DAR ES SALAAM, June 18, 2015 – Tanzania will seek as much as an 85 percent share in profit from oil and gas production, according to a draft law being debated in parliament, Bloomberg reported today.
The Tanzanian government proposes taking a maximum of 85 percent for onshore gas production and 60-80 percent for onshore gas production, according to the Petroleum Act 2015, which was distributed by the country’s Ministry of Energy on Thursday.
Meanwhile, the share of oil profit is set at between 50 percent and 70 percent, depending on quantity and source of extraction.
Tanzania’s gas reserves are estimated to be around 1.56 tcm, the second-largest in East Africa after Mozambique, which are estimated to be around 4.25 tcm.
The companies that operate in Tanzania include ExxonMobil, Norwegian multinational Statoil, UK exploration company Ophir Energy, Brazil’s state-run oil operator Petrobras and UK upstream player BG Group, which is currently in the process of being acquired by Shell for around $70 billion.