PJ . TANZANIENNE DANS LE SECTEUR DE L'ENERGIE Part N°2

7/26/2019 PJ . TANZANIENNE DANS LE SECTEUR DE L'ENERGIE Part N2

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Petroieum /\et; 2015

(8) For purpose of subsection ( 1) (a) "transfer of an interest in a

license" includes a transfer of an interest in a l license by operation of law.

Minister may

require

information

88. The Minister may require any person who makes application

to furnish to !# such information to enable him to dispose the application$

and the applicant shall comply with the requirement.

%ub&art '

'nformation and Documentation

'nformation$ data 8.&( 1) # 11 petroleum data *enerated underthis #ct shall be owned by theand reports

+o,ernment.(-) The license holder and contractor shall *i,e copies of data *enerated

undersubsection ( 1) to !/ free ofchar*e.

(0) !/ ma y permit the license ho l d e r $ contractor and s u b c o n t r a c t o r to market the ri*hts oruse data on terms to be a*reed upon.

() The license holder or contractor shall not e2port any core$ cuttin*s$

rock samples$ fluid samples or any other data collected without the writtenauthori3ation of !/.

(4) !/ shall establish the 5ational 6il and +as esource 7ata ankfor the stora*e of petroleum data generated under this #ct.

(9) The license holder and permit holder shall submit to !# accurate

*eolo*ical maps and plans$ *eophys ical records$ and interpretations relatin* to

the license area.(7) The license holder and permit holder shall submit to !#$ in such

form it may require&

(a) at half&yearly inter,als commencin* si2 months after the *rant of

licence&

(i) a summary or *eolo*ical *eochemical and *eophysical work

carried out:(ii) a summary or ail drillin* acti,ity and results obtained;(iii) copies or maps$ tapes or reports or other *eolo*ical$

*eochemical ;111tl *eophysical data prepared for the licence

holder in respect of the period concerned;(b) within si2ty days after the end of each year or the term of licence&

(i) a record describin* the results of all petroleum acti,itiescarried out hy the licence holder in the year to whichthe licence relates;

(ii) estimates$ if< any$ or economically reco,erable petroleum in the form or crude oil and natural*as at the end of the year to which the licence relates;

after completion or drillin* or$ in the case of information that are not

61

(c) surnrnarics of wcl=s drillcd$ includin* litholo*ica l *roups$classification boundurics and hydrocarbon 3ones$ within three months


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Petroleum !\et, ->14

obtained in that period$ as soon as possible after completion ofdrillin*; and

(d) any other information, data and reports as may be required.

(8) The license holder and permit holder shall disclose to !#$ the

techno lo*y necessary for e,aluation and understandin* of any raw data$

processed data or interpreted data resultin* from the license holder and a permitholder who work in the license area.

ecords to be

kept

7ulies on

termination of

licence and

reconnaissance

permit

90.-(l) The license holder and permit holder shall notify PURA and keep

complete and accurate records containin* part iculars of&(a) 7rillin* operations, plugging or abandonment of wells;

(b) %trata and subsoil throu*h which wells are drilled;(c) ?asin* inserted in wells and any alteration to the casin*;(d) #ny petroleum, water and minerals or dan*erous substances

encountered and any si*nificant disco,ery of any minerals;

(e) #reasi n which any *eolo*ical$ *eophysical or *eochemical work iscarried out;

(1) @ualityofany crude oil and composition of natural*asproduced; (*) quantifies or&

(i) crude oi l :

(ii) 5atural *as;and

(iii) sulphur$ in any form$ or any other minerals or *ases$ liquids or

solids disposed of by way of sale or otherwise$ considerationrecei,ed$ the quantity disposed and name of the person towhom the quantity was disposed;

(h) quantity of petroleum inAected into formation for enhanced reco,erypurposes or disposal:

(i) quantity of petroleum consumed durin* petroleum acti,ities$ otherthan quantities reported under para*raph (h)$ and petroleum pumped

to field stora*e and refineries in Tan3ania;U) quantity of natural *as processed in Tan3ania by the license holder or

on behalf orB the license holder for remo,al of liquids and liquefiedpetroleum and quantity of *ases or solids reco,ered from it; and

(k) quantity or natural *as flared or ,ented.

91. Chere a license or a reconnaissance permit is terminated$ re,oked ore2pires$ the person who was the license holder or permit holderimmediatelybefore the termination$ re,ocation or e2piration of the license or

reconnaissancepermit shall deli,er to !# in D' format acceptable to !#&(a) ail records with respect to the license;

(b) ail plans or maps of the license area which were prepared by or on the

instructions of the license holder or permit holder;(c) ail tapes$ dia*rams$ profiles and charts which were prepared by the

license holder or permit holder; and

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Petro!eurn Ilet, 2015

(d) 6therdocuments as !# may$ by notice issued to the licenseholder orpermit holder$ required tobe deli,ered.

#,ailabiliry ofinformation to the

public

?onfidentiality ofdata

!."(#) PURA may$ with a written appro$al of the Minister$ makea,ailable to the public&

(a) 7etails of ail a*reements$ licenses$ permits and any amendmentsto the licenses$ permits or a*reements whether ,alid or terminated;

(b) 7etails or e2emptions. ariations or suspe ns ion s ofconditions of

licence and perm it%

(c) appro,ed de$elopment plan; and

(cl) ail assi*nments and other appro,ed arran*ements m respect of a

license and permits.(-) The information referred to in subsection ( 1) shall be made a,ailable

to any person upon payment of the prescribed fee.

0.&(1) The data subm itted to PUR&' y a license holder shall be treated

as confidential and not e reproduced or disclosed to the third parties y anyparty under this act c2cept&

(a) inthe case or disclosure by the licence holder and permit holder$ withthe prior written consent of the inister% or

(b) in the case of disclosure by !# prior Eo the relinquishment of thearea to which the y relate$ with the prior written consent of the licenseholler and permit holder.

(-) The consent under subsection ( 1 )(a) or (b) shall not be unreasonablywithheld or delayed.

(0) The pro,isions >i1B subsection ( 1) shall not pre,ent the disclosure y"

(a) PURA upon fifteen days prior written notice to the license holderidentifying the parties to which disclosure will be made&

(i) Eo un a*ency or or*an of< the +o,ernment;(ii) to a financial institution or person actin* as a consultant or

professional ad,iser to PUR&'*

(iii) Eo aritrators und e2perts appointed under this #ct or underan a*reement made under this #ct;

(i,) forstatistical purposes% or(,) in connection with the award of new acrea*e;

(b) a license holder . permit holder or contractor of the subsidiaries of the1 incense holder permit 1 holder or contractor to&

(i) affiliated company. its home +o,ernment or any department$a*ency or as required y any law;

(ii) a reco*ni3ed stock e2chan*e on which shares of the licenseholder$ permit holder or its affiliated companies are traded;(iii) financial institutions and professional ad,isers and


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Petro!eurn Ilet, 2015

arbitrators and e2perts appointed under this #ct;(i,) bona fide prospecti,e assi*nees of a license or permit

C)7.


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Petroleum Ilet, 2015

(,) a corporation w ith which the license holder or permit holder isconductin* bonafide ne*otiations directed towards a mer*eror consolidation.

() #li data disclosed 'o third parties shall be disclosed on terms and

conditions to ensure that they are treated as confidential by the recipient.rohibitiona*ainst disclosureor information

94.-(1) 'nformation Furnished or report submitted under this #ct by a

license holder and permit holder shall not be disclosed to any person who is not

!# or an officer in the public ser,ice e2cept with the consent of the license

holder or permit holder.

(-) 5othin* in subsection (1) shall pre,ent the disclosure of information

when the disclosure is made&

(a) after the license or permit concerned ceased to ha,e effect$or ceased

to ha,e effect o,er the land to which the disclosure relates;(b) for and in connection with the implementation of this #ct;(c) for purpose or in connection with any le*al proceedin*s;(d) to any consultant employed to ad,ise the +o,ernment on matters

relatin* to petroleum operations;

(e) for$ or in connection with the preparation or on behalf of the+o,ernment on statistics relatin* to petroleum operations;

(f) to a financial institution or in connection with financial arran*ementsor ad,ice in relation to petroleum operations;

(*) in connection with the determination of any liability of the licenseholder orpermit holder to make any payment to the +o,ernment;

(h) for$ or in connection with any matter prescribed in a petroleum

a*reement; or

(i) as the requirement to ensure transparent and accountability under therele,ant law.

(0) # person shall not disclose confidential information while stillworkin* in the public ser,ice or !# in the petroleum industry or when ceases

to be public ser,ant or member of the oard of !# or the 5ational 6il?ompany which he obtained in the course of his employment for a period of ten

years.() #ny person who contra,enes subsection (l) or (0) commits an

offence and shall be liable on con,iction to a fine not less than ten millionshillin*s.

