Yesterday
in the company of my fellow parliamentarians Hon. Nasir from Korogwe,
Hon. David Kafulila from Kigoma South and Hon. Sarah Msafiri Special
seats Morogoro we started our study tour to The Kingdom of Netherlands
to learn more on their oil and gas sector and what best practices we
can draw from them.
Our
first briefing of the day on the Dutch Oil and Gas sector was how
licensing is done and how revenue is collected and managed. We were
informed that the Dutch government receives a total of 11bn Euros as
state revenue from the sector as of last year.
They collect 85% of the total revenue from Oil and Gas from Groningen field (the biggest field in Europe).
Out of this 45% is from taxes collected from Oil and Gas Companies (largely Shell and ExxonMobil)
and 40% from taxes and dividend from the State Oil and Gas company EBN.
For other fields the state receives between 40% and 65% of the total
revenue.
In
all licences except in old ones the state has shares and participates
in companies. The Dutch don’t use Production Sharing System (PSA) as is
the case in Tanzania whereby companies are largely contractors. The
biggest advantage of a PSA system is that the State remains the owner
of the resource.
However,
the revenue implications of either system, Dutch or Tanzanian, are
minimum and largely semantic. It is all about GOVERNANCE – Transparency
and Accountability of the whole sector.
We also had the pleasure of meeting the Deputy Prime Minister Mr. Maxime Verhagen.
Took the opportunity to extend sincere greetings from the people of
Tanzania and reiterate that our Cooperation shall be sustainable and
mature – a partnership of equals, unlike the donor-recipient status quo.
I
reminded him about our proven natural gas reserves so far nears 19
Trillion Cubic Feet(TCF) with the recent discoveries from five wells
owned by the BritishGas/Ophir partnership (11 TCF), StatOil discoveries
from one well (5.3 TCF) and the remaining smaller discoveries at
Songosongo, MnaziBay, Mkuranga and Nyuni in Kilwa district.
I
expressed to the Deputy Prime Minister about our desire to see Tanzania
as a country in Africa whereby resource wealth goes hand in hand with
democracy and development of the people of Tanzania.
Echoing
the vigor and desires of many of the up and coming young leaders in
Tanzania who are committed to creating a new kind of leadership that is
people centered and gives hope to the masses. That it is possible for
an African country to be rich in Oil and Gas and still be properly
governed and is democratic.
And that it is possible to use the country’s vast resource wealth in the development of the people of Tanzania.
That
we don’t want to repeat mistakes of others (including Nigeria which
lost billions of Petrodollars and the Dutch on ‘dutch disease’) and not
repeating the same mistakes as we did in Mining sector.
The
Deputy Prime Minister assured us of the readiness on his government to
support us in developing our Natural gas sub-sector especially through
human resources development.
This
agenda was further discussed at the foreign ministry and it was
generally agreed to establish a Scholarship Program for Tanzanians on
Oil and Gas in order to increase our pool of experts in the sector.
He
suggested that Tanzania uses its natural gas reserves towards
infrastructure development and cutting down on the national debt for the
benefit of the future generation.
He
explained to us the desire of the Netherlands to be a “Gas Hub” of
Europe through developing Ports for LNG like the one in Amsterdam.
The
delegation continues with the visit on Tuesday by visiting various
natural gas facilities. We are determined to learn and transfer the
knowledge into our new policy for Natural gas, Gas Master plan and
Petroleum Revenue management legislations and strategies.
I am optimistic out of existing relatively murky frustrations. Tanzania has a great FUTURE ahead.
We
must build the future we want. Our preparedness and building oversight
institutions are fundamental for proper managing of these resources.
Committed
to working towards a democratic and prosperous United Republic of
Tanzania that is endowed with massive gas reserves Natural Gas (United republic of Natural Gas).
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