After days of combative debate, Tanzania's parliament has approved a
legal and regulatory framework for developing its blossoming hydrocarbons
industry.
Tanzania estimates it has more than 55 trillion cubic feet of natural
gas but has yet to make oil discoveries.
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, according to Reuters news agency.
The state's share of profit on natural gas production would range from
a minimum 60 to 85 percent, pegged on specific daily gas output.
Members of parliament, mainly from the ruling Chama Cha Mapinduzi
(CCM) party, voted overwhelmingly in favour of the 2015 Petroleum Bill after
the speaker suspended more than 40 opposition lawmakers for shouting in an
earlier debate.
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| Tanzania parliament (seen above) has just passed a disputed petroleum bill |
The bill's opponents said industry players and non-governmental organisations
should be given more time to scrutinise it.
A copy of the draft legislation sets out royalties and other payments
that energy companies will have to pay to the government.
Lawmakers are expected to vote on Monday on two other related bills -
the Oil and Gas Revenue Management and the Tanzania Extractive Industries
(Transparency and Accountability) bills.