(4) in proceedin*s on a prosecution for an offence under this section$ itshall be a sufficient defense if" the person char*ed pro,es that the informationdisclosed and to which the prosecution relates was$ without that disclosure$

*enerally known to the public or national interest,

+urtherinformation to befurnished

4.&(1) Chere !# has reasons to belie,e that a person is capable of*i,in* information or producin* documents relatin* to e2ploration or


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Petroleum Ilet; 2015

participatin* interest; and

de,elopment operations . !# may $ by notice inwritin*require that person&

(a) to furnish information in writing within the period and in the mannerspecified in the notice: or

(b) to appear himself or person specified in the notice at such time andplace to answer questions relatin* to the operations.(-) # person is not e2cused from furnishin* information$ answerin* a

question or producin* a document when required to do so under this sectionmi*ht tend to incriminate him or make him liable to a penalty$ and theinformation so furnished or his .answer Eo the question shall not be admissible ine,idence a*ainst him in any proceedings other than proceedings for an offence.

Failin* to furnish

information,. Any person who"

(a) refuses or fails to comply


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Petroleuui 11.ct, 2015

() #ny a*reement relatin* to the use of facilities referred to insubsection (-) shall be submitted to !/ for appro,al.

(G) !# may$ on appro$ing a11 a*reement pursuant to subsection (-)$or

in the e,ent that no a*reement is reached within a reasonable time $ stipulate

tariffs and other conditions or susequently amend the conditions that ha,e beenappro,ed or stipulated. in order to ensure implementation of proAects is carriedout with due re*ard to consideration ions relating to resource mana*ement.

(8) !/ may issue directions on the use of facilities by takin* into

considerations efficiency$ resource mana*ement or benefit of society$ and such

facility shall not be detriment 111 the license holders or a person who has a ri*ht

of use.

7ornestic supplyoligation

%upply of *as and

costs

Price $aluation ofpetroleum

1or-practices

for license holderand the contractor

2."( #) The license holder and contractor shall ha,e obli*ation to satisfydomestic market in Tan3ania from# heir proportional share of production.

(-) The ,olume of crude oil or natural *as which is required to be soldshall meet the requirements orB d11111estic market not e2ceedin* share of profit oilor *as of a license holder and contractor.

. The domestic natur.il *as price shall be determined based on thestrate*ic nature or the proAect to


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Corkpractices orpermit holders

(i) each reser,oir disco,ered in the e2p loration or

de,elopment area; and(ii) sources of water if disco,ered in the e2ploration or

de,elopment area$ as the minister may$by notice in writin*ser,ed on the license holder$ directs;

(e) pre,ent water or any other matter enterin* into petroleumreser,oir throu*h well in the e2ploration or de,elopment areae2cept when required by$ and in accordance with$ bestinternational petroleum industry practices :

(f) pre,ent pollution of any water"well, sprin*$ stream$ ri,er$ lake$

reser,oir$ estuary$ harbor or area or sea y escape of petroleum$ salt

water$ drillin* fluid chemical additi,e$ *as not bein* petroleum or any

other waistproduct or effluent;

(*) furnish to PUR&' prior to drill well$ a detailed report on the

technique to be employed$ an estimate 6f time to be taken$ the

material to be used and safety measures to be employed$ in the

drillin* of well

(0) The 1 license holder and contractor shall not flare or ,ent petroleumwithout prior consent from PURA

() Chere the consent i1n writin* from !/ has been obtained$ nothin*in this section shall pre,ent a license holder and contractor from flarin*petroleum in accordance with the terms of the instrument of consent.

(4) 5othin* in this section shall pre$ent the license holder and contractorfrom flarin* petroleum in.

(9) %ubAect to subsection. 11 ()$ flarin* may be required to safe*uard thehealth and safety of person i 1 the emer*ency circumstances e2ploration or

de,elopment area$ and pro,en dama*e to the property in the e2ploration or

de,elopment area.(G) The license holder and contractor shall furnish to !# intention to

abandon any well , closure or # 1**in* of well and the process shall be carriedout in the prescribed manner wi111 the prior consent from !#.

102. The permit holders .shall&

(a) carry out al 1reconnaissance permit

mariner and in accord(b) take all reasonab le

en*a*ed in the open

reconnaissance acti$ities in the area which

is in force in a proper and workman&likewith est petroleum practice; and

steps to secure safety$ health and welfare ofperson/lll% of6 that area,

enalty forbreach 103.-(1) The license holders$ permit holder and contractorwho contra,enes section 1>1$ comm its an offence and shall be liableupon

con,iction$ to a fine or not less 111an twenty million shillin*s.(-) 'n proceedin*s on a prosecution of an offence under this section$ it

shall be a sufficient defense i l t1Hc accused person pro,es that he promptly took

&


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ail reasonable steps to comply with the requirements of the rele,ant section

applicable to him.Maintenance of

property104.-(1) The license holder$ contractor and permit holder shall"

(a) maintain in good condition and repair ail structures$ equipment andother property in the a rea subAect to the license or in respect of

which the instrument >1B c .sent is in force and used in connectionwith

operations in which

(b) remo$e from that area

u that arc not used i

1en*a*ed: and

(c) take reasonable

steps any structure.

resultin* from it .(-) %ubsection (1)

shallnot

property that was not rought!# of the license holder. co

(0) The license holder

subsection ( l )(a)$ (b) or ( c)

con,iction t to a fine of not Fess

than ten million shillin*

cy arc en*a*ed;

%i ail structures, equipment and other property

Bconnection with the operations in which he is

Eo warn person who may be in the ,icinity ofequipment or other property of the possibleha3ard

apply to any structure$ equipment or other.to the area subAect to a license$ permit or byBactor or permit holder.

contractor or permit holder who contra,enes

commits an offence and shall be liable on in

7rillin* near

boundaries105.-(1) The license holder &r and the contractor shall not drill a well

which is Fess than one thousand met s from a boundary or the area subAect tothe license e2cept with the consent B in writin* of !# and in accordance

with conditions specified in the written # consent.

(!) 7f the license holder and contractor fails to comply with subsection(1)$ !.# may in writin* direct the license holder and contractor to do one

or more of the followin* acti,ities within the period specified in the instrument to&(a) plu* the well:

(b) close off the well; .#

(c) comp ly with direction 1 relatin* to the drillin* or maintenance ofwell

as specified in the //(8) A person who fails or

subsection (-) commits an

offencenot less than ten million shillin*

Een consent.

ne*leets to comply with a direction *i,en under

c and shall$ on con,iction$ be liable to a fine of

rotection fromliability orrnernbers or9oard and

officers of PURA

Dury not

to disclose

information

106. # member o 7: the

on the directions of the board

for any act or omission don

performance or functions under

107.-(1) %ubAect E6 this

employee of !/ shall notobtained in the course or his en

board or an officer of !# or a person

actin* of an officer of !# is not personallyliable or committed E6 be done in *ood faith

t h i s in the:ris /ct.

et a person who is a memer of the oard or

disclose any information$ which he may

ha,e l) )


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Petroleum Act, 2015Petroteui 11ct, ZOJS

(-) # person who ccas. to be a member of the oard or employee of!# shall not disclose any confidential information$ which he may ha,eobtained in the course of his employment for aperiod of fi,e years.

(0) # person who conu , cncs subsection ( 1) or (-) $ commits an offenceand shall be liable on con,iction ion to a fine of not Fess than twentymillion shillin*s or to imprisonment for term not e2ceedin* four years or both .

%ur,ey of wclls108.-( 1) !/ may. al any time. by notice in writin* direct the licence

holder and contractor Eo&(a) carry a sur,ey of the position of well$ structure or equipment

specified in the notiice$ : and

(b) furn ish promptly Eo # ;R&' a report in writin* of the sur,ey.

(-) Chere !/ is no satisfied with a report of a sur,ey furnished to

!# under subsection ( 1 ). l I/ ma,. by notice in writin* direct the licenceholder to promptly furnish information "ution in writin* in connection with thesur$ey.

(0) Chere a person to


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Petroleum Act, 2015Petroteui 11ct, ZOJS

(c) "preference shares" means shares which carry the ri*ht to the

payment of a di,idend of a fi2ed amount$ or not e2ceedin* a fi2ed

amount $ in priority to payment of a di,idend on another class or other

classes of shares$ whether with or w ithout other ri*hts.ower of enrry 110.-(1) For the purposes of this #ct$ !# may$ at ail reasonable times&

(a) enter into any area$ structure$ ,ehicle$ ,essel$ aircraft or buildin* that

is in connect ion with&

(i) e2ploration operations; or

(ii) de,elopment operations;

(b) inspect and test by a qualified person$ any mach inery or equipment

that$ in its opinion$ is used .in connection with any of the operations

referred to in para*raph (a);

(c) take or remo,e for the purpose oranalysis$ testin* or use in e,idencein connection with an offence a*ainst this #ct$ samples of petroleum$

water or other substances from a well ';

(d) inspect$ take e2tracts from$ and make cop ies of$ any document

relatin* to any of the operations referred to in para*raph (a);

(e)w

ith respect to hea

lth and safety of person employe

d by a lice

nse

holder and contractor or in connection with any of operations referred

to in para*raph (a) issue directions and impose restrictions on the

license holder or any person so employed;

(f) by notice in writin*$ order&

(i) cessation of operations or withdrawal of any person from any

area$ structure or buildin* that is bein* used in connection with

operations referred to in para*raph (a) ; or

(ii) discontinuance of use of any machinery or equipment which

!# considers to be unsafe$ until l such action as is necessary for

safety as specified in the notice$ is undertaken and completed;(*) make such e2aminations and inquiries as necessary to ensure that the

pro,isions of this #ct$ and any direction issued$ restrictions imposedor orders made under this #ct. are bein* complied with; and

(h) obtain and record statements from witnesses$ and appear at or

conduct inquiries held re*ardin* acc idents occurrin* in the course of

any of the operations referred to in para*raph (a)$ and appear at

inquests$ and call$ e2amine and cross&e2amine witnesses .

