Draft 06.06.2014
TRAINING NEEDS ASSESSMENT REPORT
FOR
THE GOVERNMENT AUTHORITIES OF TANZANIA WORKING WITH THE
UPSTREAM PETROLEUM SECTOR
TNA –Tanzania Upstream Petroleum Sector
Contents
1.
Executive summary and main recommendations ........................................................................... 5
2.
Introduction to the TNA study ...................................................................................................... 11
3.
4.
2.1
Objective and scope of work (SOW)...................................................................................... 11
2.2
The methodology, definitions and limitations ...................................................................... 11
2.3
The TNA – organization and execution ................................................................................. 13
2.4
Other donor initiatives of relevance to the TNA ................................................................... 13
The Petroleum Sector of Tanzania ................................................................................................ 15
3.1
The History of Petroleum Exploration and Production in Tanzania ...................................... 15
3.2
The Present and near future Situation of the Petroleum Upstream..................................... 18
3.3
The key Decision Gates.......................................................................................................... 20
Assessments of Governmental Institutions................................................................................... 21
4.1
The Petroleum Section in MEM............................................................................................. 21
4.1.1
Mandate, Organization and Operations ........................................................................ 21
4.1.2
Baseline ......................................................................................................................... 23
4.1.3
Strategic challenges and urgent capacity needs ........................................................... 24
4.2
TPDC-Tanzania Petroleum Development Corporation.......................................................... 27
4.2.1
Mandate, Organization and Operations ........................................................................ 27
4.2.2
Baseline ......................................................................................................................... 29
4.2.3
Strategic challenges and urgent capacity needs ........................................................... 32
4.3
OSHA – Occupation, Safety and Health Authority ................................................................ 35
4.3.1
Mandates, organization and operations ....................................................................... 35
4.3.2
Baseline ......................................................................................................................... 36
4.3.3
Strategic challenges and urgent capacity needs ........................................................... 38
4.4
The National Environment Management Council (NEMC).................................................... 40
4.4.1
Mandates, Organization and Operations ...................................................................... 40
4.4.2
Baseline ......................................................................................................................... 42
4.4.3
Strategic challenges and urgent capacity needs ........................................................... 43
4.5
Department of Energy & Minerals; MLHWE, Zanzibar.......................................................... 46
4.5.1
Mandate, Organization and Operations ........................................................................ 46
4.5.2
Baseline ......................................................................................................................... 48
4.5.3
Strategic challenges and urgent capacity needs ........................................................... 48
5.
Challenges and key measures for competence building ............................................................... 52
6.
General observations and recommendations on the petroleum sector organisation ................. 54
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TNA –Tanzania Upstream Petroleum Sector
6.1
The role of TPDC .................................................................................................................... 54
6.2
The organization of MEM ...................................................................................................... 54
6.3
The organization of HSE ........................................................................................................ 55
6.4
The environmental responsibilities for the petroleum sector .............................................. 55
6.5
The organization of the petroleum sector in Zanzibar .......................................................... 55
7.
Gender ........................................................................................................................................... 56
8.
References ..................................................................................................................................... 58
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TNA –Tanzania Upstream Petroleum Sector
Acronyms
CIDA
Canadian International Development Agency
DEPTS
Directorate of Exploration, Production and Technical Services (TPDC)
DoEM
Directorate of Energy and Minerals
DoU
Directorate of Upstream
EIA
Environmental Impact Assessment
EMA
Environmental Management Act
EPC
Engineering Procurement Contract
FEED
Front End Engineering Design
FID
Final Investment Decision
G&G
Geological and Geophysical
HGA
Host Government Agreement
HR
Human Resources
HSE
Health, Safety and Environment
ICT
Information Communication Technology
LA
Land Acquisition
LNG
Liquefied Natural Gas
MEM
Ministry of Energy and Minerals
MLHWE
Ministry of Land, Housing, Water and Energy (Zanzibar)
MPSA
Model Production Sharing Agreement
NEMC
National Environmental Management Council
NOC
National Oil Company
NPD
Norwegian Petroleum Directorate
OSHA
Occupational Safety and Health Authority
PSA
Production Sharing Agreement
PDO
Plan for Development and Operation
PPP
Public-Private Partnership
SEA
Strategic Environmental Assessment
SOW
Scope of Work
SUMATRA
Surface and Marine Transport Regulatory Authority
TCF
Trillion cubic feet
TNA
Training Needs Assessment
ToR
Terms of Reference
TPDC
Tanzania Petroleum Development Corporation
WB
World Bank
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TNA –Tanzania Upstream Petroleum Sector
1.
Executive summary and main recommendations
Background
Tanzania’s history on exploration for oil and gas goes back more than 60 years. The first discovery of
gas in the Songo Songo field was made in 1974 and 30 years later the first gas was produced for
electricity generation and industrial use. From year 2000 the focus for oil and gas exploration has
been on the deep offshore, and during the last decade several major gas discoveries have been made
bringing the total present gas resources of Tanzania to 46 TCF. Tanzania has a vision to develop the
country to become a gas nation. It will not be possible however, to utilize the gas resources only for
domestic purposes and a LNG based export solution is presently being planned by the international
oil companies.
The development of the gas resources requires important decisions to be taken by the authorities in
the near future. These decisions have to be made within the framework of an international gas
market that is dramatically changing and where the surplus of gas resources will be a major
challenge. In East Africa, Mozambique is emerging as a very strong competitor to Tanzania for the
same future gas markets in Asia. In this perspective the urgency for Tanzania of making necessary
decisions and to build appropriate competence to manage the resources cannot be overemphasized.
Together with the perspective of the long-term development of the sector for sustainable benefit of
Tanzania, substantial requirements arise as to the competence and capacity the Government must
have to meet the challenges and its functional responsibilities.
The objective of the Training Needs Assessment (TNA) is to get baseline information regarding
training needs for the government authorities in Tanzania to strengthen their competence to fulfill
their roles and responsibilities for the upstream petroleum sub sector. The report will both serve as
a basis for prioritization of Norwegian support in capacity building in the respective institutions as
well as being a tool for the institutions themselves in defining their own training strategy. The TNA
will also provide input to the upcoming institutional review in the upstream petroleum sub-sector.
The following institutions have been reviewed:

Ministry of Energy and Minerals (Petroleum Section): provides a leadership role in
development of policy, policy instruments, monitoring compliance and enforcement of the
petroleum laws. The Petroleum Section is mandated to coordinate upstream and
downstream activities at national and regional levels with the view of improving the energy
resource base and ensure reliable supply of petroleum products.

Tanzania Petroleum Development Corporation (TPDC): is a state corporation through which
the Ministry of Energy and Minerals implements its petroleum exploration and development
policies. TPDC is delegated several key authority functions including data management,
resource assessment, preparation of licensing rounds, negotiating Production Sharing
Agreements and monitoring.

The National Environmental Management Council (NEMC): is a national institution with a
responsibility to oversee environmental management by undertaking environmental
enforcement, compliance, review and monitor environmental impact statements, research
and awareness raising.
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TNA –Tanzania Upstream Petroleum Sector

Occupation, Safety and Health Authority (OSHA): is mandated by the Occupational Health
and Safety Act and authorized to ensure compliance with this act as well as other laws and
regulations regarding safety and health at all work places.

Ministry of Land, Housing, Water and Energy (Department of Energy and Minerals): is the
institution responsible for the petroleum sector in Zanzibar. While the disagreement on
sharing of future revenues has prevented the sector’s progress, the proposed new
Constitution may terminate the petroleum upstream subsector as a union matter.
Methodology
The TNA has been carried out by establishing a required competence profile for each of the
institutions through an evaluation of the petroleum sector development and the general functional
responsibilities of the unit. This has been compared with the actual competence in the organization
which has been assessed through a combination of interviews with the management and staff and
the use of competence mapping forms and the resulting gaps identified.
The TNA has also reviewed the existing plans for competence development of the institutions.
These numerous planning documents are commonly not based on any explicit analyses and
documentation of the status and development of the sector. Furthermore, they are very ambitious
and in general only partially implemented due to both organizational and financial constraints. The
institutions are recommended to revise and combine plans for training activities, taking into account
the capacity in the relevant organisations. Leaders should be committed to prioritise and execute the
most urgent training needs based on a firm understanding of the current situation in the petroleum
sector.
Competence – challenges and recommendations
The competence gaps identified are partly related to a lack of knowledge about basic understanding
of the petroleum sector including terminology, operational principles and technology. These gaps
can largely be filled through regular training.
More fundamental gaps however, are related to how the institutions should carry out their
functional responsibilities. To achieve sustainable competence development within these areas it
will be necessary to apply the new knowledge in an active working situation. The TNA team
recommends that ‘on-the-job’ training or an active coaching process is used as the key measure. This
coaching should preferably be carried out by experienced staff from the institutions. To achieve this
it is necessary that coaching is given priority among their work tasks. Alternatively, external
resources can be mobilized through cooperation agreements as is in place between Tanzania and
Norway. In this situation with a general weak competence base, leaders should look for team based
solutions to achieve the optimal benefits for both individuals and the institutions.
The following key measures on competence development are recommended for the institutions:
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TNA –Tanzania Upstream Petroleum Sector
MEM (Petroleum Section):

Competence strengthening for development of licensing strategy based on a resource
inventory and optimized area prioritization. This should be organized as a coached process
moving through the various stages of strategy development.

Improving negotiation skills with the emphasis on evaluation of application and planning the
negotiation process. A coached process linked to an ongoing licensing process is preferable.

Strengthening of the monitoring skills with a priority on the data acquisition and drilling
activities in the exploration phase is required. The competence building should include
reviewing routines and required framework and preferably be conducted as an on-the-job or
mentoring arrangement with a governmental institution.

Strengthening competence linked to the field development decision through a coached
process working on an actual field development plan submitted to the authorities for
approval.

Competence strengthening on the development of appropriate regulations under the
Upstream Law to ensure efficient and effective regulation of the petroleum upstream.

Short term course in procedures for the preparations of White Papers (Cabinet Papers) for
Government approvals. These courses can be provided by the Cabinet Secretariat of the
President’s Office.

Leadership training addressing organisational issues including roles and responsibilities as
well as the improvement of decision and work processes. Competence building should be a
long-term process with a combined structure of workshops and coaching.

Improving competence with regards to the preparation of coordinated plans for competence
development based on firm understanding of the petroleum sector. coordinated plans for
competence development in the institutions based on a firm understanding of the petroleum
sector.
TPDC:

Basic training to improve understanding of key aspects of the petroleum value chain and the
key decision gates for newly recruited staff.

Competence strengthening for development of licensing strategy is required in particular
with regards to the selection of areas for the licensing round. The process should be a
combination of workshops and coaching.

Enhancing skills related to the negotiation process is necessary both related to the
preparation of the process, the evaluation of the application and negotiation process itself
including organizing the required support to a negotiation team. The competence
strengthening should preferably be conducted as a coached process linked to an ongoing
licensing process.

The process of resource assessment needs improvement. This includes the basic technical
skills of seismic interpretation and moving the process through geological analysis and
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TNA –Tanzania Upstream Petroleum Sector
prospect assessment ending up in a resource account for Tanzania’s petroleum provinces
conducted as a combination of workshops and on-the-job training.

Skills related to the monitoring function need improvement as well as for the assessment of
PDOs preferably developed in cooperation with an institutional partner.

Data management needs improvement. This includes enhancing skills necessary to develop
appropriate policies and guidelines on management of data.

Leadership training is critical both on an individual basis as well as for developing effective
and efficient management processes. This is a broad area requiring a long-term perspective
and a set of different competence building measures.
OSHA:

Additional short-term training in basic petroleum operations with a focus on the HSE
perspective in the different phases of the petroleum value chain. The training should cover
the whole petroleum group in OSHA.

Further training on key HSE aspects of petroleum technology and operations, preferably as
secondment to an oil company or drilling contractor.

Practical training in system auditing to be supervised by a competent consultant or
institutional partner.

Training and mentoring on issues of incidents and accidents with a focus on incident
reporting and the investigation of incidents and accidents. The training should be closely
linked to establishment of a HSE database.

Competence development on drafting regulations through participation in the legal team
under the cooperation agreement.
NEMC:

Additional basic petroleum training with a focus on understanding the environmental
perspective of the different phases of the petroleum value chain.

Basic training in waste management issues in the petroleum sector and the use of chemicals.

Practical training in system auditing of petroleum sector companies to be conducted on-thejob with proper coaching by a competent consultant or institutional partner.

Conduct exercises with SUMATRA and other key stakeholders in oil spill preparedness and
response.
MLHWE (Directorate of Energy and Minerals):

Priority on competence development for preparation of petroleum policy and framework as
well as resource assessment.

In the short term horizon, competence should be strengthened in the development of policy
instrument to implement the objectives of the Energy Policy in upstream. This aspect can
take a form of advisory services working with the Directorate to develop the relevant draft
law and the requisite regulations.
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TNA –Tanzania Upstream Petroleum Sector

Medium term priority on the development of competence in licensing and negotiation
process.

