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TANZANIA

Policy brief no. 1

2015

CIVIL SOCIETIES MONITORING AND REPORTING OF THE


ENFORCEMENT, COMPLIANCE AND IMPLEMENTATION OF
OIL AND GAS LAWS AND POLICIES
1. Background
Oil and gas exploration in Tanzania has been conducted from time to time over the last 60 years.
Natural gas discoveries were made at Songo Songo Island and Mnazi Bay in 1974 and 1982
respectively. The potential for the discovery of oil and gas in Tanzania is predicted to be very high;
indicatively this is shown in terms of exploration licenses as of December 2012. Petroleum and
natural gas resources are being discovered rapidly at increasing rates in East African region. Due to
such discoveries, petroleum companies have increasingly been flocking into the region to explore
and tap into the opportunities.
Oil and natural gas exploitations will require major infrastructure developments, including among
others multiple land-based and marine pipelines and large plants for both storage and transportation
of Liquefied Natural Gas. While such development brings crucial opportunities to the government
and the people, through employment, improved livelihoods and possible poverty reduction, it also
brings formidable risks both to people and the environment.
With respect to the environment, this is attributed to the fact that there is an overlap between the
most world diverse, valuable, fragile and vulnerable ecosystem with current and future oil and gas
exploration development. Many areas are being divided up into exploration blocks, including areas
that were gazzeted or designated as protected areas that provide support to riparian communities
through provision of ecosystem services.
The issue of resources curse and Dutch diseases is well addressed in the more recent policy
documents; however the more emphasis should be directed on the policy implementation phase.
Meanwhile, the environment challenges in particular, is attributed to the fact that there is an overlap
between the most worlds diverse, valuable, fragile and vulnerable ecosystem with current and
future oil and gas exploration development. Many areas both seascapes and landscapes are being
divided up into exploration blocks, including areas that were designated as protected areas that
provide support to riparian communities through provision of ecosystem services.
As there is a political will for exploration and exploitation of oil and gas in Tanzania like in other
developing countries such as Mozambique, Uganda and Kenya, it is our belief that there would

be proactiveness towards maintaining ecosystem integrity meanwhile exploring opportunities to


combat energy poverty in the country.
There have been initiatives to build the capacity of the civil society organizations and networks
on oil and gas through training, information sharing, and awareness raising. Moreover, analysis of
the laws, regulations, and policies on oil and gas extraction has been carried out to determine the
existing weaknesses in order to undertake policy and law reforms.
The main purpose of this Policy Brief is to underscore the role and contribution of civil societies in
the monitoring and reporting the enforcement, compliance and implementation of oil and gas laws
and policies in Tanzania.
2. Context
Like any other developmental projects, oil and gas exploration and production has the potential
to cause severe environmental degradation, not only to the physical and marine environment, but
also to the health, and social-cultural structure of local communities. Oil spills, Gas flaring, damaged
land and deforestation during 3D seismic studies, water pollution and habitat destructions have all
been recorded at various times and places in the world. Though these impacts have not happened
in Tanzania, ecosystem sensitive areas such as Mnazi Bay and Mafia Marine Park, which is proximate
to gas fields, are potentially exposed to risks. In recent times the social impact of operations,
especially in remote communities, has also attracted attention.
The broad environmental issues faced by the oil and gas exploration and production are manifested
at both local and global levels. They include among others habitat protection and biodiversity, air
emissions, marine and freshwater discharges, incidents and oil spills, and soil and groundwater
contamination.
The development of oil and gas poses new challenges to the Government relating to management of
the fast growing natural gas and oil industry. These include Policy, legal and institutional frameworks
to manage the industry more effectively; human resources with the requisite skills and knowledge
in the industry; development of natural gas infrastructure; development of domestic market and
managing export market; revenue management; high public expectations; and health, safety and
environment protection.
It is expected that the development of natural gas fields will generate potentially large flows of
revenue to the government. If this happens and the revenue is used efficiently, it would substantially
contribute to poverty reduction, contribute to national development and help Tanzania to successfully
implement inclusive economic growth.
Box 1: Breaking the Mould
It is recognized worldwide that the transition to substantially increased natural resource
dependence is far from straightforward and places considerable demands on government and
key stakeholders to collaborate in developing a coherent legal and policy framework for the
management of the resource windfall.
To successfully benefit from the oil and gas revenues, close attention is required across a range of
areas, including: fiscal and monetary policy formulation; industrial and trade policy; skills, training

