Petroleum Act 2015

1. Short title and commencemen

2. Application 3. terr,retation 4. etroleum vested in the-G vernrnent ARTU ADM JSTRAJ'I PROvISIONS Sub-Part I General Administrative.Provisions (q; Functions of the Minister 5. functions fthe Minister

6. Commissioner for Petroleum Affairs (h) Oil and Gas Advisory ureau

7. Qil and as Ad isory Bureau. (c) .ationalOil Company Tanzania Petroleum Development Corporation r! 9. 10. Functions of the National Oil Compan Instruction to the National Oil Company Sub-Part n - Petroleum Regulatory Authorities (a) Petroleum Upstream Regulbtory Authority I Establishment of PU.RA -*..II(Jt. -,1_· 'J.L...! ~T:'· ~ 2 o.2fJf 12. tFunctions and responsibilities of URA !l. Conduct of functions by PURA

14. Directions by the Minister J 5. Direction~.9fPURA

16. Compliance with directions

17. Establishment olBoard of PURA, • )8. 'Functions of thellBo~ J9. Disqualification fonappointmenut the Board

20. Board to regulate its own proceedings

21. Committees of the Board 22. ,Delegation of power of the Board

23. Appointment of-Director General 24. unctjqns 0 birectoJ; General 25. ellure of 0 Ice of Director General

26. Other officers and ernployees of P19RA t27. lEstablisti'inenf.ofNowination Committee

28. Functions and meetings of Nomination Cqmmittee (b) .finerg), and Water Utilities RegulatofyAulhq_rity 2~. owers f EWURA 30. t'Ul,1ions and du ies ofEWURA

31. General principles g erning URA ART 1Il UPStREAM PBTRO~EUM OPERA T10NS Su -Part I :rvfanagement>QfPetrofeum A eas and Recon~aissance Permits (a'; Management of %troLeum Areas Graticulation of the earth s surface and cons in tion of bloc s Opening, redefinition and closure f areas II (jJ) Reconnais ance Permits

34. A,PplicatioJlfor reconnaissance ,J?ermil •

35. Duration of reconnaissancc"permi

36. Grant of reconnaissance peonit

37. Activities authorized by reconnaissance permit Commencement of reconnaissance activities No.21 The Petroleum Act •_...__ I 2015 3 l- • 39 Termination of reconnaissance permit

40. Waiver • 41. 42. Expiration of permit Ownership of data • ! ••• Sub-Parr II Petroleum Rights, Licences and Agreement • (a) Petroleum Rights and Conditions

43. Power to grant petroleumrights

44. Exclusive rights conferredto the National Oil Company

45. Persons who may partner with the National Oil Company

46. Consortiaandjoint operations

47. Agreementin respectto grant of right

48. Tendering process 49. 50. .~ Power of Minister and PORA to obtain information Reservatiolfof blocks (aJ Petroleum Licences and Agreements .' (i) Exploration Licence 51. 52. 53. Application~or petroleum exploration licence Grant or refusal of application for exploration Licences Notice 0 decision 01) application for exploration licence • 54. 55. Contents of exploration licence Righfs and responsibilities conferred by exploration Licence •

56. Conditions of ex Ioration licence ·• , 57. 58. 59. 60. App ication for extension of-exploration licence Apelication for extension to be in respect of reduced area Grant or refusal for extension Extension Of an eX'ploration licence in respect of location - • • ..- .,.,. • 0 '" 61. onditions of grant of exploration licence (ii) Discovery oj petroleum _ --

62. Discovery of petroleum . to be notified ....

63. Directions o£'pURA on discovery of petro Ieurn

64. Declaration of location 65. ilppraisal and investigations of locations 4 No.21 The Petroleum Act 20)5 - - (iii) Development Licences ..(0' I 66, 67, 68. Application for development licence Contents of application for development licence Disposal of application - • .: I 69, Restriction on grant of development-licence • 70. 71. 72. Notice of decision on appl ication for development of Ijce~?e Contents of the development licence Rights conferred by development licence • II, 73. 74. 75. 76. Term of development licence Application for extension of development licence Grant or refusal of extension of development licence Production permit 17, Revocation of declaration of location ,.,

78. Unit development I 79, Directions as to recovery of petroleum • 80, Restriction on exercise of rights under licence I Sub-Part Ul • Surrender, Cancellation and Suspension of Licences and Transfers and ,Registration Records • (aj Surrender, suspension and Cancellatjop ~ 81. Surrender of licence

82. Effect of certificate of surrender t, 83. Suspension or cancellation flicence (b) Transfers and Registration Records -- • 84, 85. 86. Petroleum Registry Interest in licence to be c'reate-l'd by instrument in writing Transfer of interest in a licence to be approved 2Y Minister •

87. Minister may require information Sub-Part IV Information and Documentation " ,. 88 Information data and reports 89, Records to be kept 90, Duties on termination of licence and reconnaissance pcpnit

91. Availability of information to the public No.21 The Petroleum Act 2015 5

92. Confidentiality of data

93. Prohibition against disclosure of information

94. Further information to be.furnished

95. Failing to furnish information Sub-Part V Obligations of Licensees and Contractors

96. Third party access .. 97. 9S. 99. Domestic supply obligation Supply of gas and costs Price valuation of petroleum -

100. Work practices for licence holder and the contractor

101. Work practices of permit holders

102. Penalty for breach I 103. 104. 105. 106. Maintenance of property Drilling near boundaries Protection from .,iability of members of Board and officers of,FURA Duty not to disclose information I , 107. lOS. Survey of wells Control over contractor "

109. Power of entry Sub-Part Vl Surface Rights :

110. Right to graze stock L 11. Compensation for disturbance of rights

112. Rights over unalienated land Sub-Part VIr Petroleum Fiscal Regime

113. Royalty on petroleum

114. Annual fees L 15. Bonus Payments

116. Payment of Tax .. 117. Ring fencing on recoverable cost of exploration and development licence

118. Payment terms 1] 9. Penalty for late payments

120. Recovery of payments under this Act

121. Security for compliance ....• ·W 6 No.21 ThePetroleum Act 2015

122. PU¥ may require ynormafion to be furnished

123. Failure to fumi h information • PA TrV MIDSTREAM AND DOWNSTREAM AC'FIVTJIE .. Sub-Part I National Petroleum and Gas lnformation System National Petroleum a!}dGas Information System Sub-Part n Exclusive rights of the aggregator

125. Exclusive rights of the aggregator .- ~ I 126. Sub-PartlI!, Approval for Construction of Petroleum lnfrastructure Application for construction approval

127. Prohibition for construction of gas infrastructures

128. Grant 0f construct"on approval

129. Expiry of construe ion approval

130. Revocation or suspension of an approval Sub-Part IV Licensing of Mid trearn nd Downstream activities ~f: • 131. 132. 133. 1~4. Application for icence Consideration of the application Granf of licence Refusal of an application '- , •• 135. ]3 (i. Conditions for licence Inquiry -

137. Validity of licence

138. A plication and licence fees

139. Assignment and transfer of licence .~-L )40. 141. Modification oflicence Renewal of licence .. I :=:::. ~ • J II s , ,No.21 The Petroleum .Act 2015 7 J 42. Suspension 0 licence

143. Revocation of licence

44. Continuity o(service in case of transfer or revocation

145. Prohibition of certain activities and separation of accounts (b) Specific requirements lor underlakinlf._.yid and downstream activities .. • (i) Processing, transportation and storage licence ..J •

146. Processing, Transportation and storage

147. Third party access to processing facilities

148. Location of gas processing facilities

149. Transportation system and third party access

150. Methods and practices for storage J 5 1. Strategic storage of gas (ii) Liquefaction, Shipping and Re-gasification Licence

152. Conditions for liquefaction

153. Conditions for shipping natural gas

154. Conditions for rc-gasification (iii) Distribution licence 1,55. Conditions 'for distribution

156. Code of practice and performance standards Sub-Part V General obligations of Distribution and Transport Licensees If

157. Obligations of distribution and transportation licensees • 158. System balancing . •' 159. 160. Obligations relating to safety Service obligations .. Sub-Part VI Approval for importation, Exportation and Transit for Petroleum and Registration Ofcertain activities

161. Activities requiring registration II 8 0.21 ] q2. A'pproval fQr.mport, export and transit 0 gas Sub-Part vn Tariffs, rates and charges

163. Determination of tariffs. rates and charges )64. Inquiry SUQ-Part vm Pricing Mechanism (a) De ermination of gas pric

165. Determinati n f gas price (bFDeterminati 'm of petroleum pricing

166. Monitoring of petroleum and petroleum product prices

167. Imposition of petroleum fee t- . - Sub-Part IX Petroleum Supply Operations (a) importation I. 168. 169. 170. Efficient procurement Petroleum and petroleum products specifications Off-loading

171. Ecnalty (b) Transportation

172. Vehicle's vessel's standards • 173. etioleum and etroleum products to be used for intended purposes

174. Penalty

175. Ships to take precautions (qJ Transformation

176. Refining of petroleum

177. Blending of bio el j='. - . • • No.21 ThePetroleum Act (d) Storage

178. Storage of petroleum or ,Petroleum products (e) Distribution 179. to Petroleum products conform with quality, safety and environment specification

180. Recovering of petroleumlproducts • (f) National Petroleum Emergency Supply Plan

181. National Petroleum Emergency Supply Plan

182. Maintenance of Minimujn stock strategic reserve Sub-Part X Assurance of Fair Competition

183. Prohibition against activities contrary to principles of fair competition

184. Conditions for unused capacities of third party facilities Sub-Part Xl Access to Land for Installations

185. Access to land ...

186. Way leaves PARTV CESSATION OF PETROLEUM UPSTREAM AND DOWNSTREAM ACTIVlTTES (a) Cessation oj Petroleum Operations

187. Decommissioning plan ...

188. Decommissioning fund

189. Notification of cessation of use .: 190. Disposal of decommissioned faciJities .... -

191. Removal of property by licence holder

192. Removal and sale of property

193. Liability for damages for disposal of decommissioned facil ity 1,94. Encumbrances

195. Takeover of facilities by Government - .. 10 l11e.PeLroleumAct 2015 (b) Ce¥afion of Downstream Activities

196. Licensee to submit the decommissioning plan 1$7. Decommissioning fund 198. isposaJ of the decommissioned facilities fART"V] HEABTH AND SAFETY ref) Health and Safety in Petroleum Upstream Operations 99. afet

200. Safety precautions

201. General requirements for emergency preparedness

202. Emergency preparedp.ess against deliberate attac s

203. Safety ~ones oQ.04. "suspension f petro Jeupl activities

205. Qualifications

206. COinmission of, inquir (b2 Health and Safe yin Downstream Activities

207. Adoption and adaptation of international standards and speeificatiQ£ls PART VLJ BNVlRO MENWAL PRfNCIPLES AND LIABILlTI (a) Environmental principles Q1 d liapilities in upstream petroleum operations

208. Compliance with environmental principles

209. Pollution dam g

210. Liability of licence holder for pollution damage 211. ~iability (or pollution damage caused without a licence

212. Claiming of damages

213. Claiming compensation for pollution 21j. Jurisdiction J1 Protection of Environment in mid and dowt;;·eam activities

215. Environmental Management - -'I II ".' - ! I - I.. - l 1- II I NQ.21 The Petroleum Act 2015

216. Gas eakage

217. Petroleum and petroleum p oducts spill ~ARTVIII GOVERNMENT P ARTTCJPATI ON, LOCAL CO rENT, • CORfORA TE SOCIAL RESPONSIBILlTY AND rNTEGRITY PLEDGE 218. 2L9. Government participation in petroleum and gas activities Provision of goods and services by Tanzanian entrepreneurs •

220. Training and employment of Tanzanians

221. Training .;.,and technology transfer

222. Corporate social responsibi lity 223. lnt grity pledge

224. Payment of capital gain tax PART IX FTNANC[AL PROVTS(ONS •

225. Funds of PURA

226. Tax exemption

227. Duty to operate on sound financial principles

228. Power to open and operate bank accounts

229. Estimates

230. Financial year ofPURA 23 I. Accounts

232. Audit

233. Annual report PART X • OFFENCES AND PENALTIES .. ..., (a) Offences and penalties in respect of petroleum operations

234. Obstruction of an authorised officer

235. Obstruction of licence holder and the contractor 2~fi. Offences committedby body corporate I 12 ThePetroleum Act 2015

237. Order for forfeiture

238. Contraven ion o'(decisions and orders issued under this Act

239. General offences ,. (b) Offences and Penalties in ResR,eC1of Natura! Gas activitie

240. Offences and cnaltics

241. Compounding of offences by EWURA PART XI DISPUTES SET1' EM6NT (a) Settlement of disputes arising from upstream pe7roleum operations

242. PURA may decide disputes .1 243. 244. Enforcement0g>U_flA's decrees and orders Appeal to tl12Fair Competition Tribunal ]I 245. 246. Jurisdiction of cq_w;sexolude? Rules with respect to proceed mgs ~ •• _, 1- • - (b) Settlement of Disputes Arising from Downstream Regulated activities 247. pisputes settlement PARfP'Xll ot GENERA~ PR9Y!SJONS Sub-Part I 'General Provisions on Petroleum Operations

48. Use of licence as Security

249. GQnfljctpGinterest> Sub-Part Il General Provisions on Natural Gas activi ies -~ •• 250. 251. 252. 253. Qual i and standards Oil and Gas Revenue Fund Powers of entry and inspection '!II __ Supplies or deliveries to cover Tanzania requirements .~-= ~ • II< _- -

254. Natural disaster or other extraordinary disaster _ ., .. ... .. ..,-~ ~ - I _ - No.21 The Petroleum Act

256. Appeals • • •.'. 257. • 258. Review . ht to intervene Governments ng .. .);~ 259. 260 . Regulations Rules -- .-. -. -. "')-;, • • • ~ . Sub-Part I1l Repeal and savings .J'.," - . -. IL ... _ - - - •• r _-

261. Repeal and savings SCHEDULES - • r. - - • .. • •,. - -r - ..... , .-rl_ " ....... .... ",.. _4 !(.~~ • - - No.PI The Petroleum A~ 20t5 15 THE UNITED REPUBLIC OF TANZANIA • • NO. 21 0 . 2015 I ASSENT, President ..~!:t.~~/ ..~!~ ..... An Act to provide for regulation of upstream, midstream and downstream petroleum activities establishment of the Petroleum Upstream Regulatory Authority, to provide for the National Oil Company, to secure the accountability of petroleum entities and to provide for otlier related matters. ENACTED by the Parliament of the United Republic of1fanzania. PART PRELIM ARY PROV1SIONS Short-title and 1. This A t may be cited as the Petroleum Act, 2015 commencement and snail come into operation on such date as the Minister may, by notice published in the Gazelle, appoint. Application 2.-(1) this Act shall, subject to subsection.B) apply 0 Mainland Tanzania as well as Tanzania Zanzibar- II. •- • • • II I r ..... l' I III 16 No.2 I • ." • The Petroleum Act • 2015 I (a) with respect to the regulation of petroleum' upstream operations and matters incidental thereto within •• territorial land, inland lakes, sea-bed and subsoil of the continental shelf in any land to or in the ._ jurisdiction to which this act applies; and (b) in relation to midstream and downstream petroleum activities, and to every person who conducts any of. the regulated activities. (2) The regulation of petroleum upstream operations, midstream and downstream activities and matters incidental thereto to which this Act apply shall- • .. I -- (a) where such operations or activities arc undertaken within Mainland Tanzania, be governed and administered by institutions established or referred to under,this Act; and , -- L (b) where such operations or activities are • - undertak~n within Tanzania Zanzibar, be governed and administered by institutions in accordance with the laws of Tanzania Zanzibar. I ._ (3 The Government of the United epublic and the Revolutionarys Government of Zanzibir may enter into arrangement to undertake joint petroleum operations or I- ~ • -r _ t-· petroleum activities in specific areas or overlapping blocks. (4) Revenues derived from petroleum operations or ,_. • petroleum activities undertaken- (a) within Mainland Tanzania shall be used by the Government of the United Republ ic for Mainland Tanzania; ..f 11 ·~ • (b) within Tanzania Zanzibar shall be used by the Revolutionary Government of Zanzibar for Tanzania Zanzibar; • R> under joint petroleum operations or petroleum activities shall be-collected. used and accounted for in accordance with the arrangement entered into in accordance with the provisions br > tr:':: subsection (3).

