info, click here.

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Eastern Africa: The fast emerging oil and gas frontier region

From: News Release – African Press Organization (APO)

5th Eastern Africa Oil, Gas-LNG & Energy Conference – 28 – 30 April 2014, Intercontinental Hotel, Nairobi, Kenya

Eastern Africa: The fast emerging oil and gas frontier region

NAIROBI, Kenya, March 27, 2014/ — With a 35+year track record in and on Africa, Global Pacific & Partners ( hosts this landmark meeting on Eastern Africa. Now in its 5th year, Global Pacific & Partners invites you to this annual event held in Nairobi, Kenya, providing unrivalled new insights into the upstream opportunities, open acreage, bid rounds, new ventures, oil/gas investments, key upstream players, and corporate/government strategies in this vast region of fifteen countries covering onshore and offshore potential, from Eritrea to South Africa, including across the Mascerene islands.


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About “Global Pacific & Partners: Clubs and Networks”:

Over 350 senior executives attended the Conference in 2013, with 36 exhibitors.

Key Focus:

– Upstream opportunities

– Open acreage

– Bid rounds

– New ventures

– Oil/gas investments

– Key upstream players

– Corporate/government strategies

Senior-Level Presentations from:

– Africa Oil Corp

– Anadarko Petroleum



– Discover Exploration Limited

– Empresa Nacional de Hidrocarbonetos, EP

– Geological Survey Department, Malawi

– Ministry of Energy, Kenya

– Ministere des Hydrocarbures, Kinshasa

– Ministere des Mines et des Hydrocarbures, Madagascar

– Ministry of Energy & Natural Resources, Rwanda

– Ophir Energy

– PetroSeychelles

– Petroleum Exploration & Production Department, Uganda

– Salama Fikira

– Shell Exploration

– SPETC Advisory

– Soma Oil & Gas

– Somali Petroleum Corporation

– South Atlantic Petroleum

– Taipan Resources

– T5 Oil & Gas Ltd

– Tullow Oil

– Vanoil Energy

The 5th Eastern Africa – Strategy Briefing presented by their Chairman, Dr Duncan Clarke, is held prior to the conference, on Monday 28th April, and will provide key insights on the corporate upstream oil and gas game, governments, state oil firms, and licensing strategies.

Key Focus:

– Eastern Africa’s corporate E&P players

– Acreage, assets, strategies and investments

– Minnows, Independents, Super Majors

– Onshore/Offshore: Sudan to South Africa

– Foreign State Oil Companies

Following the 5th Eastern Africa Oil, Gas/LNG & Energy we will celebrate the 62nd PetroAfricanus Dinner to be held on 29th April.

Distributed by APO (African Press Organization) on behalf of Global Pacific & Partners.

Note for the Press:

For further information, please contact Global Pacific & Partners:

Babette van Gessel
Tel: +31 70 324 61 54

Sonika Greyvenstein
Tel: +27 11 880 70 52

Global Pacific & Partners

20th Western Africa Oil, Gas/LNG & Energy 2014 Conference, Windhoek, Namibia, 15-16 April 2014

From: News Release – African Press Organization (APO)

Ministry of Petroleum, Angola speaking in Windhoek, Namibia, April 15, 2014

Global Pacific & Partners hosts it’s 20th Western Africa Oil, Gas/LNG & Energy 2014 Conference, at the Country Club, Windhoek, Namibia, over 15-16 April 2014

WINDHOEK, Namibia, March 25, 2014/ — With a 35+ year track record in and on Africa, Global Pacific & Partners ( hosts it’s 20th Western Africa Oil, Gas/LNG & Energy 2014 Conference, at the Country Club, Windhoek, Namibia, over 15-16 April 2014, with the 10th Western Africa: Strategy Briefing taking place on the 14th April at same venue.


Download the brochure:

Download the Registration Form:

About “Global Pacific & Partners: Clubs and Networks”:

Emphasis on the Western Africa Oil/Gas Landscapes

The “Western Africa” arena covers a vast oil and gas exploration zone, one of the world’s richest and most promising for ventures- from Morocco to the Cape, including island states, with an enormous offshore zone and hydrocarbon potential, alongside prospective deep water blocks, ultra-deep opportunities only to date marginally explored, Exclusive Economic Zones, and promising pre-salt potential analogous to Brazil.

10th Western Africa Strategy Briefing, 14th April

The Strategy Briefing provides an unrivalled set of key insights on the Western Africa oil, gas and energy game, built on over 30 years of oil and gas research, to track shifting oil-gas/energy maps in Western Africa, providing seasoned insights.

Confirmed Senior-Level Presentations from:

• Ministry of Mines & Energy, Namibia

• Agence de Gestion et de Cooperation Entre la Guinee Bissau et le Senegal (AGC), Dakar

• SAOGA: South African Oil & Gas Alliance, Cape Town

• Serica Energy, London

• Chariot Oil & Gas, London

• Global New Ventures, Noble Energy, Houston

• PetroSA, Cape Town

• Regalis Petroleum, Namibia

• Sogenal Oil & Gas, Nigeria & Vice Chairman Petroleum Club, Lagos

• Sonagas G.E, Equatorial Guinea

• Panoro Energy, London

• Petroci, Abidjan

• ONHYM, Morocco

• Pancontinental Oil & Gas NL

• Petroguin EP,Guinea-Bissau

• Agencia Nacional do Petroleo de São Tomé e Príncipe (ANP-STP)

• Azonto Petroleum Ltd, Perth

• Ecobank Group, London

• Instinct Energy, Australia

• HRT Oil & Gas, Rio de Janeiro

• Ministry of Petroleum, Angola

• Africa Fortesa Corp, Houston

• Angola Legal Partner, Luanda

Distributed by APO (African Press Organization) on behalf of Global Pacific & Partners.

Note for the press:

For further information, please contact

Global Pacific & Partners
Babette van Gessel
Tel: +31-70.324.6154

Sonika Greyvenstein
Tel: +27-11.880.7052

Please follow our LinkedIn company profile for daily updates on the Upstream Industry

Global Pacific & Partners

World Energy Council: African energy leaders see global climate framework uncertainty, high energy prices, and commodity prices as top critical issues

From: News Release – African Press Organization (APO)

JOHANNESBURG, South-Africa, February 18, 2014/ — African energy leaders see global climate framework uncertainty, high energy prices, and commodity prices as the critical issues driving Africa’s energy agenda this year, according to the 2014 World Energy Issues Monitor, released by World Energy Council (WEC) (

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The African views are in contrast with the global view, where high energy price volatility has for the first time replaced climate framework as the top critical uncertainty.

Bonang Mohale, WEC Vice-Chair Africa, commented at the report launch at the Africa Energy Indaba:

“Our African survey finds that, in contrast with the global findings, climate framework has become an even more critical issue. Africa is dramatically vulnerable to climate change, and Africans are becoming more aware that climate change is an urgent and real issue rather than something that only countries with large emissions should worry about.”

In Africa, electricity supply remains a critical concern, with growing demand, lack of required investment, and increasing power shortages across the continent. Renewable energy remains a high-priority issue.

As a change from last year’s findings, African national governments and regional institutions are taking actions in energy efficiency and regional interconnection, while investment cooperation with China and India is viewed with increasing importance.

The report captures the views of over 800 energy leaders including ministers, chief executives and the heads of the WEC’s national members committees covering 84 countries.

In its global findings, climate framework uncertainty is now perceived by energy leaders to have less impact than in the previous three years of the study. Meanwhile, carbon capture, utilisation and storage (CCUS) continues to be viewed as a technology having limited impact.

Energy leaders are also increasingly concerned about the sector’s ability to access the capital markets for funds towards energy infrastructure, when set against a continued recessionary backdrop.

Christoph Frei, WEC Secretary General, said:

“The fact that both climate framework and CCUS are perceived to be issues of less impact is bad news not only in terms of emissions mitigation, but also for the development of robust and resilient energy infrastructure. Our energy systems are in a state of massive expansion and transition, and the signals we see today provide clear evidence of the urgent need for more robust, coherent, long-term frameworks for planning our future investment.”

Distributed by APO (African Press Organization) on behalf of the World Energy Council (WEC).

Media contact:

Monique Tsang

Head of News

World Energy Council – For sustainable energy

About the World Energy Council

The World Energy Council (WEC) ( is the principal impartial network of leaders and practitioners promoting an affordable, stable and environmentally sensitive energy system for the greatest benefit of all.

Formed in 1923, WEC is the UN-accredited global energy body, representing the entire energy spectrum, with more than 3000 member organisations located in over 90 countries and drawn from governments, private and state corporations, academia, NGOs and energy-related stakeholders.

WEC informs global, regional and national energy strategies by hosting high-level events, publishing authoritative studies, and working through its extensive member network to facilitate the world’s energy policy dialogue.

Further details at and @WECouncil


World Energy Council (WEC)

Oil & Mining; Hunger Scorecard;

From: Yona Maro
Subject: Oil & Mining Countries: Transparency Low Official Impunity High

A survey of public opinion in 22 countries which stake their countries’ economic futures on development of mineral or oil production.

From: Yona Maro
Subject: 2014 Africa Multiple Indicator Scorecard on Hunger and Food Security.

New 2014 Africa Multiple Indicator Scorecard on Hunger and Food Security.


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Mapping and analysis of the needs for petroleum related education in Tanzania

From: Yona Maro

Authors: Siri Bjerkreim Hellevik (Nordic Consulting Group Norway, NCG A/S), Farouk Al-Kasim (Petroteam A/S), Prosper Ngowi (independent), Harald Stokkeland (Sic International Consulting Ltd.) and Karen Sund (Sund Energy A/S)

Abstract: This study maps and analyses the needs for petroleum related education in Tanzania. This study represents an attempt to systematize the needs required at a detailed skills level, indicating gaps in demand and supply. The analysis is structured in a matrix that details skills needs at the professional and technical levels. The matrix is a useful tool that the government and the industry may use to plan for matching demand and supply of skills needed in years to come. Based on the findings, this study provides recommendations as to the type and level of education needed. There are many uncertainties as to the future as to the industry. Hence, the estimates given here have to be treated with caution and are likely to change as future decisions are made on development of the oil and gas sector in Tanzania.


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World Energy Outlook 2013

From: Yona Maro

Technology and high prices are opening up new oil resources, but this does not mean the world is on the verge of an era of oil abundance, according to the International Energy Agency’s (IEA) 2013 edition of the World Energy Outlook (WEO-2013). Although rising oil output from North America and Brazil reduces the role of OPEC countries in quenching the world’s thirst for oil over the next decade, the Middle East – the only large source of low-cost oil – takes back its role as a key source of oil supply growth from the mid-2020s.