(-) efore e2ercisin* any of its powers under subsection (1 )$ if there isany person present who is or appears to be in char*e of the area$ structure$

,ehicle$ ,essel$ aircraft$ buildin*$ machinery$ equipment or matter or thin* in

70

appointment of a


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Petroleum Act, 2015Petroleum Act, 2015

respect of which the power is about to be e2ercised$ !# or authori3ed officer

shall identify himself to that person and to any other person to whom he is

about to *i,e an order or a direction.

(0) #ny person who is a**rie,ed by a decision$ direction or order of

!# or an authori3ed officer made under this sect ion may appeal in writin*

to the oard or$ in the case of a decision$ direction or order made by !#$ to

the Minister who shall$ as soon as practicable$ hear and dispose the appeal$ but

thebrin*in* the appeal shall not affect the e2ecution and operation of the

decision$ direction or order appealed from pendin* disposition of the appeal.

() Chere appeal is lod*ed under subsection (0)$ !# or the Minister

may rescind or affirm the decision$ direction or order which is subAect to the

appeal or$ make a new decision$ direction or order in substitution thereof$ and

such decision$ direction or order shall not be subAect to further appeal.

(4) in e2ercisin* his powers under subsection (1)$ !# or an authori3ed

officer may be accompanied by any person who PURA or the authori3ed officer

belie,es has special or e2pert knowled*e of any matter bein* inspected$ tested or

e2amined.

(9) # person who is an occupier or in char*e of any buildin*$ structure or

place $ or in char*e of any ,ehicle$ ,esse l$ aircraft$ machinery or equipment

referred to in subsection (1)$ shall pro,ide PURA or an authori3ed officer

with ail reasonable facilities and assistance includin* means of transport.

%ub&art '

%urface Rightsi*ht to *ra3e

stock111.-(1) The lawful occupier of any land in an e2ploration or a

de,elopment area shall ha,e the ri*ht to *ra3e stock or culti,ate surface of land

if the *ra3in* or culti,ation shall not interferes with e2plorat ion or de,elopment

operations in such area.(-) The lawful occup ier of land in a de,e lopment area shall not erect

anybuildin* or structure in the area without a written consent of a holder

of de,elopment licence concerned$ and if the Minister considers that the consent

isbein* unreasonably withheld may *i,e his consent to the lawful occup ier.

(0) The ri*hts conferred y a licence or an instrument of consent or

permit shall not be e2ercised so as to affect the interests of any lawful occupier

of land subAect to proper conduct of operations pursuant to the licence or

instrument of consent.

() Cithout limiting the *enerality of subsection (0) a person carryin* on

operations under a licence or consent or permit shall not take action that in any

way interferes with&

(a) fishin*;

(b) na,i*ation: or

(c) any other operation bein* lawfully carried on$ by way of e2ploration$

reco,ery or con,eyance or petroleum or minerals$

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13/75

unless he *i,es prior notice ### writin* to ! RA of the e2pected nature

and duration of such interference.

?ompensation for

disturbance of

ri*hts

i*hts o,er

unalienated land

oyalty on

petroleurn

112.-(1) Chere$ in the course of e2ploration or de,elopment operationsthe licence holder and contractor interfere with the ri*hts of the lawful occupier

of any land or cause dama*e to any crops$ trees$ buildin*s$ stock or worksthereon$ by ,irtue of which operations are carried out$ the licence holder shall beliable to pay to the lawful occupier fair and reasonable compensation in respect

of interference or dama*e in accordance with the ri*ht or interest$ if any$ oflawful occupier in the property concerned.

(-) Chere the ,alue of any land has been enhanced by e2ploration or

de,elopment operations$ compensation payable pursuant to subsection ( 1) inrespect of the land shall not e2ceed any amount which is payable if the ,aluehad not been so enhanced.

(0) Chere the amount of compensation to be paid pursuant to subsection

(1) is in dispute$ either party may refer the mauler to !# which shall deal with

in accordance with the pro,isions of art J'.

113. Chere the resident is satisfied that it is necessary to do so

for de,elopment purposes or for purposes ancillary to de,elopment$ the

resident may *rant$ upon terms and conditions as the resident thinks fit tothe licence holder and the contractor&

(a) a ri*ht of occupancy of any unalienated land; or

(b) ri*hts o,er any unalienated land.

%ub&art ''etroleum Fiscal K*ime

114.-(1) %ubAect to this #ct$ the licence holder and contractor shall payroyalty to the +o,ernment in respect of *ross ,olume on petroleum reco,ered at

the deli,ery point in a mariner specified in the %econd %chedule.

(-) The a*reement in respect to the *rant of ri*hts may include a

pro,ision for payment of royalty in kind.(0) Chere the licence holder fails to pay any royalty payable under this

#ct on or before the due date$ !# may$ by notice in writin* ser,ed onthe licence holder$ prohibit the remo,al of$ or any dealin*s in or with$ anypetroleum from the de,elopment area concerned$ or from any other

de,elopment area subAect to a licence held by that licence holder or frornboth

until ail outstandin* royalty has been paid or an arran*ement has been made andaccepted by !# for thepayment of the royalty and the licence holder shall

comply with the order of !#.() The Minister may$ upon ad,ice of !# and by order published in

the Gazette, amend$ ,ary or alter the %econd %chedule.

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#nnual fees

onus payment

ayment ofta2

115.-(1) The ?ontractor shall pay to 56? annual fees in respect of a

Eicence as may be prescribed in the re*ulations.

(-) The annual fees referred to under subsection (1) shall

include& (a) acrea*e rental;

(b) trainin* and research fees; and

(c) si*nature bonus.

116.-(1) The ?ontractor shall pay to the 56? si*nature and production

bon uses as may be a*reed under the termsof the rele,ant a*reement.

(-) For purposes of this section&

(a) "production bonuses" means bonus payable on commencement of

production; and

(b) "si*nature bonus" means a sin*le non& reco,erable lump sum

payment by contractor to the +o,ernment upon si*nin* of a*reement

or any other related a*reement.

117 .&(1) # 1 icence holder$ contractor and subcontractor shall pay ta2esincludin* corporate ta2$ capital *ain ta2 and other ta2es applicable in Tan3ania in

accordance with the pro,isions of rele,ant written laws .

(-) The profits resultin* from any direct or indirect assi*nment$ transfer

or any other disposal of ri*hts under the petroleum a*reement re*ardless of thebeneficiary type of transaction shall be subAect to ta2es at rates prescribed in the

rele,ant written laws.

(0) The a*reement in respect of *rant of ri*hts shall pro,ide for financin*

of the petroleum acti,ities with a loan from a third party.

() The third party is considered a subcontractor and shall be subAect to

withholdin* ta2 on the interest payment on loans.

(4) !# shall$ in accordance to the prescribed financin* re*ulations$

*i,e appro,al for the percenta*e of the loan to be used as a portion of the totalcapital.

(9) ?ost of any unappro,ed 'oan shall not be treated as allowable ordeductable for ta2 purposes.

(G) The interest rate for loans shall not e2ceed the lowest market interest

rate a,ailable for such loans.

Ring fencin* on

reco,erable cost of

e2ploration and

de,elopmentlicence

Payrnent terms

118.-(1) The licence holder and contractor holdin* an e2ploration licence

or more than one de,elopin* l icence within a contract area shall rin* fence

reco,erable contract e2penses$

(-) eco,erable contract e2penses in a licence area or block within the

contract area may be reco,erable form petroleum re,enue form such

de,elopment area to the e2tent that were incurred prior to commencement ofpetroleum production from such de,elopment area.

119. #ll payments due to the +o,ernment under this #ct shall be in an

78


15/75

international and freely con,e rtible currency .enalty for late

payments

eco,cry of

payrncnts under

this #ct

%ecurity for

compliance

!# mayrequire

information 1>befumished

Failure to furnish

information

1->. Chere a contractor fails to make payment under this #ct on or

before the time required$ such contractor shall be liable to a penalty of asurchar*e of two percent of the amount in default for each day of default.

121. ayments and ta2es under this #ct are a debt due to the +o,ernment

and shall be reco,ered in accordance with any other rele,ant written laws.

122. !# may make arran*ements to ensure that a licence holder

compl ies with the pro, isions of this #ct and accept *uarantees whether from

contractor or otherwise in respect of that compliance.

1-0.&(1) Chere !# has reason to belie,e that a person is capable of

*i,in* information$ producin* or makin* a,ailable books or documents relatin*to petroleum obtained from an e2ploration or a de,elopment area or the ,alue of

petroleum so obtained $ it may in writin*$ require such person&

(a) to furnish in writin*$ within the period and in the manner specified by

!#$ any of such information;

(b) to attend before !"# at such time and place as is so specified and to

answer questions relatin* to petroleum obtained or the ,a lue of

petroleum obta ined; or

(c) to make a,ailable to !# at such time and place as is so specified

books$ documents$ or copies$ in his custody or power relatin* to ,alue

or petroleum obtained.