Competence building primarily through secondment and coached processes.
Organisational issues - challenges and recommendations
In the course of the TNA, observations on organizational aspects of the petroleum upstream subsector were noted and key recommendations were made as a basis for a possible future project to
address the organizational issues in more depth.
Tanzania is facing major challenges in the process of converting the substantial offshore gas
discoveries to sustainable values for the people as a whole. This implies major requirements to the
Government, both with regards to their competence as well as the way they are organized to
conduct a prudent resource management. Some of the challenges noted in TNA are:

No clear division between commercial and regulatory function.

Unclear division of responsibility on key regulatory functions between MEM and TPDC.

A weak communication between the two institutions.

Inadequate communication and interaction between the Petroleum and Gas Sections in
MEM.

Unclear responsibility and lack of communication on HSE issues between TPDC and OSHA.

Inadequate interaction between NEMC, TPDC and MEM on environmental issues.

A general weak competence base with regards to the authority functions and the petroleum
sector.

Too narrow educational background for MEM Petroleum Section staff.

A substantial experience gap both in MEM and TPDC.

The ministry in charge of petroleum in Zanzibar has a too wide mandate.
Some key recommendations to be considered as input to an organizational review are:

TPDC and MEM should be scrutinized with the perspective of how policy, regulative and
commercial functions of the state should be addressed.

The process on defining an independent regulator for the sector should proceed and
concluded as soon as possible.

The reorganization of MEM should be considered and the possibility of establishing a
petroleum department with a separate commissioner assessed.

The interface between the upstream and downstream petroleum sector should be
strengthened to secure that all aspects of the petroleum value chain are accounted for and
coordinated.
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TNA –Tanzania Upstream Petroleum Sector

The structure and mandate of the Petroleum Section to be reviewed including bringing key
policy and strategy issues back to the ministry.

The responsibilities and interaction between OSHA and TPDC to be reviewed; the feasibility
of a separate petroleum authority responsible for health and safety maters to be evaluated.

The need on the part of TPDC to have a dedicated section under the Directorate of Upstream
to deal with data management.

Given that responsibility for environmental issues should remain in TPDC, the Environmental
Unit should be located in a position where it can render its services to all the functional
directorates.

To strengthen the gender perspective in the Government, it is recommended that all
institutions should appoint a desk officer to assist on the development, coordination and
implementation of the gender policy.

The responsibilities and interaction between NEMC, TPDC and MEM to be assessed and
clarified. A separate organizational unit with environmental responsibility for the petroleum
sector to be evaluated.

The structure of MLHWE on Zanzibar to be reviewed and the feasibility of giving the DoEM
status as a ministry to be looked into.
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TNA –Tanzania Upstream Petroleum Sector
2.
Introduction to the TNA study
2.1 Objective and scope of work (SOW)
The objective of the Training Needs Assessment (TNA) is to establish a competence baseline and
identify the training needs for the Tanzanian Government authorities in order for them to fulfil their
roles and functional responsibilities for the upstream petroleum sub-sector (see ToR; appendix 1).
The result from the TNA will provide a basis for prioritization of activities in the petroleum sector
cooperation program between Tanzania and Norway. The results will also serve as a baseline
regarding other training activities carried out by the institutions themselves or in cooperation with
other partners.
The petroleum authorities in Tanzania will in the near future undergo major changes as a result of
the increasing level of activity in the petroleum sector and the proposed changes in the institutional
framework reflected in the draft Petroleum Policy. The TNA will make observations about these
issues and provide input to a potential upcoming organisational review.
To achieve the objectives the following SOW is outlined:

Review the mandates of and the interfaces between the following institutions: MEM,
TPDC, NEMC, OSHA and MLHWE.

Conduct a TNA and identify the short and medium-term training needs within the
government authorities working with the upstream petroleum sub-sector.

Recommend prioritized remedial actions in order for the respective institutions to deliver
on their mandates in short and medium-term.

Propose Scope of Work for an organisational review regarding the government
authorities working with the upstream petroleum sub-sector based on information
collected from the TNA.
2.2 The methodology, definitions and limitations
The methodology applied for the TNA project has included the following main steps:
Inception:
The project inception included the preparation of a detailed project plan, the scope of the project
and main schedule. This outline was discussed and agreed with the key stakeholders. The necessary
documents and information was defined and requested. The access to recent studies and analysis
was required to capitalize on these efforts and avoid duplication of work.
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TNA –Tanzania Upstream Petroleum Sector
Desk-top study:
The desk-top study included the review of available documentation describing the Tanzanian
upstream petroleum sub-sector, regulatory regime and organisational units. Further, the
preparation of the detailed plan and programme for the mission was made and process tools and
questionnaires prepared.
Mission:
The main purpose of the mission was be to establish a good understanding
and baseline of the short and medium-term training needs of the
organisations involved. This would provide a basis for prioritization of
Norwegian support in capacity building in the respective institutions. The
TNA was conducted through meetings and structured interviews with core
staff from the upstream petroleum sub-sector in Tanzania including
external stakeholders. Human Resource (HR) data and staff competence
assessment was collected.
Evaluation and Reporting:
The competence requirements for each institution were defined based on
their mandates and functional responsibilities. The results from the
competence surveys were compared with the information provided in the
interviews with management and staff.
It is typically observed
discrepancies between these two information sources. Commonly
competence gaps are more explicitly expressed in the interviews. It is a
tendency that the more inexperienced staff overrates their own
competence level. These uncertainties should be taken into account when
the potential competence gaps are defined and measures to close the gaps
proposed.
Fig. 1 TNA work flow
Limitations
The TNA project has its focus on the upstream petroleum sub-sector. While the project has not
carried out any discussions on the utilization, marketing and distribution of oil and gas, the team has
not found it appropriate to introduce any strict definition of the term upstream. The team has not
made any analyses of the Gas Utilization Section, but the interaction between this unit and the
Petroleum Section is identified. OSHA and NEMC are not organised in a way which makes it feasible
to distinguish their involvement in the various phases of the petroleum value chain.
The TNA is further restricted to the resource management, environmental management and safety
management of the upstream sub-sector. Hence, the revenue management is not included in the
scope of work. At this stage in the development the revenues related to the sector are limited.
However, the existing and future interfaces with the financial institutions have been discussed in
meetings conducted.
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TNA –Tanzania Upstream Petroleum Sector
Gender mainstreaming was introduced to the TNA SOW late in the project. This has only been
discussed briefly in the meetings with a focus on identifying the policies in place and the actual
gender balance situation in the institutions.
2.3 The TNA – organization and execution
The TNA team consist of the following persons:




Geir Egil Eie
Nils Henrik Fuglestad
Ole F. Ekern
Prosper A. M. Victus
Petrad
Petrad
Bridge Consult as
Independent Cons.
Project Manager
TNA Team Member
TNA Team Member
TNA Team Member
The TNA is performed on behalf of NPD as a part of the institutional cooperation agreement for the
petroleum sector between Tanzania and Norway. To facilitate the implementation of the
programme a number of thematic groups have been established. The thematic group with a
responsibility for HR under the leadership of TPDC, was mandated to provide the required support to
the project team.
Unfortunately, the TNA team experienced a lack of coordination and
unwillingness from TPDC to cooperate on this project as one of the major challenges. This has
resulted in significant delays and increased costs for the project.
2.4 Other donor initiatives of relevance to the TNA
The World Bank has approved a major project for capacity building in the energy sector. The project
has a budget of US$ 35 million of which US$ 21.5 million is a World Bank credit and the remaining is a
grant from the Canadian International Development Agency (CIDA). The project has a broad scope
with a general objective of strengthening the capacity of the Government to develop (i) its natural
gas sub-sector and (ii) Public-Private Partnerships (PPPs) for the power generation sector. Hence, the
upstream petroleum sub-sector only constitutes a limited part of what the project aims to address.
The most relevant activities included in the scope of the project for this TNA are:
MEM:
 Support on human capacity building activities to ensure that MEM and related ministries
staff are better equipped to execute their responsibilities to manage and set policy
frameworks for participatory economic, environmental and social sustainability (including
gender dimensions) of the gas subsector.
Budget: US$ 1.4 million
NEMC:
 Advisory Services and Training for staff to strengthen their capability of providing effective
and efficient oversight of the oil and gas sub-sector in accordance with sector-specific
environmental regulations and in line with international best practice.
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TNA –Tanzania Upstream Petroleum Sector