The annual report, released recently in London, presents a central scenario in which global energy demand rises by one-third in the period to 2035. The shift in global energy demand to Asia gathers speed, but China moves towards a back seat in the 2020s as India and countries in Southeast Asia take the lead in driving consumption higher. The Middle East also moves to centre stage as an energy consumer, becoming the world’s second-largest gas consumer by 2020 and third-largest oil consumer by 2030, redefining its role in global energy markets. Brazil, a special focus in WEO-2013, maintains one of the least carbon-intensive energy sectors in the world, despite experiencing an 80% increase in energy use to 2035 and moving into the top ranks of global oil producers. Energy demand in OECD countries barely rises and by 2035 is less than half that of non-OECD countries. Low-carbon energy sources meet around 40% of the growth in global energy demand. In some regions, rapid expansion of wind and solar PV raises fundamental questions about the design of power markets and their ability to ensure adequate investment and long-term reliability.

“Major changes are emerging in the energy world in response to shifts in economic growth, efforts at decarbonisation and technological breakthroughs,” said IEA Executive Director Maria van der Hoeven. “We have the tools to deal with such profound market change. Those that anticipate global energy developments successfully can derive an advantage, while those that do not risk taking poor policy and investment decisions.”


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Energy finds in Africa highlight shifts in sector – DHL report

From: News Release – African Press Organization (APO)

Africa is the region with highest increase in oil consumption globally – 5% in 2012 versus only a 1% increase globally

CAPE-TOWN, South-Africa, November 25, 2013/ — The recent oil and gas finds in Africa will continue to have a positive impact on local economies, if local African suppliers, service providers and other businesses are geared up to service this growth.

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Photo 1:

Photo 2:

Photo 3:

Photo: (Charles Brewer, Managing Director for DHL Express Sub-Saharan Africa)

This is according to Steve Harley, President of the Energy Sector, for DHL Customer Solutions & Innovations ( Harley says that these energy finds provide many possibilities for local businesses, to echo the express operator’s own marked increase in the transportation of energy-related material in the region.

Harley says that forecasts expect African oil supply growth to continue over the next 25 years, with predicted ranges of growth over the period of between 0.5 million and 2.0 million barrels per day. “Africa will need to adapt in order to keep up with the demand, as well as evolving trends in this highly competitive sector.”

He says that globally, the steady and reliable supply of energy is critical to economic activity, and due to Africa’s availability of the resource, it is expected that the continent will see continued and steady economic growth.

“We have also witnessed an increased demand for the resource on the continent, and currently Africa is the region with highest increase in oil consumption globally – 5% in 2012 versus only a 1% increase globally. This is likely to continue as many of the fastest growing economies are situated on the continent.”

Harley does warn though that, as the easily obtainable oil reserves have been has depleted, that most of the new developments are either very remote or technically challenging, which brings issues of infrastructure, transportation and expertise to the fore.

“Forecasts predict that conventional oil production will decline by five percent per year. Extraction from unconventional sources is more complex and relatively more expensive from a supply chain perspective. As such, customers will need complementary expertise from integrated logistics suppliers to meet the challenges of these new geographies and technologies.”

Harley points to DHL’s recent global white paper on Maintenance, Repair and Operations (MRO) supply chain management for energy companies (, which shows the oil and gas businesses will require integrated suppliers that are able to support them with end-to-end supply chain solutions. According to the white paper, logistics suppliers need to provide a global footprint in combination with local market expertise. As a trustworthy partner, they also need to drive cost and process optimization and maintain safety and compliance both on and off-site.”

“This is particularly true in Africa,” notes Charles Brewer, Managing Director for DHL Express Sub-Saharan Africa. “While the continent is showing promise, issues around infrastructure, regulatory hurdles, and lack of an integrated supply chain in most markets, can be a major hindrance for energy businesses. Couple that with the need to optimise production and improve supply chain management to enhance service and reduce cost, and you understand the need for integrated suppliers to introduce more robust metrics, optimize the inventory and find cost-effective transport solutions.”

Brewer concludes, “This highlights the need to partner with an experienced provider who has extensive knowledge on the region. DHL has an unrivalled global presence and experience to ensure partners are offered integrated solutions that address today’s energy industry challenges.”

To download the report, please visit:

Distributed by APO (African Press Organization) on behalf of Deutsche Post DHL.

Media Contact:

Lee Nelson. Senior Manager – Marketing & Communications, Sub-Saharan Africa

DHL Express
Tel +27 21 409 3613 Mobile +27 72 361 0178
DHL – The Logistics company for the world
DHL ( is the global market leader in the logistics industry and “The Logistics Company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 285,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education.
DHL is part of Deutsche Post DHL. The Group generated revenue of more than 55 billion Euros in 2012.

Deutsche Post DHL

World Oil Outlook 2013

From: Yona Maro
Date: Tue, 19 Nov 2013 15:38:38 +0300
Subject: World Oil Outlook 2013

OPEC’s World Oil Outlook 2013 is part of the Organization’s commitment to market stability. The publication is a means to highlight and further the understanding of the many possible future challenges and opportunities that lie ahead for the oil industry. It is also a channel to encourage dialogue, cooperation and transparency between OPEC and other stakeholders within the industry.

The World Oil Outlook combines the expertise of the OPEC Secretariat, professionals in OPEC Member Countries and the Organization’s Economic Commission Board, as well as input from various other sources.


  • Foreword
  • Executive Summary
  • Section One: Oil supply and demand outlook to 2035
  • Section Two: Oil downstream outlook to 2035
  • Footnotes and Annexes

Tanzania: Planning for Gas, Oil Industry : Development

From: Yona Maro

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– – – – – – – – – – –

Planning for the Gas and Oil Industry for Rapid Socio-economic Development in Tanzania

Oil- & Gas Conference 2013 – Tanzania

The Mwalimu Nyerere International Convention Centre, Dar-es-Salaam

October 23rd – 24th, 2013


Honourable Ministers,

Permanent Secretaries,

Vice Chancellor, University of Dar-Es-Salaam

Excellencies Ambassadors and Members of the Diplomatic Corps,

Distinguished Participants


Chairperson & Distinguished Participants,

First and foremost, I must say I am humbled by those who decided to give me the honour to deliver a keynote address at the Second Oil and Gas Conference 2013, on the subject “Planning for Oil and Gas Industry for Rapid Socio-economic Development”. I know too well that there are many Tanzanians who have the stature and wealth of experience to play this role. I therefore take this privilege with profound gratitude. However, I must hasten to add that, the thinking on planning for the gas industry in Tanzania is a brain child of many people, both Tanzanian (in Government and outside Government) and foreign friends/ experts, as well as international literature on the subject. I therefore cannot claim full credit for what I am about to say. However, I take full responsibility for any errors.

Ladies & Gentlemen,

In terms of the structure of this address, my point of departure is to assert, before this august conference, that this is the defining moment in the economic history of Tanzania in the march forward toward prosperity. It is crystal clear in my mind that Tanzania today has a unique window of opportunity to realise the national aspirations laid out in the Vision 2025 (TDV 2025). I shall then move to the core of my address which is to provide an expose’ of the ongoing thinking on the part of the Government of Tanzania (GoT) in planning for the up-coming gas boom in order to accelerate socio-economic development of Tanzania. Specifically, I will be reiterating the vision for the oil and gas industry as articulated by His Excellency Dr. Jakaya Mrisho Kikwete, President of the United Republic of Tanzania; the challenges ahead; and what it will take to realise that vision. I will also hastily indicate where we are now in planning for the orderly development of the gas industry. Finally, I will end my address with a few points of emphasis.


Distinguished Participants,

Recent discoveries of a significantly large endowment of natural gas in Tanzania, offer the country a window of opportunity of its kind to build up the country’s industrial capability, accelerate socio-economic transformation and realize the national aspiration to become a middle income country by 2025 (Tanzania Development Vision 2025). The revenues from these resources can be used to break the most binding constraints to growth identified in the Five Year Development Plan 2011/12 – 2015/16, especially power and transport infrastructure gaps (port, railway, road, marine, air) as well as irrigation and skilled human capital deficit. Indeed Tanzania does have a tremendous gas wealth at its disposal with 2.3 trillion cubic feet of proven gas reserves (Index mundi, 2013) and an estimated total of 42.7 trillion cubic feet of on- and offshore reserves (Ministry of Energy & Minerals, 2013; Reuters, 2013). A recent study by Oxford Policy Management (OPM, 2013) estimated that Government revenues through taxes and returns to the planned national gas company, will yield an impressive revenue potential of US$1-2 billion a year, equivalent to 2-3% of GDP.

Ladies & Gentlemen,

However, much as hydrocarbons and mineral wealth is intrinsically a blessing, it can easily become a curse. There are examples of such resources being managed well (efficiently, fairly and openly) and thereby contributing to remarkable improvements in wellbeing, as in Botswana. But there are also examples of where these resources have fuelled wars, as in Sierra Leone or the Democratic Republic of Congo (DRC), or led to widespread corruption and poverty as in Nigeria. Extracting non-renewable sources is, by definition, not a sustainable source of growth over the long-run, and it creates few jobs.


The source of either the mineral curse or blessing is three fold: (i) Natural resources extraction generate what economists refer to as “rents” (revenues in excess of the cost of extraction). In that regard, everything depends on who gets the rents and how they are used. The rents can be stolen (and frequently stowed away in banks or real estate abroad), lavishly consumed or invested. Therefore, a country can get more (or less) of the rents depending on its stock of expertise for mineral prospecting and contract negotiation; administrative and institutional capacity to manage public finances well and transform the rents into physical and financial assets as well as skilled human capital; extent to which local entrepreneurs participate in upstream and downstream activities; and the quality of governance, including the extent of transparency to reduce corruption. (ii) World market prices of natural resources are volatile and difficult to tell in advance what will happen in the future. Consequently, natural resource rents are equally unpredictable and thereby make economic planning, macroeconomic and budget management difficult, with mega swings in government spending. Rents can lead to boom and burst cycles in the economy linked to drastic rise and fall of commodity prices. The cycles can also be associated with an overvalued exchange rate that makes diversification and the associated job creation difficult, or wasteful public investment. Furthermore, the cycles can also be linked to unsustainable consumption that ends when the resources are depleted. Thus, the quality of economic management also has a bearing on the final outcome; and (iii) The non-renewable nature of natural resources raises issues of intergenerational equity, that is whether to spend a bigger share of the natural resource wealth by the current generation at the expense of future generations, or saving a proportion of the natural gas revenues for future generations and how those savings ought to be invested, including the options of establishing a sovereign wealth fund or investing those revenues in infrastructure development, education and health. Therefore, how the intergenerational issue is resolved also matters


Distinguished Participants,

Given its tremendous potential, the oil and gas sector stands to contribute to rapid socioeconomic development of Tanzania through: (a) revenues for the government’s development budget. However, the outcome critically depends on the quality of the investment programme; (b) domestication of the supply chain, which means provision by Tanzanian entrepreneurs of services involved, from the stage of mining the gas to delivery to local consumers and export; (c) power generation and development of gas-related industry (LNG, LPG, NGL, petro-chemical industry – fertilizers, plastics, pharmaceuticals, ethanol, methanol, allied services, etc); (d) technology transfer; and (e) build-up of domestic expertise in geo-sciences (geology; geophysics; drilling, production & reservoir engineering, geo-chemists, natural gas technologists, pipeline engineers, chemical and process engineers, gas metering), economists, as well as experts in managing production sharing agreements (PSAs), taxation, accounting & auditing, lawyers for contract negotiation & administration, and data management.