(!) # person shall not be e2cused from furnishin* information. answerin*

aquestion or makin* a,ailable books or documents when required to do so under

this section on the *round that the information may incriminate him or make him

liable to a penalty$ and the information so furnished shall not be admiss

ible ine,idence a*ainst him in any proceedin*s other than proceedin*s for an offence

under section !8.

(0) Chere book or document is made a,ailable pursuant to a requirement

under subsection (l)(c)$ the person to whom the book or document is made

a,ailable may make copies or take e2tracts from the books or documents.

124 . #ny person who&

(a) refuses or fails to comply with a requirement under section 100(1) to

the e2tent that he is capable of complyin* with it;

(b) in purported compliance with a requirement$ knowin*ly or recklessly

furnishes information that is false or misleadin* in a material

particular;(c) when attendin* before !# or any other person in pursuance of

such a requirement$ know in*ly or recklessly makes a statement or

produces a document that is$ or produces books which is false or

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16/75

Petroleum Act,2015Petro/eum Act,2015

misleadin* in a materialparticular; or(d) when makin* a,ailable books or documents in pursuance of such

requirement$ knowin*ly or recklessly makes a,ailable books that is

false or misleadin* in a material particular$commits an offence and shall be liable on con,iction to a fine of not

less than fifty million shillin*s or imprisonment for two years or both.

#T '

M'7%TL#M #57 76C5%TL#M #?T''T'L%

%ub&art 1

5ational etroleum and +as 'nformation %ystem5ationaletroleum and+as 'nformation%ystem

125.-( 1) There shall be a 5ational etroleum and +as 'nformation%ystem$ also described as 5+'% which shall be maintained by LC!#.

(-) 5+'% shall be a strate*y plannin* tool for the +o,ernment andother interested parties and for informin* the public periodically$ about the statusof the *as industry.

(0) 5+E% shall consist of an inte*rated and centrali3ed information

system containin* appropriate data processin* technolo*y and co,erin* allmidstream and downstream *as acti,ities and related installations$ principal

market acti,ities$ rele,ant statistics of the country and international referencedata.

() L,ery licensee shall submit to LC!# a periodic reports and otherinformation that would feed into 5+'% as may be prescribed in the rules.

(4) L2cept for information that protects the security of state and

proprietary market data or any other confidential information as LC!# may

determine$ ail information contained in the 5+l% shall be a,ailable forinspection by the public.(9) For purpose of this section$ "proprietary market data" means data

related to intellectual ri*hts of a licensee.(G) Cithout preAud ice to subsection (1) LC!# shall establish and

maintain a ?entral e*istry of etroleum 6perations (?6) which shall formpart of the5'% containin*&

(a) information on petroleum supply and use by type$ quantity and

re*ion;(b) information on petroleum importation by type$ quantity and source;(c) information on petroleurn e2portation by type$ quantity

and destination;

(d) information on refinery products by type$ quantity and source;(e) information relatin* to petroleum or petroleum products in transit;

(:f) a record of ail licence applications$ *rants$ ,ariations$ transfers$

suspensions and cancellations; and(*) ail rele,ant information on the holders and their operations and

G4


17/75

installations.

%ub&art fi

L2clusi,e ri*hts of the a**re*atorL2clusi,e ri*htsof the a**re*ator

#pplication for

construction

appro,al

126.-(l) The 5at ional 6il ?ompany shall desi*nate one of its subsidiaries

to be the a**re*ator.

(-) The a**re*ator shall ha,e e2clusi,e ri*ht to purchase$ collect and sell

natural *as from producers.

(0) The a**re*ator shall apply to LC!# for a licence before

e2ercisin* its ri*ht under sub&section (-).

() 5otwithstandin* the pro,isions of sub&section (-)$ the producers may

sell natural *as to any other person after obtainin* consent from the a**re*ator

%ub&art 'll

#ppro,al for ?onstruction of etroleurn 'nfrastructure

1-G.&(1) #ny person intendin* to construct a petro leum installation or

petroleum carria*e facility shall apply in writin* to LC!# for an appro,al.

(-) The 5ational 6il ?ompany shall apply to LC!# in a prescribed

form to construct *as infrastructure.

(0) #n app lication under subsection (-) shall:

(a) state the name and address of the owner of the proposed *as

infrastructure;

(b) be accompanied with three copies of plans and information on

specifications$ location$ type and capacity for the proposed

infrastructure;

(c) contain a detailed proAect plan includin*$ capital e2penditure$financin* plan$ financial Austification$ local content plan and proAect

schedule;

(d) in the case of a pipeline$ specify points between which the proposed

pipeline is intended to run and the full delineation of its ri*ht of way;

(e) state financial and technical stren*th of applicant in the *as industry;

and

(f) pro, ide other details as may be prescribed by LC!#.

() LC!# shall$ before *rantin* appro,al$ consider:

(a) rele,ant +o,ernment laws$ policies and plans;

(b) technical and financial capability of the app licant; and

(c) any public interest which in LC!#


18/75

Petroleum Act,2015Petroleum Act, 2015

rohibition forconstruction of

*as infrastructures

+rant ofconstructionappro$al

128.-(l) # person shall not construct a *as infrastructure or petroleuminstallation without appro,al of LC!#.

(-) # person who contra,enes sub section (1) commits an offence and

upon con,ict

ion shall be

liab

le to a fine of not

Fess than twenty mil

lion shillin*sor to imprisonment for a term of not less than three years or both.

129.-(t) Chere after e,aluation of the application$ LC!# is satisfiedthat the applicant has complied with ail requirements for *rant of the application$ theLC!# shall *rant the application and appro,e construction sou*ht to be done.

(-) The construction appro,al shall be made in a prescribed form and

may contain conditions as LC!# considers necessary and appropriate.

(0) LC!# shall cause to be published in the Gazette a constructionappro,al.

() Chere a construction appro,al is *ranted with conditions that are to

be complied with before any construction acti,ities are undertaken$ the

construction of any *as infrastructure shall not be undertaken until suchconditions are complied with.

L2piry of

construction

appro,al

e,ocation or

suspension of an

appro,al

130. Chere the construction of works bas not commenced within twentyfour months from the date on which an appro,al was *ranted or upon e2piry ofan e2tended period which LC!# allowed$ the appro,al shall cease to ha,eeffect.

131.-(1) LC!# may by notice in writin*. withdraw$ re,oke$ suspend oramend an appro,al if any term or condition for appro,al has not been compliedwith.

(-) Chere LC!# intends to withdraw$ re,oke$ suspend or amendappro,al$ it shall$ at least within twenty&one&days before the date of its intention$withdrawal$ re,ocation$ suspension or amendment, notify the holder of theappro,al of such intention specifyin* the reasons for the decision to be made.

(0) 5otwithstandin* the pro,isions of subsections ( 1) and (-)$ LC!#may$ by notice published in the Gazette, withdraw$ suspend or re,oke anappro,al upon application or consent of the holder of an appro,al.

() LC!# may$ by notice in writin*$ reinstate an appro,al that waswithdrawn$ re,oked$ or suspended if it is satisfied that the reasons for the

withdrawal$ re,ocation or suspension do no lon*er e2ist.

%ub&art '

Eicensin* of Midstream and 7ownstream acti,ities

a General re"uirement for underta#in$ %id and do&n'tream acti(itie'#pplication for

licence10-.&(1) #ny person who intends to undertake a re*ulated acti,ity shall

GG


19/75

apply to LC!# for a licence in the prescribed manner and form$ upon

payment of theprescribed fee.

(-) The procedure for filin*$ e,aluation and appro,al of application and

documentation shall beprescribed in the rules made by LC!.

(0) #n applicant for a licence who wishes to undertake a re*ulatedacti,ity shall$ in addition to the requirements stipulated pursuant to sub&section(-)$be required to si*n an inte*rity pled*e referred to under section --0.

() # person who undertakes a re*ulated acti,ity without a licence$

commits an offence and upon con,iction shall be liable to a fine of not Fess thantwenty million shillin*s or to imprisonment for a term or not less than two yearsbut not more than fi,e years or both.

