Tanzania Looks to Renegotiate Natural Gas Contracts

The government of Tanzania appears to be considering a new round of negotiations with potential natural gas investors as the process to review Production Sharing Agreements (PSA) comes to a close.

The Attorney General’s office is leading moves to rebalance how revenues are shared, looking to increase the benefit of natural resource extraction to the country. It encompasses contracts from a 1999 agreement with Pan African Energy Tanzania to a 2012 agreement with Swala.

The process was prompted at the recommendation of a parliamentary committee reviewing the benefit of the oil and gas sector to the country. It was made possible by the Natural Wealth and Resources Contracts Act of 2017, which empowered parliament to review all agreements with the sector and re-negotiate where necessary.