Distinguished Participants,

Considering limited financial, technological and human capital, Tanzania has little choice but to invite foreign companies to exploit the resources on its behalf and earn revenues through negotiated profit sharing agreements. Nevertheless, Tanzania will have to work on a sound and robust institutional framework for managing this wealth prudently. This may include creating an independently operating, yet state-owned oil and gas company similar to PETRONAS of Malaysia that will legally have to be involved in all oil and gas operations in Tanzania as a partner of foreign companies. As the shareholder the government would then be entitled to dividends and tax payments.

Chairperson, Ladies and Gentlemen,

In the world of business, some people can see major emerging trends (i.e. general directions in which situations are developing or changing), perhaps even predict them, but may lack the motivation or resources to act on them. Many business people may have the resources and intent to act, but are often in the unfortunate position of simply following the trends rather than surfing them. In the end both miss the trends!! Borrowing from Chinese wisdom: The person who catches the trend is strong, or perhaps their strength will master a trend; executing with force is a must to catch a trend. There is also an ancient Chinese saying that classifies how people react to, and the benefit they derive from, opportunities. The saying goes as follows:“If you are not aware, you will have no reaction; Late awareness, delayed reaction; Early awareness, advance reaction: If you know first you act first” (Yuann James and Inch Jason, 2008).

Ladies & Gentlemen

Following the same analogy, the discovery of significant reserves of natural gas reserves in Tanzania is one of the major emerging trends. As such, the time for Tanzania to know the trends, catch them, and act with strength is now. The trends that will shape Tanzania’s future, in the run up to 2025 and beyond, are potentially very large and laden with opportunities. The magnitude of benefits the country stands to gain will critically depend on how fast Tanzanians marshal their ingenuity to recognize and operate in the industries that natural gas promotes.


Distinguished Participants,

The Tanzania Development Vision 2025, officially launched at the end of 1999, laid out the country’s socio-economic aspirations to be realized in a span of 25 years (2000 – 2025). The thrust of the vision was to ensure that Tanzania becomes a middle income country (MIC) by 2025, characterized by a competitive, dynamic and semi-industrialized economy, whose citizens are well educated and enjoying high quality livelihood, peace, national unity, good governance and a per capita GDP of US$ 3,000.

Mr. Chairman, Ladies & Gentlemen,

In 2011 the Planning Commission did some analysis in order to gauge what it would take for Tanzania to become a middle-income country as envisaged under the TDV 2025. The study generated the GNI per capita that would have to be achieved by the year 2025 in order to reach the lower MIC threshold of US$1,026. It turned out that for the threshold to be realized, an average GNI growth rate of 8% in the next fifteen years will have to be sustained. Apart from sustaining growth rates above 8%, the country will also have to transform from a mainly agricultural economy to a semi-industrialized one. This transformation is expected to happen first by increasing productivity in agriculture, fuelling agro-processing and a sharp increase in the growth of the manufacturing sector. Second, improvements in the value addition chain will be required to trigger growth in the industrial sector. The structural transformation implies that there will have to be a drastic shift in sectoral growth paths. Specifically, agriculture growth will have to increase from 4% average realized for the period 2000-2010 to 6% through to 2025. Similarly, the growth of manufacturing will have to increase from 8% average for 2000-2010 and reach 13% all through to 2025.

Ladies & Gentlemen,

The structural shifts and higher growth rates required of Tanzania to graduate to middle-income country status are obviously a tall order, considering that the country is off-target on a number of vision targets, with only twelve (12) years to reach the end of the TDV 2025 period. Regaining lost ground will need, among others, aggressive industrialization drive, taking full advantage of Tanzania’s niches and emerging opportunities, notably the recently discovered natural gas reserves.


Ladies & Gentlemen,

His Excellency President Kikwete has already articulated the vision for the natural gas sub-sector as being “to utilize the windfall revenues from the natural gas reserves to diversify the Tanzania economy and create capacity for sustainable growth”. Furthermore, it is envisaged that this vision will be realized by ensuring that Tanzania gets maximum share of the revenue flows from the exploitation of natural gas & oil.

Dear Participants,

In the light of this vision, key aspects that are on the national planning drawing board for the development of the natural gas sub-sector in Tanzania, include the following:

(a) For the Pre-production stage:

(i) Building the country’s capacity for prospecting, writing and negotiation of contracts: This is absolutely critical to enable Tanzania to establish or confirm independently the volume of natural gas reserves that the country has and track and regulate production as well as well as revenue flows. Such information is needed not only for prudent contractual negotiation with foreign investors to ensure fair deals but also for proper planning of oil and gas extraction. As such, it will require building up a pool of experts with specialized technical skills and outstanding knowledge in taxation of petroleum products; writing good contracts /negotiation of production sharing agreements and joint ventures; selecting, appraising and monitoring projects; environmental impact assessment (EIA), as well as pricing of oil and gas (geologists, accountants/ auditors, economists, environment experts etc.);

(ii) Setting up rules for utilization, institutions for managing investment of proceeds, design of an appropriate tax structure that balances the interest of Tanzania and investors, as well as creating a critical mass of informed citizens to enforce accountability and transparency: The rules may include, among others, whether the whole amount should be invested, saved or appropriated between savings and investment; what projects or area of investment and where the investments should be made; and whether the returns from the savings should be invested or added to the savings.

(iii) Instituting a clear strategy to domesticate the supply chain: Focus is on building national ability of Tanzanian entrepreneurs to provide all services involved, from the mining stage to delivery to local consumers and export, to the extent possible;

(b) For Upstream Activities:

(iv) Use of natural gas: This entails weighing the alternative uses of the natural gas and striking a balance between domestic needs (for power generation, development of petro-chemical industries, etc) and for export; At this stage it is also important to think about what proportion of proceeds should be spent on domestic investment and what should be put away in a foreign fund, as well as where to invest domestically in line with national priorities under the TDV 2025 and Five Year Development Plan;

Dear participants,

(c) For Downstream Activities:

(v) Prudent utilization of windfall revenue from natural gas: How to avoid the negative macroeconomic consequences of exploiting natural gas (Dutch disease – by which key sectors such as agriculture and manufacturing will be destroyed if the shilling appreciates due to large inflows of proceeds from natural gas exports and thereby causes losses to exporters of agricultural and manufactured goods);

(vi) Investing in project design, evaluation and implementation capacity to ensure highest returns to selected projects to be financed; and

(vii) Putting aside proceeds in well managed and secured sovereign wealth funds, as well as investing in productive capacity: The objective is to ensuring that future generations benefit from exploitation of this non-renewable resource.

Chairperson, Ladies & Gentlemen

Status on Planning for the Orderly Development of the Oil and Gas Industry

A number of activities have been implemented so far in line with the planning approach described above. They include: Background studies to map-out the terrain; workshops carried out to learn international experience and best practices; Preparation of the roadmap for the development of the natural gas sector; Preparation of the natural gas policy; Capacity building centred around training of young Tanzanians in gas-related skills both within Tanzania and abroad. Work to develop the natural gas master plan is still underway.


Distinguished participants,

To avoid the resource blessing becoming a resource curse, macro-fiscal rules are indispensible. The size of the expected external revenue inflow is tremendous with estimations for gold, gas and nickel suggesting annual revenues of approximately US$3.5 billion or 15% of 2011 GDP in peak years of production for around 20 to 30 years (IMF, 2012); almost equivalent to one third of the national budget for 2013/14. However, Tanzania will have to consider the frequently observed high degree of volatility of resource prices and hence volatility of resource revenues. Those funds can thus be crucial to enable Tanzania graduate to middle income country status or cause substantial havoc while completely obstructing sustainable long-run development.

Ladies & Gentlemen,

As a consequence three key approaches must underlie the planning for the utilization of the revenues from the gas industry for rapid, but sustainable socioeconomic development. Firstly, the influx of those new foreign earnings into the Tanzanian economy needs to be tightly controlled and in sync with the economy’s and the government’s absorptive capacities (IMF, 2012). Simply “throwing money at the system with good intentions” is likely going to cause the Dutch Disease. At the same time spending higher revenues without sufficient absorptive capacities by economic agents will lead to highly inefficient expenditure and hence a waste of those means for development with devastating long-term effects;

Secondly, it is well-established that governments in developing countries play an essential role in investment in key sectors such as infrastructure. Those investments however extend over longer time horizons and frequently require on-going investment through government funds as the project progresses. In resource-rich developing countries a substantial share of government funds can originate in resource exploitation. This however exposes such countries to risks resulting from high volatility of resource prices. This in turn can render budgets and investment very pro-cyclical and thwarts continuous development. As a consequence, countries like Tanzania will need to utilize resource revenues while insulating crucial government investment expenditure from the aforementioned price volatility and also create stabilization buffers;

Thirdly, Tanzania must plan for intergenerational equity as to avoid spending the entire wealth on temporary higher consumption for the current generations in the short-run at the expense of future generations. At the same time, current investment in countries with high levels of poverty, yield higher returns than future investment assuming economic development trends remain the same (IMF, 2012). Consequently key policy questions surrounding saving a proportion of the oil revenues for future generations and how those savings ought to be invested, e.g. a sovereign wealth fund, will arise.

Chairperson, Ladies & Gentlemen,

Allow me to end my address by reiterating that Tanzania has now a unique window of opportunity to transform into a middle-income country within the next 15 to 20 years. Fortunately, most of its natural gas wealth is yet to be commercially developed which according to existing estimations is likely to take at least another decade (IMF& WB, 2013). Tanzania has thus sufficient time to devise a coherent gas development strategy, including a macro-fiscal regime that should maximize the benefits of its resource wealth while minimizing the potential adverse effects.

Tanzania cannot afford to act like the third servant described in the famous biblical narrative of the parable of talents (St. Matthew Chapter 25: 14 – 30). For the benefit of non-Christians, this is a story about a man who is preparing to leave on a journey and entrusts his possessions to his servants. He distributes his wealth among three servants, apportioned to them on the basis of their abilities. To the first he entrusted five talents, to the second two talents and to the third, one talent. The first two servants quickly set to work with their master’s money. The third servant did not invest his master’s money at all; he dug a hole in the ground and buried his master’s money.