3. In this Act, unless the context otherwise requires: "appraisal" means activities to be carried ou after a discovery of petroleum with the aim of defining parameters of the petroleum and reservoir to which the discovery relates No.2)' The Petroleum ~c' 2015 17 and determine its commerciality and include but not limited to: (a) drilling of wells and running productivity tests; (b) collecting geological samples and reservoir fluids; and (c) conducting supplementary studies and acquisition of . geophysical and other data, as well as Ole pr cessing of same data' _ "appraisal programme" means an approved work programme and budget prepared for purpose of appraisal; "appraisal well" means any well drilled after discovery of petroleum in a contract area for purpose of ascertaining the quantity and areal extent of petroleum in the petroleum reservoir to which that discovery relates; "associated natural gas" means natural gas which exists in a reservoir with solution in crude oil and inclu es gas cap which overlies and is in contact with crude oil' - "affiliate" means any person who directly or indirectly, .. • through one or more intermediaries, controls or is controlled by, or is under common control of'another 'f/(' person; ::...... • _ "aggregate " means a state enterprise and subsidiary to the National Oil Company having exclusive rights to --.. purchase collect, transport and sell gas produced in the country-onshore, shallow-shore and oJfshore' "best' international petrqleum industry practises" means ..._ _rE practises in accordance with the m st up to date IP'.,,_ .... international standards that are generally accepted in the international petroleum industry for the conduct of petroleum activities taking into account the relevant safety, • economic, technological and environmental •aspects; '~Jock" means a block constituted as provided by section 32' 'Board ',means the governing board of the Petroleum Upstream Regulatory Authority; "Bureau" means the Oil and Gas Advisory Bureau established under section 6; "buyer" means a person ho buys gas from a supplier or ~lother buyer, and sells it to another buyeror an end- • - user; 'charges" means amount of money paid once by a customer for - initial connection, reconnection or other gas services as .. - ... • i .. 18 No.2l The.Petroleum Act 2015 may be prescribed i the regulations· Cap.212 "company" means a body corporate incorporated under the Companies cti "continental shelf' means seabed and subs il 0 marine areas extending beyond the United Republic of Tanzania territorial sea, through the natural prolongation of the United Republic of Tanzania territory to the outer edge of the continental margin, but not less than 200 nautical • miles from the-baseline from which the breadth of the territorial sea is measured, and not beyond the median - I line to another state, unless otherwise derived from the I - rules of international la for continental shelf beyond 200 nauti al miles from the base lines or from an agreement with the relevant State; "contract area» means an area in which at any particular time is subject-to an exploration licence o~development licence • granted to a licence holder or as defined in the relevant - agreement; "contractor" means a second party or an entity to which any interest on the licence may be transferred in the application of the provisions of the relevant agreement; I "corporation" means a body corporate incorporated in or outside Tanzania, but shall not include a company; '~ontrol" means the ownership by one person of fifty percent or more of the voting interests of other ~ers6n; "customer" means a person who purchases, transports, stores distributes. re-gasifies or markets services for which I tariffs are levied by a licensee; "decommissioning" removal or disposal of structures, facilities I and installations and includes pipeline, platforms and other froperty used in petroleum operations in an area, cleaning up of the area, plugging and secure of wells, restoration of land, safety clearance of an area, in connection with abandonment or cessation or partial cessation of petroleum operations in an area or part of " an area; "delivery point" means a point at the wellhead or inlet flange of a processing plant or at the ''Outlet of the transmission system or a point specified in the approved development plan \vitbinI or outside the contract area; No.21 TheBeirJleum Act 2015 19 "developme t area" means a area of land subject to a development licence; "development licence" means a licence granted under section bO; "development cperatiqns" means operations for or in connection with production of petroleum and shall include the activity carried out to prepare the Development Plan and the activity carried out after the grant of the development icence in the respective development area and shal jnclude: (a) reservoir geological and ge physicaJ studies and surveys; (b) dri IIing of producing and inject ion wells; (c) design, construction, installation, connection and initial testing of equipment. pipelines, systems, facilities, plants. and related activities necessary to produce and operate wells, to take, save, treat, handle, store, ransport and deliver petroleum and to undertake rc- pressuring, recycling and other secondary r tertiary ecovery projects; "development plan" means a plan accompanying an application for a development licence.containing detailed proposal for construction, establishment and 0 erations of all facilities and services for recovery, processing, storage, transportation 0 petroleum from the proposed development area and training and employment of Tanzanians; "development well" means a well drilled for purpose of producing or enhancing production of petroleum from a commercial discovery and includes the appraisal wells • III.p completed as producing or injection wells; "delivery point" means a point at the wellhead or inlet flange of • a processing plant or at the outlet of tne transmission system; "Director General" means a person appointed under section 23; "distribution" means the activity of receiving, treating and delivering gas through an interconnected system of gas or tpipeLines that has a maximum operating pressure under lnormal conditions not exceeding lObar gauge and any other approved equipment; • ._- 2015 "distribution system" means a local pipeline network and • related accessories for purposes of delivering of gas to customers and retailing outlets; - "discovery block" eans a Block in the exploration area comprising of geological feature as outline by~ the relevant geological of geophysica data in which, a - I - discovery is located; "drilling" means perforation of earth's surface, whether the hole is vertical, inclined or horizontal and includes all • operations for preventing the collapse of the sides of the hole or preventing hole from becoming filled by - extraneous materials including water and fitting of wellheads, coring and logging and any other related operations; "downstream activities" means the transportation, distribution, storage, regasification and marketing of gas and r Cap. 414 petroleum products; "EWURA" means the Energy and Water Utilities Regulatory Authority established under the Energy and Water • Utilities Regulatory Authority Act; "exploration area" means 'an area of land subject to an exploration li,~ence; "exploration licence" means a licence granted under section,52; "exploration operations" means operations for or in connection with exploration for petroleum and shall include geological and geophysical surveys and studies, aerial • surveys and other as may be included in approved work programme and budgets, and the drilling of such shot holes, core holes, stratigraphic tests, exploration wells, and other related holes and wells, and the purchasing or acquisition of such supplies, materials anti equipment which may be included in approved work programme and budgets; J "exploration period" means a time granted for the performance of exploration operations: • • "exploration well" means a well drilled in the course 'of exploration operations conducted and shall not include _. , , an appraisal well whose purpose at commencement of , drilling is to explore for an accumulation of petroleum whose existence was at that time unproven by drilling; . ...... No.21 The Petroleum ~ct "eligible end-users" means all industrial or commercial end- sers, who purchase gas direc ly frOJD supp iers; "end-user" !lleans any electricity generator, household, industrial or commercial concern or any othe eI2tity which purchase gas for its own use; Cap. 1~1 "enviro ment" has the! meaning ascribed to It--under tlW • Environmental Management Act; Cap. 191 • "Enviro mental Impact Assessment" shall have the same meaning ascribed to >1t under the Environmental Management-Act; "gas plant' means a plant for treatment, conditioning, synthesizing; refining, processing separation or conversion of natural gas; "graticular sectiont' means a section re~rred to in ection 32; "gas" means any naturally occur ing mixture of hydrocarbons in gaseous state, principally methane with varying quantities of ethane, propane, butane and 0 her .gases used as fuel orlfeedstock, whether: a) pressurised to be transported and distributed through pipelines, lateral lines and spur line; (b) compressed in special cylinders or vessels, to be fficiently transported or stored as com pres ed natural gas (eNG) by special trucks or ships; <;?r (c) liquefied using special facilities, to be efficiently transported as liquefied natural gas (L G); "gas code: means operational and management specifications governing professional and ethical requirements of gas service providers in rendering services asso iated with transportation. distributi n, supply, stora e of gas or any other related activities prescribed by ~WURA.; "gas infrastructure" means facilities for gas gathering, processing, transpoftation. and distribution, liquefaction, re-gasifica ion, storage depot, etail stations and industries that use.gas as feedstock; Utilisation Master· "Plan" means a planning document prepared by the Minister and updated from time to time indicating short) me ium and long term plan for natur,ru -• gas utiliza ion including infrastructure development to caterfor gas demand development; «Government' means the GOvert'I;nentof the United Republic or the Revolutionary Government of Zanzibar as the 22 The Petroleum Act 2015 case may be, and the corresjionding pstitutions from llMainlan~ Janzania and ' agzania Zanzibar exercising powers or performing functions in relation to petroleum upstream operations, midstream and downstream activities.; "in default" means breach of any provision of this Act or of any condition of a licence, or of any provision of a relevant agreement oj a kind referred to jn section 41; I - "gross calorific value" means the amount of heat released by a I ~- specified quantity of fuel (initially at 25A °C) once it is combtfsted and the p,roducts returned to a temperature • .of25AoC; "hydrocarbon" means natural occurrence or carbon-hydrogen I sofnetim s with oxygw compounds whether in solid, I liqu]d or gaseous state; I 1- «integrity pledge" means a ormal and concrete expression of commitment by contractors and subcontractors to abide ethical business practices and sl!Pport a national ._ campaign against corruption and prepared by EWURA and PURA~, "interconnected system" means all systems that are not non- .interconnccte t! d svi systems; "inquiry" means a process undertaken by EWURA under Cap. 414 section 18 of the Energy and Water Utilities Regulatory I • Authority Act and includes an inquiry conducted at the instance of the Minister in accordance with section 5; "Joint Qperating Agreement" mean an agreement entered I between the parties including a contractor and a National • Oil Company where applicable; "joint operations" means petroleum operations in respect o~which the National Oil Company has elected to contribute expenses or has been carried out by the contractor; "land" includes- (a) 'land beneath inland lakes and territorial waters; and (b) the continental shelf; • I - "licence holder" means a holder of an exploration or development licence granted under this Act; "licence" means a licence granted under this Act; "local content" means the quantum of composite value added to) or created in, the economy of Tanzania through deliberate No.21 2015 23 uti Iization of Tanzanian human and material resources and services ill the petroleum operations in qrder to stimulate tbe development of capabilities Jpdigenous of anzania and to encourage local investment and participation' "location' means the blocks declared under section 64; "licensee" means a holder ofa licence granted by EWUR.A.; "liquefaction" means activity o· converting gas from a gaseous a state to liquid state at a facility designed and constructed specifically for that purpose; "liquefaction facility" means a facility that a licensee uses in liquefaction process and i includes pipelines and other associated facilities; "Liquefied Natural Gas" also described as "LNG" means a natural gasl..;opredomi\lantlymethane, C] [4 that has been converted temporarily to liquid form f r ease of stprage or transportation; 'midstream activities" means activities related to petroleum ,Processing refining, liquefaction, storage and transportation to the point 01 supply or loading as a commodity; "Ministe " means- (a) in case of petroleum upstream operations midstream and downstream activities undertaken within Mainland Tanzania the Minister for the time being responsible for petroleum affairs in the Government of the United Republic' and Zb in case f petroleum ups ream operations, midstream and downstream activitie undertaken within Tanzania Zanzibar, the Minist r responsible for petroleum affairs in th Revolutionary Government or'Zanzibar; "National Oil Company" means the Tanzania Petroleum De elopment Corporation as provided under section 8; ational Petroleum and Gas [nformafion System ' also described as -'NPGISl' means a system established under section 123 "natural gas" means any hydrocarbonsproduced from the contract area which at a pressure of 1 atmosphere and a temperature of sixty degrees Fahrenheit (60°F) are in a gaseous state atthe wellhead, and include residue gas after the extraction of Iiquid hydrocarbons therefrom, both • _. -_ - • ._ mE" •I • • • 2015 associated and on- associated natural gas, and al] of, its constituent elements produced from any well in the contract area and all non-hydrocarbon substances therein; "non-associated gas" means natural gas other than casing head gas; "net calorific value)' means the amount of heat released by com busting a specified quantity of fuel (initially at 25 A °C or another reference state) and returning the temperature of the combustion products to 150 A °C; - "non-interconnected system" means a system hat is not interconnected to an system owned by a person other -- • than the owner of the.first system or an affiliate to it; "offshore" means an area extending' from the lowest limit of low - spring tides or baseline'to the ed e of the continental shelf and normally located in water depth equal to or greater than 200 metres; • I • "oil" means naturally occurring liquid hydrocarbon (crude oil) and the refined products obtained from these; , " --'" "onshore" mea s area away from the shore located on land or , water depth less than 200 metres; "operator" means a person designated as operator under a Joint Operating Agreement and executed by persons constituting contractor or operating agreement executed I by the...National Oil Company and contractor pursuant to ,. • relevant agreement; • Cap.297 • "OS " means the Occupational Safety and IIealth Authority 'established unqer the Occupati9nal Safqty and Health Act; I "participating interest" means the proportion of entitlement and .. obligations on which each party shall bear pursuant to • -• relevant agreement; "permit holder" means a holder of reconnaissance permit granted under section 36; "petroleum installation" means any installation used in oil supply chain and includes receiving terminals, oil depots, consu~er installation facility, retail outlets, refinery and pipelines; "petroleum operations" means any or all operations and activities in connection with reconnaissance, exploration, appraisal, development, production, processing or liquefaction, and includes activities in connection with decommissioning of petroleum facilities; &.1 I I • ..... • No.2! The Petroleum Act -- 2015 "petroleum prod cts" means organic compounds, pure or 25 blended, which are derived from refining or processing of • (petroleum c ude oils, biofuels or synthetic fuels and nncludes- I (a) asphalts, bitumens, petroleum coke and other residual .... products; (b) bunkers or heavy residual fuel oils for combustion engines or industrial heat processes, such as burners for boilers or heating furnaces; (c) commercial gases, methane, ethane, propane, butane and other: similar petroleum gases, biogas or mixtures of these gases, whether in gaseous or Iiquefied state; (d) gasoil or automotive diesel, biodiescl, industrial marine diesels or synthetic diesel' (e) gasoJines petr lor napths or bioethanal products; (I) kerosenes or other similar oils for illumination or ~ro combustion applications; lubricating oils. fuase oils r refined and blended finished oils; ..I (h) turbo fuels for jet propulsion engin s; and (i) other products or by-products of petroleum crude , processing having a 'flashing point lower than 120 degrees elsius, as determined in a Pensky-Martens - closed test apparatus; "petroleum reservoir" means a naturally occurring discrete accumulation of petroleum in any form hatsoever: "petroleum" means any naturally occurring hydrocarbon, whether in gaseous, liquid, solid state or any naturally occurring I _. mixture of hydrocarbons, whether in a gaseous, liquids, or solid state or mixture of one or more hydrocarbons whether in a gaseous, liquid or solid tate and any other substance and.includes petroleum that has been returned to a natural reservoir bur shall not include coal or any substance that may be extracted from coal or other rock; "petroleum data" means all da a and information relating to reconnaissance exploration, development or production of petroleum Including rocks samples. fluid samples and plans relating to pe~oleum operations· «production operatic s" include: (a) funning, servicing, maintenance and repair of completed wells, equipment pipelines, systems, facilities and plants 26 No.21 .. r The Petroleum Act 2015 - completed during development; (b) all activities related to planning, scheduling, controlling, measuring, testing and carrying' out of flow, gathering, treating, processing, transporting, storing and dispatching of petroleum from underground petroleum reservoirs to the delivery point and all other opefations necessary for production and marketing of petroleum; (c) acquisition of assets and facilities required for the production of petroleum and petroleum' field abandonment operations; "production permit" means a permit granted under .section 76; "processing'l'ineans removal of condensate, cryogenic operations to extract butanes, propanes and natural gas liquids (NGLs), impurities and water; odorize or otherwise prepare gas {ortransportation, shipping', or liquefaction; "processing facility" means a gas processing facility designed to remove condensates, extract butanes, propanes and natural gas liquids (NGLs) , impurities and water, od~urize or otherwise prepare gas for transportation, shipment or liquefaction; ''PURA'' means , 'the Petroleurn ,I Upstream Regulatory Authority established under section 11; "reccnnaissance" means gee-scientific and geo-technical activities along the preliminary evaluation ?of hydrocarbon potential in an area inc)ud~g acquisiticr; and interpretation of potential data, surface geology, geochemical data, seismic data in shallow drilling; "re-gasification" means co version of liquefied natural gas to a gaseous stat(}-at are-gas ification plant; v "regulated activity" means petroleum and naturaL gas mid and downstream activities including: (a) transportation or distribution of gas; - (5) supply of gas to end-users that arc not eligible end- - users, including the marketing of gas to end-users; (c) supply orgas to end-users that arc eligible end-users, including the marketing of gas to eligible end-users; ., - II- and (d) processing, sforage, re-gasification or compression of gas; and (ej petroleum importation, holesale business, retail business; consumer installation operations, ansit --- 0.21 ,:[he Petroleum Act 2015 27 trade, storage, refining operations and pipelines operations. • "reticulation" means division of bulk gas supplies and distribution of bulk gas to the points of ultimate consump ion and includes any other activity incidental to that; "subcontractor" means any business entity hired by conttacto 0 carry out all or a portion of petr leum operations as approved by contractor u der the terms of agreement; "shipping" means receiving, treating and delivering of gas in a foqn of Li uefied Natural Gas by means of Liquefied Natural Gas vessel or compressed natural gas to person other than the end users, and may include the act of treati g gas to meet agreed specifications before it is. delivered to the re- asification facility, an receiving and delivering compressed natural gas by shi . trucks or other means of conveyance; "specification" means chemical and physical composition, calorific values and Wobbe Index of gas that conforms to recognised inte ational standards and pressure of gas at a point of entry to shared system; "storage" means receiving, holding and delivering gas at fixed facilities ther than liqucfacrion, re-gasification or pipeline facilities; "suppl " means the sale or commercial provision of gas to an end-user or to a gas buyer for onward selling by that buyer to an end-user r other buyer: "supplier" means a person who supplies natural gas 1 an end-user or a buyer: "system" means a connected ,_, set of pipes, compressors, regulators, meters. f cilities and ancillary equi ment used for transportation, storage, distribution, liquefaction, shipping or re-gasification of gas; "tariff" means a schedule or lis of prices, rates, charges anti fees for gas servic rendered to any customer, and conditions attached thereto communicated publicly to regulate those • activities that are subject to economic regulation pursuant tq section 163; .. Cap.130 "Tanzania Bureau of Standards" also described as "T8S" means a bureau established under the Standards Act: Cap. 256 "Tanzania Petroleum Development GorpQration" also. described C.N No.143 of 1969 as "TPDC" means a corporation established by Order 28 _No.21 The Petroleum Act 2015 under the Public Corporations Act; "transportation" means delivering of petroleum, from processing re-gasification or storage facilities using pipelines at • have a q.ormal operating pressure exceeding 10 ba gauge, special.trucks, ships or any other means; "upstream activities" means and comprising of geo;hysical exploration, exploration for and developnie t of Petroleum con~ucting and operating of wells, production of Petroleum construction, operating and use of storage re ervoir, construction and operation of pipelines and other special infrastructure or Petroleum; "upstream operator" means a person who undertakes one or more upstream activities; "well" me ns a hole in land or subsoil of land, made by drilling in connection with exploration oper tions or developmen operations and shall not include a seismic short.hole; and "Wobbe Index" means a main indicator of fuel burning characteristics used to compare combustion energy output of di erent composition of fuel gases in an app iance. 'Petroleum vested 4.- L)The cnti e property in and control over petroleum in in the United R~ublic any land to which this _Act apply are vested in the United Repu lie and shall be exclusively managed by tbe Government on behalf of and in trust for the people of Tanzania, but without prejudice to any r)gh to explore, develop or produce petroleum granted, conferred, acquired or served under this Act or t e L - relevant la v i < an~ia Zanzibar. (2) etr~Lelim activities under the geographical jurisdiction of Mainland Tanzania or Tanzania Zanzibar s all not be conducted without an authorization, licence, perUlit or • l!P.provalgranted in accordance-with this Act or laws of Zanzibar as the case may be. I (3) The strategic oversight and directions over oil and gas economy shall, in case of Mainland anzania be vested ~oC binet ., • ... and rJn the case of Tanzania Zanzibar be vested to the I --.r Revolutionary Council ofZanzibar~ • I • rJll.~ , .....-----100...... -. .... .,. ~ I r - ... • I:.~. 1- II ~.. -'z• Ii - I~ III .. 'I --_--..._ t I~ '. I. f: ... I __ "._ .1 No.21 -_ Thehtroleum Act 29 .., • ..- • I- •• •• • PARTIl AD~TN1ST~TIYE"P OV,IS ON~ .. - Sub-Patrl I -_ I . General Administrative Provisions I• (a) Role of the Minister \ Role of the 5.-(1) The Minister shall supervise the petroleum industry Minister I and shall" in that respect, discharge the following functions: (a) develop and implement policies and plans; (b) granting, renewing, suspending ana cancelling of petroleum exploration and development licences after being advised by PURA; (c) enter into petroleum agreements on behalf. of the Government; (d) promote local participation in the sector; (e) attract foreign investment and technology in.the sub- sector; (f) ensure and.. sustain transparency in the petroleum subsector; (g) formulating and reviewing Government policies and regulations in the petroleum industry; (h) causing to be conducted studies necessary for administrative and management purposes in respect of petroleum sub-sector; (i) cause to be conducted inquiries into accidents or disasters caused by petroleum activities; 1- U) preparing, publishing and revising, natural gas master plan and strategies for development of natural gas industry; (k) prepare a petroleum emergency supply plan and ensure suffioient strategic reserves of petroleum and petroleum products as required by the market; (I) in consultation with Tanzania Bureau of Standards and by order in the Gazette, approve application of technical specifications, standards and quality co ntroI I' norms for protection 6f public health; safety and l'~ , environment and ensure the safety of operations in the petroleum supply chain; and - -- ... The Petroleum Act (m) perform ¥1Y other functions related to petroleum p duction activities or ...assigned to him by this Act. (2) In the discharge of functions unde subsection (1), the Minister shall have powers 0 intervene and take immediate or prompt reparation actions in any regulated activity or petrole operations including coordinating emergenoy resRonse in cases of major accidents, disasters or shortages in the petroleum supply chain. .. (3) 'or purposes 0 subsections (1) and (2), the 1\1,inister shall- "'- - (a) in respect of any strategic. decisions on strategic- petroleum investments, seek guidance and directives of the Cabinet; I!. b) consult other relevant sectoral Ministries if a duty to be - discharged is related to or poten ially affect" the functions of such other ministries. (4) The Minister shall ensure that there is a balance between petroleum domestic supply and exeort. Commissioner 6. The.Commissioner fortPetroleum .Affairs shall be the fOT Petroleum Affairs adviso of the Minister on policy,ylal1s qrtd regulations as well as the day to day administrative matters in the oil and gas subsector. • - ... (b) Oil and Gas Advisory Bureau Oil and Gas Advisory

