Dar es Salaam — It has been revealed that some oil and gas exploration companies operating in the country are playing filthy games aiming at looting the wealth of the country.
It has requested the Tanzanian government to start auditing oil and gas exploration firms, aiming to block loopholes.
Currently there are about 18 foreign companies with 26 gas exploration licenses, exploring gas in and off the country's coast.
According to the Minister for Energy and Minerals, Prof Sospeter Muhongo, some of these multinational companies have been presenting very high operation costs in their oil and gas exploration activities some of which are not true.
"All these tricks aimed at looting the wealth of the country because when the actual production of gas begins they will demand their operation cost payout. The payout might take years before the country starts benefiting from its own resource. Therefore, it is time we do something before it is too late," he said.
According to the production-sharing agreements, exploring companies bear the total cost of prospecting. But concerns are mounting that some firms are exaggerating the costs to reap more profits during production.
The Minister urged the newly appointed Tanzania Petroleum Development Corporation (TPDC) Board of Directors to do the auditing to prevent cheating.
"There is no harm if you can find eligible international auditing firm to cooperate with you in finding the truth about all these costs. This should be done as soon as possible," said Prof Muhongo.
Sighting examples of oil and gas countries like Brazil, Norway, Malaysia, Prof Muhongo said that there is a necessity for a state-run, TPDC to venture in oil and gas businesses, starting from exploration, drilling and selling of the final product.
For the mean time, he said the government is looking for funds that would be given to TPDC to venture in drilling and exploration of oil and gas.
Earlier in September, TPDC delayed a licensing round for nine deep-sea oil and gas blocks previously set for this month until a parliamentary vote on a new gas policy in October. The TPDC Managing Director, Mr. Yona Killagane said the first delay was to allow the state to stake of the results of the 2010/2012 deep-water drilling.
"The fourth licensing round will be pushed up to November 2012 at the earliest, if at all the parliament approves a new natural gas policy in its October season," he said.
The nine blocks are at between 1,200 metres and 3,500 metres of water depth.
Via allAfrica
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