When the master returned, the first two eagerly met their master, apparently delighted in the opportunity to multiply their master’s money. Both were commended as good and faithful servants. Both were rewarded with increased responsibilities in their master’s service. Both were invited to share in their master’s joy. The third servant came to his master with only the talent the master had originally entrusted to him. He did not increase his master’s money at all. This servant offered a feeble excuse for his conduct, telling his master that he was a harsh and cruel man, a man who was demanding, and who expected gain where he had not laboured. He contended that this was why he was afraid to take a risk with any kind of investment. And so he only hid the money, and now he returned it, without any gain. The master rebuked this servant for being evil and lazy. He took his talent from him, gave it to the one who earned ten, and cast this fellow into outer darkness, where there was weeping and gnashing of teeth.

The story line of the parable of talents calls upon we Tanzanians to grab the opportunity emerging out of the recent discovery of large natural gas reserves and act with force to transform this God given resource, into a blessing for all Tanzanians, both current and future generations. It also calls upon Tanzanians to do more than simply conserve God given endowments – rather, they are to help us flourish and grow to greater heights.


Philip Mpango (Ph.D.)

Executive Secretary – President’s Office Planning Commission

October 23rd, 2013


Tanzania oil and gas report

From: Yona Maro


Rex Attorneys

Tanzania’s upstream oil and gas sector
is currently enjoying a boom
experienced elsewhere in East Africa
following major discoveries of natural
gas by Statoil, Ophir Energy and BG
Group. These discoveries mean that in
2012 Tanzania’s total estimated natural
gas reserves quadrupled from 10 trillion
to 40 trillion cubic feet. Offshore gas
fields at Songo Songo and Mnazi Bay are
currently in the process of being
developed by Pan African Energy and
Maurel and Prom in conjunction with
the Tanzania Petroleum Development
Corporation (TPDC). However, despite
50 years of exploration activity,
Tanzania still has no proven oil reserves
and remains dependent on imported
petroleum products.
Key legislation and regulatory structure

The key legislation regulating the Tanzanian
upstream oil and gas sector is the Petroleum
(Exploration and Production) Act 1980 (the
Petroleum Act 1980), which vests title to all
petroleum within Tanzania and its
territorial waters to the United Republic
of Tanzania.
The large discoveries of natural gas have
prompted the Tanzanian government to
develop a Natural Gas Policy and Natural
Gas Utilization Master Plan. In late 2012,
drafts of both documents were in
circulation for comments from stakeholders.
These will supplement Tanzania’s existing
2003 national energy policy. A Natural Gas
Act is also due to be enacted during the
course of 2013. In relation to oil and gas, the
2003 Energy Policy states that petroleum
operations should be undertaken in
accordance with high standards for
environment, safety, health and product
quality; that environmental impact
assessments and environmental
management plans should be made; and
that regional and international co-operation
in exploration, development of
infrastructure, trade, database and capacity
building should be promoted.
Under the Petroleum Act 1980, the oil and
gas industry in Tanzania is regulated by the
Ministry for Energy and Minerals (MEM),
which sets industry-specific policies,
strategies and laws. The MEM co-ordinates
the TPDC, which regulates upstream
activities, and the Energy and Water
Utilities Regulatory Authority (EWURA),
which regulates downstream activities.

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The TPDC was established in 1969 by the
Tanzanian government under the Tanzania
Petroleum Corporation (Establishment)
Order (GN No. 140 of 1969). It is the
TPDC through which the MEM implements
its petroleum exploration and
development policies.
The role of the TPDC is set out in the
Tanzania Petroleum Corporation
(Establishment) Order as being:
to promote and monitor exploration for

oil and gas;
to develop and produce oil and gas;

to conduct research relating to and

develop the oil and gas industry
in Tanzania;
to manage the exploration for oil and gas;

to advise the government on petroleum

production data;
to undertake the management of

strategic fuel reserves; and
to undertake trading in

petroleum products.
The TPDC is also a signatory to all
production sharing agreements (PSAs)
entered into in Tanzania. The TPDC
monitors the implementation of PSAs and
advises the Tanzanian government on
various compliance issues.

Licensing regime

Rights to explore for and produce petroleum
in Tanzania are obtained by entering into a
PSA with the Tanzanian government and
the TPDC. Under the agreement, the
Tanzanian government grants petroleum
exploration and development licences to the
TPDC, which in turn engages the oil
company to carry out petroleum exploration
and production operations on its behalf.
Standard terms for the PSA, which are
negotiable, are set out in Tanzania’s
2008 Model PSA (MPSA) and the Petroleum
Act 1980. Applications for licences and for
entry into PSAs are done both through
licensing rounds and by application.
The initial period of an exploration licence
is four years, which can be extended twice
for a four and three year period. An
exploration licence normally consists of
60 blocks, although the Petroleum Act 1980
allows for the licence to comprise up to
200 blocks in special circumstances.
Moreover, more than one exploration licence
can be granted under each PSA in respect of
different areas.
If there is a commercial discovery, the TPDC,
as the registered holder of the exploration
licence, applies for a development licence on
the contractor’s behalf. The application for a
development licence must be made (subject
to certain permitted extensions) within two
years of the date that the relevant blocks are
declared to be a ‘location’, that is, an area (as
prescribed by the Petroleum Act 1980)
within which a discovery has been made. A
development licence is granted for 25 years,
with the possibility of an extension for a
further 20 years. A development licence
confers on the holder the exclusive rights to
carry on exploration and development
operations in the development area and to
sell or otherwise dispose of the
petroleum recovered.
Applications for exploration and
development licences must contain, among
other things, details of the applicant’s
technical and financial capability and its
proposal for the employment and training of
citizens of Tanzania.
Only an entity incorporated in Tanzania can
hold an interest in a petroleum licence.
In September 2012, the Energy Minister
announced a review of all the then current
PSAs to ensure that they are in the country’s
best interests. Additionally, the TPDC
delayed a licensing round for nine deep-sea
oil and gas blocks, originally set for
September 2012, until a parliamentary vote

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on the new gas policy takes place. These
measures have created some uncertainty as
to the future direction of Tanzania’s
licensing regime.

National oil company/state participation

Under the MPSA, the TPDC may elect at any
time by notice in writing to the contractor
to acquire up to a 25 per cent participating
interest in any development area by
contributing its share of contract expenses,
excluding exploration and appraisal
expenses. If the TPDC fails to pay its share of
contract expenses, the contractor shall bear
the TPDC’s share of expenses by way of a
loan, bearing interest at LIBOR plus 2 per
cent and reimbursable on a preferential
basis from the TPDC’s share of profit oil or
gas. The TPDC’s profit oil and/or gas share is
increased by the rate of the participating
interest and the contractor’s share is
reduced accordingly.

Fiscal regime

The fiscal terms applicable to upstream
petroleum activities in Tanzania are
governed primarily by terms of the
Petroleum Act 1980, the Income Tax Act,
No. 11 of 2004 (the Income Tax Act) and any
PSA entered into as set out below.

– under Section 81 of the
Petroleum Act, a registered holder of a
development licence must pay a royalty to
the government in respect of the
petroleum obtained from the
development area. Under Article 14(c) of
the MPSA, the TPDC agrees to discharge
this obligation to pay a royalty by
delivering to the government 12.5 per
cent of total crude oil or gas production
before any cost recovery.
Cost recovery

– under the MPSA, the
contractor is entitled to recover contract
expenses out of up to 50 per cent of the
volumes of crude oil or natural gas (after
deduction of the royalty) produced and
saved from the contract area in any
calendar year. Any unrecovered contract
expenses are carried forward. Operating
expenses are recovered first, then
exploration expenses and finally
development expenses. Contract expenses
incurred in any one licence area within a
contract area may be recovered from
production from a development area
within the same contract area to the
extent incurred before first production
from that development area.
Profit oil

– the remainder of the crude oil
and natural gas produced is shared
between the contractor and the TPDC on
a sliding scale that depends on daily
production rates for the prior calendar
quarter. Under the MPSA, for crude oil
the contractor’s take ranges from 30 per
cent when production is from
0–12,499bpd to 10 per cent when
production is above 100,000bpd. Crude oil
is valued based on the average price for
sales of the relevant type of crude from
the development area in the prior
quarter. The valuation of natural gas for
production sharing purposes is to be
agreed between contractor and the
government so as to give the contractor ‘a
fair return on its investment’.

– the contractor is subject to
income tax under the Income Tax Act at
the standard corporate income tax rate of
30 per cent. Deductions are not permitted
in respect of expenditure of a capital
nature that secures benefits lasting
longer than 12 months or is incurred in
respect of natural resources prospecting,
exploration or development. The Act
provides for a 20 per cent depreciation
rate for assets used in natural resources
activities. Under the MPSA, the contractor
is also required to pay an Additional
Profits Tax calculated on positive
cumulative net cash flow on a
development area basis.

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Customs duties

– under the MPSA, all
machinery, equipment, vehicles,
materials, supplies, consumable items
and moveable property imported for use
in petroleum activities can be imported
and exported free of all duties and taxes.
Subject to requirements to meet
Tanzanian crude oil demand, the
contractor can freely dispose of its share
of petroleum and export it free of export
duties and taxes.

– the contractor must pay the
TPDC an annual charge in respect of any
exploration licence ranging from
$4–16/sq km (indexed to dollar
inflation rates) depending on the period
of exploration. The annual charge for a
development licence is $2,000/sq km and
each year of the exploration licence the
oil company must spend a minimum of
$150,000 on the training of Tanzanian
Repatriation of profits

– the payment of
dividends is subject to a withholding tax
of 10 per cent save that payment of a
dividend by a company to a local
company shareholder with at least a
25 per cent ownership interest is only
subject to a 5 per cent withholding.

Local content requirements

Under the Petroleum Act 1980, applications
for exploration or development licences
must be accompanied by proposals with
respect to the training and employment of
Tanzanian citizens. Under the MPSA, the
contractor must implement such proposals
within six months of the grant of a
development licence. The contractor must
also ensure that the transfer of management
and operation functions to Tanzanian
nationals occurs within five years of the
start of commercial operations. Additionally,
under the MPSA the contractor is
required to:
give preference to the purchase of

Tanzanian goods, services and materials;
make maximum use of Tanzanian

service companies;
establish appropriate tender

procedures to give effect to local
content requirements;
maximise the level of usage of local goods

and services, businesses, financing and
employment of Tanzanian nationals;
ensure that sub-contracts are scoped to

match the capability of local
enterprises and manage risk to allow
their participation;
give equal treatment to local enterprises

by ensuring access to all tender
invitations and by including high
weighting on local value added in tender
evaluation criteria; and
employ Tanzanian citizens having

appropriate qualifications to the
maximum extent possible. In this
connection, the oil company must
propose and carry out an effective
training and employment programme for
Tanzanian employees in each phase and
level of operations.

Domestic supply obligation

Under the MPSA, if domestic demand
exceeds the TPDC’s total entitlement to
profit oil or gas, the contractor may be
required to sell its share of profit oil or gas
in Tanzania on a pro rata basis with other
producers in Tanzania (except the TPDC).
The Petroleum Act 1980 also states that a
development licence must include conditions
with respect to the duty of the registered
holder of a development licence to supply
petrol to meet the local needs of Tanzania.

