Tanzania Passes Hydrocarbons Bill

Tanzanian parliament passed on Sunday a legal and regulatory framework for developing its hydrocarbons, reported Reuters.

Although there have been no oil discoveries, in recent years, the East African nation has witnessed multiple gas finds, mainly offshore. Tanzania estimates to hold more than 55 trillion cubic feet of natural gas. 

Under the terms of the bill, energy companies will pay a 12.5 percent royalty for oil and gas production in onshore or shelf areas and 7.5 percent for offshore output, Reuters reported. The state's share of profit on natural gas production would range from a minimum of 60 to 85 percent, pegged on specific daily gas output.

Vote on two other related bills- the Oil and Gas Revenue Management and the Tanzania Extractive Industries (Transparency and Accountability) bills- is expected on Monday.