Africa-Press – Tanzania. TANZANIA Petroleum Development Corporation (TPDC) is set to start procuring oil directly from the energy’s-top producing countries.
The move by the national oil company will address oil and gas shortages and regulate oil prices in Tanzania.
According to Energy Minister January Makamba, the government will now be relying on TPDC on procuring bulk crude oil, straight from the refineries of the Organisation of the Petroleum Exporting Countries (OPEC).
Mr Makamba who was shedding light on his recent work visit of the Emirates, Kingdom of Saudi Arabia and Algeria, revealed that the frequent surge of fuel and oil prices witnessed in the country was a result of involving brokers at the expense of TPDC.
“TPDC had recently won a tender of procuring oil directly from the exporters’ refineries every month, a move which will greatly reduce its price and shortages,” said Mr Makamba, while addressing reporters here yesterday.
Without disclosing its name, Mr Makamba said a company had sold to the government premium oil at 30 US dollars (about 69,000/-) per barrel, when the global price stood at 168,000/- a barrel.
However, following the tender that was secured by TPDC in September this year, the national oil company purchased the same barrel at a mere 20 US dollars (about 46,100/-).
“You can see the benefits of engaging the national company in procuring bulk oil directly from the exporters,” maintained the minister.
According to Mr Makamba, the new development will greatly reduce the anxiety gripping the members of public, when such an important thing goes missing in the market and assures supply and stability of oil and gas prices in the country.
Mr Yakama however assured that the new development will not lock out energy players from the private sectors, saying the oil procurement had a long value chain.
The minister further revealed that oil and gas currently available in the market only lasts for 15 days contrary to the required standard which is between three to six months.
“Top officials from such countries will be coming to Tanzania to explore ways on how best to execute such a new plan,” he disclosed.
The government, according to Mr Makamba, is also keen on reviewing the Bulk Oil Procurement System with a view of establishing the shortfalls that have for years been impeding the process.
It will also review the performances of its agencies such as TPDC, Energy and Water Utilities Regulatory Authority (EWURA) and the Petroleum Bulk Procurement Agency (PBPA).
Meanwhile, plans are afoot to strengthen the capacity of TPDC in the exploration, development, production and distribution of oil and gas in the country.
The national oil company is set to employ more experts in the field of gas and oil, with a view of making it competitive nationally, regionally and globally.
“We would also put in place a strategic petroleum reserve that will guarantee the country a reliable source throughout the year,” added the minister.
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