7. There shall be constituted within the Office of the President the Oil, and Gas Advisory Bureau ~ich shall advise the - Bureau Cabiriet on strategic rna .ers relating to oil and gas economy . _-I ~ • , (c) National. Oil Company • • I Tanzania Petroleum Development

8.-(1) Tanzania Petroleum evelopment Corporation shall be the National Oil Company and shall, in that respect, undertake if II Corporation Tanzania's commercial aspects of petroleum in the upstream, midstream and downstream operations and participating interests of the Government in the petroleumand natural gas agreements. (2) The Government shall at all times maintain a minimum, of fifty one percent of shares in the National Oil Company. (3) The National Oil. Company may' form subsidiary companies 0 carry out specific petroleum operations or related activities. f No.21 ThePetroleum Act Functions of the 9.-(1) The National Oil Company shall perform the I National Oil Company following functions: (~ advising the Government on policy matters pertaining to petroleum industry; -rI' (b) participatiI,}g in petroleum reconnaissance, exploration and development projects; .. • (c) carrying ut specialized operations in th petroleum value chain using subsidiary companies; I • ., (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; •t .. • - (f) developing in depth expertise in the petroleum industry; (g) investigating and proposing new upstream, midstream anddownstream 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. (2) 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 includiQ-g 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; (c) 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; 7J1ePetroleum ACt (i) participate in the joint venture project for optimisation of shareholder value under public private artnership and strategic partnership arrangements; U) trade or supply gas in regional marker and beyond; (k) implement gas master: plan; (I) promote looal content including participation 0 Tanzanians in the atural gas value Chain; (m) hold land for key oil and natural gas projects; and (n) perfo m any other functions as the Government .,!11ay direct. (3) Subject to the provisions of this Act, the National 0il Company may allow other person to undertake reg lated activities. (4~ For the". purpose of carrying out its development activities provided.for under this A:ct, the National Oil Company shall.retain a proportion 0 funds from oil and gas7ev~nue as shaU be deter.!lri!led· the 0·1 and Gas Revenue Management ct. Instructions to 10. ;rhe Minister Play iss e yolicy di..r,ectiol1sto the the Nati0i,a1 Oil Comfany ational OU Company in respect of peiformance of its functions under this Ac Sub-Part Petroleum_Regulatory Authorities (aj Petroleum Upslream Regulatory Authority ,establishment Q.f ,U.-(l) There shall be the etrol 1l!}1 Upstream Regulatory PURj\ ~utho ity or in its acronym ~ which shall regulate and monitor the petro leu upstream sub sector for "Mainland ffllzania. (2) PNRA shall be a body corporate with perpetual succession and a common seal and shall, in its corporate name, be capable of- (a) suing and being sued; , (b) acquiring= holding and disposing of real and persona!' prof-erty; I c) exercising the powers and performing the functions conferred UPO)) i by or under this Act; " (d) ~ering into any contract 0,1' other transactioris and (e)1performing any other act or thing which a body f,}o J. ~ corporate may lawfully perform. . ... l' •.. , No.21 The Petroleum Acl 2015 33 (3) Notwithstanding the preceding provisions of this section PURA having the status of a body corporate, the Attorney General shall have the right to intervene in any suit or matter instituted by or against PURA. Functions and 12.-(1) PURA shall have the following responsibilities: responsibilities of PURA (a) advising the Minister on- (i) the promotion and bidding process of tbe production sharing agreements or other contractual arrangement; (ii) the negotiation of production sharing agreements and other contractual arrangements; (iii) the granting, renewing, suspending and cancelling of petroleum exploration licence, development licence and production permit (b) advising the Government on proposed development plans, infrastructure development, tail end plan and decommissioning of installations submitted by a licence holder. (2) In addition to the responsibilities conferred to it under sub-section (1), PURA shall perform the following functions: (a). conducting or cause to be conducted reconnaissance surveys and evaluating prospectivity of frontier areas; (b) monitoring, regulation and supervision of the petroleum subsector, including reserve estimation and measurement of produced petroleum; (c) analyzing, disseminating and issuing information relating to petroleum industry, including proposed exploration activities contained in the annual work programme, appraisal programme and production forecasts submitted by a licence holder; (d) reviewing and approving budgets submitted by a licence holder; (e) promoting local content including supporting national enterprises and Tanzanians to participate in ,. the petroleum upstream industry; Of (f) receiving and processing application for granting, .... - renewing, suspending and cancelling of petroleum 34 No.2! ., The Petroleum Act - - 2015 -• exploration licence, development licence and - production permit: .-... (g) coordinating and cooperating with other Government institutions, including other regulatory authorities responsible for monitoring, evaluation and review of petroleum operations; (h) monitoring performance of petroleum projects and programmes; (i) monitoring all phases of petroleum discovery, evaluation and delineation, commercial evaluation of discovery, reservoir performance and production to - ensure optimal rates for the commercialisation and recovery of petroleum discovery, resources using the best available technologies and field practices; G) monitoring and evaluating performance .I. in petroleum activities including investment, cost of services, regularity of out,Puts and a~ailability of crude oil and natural gas'for domestic supply; (k) ensuring compliance by industry players to the provisions of this Act and imposing sanctions~ r non-compliance or other violation of regulations, orders/rules or contract terms; (I) ascertaining the cost of oil and gas due to licence .. holder and.other contractors; (rn) maintaining continued communication and dialogue with al stakeholders in the industry including the public to ensure optimal development of/the sector; (n~ faci lita ing resolution of complaints and disputes; (0 managing national exploration and production data base and working diligently towards declassifying data as it sees fit; (15) undertakin administration of produ tion sharing agreement or other contractual arrangement; (q) make rules and guidelines on the conduct of petroleum operations and other related matters; and (r) performing any other function conferred to it by his Act. COnductor 13.- 1)'pURA shall exercise and perform its 'functions and functions by powers in a manner that: PURA •. No.2l The Petroleum Act 2015 • 35 .,•. .. (a) promote efficiency, economy and safety on the part of licence holder, contractor and sub-contractors on the safe conduct of petroletl'm operations; (b) ensure. licence holder and contractors carry out petroleum operations in ".accordance with the con~ctuaJ agreement, ~cence conditions and international best industry practice; (c) promote competition-in petroleum operations; • (d) ensure transparency in relation to activities of the petroleum sector; and (e) ensure fairness and balance of interests of the Government and other participants in the industry. (2) For the purposes of subsection (J), PURA shall conduct audit of- (a) all matters relating to assessment and collection of oil and gas revenues; and (b) costs on exploration, production, development and sale of oil and gas. Directions by the 4.-(1) The Minister may give directions in writing to Minister PURA with respect to policy to be observed and implemented. (2) The Minister may, if necessary, cause a copy of any .. .. directions given to the PORA under subsection (I) to be published in the Gazette . Directions by 15.-(1) PURA may, in writing give directions to the PURA licence holder or contractor to comply with industry practice. (2) The licence holder or a contractor shall comply with the directions given by PURA under subsection (I). (3) Any person who contravenes the provision of - subsection (2) commits anoffence . . on prosecution for an offence under (4) in the proceedings subsection (I), it shall be a sufficient defence, if the accusedi person proves that, he promptly took all reasonable steps to comply with the directions. ,. .,·.f Compliance with 1 .-(I) Where PURA is satisfied that "a person has directions ~- committed or is likely to commit an offence against this act or any other relevant 'written law it may unake a compliance order unden this section. - --... - 36 No.21 The Petroleumi Aa 2015 • • (2) Any person against whom a compliance order is made shall comply with the order. • fii.. • (3) A compJiapce order may require a person, to refrain f from conduct which ~s contravention q.~th.e provisi~.ns of this Act or any othe ~ltten law or to take factions required to be, taken in order to' coniply with this Act or any other written law. (4) A compliance order s9al1 be made in writJfg specifying the grounds {or its making and shall be enforceab e as an injunction of the l:~.ghCourt. (5) otwithstanding any other.written law-to the contrary, where an order of a certified certificate is produced or submitted to the High Court", the order or a certificate shall be conclusive proof ofits making by the Hig~ Csu t ~of the 'acts to which it relates. .. Functions of the Board

