Saturday, April 22, 2017

TPDC unable to collect geological data of oil exploration in Tanzania

THE Tanzania’s National Petroleum Development Cooperation (TPDC) is said to have no an overall control of the full quality data reports which it supervises for the geological and geo-physical exploration about oil and gas exploration currently going on in the country. The current report issued by office of the Controller Accounts General (CAG) has indicated that, there is danger of destroying the quality, the correctness and the level of the understanding about the data reports due to lack of the effective system TPDC has in supervising the data reports on the exploration. The CAG Professor Mussa Assad said in his report mid this week that, “TPDC is in danger of releasing negative reports of the results about the data reports due to lack of sufficient knowledge it has in analyzing the available data of the geological and geo-physical. According to the report, under the five years of operation between 2010-2015 respectively, there were a total of 71 projects which were registered in the exploration and development of oil and gas in the country. However out of these only 4 percent of the projects have been inspected so far to see if they have complied with the principles laid down of the environmental protection. The report further shows that, there has not been further effective inspection and follow-ups of the oil and gas projects to see that if they conform to the already imposed standards of the protection of the environment required which were put in place when analyzing the negative impact likely to be caused by bad environment. The report has further indicated that, “due to the continued situation there has no efficiency shown in revenue collection of the activities related with the exploration of oil and gas going on in the country. However, the report has put down that the total revenue collection from the oil and gas sectors is below the average and the government has not yet succeeded to its maximum level of its revenue collection for the sector. For the last five years of a trading period, the Tanzania Revenue Authority (TRA) has collected below the average of the Tanzania shillings worth Ts. 208 billion, the amount that is equivalent to an annual budget allocation for a single ministry in the country. The report has uncovered that there is low capacity level of producing local experts to curb the increased demand for the sector in general an aspect that the sector might fail to produce as required. Either for the period of 4 years (2012-2016) the government had issued the intended technical training for 6 percent only out of the total number required at a level of technical expertise. There is a shortage of 48 percent of the training in oil and gas sector. The government is able to implement only 20 percent of its targets in the implementation of its long term training programmes. This has been discovered that at this level, the production of the needed expertise is not enough to run the entire operational needs for the sector as required.

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