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, March 2013, 35653

Freshfields Bruckhaus Deringer


is a limited liability partnership registered in England and Wales with registered number OC334789. It is authorised and regulated by the Solicitors Regulation
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or any of its affiliated firms or entities. This material is for general information only and is not intended to provide legal advice.

Transfer of interests

Under the Petroleum Act 1980, a legal or
equitable interest in or affecting an
exploration or development licence can only
be transferred or assigned, directly or
indirectly, by instrument in writing, and is
subject to MEM’s approval. This applies both
on a transfer of an interest and on direct or
indirect change of control of the party with
an interest in the licence. There are no
reasonableness requirements regarding
approval except that MEM shall give its
approval for the transfer of an exploration
licence when the transferee is a person
controlling, controlled by or under common
control with the transferor and is not
disqualified from holding such licence.
Under the MPSA, a contractor is permitted
to assign or transfer its rights, privileges,
duties or obligations under the MPSA to an
affiliate company provided that the
Tanzanian government and the TPDC are
notified in writing in advance and that the
assignment will not adversely affect the
performance of obligations under the MPSA.
The written consent of the Tanzanian
government is required if the contractor
wishes to make such an assignment or
transfer to a non-affiliated person, firm or
corporation (in whole or in part). This
consent must not be unreasonably withheld
or delayed. Moreover, as a condition of the
assignment, the oil company must provide
an unconditional undertaking from the
assignee to assume all the obligations of the
oil company under the MPSA.
Under the Income Tax Act 2004, any gain on
the disposal of an interest in a petroleum
licence will be chargeable income for the
purposes of calculating the disposing party’s
liability to income tax.

Stabilisation/equilibrium and
dispute resolution

The MPSA provides for disputes to be settled
by arbitration in accordance with the
International Chamber of Commerce Rules
of Conciliation and Arbitration. The
arbitration is to be held in Dar es Salaam
and the applicable law is that of the United
Republic of Tanzania. There are no
stabilisation or equilibrium provisions in
the MPSA

Africa’s Next Oil Insurgency: The Precarious Case of Kenya’s Turkana County

From: Yona Maro

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Political scientists remain divided on the link between natural resources and armed conflict in Africa. One school of thought suggests that competition over the control of resources is itself a motivation for the development of armed insurgencies. Others – opponents of this greed-based theory – suggest that control over resources serves as a mechanism to correct economic and political inequalities. But all agree on one thing: there is a positive relationship between the availability of lootable resources and armed insurrection, and this is particularly the case where populations have been marginalised.

Nigeria’s oil-rich Niger Delta follows this pattern – the Delta experienced a protracted insurgencyagainst the region’s hydrocarbon industry due to the negative impacts of oil exploration and the question of profit distribution. The conflict occurred in a context of ethnically-motivated violence and a burgeoning small arms trade, leading to the rapid militarisation of the region.

A 2009 amnesty agreement formally brought an end to the Niger Delta conflict and, although the peace remains tenuous, the frequency of violence, kidnappings and terrorism has decreased. As a consequence, the world’s attention has shifted towards the impending East African oil boom. Most vested stakeholders have focused on the potential geopolitical benefits of the boom, but fail to address the potential impact these resource discoveries could bring to areas already experiencing acute socio-political and economic marginalisation.

A case in point is Kenya’s Turkana County. Located at the meeting of Kenya’s blurred borders with Ethiopia, Uganda and South Sudan, Turkana County is an arid region, long neglected by successive Kenyan administrations. However, in recent months, Turkana County has become a key area of interest for the Kenyan government and investors alike following reports that British-owned oil exploration company, Tullow Oil PLC, discovered an estimated 250 million barrels of crude oil there.

While resource extraction is not expected to begin for several years, the Turkana oil finds have been celebrated. Oil revenue is seen as a solution to poverty in the region, where nine out of tenpeople live below the breadline. But behind the optimistic rhetoric, the prevailing political and security environment in Turkana County is looking conspicuously similar to that which sparked insurgency in the Niger Delta. If left unaddressed, we could potentially see the region become a theatre for oil conflict.

Corruption and exclusion
If history in the Niger Delta is anything to go by, it is far from guaranteed that the population of Turkana County will benefit from the potential oil revenue. The existence of corruption has already been raised. During a two-day consultative meeting held in the regional capital, Lodwar, in June 2012, community leaders accused local officials of illegally acquiring title deeds, misappropriating community-owned land and using intimidation and violence to displace communities within the region’s oil-rich Ngamia 1 and Twiga South-1 localities.

Equally scathing accusations against Tullow Oil were made. The company was accused of failing to publicise Environment Impact Assessment (EIA) reports, paying insufficient compensation to communities and bribing local councillors and leaders as a means of securing control of resource-rich land. The meeting also identified economic exclusion, accusing Tullow of outsourcing basic services and expertise, denying jobs to local people.

Both the Kenyan government and Tullow Oil have rejected these allegations and committed to greater transparency to ensure local populations can see concrete benefits. However, until commitments have been realised, mistrust and scepticism will remain.

Environmental impact
The potential for further environmental degradation in already fragile ecological conditions is a key concern for those living in the oil zone. An estimated 60% of the region’s inhabitants are pastoralists who have long struggled with seasonal droughts, which led to the deaths of thousands of livestock.

The situation has deteriorated significantly over the last decade and it is estimated that 75% of the population is reliant on food aid. Projects are ongoing in the region to promote the diversification of economic activities, thus limiting dependency on the livestock trade; however, lack of infrastructural development continues to serve as a significant impediment to such initiatives.

While the hydrocarbon industry will undoubtedly produce marked improvements in infrastructure, this is likely to be counterbalanced by the unavoidable ecological impact of oil exploration. Dwindling reserves of fertile land will be appropriated for mining activities, and risks of air, soil and water pollution are significant.

While the government is quick to assure that mechanisms will be in place to offset any adverse ecological effects, environmental degradation is likely to lead to communal antagonism toward the region’s oil industry and, as witnessed in the Niger Delta, could contribute to armed civil insurrection within Turkana County.

Small arms proliferation
Although based in deep-rooted grievances, the role small arms proliferation plays in fuelling internal armed insurrection cannot be overstated. Again, the Niger Delta serves as a timely reminder. In the early-2000s, a thriving small arms trade developed as light weaponry flowed readily over the porous borders of Cameroon, Gabon and Guinea-Bissau. The subsequent militarisation of ethnic groups within the Niger Delta would later serve as important vehicles of the violence directed against the region’s oil industry.

In Turkana County, the availability of light weaponry has been identified as playing a critical role in sustaining communal conflict. An estimated 50,000 small arms are already in circulation, created in part by neighbouring conflicts in South Sudan and Uganda’s Karamoja sub-region. Growing land and resource scarcity has significantly increased tensions, leading to frequent and protracted outbreaks of violence.

Organised crime
For some in Turkana County, access to weaponry has become the only means of socio-economic survival. Organised and well-armed gangs regularly engage in acts of criminality, usually in the form of cattle rustling and highway banditry. If left unchecked, such entities may pose a significant security threat to the region’s future hydrocarbon industry.

As was witnessed in the Niger Delta, oil production has the propensity to support a thriving criminal enterprise. Oil bunkering, the process where oil is siphoned illegally from pipelines, remains rife within the Niger Delta and it is believed that as much as 7% (an estimated 150,000 barrels) of Nigeria’s crude oil is stolen daily. Revenue from oil bunkering is often pumped back into armed groups.

As these groups expand, incidents of oil bunkering become more than an auxiliary threat to the oil sector. Rather, actions escalate into more direct threats, including terrorism, sabotage and kidnapping for the purposes of ransom and extortion.

Oil and water
It is not just oil that lies beneath Turkana County. Recently, massive water reserves have beendiscovered in the region. Many believe this water wealth could provide the solution to water insecurity not just in the drought-blighted regions in the north, but for the entire country.

With both water and oil drawing all eyes to Turkana County, government and commercial stakeholders must act now to ensure the recent discoveries are to the benefit of local populations and to prevent the region becoming a focal point for a resource-driven conflict.

Socio-economic development must come first. Forthcoming oil sector legislation needs to promote development and put the needs of the local population – and particularly the new hopes for the elimination of drought – above those of the oil industry. In addition, stronger policing and judicial structures within Turkana County will mitigate the need for community self-protection and should be focused on small arm control. For the economic stakeholders, there is a responsibility to ensure that the exploration and exploitation of all of the region’s resources is an inclusive process which is subject to stringent controls.

First and foremost, these players will need to manage local expectations by educating affected communities that any potential economic benefits derived from the oil and water discoveries are unlikely to occur overnight. Ultimately, any future industry within Turkana County has to be beneficial to the overall well-being of the region’s inhabitants. If not, communities may very well resort to violence.

By Ryan Cummings, Chief Analyst for Africa for red24.

Oil and Gas in Tanzania: Building For A Sustainable Future

From: Juma Mzuri

A call for a moratorium on new offshore exploration.

Tanzania is on the precipice of an economic evolution with the recent discoveries of gas. We have now confirmed reserves of 43 Trillion Cubic feet (TCF), roughly valued at USD 430bn[i]. Plans for LNG production are moving ahead of schedule. As a result there will be considerable new gas resources available for power generation and other needs for our economy and people including domestic use, petrochemical industries and fertilizer plants.

Our nascent oil and gas industry is set to expand greatly with the upcoming Fourth Licencing Round, which, according to Minister Sospeter Muhongo, is scheduled to be launched in Houston, Texas on September 13. We are now informed that the licencing round has been delayed. This is not enough and more work needs to be done.

The Fourth Licencing Round should be put on hold – postponed for ten years. In this, we echo the demand of Parliament’s Energy and Minerals Committee earlier this year (April 2012, Annual Report of the Committee) and the concerns of other informed citizens. It is very unfortunate that the recommendation to postpone the licensing round, supported by a Parliamentary Committee on Public Investments (POAC) and approved by a Parliamentary resolution, was largely ignored by the Ministry and TPDC. A moratorium will not only allow us to manage our new resources effectively it will also ensure the welfare of future generations. This is something the Government must take seriously.

We, as responsible leaders, have a duty to safeguard this country’s resources for future generations. This will require effective and sustainable management of our oil and gas reserves. The licencing round for the oil and gas offshore blocks announced by the Ministry through TPDC undermines our mandate to the Tanzanian people. If all exploration blocks are being licenced, what will our grand-children and great-grandchildren, who will be more educated and well prepared, do? It is critical that we approach these issues not in a short-term strategic thinking but long-term. We may not be here tomorrow but Tanzania will be.