18.-(1) The BOaF~ shall be responsible for the general directions ana sliQervisio 0tJ>URA. - No.21 • The Petroleum Act .' 2015 - 37 • (2) Without prejudice to subsection (1), the functions of the Board shall be to: • (a) oversee the operations ofPURA; (b) advise tbe Minister on petroleum related policy and strategic issues; (c) review and approve business and operating plans, budgets, reports and<financia~statements of PURA; (d) establish and approve rules and procedures for appointment, promotion, termination, discipline, terms and conditions of service of the employees of PURA; J (e) provide guidance to the Director General and employees of the PURA; and (f) perform any other function as may be necessary for implementation of the provisions ohhis Act. • Disqualification 19. A person shall not qualify to be a Board member if: for appointment to tile Board (a) is a shareholder of aQYentity operating in or providing services to the petroleum sector or an employee of a licence holder and other contractors; (b) is convicted of an offence under this Act or convicted of an offence involving dishonesty or fraud by a competent court in or outside Tanzania; (c) is convicted of an offence and sentenced for imprisonment for a term of six months or more by a competent court in or outside Tanzania without option of fine; or (d) is undischarged bankrupt or has made any assignment or arrangement with his creditors. Board 10 regulate 20.-(1) The provision of the First Schedule to this Act its own proceedings shall have effect to the proceeding of the Board. (2) Subject to the provision of subsection (I), the Board may regulate its own proceedings. Committees of the 21.-(1) The Board may delegate some of its functions to Board the committees: (a) to inquire into and advise the Board on any matter relating to the functions ofthe Board; and (b) to exercise or perform other functions as directed by the Board; · 2015 Delegation oLf 22-.-(1) The Board may delegate some of its powers and power o(the 'Board functio toJ)irector General, a member of the B23,rdor any other o]licer ofPDRA. (2) person aggrieved by the decision of a person to whom functions and powe,rs have been delegated under this sectiqp may appeal 'to the'Board. ,(3) A person shall, in the exercise 9f a delegated power under this section, comply. with any directions or guidelines as the Board maYJ om time to tim~cOl rnunicate in writing. Appointment of 23.-(1) Tf re shall be a bi~ctor General, of PURA wh,9 Director General shall be appointed by the 'President after receiving recommendation from the Minister and upon advice of the Board. (2) lJ~heDirector Gene~ shall be alb accounting officer and chief executive officer ofPuM. (3) ~he Director General appointed under subsection (1) shall be a public servant ar,d a frill time employee of PURA. -_ (4) The Director General shall be a perssm of moral • character and proven integrity, and"sh'all have qualifications and experience of ten years in the fields of petroleum geosciences, petroleum .enginecring, petroleum management, petrole m -law or petroleum taxation and finarice, of \¥bieh five years shall be at 'managerial level. (5) A person shall' ot be appointed as Director General if that person is: (a) a shareholder ot any entity operating in,.or providing • services to the petroleum sector; (b) a member of the board or an employee of a licence holder; (c) an undischarged bankrupt; (d) convicted Sf an offence under this Act or convicted of • an offence involving fraud or dishonesty by a competent court in Tanzania or outside Tanzania; (e) convicted ,{[or an offence and sentenced to imprisonment for a term of six months or more .by a The Petroleum Act 2015 competent court/in Tanzania 0 outside Tanzania; or (f) a person holding political position. (6) Where a person referred to in subsection (5)(1) is to be appointed as a Director General, such person shall resign from his office before assuming the office of the Director General. Functions ofthe 24.-(1) The functions of Director General shall be to: ! Director General (a) initiate and implement policies and programmes of rUM and report to the Board; • (b) ensure that the agreed objectives, targets and service standards of the Board are met; (c) manage the property and employees ofPURA; (d) develop and oversee an operational plan so as to guide PURA in the performance of its functions; (e) co-operate with lead agencies and organisations in matters relating to petroleum upstream and other related matters; (i) develop an economic, efficient and cost effective internal management structure; (g) provide advice as required on all matters falling within the area ofPURA's responsibility; ••_ .... _ (h) perform functions assigned to him by the Board; and (i) perform any other functions deemed necessary for .. implementation of the provision of this Act. (2) The Director General shall, in the performance of his functions, be answerable to the Board. Tenure of the 25.-( I) The Director General shall hold office for a period office of Director General of five years and may be eligible for re-appointment for one more term. (2) The Director General shall cease to hold office if: (a) he resigns; (b) he is declared or become bankrupt, insolvent or bas made an arrangement with his creditors; or (c) he is convicted of an offence and sentenced to • imprisonment for a term of six months or more with a ., competent court in or outside Tanzania without the ,. option of a fine. (3) The Director General may be removed from office for: (a) abuse of office; .....--.. - • 40 • lJhe Petroleum Act - • '2015 (b) inability to perfo,GTI functions of his-office arising from infihnity of body. or mind; (e) misbehaviour or nisconduct; or Cd)incompete2ce. Cap. 298 (4) Without prejudice to subsectidn (3),.the procedure-for removing tliq Directot General from office shall be as prescribed in the ublic Service Act. Other officers and 26.-( 1) The Board may from time to time engage staff and employees of PURA employees to the ser.vice of PURA on such terms arid conditions as it think fit for better implementation of its functions. (2)" The terms and conditions' of service of staff and - ..... employee of PURA shall, subject to approval by the Treasurer Registrar, be as prescribed in the letter of engagement or employment. Establishment of 27.-(1) Whenever there is to be appointed a member o~the Nomination Committee Board, the Minister shall establish a Nomination Committee composed of- (a) the Permanent.Secretary 'Of the Ministry responsible for petroleum affairs, who shall be a Chairman; ~ (b) one representative from the Ministry responsible for 'publjc service' (c) one representative from the Ministry responsible for environment; (d) one representative from I the Ministry responsible for occupational, safety (2) The representatives from institutions referred to under subsection (1) (a) to (d) shan be of the rank of assistant director or above. (3) Allowances, fees or other expenses incurred by the - Functions and Nomination Committee shall be paid by PURA.

28.-(1) The functions of nomination committee shall be to ... meetings of nominate person for appointment as members of the Board. t . Nomination .-.. - Committee (2) The ~omination Committee may take such actions as necessary to identify and attract the best candidates. (3) Meetings of the committee shall Deconvened by the Chairman at such times and places as the Chairman may The Petroleum Act 2015 41 •'0 specify in the notice of the meeting •fill- •• • (b) Energy and Water Utilities Regulatory Authority Powers of 29.-(1) The Energy and Water"utilities Regulatory EWURA Cap.414 Authority established under the Energy and Water Utilities Regulatory Authority Act, in this Act invariably referred to as "EWURA", shall exercise regulatory powers in respect to mid tream and downstream petroleum and natural gas activities under this Act. (2) Without prejudice to subsection (1), EWURA shall have powers to- (a) grant, refuse, renew, suspend and revoke licences to entities undertaking or seeking to, undertake mid and downstream regulated activities; and , , (b) determine and enforce tariffs, rates, charges and fees , payable by a licensee in respect of regulated activity. Functions and 30.-(1) EWURA shall perform technical, economic and duties of EWURA safety regulatory functions in respect of petroleum activities. (2) Without prejudice . to the 1,general functions conferred upon EWURA under subsection (I), EWURA shall- (a) issue, renew, suspend or cancel construction approvals and operational licences; (b) monitor petroleum quality and standards; (c) initiate and conduct investigations in relating to technical, economic and safety issues in the delivery of service to consumers; (d) give any necessary directions to any person granted a licence or approval under this Act; Cap.414 (e) charge and collect fees and levies for petroleum sector in accordance with the Energy and Water Utilities Regulatory Act; ('0 approve applications for tariffs and prices; (g) prescribe code of conduct in respect of person who is " providing services under this Act; (h) prescribe technical, economic and safety standards of services and cause them to be published in the Gazette and in at least one Kiswahili and English newspaper of wide circulation; .. 42 Ng.21 The Petroleum Act 2015 (0 monitor environmental and safety impacts JI'!. the petroleum services under this Act; G protect: (i) customers, suppliers and Governmen 's inferes s; and (ii) the public from dangers arisi g .trom regulated aotivities; 0<) promote: (i) access and affordability of gas services; (ii) leas -cost investment and security of supply for benefit of customers; (iii) improvemen in t~e operati J¥ll and economic efficiency of petroleum industry and efficiency in the use of gas; (;0 appropriate standards of quality, reliability and affordabi lity of petroleum; (v) ealth and safety in the working environment of persons employed in the petroleum industry; (vi) the use of local goods and se ices pr.9duced and provided in Tanzania' (vii4 maximum participation of Tanzanians in every part 0.6 theJletroleum value chain; (viii) efficiency, economy and safety in gas activities; and (ix competition in petroleum activities in areas open for investments. (I) evaluate and monitor impact of activities of the petroleum industry on the environment. (m)ensure: i) adequate provision is mad for effective Asset Integrity Management by operators of all petroleum infrastructure; ii2 each licensee prepares and tests emergency response- plans; (iii) (i-ansparency in relation to the activities of th petroleum sub-sector; (iv) .... fair balance of the interests of the public and other participants in the petroleum sub-sector. (n) gather information relating to regulated activities; (0) undertake or cause to be undertaken: .. .• - - • - , •.JI.- _ ... - J I........ ...- No.2! ThePetroleum Act 2015 (i) investigations on incidents that result into dawage of petroleum infrastructure, inju r loss of life or.property; i(ii) investigations and enquiries into" activities of licensees; cp facilitate resolution of disputes between licensees and .. customers; (q) in consultation with TBS, approve official denomination, technological specifications, standards •• • and quality control norms for all gas im rted into or produced in Mainland Tanzania; and (r) discharge any other functions incidental or ancillary to the discharge of its duties. (3) EWURA shall consult Ministers responsible for •• . national security, lands, environment or petroleum operations before undertaking any duty in relation to the national security, compulsory acquisition of land, preservation of environment or import, export and trading in petroleum. General principles 3J.-(1) EWURA shall discharge its duties and powers in a governing r.WURA transparently, objectively, reasonably, non- discriminatorily and in a manner that promotes fair competition. (2) For the purpose of sub-section (1), EWURA shall submit to the Minister: (a) the annual report related to its activities; and (b) oth~r reports of its activities relating to oil and gas industry as the Minister may request. ...~ PART III UPSTREAM PETROLEUM OPERATIONS Sub-Part I Management of Petroleum Areas and Reconnaisance Permits (a) Management of Pelroleum Areas Graricularion of 32.-( 1) PURA shall prepare a reference map which may be the earth's surface and constitution revised periodically, showing areas of possible petroleum of blocks accumulation divided into graticular sections, on which each shall "e constitute a block. (2) For the purpose of this Act, the surface of earth shall be deemed to be divided into sections by- 44 No.21 The Petroleum ,ACfA 2015 (a) meridian 0 green 'cll and meridians that are at a distance from t at meridian of five minutes, 0 multiple of five minutes oflongitude; and (b) portions of two of those meridians that are at a distance from the equator of five minutes, or a multiple of five minutes, of latitude, each 0 which 's bounded by- (i) JPortions of two of those meridians that are at a distance from each other of five minutes of longitude; and (ii) portions of two of tliose parallels 0 latitude that are at a distance from each other of five minutes of latitude, and each of such section const] utes a plQck. (3) Where an area in respect of which a licence is in force includes one or mor than ne portion of a block constituted in accordance tQJsubsection (2) the area of: (a that portion shall constitute a block: and (b) the remaining portion of the first-mentioned bloc not including any part of that area in respect of Which a licence is in force, shall constitute a block. (4) Where Iicence ceases to be in force in respect of an area referred to in subsection 3 (a), the Minister may. by noti e in iring, determine the area to be amalgamated with another block, being a block: (a) constituted as pr vided for by this section; (b) forming part of the graticular section of hich the area forms part; and (c) that is or are either- (i) a bl ck in respe t ofwhi h a licence is in force; r (ii) a block constituted under subsection (3)(b). (5) Where a determination is made under subsection (4)- (a) both the area and blocks of which are subject of determination, 'cease 0 constitute separate blocks and their areas together shall constitute a single block; and (0 in respect of the area and a block of which there is a licence in force, the block constituted by determination shall be a blOCKfor the remainder of the te. of that icence. (6) In this Act- - _I~ I. a 'I lilt _ The Petroleum Act (a) a refere9.ce to a block constituted bY<'a graticular section includes a reference to a block that is .... constituted by the area of a part of a graticular section; .. and - ~ •• .. • • (b) a eference to a graticular section that constitutes a 'block includes a reference to a graticular section I~(I which part only of it constitutes a block. (7) The reference map prepared pursuant to subsection (I), shall be deposited and made available to the public at the offices ofPURA and in its website, (8) Upon publication of the reference map, any reference in a reconnaissance permit, exploration licence and development licence granted pursuant to this Act to an identified block.Ishall be treated as a reference to the block so identi tied on the reference map. (9) PURA may certify the reference map prepared under sub-section (1) to be' a true copy, and such copy may be admissible in proceedings before any court or tribunal as evidence of the contents of the reference map. ! Opening, 33.-(1) A decision to open an area for petroleum activities redefinition and closure of shall be made by the Minister upon approval of the Cabinet. areas (2) Prior to opening of areas for petroleum activities, the Minister shall, in collaboration with relevant authorities and in consultation with the Minister responsible for environment, undertake evaluation of various interests in the areas which shall be contained in an the evaluation report. (~) The evaluation report shall include- (a) an assessment of the potential for petroleum accumulation in the area; and (b) a strategic assessment of the social and environmental. impact of the potential petroleum activities on: (i) national development; (ii) local communities; (iii) environment and risk of pollution; .. , (iv) trade and tourism; (v) agriculture and fisheries; (vi) potential economic and social impact of the ..... { petroleum activities; and (vii) any other activities related to petroleum industry. The Petroleum Act - ._ 2015 (4) The Minister shaU publish the evaluation report in the, Gazette and website of.the Ministry and PlJ:RA. (5) The e aluation reR-o.rtshall specify areas proposed to. be o.P~ed for petroleum activities, nature and extent of petroleum activities, and effect of the petroleum activities on relevant interest activities and communities. (6) An interested person under this section may submit views and comments o.n evaluation report to.the Minister within a period of sixty days from the ate of -publication. (7) The Minister shall, after taking into. consideration on the report and any views o.f an interested person, submit recommendation to the Cabinet for apprDv'iilon whether 0. no. to open an area for petroleum activitie . (8) The ~inister spall submit to. the Cabinet for information, a report detailing a eas to be opened up for petroleum activities, evaluation.and assessment conducted based on the impact on social and environment (9) The Minister shall publish the decision in the d'azette, website Df the Mini stry andfp1JRA or in any other manner as the Min ister may determine. -I (10) The decision to redefine boundaries or close an area for petroleum operations shall be made by the Minister. (11) Sub section (1) to (9) shall apply similarly o.ILthe decision of the Minister to. redefine Dr close an area for petroleum operations except the period of receiving views from the public under sub-sec ion (6) shall be at least forty-five days. 622 Where a decision to redefine the bourtdaries or to. close an open area have detrimental effects to another area - covered by a licence existing at the time of the decision, the • licence holder shall be consulted by PlrRA before the decision of the Minister. •• Application for (!?) Reconnaissance Permits -

