Zanzibar. Zanzibar President Hussein Ali Mwinyi on March 20 commissioned the first round of auction of oil and gas blocks to investors as a step towards implementing the blue economy agenda.
Speaking during an event held at the Golden Tulip Hotel, Dr Mwinyi said the government had reviewed the legal and contractual frameworks around oil and natural gas before launching the round, to attract investors into the hydrocarbon industry.
“We made the review to create a friendly investment environment in the oil and gas sector here in Zanzibar because companies need to invest in a safe place where they can be profitable,” said Dr Mwinyi, assuring investors that the government was committed to creating a favourable investment environment.
The launch opened up oil and gas exploration activities in the new offshore blocks.
The eighth-phase government has embarked on the “blue economy” policy, which places the oil and gas sector among the main priority areas.
“The government believes that the blue economy has many opportunities to promote economic development plans that aim at reducing poverty and creating employment opportunities,” said Dr Mwinyi.
He said that the exploration activities for oil and gas in Zanzibar started in the 1950s with the British Petroleum (BP) Company, in collaboration with Shell, conducting detailed investigations and drilling two wells on both sides of Unguja and Pemba, which were completed in 1963.
He said that after the union of Tanganyika and Zanzibar in 1964, oil and gas exploration activities were under the government of the United Republic of Tanzania through the Tanzania Petroleum Development Corporation (TPDC).
Various studies were conducted on the mainland and offshore of Zanzibar, leading to the identification of blocks in Zanzibar.
The Minister for Blue Economy and Fisheries in Zanzibar, Mr Shaaban Ali Othman, said eight blocks out of the 12 existing blocks were launched yesterday.
“We are waiting for applications from investors for the eight blocks that are up for grabs in the next 10 years,” he said, welcoming investors.
He said both the laws governing the sector and the production sharing agreement (PSA) model were reviewed to facilitate investment.
The chief executive officer of the Zanzibar Petroleum Regulatory Authority (ZPRA), Mr Adam Abdallah Makame, said that within six months, they will provide an opportunity for investors to submit applications and purchase data about the blocks.
The regulator will then evaluate the applications and find an investor who can invest in the blocks.
He said that in searching for a company to invest in the blocks, the government prioritises expertise and also provides an opportunity for more than one company to collaborate to apply for one block.
“In our analysis, we focus more on professional capability than financial capacity,” he said.
The chief executive officer of the Zanzibar Petroleum Development Corporation (ZPDC), Mr Mikidadi Alli Rashid, said the investors will sign the PSA model with the minister and ZPDC to officially start oil and gas exploration and drilling.
He said that after signing the agreement, they will negotiate to determine what each party will get from each block.
“So far, not less than five companies have shown interest in investing in Zanzibar,” said Mr Rashid without naming the companies.
In managing expectations, he urged residents to be patient, as oil and gas exploration and potential development take time.
Share this news
This Year's Most Read News Stories
Mbeto on Mwinyi: He created today’s affluent people
The CCM Secretary of Ideology and Publicity (Zanzibar), Mr Khamis Mbeto Khamis, said the late President Ali Hassan Mwinyi was the architect of the current class of affluent people.Continue Reading
CCM ready to task state organs on Zanzibar Airport deal
Ruling party Chama Cha Mapinduzi-Zanzibar has said it is ready to task state organs to investigate some of the claims against its government that have been raised by opposition politicians on the Abeid Amani Karume International Airport (AAKIA).Continue Reading
Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
ALSO READ: NBC participates in TFF 2023/24 awards, promises to enhance competition
On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