We are not prepared for an expansion of exploration activity. Current legislation is out-dated and does not mirror the current political and economic status quo. We have no overarching Gas Policy, however progress has been made as both the Gas Act and Policy are currently being crafted. Nevertheless to continue on with a new round of licensing before these policies are complete is irresponsible. More importantly, we do not have legislation that will manage revenues from the sector. We need more time for the policies and legislative acts to be implemented. We will also need more time for institutions to be in place.

A ten-year moratorium will give us the space to develop our capacity in key areas. TPDC can be overhauled to become an active exploration and production company, modelled on Malaysia’s Petronas. Currently, TPDC does not have the capacity or resources to be an effective and strong partner in developing our reserves. These capacity deficits include the ability to conduct basic geological surveys, contract negotiations and management as well as production and processing. A moratorium will allow us to support TPDC to become a strong and reliable trustee and gatekeeper of the country’s resources.

A ten-year moratorium will allow us to build the necessary institutions that we will need to effectively benefit from these resources. These include establishing and supporting a Sovereign Development Fund , to manage revenues; coordinating with our educational institutions to train and foster young Tanzanians so they can confidently work and engage in this industry; and an oversight committee that would include parliamentarians, civil society organizations and local communities. These stakeholders would be mandated to ensure that our resources are used effectively and fairly.

A ten-year moratorium on offshore exploration will ensure that our increasingly young population will enjoy the benefits of our natural resources for generations to come. We kindly request the Government to stop any new licencing of exploration blocks and refocus all efforts into building the capacity to manage the discovered resources, make wise decisions and prepare the nation for a Natural Gas Economy in a timely manner.

Our past mistakes in the mining sector should guide us, as we comprehend the challenges and opportunities presented by the oil and gas sector. The country must first build strong accountability measures, ensure transparency, develop critical human capital and learn from case studies of other gas economies before licencing any new blocks. We need to think strategically and understand the long-game rather than thinking about short-term gains. As a result, we think 10 years will be enough to implement the necessary interventions and build a strong and sustainable oil and gas economy for all Tanzanians.

Kabwe Zuberi Zitto, MP
Shadow Minister of Finance.

Gas and the New Development Opportunity in Mozambique

From: Yona Maro

In the two decades since the end of civil war the country has depended heavily on donors to fund its development. Mozambique has now discovered natural gas deposits in large commercial quantities that could contribute billions of dollars to the economy and catapult Mozambique into place as the world’s third largest exporter of LNG.

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MP and governor linked to poaching; China & Oil

From: Judy Miriga

Good People !!!!

People must go and demand for the Report Card for Public Service delivery with Responsibility and Integrity where all elected leaders with public servant employee must be in compliant as a requirement. It is time for a re-call to those who have failed to measure with the Reform Accord Agreement Mandate.

Gluttonies’breeds chronic passion for adamant corruption and impunity and unless it is forced to stop, it continues to shift gears like what can be seen by NHIF with Professor Anyang Nyongo…………It is important that people establish the truth about Clinix which now has turned to Merridian. It could be possible that, public money and funds are in a flight to unknown destination; most likely the Chinese who claim ownership of Kenya, could be enjoying and swimming in the public funds.

On Checks and Balances, things might change for better. Demand for Integrity, Transparency and Accountability must be exercised thus:

1) Is someone trying to use public money to pay debts incurred for campaign funds?

2) Kenya people have a right to know what is going on with their public resources, funding, facilities and utilities and they must protest to demand for accountability for the same.

3) They must demand about why and how Migingo is in control by the Uganda Government and why the Uganda flag is hoist on the land of Migingo? People must demand for immediate removal of Uganda Police from Migingo Island

4) People must demand to know full report of the Agenda for meeting in Uganda between President Museveni, Raila and Uhuru so to ascertain they are not short-changed and as well they should be informed why Museveni had central interest for controlling Kenya while public interest is undermined

5) People must demand reason why Museveni asked Uhuru Administration to Annex Kismayu to be shared between Somalia and Uganda interest

6) Taxpayer money is used for travelling to China, people need to know if it is for the interest of Kenyans or for special interest

7) Why teachers and nurses have not been paid to-date

8) Why No action or step-down from elected Members with Government employees who are suspects or were found to have a case, have not been relieved from public service to allow thorough investigations and why cases of NHIF have not been brought to justice

9) Why Syokimau cases have not been formalized and compensations made

10) Why Calvin Burgess on Siaya Dominion is still a breach of public interest and people who were forced out of their homes have not been resettled

11) Why people are homeless and landless from being forced out of their land from Land Grabbing and IDPs have not been resettled

12) Why the budget doesn’t seem to balance with budget speech in real life

13) Why there is no running water in the homes and power is sky-rocketing above public means

14) Why Unga with other basic needs have become unaffordable and too expensive beyond means for survival

15) Why only one Unit of Police from one tribe should head the airport

16) Why employment is done under Tribal discrimination

17) Why there are no creation of jobs but growing number of Rebel Groups and thugs are causing terror with threats in the country

18) Why illegal practices like poaching, Gold, Titanium, Diamond with other rare minerals resources from Kenya with the neighboring countries like Congo and Tanzania for example; to pass through illegality with full knowledge aided by politicians; is allowed to go on, while people are mercilessly killed, slaughtered, massacred and are forced out of their dwelling places to face terror, is unacceptable.

19) Why Government system is falling apart and is completely disfunctioning, yet, Government employees are enriching themselves and money is not going to the public coffers

20) Why Politicians have ganged up and are in a conspiracy to continue to defraud the people People must call for a MASS MOVEMENT to demonstrate country-wide against injustices that continue to befall Kenyans from both the former and the present Government so all must be forced for immediate recall with accountability so to recover stolen public wealth and engage responsible leaders with integrity to lead Kenya.

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,

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MP and governor linked to poaching

PHOTO | GIDEON MAUNDU A KWS ranger arranges some of the 775 pieces of ivory tusks which were netted in a container by KRA officers at a private godown in Jomvu on July 3, 2013. The ivory, worth Sh29 million, was in transit to Malaysia from Uganda. NATION MEDIA GROUP


Posted Tuesday, August 13 2013 at 23:30

In Summary

KWS and police say they are investigating the reports linking the three to the illegal ivory trade

Two influential Coast businessmen, a central Kenya MP and a Rift Valley governor have been linked to the runaway poaching and ivory smuggling in the country.

Police officers, Kenya Wildlife Service and Kenya Revenue Authority officials conversant with ongoing investigations said they were pursuing leads linking the three individuals to the illegal ivory trade. (READ: China reiterates pledge to end ivory smuggling)

The three are reportedly part of an international ivory smuggling ring operating in the country. They have been linked to a container full of ivory intercepted at the port of Mombasa last month.

Detectives also discovered that ivory stolen from Mombasa State House was among that in the intercepted container.

On Tuesday, another container full of ivory was intercepted in Singapore and is being shipped back to Mombasa where it reportedly originated. (READ: Kenya a ‘major route for ivory smugglers’)

Police spokesperson Zipporah Mboroki promised to give a detailed statement on investigations into ivory smuggling after getting a briefing from officers handling the case at Mombasa port.

According to Convention on International Trade in Endangered Species of Wild Fauna and Flora (Cites), international organised crime syndicates are behind the killing of elephants and rhinos in Kenya and other African countries.

Cites says the gangs use the latest technology and have collaborators among local communities and security agencies.

Investigations have revealed that the international ring has devised ingenious ways of transporting their loot to evade detection by security agencies.

Their tricks include declaring containers ferrying the smuggled ivory as carrying either timber, fruits, electronics, tyres or other assorted goods. Most of the ivory intercepted in Asia is being traced to the ports of Dar-es-Salaam and Mombasa.

Wildlife experts and research scientists estimate that two elephants are killed per day — the highest number in recent times.

The statistics have sparked outrage among wildlife conservationists and raised fears the animals could become extinct.

KWS says there has been an upsurge in poaching in the last five years with more than 360 elephants killed last year compared to only 45 in 2007.

A recent census revealed that the country’s 35,000 elephant population had suffered a 14 per cent decline due to poaching and drought.

Clinic named in NHIF scam sues for Sh800m

PHOTO | FILE The National Hospital Insurance Fund building in Nairobi. NATION MEDIA GROUP


Posted Tuesday, August 13 2013 at 23:30

In Summary

Medical centre says NHIF made it appear as having received money fraudulently

A medical clinic adversely named in the National Hospital Insurance Fund scandal has sued the agency for close to Sh1 billion.

Meridian Medical Centre filed the suit at the High Court in Nairobi, accusing the health insurer of breach of contract and reputation damage.

Meridian, which runs clinics in major towns, was among medical service providers the NHIF contracted to provide services to its members under the social health insurance scheme.

MPs raised questions about the NHIF’s decision to award contracts for treatment of civil servants under the new scheme to companies that lacked facilities in rural areas. They cited Meridian Medical Centre and Clinix.

The fund cancelled the contracts.

The clinic’s chief executive officer, Dr Peter Wambugu, said the decision by NHIF caused the publication of numerous media reports portraying the clinic as having received money from the NHIF fraudulently, that it was involved in unethical practices and that its centres were sub-standard, unregulated and uninspected.

“This façade has damaged our brand and I state herein that none of these allegations are true,” Dr Wambugu has stated in a witness statement filed in court.

The manner in which the NHIF conducted the termination caused the clinic’s reputation to be vilified in the eyes of the public, hence it was entitled to compensation for loss of business reputation and credibility, said the CEO.

The medical company wants the court to order the health insurer to pay it damages totalling to Sh814,830,341 with interest plus an unspecified amount in general damages for loss of reputation.

Court nod for KRA’s Sh127m tax demand

PHOTO | SALATON NJAU | FILE Kenya Revenue Authority headquarters at Times Tower in Nairobi. NATION MEDIA GROUP


Posted Tuesday, August 13 2013 at 23:30

A judge on Tuesday declined to stop the taxman from demanding Sh127 million from a pharmaceutical company.

Mr Justice David Majanja described as an abuse of the court process a constitutional petition by Beta Healthcare opposing the Kenya Revenue Authority (KRA) tax demand.

The firm had filed the suit at the Constitutional and Human Rights Division of the High Court.

The company, which had lost a case in which it sought similar relief at the court’s Judicial Review Division, claimed in the new suit its rights and freedoms had been violated.

It filed the constitutional petition also at the Court of Appeal to try and overturn the initial High Court ruling, a matter which is still pending.

Justice Majanja said the firm was wrong in asking the High Court to deal with issues pending before the Court of Appeal.

“These proceedings are an abuse of the court process. They are hereby dismissed with costs to the respondents,” he said. He gave Beta Health 14 days to appeal.

Ivory seized in Singapore on way back

PHOTO | LABAN WALLOGA Mombasa Port employees arrange some of the 638 pieces of elephant tusks for weighing after they were impounded in January. Conservationists have raised alarm over the surge in poaching. NATION MEDIA GROUP


Posted Tuesday, August 13 2013 at 23:30

A container suspected to be loaded with ivory is on its way to Mombasa after being seized in Singapore, the Kenya Wildlife Service has revealed.

