Tanzania's Parliament Approves 2015 Petroleum Bill
After days of contentious debate, Tanzania's parliament has finally approved a legal and regulatory framework for developing its nascent hydrocarbons industry.
Under the terms of the bill, energy companies will pay a 12.5 percent royalty for oil and gas production in onshore or shelf areas and 7.5 percent for offshore output.
The state's share of profit on natural gas production would range from a minimum of 60 to 85 percent, pegged on specific daily gas output.
Tanzania has become a new oil and gas frontier after a string of discoveries that producers hope to exploit to supply energy-hungry Asian markets.
Tanzania estimates it has more than 55 trillion cubic feet of natural gas but has yet to make oil discoveries.
Credit: Corporate-digest.com
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