?onsideration ofthe application account:

133. 'n considerin* an application for a licence$ LC!# shall take into

(a) contribution of re*ulated acti,ity to meet future *as needs by

customers;(b) compliance of re*ulated acti,ity with the policies of the

+o,ernment;(c) submitted local content plans based on the re*ulations;(d) risk analysis of the re*ulated acti,ity;(e) contribution of re*ulated acti,ity to competiti,e conditions in the *as

industry;

(f) social and en,ironmental impact of re*ulated acti,ity;(*) impact that re*ulated acti,ity may ha,e on health and safety

of employees and the public;(h) le*al$ technical$ economic and financial capacity of the applicant to

conduct the re*ulated acti,ity;

(i) cost of acti,ities and the effect on *as prices to customers;

U) participation of Tan3anians includin* local companies with not essthan twenty fi,e percent participatin* shares in the business as thecase may be in the re*ulated acti,ities;

(k) any representations and obAections to the re*ulated acti,ity made ythe public;

(1) a detailed emer*ency preparedness plan towards any accident orincident; and

(m) any other public interests that may be affected by the re*ulatedacti,ity.

and 101 () shall not apply to the

5at ional 6il ?ompany.(0) For purposes of susection (-)$ the 5ational 6il ?ompany shall apply

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20/75

Petro/eum Act, 2015Petroleum Act, 2015

and be *ranted a licence required for undertakin* any of a re*ulated acti,ities

stipulated under this #ct.

efusal of anapplication

?onditions forlicence

?ap. ##

inquiry

alidity of

licence

#pplication andlicence fees

Assignment and

transfer of licence

135.-(l) LC!# shall refuse application for a licence if:(a) 'tis satisfied that the application does not comply with the pro,isions

of this #ct ;(b) it is satisfied that the applicant submitted false information in relation

to the application fora licence;(c) the applicant has been con,icted of corruption$ money

launderin*$ economic crimes or ta2 e,asion; or(d) the applicant refused to si*n an inte*rity pled*e.(-) Chere LC!# refuse to *rant application for a licence$ it shall$

within fourteen days from the date of the decision$ send to the applicant a

notification and reasons for refusal.

136.-(1) # licence *ranted under this #ct may be attached with suchconditions as LC!# considers necessary.

(-) Chere a licence is *ranted by LC!# in circumstances that work

has to be undertaken$ the licensee shall commence work of establishin* fac ilities

within the time limit set out in a licence.(0) Chere the terms ofsubsection (-) ar e insuff ic ient to completet h e

work$ LC!# may$ upon request by the licensee$ e2tend the time within ofcompletin* such work.

() The licensee shall comply with all necessary en,ironmental

mana*ement requirements as pro,ided for under th e Ln,ironmental

Mana*ement #ct.

.10G. LC!# shall$ before issuin*$ m o d i f y i n * $ suspendin* or re,okin* alicence$conductan inquiry.

138. !nless otherwise re,oked or suspended$ e,ery licence *rantedu n d e r this #ct shall be ,alid for a period of up t o twenty&fi,e years dependin*on the type of a re*ulated acti,ity.

138. LC!# shall prescribe fee to bepaid by an applicant for a licenceor a lMcensee$ for a licence applied for or *ranted under this#ct $and may imposean addition fee for transfer or amendment of a licence.

140.-( l) # licence shall not be ass i*ned to$ or transferred frorn a 1icensee to another person without appro,al of LC!#.

(-) # person who intenels to transfer a licence shall file an application toLC!# accompanied with e,idence of compliance of the pro,isions relatin* to

quality and standards referred to in this #ct.(0) Chere th e applicant fails to compl y with the r e q u i r e m e n t s for a

G


21/75

transfer by reason of insufficient information in the application$ LC!# sha=l

within se,en days$ notify the applicant on such insufficiency in the application

and direct the applicant to correct the deficiencies within thirty days.

() LC!# s h a l l reAect an application if the applicant fails to

comply with directions of LC!# issued pursuant to subsect ion (0).(4) Chere the applicant complies with therequirements for transfer of a

licence pursuant to subsect ion (-)$ LC!# shall within si2ty days. authori3e the

transfer of the 1 icence .Modification of

licence

enewal of

licence

%uspension of

licence

e,ocation of

licence

141.-(1) LC!# may$ on its own motion or upon application y alicensee$ modify terms and conditions of a licence.

(-) En the e,ent LC!# acts on its own motion$ it shall issue a notice of

at least si2ty days to the licensee informing the licensee on its intention to

modify the licence.

(0) The manne r for effectin* modification of a licence in accordancew i t h

sub&section (1) shall be as prescribed in the ru les.

() Chere a need arise for e2pansion of throu*hput capacity in a

transportation licence$ modification of a licence shall not be required and the

licensee shall seek consent of LC!# within three months before the

commencement of e2pansion.

(4) Chere capacity is increased by construction of pipelines$

modification of the licence shall be required.

142.-(1) # licensee who wishes to renew licence may$ at least two years

before e2piration of licence$ apply to LC!# for renewal of a licence.

(-) # renewa l of a licence shall be *ranted for a ma2imum period of

fifteen years$ or for such lon*er period as may be determined y LC!#.

(0) For the purpose of subsections (1) and (-)$ the procedure for renewal

of licence shall be as prescribed in the ru les.

143.-(1) LC!# may suspend a licence if a licensee ,iolates terms

and conditions of the licence$ re*ulations or any other written law relatin*

toprotection of occupational hea lth$ public safety or en,ironmental mana*ement.

(-) !pon suspension of a licence LC!# shall specify in writin* the

period of suspension$ durin* which a licence shall be of no le*al force or effect.

144.-( 1) LC!# shall re,oke a licence where t h e licensee:

(a) ,iolates any of the pro,isions of this #ct or conditions attached to

the licence which affects the conduct of re*ulated acti,ity;

(b) obtained a Eicence by fraud or deliberate submission of falseinformation or statements;

(c) fails to comply with obli*ations conferred within the terms stated in

the licence;

(d) persistently fails to comply with the appro,ed local content plans;

8>


22/75


(c) interrupts ser,ices to other users without authori3ation of LC!# ;

(f) carries on business in a manner that is detrimental to the welfare orinterest of other users;

(*) ,iolates the tariffs$ rates and char*es established by LC!#;

(h) persistently fails or refuses to submit information to the 5+'%;

(i) fails to comply with the applicable health$ safety$ ser,ice$ quality or

en,ironmental standards$ or any other additional standards as may be

stated in the licence; or

!) is con,icted or found *uilty of an offence relatin* to corruption$

money launderin*$ economies crimes or ta2 e,asion.

(-) !pon re,ocation of a licence$ LC!# shall notify the licensee in

writin* the re,ocation and effecti,e date of the order from which the licence no

lon*er be of any le*al force or effect.

(0) # licensee shall$ within fourteen days after recei,in* the order of

re,ocation$ return the licence to LC!#.?ontinuity of

ser,ice in case of

transferor

re,ocation

rohibition of

certain acti,ities

and separation of

accounts

145.-(1) 'n all cases of transfer$ a licensee shall ensure continuity of

ser,ice and shall not suspend operations unitil such operations are taken o,er by a

new licensee who shall acquire the rele,ant system.

(-) Chere LC!# re,okes a licence$ it shall$ after consultation with the

Minister$ take necessary steps to ensure continuity of the ser,ice.

(0) Cithout preAudice to the pro, isions of subsection (1)$ a chan*e of

ownership of a firm or any other establishments in relation to which a licence hasbeen issued shall require appro,al of LC!#.

146.-(1) # licensee operatin* under LC!# ofthis #ct shall&

(a) maintain separate financial accounts in respect of re*ulated acti,ity;

and(b) any other business acti,ities.

(-) LC!# shall ma-e rules prescribin* the manner in which financial

accounts shall be maintained$ audited and published.

b)pecific re"uirement' for underta#in$ %id and do&n'treamacti(itie'

i Proce''in$ .tran'portation and'tora$e licencerocessin*$

Transportation

and stora*e

147. LC!# shall *rant a processin*$ transportation or stora*e licence if

it is satisfied that the application has&

(a) taken into account future de,elopment of the *as industry and

itspotential for competition;

(b) sufficiently demonstrated assessment and accommodation of

potential future market de,elopments in the application for a licence;

and

(c) declared durin* app lication that a *as processin* facility shall be

81


23/75

located onshore.Thirdparty access

ta processin*

facilities

Eocation of *as

processin*

facilities

148 .-(1) Lach processin* licensee shall:

(a) pro,ide to third parties access to such licensee


24/75

Transportation

system and third

party access

150.-(1) # transportation licensee shall:(a) pro,ide transportation ser,ices to third parties in order to allow *as to

be supplied to any buyer or eli*ible end&user whene,er requested at

such tariffs$ rates$ char*es and terms and conditions as may beprescribed by LC!#;

(b) pro,ide inter&connection ser,ices to any other re*ulated acti,ity

licensee or to any downstream operator as may be necessary to

pro,ide access to its transportation facilities; and

(c) increase the capacity of its transportation facilities when such

facilities are insufficient to accommodate$ on commercially

reasonable terms$ the requests of third parties pursuant to para*raph

(a)$ if&(i)

(ii)

such e2pansion does not ha,e an ad,erse impact on the

technical inte*rity and the safe operation of the licensee


25/75

(-) %ubAect to subsection (1)$ the criteria and other details of award a

stora*e licence shall be prescribed in the re*ulations.

ii!*i"uefaction, )+ippin$ and e-$a'ification licence?onditions for

liquefacrion

?onditions for

shippin* natural*as

?onditions for

re&*asification

153.-(1) # liquefaction licence shall be *ranted for each sp ecific facilityin accordance with *eneral conditions for award of licences pro,ided for under

%ub art 1.