The cargo, which was exported through the port of Mombasa last month, was intercepted in the Far East port courtesy of the cooperation between Kenyan security and their international counterparts, Mr Arthur Tuda, a KWS director, said.

“The container was among those seized earlier and returned to Kenya. But somehow, it had disappeared. Through our efforts and our foreign security colleagues, we intercepted it and as I speak, it is expected at Mombasa port any time,” he said.

Unconfirmed information from port sources said the container could arrive tomorrow although it was not clear which ship would bring it. Mr Tuda declined to give more information.

Poachers killed

Late July and this month, two containers of ivory were seized at the port destined for Malaysia. Several other suspected containers are still being sought, according to Kenya Revenue Authority

(KRA), Kenya Ports Authority (KPA) and KWS sources.

The KWS director said this month alone, two poachers and two KWS rangers had been gunned down as the war on poaching intensifies.

“Two of our officers including a constable and an inspector were shot dead by poachers within Kipini Conservancy area in Tana Delta as they pursued armed thugs,” he said.

China set to be world’s biggest net oil importer

PHOTO | MARK RALSTON Goods are delivered to a store in Beijing, China. The country is the biggest consumer of energy globally and is set to beat US to the top in oil imports. AFP


Tuesday, August 13 2013 at 16:53

In Summary

Graph on EIA website shows Asian country’s net imports steadily rising, with those of the US falling


China is set to overtake the United States as the world’s largest net oil importer from October, according to US figures, due to a combination of rising Chinese demand and increased US production.

Next year, China’s net oil imports will exceed those of the United States on an annual basis and the gap between them will continue to widen, the US Energy Information Administration (EIA) said.

China is already the biggest energy user in the world and the second-largest oil consumer after the United States.

Chinese demand

The shift has been driven by steady growth in Chinese demand, increased oil production in the United States, and stagnant or weakening demand in the United States market, the EIA said in a report.

A graph on the EIA’s website shows China’s net imports steadily rising, with those of the US falling at a faster rate, and says the crossover point comes in two months’ time.

Growing petroleum production in the US has been largely driven by the increasing use of sometimes controversial hydraulic fracturing, known as fracking.

The technique uses huge amounts of pressurised water mixed with chemicals to crack open rock and release oil and natural gas, making the exploitation of vast shale hydrocarbon reserves economically viable.

It is changing the world’s energy market but it has been banned in other countries such as France due to environmental concerns.

US annual oil output is expected to rise 28 percent between 2011 and 2014 to nearly 13 million barrels per day, while Chinese production is forecast to grow by six per cent over the period, and will stand at just a third of US production in 2014, the EIA said.

Meanwhile, China’s liquid fuel use will increase 13 per cent over the period to more than 11 million barrels per day while United States demand hovers close to 18.7 million barrels per day.

That is below the United States’ peak consumption level of 20.8 million barrels per day in 2005, the EIA added.

China imported 26.11 million tonnes (186.5 million barrels) of crude oil last month and its exports were a mere 0.17 million tonnes, according to official Beijing figures.

The Asian country’s ascendence to the top of the world’s net oil import rankings will have profound impact, an article carried by the China Business News said on Monday.

“China and the US will no longer be pure competitors in the energy sector — China is likely to import energy in bulk from the US,” wrote commentator Li Dongchao.

Balala asked Sh80m bribe to buy house, Cortec says

Analysts have warned that Mr Balala’s action to revoke mining licences of the affected firms may cause a stand-off between the government and investors in the industry, thereby derailing activity in the mining sector. Photo/JENNIFER MUIRURI |FILE NATION MEDIA GROUP


Posted Friday, August 9 2013 at 20:02

In Summary

Through Mr Jacob Juma, Cortec Mining Kenya country boss, firm claims Secretary demanded the cash in exchange for the firm keeping its licence
A company whose licence was cancelled on Monday has sensationally accused Mining Secretary Najib Balala of demanding Sh80 million bribe in exchange for the firm keeping its permit.

In a letter dated July 29, this year, written by Cortec Mining Kenya to the Ethics and Anti-Corruption Commission (EACC) of Kenya, the firm accuses Mr Balala of demanding the money to aid him buy a house to replace his Karen one which he is said to have sold to raise funds for campaign during the last General Election.

“On July 8, Mr Juma drove into Mr Balala’s house at 7:30pm where he found Mr Balala waiting for him as per the appointment through the commissioner of mines. At the said meeting, Mr Balala confirmed to our Jacob Juma, our Kenyan country director, that he required Sh80 million from Cortec Mining Limited to buy a house for he had sold his house in Karen to raise funds for campaign in the just concluded elections,” read part of the letter signed by Cortec managing director David Anderson.

Cortec Mining Kenya has been exploring minerals in Mrima Hills, Kwale County.

Jacob Juma is the controversial businessman associated with Erad Limited, a company that is currently held in a court battle with the National Cereals and Produce Board over a Sh600 million debt. Mr Juma has a substantive shareholding in Cortec Mining Kenya through the company’s two holding firms.

Cortec Mining Kenya is owned 70 per cent by Pacific Wildcat Resources, a publicly listed company at the Toronto Stock Exchange in Canada and 30 per cent by Sterling Securities, a firm registered in the United Kingdom.

On Monday, Mr Balala revoked mining licences of 42 companies on grounds that they were irregularly issued, setting the stage for possible court battles with the affected investors.

Cortec Mining Kenya, the company that is licensed to mine the over $100 billion Niobium and rare earth metal deposits at Mrima Hills in Kwale, South Coast was among the companies whose licences were cancelled.

The government, through the spokesperson of the Presidency Manoah Esipisu requested for about three days to investigate the allegations before issuing an official statement.

Meanwhile, an insider of the EACC told the Saturday Nation that the Cortec letter was indeed received at the antigraft body on July 29, and that investigations were underway, although the commission’s spokesperson noted that he could not confirm the issue yesterday being a public holiday.

In its letter, Cortec managing director David Anderson also said that the company officials met with Justin Muturi, the speaker of the National Assembly where they complained of the Sh80 million bribe demands from Mr Balala and requested him to address the matter though the responsible parliamentary committee.

National Assembly

“On the July 16, we had dinner with the speaker of the National Assembly at the Thai restaurant at the New Stanley Hotel and complained of the Sh80 million bribery demand by the mining minister and requested him to intervene in this bribery demand through the house parliamentary committee that deals with mining,” said Mr Anderson in the letter.

While canceling the 42 licences on Monday, Mr Balala also directed mining companies to give a 21-day notice to his ministry before making any public announcement on findings, in a bid to control a situation where such information may cause a rally in their share valuation at the respective bourses they are listed.

On the day Cortec announced its valuation of the rare earth metal resources at the Mrima Hills late last month, Pacific Wildcat Resources’ share which trades at the Toronto Stock Exchange gained 28 per cent.

The Pacific Wildcat Share was suspended from trading on Tuesday at the request of the company and resumed trading on Thursday where it shed 59 per cent of its value following news of licence cancellation.

Besides the bribe allegations, Cortec Mining Kenya has accused Mr Balala of having interest in awarding the mining licence for rare earth metals and niobium to Chinese investors.

In an earlier telephone interview with the Nation, Mr Balala admitted that he indeed travelled to China and met Chinese investors but dismissed the allegation that he was fronting for the investors.

“Yes I was in China recently and the president will be in China next week. Chinese are investors like any other and they have a right to do business in the country,” he said.

Though found in other countries, the market for rare earth metals, that are used in manufacturing electronic gadgets such as smartphones is about 90 per cent controlled by China.


Analysts have warned that Mr Balala’s action to revoke mining licences of the affected firms may cause a stand-off between the government and investors in the industry, thereby derailing activity in the mining sector.

The Kenya Chamber of Mines on Tuesday, through its chairman Adiel Gitari said that Mr Balala’s action went against the spirit of collaboration between the government and industry players.

USA: Gasland 2

Oscar-nominated filmmaker Josh Fox is teaming up with MoveOn members to screen his new documentary Gasland Part II—a jaw-dropping exposé of the fracking industry. Don’t miss this opportunity to learn the truth about fracking and join the national movement that’s fighting back. You’ll need HBO—or a friend with HBO—to host. Can you host a Gasland Part II Movie Party in Dayton on Sunday, July 14?

Dear MoveOn member,

Imagine being able to light your city tap water on fire.

That’s a reality right now in communities across the country as the fossil fuel industry pushes our country into an all-out—and dangerous—”fracking” boom.1

Want to learn more about fracking and how to stop it? We’ve teamed up with Oscar-nominated filmmaker Josh Fox for a fun, informative, and sobering nationwide event to watch his new HBO documentary Gasland Part II on Sunday, July 14, and you can have a front row seat—in your own living room!

Fracking for gas and oil has been linked to water so contaminated that it catches fire, illness in residential neighborhoods, unusual earthquakes, dead livestock, and tanking property values. And the methane released by fracking is a far more potent global warming gas than carbon dioxide.2

The hopeful news is that MoveOn members are fighting back—and Gasland Part II gives us a powerful new weapon to grow our grassroots movement. That’s why hundreds of MoveOn members are signing up to host a Gasland Part II Movie Party on Sunday, July 14.

Hosting a movie screening is easy and very rewarding. We’ll provide a host guide with special materials, we’ll help you recruit MoveOn members in your area to attend, and we’ll invite you to join director Josh Fox and thousands of other MoveOn members for a special briefing after we view the film together. Because the film is only available right now on HBO, you’ll need an HBO subscription—or a friend with HBO—to host a movie night. If you don’t have HBO, we may be able to match you up with a MoveOn member near you who does.

Will you sign up to host a Gasland Part II Movie Party in Dayton on Sunday, July 14?

No, I don’t have HBO, and I’m not sure I have a friend who does.

Like Josh’s first film, which made “fracking” a household word, Gasland Part II is catalyzing a movement—and if enough of our friends, families, and neighbors work together, we can build the large-scale movement we need to stop fracking. Since the original Gasland debuted in 2010, dozens of cities, towns, and counties—from Pittsburgh, PA to Mora County, NM—have passed local bans on fracking, and MoveOn members in 30 states have launched campaigns to stop this dangerous new form of fossil fuel extraction.3

Gasland Part II is only available on HBO right now, so if you’d like to host but don’t have a subscription, ask your friends or family members who might have HBO to team up with you. If you do have HBO, sign up to help MoveOn members near you have the opportunity to watch this amazing film

I had the opportunity to preview the film, and it gave me the chills. I grew up—and my mom still lives—just a few miles from the largest urban oil field in the country, in Los Angeles, where fracking is happening right now. Neighbors suspect that high rates of cancer are linked to toxic chemicals used in fracking—and they’re organizing to stop the fracking from continuing.4

Earlier this week, in his first speech on climate change, President Obama stuck his neck out to reduce carbon pollution from coal-fired power plants, and MoveOn members have applauded him for that. But he also doubled down on propping up the oil and gas industries, even though scientists have shown that extracting and burning gas and oil could be far worse for the climate than coal.5

Banning fracking is the next frontier in the movement to protect our communities and our kids from climate change—and MoveOn members, with Josh Fox, are leading the way.