34.-(1) A person intending to carry out reconnaissance reconnaissance surveys shall ~ply toPURAJ"o.ra reconnaissance permit. • permit (2) An application for a reconnaissance permit shall be in I • - a manner prescribed in the regulations and accompanied by the prescribed fee. I (3) A reconnaissancepermit shall be for geographically delineated area. . I I - -- I _ No.2) The PetrollfPl1'!.Act 2015 47 (4 Reconnaissance permits are non-exclusive and may be issued to differen persons in respect of different reconnaissance activities in the same area. (5) A reconnaissance permit shall state: 8). d e of issuance of pe it; (b area to which the permit relates; (c) type of data or which the permit is issued; (d) conditions 00 which the permit is issued; and (e) duration of confidenriality of data collected. Duration of 35. Subject to this A t, a reconnaissance permit shall be - reconnaissance permit granted for a period of not more than three years unless otherwise determined by PURA. Grant of 36.-(1) PURA may, on application duly made, issue the reconnaissance permit reconnaissance permit within ninety days after receipt of the application. 2) PURA shall publish in KiswahiJi r English language all reconnaissance activities in a media or local newspaper widely circulated in Mainland Tanzania . • Activities 37.-(1) A reconnaissance permit shall apply to a particular authorized by reconnaissance type of survey and may permit shallow drilling for data permit calibration purposes. (2) Where reconnaissance permits are issued to two or more persons ill the same area, the activities of one permit holder shall not be detrimental to the activities of another penn it holder. (3) Where reconnaissance activitytJis carried out in an - - .. area that is declared to be a habitat for wildlife, marine park, game reserve and any other reserved area' for such purposes, such activities shall be conducted by taking into consideration breeding and migratory patterns of the wildlife in that area. ~ .. Commencement of reconnaissance

38. A person shall not commence reconnaissance activity activities unless that person haScomplied with: (a) the relevant statutory requirement on environment .. Cap.191 protection prescribed Management Act; and in the Environmental (b) any other relevant laws. • ... j - ( ... .<If,." .. _I - ~. 48 No.21 The Petroleum Act 2Q15 Termination of 39. PURA shall terminate a reconnaissance permit if: reconnaissance permit (a) the permit holder-fails to perform obligations issued in the permit or any other law; (b) there is an occurrence of an eve t offorce majeure de nitive nature, which make it impossible for permit .. holder to fulfil his obligation. Waiver 40. A reconnaissance permit may lapse on waiver by a permit holder if he performs Ie aJ 'Obligations and duties imposed by the permit.

41. The reconnaissance permit shall remain valid until: (a) expiry of terms and conditions provided for in the permit; (b) eXtinction'of permit holder; and (c cancellation of the permit. Ownership ofdata 42.-(1) Notwithstanding the right of a permit holder and PU to use any data and information data, and information acquired. in the course o~ petroleum operations covered by ~eco aissance permit hall be the property of the Government. (2) PURA may, in ~ prescribed jnanner, authorise the permit bolder to sell data and information referred to under sub- section (1). (8) Wbere the ,Permit>holder sells data and information referred to under the sub ection (2), tbe net proceeds from such --,,': rr·- sale shall "- be shared in a manner prescribed in the rules made by PURA. ._ •-• ". Sub-fart II Petroleum Rights, Licences and Agreement (a) Petroleum Rights and Conditions • Power 10 grant petroleum rights "-

43.-(1) The Minister shall have power to grant licence under this Act. (2) In exercising powers c nferred under sub-s ction ~l) the Minister shall take into consi eration the advice of PURA. ~ , Bxclusive rights 44.-(1) The petroleum operations rights shall be granted to -- conferred to the '''National Oil the National Oil Company. Company ...I • • II No.2! ThePetroleum Act 2015 (2) The National Oil Company shall have exclusive right over all petroleum Qghts granted under this Part. (3) The licence granted to the National Oil Company shall not be transferable to anv other person. (4) The" Natio~al ou Company may, subject to the Minister's consent and on advice by PURA, enter into partnership with a Tanzanian or a foreign entity through an open tendering process or a direct award of a block. (5) The licence granted under subsection (1) shall require •• the National Oil Company to maintain a participating interest of not less than twenty five per cent unless the National Oil • Company decides otherwise. -- - (6) A company wishing to carry out petroleum operations .. in Tanzania outside the scope of a reconnaissance permit shall do so together with the National Oil Company. Persons who may pan ncr with the National Oil

45. A person is qualified to enter into partnership with the National Oil Company if- • Company (a) is a body corporate registered under the Companies Act or any other written law' and • (b) such entity is of recognized capacity, technical knowledge and financial capability . .• Consortia and 46.-( I) Where two or more applicants jointly intend to joint operations apply for an award of acreage, the applicants shall enter into an agreement for co-operation for petroleum activities which .shall be submitted to the Minister as a condition for entering into I agreement (2) The Minister may require from the applicant, information of a joint venture composed of spcci fie companies as ~ condition for award of an acreage, Agreement in 47.-(1) he Minister may, upon the advice of PURA and respect to grant of right on behalf of Governmeiit, .enter into an agreement with the National Oil Company and its partners with respect to all or any of the following matters: (a) grant of a licence; (b) conditions for granting or extension of licence; or (C) any other matter incidental or connected to paragraphs (a) and (b). (2) Notwithstanding the provision of subsection (l) the Minister on behalf of the Government shall not enter into an .. • • • c-------------~ 50 The Petroleum Act 20}5 agreement without prior approval of the Cabinet. (3) J!QEA shall develop and submit to the Minister a Model of Production Sharing Agreement or any other model agTeemeJlt'to be approved by the Cabinet, (4) A model production sharing agreement approved by • the Cabinet shall be guidance. in negotiations of any agreeme t under this section. Tendcring process 48-(1 Petroleum agreem...ents shall not be entered unless a transparent and competitive public tendering process is completed. 2) The Minister shall cause to be published in a newspaper of wide circulation, invitation of tender or subject to subsectio~(3) the intention to initiate direct negotiations. (3 Where all or part of the area tendered in a competitive public tender process for an ~a ard qf an agreemen bas not become effectiye, and it is for the public interest, the Minjs~er may, upon the advice of PURA and approval of the Cabinet, initiate direct'negotiations wit~ qualified and eligible company. (4) The Minister may, by regulations prescribe the ranner of conducting tendering process. ~ Power ofMitllstcr 49 -(1) PURA may on application for grant of licence, and PURA to obtain require the applicant to furnish to PURA within the time specified information in the notice - (a) urther information in connection with the application as PURA may reasonably require; and (b) it the applicant is a c~mpany 6r corporation, such formation as PURA may reasonably require to enable p'\URA to ascertain the controlling p iwer whether direct or indirect in the affairs of the company or corporation incorporated within or outside Tanzania. (2) The Minister may cause investigations, negotiations or consultations to 'be under takenfor purpose of disposing an application for grant of licence. (3) The Minister may authorize PURA to conduct or carry out on his behalf any investigations, neg tiations or consultations referred to in'subsection (2). .. • -- - . t ~ • I _ .... .:-t No.21 The Petroleum Act 2015 Reservation of SO.-C]) The Miqister may, by otice published ~ the blocks Gazette, declare certain block to b~ eseryed fo public interest-or to be awarded direct to the ational Oil Company. .. , (2) JOe block reserved "Under subsection (1) shall not be • subject to the grant of a licence unless-the declaration is revoked, (3) The Minister may, by otice published in the Gazette, • vary, amend or revoke any otice jiublished'under this section . (4) WQere a licence is awarded to the- National on Company under su6section (1 the tendering process shall not applY. (5) The power under subsection 1) or (3) may be exercised by the ~er either OD his own motion or upon the advice ofPURA. (bFPetroleum Licences and Agreements (i)flxploralion Licence • Application for petroleum