Develop procedures, standards and processes related to Hazardous Waste Management and
Gas Flaring.
Support the development of an Oil Spill Contingency Plan and an Early Warning/Response
system.
Budget: US$ 1.0 million
OSHA
 Development and execution of a staff training programme that makes them knowledgeable
on international best practices related to health and safety in the oil and gas sectors and
skilled in supervision, auditing and monitoring of health and safety regulations.
Budget: US$ 0.4 million
Although the project description at this stage is rather vague, the general outline for capacity
development in MEM, NEMC and OSHA is well in-line with the recommendations presented in this
TNA, and some of the major gaps identified may be closed through the World Bank project.
It is highly recommended to further explore possible synergies between the Norwegian support and
the World Bank initiative.
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TNA –Tanzania Upstream Petroleum Sector
3.
The Petroleum Sector of Tanzania
The following chapter provides an overview of the petroleum upstream sub-sector covering the
historical perspective, present setup, potential near future responsibilities and important decision
gates.
3.1 The History of Petroleum Exploration and Production in Tanzania
Exploration for oil and gas in Tanzania goes back more than 60 years. Most of the major international
petroleum companies have been represented in the area at one time or another. Significant gas
discoveries have been made at Songo Songo, Mnazi Bay and in the southern deep offshore area.
Since 1952, 76 exploration, appraisal and development wells have been drilled providing vital
geological information of the subsurface and potential for hydrocarbons (Fig. 2). The cumulative
seismic coverage is approximately 100,000 km of 2D; 70,000 km offshore and 30,000 km onshore.
More than 16,000 km2 of 3D seismic data has been acquired in the offshore areas.
Fig. 2 Exploration and appraisal wells drilled in Tanzania
The exploration history of Tanzania can be summarized into five phases as follows:
Phase I: 1952-1964
BP and Shell were awarded concessions along the coast, including the large islands of Mafia, Zanzibar
and Pemba. Extensive geological work was conducted including the drilling of more than 100
stratigraphic shallow boreholes as well as acquisition of gravimetric, aeromagnetic and reflection and
refraction seismic surveys. A thick sedimentary section was identified and four wildcats were drilled,
one each on Zanzibar, Pemba and Mafia Islands and another onshore in the Mandawa Salt Basin.
Although the wells did not encounter significant hydrocarbon shows, they confirmed the presence of
seal, reservoir and source rocks combinations in the stratigraphic column. During this period the
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TNA –Tanzania Upstream Petroleum Sector
upstream activities were being regulated by the Mining Ordinance of 1954 administered by the
Government through the Mineral Department.
Phase II: 1969-79
The national oil company, Tanzania Petroleum Development Corporation (TPDC), was established in
1969 and started its operation in 1973. The first Production Sharing Agreement (PSA) was signed with
AGIP on former BP/Shell concessions. During this period large regional seismic surveys were
conducted both onshore and offshore. AGIP was joined by Amoco in 1973 and drilled three onshore
and two offshore wells. This resulted in the significant gas discovery at Songo Songo in 1974. The
discovery was confirmed by TPDC in 1975-79 through a three well drilling programme, one of which
(SS-2) was a blow-out. Upstream operations during this period were still being regulated by the
Mining Ordinance of 1954.
Phase III: 1980-1991
Adoption of the Petroleum (Exploration and Production) Act of 1980 and high oil prices in the world
market encouraged increased exploration activities. This was an active drilling period in Tanzania,
including the delineation of the Songo Songo gas field and the gas discovery at Mnazi Bay (1982) by
AGIP. TPDC participated in the Songo Songo development which included drilling of 5 development
wells. TPDC also participated in the drilling of two wildcats at Kimbiji and several seismic
programmes.
Increased interest in the interior rifts resulted in AMOCO drilling two shallow wells in the Rukwa rift
basin in 1987. Shell drilled Dira-1 in Mafia channel in 1991. The well was not successful and the
license was relinquished the same year.
In 1985 the Energy Department under the Ministry of Water, Energy and Minerals was established.
The primary focus of the Energy Department at that time was to administer the Petroleum
(Exploration and Production) Act 1980, the Electricity Ordinance Cap 131 of 1931 and monitor
compliance of the Law and the Production Sharing Agreements signed between the Government,
TPDC and oil companies.
Phase IV: 1992-1999
The first National Energy Policy was prepared in 1992 to provide guidance on the development of the
energy sector including upstream petroleum. At the start of this period there were no active
licensing and little activity except for various studies and a dedicated effort by the authorities to
achieve fiscal and technical agreements for the development of the Songo Songo gas field. TPDC,
TANESCO and the Canadian companies Ocelot and Trans-Canada Pipelines were actively working on
the Songo Songo gas field development, transportation and utilization of the gas.
Beginning in 1995 a number of international companies acquired exploration rights in the coastal
basins. Tanganyika Oil Company drilled two wells in the Mandawa Basin in 1996-97. Exploration
agreements were also signed with the Canadian companies Antrim and Canop, and Ndovu Resources
of Australia. Discussion also took place with Pemba International of Canada for a PSA over
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TNA –Tanzania Upstream Petroleum Sector
Kimbiji/Ruvu areas. Agreements to develop the Mnazi Bay gas discovery and to build a power
generation plant were also being negotiated.
During this phase the Energy Department was restructured and four sections were established. These
sections were:
(i)
(ii)
(iii)
(iv)
Petroleum Section
Electricity Section
New and Renewable Energy Section
Energy Development Section
The tasks assigned to the Petroleum Section included the development of policies and policy
instruments for the petroleum sector including the upstream and downstream segments.
Phase V: 2000 - Today
The phase commenced by the acquisition of almost 11,000 km 2D seismic data by TPDC and
WesternGeco covering parts of the deep offshore. The Government subsequently started to carry
out licensing rounds for open acreages.
The interpretation of the new data led for the first time to the licensing of blocks in deep waters.
During the first licensing round that took place in 2000, one block was awarded to Petrobras (Block
5; PSA signed in 2004). The second licensing round took place in 2001 and Blocks 9, 10, 11 and 12
offshore Zanzibar were awarded to Shell, but PSAs could not be concluded. The third licensing round
was carried in 2004 where one block was awarded to Ophir Energy (Block 1; PSA signed in 2005)
followed by grant of exploration rights of Blocks 3 and 4 to the same company (PSAs signed in 2006).
Petrobras was awarded Block 6 and PSA signed in 2006, and Statoil was awarded Block 2 and the PSA
was signed in 2007. After the third licensing round, Blocks 7 and 8 were the only remaining blocks in
the deep waters and TPDC with a permission from the Government, invited offers from the industry
and awarded Block 7 to Dominion Petroleum (PSA was signed in 2008). Block 8 was awarded to
Petrobras and the PSA was signed in 2012.
Following the licensing of the blocks in the deep water, a large amount of seismic data including
70,000 km of 2D and 15,000 km2 of 3D was acquired. This was followed by drilling of exploration
wells by BG (Blocks 1, 3 and 4), Statoil (Block 2) and Petrobras (Block 5), making significant gas
discoveries in Blocks 1, 2, 3 and 4. Further exploration including appraisal drilling, is envisaged for the
years 2014-15. The operators of Blocks 1,2, 3 and 4 have started preparations for possible joint
development of LNG allowing the gas to be exported.
In this phase, a number of changes happened in the Energy Department including the formation of a
new section (Gas Utilization Section) which was carried out by splitting the Petroleum Section into
two. The Gas Utilization Section started its operation in 2012 and has a work force of 11 professional
staffs.
17
TNA –Tanzania Upstream Petroleum Sector
3.2 The Present and near future Situation of the Petroleum Upstream
There are now 18 petroleum companies operating in Tanzania, 22 active exploration licenses and 2
development licenses (Fig. 4). Most of the exploration activities are centered in the deep-water
where substantial reserves of gas have been discovered. A number of companies are also exploring
the onshore basins.
Tanzania has been a gas producing nation for almost a decade. The production however, has been
modest serving domestic electricity production and industrial projects mainly from the Songo Songo
field. The last few years has introduced a new perspective for Tanzania as a future gas nation.
Significant deep-water discoveries have increased the resource base which now exceeds 46 TCF of
natural gas.
5
0.5
13.1
2.5
BG - Block 1
Statoil - Block 2
BG - Block 3
4.5
BG - Block 4
Songo Songo
2
Mnazi Bay
Other
18.9
Fig. 3 Tanzania natural gas resources (TCF)
The challenge for Tanzania in the near future is to establish the necessary framework allowing these
resources to be transferred to become reserves and eventually converted to revenues to benefit the
nation as a whole. There are still important clarifications that have to be made with regards to the
conditions for the onshore facilities and the ownership and operations of the midstream and
downstream areas. Until these clarifications are made, the international oil companies will not be
able to take the necessary decisions required for the large-scale gas development to proceed.
At the same time the Government has also initiated a new licensing round. The 4th licensing round
will have its deadline mid-May 2014 and includes 7 deep-water license areas plus one area in Lake
Tanganyika. It is considered likely that new awards will be made and possibly additional gas being
discovered within few years. This will provide additional value to the country and potentially
prolonging the horizon as a petroleum nation. Additional gas however, is not needed for a decision
that can move Tanzania to become a true gas nation, the lack of commercial and appropriate legal
framework on the other hand is a potential show-stopper.
18
TNA –Tanzania Upstream Petroleum Sector
Fig. 4
Tanzania license map
19
TNA –Tanzania Upstream Petroleum Sector
3.3 The key Decision Gates
As part of monetizing the gas discoveries that have been made recently, the sponsors for Blocks 1,2,
3 and 4 are contemplating to invest in LNG to export gas to the major markets in the Far East and
elsewhere. To do that the sponsors, the Government and TPDC have to work together to meet the
key milestones which are necessary for the proposed investment to be achieved.
There is a set of major Decision Gates that have to be passed for the development of the project to
proceed (Fig. 5). The immediate Decision Gate relate to Land Acquisition (LA) which is now
substantially behind schedule. This will be followed by the Host Government Agreements (HGA)
which is required to be accomplished this year if the planned commercial operations date of 2021 is
to be achieved. Finalization of the HGA will pave the way to the determination of the size of the LNG
trains which will need to be done by the end of 2014. This Decision Gate will lead to the initiation of
Front End Engineering Design (FEED) after which the sponsors will make their Final Investment
Decision (FID) and apply for Development License.
Fig. 5 Proposed Key Decision Gates in the Development of LNG in Tanzania
The decisions described above have to be made within the framework of an international gas market
that is dramatically changing. The substantial discoveries of shale gas in particular in the US and
major investments undertaken by Russia to supply gas to the far east, have fundamentally changed
the game. In East Africa, Mozambique is emerging as a major challenger to Tanzania for the same
future gas markets in Asia. In this perspective the urgency for Tanzania of making necessary
decisions and to build appropriate competence to manage the resources cannot be stressed strongly
enough.
20
TNA –Tanzania Upstream Petroleum Sector
4.
Assessments of Governmental Institutions
4.1 The Petroleum Section in MEM
4.1.1
Mandate, Organization and Operations
The Petroleum Section is one of the five sections under the Energy Department of the Ministry of
Energy and Minerals (MEM). The others are the Electricity Section, New and Renewable Energy
Section, Energy Development Section and the Gas Utilization Section (Fig. 6). The Gas Utilization
Section was established in 2012 after recognizing the need to focus on natural gas as an alternative
fuel following substantial discoveries of gas in deep waters and onshore. The Petroleum Section was
therefore split into two and the staff was reduced to less than half of the original number.
Proposed or already an Executive Agency
Fig. 6 Current Organizational Structure of MEM; approved by the President on 03.06.11
21
TNA –Tanzania Upstream Petroleum Sector
The mandate of the Petroleum Section as it relates to the petroleum upstream includes the
following:
i.
to develop, monitor, evaluate implementation and review of policies and policy instruments
for proper regulation and monitoring of the petroleum upstream activities;
ii.
to develop, prepare, monitor and evaluate implementation of guidelines for exploration and
exploitation of oil and gas to foreign and local investors, oil exploration companies, and
overseeing oil and gas exploration activities in the country;
iii.
to develop and implement mechanisms for promoting the development and proper
functioning of appropriate institutions in the sub-sectors in order to provide for efficient
delivery of petroleum in the country;
iv.
to develop plans and programmes for the development of the sub-sectors in order to ensure
efficient, cost effective, reliable and quality services;
v.
to carry out or cause to be carried out research on petroleum and gas and provide advice on
appropriate technologies and methods necessary for proper functioning of the petroleum
industry;
vi.
to coordinate upstream and downstream activities at national and regional levels with the
view of improving the energy resource base and reliable supply of petroleum products and
natural gas; and
vii.
to raise public awareness on petroleum activities and develop strategies to promote
international cooperation.
These functional responsibilities are formulated rather vaguely and it is difficult to read out what are
the more precise tasks with regards to the main phases of the petroleum value chain and the main
decision gates. Hence, the role of the Petroleum Section when it comes to licensing strategy and the
licensing process is not clear. Neither its functions with regards to field development and production
are expressed. Both the borderline towards TPDC as well as the Gas Utilization Section in the
Ministry would benefit from further clarifications.
In undertaking the above tasks the Petroleum Section is assisted by a number of units in the Ministry
including the Environmental Management Unit which operates as an extension of the National
Environmental Management Council (NEMC) and the Directorate of Legal Services which provides
legal services to the whole Ministry.
The petroleum upstream sub-sector is regulated by the Petroleum (Exploration and Production) Act
1980 and the Production Sharing Agreement (PSA) which is a tripartite agreement between the
Government, TPDC and the oil company. There is now a need to revise the Petroleum (Exploration
and Production) Act for this framework to reflect the changes in technology, market and principles
for HSE and environmental protection.
The Model Production Sharing Agreement (MPSA) has been evolving from the initial version of 1989
to the current one which is the fourth MPSA and was issued in 2013. TPDC remains the license holder
for the exploration and development rights while the oil companies are the contractors to TPDC
under the PSA. The Act also provide for TPDC to conduct negotiations with the companies on behalf
22
TNA –Tanzania Upstream Petroleum Sector
of the Minister. The present arrangement also mandates TPDC to carry out a number of tasks on
behalf of the Ministry which is the regulator for upstream activities. These include:
i.
preparations of licensing rounds;
ii.
management of petroleum exploration and production data;
iii.
negotiation with exploration companies;
iv.
petroleum resource assessment; and
v.
monitoring of exploration activities.
4.1.2
Baseline
The Petroleum Section of the Ministry of Energy and Minerals has 9 staff members. Held up against
the mandate outlined above the section appears to be seriously under-staffed. As a consequence
TPDC apparently takes over tasks beyond the mandate they are given. The limited manpower also
results in difficulties in coordination with the Gas Utilization Section.
The functional responsibilities of the Petroleum Section reflect a broad set of policy related tasks and
an engagement along the whole petroleum value chain. To be able to meet these obligations the
Petroleum Section should have access to a wide range of professions including geoscience,
engineering, finance, legal and economics. Today the Petroleum Section mainly consists of staff with
an educational background in petroleum geology. The educational level is high and most of the staff
has a master degree. However, while petroleum geology and geoscience is a key profession for
resource management it will be a too narrow basis for the variety of policy issues the Ministry has to
handle. The building of a multi-professional team will be a key challenge for the future development
of the Petroleum Section.
Another challenge for the Petroleum Section is the distribution of experience of the staff. This
distribution is today very uneven, reflecting a major gap for experience level between 10 and 25
years. This represents a serious situation for the section which will be exacerbated when senior staff
within few years will retire.
Fig. 7 Experience distribution in the Petroleum Section
23
TNA –Tanzania Upstream Petroleum Sector
With regards to competence development to meet future challenges, structured measures have
already been taken. The most important contributions to define the needs for the development of
skills and competencies in the petroleum sector are:
i.
Mapping and analysis of the needs for petroleum related education in Tanzania. This study
was financed by Norad (Norwegian Agency for Development Cooperation) and finalized in
November 2013.
ii.
Human Capital Development Programme in Oil and Natural Gas Sub-Sector. This was an
internal assessment carried out by the Ministry to establish the training needs for the
Petroleum Sector that included the requirement for the oil and gas industry, MEM, TPDC and
other stakeholders. The document was finalized in March 2013.
iii.
MEM, National Oil and Gas Training Needs, May 2013.
iv.
Plan for on the job training to be financed by Statoil.
v.
Annual Training Programme prepared by the Ministry to cater for the training needs for all
the staff.
While the last annual training programme mentioned above has been implemented, the
recommendations presented in the other documents are yet to be realised. A discussion with senior
officials of the Ministry suggests that while the Ministry is keen to start implementation of the
proposed human resource development schemes, there are a number of challenges which are likely
to interfere along the way. These include:
i.
Lack of adequate financial resources to implement the scheme;
ii.
Possible delays due to bureaucratic procedures;
iii.
Implementation not keeping pace with the rapid development in exploration and
development taking place in the country; and
iv.
Competition with developments taking place in Mozambique and the rest of East Africa
might mean some skilled and experienced manpower leaving in search of greener pastures
outside the country and hence jeopardizing the plan.
4.1.3
Strategic challenges and urgent capacity needs
With the new petroleum policy as a reference, it is anticipated that the Petroleum Section of the
Ministry will need to start to review the Petroleum (Exploration and Production) Act of 1980 to be in
line with the new policy principles and consistent with the new Constitution for the United Republic
of Tanzania which is under development. In addition, the Petroleum Section will have to develop the
appropriate regulations under the upstream law as may be necessary for efficient governance of the
upstream operations.
The Petroleum Section will also need to review and advice on the appropriate institutional
framework that will be necessary to meet the objectives of the Law and the proposed new
Constitution. As the operators of Block 1, 2, 3 and 4 gear themselves towards development of LNG
24
TNA –Tanzania Upstream Petroleum Sector
to commercialize the natural gas that has been discovered, the Petroleum Section together with the
Gas Utilization Section of the Ministry and in cooperation with TPDC, will need to spearhead
negotiations of various agreements, facilitate the sponsors to develop the project as well as monitor
its implementation. In order to undertake the above mentioned functions, the section will need to
have the adequate capacity in terms of relevant manpower, financial resources as well as the
requisite competences.
Required
competence
0-5
Actual
competence
0-5
Petroleum policy development
Laws and regulations
Model agreement
Licensing strategy
Area selection
Guidelines for application
Seismic Interpretation
Geological Analysis
Play analysis
Prospect analysis
Resource inventory
Production forecasting
Full cycle economic analysis
Prepare promotional material
Establish physical data room
Contract virtual data room
Evaluate license applications
Conduct negotiations
Technical support for
negotiators
Economical evaluation
support
G & G survey monitoring
Drilling approval and
monitoring
Production monitoring
Decommissioning monitoring
4
3
4
4
4
3
2
2
2
3
4
4
4
3
2
2
4
4
3,1
2,6
3,1
2,2
2,2
2,6
2,9
3,2
2,7
2,6
2,4
2,9
2,4
2,1
1,7
1,6
2,6
2,4
3
2,8
3
2,3
4
2,9
4
2,7
3
2
2,0
1,6
Development
planning
PDO evaluation
4
1,7
Data management systems
Storage media, data storage
and transfer
Office software use
3
1,6
Data management
and ICT
2
1,6
4
2,6
Activity
Petroleum policy
and framework
Resource
Assessment
Promotion
Negotiation and
contracting
Monitoring of
operations
Tasks
Fig. 8 MEM – Petroleum Section; competencies and gaps
Many of the tasks which are normally associated with the role of a regulator are delegated to TPDC.
This includes the licensing and negotiation process, the monitoring of the licenses and the resource
25
TNA –Tanzania Upstream Petroleum Sector
assessment. Still, it is important that the Ministry has a high competence on these issues to provide
firm guidance to TPDC. The required competence which is suggested for MEM reflects these overall
responsibilities and the gaps are defined accordingly (Fig. 8).
The competence areas related to licensing process stands out as major gaps in the Petroleum
Section. Hence, both the skills related to resource inventory appears to be weak as well as bringing
this information forward into selection of potential areas for exploration and the formulation of a
licensing strategy. Also the evaluation of license applications and conducting negotiations are areas
where competence should be strengthened.
The staff members commonly describe their main task as monitoring the activity. Still, the level of
competence in the tasks included within this functional responsibility is only moderate and should be
improved further.
The competence with regards to the evaluation of PDOs is also considered to be low. It is important
to strengthen this area in the perspective of the potential development of the gas resources.
The competence level within data management and ICT use is also low and large gaps are identified.
The responsibility for data management is presently vested in TPDC and is not a prioritized area for
training in the Petroleum Section. The skill in office software however, is a prerequisite for effective
utilization of workforce and necessary training is important.
The main measures to close the identified competence gaps include:

Competence strengthening for development of licensing strategy is required; this should be
organized as a coached process moving through the various stages of preparing resource
inventory and area selection in a commercial and technical perspective leading up to a
licensing strategy.

The competence related to negotiation and contracting should be improved. This relates in
particular to the evaluation of license applications and conducting negotiations. Improving
negotiation skills has mainly to do with preparation and organization rather than specific
behavior in a negotiation process. This training is of immediate importance and should be
conducted as a coached process preferably linked to a current license round negotiation.

Strengthening of the monitoring skills is required; for the short-term with a focus on
monitoring and conducting the authority role in respect of the data acquisition and drilling
activities in the exploration phase. The routines and required framework should preferably
be reviewed in an on-the-job or mentoring arrangement with a governmental institution.
This may be included in the institutional cooperation program with Norway.

Strengthening competence linked to the field development decision gate is required in light
of the upcoming development of gas resources. The activities may be a combination of
short-term training to give a required technical insight and principles for a PDO approval
process. However, the main competence building should take place through a coached
process working on an actual field development plan submitted to the authorities for
approval.
26
TNA –Tanzania Upstream Petroleum Sector

Short term courses in various tools and procedures for effective and efficient use of office
software.

Competence strengthening on the development of appropriate regulations under the
Upstream Law to ensure efficient and effective regulation of the petroleum upstream.

Short term course in procedures for the preparations of White Papers (Cabinet Papers) for
Government approvals. These courses can be provided by the Cabinet Secretariat of the
President’s Office.

Leadership training with a broad scope including efficient organisation, improving decision
processes, delegation of responsibility and work tasks, improving information flow, clarifying
roles and responsibilities, improving utilization of existing resources and delivery on time
with high quality.
4.2 TPDC-Tanzania Petroleum Development Corporation
4.2.1
Mandate, Organization and Operations
The Tanzania Petroleum Development Corporation (TPDC) is a state corporation through which the
Ministry of Energy and Minerals implements its petroleum exploration and development policies.
TPDC was established under the Public Corporations Act No.17 through the Government Notice
No.140 of 30th May, 1969. The Corporation began operations in 1973. TPDC has a staff of about 200
and as of April, 2014 it was organized into three directorates: Directorate of Exploration, Production
and Technical Services, Directorate of Finance and Administration and the Directorate of Marketing
and Investment (Fig. 9).
Fig. 9 TPDC organogram
27
TNA –Tanzania Upstream Petroleum Sector
As a result of the increased activities in both the upstream and downstream segments, TPDC’s
organization had to be changed considerably to keep pace with these developments. This
restructuring exercise was completed in May, 2014. TPDC now will have five directorates which
include Directorate of Upstream, Directorate of Downstream, Directorate of Corporate Strategic
Planning, Directorate of Finance and the Directorate of Corporate Management. In addition, there
will be a Directorate of Legal Services and a Directorate of Internal Audit that will provide services to
the rest of the corporation (Fig. 10).
Considering that revenues from the production operations in the Songo Songo and the Mnazi Bay
development license are channeled directly to the Ministry of Finance leaving TPDC to depend partly
on subventions from the Government budget, the new organization structure is overly ambitious to
implement and maintain under the present arrangement. The organogram is more a vision for the
future than a structure reflecting the present operations and functional responsibilities.
There are also question marks as to the location of the HSE responsibility in the present structure.
Further, it would have been an advantage to prepare the structure in a way that could facilitate the
future establishment of an independent regulator.
BOARD OF DIRECTORS
Legal Committee
Strategy, Nomination and
Remuneration Committee
Audit & Risk Committee
Managing
Director
Manager Procurement Management
Risk Management
Manager
Director Corporate Legal Services
Director Internal
Audit
Communication Manager
Director Upstream
Operations
Director Finance
Corporate Strategy
Manager
Director Corporate
Strategy and Planning It
Production
International
Operations
Upstream
Operations
TPDC Deep Sea Blk 1B
JV Ltd
TPDC Deep Sea Blk 1C
JV Ltd
TPDC E& P International
Co. Ltd
Natural Gas
Processing
Company
Director Downstream
Operations
Planning Manager
Investment
Manager
Gas Business
Exploration
Directorate Corporate
Management
Oil Business
Natural Gas
Transportation
Company
Tanzania Oil Marketing
Company
Oil Refinery Company
Natural Gas
Aggregator &
Distribution
Company
mpany
Natural
Gas &
Petrol
Chemical
International
Trading & LNG
Company
Oil Pipeline Transportation
Company
Natural Gas Industrial
Park Company
National Petroleum Strategic
Reserve Company
Oil Trading Company
Industry
Company
Ltd
Fig. 10 New TPDC Organogram
28
TNA –Tanzania Upstream Petroleum Sector
Despite the major changes as presented by the new organization structure, the objectives of the
corporation remain the same as laid down in the TPDC Establishment Order. These objectives are:






to explore and produce petroleum;
to carry out standard activities of an oil company including, distribution and storage facilities;
to hold exploration and production rights;
to contract, hold equity or participate in oil concessions, franchises and licenses;
to manage companies or other legal entities transferred to the corporation; and
to develop an adequate industrial base for the oil and gas.
TPDC holds shares in the Songo Songo Gas-to-Electricity and Mnazi Bay gas development projects.
Following the Government's resolve not to involve itself in business activities, the shareholding in the
TIPER terminal and the oil companies of PUMA and TAZAMA have been transferred to the Ministry of
Finance.
TPDC is the custodian of the geological information and data related to upstream petroleum on
behalf of the Ministry of Energy and Minerals. Under the Petroleum (Exploration and Production)
Act 1980, TPDC has been mandated the task of carrying out negotiations with oil companies on
behalf of the Minister responsible for petroleum. In addition, TPDC has a responsibility of assessing
petroleum resources and advising the Government on the status of the resources available in order
to ensure efficient development, management and use. TPDC also carries out preparations for
licensing of open acreages on behalf of the Ministry of Energy and Minerals as well as advising the
Ministry on various petroleum sector issues.
4.2.2
Baseline
The general increase in petroleum operations in Tanzania and the specific focus on the potential
commercialization of projects for natural gas which is likely to include LNG, is putting substantial
pressure on the limited professional staff available in TPDC to carry out its mandate effectively. This
lack of overall capacity in TPDC is a result of a number of factors including:
i.
retrenchment carried out in 2000 that included highly trained staff in the Directorate
of Exploration, Production and Technical Services as a result of a Government
directive to streamline operations;
ii.
inability of TPDC to recruit personnel to fill the gaps in the years that followed
retrenchment of staff due in part to lack of financial resources and cumbersome
recruitment procedures where the corporation was required to obtain permission
from the Ministry of Finance as well as from the Ministry responsible for Civil Service;
iii.
retirement of skilled and experienced manpower at a time when there was no
proper succession; and
iv.
leakage of skilled and experienced staff to international oil and gas companies.
The legacy of this historical development is clearly reflected in the experience profile the
organization has today which also serves as a testimony to great challenges the organization is
facing. TPDC has a small core group of highly experience individuals who carry a lion’s share of the
29
TNA –Tanzania Upstream Petroleum Sector
present capacity of the organization. This group however, is rapidly approaching the age of
retirement (Fig. 11 – Group I). Behind this group the organization has a large void in experience.
TPDC is presently conducting a major recruitment campaign. The major share of these new staff
members however, does not have the competences required to independently perform the
functional responsibilities (Fig. 11 – Group II). Hence, we consider it vital to TPDC also to focus on
identifying and employ experienced individuals for the organization (Fig. 11 – Group III).
Alternatively, TPDC should pursue to retain staff beyond the normal retirement age limit or engage
long-term consultants who can act as mentors and supervisors. Although this is outside the terms of
reference of this study, it has a direct bearing on the present competence gap in the company.
Fig. 11 TPDC – experience of staff in the DPTS
Efforts have been going on to try and mitigate the prevailing competence challenges by development
and implementation of appropriate training programmes. The current training programme for 201415 has the following main strategic objectives:
i.
to enhance TPDC’s role in oil and gas exploration, development and production in
the country;
ii.
to produce and deliver hydrocarbon products to the market in commercial
quantities;
iii.
to safeguard national supply of petroleum products in Tanzania; and
iv.
to facilitate fair trading environment in the country.
Prior to 2000, TPDC had a fairly well trained staff which was comprised of geoscientists, petroleum
engineers, lawyers, economists and others. In 2000 a massive downsizing occurred where the
30
TNA –Tanzania Upstream Petroleum Sector
number of staff was reduced from more than 400 employees to about 65. Despite downsizing of the
corporation, TPDC still continued to carry out the delegated responsibilities from the Ministry of
Energy and Minerals that were largely been performed by the Directorate of Exploration, Production
and Technical Services (DEPTS) now referred to as Directorate of Upstream (DoU), the Legal Unit and
the Health, Safety and Environmental Unit. The DoU is now expected to assume most of the 55 staff
who were under DEPTS which include 43 geoscientists, engineers and technicians (among the total,
21 are MSc holders and, 3 PhD holders).
Well qualified personnel has enabled TPDC to promote the exploration opportunities and managed
to attract competent companies to explore for oil and gas in Tanzania. They have also taken an active
role in monitoring petroleum operations including having staff at the well-sites. However, as
operations expand the work burden on the few employees will increase, thereby reducing TPDC’s
effectiveness in carrying out its mandate.
NAME OF THE SECTION
1
2
3
4
5
6
7
8
9
Geophysics
Petroleum Geology
Petroleum Engineering
Biostratigraphy
Geochemistry
Library and Archives
Cartography
Civil Engineering
ICT
Total
NUMBER OF
STAFF
Male
7
10
7
8
3
1
3
3
3
45
Female
1
2
1
3
1
2
0
0
0
10
TOTAL NUMBER
OF STAFF
8
12
8
11
4
3
3
3
3
55
Fig. 12 Staff in the Directorate of Exploration, Production and Technical Services now referred to as
Directorate of Upstream, TPDC
Due to shortage of staff, TPDC did not create the Data Management unit. The functions of the Data
Management are coordinated by individuals drown from different sections in the Department of
Upstream. Those sections include: Archive Unit/Library, Data Bank Section, Geophysics Section,
Petroleum Geology Section, Biostratigraphy Section, and GIS section. The functions of the Data
Management staff included:
1. Receiving and disseminating data and information to PSA operators, Ministries and
institutions according to the regulations and company policy.
2. Coordinating to all other sections within TPDC on data usage (Geophysics, Geology,
Petroleum Engineering and Biostratigraphy units).
3. As custodian of Data (as stipulated in Petroleum (Exploration and Production) Act 1980) the
team is responsible for storage of data and all information related to petroleum operations in
Tanzania. Through this mandate, it has invested in several means on data storage (e.g.
31
TNA –Tanzania Upstream Petroleum Sector
establishment of data bank, GIS, introduced mapping and interpretation systems,
establishment of data room, core storage facility etc).
4.2.3
Strategic challenges and urgent capacity needs
TPDC plays an important role in the petroleum sector in Tanzania as the institution through which
the Government implements its petroleum policy. TPDC also has an optional right to participate in
the existing PSAs after a commercial discovery is declared and by that it has to operate as a
commercial entity and a key instrument to take care of the State’s direct interests in the sector. This
aspect raises a fundamental question with regards to the future roles of TPDC. The situation where
TPDC both assist in regulatory and commercial positions is problematic and calls for a separation of
these functions.
Although not formally a regulator, TPDC today is mandated a set of key functions on behalf of the
Government in the petroleum sector. This includes the licensing process, the monitoring of activities
in the PSAs and management of the petroleum data. All key decision processes on the sector
development will pass through TPDC and their overall capacity is critical to transforming the
petroleum resources to lasting values for the society.
TPDC with their presented delegated mandate will need a high level competence within the following
activity areas:






Resource assessment
Promotion
Negotiation & contracting
Monitoring of operations
Development planning
Data management& ICT
At the same time TPDC should have the necessary competence to serve the functions as an oil
company. This will be even more important in the future and reflected in the new structure in the
organization where TPDC reflects a more operational role in future licenses in Tanzania and
potentially also internationally.
The upstream authority functions in TPDC are predominantly carried out by the DEPTS or DoU,
supported by other key functions as legal services. The fundamental challenge which is pointed out
previously following the dual responsibility of serving functions both as an authority and a
commercial company is also a frustration among staff members. In the interviews it emerged
dissatisfaction with the work in the directorate which largely were administrative tasks rather than
academic.
As a tool to assess the competence level of DEPTS the staff has filled in competence assessment
forms addressing the key authority functions delegated to TPDC. Several of staff in the organization
however, will not have any role in carrying out the authority functions and will neither have any
experience or education within the relevant areas. We have therefore limited the database for
32
TNA –Tanzania Upstream Petroleum Sector
preparing average competence level to include the management, the geoscience staff and the
petroleum engineers.
The conclusion of the TNA is still that TPDC has major shortcomings on several of the activity areas.
This is further demonstrated by numerous uses of foreign and local consultants in matters such as
preparations for licensing rounds, negotiations with exploration companies, economic and reservoir
modeling, data management and other duties. Hence, despite being in existence for more than 30
years, TPDC is still lacking the critical competences necessary to be self-sufficient in the
implementation of its mandate.
Required
competence
0-5
Actual
competence
0-5
Petroleum policy development
Laws and regulations
Model agreement
Licensing strategy
Area selection
Guidelines for application
Seismic Interpretation
Geological Analysis
Play analysis
Prospect analysis
Resource inventory
Production forecasting
Full cycle economic analysis
Prepare promotional material
Establish physical data room
Contract virtual data room
Evaluate license applications
Conduct negotiations
Technical support for
negotiators
Economical evaluation
support
G & G survey monitoring
Drilling approval and
monitoring
Production monitoring
Decommissioning monitoring
2
3
3
3
4
3
4
3
3
4
4
3
2
3
4
2
4
3
1,9
2,2
2,3
2,2
2,0
2,1
2,0
2,4
1,9
2,0
1,9
1,6
1,4
2,2
1,9
1,8
1,3
2,1
4
2,2
3
2,3
4
1,7
3
2,1
3
3
2,1
1,6
Development
planning
PDO evaluation
4
1,2
3
1,3
Data management
and ICT
Data management systems
Storage media, data storage
and transfer
Office software use
3
2,5
4
2,8
Activity
Petroleum policy
and framework
Resource
Assessment
Promotion
Negotiation and
contracting
Monitoring of
operations
Fig. 13
Tasks
TPDC – DPTS; competencies and gaps
33
TNA –Tanzania Upstream Petroleum Sector
The analysis identifies major competence gaps within all activity areas, with 50% in the critical
category (red colour). The assessment is based on the average level of 27 staff members which are
likely to have a regulative responsibility as a part of their duties. Within this group there is also a
small group of individuals with extensive experience and a good competence level. However, the
results as presented in the competence table (Fig. 13) illustrate the fact that a large number of new
staff that has been recruited does not have the minimum competence necessary. The low
competence level however, is not only within the typical policy and regulative related functions, but
also within oil company core functions as seismic interpretation and prospect analysis.
In addition to the above, the inability on the part of TPDC to establish a dedicated section dealing
with data management is a serious shortcoming given the strategic nature of upstream information
and data as an effective tool for promotion and eventual exploration and development of oil and gas
resources. Given the unstructured way of managing data at TPDC it is difficult to work out a
sustainable way of strengthening capacity to meet the requirements for proper and secure data
management system.
The most essential competence gap however, is within management and leadership. In the course of
conducting the TNA, several observations have been made that can be ascribed to weak leadership
including lack of response on enquires from other governmental authorities and the industry, lack of
initiatives to increase cooperation and communication with other stakeholders, lack of delegation,
inefficient decision processes and insufficient utilization of human resources. We consider these
shortcomings on key organisational matters and the lack of interaction between TPDC, other
governmental institutions and with the industry as critical and an issue that put the development of
the sector at a high risk. We recommend immediate steps to implement a coached process on
strengthening the management of the corporation. We consider this as essential if TPDC should be
able to deliver according to its mandate, and for the petroleum sector to be developed to the benefit
of the country.
Health, Safety and Environment (HSE) unit is another area where there is a serious deficiency of staff
to meet its intended responsibilities. TPDC has recruited 7 new staffs to mitigate the critical shortage
of manpower in this unit. Of these new staffs, three each will be posted to the new natural gas
processing plants at the Songo Songo gas field and Madimba in Mtwara and the remaining one will
assist the only one environmental officer working at the head office. Lack of capacity has impacted
negatively on the Corporation in terms of coordination with the Ministry’s environmental unit, OSHA
and NEMC. For smooth operation and administration of HSE matters, there is a clear need of
strengthen coordination between TPDC with those institutions. The absence of TPDC participation in
the preparation of the country’s Strategic Environmental Assessment (SEA) in oil and gas industry is
also a serious anomaly one that needs to be rectified.
The HSE unit at TPDC is expected to offer its services to both upstream, downstream and other
projects that may be implemented by the corporation in the course of its development. While the
former organization structure had placed the HSE unit under the Directorate responsible for
upstream, the current organization structure does not provide any clarity as to the placing of the HSE
unit. Given the nature of the activities of this unit, it should be considered whether this unit should
34
TNA –Tanzania Upstream Petroleum Sector
be placed under the Managing Director’s office for it to render its services to any of the functional
directorates.
The main measures to close the identified competence gaps include:

General competence improvement of the fundamental aspects of the petroleum value chain
and the key decision gates is required for a large part of the newly recruited staff. This can
be done through short term interactive training.

Competence strengthening for development of licensing strategy is required in particular
with regards to the selection of areas for the licensing round to support an optimal long term
resource management process; the competence building could take place as workshops
addressing the topic and a coached process.

Enhancing skills related to the negotiation process is necessary. The present gaps are both
related to the preparation of the process, the evaluation of the application and negotiation
process itself including organizing the required support to a negotiation team. The approach
for competence improvement should preferably be through a coached negotiation process.

The process of resource assessment needs improvement. This includes the basic technical
skills of seismic interpretation and moving the process through geological analysis and
prospect assessment ending up in a resource account for Tanzania’s petroleum provinces. To
build competence within this area is a long-term process and can typically be drawn up for a
two year schedule combining workshops and training events and a supported on-the-job
process.

Skills related to the monitoring function need improvement. An interactive process with an
institutional partner should be established to implement effective processes.

Competence related to field development plans and to assess plans received by the
operators is required. This will be best done by linking up with an experienced institutional
partner. This area is preferably addressed working jointly on a concrete PDO.

Data management needs improvement. This includes enhancing skills necessary to develop
appropriate policies and guidelines on management of data.

