Initial socio-economic and environmental aspects of petroleum sector development in Tanzania

Recent gas discoveries made in the south-eastern parts of Tanzania indicates a hugepotential for gas reserves in the country. President Kikwete has expressed expectations thatpetroleum resources could lead to a resource blessing for the country. However, thedesignated blocks for exploration and drilling activities are located in sensitive marineenvironments, which are important for the livelihoods of the country’s coastal communitiesand biodiversity.This study provides an initial analysis of socio-economic and environmental aspects ofpetroleum sector development in Tanzania, with a special focus on the coastal areas where theindustry’s activities are mainly located. Attention has been focused on institutions, companiesand petroleum-related assistance programs that are involved in the Tanzanian petroleumsector, and how rights and responsibilities are shared between these. Six Tanzanianinstitutions, one Norwegian petroleum company, two assistance programs and one investorcorporation were investigated. Accordingly, their roles and responsibilities were assessed tobetter understand how petroleum management is characterised by certain features, rulesdevised to constrain actions, institutional attributes and interactions.To explore the interrelationship between social and natural systems, severalunderlying factors were analysed that may increase or decrease the vulnerability andresilience of petroleum development in the coastal system. Corruption, wealth inequalities,disregard for people’s rights and lack of regulations were considered as factors that maycompromise the resilience of the system. In addition, factors that may enhance or detractrobustness from key institutions were analysed to better understand the robustness of themanagement system. This involved issues of funding, infrastructure, and access to financialand human resources.Overall, the thesis scrutinises the early developments of gas and oil development inTanzania, and related socio-economic and environmental challenges and opportunities. Bydrawing upon examples from countries with long histories of petroleum (Norway andNigeria), the study offers a brief analysis of the overarching objectives of resource andenvironmental management, the ecosystems under management and the institutions involvedin or granted a standing in resource decisions.