51.-(1) The National Oil Company shall apply for a petI;Qleum,e pJoration licence to the Minister in respect of any exploration licence block. (2) An aRlllication made under sub section (1)- (a shall be accompanied by- (i) the applica t's proposals tor w.ork and .. minimum expenditure in respect of tbe block spec' ed in the application; (ii) particulars of technical and petroleum industry •I qualifications of the applicant and his -• • employees; (iii) particulars of technical and petrbleum '~dustry •-- resources available to the applicant; -- .. - • (iv) particulars of kinds of inancial ' resources available to the applicant; including capital, credit facilities and'guarantees; and {v) proposals on the local content plan related to the training and employment of citizen'S of • - .Tanzania. (b) Shall be in respect of not more than forty blocks; .. (c) may set out any other matters that the al?plicant wishes the MInister to consider. ThePetroleum w. Act 2015 (3) Notwithstanding the provision of subsection (2) (b), the Minister may consider aru appli cation in respect· of more than forty blocks, and not"ex;.cee(ii~g'eig, ty blocks if the Minister is satis~ed that spe_cia. c~cumsfances e ist which required him to consider-the application. • . (4) The Wovisions of sub section (2 (a) hall apply during me: tendering ,grocess oft open acreage in a manner prescribed in the,[fe.gulatio~. (5) Blocks specified in tbe~p'plication for grant of an explor;_ationlicence shal be constituted by ~aticujar sections hat- W form a single area; and (b) each graticular section in that area has a side in common with tat least one other graticular section in that area. t Grant or refusal" 52.-(1) The-Minister may, upoIl the advice of eURA, of application for exploration grant or refuse to grant fan exploration Iicence in respect-of any licences block constituted b land to which this Act applies. - (2) An exploratio licence shall not be granted in respect of a block that is, at the time the application for licence is made- a (a) comprised in icence; or (b) reserved'by declaration under section 48. Notice of decision 53.-(1) Subject to subsection (2), the Minister shall within on application.for exploration sixty days after the date of receiving application .potifY \the ..-, • - licence applican of his decision to giant or refuslj to grant an application. • .- (2) TheNfinister sh~l1give rea~ons for refusal,or conditions fo grant of a licence . - Contents of 54. An exploration licence shall- I ,_ exp.loration licence •• . (a state the date oft~le grant ,of licence; (b) identify the exploration area; I (c) state the termsof'Iicence; (d) identify the ,~ontractor and operator in cases of partnership; and (e) state the conditions referred to in section 54 on which I- the licence is granted. -' • - - -- ..I No.21 ThePetroleum Act Rights and, 55.-{1) A holder of exploration licence shall have responsibilities oonferred by exclusive right to explore petroleum in the exploration area, to exploration carry out operations and execute works as he considers necessary. ... licence (2) Pursuant to the>agreement entered under section 45, the licence holder may assign the contractor exclusive rights to conduct exproration activities in the contract area, except where joint o~rations have been ~stab~ished in the agreement, tb contractor shall have exclusive right to conduct petroleum ope ations in the contract area in accordance with the provisions of this A:cton behalf of the licence holder. , (3) Subject to subsection (2), obligations of the licence bolder under this Act shall be considered to be obligations of the ". contractor. Conditions of. 56. Subject to this Part and to any conditions specified in exploration licence the licence, an exploration licence shall be valid- (a) for a period of not exceeding four years commencing from the date on which the licence is granted; (b) in case the Iicence period is extended, -for a further period, not exceeding three years in respect of a first . extension, and a further period not exceeding two .. ~ years in respect of a second extension; and (c) in case the licence is extended under section 57, for a further period specified by the Minister upon grant-of ... ~ .. the extension . Application for 57.-( I) The holder of an exploration licence may apply for extension of exploration the extension of the. licence in respect of any block in, the licence exploration area. (2) An application under this section may be made twice in respect of any exploration licence. (3) An appl ication under this section- (a) shall, subject to subsection (4), be made not later than ninety days before the day on which the licence is due to expire; (b) shall be accompanied by- • (i) particulars of the work carried out in, and amount expended in respect of exploration area ._ .. - during the term of the licence and including the date of application or where the application is for second extension of licence, during the 54 No.21 fhe Petroleum Act 2015 period of the first extension of the licence and including the date of-the application; and .. (ii adeq ate proposals of the applicant for work and minimum expenditure in respect of the bloc identified in the application during the • .. extension period applied for; and ~c) may set ou any other matters that the applicant requires the Minister to consider. (4) The Minister may accept- an application for extension of an e~loration licence later than ninety days and not,' any case, after the.date (expiry of licence, (5) The requirement of subsection (3)(b)(u) with respect to adequate proposals shall be deemed to have been met- if the proposal accompanying an application complies with requirements in respec of wor and expenditure contained jn a relevant agreement relating to grant 0 licence. Application for 58.-(1) Subject/to a relevant agreement in respect ofsgrant extension to be in respect of reduced of licence, the nu ber of blocks of which an application for area extension of an exploration licence may be made, shall not exceed the number that is the sum 0(- (a nUIl!ber of blocks subject to the licence that at the date on which the licence would expire, if not extended, were a location; and (b) one half of the number 01' blocks in respect of which the icence was issued or last renewed. (2) Subject to a relevant agreeme t with respect to grant of licence, the blocks specified in an application for the extension of an exploration licence shall be blocks that relate to graticular sections that- . . (a) constitute a single area or not m6re than three ~ - discrete areas; and (b) each graticular section in each area has a side in common with at least one other graticular section in that area. (3) The area to be relinquished shall be contiguous and I ;;l co~,pac and of the size and "'shape that permit ..the effective '. --- ..... -• • conduc of the, petroleum activities in the relinquished area unless " otherwise determined by the Minister after consultation With .' . .. • PURA. • I _I. • • • ~ - II - ;,- -:r! -._. ......._IL ... __ No.21 The Petroleum Act 2015 Grant or refusal 69.-(1) The Minister may upon advice ofPURA, grant an for extension extension of the licence on the application duly made for extension of exploration licence. (2) The Minister may, upon the advice of PURA, refuse to grant the extension for an exploration licence if- (a) the holder o( the licence is i default unless the Minister considers that special circumstances exist which justify the granting of extension notwithstanding the default; or (b) th proposal with respect t work and expenditure during the extension which accompanying the application is not ade uate. (3) The Minister shall not allow variation to the work period, unless the Ministe~ upon the advice of PURA considers that special circumstance exist which justify the variation of the work period. (4) The Minister shall not refuse to grant the extension of an exploration licence on application "unless- (a) he has given to the applicant notice of his intention to do so by staring: (i) in the notice, particulars of the grounds for the intended refusal; and • (ii) a date before which the applicant may • .. take remedial action or make • representations in relation to that ground; and -• (b) the-applicant has not remedied the default-or mad appropriate amendments ~ his application or made representations which, in the opinion of the Minister, remove the ground for the intended refusal. (5) The Minister shall notify the applicant in writing of .. his intention to grant extension for exploration licence. (6) The notification to grant extension under subsection '. • (5) shall contain particulars of any variation of the conditions of ~-. - ....!-- licence which are required to give effect to the application for extension including amendments to the grant of extension. (7, Upon receip of the notice under subsection (5) from the Minister, the applicant shall within sixty days respond his willingness to accept htension and where he fails to do so, the extension shall lapse. .. .2015 (8) ~ere- (a) an application for the extension of an exploration Iicence.has been duly made; and (b) the licence expires- - .. w·..-... . -I - (i) before the Minister grants, or refuses to grant the extension of the licence; or (ii) before the application lapses under sub-section (n , .!lle licence shall be deemed to continue in force until the Minister grants or refuses to grant the extension of licence, • - I or lapses of application, whichever, Wst occurs, unless the .lr- • licence is cancelled or the application for extension is withdrawn. • IT extension of an 60.-(1) Wbere- exploration licence in respect (a) petroleum is discovered in an exploration area within of location the period of two years before the date of expiration ..... of an exploration licence that has been extended twice under section 57; and • (b) the Minister has made a declaration of a Iocation • • under section 64, or the holder of the licence has nominated a block under that section for purpose of a :.. declaration of a location, the Minister shall, upon advice-of PURA, grant a further extension of the licence in respect of the block to which paragraph (b) applies. ' .. (2) A further extension granted under subsection (1) shall be- (a) for a period nor exceeding three years; and - (b) subject to any conditions that the Minister consider necessary and specifies in the licence. (3) Where, before expiration of an exploration licence that included blocks that constitute a location, the holder of th~ licence- (a) makes application for an extension or a further extension of the licence in respect of some or all blocks; and (b) satisfies the Minister that- I (i) the blocks contain all or part of a petroleum t: reservoir, and •• ~- I I I I (ii) the construction - • establishment 57 and operation of facilities for the recovery of petroleum is not economically feasible, .. the Minister may upon the advice o PURA, grant an extension or a further extension for the period not exceeding one year. " Conditions of 61.-(1) In addition to conditions confained in an grant of exploration exploration licence under section 67(1), or any extension of that licence licence under section 57 or 58 the holder of licence shall: _- • • (a) not later than one month before the anniversary in any year of the grant of licence, submit to 'eURA in detail an adequate programme with respect to work ....... rr •- and expenditure to be carried out or made in the year of the licence immediately and theyrogrammc ...."... ... so submitted shall be considered to constitute a requirement of the licence with respect to work and expenditure; and (b) in relation to exploration area and subjec to subsection, (3), meet the requirements of .s licence •• and - in respect to work expenditure. (2) The requirement of subsection (l)(a) shall be adequate and be deemed to have been met where the programme submitted satisfies the requirement related to work and expenditure w contained in a relevant agreement in respect of grant of licence. • ... .__ (3) The Minister may on application made to him by tl)..e holder of an exploration licence and after being 'advised by .;. PURA, limit, reduce: vary or suspend any obligation arising pursuant to subsection (I )(b), either conditionally or unconditionally. (ii) Discovery of petroleum • Discovery of petroleum to be norified 62.-0) Where petroleum is discovered in an exploration area. the holder of licence shall- - (a) within forty eight hours after discovery, submit in ._ I'" - - writing a notification of discovery to the Minister and PURA before SUbmittingsuch noti Iication to the third party; (b) submit a draft announcement to the Minister; • • The Petroleum Act 201S c) not make any announcement with respect to discovery before the announcement of the Minister; (2) Upon recejpt of the draft announcement submitted under subsection (l)(b), the Ministe shall within five working Clays after consultation with, ,PURA consen on the proposed announceme t, 3) he inister shall within two \VO ing days after being advised by URA, ake or cause to be made an a nouncernent. (4) Within a period oft irty days after the date of the discovery, furnish to PU particulars in writing of the discovery and within ninety days from the date of discovery, state whether the discovery merits the appraisal or not Directions of 63.-(1) Where petroleum is discovered in an explorati09 PURAon discovery of area on merits appraisal PU may, by notice in writing served petroleum on the licence holder, direct the holder of licence to do such things within the period specified in the notice as PURA thinks necessary to ascertain chemical composition and physical properties oftbe petroleum. •- .. (2) Subject to silbsection (3), where petroleum is - discovered in an exploration area, the Iicence ,holder shall take all •.<ii _. -- - steps to ascertain the quantity of petroleum in the - . • , (a) petroleum reservoir t which th discovery relates; or (b) if part only of that reservoir is within the exploration - .. area, in the part of that reservoir that is within the I• • -•- •• exploration area. (3) PURA may exempt, wholly or partly, the requirement ~ •I , referred to under subsection (2) the holder of a licence either unconditionally or subject to conditions specified in th'e notice exemption. (4) A person who fails or refuses to comply with the I directions given under subsection (I) commits an offence and u shall be liable on conviction to a fine not Jess than fifty million I shillings or to imprisonment for a term of three years. (5) Within the period provided for by PURA under I subsection(l), a licence-holder shall notify the Minister in writing whether or not there is discovery of crude oil or natural gas and shall: (a) ai the same time notify PURA whether the discovery is of eventual commercial interest or of present • - - ,.. l1yet[olewn Act • 2015 59 commercial interest; (b) inform PURA that in its opinion) by using the best • international petroleum practices, the discQ_verY is not of potential commercial interest as a standalone or as part of an aggregated production, (6) Subject to subsection (5)(b)1 where the holder of a licence finds that the discovery is not of potential commercial interest.ithe holder of a Licenceshall relinquish such discovery by comprising the geological feature as outlined by relevant seismic data in which the discovery is located. Declaration of 64.-0) Where petroleum has been discovered in a block location within an exploration area, not being a block that is or is included in a location, or is not a block that has a side in common or touches the discovery block, PURA may upon receipt of a request - from the licence holder declare by a notice published in the - Gazette- .- (a)discovery block and not more than eight adjoining blocks within the exploratio area that are no~nated by the holder; and "(b) in any other case, the discovery block and adjoining . blocks not exceeding eight in number as PURA thinks fit to be a location for the purposes of this Act. • (2) At the request of holder of exploration licence J>URA - may, by notice published in the Gazette- -- (a) include in a location, additional adjoining blocks; or (b) revoke the declaration of a location in respect of one or more than one block, provided that, such location shall not at any time include more than nine blocks. (3) The application under subsection (1) shall be made within twelve months after the date of discovery. (4) For the purposes of this section- (a) "block adjoins a discovery block» means the graticular section that constitutes or includes first .. , mentioned bloc that has a side in common with or touches- (i) discovery block; or (ii) any block that has a side in common with or touches the discovery block; , 60 ThePetroleum Act 2015 (b) "discovery block" means a block' in which petroleum is discovered. • Appraisal and 65.-(J) Where a location has been declared, PURA may, investigations of locations by written notice served on the holder of an exploration licence, - direct the licence holder to carry out, within a period specified in the notice of not less than two years, such appropriate investigations and studies that PURA considers necessary to assess the feasibility of the construction, establishment and I operation of facilities for recovery of;etroleum from the location. - (2) The investigations and studies referred to in subsection (1) may include- I (a) appraisal program for purpose of delineating the reservoir to which the discovery relate in terms of thickness and lateral extent and estimating the quantity o~recoverable petroleum in the reservoir; - (b) technical and economic feasibility studies relating to recovery, processing and transport of petroleum from the location; (c) studies of proposed sites for facilities that are required by industry referred to in subsection (1); - • (d) studies of port or berthing facilities, and roads, pipelines or other transportation facilities; (e) investigations into- t' (i) suitable water facilities and reticulation systems for industrial and town purposes; (ii) location and design of a suitable airstrip and associated landing and terminal facilities, if so required for that industry; and (iii) generation and transmission of electricity as so required for that-industry; (f) investigations into development, if so required, of a suitable town for the industry referred to in subsection '.. (1), including the design of housing facilities and associated civic, cultural and social facilities; (g) investigations of any other works, services of facilities that may be required for that industry in relation to the location; (h) studies of future "labour requirements for the industry; ., and , I .. No.2L 61 (i) physical im act studies into the p,ossible effects of that industry on environment. (3) )be holden.of an exploratio icence shall fUr:¥sh to P"ffRA, within the peJiod specified ip the notice under subsection (11, reports, analysis and data resulting fto in estigations and stuc,!jescarr~d out under tlJ.i.ssection as PURA may b:t written notice on the holder require. (iii) Development licences Apppcation for 66.-(1 A holder of an exploration licence whose licence is development l.!.sence in, force in respect of blocks that constitute a location may, within two years in case of crude oil aqd three years in case of natural gas from the date ~lJ ,which the blocks were declared to be location o~. such further period as the Minister al ows, make application for developme t licence in respect of such blocks which contain petroleum reservoir or a part of a petroleum reservoir. (2) The holder off a,,- exploration licence may make applica ion for devel pment li1ence in r spect ofan§ block within exploration area i~- (~he satisfies the inister that the block contains petroleum reservoir or part of a petroleum reservoir; and .. (b) the block does' not, at the time of making of applica ion which consti te a location. (3) ~ person who ISnot a bolder of exploration licence in respect of a block m~lymake application of dev lopment licen e in respect of a block if he satisfies the.Minister that the block - (at contains petroleum reservoir or part of a petroleum reservoir; and (b) i~ not a bioek in respect of whic tile exploraiiop licence or a development licence is in force at the time ofilie application. Contents ot. 67. :t\n applicatj£,n for develo ment licence shal be application for development accompanied ~by a Development Plan which shall contain' licence particulars of- -- (a) applicant's proposals for development and production of re~er\oir, including method" for use or disposal of associated gas; _I - • • • No.21 TheRetroleum Act 2015 (b) Detail proposals by the applicant for the construction, e~ablishment of all facilities and services incidentals to the recovery, processing, storage and transportation of petroleum from the processed development area; --....-= (c) applicant's assessment of whether development and production of the reservoir shall be subject to unitisation or joint petroleum activities il{ ~ccordance with the provisions of this Act; .. ,; I (d) applicant's assessment on bow to coordinate petroleum activities with other licencees, including joint use of facilities is in accordance with the - provisions of this Act and any other law; (e) manner in which development and production of I reservoir is to be financed; (t) applicant's proposals relating to spacing, drilling and completion of wells and facilities required for production of petroleum including- • (i) estimated number, size and production capacity of production platforms, if any; ..... (ii) estimated number of production wells; (iii) particulars of production equipment and facilities; (iv) particulars of feasible alternatives for transportation of petroleum including pipelines; (v) particulars of onshore and offshore installations required, including type and specifications or size of installations; and (vi) particulars of other technical equipment required for operations; (g) estimate production profiles for crude oil or natural gas from petroleum reservoirs; (h) cost estimates of capital and recurrent expenditures of the project; ... (i) economic feasibility studies carried out by licence holder in respect of discovery, by taking into account- (i) location; (ii) water depth, if applicable; (iii) meteorological conditions; (iv) cost estimates of capital and recurrent expenditures of the feasibility study; and II' ... The Petroleum Act 63 (v) any other relevant data and evaluation oflihat data; G) safety measures to be adopted in the course of dexeLopment and production of 'petf(~eum inpJu(:ling 'r;, measures to deal with emergencies; (1<) environment ~pact assessment in respect o~ development, including the necessary measures to be taken for protection of environment: (I) applicant's proposals for employment and training of citizeqs of Tanzania: (01) applicant's proposals with respect to procurement of . goods and services from ~allzania; (11) estimate-of time, required to complete each phase of the development plan; (0) effects on land use; (p) information on how facilities may be disposed of hen petroleum activities cea ed; (q) dev~Opn;tellt if planned in two or more p ases, the, information shall be based on full development to the extent possible; and (r) any other matters as the_Minister may consider l1ec~sary. Disposal of 68.-(1) Subject to this section, se tion 69 and to any application agreement with respec to grant of licence- (a); on application duly made under se tion 66 (1) or (2), the Minister shall grant development licence on such conditions as deemed necessary to give effect to the application ~or the licence, including amendments thereto: or (b) on application duly mad under section 66 (3), the Minis er may grant development licence on such conditions' or refuse to grant in respect of any block constitu ed by Jand to which this Ad applies. -• (2) For purpose ofdisposing an application for grant of developll]ent licencei the Minister may, by notice given to the applic~ni require the applican to furnish, within a period specified in the.notice, such pr9posals, in additiorl+toor by way of alteration.to any proposals'that have already been fu;nished as the •• - Minister specifies in the: notice, including prqposals relating to 64 No.21 any of the matters referred to in section 65 (2). (3) The Minister shall .not grant deve opment licence under subsection (1) without prior approval of the Cabinet. - Restriction on 69.-(1) A development licence shall no be granted to an grant of - deve opmenl applicant unless- licence (a) the proposals 0 applic t ensure most efficient beneficial and timely use of petroleum ,esources •• - " concerned; (b) the applicant has adequate financial resources, technical and Industrial competence and experience to carry out effective production operations; (c) the applicant is able and willing to comply with the L conditions on which the licence is granted; (d) any relevant right given is exercised and is given effect or arrangement is made for that purpose or right is waived; and • • • (e) the applicant is not in default. (2) The Minister shall not refuse application for development Licence under subsection (1) unless the Minister has- (a) given notice to the applicant of his intention to refuse to grant Iicence by giving reasons for grounds of refusal; and ... I (b) specified in that notice a date on which the applicant may intend to remove a ground for refusal or remedy the default or make representations in relation to the applicant ifhe has not, before that date- (i) given notice to the Minister containing • proposals or representations which the Minister accepts; or (ii) remedied the default. Notice of decision 70.-(1) The Minister shall, upon advice ofPURA- on application for development of (a) give notice of his decision to the applicant of I licence development licence; and (b) if the Minister is prepared to grant' licence, give details of the proposed licence. J (2) Where the MInister is prepared to grant a .' development licence pursuant to subsection (1) and the applicant I The Petroleum Act ,,- .. 2015 fails to notify the Minister 0 f,is willingness to accept the proposed development licence within sixty days after the applica t is given notice, his application shall lapse. Q,ontents of the 7 . A development licence shall- development licence (a) state date of grant of licence; (b) identify the development area; - (c) state conditions on which the licence is granted; and I (d) contain conditions with respect to duty of holder of I development licence to supply petroleum to meet II ... domestic needs of Tanzania . Rights conferred 72. A development licence while it remains in force, • by development' confers on the licence' hoJder, subject to this Act and to the I licence conditions specifi.ed il the licence or to which the licence is otherwise subject, exclusive rights to - (a) carryon exploration operations in the development I I ar~; (b) carry on development operations in the development area; I I. (c) sell or otherwise dispose of petroleum recovered; and (d) carry on operations and execute works in the development area as necessary for or ill connection I·~ with any matter referred to in paragraphs (a), (b) or (c). I Term of 73. Subject to this Part and conditions specified in the development licence licence, a development licence shall be valid- I (a) for a period not exceeding twenty five years commencing on, and including the date on which the licence is granted; and (b) where a licence is extended under section 74, for a further period, not exceeding twenty years, as the I Minister considers it to be reasonably required to t .. recover from the development area, the maximum amount of petroleum in accordance with the best ._ " petroleum industry practice. • ..... Application for 74.-(1) The holder of development Licencemay apply to extension of development the Minister for an extension of licence. licence (2) An application under this section may be made once in respect of any extension of development licence. (3) An application under this section- (a) shall, subject to subsection (4), be made not later than twelve months before the day on which the licence is -.1: I_ due to expire; (b) shall be accompanied by particulars of- (i) work carried out, petroleum recovered amounts expended and received in respect of development area 'up to and including a date not d .- • - earlier than one month proceeding the date of application; and (ii) proposals of applicant for work and expenditure in • respect of development area during the extension period applied for; and I- (c) may set out any other matters which the applicant k - i- .. equires the Minister to consider. (4) The Minister may acce)'t an application for extension of development licence late' than twelve months before, and not after the date of expiry of the licence. Grant or refusal 75.-(1) The Minister shall, on application duly made for I of extension of development licence the extension of a development licence and after being advised by PURA and uP90 approval of the Cabinet, grant an extension of licence. I •• fI ,. (2) The Minister shall, after being advised by PURA, refuse to grant the extension of a development licence if the licence holder is in default, unless the Minister discovers that special circumstances exist which justify the granting of the extension notwithstanding the default. . (3) The Minister shal1 not refuse to grant the extension of a development licence on application being duly· made under section 74- -• (a) unless he has given to the applicant notice of his intention to do so by- (i) giving in 'the notice particulars of the ground for the intended refusal; and (ii) stating a date before which the applicant may . 'p, • - take appropriate action or make representations in relation to that ground; and (b) if the applicant has not, before that date, remedied the default or, in a notice given to the Minister, made representations which, in the opinion of the Minister, I I No.21 The Petroleum Act ---- remove the ground for the inte ded refusal. 4) The Minister shall, after being advised by PURA, give- • notice to an applicant for the extension of a development licence " of his decision on the a plication and, if he is prepared to grant the extension, h shall give particulars of any variation of the conditions of tbe licence which are required to give effect to the .. application for extension. including amendments thereto and which shall have effect on the grant of-the extension. (52 if an applicant, within sixty days after he is given notice pursuant to subsection (4) that the Minister is prepared to grant the extension of a development licence. fails to notify the Minister of his willingness to accept the extension of the licence as proposed, his application shall lapse. (6) Where- (a) an application for the extension of a development licence has been made; and (b) the licence expires- , (i) before the Minister grants, or refuses to grant, the extension of the licence; or (ii) before the application lapse Ul;ldersubsection 5), the licence shall be deemed to continue in force until the I Minister grants or refuses to grant the extension of the .. licence, 01' the application so lapses, whichever first I occurs.