When people find out the truth about fracking, they rise up to stop it. The MoveOn community of 8 million members has the power to spread the truth, and organize to win.

Visit here to host a Gasland Part II Movie Party on Sunday, July 14.

Thanks for all you do,

–Victoria, Manny, Bobby, Rosy, and the rest of the team

P.S. Check out the trailer for Gasland Part II here:


1. “Fracking’s coming boom,” Salon, April 24, 2013
2. “Drillers Silence Fracking Claims With Sealed Settlements,” Bloomberg Businessweek, June 6, 2013

“Campaign to Ban Fracking Heats Up,” Culver City Patch, May 17, 2012

“More Evidence Shows Drilling Causes Earthquakes,” Bloomberg Businessweek, April 1, 2013

“The Fracturing of Pennsylvania,” The New York Times, November 17, 2011

“Methane Losses Stir Debate on Natural Gas,” The New York Times, April 12, 2011

3. “NY Local Fracking Bans Upheld By Appeals Court,” Huffington Post, May 2, 2013

4. Ibid., Culver City Patch

5. Ibid., The New York Times

MoveOn Civic Action is entirely funded by our 8 million members—no corporate contributions, no big checks from CEOs. And our tiny staff ensures that small contributions go a long way.

Chip in.

Key political risks to watch in Tanzania

From: Abdalah Hamis

Jobs in Africa –
International Jobs –

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(Reuters) – Tanzanian President Jakaya Kikwete has said his government will not tolerate any attempts by extremists to stoke religious tension following a spate of violent attacks on clerics.

The government has said rising religious tensions pose the biggest threat to peace in East Africa’s No. 2 economy, which has enjoyed relative political stability since independence from Britain in 1961.


Two Christian leaders were violently killed in the predominantly Muslim islands of Zanzibar over the past month in separate attacks. The government has launched an investigation into the incidents and has vowed to prosecute those involved in the violence.

A separatist Islamic group in Zanzibar, Uamsho (Awakening), is pushing for the semi-autonomous island to exit from its 1964 union with mainland Tanzania, which is ruled as a secular country. Supporters of the group have engaged in running street battles with the police in the past, but authorities have not linked the group with the attacks on Christian clerics.

Rioters have also torched several churches in Zanzibar and Dar es Salaam, Tanzania’s commercial capital, in recent months, and Kikwete warned about the rising religious tension in a televised state of the nation address at the end of February.

What to watch out for:

– Will a widespread flare-up of religious tensions occur?


Tanzania wants to become a regional energy hub following major discoveries of natural gasoffshore. But residents of a gas-rich region are threatening to block a major gas pipeline project until they see a bigger share of the benefits. The government has accused opposition leaders of inciting residents of the southern region of Mtwara to reject the pipeline.

The country’s cash-strapped power utility, TANESCO, hopes the 532 km (330 mile) pipeline being constructed with a $1.2 billion Chinese loan will boost generation of cheap electricity and fix the country’s chronic energy shortages.

What to watch Out for:

– Further demonstrations against the pipeline?

– Will the unrest derail gas investments?


Opposition politicians and activists have been calling for a halt to the issuance of new oil and gas exploration licences until Tanzania revamps laws regulating its fast-growing energy sector. The government has unveiled a draft national gas policy and plans to have new legislation in place this year.

Tanzania has called for an international mediator to resolve a long-standing territorial dispute over Lake Malawi. Tanzania claims the shared border runs down the centre of the lake, while Malawi says the border lies at the shores of the lake.

Tanzanian officials say any significant oil or gas finds in the lake could escalate the border issue.

What to watch out for:

– Will there be a delay in issuing more exploration blocks?

– What will happen if the border dispute talks fail?


Tanzania’s governing Chama Cha Mapinduzi (CCM) party has been split by a race to succeed Kikwete, who must step down in 2015 at the end of his second term in office.

The CCM party, in power for over 50 years, is grappling with infighting as rival politicians look to succeed the president, but the squabbles are not along religious or tribal lines. However, several senior ruling party members are jostling for the job, causing a rift in the party.

What to watch out for:

– Will divisions in the party weaken the government? (Editing by Catherine Evans)


Writes Leo Odera Omolo

Kenya, an African nation whose economic mainstay has for many year depended largely on agriculture with no sign of mineral resources is now edged close to joining the league of the oil producing nations following the latest announcement made by the Tullow, the British oil exploration company that it has made more discovery of substantial oil deposits at a second well in the Northern part of the country.

Long regarded by the big explorers, as frontier market, the second discovery by Tullow is now expected to generate ever greater interest in oil exploration in the country-even as companies are expected to start drilling early next year.

Tullow said in a statement that the discovery was made following successful drilling of the new well to the intended depth of 3,250 meters.

According to the announcement the well also holds potential for more oil that will be established once the planned testing to determine the exact amounts of oil in the well is complete. The tests are scheduled to take place in the next two months.

The British oil firm announced that the Twiga South-1 exploration well has encountered 30 meters of neat oil pay with further potential to be assessed on test. A series of flow tests will now be conducted on the well over the 4-8 weeks’” read Tullow’s statement in part.

While making the announcement, the company also said that it will be going back to its first well,Ngamia-1 located on Block 10818 in Turkana County where it made its first discovery in March this year, f to carry out tests in order to establish the quantities of deposits at the well.

Drilling at the Ngamia-1 well was suspended mid this year following what the oil exploration firm Tullow PLC termed as an encounter with an unexpected rock, structure that prevented further drilling at the well.

At the time of the suspension, Tullow announced that it had encountered 143 meters of net oil pay at the well with data indicating that the well could be holding more potential should it b dug to the full depth.

So far Tullow Oil Plc has drilled three wells in Kenya including the Paipai well located on Block 10A whose results are expected by the end of the year. Of the three, two have ended up in discovery.

Since the March announcement that Kenya had struck oil, the country’s oil exploration space have generated interest from leading international oil exploration firms with the data from the Ministry of Energy showing that all the 47 blocks have already been licensed to the various exploration companies.

The demand for licenses to explore in the local oil blocks has also been accelerated by the announcement of a discovery of natural gas in Block 1.8 in Lamu Basin by Apache Corporation which operates the block jointly with Origin Energy Pan-continental Oil and Gas and Tullow Kenya B.V.

However, in just 24 hours after making the announcement, Apache Corp came under the spotlight following what the Energy Ministry termed as malpractice in making its discovery public by the failure to adequately brief the government of the natural gas find before making the announcement.

The announcement by Tullow earlier this week now placed Kenya closer to becoming an oil producing nation which is hoped to provide great relief to the strained current a count and ease fuel-based inflation that has thrived as a result of a huge oil import bill.

Meanwhile newspaper reports emerging from the Ugandan capital, Kampala say the future of Tullow Oil Plc in Uganda still hangs in the balance, as the Irish Oil prospecting firm is reported widely to be temporarily frustrated by the lack of progress on arriving at “a final investment decision” about whether to build an oil pipeline or a refinery.

As senior company official was last week quoted by the newspaper as saying “ Our program for appraisals is complete and the development mean we either pump crude oil or refine it, so there is currently not much work in the field.”

Despite the company’s overall spokesman George Casenove stating in an e-mail response that “Tullow is not planning to exit Uganda and has stated repeatedly that it is committed to Uganda for the longer term,” several well placed sources in the oil industry say the lack of movement on the issue is causing the company to internally consider its exit options, reported the influential Nairobi based weekly publication, the EASTAFRICAN.

‘This is informed by the protracted nature of the disagreement between the oil companies and the government of Uganda on whether crude of refined products are the best way to commercialise oil production in Uganda”, the paper adds.

“Unlike the two other oil companies in Uganda-France’s total and China’s CNOOC, both giants – Tullow does not have the financial resources to play out a prolonged waiting game. According to its interim management statement released on November 14, Tullow says together with its partners, it has presented ‘a joint development plan” to President Museveni. This plan was presented in July, almost four months ago. This plan emphasizes a crude-pipeline option while the Ugandan government prefers a medium sized refinery to begin with..

Consequently, no tangible agreement has been reached ‘We can’t agree on anything,” a senior official of Tullow Oil who requested for his anonymity said.

Other sources the Ugandan capital is a buzz with the word that the industry players have put together a rebuttal of the official document that the Uganda government is relying on in pursuing its refinery option.


Uganda plans to screen and vet foreign workers seeking jobs in the oil and gas sector

Writes Leo Odera Omolo.

The Uganda government has envisaged the plan for screening and vetting all foreigners seeking for jobs oil exploration and prospecting companies operating I the country.

The Daily Monitor has reported that the plans to have the expatriate workers vetted were disclosed to the member of Parliamentary Ad-Hoc committee investigating the oil sector.

The revelation was made by the Commissioner for Petroleum Exploration and Production in the Ministry of Energy, Mr Ernest Rubondo whose department is tasked with the responsibility on the running and management of the oil sector.

He stated that the aim was to ensure that Ugandans do not lose out on jobs to the expatriates. Rubondo was responding to the member of the committee who had questioned the government commitment to ensuring that Ugandans and local fully benefited from the oil sector.

“If a company does not find suitably qualified Ugandan, it will be allowed to have an expatriate to fill the job. But the firm will be compelled to employ a Ugandan on the same job to understudy the foreigner and gain the necessary experience and eventually take over from the expatriate so that more foreigners do not come here,”he said.

Rubondo, however, told the committee members that the biggest challenge for Ugandan companies was lack of capacity to provide goods and services due to lack of funds to enable them compete effectively with foreign firms.

Rubondo further stated,” I believe the companies we have here are improving.”There are 77 wells so far. But all the wells pads were constructed by local firms “There is also a consultancy firm we hired to design a strategy plan on how best to achieve local contents.”

The MPs have been complaining about the lack of local employment in the oil sector, arguing that most of the foreign employees earn higher salaries than the Ugandans on the same job specification.

But Tullouw Oil Company’s president and the chairperson of the Uganda Chamber of Mines and petroleum Mr Elly Karuhanga commented, “This has been the practice because the government has an agreement with foreign firms of hiring specific foreigners with specific expertise.

Karuhanga added,”it is good that the Ugandan are employed to understudy the foreigners, “There are many foreigners whose applications for work permits are still pending.’

He disclosed that Tullouw Oil Company has employed between 15 and 20 per cent foreigners out of it workforce of about 200. Some oil companies are too technical and they are always under pressure to fulfill the immigration requirement to complete heir jobs.