Leadership training is critical both on an individual basis as well as for developing effective
and efficient management processes. This is a broad area requiring a long-term perspective
and a set of different competence building measures.
4.3 OSHA – Occupation, Safety and Health Authority
4.3.1
Mandates, organization and operations
OSHA is an Executive Agency established by an Act of Parliament with responsibilities to mainland
Tanzania and is mandated by the Occupational Health and Safety Act of 2003. The Act makes
provisions for the safety, health and welfare of persons at work in factories and other workplaces.
35
TNA –Tanzania Upstream Petroleum Sector
And with "workplace'' defined in the Act as any premises or place where a person performs work in
the course of his employment, the Act also pertains to the petroleum sector.
The Agency is authorized to ensure compliance with relevant laws and regulations regarding safety
and health in all work places. It is also the role of OSHA to review laws and to issue or approve
regulations or codes of practices needed to avoid accidents and minimize hazards, as well as to
develop all necessary tools for a comprehensive compliance monitoring of all working environments.
These duties include regulating Work Place Risk Assessments, the enforcing of relevant standards,
guidelines and legislation at work places and the keeping of registers and records of inspected sites.
While the Head Office and the CEO is situated in Dar-es-Salaam, the in-field services of the
organization are distributed through zonal officers located in the Coast Zone, the Northern Zone, the
Southern Highland Zone, the Central Zone, the Lake Zone and the Southern Zone with its office
Mtwara. The latter unit is recently established and located in the geographical region where the first
repercussions of the emerging petroleum operations are expected to have an impact on the society.
The OSHA inspectors represent a variety of relevant professions that includes medicine and nursing,
occupational health, industrial hygiene, ergonomics and construction. OSHA has an explicit policy
that the inspectors should have a professional background within the field they are assigned to
ensure compliance. This is in contrast to NEMC where the staff members in general have the label
‘environmental officers’ regardless of their professional education.
As explained to the TNA-team, a typical mission is performed by an inspector from one of the cited
professions, or by a team of inspectors representing the different disciplines of relevance for the task
at hand. The inspection will start by requesting documents and the compliance license. The company
policy, which is a legal requirement, will also be reviewed. Any discrepancies will be reported, and an
action plan to mitigate all shortcomings must be prepared by the company in question. When
acceptable compliance is stated, the inspected company will receive from the authorities a license to
operate renewed for another year. It is the responsibility of the company to request inspection to be
carried out for the compliance license to be issued. Reports on inspections are filed in a hardcopy
register where each company has a folder. For documentation the inspectors mostly uses PCs. These
however, are not working in a network. There is neither an electronic filing system nor a central
server to manage the reports.
The concept of inspection itself is derived from the prerequisite that a company cannot be trusted to
routinely abide with all regulations given by law. Hence, one informant emphasized that a system of
internal control, as for instance developed in Norway, could not be expected to function in Tanzania,
and neither could this concept be implemented under the present legal framework.
4.3.2
Baseline
OSHA has today a total staff of 77 employees. The number of inspectors performing audits and
monitoring amounts to 50. The total functional responsibility of the institution held up against the
overall capacity suggests that OSHA is seriously under-staffed. This aspect of organizational capacity
is however, beyond the scope of this assessment which is targeting potential gaps regarding
obligations related to petroleum operations and not to the Agency’s capacity per se. The issue of
36
TNA –Tanzania Upstream Petroleum Sector
manpower in this respect can be reduced to a question of allocating sufficient resources to
undertake inspection and monitoring of the nascent expanding petroleum industry and is solely a
management decision.
The workforce dedicated to specialize in dealing with the petroleum industry totals 10 inspectors,
including 5 senior staffs at the Head Office, 3 at the Mtwara office and 2 at the Coast Zone unit. The
distribution of experience of this petroleum unit reveals an experience gap from +9 years. This
situation underlines the importance of a retention policy which prevents further loss of personnel in
the 5-9 years group.
Fig. 14 OSHA; experience in the petroleum group
As the establishment of the Mtwara office confirms, steps have already been taken to anticipate
increased workload as a consequence of the expected growing petroleum industry.
Also in terms of competence development to meet future challenges, structured measures have
already been taken. This has been done through a rather comprehensive effort to evaluate training
needs. Seven categories of training needs have been identified:
1.
2.
3.
4.
Induction training for new recruits
Training to meet challenges facing the Agency
Training to bridge gaps in basic qualifications
Continuing education – to meet competence requirements of the professional bodies
represented in the Agency
5. Training of personal skills
6. Management and leadership training
7. Exit preparations for staffs retiring during the planning period
For each of the listed categories a three years execution plan has been outlined. All training
suggested is designed for individual follow up and the plans contain very detailed and specific
recommendations. The categories 1, 3, 4, 5 and 7 have the character of a classical organizational
improvement approach and should be considered for systematic execution independently of our
supplementing contribution here.
37
TNA –Tanzania Upstream Petroleum Sector
On the other hand, the intervention areas 2 and 6 regarding current challenges and management
skills are probably within our scope and have therefore been more closely evaluated by this project.
An interesting observation made with regards to the staff in OSHA is the difference between the
technical inspectors and the medical staff (Fig. 15). The technical inspectors in their declaration of
competence indicate a higher competence (blue colour) within the standard compliance related
areas (monitoring, inspection, auditing, enforcement etc.). The medical staff on the other hand,
rates themselves better with regards to policy and framework issues (red colour).
Activity
HSE Policy
and
framework
HSE
Governance
Tasks
Development of HSE policy
Implementation of HSE policy
Application of legal framework
Drafting of relevant Laws
Drafting of regulations
Preparation of guidelines and standards
Safety management and risk assessment
Risk reduction and establishment of barriers
Risk analysis and emergency prep. assessments
Emergency response management
HSE management systems
Parameters and indicators for HSE performance
Data collection and data use
Working environment analysis
Compliance monitoring
Conducting inspections
Conducting system audits
Security Management
Investigations of accidents and near misses
Incident reporting and enforcement
HSE issues related to the petroleum value chain
Technical
inspectors
competence
0-5
2,0
2,7
2,6
1,2
1,1
1,4
2,7
2,7
2,7
2,6
2,5
2,1
3,3
3,5
3,4
3,9
2,9
2,1
3,1
2,9
1,3
Doctors
competence
0-5
2,6
3,0
2,3
1,8
1,6
1,9
3,0
2,6
2,8
2,4
2,4
2,5
2,4
3,1
2,5
3,4
1,5
1,5
2,5
1,8
0,6
Fig. 15 Competence of technical inspectors and the medical team in OSHA
4.3.3
Strategic challenges and urgent capacity needs
As pointed out above OSHA’s functional mandate with reference to the Occupational Health and
Safety Act, applies to all sectors including petroleum. However, today OSHA as an institution and its
staff has no experience with the oil and gas sector.
The following areas have been identified as general gaps in the interviews with the OSHA
management and staff:
1. Competence to carry out auditing of work places in oil and gas industry;
38
TNA –Tanzania Upstream Petroleum Sector
2. Need for a general understanding of the oil and gas industry;
3. General understanding of petroleum operations both onshore and offshore; and
4. Understand how the operators in the petroleum industry prepare and implement their inhouse health and safety programmes.
The general lack of competence of HSE issues related to the petroleum value chain is also a clear
result from the competence assessment carried out by the staff (Fig. 16). The general competence in
Activity
Tasks
HSE Policy
and
framework
HSE
Governance
Fig. 16
Development of HSE policy
Implementation of HSE policy
Application of legal framework
Drafting of relevant Laws
Drafting of regulations
Preparation of guidelines and standards
Safety management and risk assessment
Risk reduction and establishment of barriers
Risk analysis and emergency prep. assessments
Emergency response management
HSE management systems
Parameters and indicators for HSE performance
Data collection and data use
Working environment analysis
Compliance monitoring
Conducting inspections
Conducting system audits
Security Management
Investigations of accidents and near misses
Incident reporting and enforcement
HSE issues related to the petroleum value chain
Required
competence
0-5
3
3
3
2
3
3
3
3
3
3
3
3
3
3
4
4
4
3
4
4
3
Actual
competence
0-5
2,4
3,0
2,7
1,6
1,5
1,7
2,7
2,6
2,6
2,4
2,5
2,3
2,9
3,3
3,1
3,6
2,4
1,9
2,9
2,5
1,1
OSHA competence and gaps
OSHA on core functions as monitoring and inspections appears to be adequate. The same is the
situation with regards to policy and applied framework, although the competence appears to be
better in the medical team than among the technical inspectors.
Areas where the gaps seem to be significant include the system auditing, the security management
and the handling of accidents and incidents. These are key areas for the petroleum sector and
should be prioritized for the future competence development.
The preparation of regulations and guidelines is also a topic where a significant gap is apparent. This
has not the same urgency as gaps within the governance area, but should still be on the medium
term agenda for further development of competence.
39
TNA –Tanzania Upstream Petroleum Sector
In addition to the competence areas sighted above OSHA needs to consider strengthening its
capacity by installing appropriate computerized systems to enable the head office to carry out real
online review of inspections and auditing carried out by it inspectors as well assist in its management
information system.
The main competence strengthening measures recommended to close the identified gaps are:

Additional short-term training in basic petroleum with a focus on understanding the HSE
issues related to the petroleum value chain. The training should cover the whole petroleum
group in OSHA.

Further training on key HSE aspects of petroleum technology and operations, preferably as
secondment to an oil company or drilling contractor.

Practical training in system auditing; the training should be supervised by a competent
consultancy or institutional partner.

Training and mentoring on issues of incidents and accidents to include incident reporting ans
well as incident and accident investigation. The competence building should be closely linked
to the development of a HSE database to reflect reports, accidents and near misses.

Competence development on drafting regulations through participation in the legal team
under the cooperation agreement.
4.4 The National Environment Management Council (NEMC)
4.4.1
Mandates, Organization and Operations
The National Environment Management Council (NEMC) is a national institution responsible for the
integrity of Tanzania’s environment for sustainable development. The vision of NEMC is to excel in
sound environmental management in order to assist that the nation fulfils its aspiration for
sustainable development while its mission is to ensure protection of the environment and
sustainable use of resources for enhancing the quality of lives of the people of Tanzania.
The council was established by Act of Parliament No. 19 of 1983 as a corporate body with an advisory
role. The Act was repealed and replaced by the Environment Management Act No. 20 of 2004 (Cap
191) which gave the Council more executive powers in managing the environment in Tanzania.
Specifically, Section 17(1) of the Act states:
‘The objective and purpose for which the Council is established is to undertake enforcement and
compliance, review and monitoring environmental impact assessments and in that regard shall
facilitate public participation in environmental decision making, exercise general supervision and
coordination of all matters relating to the environment assigned to the Council, under this Act or any
other written law.’
The general mandates of NEMC have been summarized in section 18 of EMA, Cap 191 as follows:
40
TNA –Tanzania Upstream Petroleum Sector
v.
Enforce and ensure compliance of the National Environmental Quality Standards.
vi.
Carry out environmental audit, review and recommend for approval of
Environmental Impact Statements (EIS).
vii.
Undertake and co-ordinate research, investigation and surveys in the field of
environment and collect, and disseminate information of such research, surveys or
investigation for, among other things, the proper management and conservation of
the environment.
viii.
Rendering advice and technical support to entities engaged in natural resources and
environmental management.
ix.
Enhancing environmental education and public awareness through programmes as
well as establishing and operating a central environmental information system for
sound environmental management, publishing and disseminating manuals, codes
and guidelines relating to environmental management.
x.
Prevention or abatement of environmental degradation.
xi.
Initiating and evolving procedures and safeguards for the prevention of accidents
which may cause environmental degradation and evolve remedial measures where
accidents occur.
xii.
Identifying projects and programmes or types of projects and programmes of which
environmental audit or environmental monitoring must be conducted.
xiii.
Undertaking any other functions as the Minister may assign from time to time.
The organogram of NEMC reflects the different directorates and support units in the organization.
National Environment Management Council
Director General
Legal Services Unit
Internal Audit
Corporate Planning
Unit
Procurement
Management Unit
Zonal Coordinators
Environmental
Planning and Research
Enforcement and
Compliance
Environmental Impact
Assessment
Environmental Info,
Communication and
Outreach
Finance and
Administration
Environmental
Research Coordination
Enforcement
Registration
Communication and
Outreach
Finance
Environmental
Planning of Special
Areas
Compliance
Environmental
Statement Review
Education and
Awareness
HR Management and
Administration
Monitoring
Environmental Trends
Environmental
monitoring
Monitoring and
Auditing
Information Systems
and Management
41
Fig. 17 NEMC organogram
TNA –Tanzania Upstream Petroleum Sector
NEMC has adopted a structure which organizes functions and responsibilities under five key result
areas:
a)
b)
c)
d)
e)
compliance and enforcement;
technical arbitration in environmental impact assessment;
environmental planning and research;
information, communication and outreach; and
resource mobilization and capacity building in environmental management.
The Council has defined 7 geographical zones of which 4 have operational units. The operational
units include the Southern Highland Zone with offices in Mbeya, the Southern Zone with offices in
Mtwara, the Northern Zone with offices in Arusha and the lake Zone with offices in Mwanza. The
other three namely, the Western zone, Central and Eastern zone are not yet operational.
Fig. 18 NEMC administrative zones
4.4.2
Baseline
NEMC has a work force of 166 professionals covering various disciplines including engineers,
sociologists, environmentalists, geologists and others. About 41% of staff is female employees. They
work in teams and as general environmental officers. Oil and gas is not a profession they presently
have specific competence within.
42
TNA –Tanzania Upstream Petroleum Sector
Of the total number of professionals 45 are graduates with first degree, 60 have master’s degree and
6 have PhD. At present, 11 employees are pursuing master’s degree courses and 2 are pursuing
PhDs. About 41% of the professional staff is women. Among the men 47% have MSc/PhD degrees.
The share of MSC/PhD holders among the female staff is 78%.
NEMC staffing level appear to be adequate despite the fact that they will require more personnel to
fill in the gaps of the three zones which are yet to be operational. The Council has an added
advantage of having a reduced work load due to the Government’s initiative of having environmental
management units in sector ministries including the Ministry of Energy and Minerals. In addition, at
regional administration level, there are environmental officers who follow environmental issues and
liaise directly with NEMC and the Vice President’s office.
NEMC has both a highly educated organization and a staff with a broad experience level. They also
have an experience profile without any apparent gaps. There will be a number of staff ready for
retirement within the next few years, but at the same time new employees are coming in to the
organisation. The average employee has an experience in NEMC of 8 years and a total experience of
13 years. The experience is related to the level of education. Hence, the staff with an MSc degree
Fig. 19 NEMC experience of staff
has on average 11 years of experience with NEMC and 17 years in total while staff with a BSc on
average has worked 4 years in NEMC and 7 years in total. But NEMC is pursuing an active policy
supporting staff members to take additional education, and several of the present BSc staff will be
expected to receive an MSc later.
4.4.3
Strategic challenges and urgent capacity needs
The Council has a conscious view on competence development and conducts its own TNA and
develops a comprehensive training programme. The implementation of this programme however, is
facing financial constraints. The Council has placed development of competences in management of
43
TNA –Tanzania Upstream Petroleum Sector
environment in oil and gas industry as a priority in line with their general slogan: ‘Keep on training
until you become competent’.
Activity
Environmental
Policy and
framework
Environmental
Governance
Tasks
Development of policy
Implementation of policy
Application of legal
framework
Drafting of relevant laws
Drafting of regulations
Development of
guidelines and use of
standards
Climate change and
considerations
Social and economic
considerations
Land use planning
Coastal Zone
management
Assessment of EIA
Scoping and conducting
SEA
Ecosystem-based
Management Planning
Environmental Permitting
Compliance monitoring
Conducting inspections
Conducting system Audits
Waste management
Oil spill preparedness and
contingency planning
Oil spill clean-up
Management of
environmental data
Environmental issues
related to the petroleum
value chain
Required
Actual
Competence Competence
0-5
0-5
3
3,9
3
3,8
4
3,8
3
3
3,0
2,8
3
2,9
3
3,4
3
3,3
3
2,4
3
3,5
4
4,1
3
2,3
3
3,2
4
4
4
4
3
3,6
3,4
3,4
3,0
3,0
3
2,6
3
2,5
3
3,0
3
2,7
Fig. 20 NEMC staff competence and gaps
The assessment of the challenges NEMC is facing and the short and medium term competences that
needs to be developed is based on the interviews with the management and representatives of the
staff as well as competence questionnaires submitted to the employees. There are some
inconsistencies between these information sources. In general, the competence gaps were more
explicitly expressed during the interviews than in the questionnaires.
44
TNA –Tanzania Upstream Petroleum Sector
The general competence of NEMC appears to be good (Fig. 20). There are no significant gaps with
regards to policy and framework. Most areas within environmental governance are also well covered
in particular for the traditional governance areas as EIA assessment, monitoring and inspections.
There is a more pronounced gap when it comes to conducting system audits. Also the scoping and
conducting SEA is an area where competence should be strengthened. Both system audits and SEAs
have a central position when it comes to environmental governance of the petroleum sector.
More specifically related to the petroleum sector the following areas have been highlighted in the
interviews and where competence that may need to be strengthened in order for the NEMC to carry
out its mandate in the petroleum sector:
i.
ii.
iii.
iv.
v.
How do we manage waste from the petroleum activities
What chemicals are used in the sector
The role of NEMC related to major oil spills
How to monitor petroleum activities
How to manage expectations
Although the staff express an adequate knowledge about the environmental issues related to the
petroleum chain, this point is probably overrated in the questionnaires and both general knowledge
and specific competence is still required. Staff members from NEMC participated at the OilSim basic
petroleum training, but a broader approach to cover a larger part of the staff is needed.
Oil spill contingency and oil spill clean-up are important areas related to the petroleum sector
activities. Although the offshore petroleum resources so far have been gas, the future discovery of
oil is possible. Further, there is substantial shipping traffic along the coast of Tanzania including large
volumes of oil cargo. The responsibility for oil spill contingency rests with SUMATRA (Surface and
Marine Transport Regulatory Authority). But NEMC will be requested to assist if an incident should
occur. It is important that adequate training is conducted with emphasis on the interaction between
the various stakeholders.
The following measures are proposed to strengthen the petroleum sector related competence in
NEMC:

Additional basic petroleum training with a focus on the environmental aspects in the
petroleum value chain; less extensive and more efficient options than OilSim can be
considered.