76.-(J) Upon the advice ofPURA, the Minister- - • (a) shall, before or during grant of development licence, approve the production schedule contained in the • development plan and issue an annual production permit LO the licence holder; • (b) may, upon application from the licence holder. approve for a 'fixed period of time, the quantity of petroleum which may be produced or injected at all I ... times; (c) may stipulate that production shall be increased or •• reduced in relation to the approved production plan ... and apportion the increase or reduction proportionately between relevant reservoirs and give speciaJ consideration to long-term agreements for supply of petroleum; I. 68 No.21 The Petroleum Act (d) shall, upon application made by the licence holder, aI?prove test production of a reservoir, duration, quantity and other conditions lor test production; , (e) shall require a licence holder to produce a fr'"epOrt on .. field related atters, including alternative schemes for production, if applicable, injection and total recovery factor for various petroleum production schedules. ('1) An application under subsection (1) (b) shall be submitted in form, at such times and contents as may ~e prescribed in the regulations. Revocation of 77-(1) Where, in respect of a,block included in a location, declaration of location the holder of exploration licence does not apply .for a development licence within - (a) a period of two years following the declaration of location under section 64(1); or (b) any further period that the Minister allows under section 66( 1) for application of a development licence, the Minister may, upon advice of PORA and by notice published in the Gazette, revoke the declaration of the location. (2) 'Where the declaration of a location is revoked under; subsection (1), that part of the location which consists of- (a) the block that was the discovery block within the meaning of section 64(6); and (b) any adjoining blocks in which the presence of petroleum has been established when tbat declaration is revoked, shall cease to be subject to the exploration licence concerned. (3) Where all applications made under section 66(1) for a development Iicence in respect of a block that is included in a location have lapsed, the exploration licence shall be revoked in respect of that block. (4) Where an exploration licence is revoked under subsection (2), the Minister shall, by notice published in the ." Gazette, revoke declaration of the location so far as it included that block. .. Unit development 78.-(1) A holder of a development licence may enter into an agreement in writing for, or in relation to, the unit development of a petroleum reservoir. • I .. No.21 - - The Petroleum Act 2015 69 ,.. • .'. ... (2) The Minister shall, upon advice of PURA and on application made to the Minister in writing by the licence bolder of a development licence in whose development area there is a .•, I part of a particular pet oleum reservoir, for pu[pose of securing more effective recovery of petroleum from that petroleum reservoir, direct any such licence holder whose development is • included as part of that petroleum reservoir- .. (a) to enter into an agreement in writing with.the person and within the period specified by the Minister or in relation to the unit development of the petroleum reservoir; and (b) to forthwith lodge agreement with the Minister through PURA for approval and registration in accordance wirh {he provisions of Sub-Pad 11Division (b) relating to transfers and regis ration. (3) Where- (a a licence holder is directed under subsection (2) to enter into an agreement for or in relation to the unit development of a petroleum reservoir has not entered into such an agreement within the specified period; or (b) a licence holder enters into such an agreement but the agreement is not lodged with the Minister in accordance to subsection (2) or if lodged, is not approved under section 86(1), .. the Minister may, upon advice of PURA and by notice in writing served on the licence holder, direct the licence holder to submit to the Minister, within the period specified in the notice, a scheme for or in rei ti n to the unit development of the petroleum reservoir. 4) An agreement under this section shall be an instrument to which provisions reJating to transfer and registration under this Act apply. ~5) Where petroleum accumulation extends beyond the jurisdiction of this Act; tlic Minister, upon advice of PtJRA, shall carry QlI strategies to render unit d velopment in cooperation with the foreign country of jurisdiction on which the accumulation extend with a view to ensure the correct apportionment of the accumulation and the most efficient co- ordination of petroleum operation. ~6) Iior purposes of this section, "unit development" in relation to a petroleum reservoir, means th co-ordination of • -_ 70 No.2 1 The Petroleum Act 2015 operations for the recovery of petroleum being carried on or to be I I carried on in a development area in which there is part of the reservoir, with other operations for the recovery of petroleum being carried out or to be carried out in any other area in which - , there is part of the same reservoir, such coordinated operations to be undertaken as a single development area. ,"• •• Directions as to 79.-(1) Where petroleum is not recovered in a recovery of petroleum development area-and p~ is satisfied that there is recoverable petroleum in that area, PURA may, by notice in writing served on the licence holder of development licence, directs such holder to take all necessary and practicable steps to recover that petroleum. • (2) Where PURA is not satisfied that the licence holder to whom the direction has been given under subsection (1) is taking all necessary and practicable steps to recover petroleum, PURA may, by notice in writing served to the licence holder, give specific directions as it thinks necessary in respect to the recovery of petr leum in the development area . - .......• (3) Where petroleum is recovered in a development area, PURA may by notice in writing served to the licence holder of the development licence to take all necessary and practicable steps to • increase or reduce the rate of petroleum recovered to such rate not exceeding the capacity of existing production facilities. I-.... (4) Where..PURA is not satisfied that a licence holder to •• wh6m the-direction is given under subsection (3) is taking all necessary steps to increase or reduce the ~ate at which petroleum is being recovered, PORA may, by notice in writing se ed to the I -- licence holder, issue to the licence holder-such specific directions as it thinks necessary f r or in relation to the increase or reduction I - of the rate at which petroleum IS being recovered In the development '-- area. (5) Nothing in this section or in any direction given nder this section by PURA shall be construed as requirement of the I I holder of a developmen ~licence to do nything which is not in accordance with bestpetroleum international practices. Restri~lion on 80.-(1) A licence holder shall not exercise ally of his rights exercise ofrigbts under the ).icence or under this Act- _,.1 under licence a) wi hout written consen of the Minister in respect 0 - No.21 - The Petroleum Act 1- 2015 - 71 • • .. - . _- • • (i) any land dedicated or set apart for any public purpose other than mining; (ii) any land dedicated as a place of burial; (iii) any land which is the site of or is within one •. hundred metres of any building, reservoir or J darT!.owned by the Government; (iv) any land forming part of a licenced or Government aerodrome or of any Government landing ground, or which is within one thousand metres of the boundaries thereof; e (v) any land on which there is an installation or on land which is within one hundred metres of the boundaries thereof; or (vi) any reserved area or any rotected monument, declared under the Antiquities Act; (b) without the written co ent of the lawful occupier in respect of any land- (i) which is the site df, or w ich is within two hundred metres of, any inhabited, occupied or temporaril occupied bouse or building; (ii) within fifty metres of land which bas been cleared or pl6ughed or otherwise prepared in good faith for the growing of agricultural crops or upon which agricultural cro s are. growing; (iii) from which, during the year immediately preceding. agricultural crops ~ave been reaped; or (iv) forming part of an aerodrome, other than an aerodrome referred to in paragraph (a)!iv): Provided that where any consent so acquired is in th opinion of the Minister, being unreasonably withheld, the Minister may. on such conditions impose, direct that the need for the consent shall be dispensed with, and in that even this paragraph shall not ha 'e effect in so far as it requires the consent.of the lawful occupier to be given. (c) in respect of land in a national park declared under th Cap.282, Cap. 323. National Parks Act; Forests Act, in any game reserve Cap.283. declared under the Wildlife Conservation Act or in the and Cap.284 - No.21 II 72 The Petroleum Act 2015 conservation area established under the Ngorongoro Conservation Area Act except with the written consent ofPURA having control over the park, or reserve area; .. (d) in respect of any land reserved for the purpose of any " railway, or which is within one hundred metres of the boundaries of any land so reserved, without the written • consent of the-responsible railway Authority; (e) in respect of any land within any city, municipality, township, minor settlement or demarcated trading settlement, except with the written consent of licence holders of surface rights and of the responsible Minister or relevant authority having control over trading settlement; (1) in respect of any street, road or highway, and within one hundred metres of any bridge, public ferry, culvert or drift in any street, road or highway, pipeline or power line, except with the written consent of the responsible Minister or of relevant authority having control of the street, road, highway, bridge, ferry, culvert, drift, pipeline or power line' (g) in respect of any land over which a mining licence has been granted or saved under the Mining Act, and is still subsisting, without the written consent of the Min ister; or • (h) in respect of any area of land which is specified under Cap. 123 the Mining Act. (2) Any dispute as to whether or not subsection (1)(b) applies in respect of any land, shall be dealt with in accordance relevant laws. (3) Any consent of the Minister or responsible Minister under this section may be given unconditionally or subject to such conditions as specified in the instrument of consent. (4) For the purpose of this section, "responsible Minister", means the Minister for the time being having responsibility for I that matter. .. • r - ·"1 •- ..I • .... I, - ,..... ........ ~.!!t. Sub-Part III Surrender, Cancellation and Suspension of Licences and Transfers and Registration Records (a) Surrender, suspension and Cancellation Surrender of 81.-( I) The licence holder who wishes to surrender all or licence any oft e blocks subjec to the licence shall apply to the Minister for a certificate of surrender, in respect f a block, not less than ninety da s before the date on which he ishes to surrender to have effect. (2) An application under subsection (I) shall- (a) state the date on which the applicant wishes the surrende to have effect: b) in the case some of the blocks subject to the licence are to be surrendered, identify only the bloc to be surrendered; (c) give particulars of exploration or development operations carried on si ce the licence was granted or last extended, whichever is the later, in respect ofsthe blocks to be surrendered' and (d~ be supported 0 records and rep rts irrrelation to such operations as the Minister may reasonably reqtjire. (3) Subject to subsections (4) and (5), where the application is duly made under sub ectio ( I) the ~ster shall issue a certificate pf su ender eithe unconditionally, or subject to such conditions as specified in the certi care" !jn respect of the blocks to which the application relates. (4 The .. ster may, before issuing a certificate of surrender under subsection (3 seek advice ofPURA. 5 The Minister shall not iss e a certificate of surrender- (a) to an app icant who is in default; (b) to an applicant wh9 ails to com Jy with the requirement of the Minister in accordance to subsection (2)(d); or (c) if the decommissioning pursuant to this Act has not been completed; - ... •• J- (d) i(ltbe Minister is not satisfied that the applicant shall leave the blocks to be surrendered on Which the exploration or development .operations have been I!!. -.-- - - _-tI-II .. .. carried on in conditions which are safe and which :I .. -_ IEfi· F WI 74 No.21 o/he Petroleum Act accords with best international petroleum industry practices. Effect of 82.-( 1) Where a certificate of surrender is issued, the certificate f Minister shall- ,, surrender (a) if not all of the blocks subject to an exploration licence -=-t • or a development licence are surrendered, amend the licence accordingly; or - J - (b) in any other case, cancel the licence. (2) Without prejudice to subsection (1), where the Minister amends or cancels the licence as a consequent of issuance of a certificate of surrender, the Minister shall notify in writing the applicant on the amendment or cancellation of the licence. (3) Any block in respect of which a certificate of surrender is issued shall be treated as having been surrendered with effect from the date on which notice of surrender of certificate is given to the applicant pursuant to subsection (1). (4) The surrender of any block shall not affect any • liability incurred before the date on which the surrender is effected in .respect of the block, and aQYlegal proceedings that might have been commenced or continued in respect of liability against the applicant for certificate is commenced or continued against that applicant. Suspension or 83.-(1) Where the licence holder is in default, the Minister cancellat ion of ... licence may, upon consultation with PURA and by notice in writing served to the licence holder, suspend or cancel the licence. (2) The Minister shall not suspend or cancel a licence on the ground of any default unJess the Minister has- (a) by notice in writing "served on the licence holder, issued not less than thirty days notice of his intention to suspend or cancel the licence on that ground; (b) specified a date which the licence holder may, in writing, submit any matter which he wishes the Minister to consider; and (c) taken into account- (i) any action taken by the licence holder to remove that ground or to prevent the recurrence of similar grounds; and -....._- No.21 -=----_ TheEetroleum Act 2015 - 75 •- (ii) any matters submitted to him by the licence holder gursuant to paragraph (b). (3) The Minister shall .no Sirspend or cancel a licence all the ground of any default in the payment of any amount payable under tbis Act if the licence holder before the dare specified in a notice referred to in subsection (2), pay the amount of Otley cal cerned tQgether wit. any intere~t payable. C4 'he ~inister may, a er consultation with PURA and by notice in writing se eo on the. licence holder, cancel the licence if - (a) the licence holder enters into any agreement or scheme of composition: with his creditors or takes advantage of any Jaw for the ben~fit of debtors: or (b) an order is made.or a reso ution is passed of winding II up the affairs qf the company or corporation, unless ... the winding up is fat purpose of amalgamation and the !vfiniste~has cons~!}tedto ~e amaLga'll~~io~~ .or is for ••• the~urpose of reconstruction and the Minister has been gi~en notice ofthereconstruct.iQI;l. • ." (5) 'Where two or ritor& persons l.a!ve interest on licence, the Minister shan 110t, under subsection (4), cancel the licence on the occurreri'ce, in (elation to one or more Rersons the • • • having interestjn the licence, of an event entitling the Minister to cancel the licence, if any, other person with. inte;est ~n the licence satisfies the ~ Minister. that the~ person is.willing and able to carry out duties and obligations ofthe licence holder. (6) On the cancellation of a licence, the rights of the . .. - • licence holder shall cease, but the cancellation shall not affect any liability incurred before the 'cancellation of. licence and any Legal , proceedings that might have been commenced or continued against such Jicence holder. (b) Transfers and Registration Records ..- Petroleum 84.-( l) PUM shall establish and maintain a registry of ._ Registry petroleum agreements, ,licences, peimit authorisations and any change in infefests of all existing petroleum agreement, permit or licence, J (2) The Petroleum Registry shall contain information on the-, licence, permit, or petroleum agreements as prescribed, including applications for grants, assignments, renewal, surrender, ~. termination, revocati9n, and other relevant particulars. (3) Each petroleum agreement and each licence or penni shall be given in a separate sheet in the registry. (4) PURA shall keep a journal of documents to be • registered. " (5) The Petroleum Registry shall contain a record of an)'l 1-:. court decision including arbitration, award, deeds QT instruments related t the licence. (6) Any person may request access to information in the I • • .Petroleum Registry, and the information registered shall be pub ic except as otherwise provided by law. - Interest in licence to be created by

