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CIVIL SOCIETIES MONITORING AND REPORTING OF THE ENFORCEMENT,
COMPLIANCE AND IMPLEMENTATION OF
OIL AND GAS LAWS AND POLICIES1. BackgroundOil and gas
exploration in Tanzania has been conducted from time to time over
the last 60 years. Natural gas discoveries were made at Songo Songo
Island and Mnazi Bay in 1974 and 1982 respectively. The potential
for the discovery of oil and gas in Tanzania is predicted to be
very high; indicatively this is shown in terms of exploration
licenses as of December 2012. Petroleum and natural gas resources
are being discovered rapidly at increasing rates in East African
region. Due to such discoveries, petroleum companies have
increasingly been flocking into the region to explore and tap into
the opportunities.
Oil and natural gas exploitations will require major
infrastructure developments, including among others multiple
land-based and marine pipelines and large plants for both storage
and transportation of Liquefied Natural Gas. While such development
brings crucial opportunities to the government and the people,
through employment, improved livelihoods and possible poverty
reduction, it also brings formidable risks both to people and the
environment.
With respect to the environment, this is attributed to the fact
that there is an overlap between the most world diverse, valuable,
fragile and vulnerable ecosystem with current and future oil and
gas exploration development. Many areas are being divided up into
exploration blocks, including areas that were gazzeted or
designated as protected areas that provide support to riparian
communities through provision of ecosystem services.
The issue of resources curse and Dutch diseases is well
addressed in the more recent policy documents; however the more
emphasis should be directed on the policy implementation phase.
Meanwhile, the environment challenges in particular, is attributed
to the fact that there is an overlap between the most worlds
diverse, valuable, fragile and vulnerable ecosystem with current
and future oil and gas exploration development. Many areas both
seascapes and landscapes are being divided up into exploration
blocks, including areas that were designated as protected areas
that provide support to riparian communities through provision of
ecosystem services.
As there is a political will for exploration and exploitation of
oil and gas in Tanzania like in other developing countries such as
Mozambique, Uganda and Kenya, it is our belief that there would
Policy brief no. 1
2015
TANZANIA
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be proactiveness towards maintaining ecosystem integrity
meanwhile exploring opportunities to combat energy poverty in the
country.
There have been initiatives to build the capacity of the civil
society organizations and networks on oil and gas through training,
information sharing, and awareness raising. Moreover, analysis of
the laws, regulations, and policies on oil and gas extraction has
been carried out to determine the existing weaknesses in order to
undertake policy and law reforms. The main purpose of this Policy
Brief is to underscore the role and contribution of civil societies
in the monitoring and reporting the enforcement, compliance and
implementation of oil and gas laws and policies in Tanzania.
2. ContextLike any other developmental projects, oil and gas
exploration and production has the potential to cause severe
environmental degradation, not only to the physical and marine
environment, but also to the health, and social-cultural structure
of local communities. Oil spills, Gas flaring, damaged land and
deforestation during 3D seismic studies, water pollution and
habitat destructions have all been recorded at various times and
places in the world. Though these impacts have not happened in
Tanzania, ecosystem sensitive areas such as Mnazi Bay and Mafia
Marine Park, which is proximate to gas fields, are potentially
exposed to risks. In recent times the social impact of operations,
especially in remote communities, has also attracted attention.
The broad environmental issues faced by the oil and gas
exploration and production are manifested at both local and global
levels. They include among others habitat protection and
biodiversity, air emissions, marine and freshwater discharges,
incidents and oil spills, and soil and groundwater
contamination.
The development of oil and gas poses new challenges to the
Government relating to management of the fast growing natural gas
and oil industry. These include Policy, legal and institutional
frameworks to manage the industry more effectively; human resources
with the requisite skills and knowledge in the industry;
development of natural gas infrastructure; development of domestic
market and managing export market; revenue management; high public
expectations; and health, safety and environment protection.
It is expected that the development of natural gas fields will
generate potentially large flows of revenue to the government. If
this happens and the revenue is used efficiently, it would
substantially contribute to poverty reduction, contribute to
national development and help Tanzania to successfully implement
inclusive economic growth.
Box 1: Breaking the MouldIt is recognized worldwide that the
transition to substantially increased natural resource dependence
is far from straightforward and places considerable demands on
government and key stakeholders to collaborate in developing a
coherent legal and policy framework for the management of the
resource windfall.
To successfully benefit from the oil and gas revenues, close
attention is required across a range of areas, including: fiscal
and monetary policy formulation; industrial and trade policy;
skills, training
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and employment; and the development of robust and transparent
institutional foundations for effective inclusive growth. Similarly
if not well handled the blessings may turn into a resource
curse.
