Arrangement to auction gas, oil blocks faulted

BY EMMANUEL ONYANGO

26th October 2013

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A Dar es Salaam-based businessman has blamed what he termed as an ongoing strategy to embrace foreigners who vie for the country’s citizenship to qualify for easy access exploitation of oil and gas reserves.

Eric Mashauri said this was happening at a time the government was ignoring local companies to undertake small scale exploration activities.

Mashauri, the chief executive officer of Travel Partner in the city, said: “There are some foreigners who have opened oil companies purposely to get a chance to exploit the natural gas and oil reserves in the country.”

He said the government has issued permits to many foreign companies to undertake small scale exploration activities. “This is an aspect to foretell transfers of huge amounts money to foreign lands.” He said he doubted there would be sustainable investment by foreigners that are usually guided by great interest to benefit from the sector.

A roundtable discussion by chief executive officers on the subject is being held here today.

If the nation is not careful today the future generations would remain in poverty when the natural reserve is gone, he warned.

He said all tenders should be given to local companies which have been registered in the country and not foreigners who come with their companies, and once they are well established they are likely to transfer money back to their mother countries.

Hopes of individual Tanzanians to own gas blocks slated for auction were dashed on Wednesday here after the Energy and Minerals ministry decided that the Tanzania Petroleum Development Corporation (TPDC) would stand in on their behalf.

Minster Sospeter Muhongo said there would be no opportunity for individual Tanzanians to own the eight gas blocks due for sale because they would be represented by TPDC, which has the mandate to represent them in the gas exploration process.

Muhongo said the firms that would win the tenders would work under the corporation by following the laid down regulations and enacted policies, adding that the government would assist TPDC to run its services commercially.

He added that shares would be apportioned between investors and TPDC, whereby the latter would play the major role in regulating all matters pertaining to the gas sector.

Meanwhile, the Tanzania Private Sector Foundation (TPSF) has expressed shock at the ‘sidelining of locals’ in the auction of natural gas blocks, proposing a framework that would ensure Tanzanians to benefit from the resources.

They said it was misleading to say Tanzania lacked local entrepreneurs capable of investing in the natural gas business.

SOURCE: THE GUARDIAN