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Oil for Development 2016 Annual Results

Norwegian development assistance played an instrumental role in the mapping and development of Tanzania’s natural gas resources discovered in the 1970s, which eventually led to the commercialisation of two fields - Songo Songo (2004) og Mnasi Bay (2006). These fields today constitute approximately 40 percent of the country’s electricity production.

The large scale discoveries of natural gas in recent years have raised the estimated gas reserves in Tanzania to more than 55 trillion cubic feet. The first phase of the OfD programme agreement with the Tanzanian government expired in December 2015. An extension of activities within the existing budget was approved, allowing the programme to continue in 2016.

Tanzanian and Norwegian authorities have, in parallel with programme implementation in 2016, prepared for a new programme phase with an anticipated start-up in the first half of 2017.

Key programme facts:

Disbursed 2016: 31.2 million NOK

Tanzanian implementing institutions:
Ministry of Energy and Minerals, Petroleum Upstream Regulatory Authority, Tanzania Petroleum Development Cooperation, Prime Minister’s Office (Labour and Employment), Occupational Safety and Health Agency, Vice President’s Office – Environmental Division, National Environment Management Council, Surface and Marine Transport Regulatory Authority, Ministry of Lands, Water, Energy and Environment (Zanzibar), Zanzibar Environmental Management Authority, and Zanzibar Maritime Authority.

Norwegian implementing institutions:
Ministry of Petroleum and Energy, Norwegian Petroleum Directorate, Norwegian Environment Agency, Norwegian Coastal Administration, Petroleum Safety Authority Norway

Civil society organizations supported:
Natural Resource Governance Institute, World Wildlife Foundation, Oxfam America, Thomson Reuters Foundation, Norwegian Church Aid
Research support: Twinning arrangement between REPOA - Policy Research for Development, and CMI - Chr. Michelsen Institute.

Key achievements of programme activities

Enhanced legal and regulatory framework:

  • A National Oil Spill Contingency Plan was developed by the Surface and Marine Transport Regulatory Authority, in close cooperation with other relevant institutions on Tanzania Mainland and Zanzibar. The plan includes Tanzania Mainland and Zanzibar under one common framework for oil spill contingency planning and response.
  • Environmental Impact Assessment guidelines for the oil and gas sector were developed. The National Environment Management Council (NEMC) coordinated the process, and the key sector stakeholder institutions were involved in the development of the guidelines. The work is not yet finalised or approved, awaiting clarification of roles and responsibilities.
  • An oil and gas policy and corresponding bill for Zanzibar was drafted by the Ministry of Lands, Water, Energy and Environment, in close cooperation with other relevant institutions. The bill was approved by the House of Representatives and signed by the President in 2016.
  • A Model Production Sharing Agreement for Zanzibar was developed by relevant Zanzibar institutions. The Agreement was approved by the House of Representatives in January 2017.

Increased institutional capacity:

  •  The Petroleum Upstream Regulatory Authority (PURA) was established in 2016. This marks an important milestone, building on a series of programme achievements over the entire programme period.
  • For the first time, a joint exercise in oil spill contingency and response between Tanzania Mainland and Zanzibar took place in November 2016. By participating in the exercise, all stakeholders in the national oil spill response architecture learned more about their respective roles and responsibilities.

Increased transparency and accountability:

  •  An online coastal environmental atlas was developed by NEMC, providing wider public access to vital environmental information. Read more here

Read the full 2016 annual report for Oil for Development here.