and employment; and the development of robust and transparent institutional foundations for
effective inclusive growth. Similarly if not well handled the blessings may turn into a resource curse.
3. Legal and Policy ramifications
Referring to the recent scandal over the disclosure of 26 oil and gas related contracts, as was
needed by PAC-Parliamentary Public Account committee, it has been noted that there are gaps in
the legal and policy framework for oil and gas that need to be addressed . For instances, It has been
noted that among others, the Petroleum (Exploration and Production) Act of 1980 vests powers to
the Minister responsible for oil and gas resources to issue exploration and development licenses
and contracts.
The Natural Gas Policy 2013 has recently been endorsed thus lacking the enforcing legislation,
which is yet to be put in place. It is yet to be well aligned with the Constitution, which is under
formulation.
4. Role of Civil Societies
The Civil Society organizations and networks play a great role and positively contribute in the
monitoring and reporting of the enforcement and implementation of oil and gas laws and policies.
This could be achieved through the following: Raising awareness, building competency and skills of stakeholders on Oil and Gas.
Participatory planning, initiating and conducting Oil and Gas research and advocacy activities.
Designing and formulating Environmental Education themes and methods for Monitoring Oil
and Gas exploration and development activities.
Developing training programmes for Oil and Gas Practitioners and monitor the results.
Developing programmes for facilitating good relationships between Oil and gas companies
and local communities.
Training the Media personnel at the grass-root on basic environmental knowledge and skills in
relation to the oil and gas industry.
Information dissemination on oil and gas and appropriate environmental management
safeguards and best practices.
Establishing mechanism for monitoring of oil and gas activities compliance as stipulated in
EMP-Environmental Management plans on the EIA report and;
Developing and operationalizing environmental education monitoring and evaluation
mechanism for monitoring oil and gas activities compliance with the international and national
standards.
5. Challenges
Box 2: Challenges faced by the oil and gas industry in Tanzania
Policy, legal and institutional frameworks to manage the industry more effectively;
Human resources with the requisite skills and knowledge in the industry;
Development of domestic market and managing export market;
Revenue management;
High public expectations; and
Health, safety and environment safeguards.

6. Policy recommendations
a) Enact the natural gas bill to implement the natural gas policy of Tanzania (2013) and put in
place its Regulations.
b) Build capacity to Civil Society Organizations (CSO) coalitions and networks.
c) The government need to implement initiatives geared towards building the necessary
human resources with the requisite skills and knowledge in the natural gas industry.
d) Investing companies should undertake and match their development interventions with
community priority plans.
e) The promotion of Public Private Partnerships (PPPs) to enable investments in the natural gas
industry should be given impetus.
f) The need for a regulatory environment that fosters transparency concerning all revenues
and in negotiation and award of contracts;
g) The importance of balancing petroleum production with conservation of the different
exploration areas unique biodiversity, and wider environmental wellbeing.
h) Developing policy and guidelines on corporate responsibility effacement and compliance.
i) Ensure anticipation of wealth from Tanzanias oil and gas does not intensify land insecurity
and other conflicts; and
j) Promoting public participation and building local capacity to understand the oil and gas
sector.
For further information please contacts;
Novati Kessy, Program Officer, Oil and Gas, WWF Tanzania country office, Plot 350, Regent
Estate Mikocheni, P.O.Box 63117, Dar es Salaam, Tanzania, Email. NKessy@wwftz.org, info@
wwftz.org, Website.www.panda.org
Acknowledgement
It is worth to note that most of the information which was analyzed, documented and used
to prepare this Policy Brief was collected from the consultations and interviews conducted to
members of Mazingira Network (MANET), and Mtwara Region Non-Governmental Organizations
networks (MRENGO).
We also feel indebted if we would not appreciate the insightful comments which were given
by the Oil and Natural Gas Environmental Alliance-ONGEA during the stakeholders meeting
workshop which was held in Bagamoyo on 10th to 12th December 2014. Their views and
opinions helped to recast and revisit the contents of this Policy Brief.
Disclaimer
The statements, opinions, and ideas used in this Policy Brief have been retrieved and paraphrased
from desk review research studies done by Environmental and Climate Change Consultant,
Dunny Geo-informatics Consultancy and Services companies respectively. The views presented
in this document dont reflect the official positions of the organisations or individuals involved.
________________
World Wide Fund for Nature (WWF) is one of the worlds largest and most respected
independent conservation organizations. WWFs mission is to stop the degradation of the
earths natural environment and to build a future in which humans live in harmony with nature.
info@wwftz.org