Tanzania Petroleum Development Corporation (TPDC)

The Tanzania Petroleum Development Corporation (TPDC) is the National Oil Company fully owned by the government through which the Ministry of Energy and Minerals executes its petroleum exploration and development policies. The corporation was established under the Public Corporations Act No. 17 of 1969 (repealed and replaced by the Public Corporations Act Cap. 257 R.E.2002 of the Laws of Tanzania), and through Government notice No. 140 of 30 May 1969. The Corporation commenced active operations in 1973.

Following its establishment, TPDC’s primary task was to oversee the operations of AGIP (Azienda Generale Italiana Petroli – General Italian Oil Company), the sole concession holder operating in the country by then. With the discovery of the Songo Songo Gas field in 1974, and subsequent relinquishment by AGIP, TPDC undertook the confirmation of the gas field, and eventual appraisal.

Mission
TPDC is guided by a mission to “participate and engage in the exploration, development, production and distribution of oil and gas and related services; facilitate a fair trading environment; safeguard the national supply of petroleum products; at the same time develop quality and safety standards to protect people, property and the environment.”

Vision
The corporation is visioned to “become a leading integrated National Oil and Gas Company competing nationally, regionally and globally in an environmentally responsible manner to the benefit of all stakeholders.”

Objectives
The corporation’s objectives as stipulated in the TPDC (Establishment Order, 1969), among others, include:


 * Exploration and production of petroleum
 * Engage in distribution and storage facilities
 * Acquire exploration and production rights
 * Contract, hold equity or participate in oil and gas concessions, franchises and licenses
 * Manage any legal entities delegated to the corporation
 * Develop an adequate industrial base for the oil and gas industry

The corporation activities encompass petroleum exploration, production, transportation, refining, marketing and distribution of petroleum products. These activities can be performed independently or in collaboration with foreign companies through Production Sharing Agreements (PSAs).

Functions
According to the Petroleum Act 2015, TPDC as the National Oil Company shall perform the following functions:

(a) Advising the Government on policy matters pertaining to petroleum industry;

(b) Participating in petroleum reconnaissance, exploration and development projects;

(c) Carrying out specialized operations in the petroleum value chain using subsidiary companies;

(d) Handling the government’s commercial participating interests in the petroleum sub-sector;

(e) Managing the marketing of the country’s share of petroleum received in kind;

(f) Developing in depth expertise in the petroleum industry;

(g) Investigating and proposing new upstream, midstream and downstream ventures local and international;

(h) Contracting, holding equity or participating in oil service and supply chain franchises and other licences;

(i) Performing any petroleum activities and related functions.

Additionally, the National Oil Company, shall have exclusive rights over natural gas midstream and downstream value chain to undertake the following:

(a) Safeguard the national interest in the natural gas industry;

(b) Participate in the development and strategic ownership of natural gas projects and businesses on behalf of the Government;

(c) Carry out specialized operations in the natural gas value chain on its own or through its subsidiaries including processing, transportation, liquefaction, regasification, storage, compression and distribution;

(d) Aggregate natural gas, own and operate major gas infrastructures on its own or through its subsidiaries;

(e) Promote investment of gas activities in the designated areas;

(f) Acquire, analyse and disseminate information on issues relating the natural gas industry;

(g) Own pipeline network from central gathering stations to wholesale distribution and end user;

(h) Plan and propose midstream and downstream ventures locally and internationally;

(i) Participate in the joint venture project for optimisation of shareholder value under public private partnership and strategic partnership arrangements;

(j) Trade or supply gas in regional market and beyond;

(k) Implement gas master plan;

(l) Promote local content including participation of Tanzanians in the natural gas value chain;

(m) Hold land for key oil and natural gas projects; and

(n) Perform any other functions as the Government may direct.

Directorates
TPDC has four major directorates namely Directorate of Corporate and Legal Services, Directorate of Downstream Operations, Directorate of Upstream Operations, and Directorate of Corporate Strategic and Planning (DCSP). The DCSP was established after restructuring of the Corporation in May 2014. The new directorate is charged with the development of corporate strategies and corporate plans for investment decisions as well as identification of viable projects to be undertaken by TPDC, and/or other private sector participants through Public Private Partnership arrangement. The Directorate, whose workforce comprises of 11 staff, has three units: Corporate Strategy, Investments and Planning.

According to the TPDC's website, the directorate has three major functions: Formulating and reviewing of short and long-term corporate strategies for all investment plans and making sure that plans are reviewed and adhered purposely for achieving corporate objectives; Identifying, screening and evaluating investment projects through research and monitor implementation in collaboration with Upstream and Downstream Directorates, and developing plans of the corporation and its subsidiaries.

Subsidiaries
TPDC holds shares in BP Tanzania Limited, TAZAMA Pipeline Limited, Mafuta House Investment Company Limited on behalf of the Government (Treasury Registrar). The Corporation is also actively engaged and holds shares in the Songo Songo gas-to-electricity and Mnazi Bay gas development projects. However, the Petroleum Act 2015 states that the “government shall at all times maintain a minimum of fifty one percent of shares in the National Oil Company. As it is wholly owned by the Government, all the shares are held by the Treasury Registrar.

Areas of Concern
There are several constraints limiting the performance of TPDC. Politicians and senior government officials seem to be unaware of the importance of TPDC working as an autonomous corporate national oil company. The current fiscal and financial arrangement forces TPDC to operate as a government department. The corporation does not have legal power to generate, maintain, save and control own financial resources.

Boards of Directors
The following constitute the current board of TPDC:

=References=
 * Mr. Michael P. Mwanda (Chairman) – Retired Permanent Secretary
 * Eng. Norbert Kahyoza (Director) – Assistant Commissioner for Energy, Ministry of Energy and Minerals
 * Mr. Ali Khalil Mirza (Director) – Principal Secretary Ministry of Water, Construction, Energy and Land Zanzibar
 * Hon. Josephat Makanja (Director) – Retired Judge of the High Court
 * Prof. Sufian H. Bukurura (Director) – Law Reform Commission
 * Ambassador Ben Mosses (Director) – Retired Ambassador
 * Dr. Donald Mmari (Director) – REPOA
 * Ms Mameltha Mutagwaba (Director) – Ministry of Finance
 * Dr. Lutengano Mwakahesya (Director) – Director General, REA
 * Mr. Ahadi Chacha (Director) – SUMATRA