BY THE GUARDIAN REPORTER
25th November 2013
He says discouraging the locals from investing in such a sector and instead embracing foreign firms is the same as embracing colonialism.
“Embracing foreign investors while discouraging the locals – who have financial capacities to invest in the oil and gas sector, is the same as silently embracing colonialism…it is important to prioritise the locals and evaluate their ability after some time. If they cannot invest 100 percent, then foreign investors can be brought on board,” the legislator told a public rally in Majengo ward here on Saturday.
Ndesamburo said it is false to say Tanzanian business persons including Dr Reginald Mengi Executive Chairman for IPP who is also Tanzania Private Sector Foundation Chairperson, Mohamed Dewji and others have no financial muscle to invest in the oil and gas sector.
The MP said Energy and Minerals ministry intentions are to enable the foreign firms own the national resources instead of enabling the locals.
Ndesamburo said based on their financial capacity, the local businesspersons are supposed to have the right to purchase the oil and gas blocks.
“Mengi fights for and defends the rights of most Tanzanians in many areas and at times he does more than what other elected officials do. And yet business tycoons like him are told to enter into partnership with Tanzania Petroleum Development Corporation (TPDC) if they are interested in investing in oil and gas. These businesspersons if they join forces have the ability to exploit oil and gas for the benefit of Tanzanians,” he said.
According to the Chadema legislator, the country is not supposed to be led by ministers like Energy and Minerals’ Prof Sospeter Muhongo who is alleged to say that Tanzanians have no financial capital to own the oil and gas blocks.
He said Prof Muhongo has failed to understand that some foreign investors will use Tanzania’s land to get capital.
In another development, on Saturday Tanzania Petroleum Development Corporation (TPDC) said local companies or foreign ones in which locals have shares will now be given priority in the allocation of oil and gas blocks.
The announcement by TPDC appears to walk the talk, as far as the newly released government policy on gas is concerned. The policy, among other things, wants locals to be involved in oil and gas business.
TPDC Acting Director Engineer Joyce Kisamo said in the city on Saturday that following the launch of the seven deep sea offshore blocks and the Lake Tanganyika North Offshore Block, the government would give priority to local investors.
TPDC says the entire process of exploration and production would be undertaken under a Production Sharing Agreement (PSA) system. On October 25, this year, President Jakaya Kikwete launched the fourth licensing round for oil and gas in deep sea and in the Lake Tanganyika north offshore exploration.
The blocks were identified as Block 4/2A (3630.5 sq km); Block 4/3A (2620.3 km sq); Block 3/3B (5035.0 km sq); Block 4/4A (2963.3 km sq), Block 4/4B (3048.9 km sq); Block 4/5A (9670.2 km sq) and Block 5/5B (9670.5 km sq).
TPDC also released the specific cost which is approximated to be used in all exploration and production that the winning companies would have to foot in drilling of the wells for research, drilling to confirm the reserves available as well as drilling for developing confirmed reserves.
The following are the minimum approximate costs for the exploration and development stage; $10m for physical and geographical evaluation cost; $5m for environmental evaluation; $12m for data gathering; $510m for drilling of three wells for research, drilling of six wells for evaluation $900m and $1000m for drilling of 10 development wells.
All this sums up to $2,437m, excluding the cost of setting up the infrastructure for facilitating production, recycling, selling and other costs, the TPDC chief said.
SOURCE: THE GUARDIAN
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