World Bulletin/News Desk
Tanzania plans to raise royalties on gas and demand signature bonuses for energy contracts as the east African nation tries to secure bigger benefits from major offshore discoveries.
Tanzania recently tripled its estimated gas reserves and is fast becoming a regional energy hub after finds by Norwegian oil company Statoil, U.S. group ExxonMobil and Britain's BG Group and its partner Ophir Energy.
Energy and Minerals Minister Sospeter Muhongo said royalties on gas production would rise from 12.5 percent to an unspecified level and the new signing fee would be introduced under a new gas policy, masterplan and law now being drafted.
In a presentation to parliament, he said it would take effect in 2012/13.
Tanzania is one of the world's poorest countries. Like its east African neighbours, it is now positioning itself for a gas bonanza.
Last month, it raised its estimate of recoverable natural gas reserves to 28.74 trillion cubic feet (tcf) from 10 trillion.
Muhongo said Tanzania would launch a new licensing round in Houston, Texas, in September for additional oil and gas exploration blocks in its deep-sea area.
"The government will review existing contracts and conduct a detailed evaluation before entering into new production sharing agreements for oil and gas to ensure national interests are upheld," he said.
He said at least 18 global energy companies had spent nearly $920 million on oil and gas exploration.
As part of its plan to get more from its gas, Muhongo said Tanzania would own a new gas pipeline and processing plants. Construction started last week on a 532-km (330 mile) pipeline financed with a $1.2 billion Chinese loan.
The minister said Tanzania hopes to build two gas-powered plants to produce 390 megawatts of power at a combined cost of $598 million - reducing its reliance on hydro electric power which has proved vulnerable to drought.
Loan agreements would be reached in September with the Japan Bank of International Cooperation and South Africa's Absa Bank for construction of one of the plants, meant to produce 240MW, he said.
Forty percent of Tanzania's 1,375 MW capacity came from natural gas by the end of June compared to 1,014 MW a year earlier. Peak demand rose to 820 MW from 730 MW.
Volatility of Turkish lira and recovering oil prices are key issues for revision of inflation forecast
Gross domestic product expanded in the third quarter of the year, although slightly weaker compared with growth of 0.7 percent in the three months to the end of June, when Britain voted in a referendum for Brexit.
Binali Yildirım touts Turkey's strong, stable political administration, saying it will offer incentives for investment
Ministers meet in Ankara to discuss boosting trade volume from $10 billion to $30 billion
The 3 countries are agreed to expand scope of free trade deals by 2017, says Turkish economy minister
Under current conditions, the IEA expects global output to exceed demand until the second half of 2017, Fatih Birol told journalists on the sidelines of an energy conference in Singapore.
The decision comes as the steel arm of the sprawling $100 billion conglomerate struggles to offload its loss-making British assets while its carmaking business continues to be plagued by weak sales.
Water quality and shortages also remain threat to health of many with onset of diseases
Bank expects ‘solid rise in energy prices, led by oil' next year
Bank of Uganda Governor Emmanuel Tumusiime-Mutebile said in a statement the bank would remain open, continue to operate normally and that the central bank would protect deposits.
Four presidents meet, but hopes of diplomatic breakthrough for cease-fire in eastern Ukraine remain low
Having taken years to negotiate, some producers voiced impatience for the deal to now be finally sealed; others simply fail to see why anyone would reject it.
"The value of this project will be $10 billion with a final production level of 600,000 barrels of oil per day," he said in Tehran.
Bangladesh has been one of the worst victims of global warming, with thousands of people being killed by cyclones in recent years that have become more frequent and deadlier.
Exporting Israeli gas via Turkey to Europe is viable option, says Israeli Energy Minister
French energy group EDF views Turkey as 'growth country' with more room for nuclear, renewable and hydro projects, VP says