(-) # liquefaction licensee s h a l l :

(a) operate$ maintain and de,elop a safe $ reliable and an efficient

liquefaction facility;

(b) connect the liquefaction facility to a transmission system pursuant tothe rules to be made by LC!#;

(c) establish and secure the work of a dispatcher center for the operation

of the liquefaction fac ility$ the system of measurement of inflows

and outflows and the *as qualityparameters;

(d) secure obAecti,e$ equal and comprehensible conditions of access to

the liquefaction facility pursuant to this #ct ;(e) prepare and submit for appro,al by LC!# a disaster mana*ement

plan and implement such plan as required by rules made by

LC!# ;

(f) prepare and submit to LC!# for appro,al a liquefaction facilityde,elopment plan;

(*) prepare and submit to LC!# for appro,al an annual financial

plan; and

(h) on annual basis$ prepare and submit to LC!# an annual report in

a formprescribed in the rules.

154.-(1) %hippin* of natural *as shall be carried out followin* the *rant

of a shippin* licence y LC!# and in consultation with other rele,ant

authorities.

(-) The criteria and details for award of a shippin* licence shall beprescribed in the rules.

155 .-(1) "e&*asification shall be carried out u n d e r a licence *ranted by

LC!# i n consultation withother rele, ant authorities.

(-) The c r i t e r i a and other details for award of a re&*asification

licence shall be as prescribed in the re*ulations.

(0) # re&*asification licence shall be *ranted for each specific facility

and a defined capacity in accordance with the *eneral conditions for award of

licences pro, ided for under *eneral requirement for undertakin* mid and

downstream acti,ities.

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26/75


iii i'tribution licence=onditions for

distribution156.-(1) #n application for a licence for distribution of *as shall$ in

addition to any other information as may be required by LC!# and subAect tothe pro,isions for under *eneral requirement for undertakin* mid and

downstream acti,ities$ specify:

(a) a type of ser,ice for which the licence isbein* sou*ht; and

(b) a territory in which *as shall be distributed.

(-) LC!# shall$ after an inquiry as it may consider appropriate and

subAect to such conditions as it may impose$ *rant a licence for distribution of

*as.

(0) LC!# shall in *rantin* distribut ion licence$ take into

consideration the +as !tili3ation Master lan.

() # distribution licensee shall&

(a) pro,ide distribution ser,ices to third part ies in order to allow *as to

be supplied to any eli*ible end&user and whene,er requested at such

tariffs$ rates$ char*es and terms and conditions as may be prescribed

by LC!#;(b) pro,ide inter&connection ser,ices to any other re*ulated acti,ity

licensee or to any upstream operator as may be necessary to pro,ide

access to its systems at the tariffs$ rates$ char*es and terms and

conditions prescribed by LC!#; and

(c) increase capacity of its distribution facilities when such facilities are

insufficient to accommodate on commercially reasonable terms the

requests of third parties pursuant to para*raph (a)$ if&

(i) such e2pansion does not ha,e an ad,erse impact on the

technical inte*rity and the safe operation of the licensee


27/75

of the distribution system$ measurement system$ the system for

monitorin* *as quality parameters and *as deli,ery quality

parameters and de,ices for *as odorisation;

(d) distribute *as on the basis of si*ned contracts;

(e) prepare and submit for appro,al to LC!# the disastermana*ement plan and implement such plan as required by rules

made by LC!#;

(f) maintain *as quality parameters and *as deli,ery quality parameters

pursuant to this #ct and the %tandards #ct;

(*) secure obAect i,e$ equal and comprehensible conditions for access to

the distribution system pursuant to this #ct;

(h) secure$ at the le,e l of the distribution system$ measurement of *as

consumption$ includin* meter readin* and data deli,ery necessary

for the balancin* of *as system to the a**re*ator pursuant to the #ct;

(i) pro,ide stipulated information to the a**re*ator and the related

distribut ion system operators$ with a ,iew to safe and efficient

functionin* and de,elopment of interconnected systems;

U) pro,ide stipulated information to *as market participants whose

equipment is directly connected to the distribution system

sufficiently in ad,ance$ on the ,olume and the date of the cessation

of *as distribution and the e2pected reduction of distribution

capacities;

(k) prepare and submit to LC!# for appro,al$ the distribution system

de,e lopment plan;

(1) prepare and submit to LC!# for appro,al$ the annual financial

plan; and

(m) on annual basis$ prepare and submit to LC!# an annual report in

a form prescribed in the rules.?ode ofpracticeand performance

standards

157.-(1) # distribution licensee shall$ within si2 months from the

issuance of license for distribution of *as$ prepare$ and make a,ailable for public

inspection$ codes of pract ice specifyin* the manner and procedure for meterin*$

billin* and collection of licensees appro,ed char*es for disconnection in case of

non&payment of char*es$ theft of *as or use of *as for purposes other than that

for which it was supplied and procedures for reconnection and reco,ery of

arrears and other char*es.

(-) # distribution licensee shall comply with performance standards

for distribution of *as includin* safety$ health and en,ironmental

protection instructions issued by LC!# or any other rele,ant +o,ernment entity.

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28/75

%ub&art

+eneral obli*ations of 7istribution and Transportation Eicensees

%er,ice

obli*ations

158. # transportation and distribution licensee shall:(a) operate$ maintain and de,elop under economic conditions a secured$

reliable and efficient system with due re*ard to en,ironment;(b) not discriminate system users or classes of system users$ particularly

in fa,or of the interests of such transmission or distribution licensee

or its affiliates;(c) pro,ide any other license with sufficient information to ensure that

the transportation$ distribution and stora*e of *as takes place in a

manner compatible with the secured and efficient operation of theinterconnected system; and

(d) pro,ide system users with necessary information for efficient access tothe system.

159. Chere transportation or distribution licensee is responsible forbalancin* system$ *uidelines adopted for that purpose includin* *uidelines for

char*in* of system users for *as imbalance shall be obAecti,e$ transparent andnon&discriminatory.

160. For the purpose of this %ub art$ a licensee shall&(a) within twenty four hours$ notify LC!# and any rele,ant authority

of any ha3ardous e,ent resultin* from a re*ulated acti,ity that mayendan*er public health and safety$ and such notice shall include astatement of possib le causes of e,ent and measures taken orproposed tobe further taken to address the ha3ardous e,ent;

(b) within ten days after a ha3ardous e,ent has been contained$ submit to

the Minister and LC!# a detailed report on the reasons for suche,ent and measures taken to control the e,ent;

(c) in case of emer*ency or disaster$ pro,ide assistance requested by the

rele,ant authorities and maintain a lo* book for super,ision$operation and maintenance of works and facilities make a,ailable at

LC!#$ery license shall"

(a) pro,ide efficient and effecti,e ser,ices consistent with the principles

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Petroleum Act, 2015

of uniformity$ homo*eneity$ re*ularity$ safety$ timely and continuity;

(b) ser,e prompt notice to LC!# concernin* any e,ent that implies

modification of conditions for pro,ision of ser,ice;

(c) timely$ publish and pro,ide information concernin* a,ailable capacity

and capacity that is not contracted for$ as may be specified in the

rules;(d) keep and maintain customer ser,ice re*ister to recei,e complaints and

emer*ency reports;

(e) *i,e attention to emer*ency reports made by end&users without

undue delay;(f) in a timely mariner$ report to LC!# any circumstances that

ad,ersely affect or may ad,ersely affect the pro,ision of ser,ice;

(*) a,oid any discriminatory practices;

(h) obtain and maintain an insurance as may be prescribed in the 1 icence$

sufficient to co,er liabilities that may arise;

(i) adhere to appro,ed local content plan; andU) respond to requests for ser,ice by transporters$ within one month

of receipt of such request and for distributors$ within ten days of

receipt of such request.

%ub&art '

Appro(alfor Importation, portation and ran'itfor Petroleum and

e$i'trai ion ofcertain. acti(itie'

162.-(l) 5otwithstandin* the pro,isions of sections 1-4 and 1-9$ a

person who wishes to en*a*e in the importation of natural *as or any

acti,itiesprescribed in the Third %chedule to this #ct shall be required to apply to

LC!# for re*istration.

(-) The procedures for re*istration shall be prescribed in the rules.

163.-(1) # persan who intends to import$ e2port or transit natural *as shall

in writin*$ apply to LC!# for appro,al.

(-) LC!# shall$ upon consultation with other rele,ant authorities$ issue

appro,al for import$ e2port or transit of natural *as.

(0) ?riteria and ail other details for award of appro,al for import$ e2port

or transit of natural *as shall be prescribed by the Minister in the re*ulations.

() #n appro,al of import$ e2port or transit of natural *as shall be *ranted

for a specific facility and a defined capacity.

%ub&art ll

Tari ffs$ rates and char*es

&&&&&& 164.-(1) Tariffs$ rates and char*es in a competiti,e en,ironment shall bedetermined by market forces.

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(0) The fee shall be collected by the Tan3ania e,enue #uthority orsuch other institution as maybe prescribed by the Minister and deposited in theFund #ccount established for the purpose of ener*y de,elopment.

%ub&art fJPetroleumSupply3pera/ion' a

Importation

169.-(1) # person shall not import petroleum products unless theimportation is conducted throu*h efficient procurement.

(-) The efficient procurement referred to in subsection ( 1) shallinclude conditions or requirements as the Minister may prescribe.

170. etroleum products imported pursuant to this #ct shall comply with

specifications as the Minister may$by re*ulations$ prescribe.