3.LegalandPolicyramificationsReferring to the recent scandal
over the disclosure of 26 oil and gas related contracts, as was
needed by PAC-Parliamentary Public Account committee, it has been
noted that there are gaps in the legal and policy framework for oil
and gas that need to be addressed . For instances, It has been
noted that among others, the Petroleum (Exploration and Production)
Act of 1980 vests powers to the Minister responsible for oil and
gas resources to issue exploration and development licenses and
contracts.
The Natural Gas Policy 2013 has recently been endorsed thus
lacking the enforcing legislation, which is yet to be put in place.
It is yet to be well aligned with the Constitution, which is under
formulation.
4.RoleofCivilSocietiesThe Civil Society organizations and
networks play a great role and positively contribute in the
monitoring and reporting of the enforcement and implementation of
oil and gas laws and policies. This could be achieved through the
following:- Raising awareness, building competency and skills of
stakeholders on Oil and Gas. Participatory planning, initiating and
conducting Oil and Gas research and advocacy activities. Designing
and formulating Environmental Education themes and methods for
Monitoring Oil
and Gas exploration and development activities. Developing
training programmes for Oil and Gas Practitioners and monitor the
results. Developing programmes for facilitating good relationships
between Oil and gas companies
and local communities. Training the Media personnel at the
grass-root on basic environmental knowledge and skills in
relation to the oil and gas industry. Information dissemination
on oil and gas and appropriate environmental management
safeguards and best practices. Establishing mechanism for
monitoring of oil and gas activities compliance as stipulated
in
EMP-Environmental Management plans on the EIA report and;
Developing and operationalizing environmental education monitoring
and evaluation
mechanism for monitoring oil and gas activities compliance with
the international and national standards.
5.Challenges
Box 2: Challenges faced by the oil and gas industry in Tanzania
Policy, legal and institutional frameworks to manage the industry
more effectively; Human resources with the requisite skills and
knowledge in the industry; Development of domestic market and
managing export market; Revenue management; High public
expectations; and Health, safety and environment safeguards.
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6.Policyrecommendationsa) Enact the natural gas bill to
implement the natural gas policy of Tanzania (2013) and put in
place its Regulations.b) Build capacity to Civil Society
Organizations (CSO) coalitions and networks.c) The government need
to implement initiatives geared towards building the necessary
human resources with the requisite skills and knowledge in the
natural gas industry.d) Investing companies should undertake and
match their development interventions with
community priority plans. e) The promotion of Public Private
Partnerships (PPPs) to enable investments in the natural gas
industry should be given impetus.f) The need for a regulatory
environment that fosters transparency concerning all revenues
and in negotiation and award of contracts;g) The importance of
balancing petroleum production with conservation of the
different
exploration areas unique biodiversity, and wider environmental
wellbeing.h) Developing policy and guidelines on corporate
responsibility effacement and compliance.i) Ensure anticipation of
wealth from Tanzanias oil and gas does not intensify land
insecurity
and other conflicts; and j) Promoting public participation and
building local capacity to understand the oil and gas
sector.
Forfurtherinformationpleasecontacts;Novati Kessy, Program
Officer, Oil and Gas, WWF Tanzania country office, Plot 350, Regent
Estate Mikocheni, P.O.Box 63117, Dar es Salaam, Tanzania, Email.
[email protected], [email protected], Website.www.panda.org
AcknowledgementIt is worth to note that most of the information
which was analyzed, documented and used to prepare this Policy
Brief was collected from the consultations and interviews conducted
to members of Mazingira Network (MANET), and Mtwara Region
Non-Governmental Organizations networks (MRENGO). We also feel
indebted if we would not appreciate the insightful comments which
were given by the Oil and Natural Gas Environmental Alliance-ONGEA
during the stakeholders meeting workshop which was held in Bagamoyo
on 10th to 12th December 2014. Their views and opinions helped to
recast and revisit the contents of this Policy Brief.
DisclaimerThe statements, opinions, and ideas used in this
Policy Brief have been retrieved and paraphrased from desk review
research studies done by Environmental and Climate Change
Consultant, Dunny Geo-informatics Consultancy and Services
companies respectively. The views presented in this document dont
reflect the official positions of the organisations or individuals
involved.
________________World Wide Fund for Nature (WWF) is one of the
worlds largest and most respected independent conservation
organizations. WWFs mission is to stop the degradation of the
earths natural environment and to build a future in which humans
live in harmony with nature.
[email protected]