Basic training in waste management issues in the petroleum sector and the use of chemicals.

Practical training in system auditing of petroleum sector companies; this training should be
conducted on-the-job with proper coaching by a competent consultancy or institutional
partner.

Conduct exercises with SUMATRA and other key stakeholders in oil spill preparedness and
response.
45
TNA –Tanzania Upstream Petroleum Sector
4.5 Department of Energy & Minerals; MLHWE, Zanzibar
4.5.1
Mandate, Organization and Operations
The responsibility for petroleum sector in the Revolutionary Government of Zanzibar is within the
Ministry of Lands, Housing, Water and Energy (MLHWE). This ministry has a very wide span of
control and the appropriateness of this is an issue of future debate in particular if the new
constitution provides new responsibilities for the petroleum sector (Fig. 21).
MINISTER
DEPUTY
MINISTER
STONE TOWN
BOARD
BOARD OF
ZECO
BOARD OF
CONTRACTORS
BOARD OF
ZAWA
CONDOMINIUM
BOARD
LAND TRANSFER
BOARD
PRINCIPAL
SECRETARY
OFFICR INCHARGE
DEPUTY PS
DIRECTOR OF
ENERGY AND
MINERALS
DIRECTOR OF
CONSTRUCTION
DIRECTOR OF
HOUSING AND
HUMAN SETTLEMENT
PEMBA
DIRECTOR OF HR
AND ADM
DIRECTOR OF
PLANNING POLICY
AND RESEARCH
DIRECTOR OF
LAND AND
REGISTRATION
DIRECTOR OF
URBAN AND
RURAL PLANNING
DIRECTOR OF
SURVEY AND
MAPPING
HEADS OF DIVISION - PEMBA
Fig. 21 Ministry of Lands, Housing, Water and Energy - Organogram
The responsibility in MLHWE is further delegated to the Department of Energy and Minerals. Also
this department has a wide responsibility and is structured in 5 divisions of which the Petroleum
Exploration and Production Division is one.
46
TNA –Tanzania Upstream Petroleum Sector
Department of Energy and Minerals
Petroleum Exploration
and Production Division
Information,
Communication and
Education Unit
Specialised Function
Committees
Energy Legal Unit
Pemba Sub-office
Energy Market Division
Energy Resources
Development Division
Administration and
Finance Division
Oil and Gas
Development Unit
Energy Use
Management Unit
Policy, Research and
Development Unit
Human Resource Unit
Up-stream Data
Management Unit
Quality Control and
Standards Unit
Energy Technologies
Development Unit
Planning Unit
Petroleum Exploration
and Production
International
Consultants Team
Energy Supply
Management Unit
Electrification
Development Unit
Finance Unit
Minerals and
Geoscience Division
Research &
Development UNit
Energy Data-base Unit
Fig. 22 Department of Energy and Minerals, Zanzibar; Organogram
The objective of the Department of Energy and Minerals is:


To create a framework for production, procurement, transport, distribution and
consumption of energy as an input to the development of Zanzibar in an environmentally
sound manner
To stimulate and attract private sector investment in the energy sector.
The Petroleum Exploration and Production Division has however, not worked according to an explicit
mandate. The petroleum sector is according to the Constitution a Union matter with the sector
responsibility resting with the Ministry of Energy and Minerals and with TPDC as an implementing
organization and with many technical and PSA related tasks delegated by the Government.
The PSA between the Government of the United Republic of Tanzania, TPDC and Antrim of Canada
which was signed on 29th January 1997, could not be implemented. Likewise, the second licensing
round that took place in 2001 for Blocks 9, 10, 11 and 12 offshore Zanzibar and awarded to Shell, the
PSAs were never concluded due to different positions on the future rights, responsibilities and
sharing of potential revenues between Zanzibar and mainland.
Zanzibar’s participation in the petroleum activities has been limited. They are represented in the
negotiation team who is responsible for the PSA process and has recently been participating in
47
TNA –Tanzania Upstream Petroleum Sector
preparation meeting for the 4th licensing round. The Principal Secretary of MLHWE is one of 10
members of the TPDC Board of Directors.
4.5.2
Baseline
In August 2008 Bridge Consult carried out an organizational review and TNA of the Department of
Energy & Minerals on behalf of Norad. At that point the political impasse based on a disagreement
on the sharing of potential future petroleum revenues and which prevented any exploration to take
place offshore Zanzibar, had lasted more than 10 years. This situation which implied that no
meaningful functional responsibilities related to the petroleum sector were assigned to the MLHWE,
created a situation where no essential capacity for petroleum resource management was developed.
The report from 2008 gave the following summary:
While the staff in DoEM generally have good educational background and are enthusiastic
about the prospect of working with petroleum exploration, it is difficult not to identify wide
gaps in all the defined needs for a governmental department responsible for upstream oil
promotion, negotiation and monitoring.
Unfortunately, the situation 6 years later is largely the same. There is still no political solution to the
stalemate and the capacity and the gaps are as wide as they were in 2008. At that point the DoEM
staff counted 6 professional and 19 support staff. Today the number is 9 professionals and 24 in the
support category.
Two new staff members with MSc degrees have been added and another staff member completed
additional education also resulting in an MSc degree. While these additions in formal education are
welcome, they can only be converted to institutional capacity through carrying out relevant
functional tasks.
4.5.3
Strategic challenges and urgent capacity needs
The Government of Zanzibar issued an Energy Policy in December 2009. Based on this policy an
implementation plan has been prepared and issued by the Department of Energy and Minerals (8.
August, 2013). This is a comprehensive strategic framework covering all energy areas as stipulated in
the policy. 9 goals for the energy sector provide the foundation, and 77 strategies are developed.
Neither the Energy Policy nor the implementation plan present any clear statements with regards to
the present and future responsibilities of the petroleum sector with reference to the Constitution
and the changes that are expected. As a footnote to the future activity on a petroleum act however,
it is stated that the activity is subject to the URT constitutional change. We assume that this
constitutional change also remains as an assumption for the other strategies and activities in the
plan.
The key goal for the development of the petroleum sector is the third goal in the document:
A need to explore and increase the use of indigenous sources for energy supply
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TNA –Tanzania Upstream Petroleum Sector
The strategies in support of this goal are:
1. Establish and implement Petroleum law and its regulations.
2. Develop a comprehensive plan and model for exploration for fossil fuels and determine the
benefit sharing relations between the Government and investors in potential fossil fuel
findings in Zanzibar.
3. Build institutional administrative and professional capacity to handle exploration of fossil
fuels onshore and offshore, as well as renewable energy sources.
4. Develop comprehensive conditions for exploration and production in relation to
International Laws and Conventions that comply on environmental conservation.
5. Establishing guidelines based on good governance, fairness and transparency in managing all
contracts of exploration and production of petroleum and natural gas that will be ratified by
the Zanzibar House of Representatives.
6. Investigate and actively promote cooperation with local and foreign investors for
investments in the energy sector. Review the Foreign Direct Investment (FDI) promotion
conditions.
The plan does not reflect the preparation of a petroleum policy which should be a logical step before
the preparation of the legal framework starts. The existing Energy Policy is very general and does not
in our opinion provide the necessary guidance on which a petroleum act can be built. Hence, we will
recommend that the petroleum policy is introduced as the initial step.
In the discussion between the TNA Team and Principal Secretary Ali Mirza, the PS emphasized the
general principle of moving slowly forward and not to rush. The activities outlined in the plan seem
to be in support of this principle. Within the first strategy one of the underlying activities is to
establish a separate regulator for the petroleum sector within 2017. There is also a set of planning
activities with the same time frame. The plan also reflects a separate TNA to be conducted in 201516.
The timeline reflected in the implementation plan provides some time to implement measures to
increase the competence and overall capacity of the petroleum authority. However, the
implementation of these steps should commence immediately and not wait until the new
constitution formally introduces the new mandate and responsibility.
The TNA conducted in 2008 concluded that the gap was wide for all the functional responsibilities
that were assessed. Some modest improvements with regards to the competence have taken place
during the last 6 years from new employees being introduced and further education carried out. The
experience level however, related to key functions has not changed. Further, the gap in the 2008
report was defined based on the functional responsibilities of the DoEM at that time. With the new
assumption that the petroleum will be lifted out of the union matters and the full responsibility
transferred to Zanzibar, the competence gap will widen further.
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TNA –Tanzania Upstream Petroleum Sector
Activity
Petroleum policy and
framework
Resource Assessment
Promotion
Negotiation and contracting
Monitoring of operations
Development planning
Data management and ICT
Tasks
Petroleum policy development
Laws and regulations
Model agreement
Licensing strategy
Area selection
Guidelines for application
Seismic Interpretation
Geological Analysis
Play analysis
Prospect analysis
Resource inventory
Production forecasting
Full cycle economic analysis
Prepare promotional material
Prepare promotional meetings
Establish physical data room
Contract virtual data room
Evaluate license applications
Conduct negotiations
Technical support for negotiators
Economical evaluation support
G & G survey monitoring
Drilling approval and monitoring
Production monitoring
Decommissioning monitoring
PDO evaluation
Data management systems
Storage media, data storage and transfer
Office software use
Priority
High
High
High
High
Medium
Medium
High
High
High
High
High
Low
Medium
Medium
Low
Low
Low
Medium
Medium
Medium
Medium
Medium
Low
Low
Low
Low
Medium
Medium
Medium
Fig. 23 Prioritised areas for competence development in DoEM
The main challenge however, will be that the staff available will be far too limited to take on the
responsibility of the petroleum sector. A major recruitment campaign will have to be conducted if an
independent regulator should be put in place and be anything close to handle its responsibility.
The table presents the proposed priorities of functional tasks where measures on competence
enhancement should be made (Fig. 23). These priorities primarily follow the petroleum value chain
and the steps the authorities will have to take to support the development of the sector. The most
urgent competence development is required within the area of petroleum policy and framework as
this is a work which has to start as soon as possible. In parallel the basic process to be able to assess
the resource potential should commence. Competence building within this area will take time and
should therefore also start immediately.
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TNA –Tanzania Upstream Petroleum Sector
The present competence gaps cannot be filled through ordinary training. It is required that the staff
can be put in positions where on-the-job training can take place. This may be achieved through
secondment to oil companies or governmental institutions. In the TNA from 2008 the possibility of
secondment to TPDC was identified. This option was also confirmed by TPDC, but has apparently not
been followed up. The possibility is still considered feasible, but requires action from the PS.
Alternatively, coaching/mentoring in Zanzibar will be an alternative where experienced counterparts
can work together with representatives from the authorities on a long-term basis. The institutional
cooperation model with short and limited visits by representatives from Norwegian institutions is not
an adequate working model to achieve sustainable capacity development.
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TNA –Tanzania Upstream Petroleum Sector
5. Challenges and key measures for competence building
There is a significant awareness in all institutions with functional responsibilities for the upstream
petroleum sector, that the competence needs to be strengthened both with regards to the
petroleum sector as well as on policy and governance issues in general. A number of reports have
been issued that describe the future staffing requirements and training needs. These documents in
general however, present a need without documenting any assessment of the sector development or
the present competence level.
The plans presented are also very ambitious and states levels of new recruitment and training that
are more than challenging to reach. The general feedback to the TNA team is that the training plans
at best have only partially been implemented. The financial constraint is a main factor to this. The
TNA team will also question if there is sufficient institutional capacity to absorb the high number of
planned training activities, whilst the ability to fulfil roles and responsibilities is maintained.
Every institution has an independent responsibility to identify competence needs and plan for how
this can be developed. It is important however, that they assume a more focused and realistic
approach than is reflected in the existing documents. Further, it is essential that each institution has
a clear understanding of its functional responsibility with a reference to the present and future
situation in the petroleum sector. The available budget will always constitute a constraint both to
recruitment and competence development. It is therefore important for each institution to be able
to prioritise and execute the most urgent training needs based on a firm understanding of and focus
upon the immediate petroleum sector decision gates.
The TNA has identified a wide range of gaps which should be closed through appropriate
competence development measures in the short and medium term. Some of these gaps relate to the
lack of basic knowledge about the petroleum sector in terms of terminology, operations and
technology. These gaps can be filled by ordinary training activities.
However, the more important gaps are related to how the institutions should carry out their
functional responsibilities. To achieve sustainable competence development within these areas it
will be necessary to apply the new knowledge in an active working situation. This requirement is
recognized by the institutions and they have all expressed a great need for “on-the-job training” to
support a better in depth understanding of the petroleum sector, especially the offshore activities.
Several initiatives have been discussed with oil companies like Statoil and BG. On the job training
adds to more formal training activities, e.g. courses and educational studies.
The TNA team supports on-the-job training or an actively coached approach, as very effective
measures to develop competence. A structured on-the-job training can be executed both internally
in the institutions and externally at oil company’s production facilities or offices. A combination of
the two is recommended to avoid heavy personnel drainage to external assignments. Based on
experience, use of multidiscipline teams working with real tasks is the optimal way to achieve the
best effect of on-the-job training. Teams can also be organised with participants from different
companies and institutions if the task to be solved allows for this.
This agreement between Norway and Tanzania for support to the capacity development of the
petroleum sector is based on an institutional cooperation structure where a governmental institution
52
TNA –Tanzania Upstream Petroleum Sector
in Tanzania with an assigned functional responsibility within the petroleum sector should link up with
the appropriate counterpart in Norway. While this should be a good model for developing the
desired competence of the institutions in Tanzania, a key challenge is the limited availability of the
Norwegian institutions.
This TNA has identified a large number of important gaps, but also concluded that many of these
gaps can only partly be filled through short-term training and interaction. In general, effective,
efficient and sustainable competence building requires a continuous and active interaction between
the partners. The Norwegian institutions however, are normally only available to actively interact in
short periods and will not be able to fill the required role. It will be possible to identify consultants
who can supplement the institutions and serve in the long-term coaching role which is necessary in
close cooperation with the Norwegian petroleum authorities.
For the more technical functions and where on-the-job training is considered as an adequate
approach, it is logical to have oil companies involved in the PSAs are natural candidates. And while
they cannot give insight to the authority perspective, they will provide valuable opportunities on the
operational aspects of the petroleum value chain. However, the capacity of an oil company within
major parts of the value is often limited as many tasks are carried out by suppliers and service
companies.
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TNA –Tanzania Upstream Petroleum Sector
6. General observations and recommendations on the petroleum
sector organisation
6.1 The role of TPDC
The Government of Tanzania has organized its governance of the petroleum sector by having a
rather small ministry with a policy responsibility for the sector and a larger national oil company
(TPDC) with a delegated role to implement the policy. This implies that TPDC is delegated several key
governmental functions related to the sector governance. This includes the acquisition, processing
and management of petroleum data. Further, the functions include resource assessment and
managing the licensing process. TPDC will also conduct monitoring and ensure that the licensing
terms are complied with.
This delegation of roles to the national oil company whereupon this entity both will undertake
governmental functions as well as being a commercial participant, is a way of organizing the sector
several countries have adopted. But there is also extensive experience on some of the challenges
which may arise. One of these is the broad scope of responsibilities commonly assigned to the NOC
which makes it difficult to maintain a commercial focus.
Further, it is also fundamentally problematic that a NOC is managing a licensing process which also
involves future license interest to the same company. Also the supervision and monitoring by the
NOC of licenses in which the company have future commercial rights is a contradiction.
We will therefore recommend that the future role of TPDC is scrutinized with the perspective of how
the policy, regulative and commercial functions of the State is best addressed. We are aware that
this is a current discussion in the Government and that a concept of establishing an independent
regulator for the sector is proposed. We will encourage this process to continue.
6.2 The organization of MEM
The Ministry of Energy and Minerals has organized the institution in two departments with
responsibility of energy and minerals respectively. The Energy Department has separate units for
petroleum and gas utilization. The Gas Utilization Section was established in 2012 in response to the
substantial offshore gas discoveries made and the ambition of Tanzania to become a gas nation. This
split of key responsibilities of the petroleum sector however, has been challenging. This is partly a
result of that key decisions on the gas development must be made with reference to the PSAs which
are assigned to the Petroleum Section rather than the Gas Utilization Section. A good
communication between the units also seems to be difficult to establish.
Based on the importance the petroleum sector is likely to have in the future for Tanzania, we
propose that a separate Petroleum Department is being considered. This department will include
both the Petroleum Section and the Gas Utilization Section. The department should be headed by a
separate commissioner reporting to the Permanent Secretary. Also the organization of a Petroleum
54
TNA –Tanzania Upstream Petroleum Sector
Department should be further evaluated in the context of the establishment of a possible
independent regulator. It may be considered if separate sections for exploration/licensing,
development and marketing should be established. We will also propose that the option of having
legal officers in the Petroleum Department is considered to strengthen the competence on
petroleum legal issues.
6.3 The organization of HSE
As discussed in the chapter addressing OSHA, this institution is mandated by the Occupational Health
and Safety Act of 2003 which applies to all workplaces including the petroleum sector. It is presently
unclear however, how the role of TPDC as an implementer and monitoring the PSAs should be
harmonized with the functional responsibilities of OSHA. But as pointed out above the future role of
TPDC should be reconsidered.
The aspects of HSE relevant for the petroleum sector are very different from the issues normally
considered by OSHA. Hence, it should be considered if a separate Petroleum Safety Authority should
be established. Alternatively, this unit may be a part of OSHA, but it should be given a separate
mandate and the necessary resources to develop the required institutional capacity.
6.4 The environmental responsibilities for the petroleum sector
NEMC has a general national environmental responsibility with the perspective of ensuring the
integrity of Tanzania’s environment for sustainable development. This responsibility covers all
sectors and NEMC has chosen to organize the institution according to main functions rather than
reflecting a sector responsibility. While arguments can be raised in support of this model, it is also
challenging with regards to building the required sector competence. In light of the future
importance of the petroleum sector also for the environment, NEMC should consider to reflect a
sector perspective in the organization.
Although the future role of TPDC is up for discussion, a national oil company will always have a
responsibility and a role to fill with regards to the protection of the environment. TPDC today has
only one person assigned to this area and their capacity should be improved. Also the interaction
with NEMC should be defined and strengthened.
6.5 The organization of the petroleum sector in Zanzibar
The present responsibility of the petroleum sector in Zanzibar is within the Ministry of Lands,
Housing, Water and Energy. The Department of Energy and Minerals is one of seven departments
within MLHWE. In DoEM the Petroleum Exploration and Production Division is one of five divisions.
If the new constitution implies that the petroleum sector will become a non-union matter and the
sector responsibility for the Zanzibar continental shelf transferred to the Zanzibar authorities, it is
required that the petroleum sector responsibility receives a substantially more visible position in the
Government administration. It is prudent to consider if the scope of MLHWE is too broad and the
present Department of Energy and Minerals should be given a ministry status.
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TNA –Tanzania Upstream Petroleum Sector
7. Gender
The Government has a clear focus on the gender issues with the functional responsibility for gender
mainstreaming and women development delegated toMinistry of Community Development, Gender
and Children
The Vision 2025 for Tanzania Mainland stipulates equality between men and women as laid down in
the Constitution and recognizes gender equality and the empowerment of women in all socioeconomic and political relations and cultures as one of the strategies to attain the vision. Key
national policy frameworks such as the Strategy for Growth and Reduction of Poverty have identified
gender equality and women’s empowerment as among the major development issues which require
multi-sectoral approaches. Tanzania’s Five Year Development Plan (FYDP) emphasizes women’s
economic empowerment as a means of bringing about equality in economic empowerment.
The gender issue was raised in the interviews the TNA team conducted with the institutions involved.
All institutions confirmed their attention to this matter. In general the women were well
represented at all levels in the organisations.
Institution
MEM- Petroleum Section
TPDC - DEPTS
OSHA
NEMC
MLHWE – DoEM (Zanzibar)
Men
7
45
78
98
19
Women
2
10
34
68
14
%
22
18
30
41
42
Fig. 24 Gender distribution in the institutions
Some of the specific information received during the interviews:
MEM
Interviews with female staff members confirmed that they were recognized and respected on equal
terms. The Ministry has a dedicated desk officer dealing with gender issues.
TPDC:
There is no gender policy in place in TPDC or other steering documents reflecting objectives or
principles with regard to gender issues.
Of the 55 employees in DEPTS, 18% are women. The director of the directorate is presently a
woman.
OSHA
The gender issue is reflected in the strategic plan of OSHA. This is one of three cross-cutting areas.
The others are environment and HIV. There is a separate gender unit headed by the head of the
legal unit.
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TNA –Tanzania Upstream Petroleum Sector
Of the total OSHA staff of 112, 30% are women. Among the professional staff of 52, the female share
is 33%. There is an equal number of both genders in the MSC/PhD group. The female share is
increasing within the areas of hygiene and construction, but is still lacking within the electrical unit.
An equal number of men and women should be sent for training. The law requires minimum 1/3 in
the organization. The trade union has also a women group.
As for gender mainstreaming at OSHA, the meeting was informed that OSHA has adequate
programmes for mainstreaming gender into the organization. Equal opportunities are granted to
both genders and special treatment is granted to female in matters of employment, advancement in
career consistent with the National Gender Policy.
NEMC
NEMC has an organization of 166 employees with 41% women. There are 45 female professionals;
78% of these have MSc/PhD degrees.
NEMC have not developed any gender policy for the institution; they in general adhere to the
national policy on gender. Still gender issues are focused; more awareness should be raised and it
should be demonstrated that the activities under the NEMC responsibility are for both genders.
Campaigns to increase awareness are needed for women to build confidence to perform at their
required level.
DoEM - MLHWE
The gender issue was recognized, but no explicit strategy was in place. In general men and women
were treated equally, but there were only two women in the department. It was considered easier
to achieve funding for competence development for women. Zanzibar considered themselves better
on gender issues than the mainland.
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TNA –Tanzania Upstream Petroleum Sector
8. References
ACIL Tasman: Economic Impacts of the Oil and Natural Gas Industry in 2011 – Papua New Guinea;
February 2008
African Development Group: PROJECT: Support to Technical Vocational Education and Training and
Teacher Education, April 2013
Association of Tanzania Employers (ATE): Skills development Assessment; 2011
CRES (Centres de Reserches, Enterprises et Sociétés): Skills Shortages in the global Oil and Gas
Industry: How to close the gap; December 2012
Department of Energy and Minerals, MWCEL - Zanzibar: The Implementation Plan of the Zanzibar
Energy Policy; June 2013
Education Sector Development Committee: Education Sector Performance Report 2011/12;
September 2012
Energy Institute: Skills needs in the energy industry; January 2008
Ernst & Yong: Natural Gas in Africa – The frontiers of the golden age; 2012
HEARTH: Engaging the private Sector in Skills Development; January 2013
International Growth Centre:Lessons for Developing Countries from Experience with Technical and
Vocational Education and Training; January 2012
INTSOK: East African Annual Market Report 201 4- 2017; June 2013
Local Content Solutions Ltd: Local Content Policy in the Petroleum Sector in Tanzania: Core Issues,
Expenditure Categories and Road Map; March 2012
Ministry of Education and Vocational Training: Medium Term Strategic Plan 2010/11 – 2012/13
Ministry of Education and Vocational Training: Technical and Vocational Education and Training
Development Programme (TVETDP) 2013/14 – 2017/18; April 2013
Ministry of Energy and Minerals: Human Capital Development Programme in the Oil and Natural
Gas sub-sector; August 2012
Ministry of Energy and Minerals: Human Capital Development Programme in the Oil and Natural
Gas sub-sector; March 2013
Ministry of Energy and Minerals: National Oil and Gas Training Needs, May 2013
Ministry of Energy and Minerals: Tanzania’s Energy Sector, January 2014
Ministry of Energy and Minerals, Energy Department: Proposed Training Programme2012/2013
Ministry of Water, Construction, Energy and Lands – Zanzibar: Zanzibar Energy Policy; December
2009
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TNA –Tanzania Upstream Petroleum Sector
Mineral Resources Institute: Mineral Resources Institute Prospectus 2013; June 2013
Ngowi, Honest Prosper: Skills Development to Meet the Needs of Oil and Gas Industry in Tanzania;
July 2013
NORAD: Bridge: Organizational review and TNA forDepartment of Energy – MWCEL, Zanzibar;
October 2008
NORAD: Mapping and analysis of the needs for petroleum related education in Tanzania (Norad
Report 16/2013); December 2013
OECD: Innovation in skills development in SMEs
President’s Office, Planning Commission: The Study on national Skills Development to facilitate
Tanzania to become a strong and competitive economy by 2025; October 2012
PWC:Economic Impacts of the Oil and Natural Gas Industry in 2011; July 2013
Schlumberger: Bridging the Talent Gap; Oil Field Review - 2013
Schlumberger Business Consulting: Local Content to fuel African Oil Growth; November 2012
Statoil: Tanzania Gas Project; August 2013
TPDC: Overview of Petroleum Exploration and Business Opportunities in Tanzania, January 2014
UNIDO: Tanzania Industrial Competitiveness Report 2012
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TNA –Tanzania Upstream Petroleum Sector
Attachment 1
TNA – Terms of Reference
60