171. LC!# shall establish procedures for off&loadin* of petroleumand petroleum products by takin* into consideration&

(a) sensiti,ity of product;

(b) national stock position; and(c) non&discrimination amon*st licensees.

172. #ny person who contra,enes any pro,isions under this %ubpartcommits an offence and shall be liable on con,iction to a fine not less than fi,emillion shillin*s or twenty percent of the ,alue of the total consi*nmentwhiche,er amount is *reater or to imprisonment for a term not e2ceedin* two

years or to both.

+ ran'portation

173. # person shall not transport petroleum product usin* ,ehicle$,essels or facility unless such ,ehicle$ ,essels or facility complies withthe standards set out by the Tan3ania ureau of %tandards.

174.-( 1) #ny petroleum product intended for e2port or desi*natedfor specific proAect shall be directed or used for such purposes.

(-) For the purposes of subsection (1) the term&

(a) "e2port" means the takin* of petroleum or petroleum products

outside boundaries of the !nited epublic and includes the takin*of such petroleum or petroleum product form one point toanother within the !nited epublic; and

(b) "desi*nated specific proAect" means proAects undertaken within the

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!nited epublic in respect of which there is a*reement for e2emption

or remission of ta2es or toll

175. #ny person who contra,enes this art commits an offence and shall

be liable on con,iction to a fine of not less than two million shillin*s for e,ery

day durin* which the contra,ention occurs or continues and the court may order

forfeiture of the petroleum or petroleum premises$ ,essel or ,ehicle used in the

contra,ention of the offence to the +o,ernment or otherwise dealt with in such

other manner as the court may deem proper

176.-(l) #ny person who owns or commands a ship carryin* petroleum

product within a port shall obser,e such precautions as may be required in the

applicable laws.

(-) #ny person who owns or commands a ship$ and who contra,enes

subsect ion (1) commits an offence and shall$ in addition to the penalty prescribed

under the applicable law$ be liable on con,iction$ to a fine not e2ceedin* fi,e

million shillin*s or imprisonment for a term not e2ceedin* two years.

c ran'formation

177. # person shall not distribute petroleum product un less such product has

been transformed in accordance with the specification made by the Minister.

178.-( 1) The Minister may$ by re*ulations$ make specification of

petroleum products for the blendin* of biofuel and synthetic fuels and lubricants.

(-) #ny person who contra,enes the specifications referred to under

subsect ion (1) commits an offence$ and shall be liable on con,iction to a fine of

not less than ten million shillin*s or twenty percent of the ,alue of the totalconsi*nment$ whiche,er amount is *reater or imprisonment for a term not less

than fi,e years or to both.

d )tora$e

179.-( 1) L,ery person storin* petroleum products shall en sure that thepetroleum products arc stored in accordance with the licence issued by LC!#.

(-) #ny unused capacity may be open to other licensees in the mariner

subsection (1) commits an offence, and shall be li able on con,iction to a fine of

not less e2ceedin* fi,e million shillin*s for e,ery day durin* which thecontra,ention occurs or continues and the court may order forfeiture of the

petroleum$ premises$ ,essels or ,ehicle used to the +o,ernment or otherwise

deal with in such other mariner as it thinks proper.

!

stipulated in the rules issucd by LC!#.

(0) #ny person who contra,enes the specifications refereed to under


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e i'tributioneiroleumproductsto conform with

quality$ safety anden$ironment

specification

eco,erin* of

petroleum

products

5ational

etroleurnLmer*ency

%upply lan

Maintenance of

Minimum stock

strate*ic reser,e

18>.&(1) # p e r s o n shall not d i s t r i b u t e petroleum products un lesssuch petroleum products conform to the quality$ safety and

en,ironmental spec ification set out in the re*ulations made y the Minister.

(-) %ubAect to subsection ( 1 )$ any person who&

(a) tampers with the quality of petroleum products;

(b) conducts petroleum products business without safety equipment; or

(c) sells petroleum or petroleum products in unauthori3ed premises$

commits an offence and shall be liable on con,iction to a fine of not less than

fi,e million shillin*s or to imprisonment for a term of not less than three years or

both.

181. 5otwithstandin* any pro,isions of this art$ the Minister may$ in

consultation with LC!# make re*ulat ions prescribin* the method whereby

petroleum products un lit for use can be reco,ered.

(!) 4ational Petroleum mer$enc )uppl Plan

18-.&(1) The Minister may$ for purposes of respondin* to accidents$natural disasters or other interruptions or distortions of the petroleum product

supply$ cause a etroleum Lmer*ency Eupply lan to be prepared in close co&

operation with other competent +o,ernment authorities and the participants in

the supply chain.

(-) ln the case of emer*ency for reasons referred to in subsection (O )$ the

Minister may$ temporarily inter,ene in the supply chain or implement other

measures or restrictions pro,ided for in the etroleum Lmer*ency %upply lan

(0) Measures under subsection (l ) may also be taken in the e,ent that

participants in the supply chain arc seriously endan*erin* the functionin* of thecompetiti,e supply system by tryin* to establish monopolies or to control

se*ments of the market.

() The details of the elaboration$ content and implementation of the lan

shall be made in the re*ulations.

180.&(1) The Minister may for the purposes of ensurin* reliability of

supply of petroleum and petroleum products in the country cause strate*ic

reser,es of the petroleum products to be maintained in sufficient quantities and

at a location that the Minister deems proper.

(-) For the purposes >1B reliability and continuity of the petroleum supply

within the country$ the Minister$ may after consultation with LC!# and by the

order in the Gazette, direct ail licensees$ includin* industrialO customers buyin*directly from whole seller distributors$ to maintain at their own e2penses

minimum security stocks of petroleum or of ail or certain petroleum products in

their custody.

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(0) Cithout preAudice to subsections (=)#nd (-) the Tan3ania etroleum

7e,elopment ?orporations shall at all times keep and maintain national

reser,e of petroleum and petroleumproducts.

%ub&art F

#ssurance of Fair ?ompetitionrohibition

a*ainst acti,ities

contrary to

principles or fair

comperition

?aps. l and -8 4

?ap.-84

?onditions forunused capacities

of third party

facilities

184.-( 1) %ubAect to the pro,isions of the Lner*y and Cater !tilities

e*ulatory #ct $ ail petroleum supply operations shall be subAect tothepro,isions of the Fair ?ompetition #ct in relation to&

(i) the formation of cartels;

(ii) barriers to entry and e2it;

(iii) abuse of dominant position and market power;

(i,) format ion of mer*ers and acquisitions for anti&competiti,e

purposes; (,) attempts to controlprices;

(,i) the creation of artificial shorta*es of products or ser,ices; and(,ii) other restricti,e trade practices as defined in that #ct$ with

intention to contra,ene the principles of fair competition or impedin*the functionin* of a free market for petroleum products withinthe

country.

(-) %ubAect to the pro,isions of the Fair ?ompetition #ct$ all participantsin the supply chain shall sell products and offer ser,ices to all interested persons

without undue delay and without any form of discrimination by means

of quality$ quantity$ price and any other ?onn of discrimination.

(0) The Fair ?ompetition ?ommission shall monitor conditions of

the market and trade practices of participants in the supply y chain.

185. 'n order to foster a competiti,e petroleum products market for futureparticipants in the supply chain$ the followin* conditions shall apply&

(a) a licensee who is the operator or owner of a facility with unused

capacity shall apply to LC!# for appro,al of tariff for the use of

such capacity and other reasonable terms and conditions for the

use of the facility;

(b) a licensee may offer access of unused capacity to other users on terms

and conditions as may be appro,ed by LC!#; and

(c) users of unused capacity shall hold a license required for the

respecti,e operation and pro,ide proof of his capability to pay the

tariff and fulfill other financial and technical conditions as a*reedupon with the owner or operator of the facility.

%ub&art J'

#ccess to Eand for 'nstallations

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=ap. ##2

186. # license shall$ subAect to the +as !tili3ation Master lan and inconsultation with LC!# and such other rele,ant authorities$ take all necessary

measure to secure acquisition of ri*hts of way for layin*$ operation and repair of

*as pipelines and other facilities as may be requested by the licensee.

187

.-(

1) A license shall

,in consultation with the rele,ant authorities$acquire waylea,e around e2istin* and future *as infrastructure and petroleum

installations.

(-) 6wners or property on or borderin* a waylea,e shall not interferewith a licensees acquired ri*hts.

(0) # licensee shall compensate a property owner for any way& lea,e*ranted$ and any dispute related to the amount of compensation shall be settledin accordance with the Eand #cquisition #ct.

() %ubAect to rele,ant laws$ a licensee shall be entitled to the use of

public roads$ streets and other infrastructure for purposes of layin*$ connectin*$runnin* or maintaining gas distribution systems and any other installations asLC!# may appro,e.

a 6e''ation ofPetroleum 3peration'Decommissioning

plan !#&188.-( 1) # 1 incense holdershall

sumit a decommissionin* plan to

(a) before a petroleum production license or a specific license to installand operate facilities e2pires or is surrendered; or

(b) before the use of a +acility is terminated permanently.

(!) The decommissioning plan referred to under subsection ( # ), shall be

submitted to !# at least fi,e years before the time when the use of a facility ise2pected to be terminated permanently unless the !# directs otherwise.

(0) The plan referred to in subsection ( 1) shall contain proposals forcontinued production or shut down of production$ decommissionin* of facilitiesand any other information prescribed in the re*ulations.

() The decommissionin* of facilities referred to in subsection (-) mayconstitute further use of the facilities in the petroleum acti,ities$ other uses$complete or part remo$al and disposal or abandonment.

(4) The plan shall contain information and e,aluations considered

necessary in order to make direction under section 11 ( 1 ).(9) !# may$ on receipts of the plan$ require further information and

e,aluations$ or may require a new or amended decommissionin* plan.(G) The license holder shall update the decommissionin* plan&(a) inconAunction with any subsequent application for a permit$ to make

additions or substantial chan*es to the facilities;

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(b) whene,er the e2pected method or costs of carryin* out the

decommissionin* work ha,e chan*ed si*nificantly as a result of new

technolo*y;

(c) where the pre,iously assumed technolo*y is no lon*er permissible or?onsidered adequate; or

(d) when requested by !#$ within a reasonab le time limit specified

in the request.Decommissioning

fund

5otification ofcessation of use

7isposai of

decomrnissioned

189.-(1) There shall be established a decommissionin* fund for eachde,e lopment area or forother facilities operated in relation to a license or permit

under this #ct for purpose of costs related to implement decommissionin* plan.

(-) The decommissionin* fund shall be used for implementation of

acti,ities appro,ed in the decommissionin* plan.

(0) ayments into the decommissionin* fund shall commence from the

calendar quarter in whiche,er the followin* situation first occurs:

(a) the petroleum production has reached fifty percent of the a**re*ate

reco,erable reser,es as determined in an appro,ed de,e lopment plan

and any successi,e reappraisal of such initial reco,erable reser,es;

(b) fi,e years alter commencement of production; or

(c) on notice or surrender.() For e$ery subsequent calendar quarter in which petroleum is

produced or a facility operated$ !# shall char*e the license holder a portion

of the estimated future cost for decommissionin* of facilities to be deposited in

the fond.

(4) The amount deposited in the decommissionin* fund shall be char*ed

as operatin* costs subAect to the reco,ery cost limitations stipulated in the

petroleum a*reements or as may be pro,ided in re*ulations.

(9) Chere the decommissionin* fond is not sufficient to co,er theimplementation of the decommissionin* plan$ the license holder$ contractor$ andwhere applicable$ the owner of the facilities shall ca,er the costs and e2penses.

(G) Chere any amount remains in the decommissionin* fund after the

decommissionin* plan has been imp lemented$ such funds shall accrue to the

+o,ernment and shall be for the purpose of decommissionin* in the petroleum

acti,ities.

(8) The mana*ement of the decommissionin* fund shall be done by a

committee consistin* of representati,es of !#$ the license holder$ contractor

and where applicable. the owner of the facilities in a manner prescribed in the

re*ulations.

190. The license holder shall notify !.# about the time of cessation offacility if the use of a facility is e2pected to terminate permanently before the

e2piry of the license.

191.-(1) !.# may issue directions relatin* to disposa l of

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facilities

erno,al ofproperty bylicence holder

decommissioned facilities and shall stipulate time limit for implementation of

directions.(!) 7irections issued by PURA under subsection ( 1) shall be based on

technical$ safety$ en$ironmental and economic aspects and consideration for

other users.

(0) The license holder and owner of a facility shall comply with thedirections relatin* to disposal unless directed otherwise by !#.

() The obli*ation to comply with the directions relatin* to disposal of

the decommissioned facility shall apply e,en where the direction is made or is

implemented after the e2piry of the license.

(4) Chere the ownership of a facility has been transferred in accordance

with this #ct$ the license holder. contractors and owners shall Aointly ensure that

a direct ion relatin* to disposal of facility is implemented$ unless directed

otherwise by !# .

(9) Chere the direction is to the e:ffect that the facility shall continue to

be used in the petroleum acti,ities or for other purposes$ the license holder$

owner and user shall be Aointly be obli*ed to ensure that future directions on

disposal are complied with$ unless directed otherwise by PURA.

(G) Chere a direction relatin* to disposa l of a facility is not carried out

within the stipulated time$ !# may take the necessary measures on behalf of

the license holder or other responsible party.

(8) Chere !.# takes any measures under subsection (G) on behalf of a

license holder or other responsible parties$ any risks or costs incurred arisin* out

of that measure$ shall be borne by the 1 incense holder$ contractor or other

responsible party.

192.-(1) Chere a license has been surrendered or has e2pired$ or by

reason of relinquishment ceased to comprise of an area which was the subAect of

a license$ the Minister shall. by notice in writin* ser,ed on the person who is thelicense holder$ direct that person within the period specified in the notice to&

(a) remo,e or cause to be remo,ed from the area ail properties brou*ht

into that area by any person en*a*ed or concerned in the petroleum

acti,ities$ or to make arran*ements that are satisfactory to !# with

respect to that property;

(b) plu* or close off$ to the satisfaction of !#$ ail wells drilled in that

area by any person en*a*ed or concerned in those operations; and

(c) make pro,ision$ to the satisfaction of !"#$ for the conser,ation and

protection of the en,ironment and natural resources in that area.

(-) # direction *i,en under subsection (D) shall be consistent with best

petroleum industry practices$ and nothin* in this section or any direction shall be

construed as requirin* any person who is the holder of a license to do anythin*which is not in accordance with best petroleum practices.

(0) Chere a person to whom a direction under subsection (l) is *i,enrefuses or fails to comply with the direction within the period specified in the

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notice$ such person commits an offence and is liable on con,iction to a penalty

equi,alent to the total amount of money incurred in the remedy operation.

erno,al and sale

of property

Eiability for

dama*es for

disposai of

decomrnissioned

facility

193.-(1) Chere the +o,ernment takeo,er facility and the directions *i,en

under sect ion 1>(1) or= 1 (1) ha,e not been complied with$ !# may&(a) do or cause to be done all or any of the thin*s required by the

direction to be done;(b) remo,e or cause to be remo,ed$ in such manner as !# thinks fit$

ail or any of theproperty from the area concerned;(c) dispose of$ in such manner as !# thinks fit$ ail or any of the

property from the area concerned; and(d) if it ser,ed a copy of notice by which the direction was *i,en to a

person to whom !# is satisfied to be the owner of the property or

part of the property$ sell= or cause to be sold by public auction or

otherwise$ ail or any of the property referred to in this section that

belon*s$ or that !/ belie,es$ belon*s to that person.

(-) !# may deduct from proceeds of a sale of property undersubsection (1)-

(a) the costs and e2penses incurred by !# in relation to that property;(b) the costs and e2penses incurred by !# in relation to the doin* of

any act required by a direction to be done by the person$ that theperson who has been con,icted of an offence under section ->-; and

(c) the fees or amounts due and payableby the person under this #ct for

a license.(0) The costs and e2penses incurred by !# under subsection ( 1 )&(a) where incurred in relation to the remo,al$ disposal or sale ofproperty $

is a debt due y the owner of the property to the +o,ernment; and

(b) if incurred in relation to the doin* of anythin* required y a direction

under section 1> to be done by a person who is a license holder$ is a

debt due by that person to the +o,ernment$ and to the e2tent which is

not reco,ered under subsection (-)$ may be reco,ered in a court ofcompetentGurisdiction.

() %ubAect to subsection (0)$ no action shall lie in respect of the remo,al$

disposal or sale of property under this section.

194.-( 1) # person who is required to implement a decision relatin* to

disposal of a decommissioned facility is liable for dama*e or incon,enience

caused in connection with the disposal of the facility or other implementation ofthe decision.

(-) Chere the license holder or owner abandons a facility$ the holder or

owner shall be liable for dama*e caused in connection with the abandoned

facility$(0) Chere there is more than oneparty liable under subsection (1) or (-)$

the parties shall beAointly and se,erally liable for ail financial obli*ations.

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Petroleum Act, 2015Petroleum !1ct, 2015

() Chere a need to abandon a facility arises$ shall ensure the license

holder$ the owners and the +o,ernment$ that future maintenance$ responsibilityand liability are taken o,er by the +o,ernment$ based on an a*reed financial

compensation.

Lncurnbrances195.-( l ) Chere the +o,ernment requires remo,al of a facility$ any lien$

char*e or encumrance on the facility shall lapse.

(-) %ubsection ( 1) shall also apply where the +o,ernment takes o,er the

facility: ro,ided that$ in any case any right of use established with the consent of

the Minister remain in force.Takeo,er offacilitics by6o,ernment

where& 196.-(1) The +o,ernment may take o,er facilities of the license holder

(a) a license e2pires:

(b) a license is surrendered or cancelled;(c) the license holders costs ha,e been fully reco,ered; or

(d) the use of the facility has been terminatedpermanently.(-) Chere the takeo,er of a facility is intended to e

PJ . TANZANIENNE DANS LE SECTEUR DE L'ENERGIE Part N°2

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Transcript of PJ . TANZANIENNE DANS LE SECTEUR DE L'ENERGIE Part N°2