85.-(1) A legal or equitable interest in, or affecting a licence shall not be capable of being created, transferred, instrument in writing assigned, effected or dealt with whether directly or indirectly, except by instrument in writing. I (2) The creation of a legal or equitable interest in, or affecting a licence, shall not affect the liability of the licence holder for any breach of Ute conditions of the licence or of any of the provisions of this Act. Transfer of 86.-(1) Unless the Minister approves an instrument by interest in a -, licence to be which a legal or equitable 'interest in, or affecting a licence is approved by created, assigned, effected or dealt with, whether directly 01' Minister indirectly, the ansfer, or the instrument in so far as it operates, shall be of no effect. (2) An application for approval of transfer of an instrument shall. be made to the Minister and shall be accompanied with: • (a) an undertaking that the transferee is capable of discharging obligations ofthc transferor; (b) certificate of incorporation or compliance by the transferee; (c) transfer agreements between transferee'and transferor; (d) certificate of tax clearance from the Tanzania Revenue Autbority ; (e) an integrity pledge by the transfcree; (f) particulars of technical and industrial qualifications of the transferee and of his employees; (g) particulars of the kinds of financial resources available .' . to the transferee, including capital, credit facilities and , -- f • -- -_ - -- .. -+ No.21 • - The Petroleum Act 2015 1 77 guarantees so available; (h) particulars of technical and industrial resources available to the applicant; 4 '"' 't '(i) proposals with respect to the training and employment of Mainland Tanzanian; and .. -- , U) any other matter as the Minister may consider • • necessary. (3) Subject to subsections (4) and (5), on application duly if • made under subsection (2), the Minister may grant or refuse to l' • - •- grant approval subject to any condition as the Minister considers necessary to impose. ~ 'I' (4) The Minister may, upon consultation with PURA, - - approve transfer of interest in a licence if a transferee is not a person disqualified from holding an interest in a licence under any r provision of this Act or any other written law • (5) A transferor of an interest in a licence shall ensure continuity of the petroleum operations unde"t'ihe licence until such operations are taken~over by transferee. .. - (6)The Minister shall announce Without delay an approval of an assignment or change of ownership at least two 'widely news.Rapers and media . (?) U'he NationahQil Company shan have the right of first refusal to acquire the participating interest that a member of contractor PMt intends to assign to a.non- affiliate. •, (8) FOI; purpose of subsection (1) (a) "transfer of an imerest in a licence" includes a transfer of an interest in a licence 1 by operation of I~. • Minister may 87. The Minisfer may require any person who makes, .. , require information application t furnish to PURA such information to enable him to dispose the application, and the 'applicant shall comply with tbe , ---.-- requirement. Sub-Part lV Information and Documentation ...., Information, data 8~.-(1)All petroleu~1 data generated under this Act shall + andrcpo be owned byithe Government. (2) The licence iolder and contractor shall give copies of data generated under subsection (I to PURA free of charge. (3~ PURA may permit the licence holder, contractor and 78 No.21 • ,. - - ..... _ ThePetroleum Act • - - ------ 201S~ subcontractor to market tbe rights of use data on terms to be agreed upon. (4) i'fhe licence ~older or contractor shall not export any core, cuttings, rock samples fluid samples or any other data collected without the written authorisation ofPURA. (5) PURA shall establ ish the ational Oil and Gas Resource Data Bank or the storage of petroleum data generated under this Act. (6) The licence holder and permit holder shall submit to PURA accurate geological maps and plans, geophysical records, and interpretations relating to the licence area. (7) The licence holder and permit holder shall submit to PURA, in such form as it may require- (a) at h If-)'iearly intervals Commencing six mo ths after the grant of licence- (i) a summary of geological geochemical and geophysica work carried out; (ii) a summary of all drilling activity and resu ts obtained; (ii i) copies of maps, ta~es or reports of ohier geological, geochemical d geophysical data prepared for the licence older in respect of the period concerned; b) within sixty days after the end of each year ofithe term of licence- (i) a record describing the results of all petroleum activities carried out by the licence holder in the year to which the licence relates; (U) estimates, if any, of economically recoverable petroleum in the..form of crude oil and natural gas at the end of the year to which the licence relates; rc) sumrnarie of wells 'Cirilled, including lith logical groups. classification boundaries and hydrocarbon zones, within three months after completion of drilling or, in the case of inform tion that are not obtained in that period, as soon as possible after completion of drilling; and (d) any othef informatio , data and report as may be required. - • No.21 - I ThePetroleum Act 2015 - (8) 'The licence holder and permit holder shall disclose to 79 •• • i.,- - .:-=1-. PURA the technology necessary for evaluation and understanding of-any raw data, processed data or Jnterpreted data resulting' rom the licence holder and a penn it holder who work in the licence area. Records to 8~. The licence. holder and penn it bolder shall notify be kept PURA and k;;P complete and accurate records containing particulars of- (a) drilling operation, pJugging err abandonment ofjVells; • - .. (lj strata and subsoil through which'wells ale drilled; (0) casing inserted in wells and any alteration to the casing; (d) any petJ~leumJ water and minerals or dangerous • substances encounte~and of any minerals; any significant discovery (e) areas 'in. which aQ),) geological, .geophysicgl & geochemicaL work is carried out; • (f) quality of 3.l1y crude oil and composition ofnatu~ gas produced; N- (g) 9llil!ltmes (i) crude oil' (ii) natural gas; and (iii) sulphur, ill any form, or any other minerals or gases, liquids' or solids dispo~ed of by ay of sale or otherwise, considerati.on received, the quantity disposed and name o,riihe person t whom tlie quantity was disposed; (Ill quantity of petroleum injected into fo nation for enhanced recovery J?urposes or disposal; 05 qua.rfty of petro~um consumed during petrolell 1 activities, other than quantities reported under paragraph (h), and Retroieuin pumped to field sto age and refinejies in~TaJ;Zania; . quantity of natural gas processed ~n JailZ:a:nia by the licence holder or on behalf of 'the licence holdertfor removal oi liquids ar d liquefied petroleum and quanti~ of gases or solids recovered from it; and • (k) quantity of natural gas flared or vented. I 80 No.21 The Petroleum Act 2015 - Duties on termination of licence and

90. Where a licence or a reconnaissance permit is terminated, revoked or ex-pires, the. person who was the licence - reconnaissance holder or permit holder immediately before the' termination, - permit revocation or expiration of the licence or reconnaissance permit II shall deliver to PUl}A in a-format acceptable to PURA- (a) all records with re~ect to the licence; (b) all plans or maps of the licence area which were prepared by or on the instructions of the licence holder or permit holder; (c) all tapes, diagrams, profiles and charts which were prepared by the licence ho der or permjrholder; and (d) other documents as PURA may, by notice _issued to the. licence holder or permit bolder, \equiied to be delivered. Availability of 91.-(1) PtJ;RA, may, with a written approval of the information to the public Minister, make available to the public- (a) details of all agreements, licences, permits and any • amendments to the licences, permits or agreements • whether valid or terminated' (b) details of exemptions, variations or suspensions of conditions of licence and permit; (c) approved development plan; and (d) all assignments and other aPJ>roved arrangements in respect of a licence and permits. (2) The information referred to in subsection (1) shall be made available to any person UpOj1payment of tbe prescribed fee. Confldcntiality 92.- 1) Tbe data submitted to PU~ by a licence holder of dala shall be treated as confidentia and not be reproduced or disclosed to therthird parties by any pari'y under this Act except- rca) in the case q,f disclosure by the licence holder and permit holder, with the prior -8mtten consent of th Minister; or . (b) in the case of disclosure by \1JRA prio to the relinquishment of the area to which they relate .with the prior written consent of the licenc holder and permit.ho der. 2) T~ copse t under subsection (l)(a) or'(b) shall not be unreasonably withheld or delayed. No.21 The Petroleum Act 2015 8] I I - (3) The provisions of subsection (l) shall not prevent the • disclosure by- _' • ... (a) PURA upon fifteen days prior written notice to the , . licence holder identifying the parties to which disclosure will be made- (i) to an agency or organ of the Government; (ii) to a financial institution or person acting as a consultant or professional adviser to PUR A; I (iii) to arbitrators and experts appointed under this Act or under an agreement made under this Act; (iv) for statistical purposes; or (v) in connection with the award of new acreage; (b) a licence holder, permit holder or contractor of the' subsidiaries of the licence holder,permit holder or contractor to- (i) affiliated company, its home Government or any department, agency or as required by any law; (ii) a recognised stock exchange on which shares of the licence holder, permit holder or its I •• affiliated companies are traded; (iii) financial institutions and professional advisers and arbitrators and experts appointed under thts Act; (iv) bonafide prospeetiv.e assignees of a licence or • permit participating interest; and (v) a corporation with which the licence holder or permit, holder is conducting bona fide negotiations directed towards a merger or • consolidation . (4) All data disclosed to third parties shall be disclosed on terms and coqditions to ensure that the are treated as confidential by'the recipient. • Prohibition against disclosure of information

93.-( 1) Information furnished or report submitted under this Act by a licence holder and permit holder shall not be disclosed to any person who is not PURA or an officer in the public service except with the c2})sent of the licence holder or permit holder. ·. The Petroleum Act (2) Nothing in subsectio (1) s all prevent the disc osure of information when the disclosure is made- (a) after the licence or permit concerned ceased to have effect, or ceased to have effect over the land to which the disclosure relates; .. (b) for and in connection with the implementation ofthis Act; 0) for purpose or in connection with any legal proceedings; d) to any consultant em_ployedto advise the Government on matters relating to petroleum operations' (e) for, or in connection with the preparation or on behalf of the Government on statistics rei ting to petroleum operations; !f) to a financial institution or in connection with financial arrangements or advice in relation to petroleum operations' (g) in connection with the determination of any liability on toe licence holder or perm't holder to make any pay ent to the Government; (h for, or in connection with any matter presc 'bed in a petroleum agreement; or (i) as the requiremen to ensure transparent and ace untabiLity under the relevant law, (3) A person shall not disclose confidential information w ile sti]] working in the public service or PUM in the petroleum industry or when ceases to be public servant or member of the ,!3oard of p~ or the National Oil Com any which he-obtained in the course of his employment for a period of ten years, (4) Any person wh contravenes subsection I) or (3) commits an offence and shall be liable on conviction to a fine not less than ten million shillings, (5) n proceedings on a prosecution for an offence-under this section, it shall be a sufficient defcnce if the person charged proves that the information disclosed and to bich the prosecution relates was, without that disclosure, generally known to the public or national interest, Further 94.- 1) has reasons to believe that a person information 10 be furnished is capable of giving information or producing documents relating 1'\0.21 The Petroleum Act 2015 83 to exploration or CieyelQpmentoperations, PUM may, by notic in writing require that pcrson- (a) t furnish information in writing within the period and in the manner specified in the notice; or (b) t appear himself or person specified in the notice at such time and place to answer questions relating to the ... operations . (12) A person is not excused 'rom furnishing information, answering a question or producing a document when required to do so under this section might tend to incriminate him or make hi'm liable to a penalty, and the information so furnished or his answer to the question shall not be admissible in evidence against him in any proceedings other than proceedings for an offence. Failing to furnish ,95. Any person who- information (a) refuses or fails to comply with a requirement in the • notice to the extent to which he is capable of complying with it; (b) in purported compliance with a requirement referred to in paragraph (a)? knowingly or recklessly furnishes information that is false or misleading in a material • particular; or (c) when attending before PUM or any other person ~ under a requirement referred to in paragraph (a), •• • knowingly or recklessly makes a statement or produces a document that is false or misleading in a •I -- aterial particular, commits an offence and shall be liable, upon conviction, to a fine of not less than 'fifty l1;!)Uionshillings or to imprisonment for a _::II termofthree years or both. .... I -II I..- Sub-Part V - Obligations of Licensees and Contractors .. Third party access 96.-( 1) A person who requires to use spare capacity of facility owned by another party shall, on objective and non- dis'Zriminatory condi_ti2[ls h~ve a right 1 use such facility in accordance with the provisions of this Act. (2 The agreement relating to use of facility of another party . hall be based on profits from production earned by producing field and owner's incentives to maintain th· capacity of 84 No.:21 facil ities and investments. ~B)Negotia io s between owner and user oj facility shall be organised lWd conducted based OJ} ihtegrity, good corporate governance and good faith. (13 Subject to Iw prov~ion of-subsection (3)- (a) the negotiations shall not provide to one.pa:r1iYwith an .. un eas able advaiitage at the expen e of the other par y; (b~ when the negotiations is on process, the. arties shall exchange updated IOformation on the user's needs and capacities available, with a view to determining, at the ealiliest stage, tHe co lditions that go ern the required use. (5}1he licence Holder shall participate ig nego iaiThhs on J:h~ side on WhIch the greatest' economic inte ests of the licence holder lie. (6) ~ny agreemen r;.eJatingto the use o:G;faci!ilies.lfe~erred to in-subsectioh 2) shall be submitted'to J;>DRAl<for ll;PPr.oval. (7) PlrJtA !D.aY,on approying an agr.ee~ent J'u~uant t~ subseclion (2) or in tlie 'e,vent tha no agreement is r.eaclfeClwithin a reasome time, tipulate tariffs aQ,d otve conditions or subsequently amend the conClitions that have been approved or stipula:ed! ill 0ider ~ e~ !m~eme~tat.ign ot~ro"ect is carried oUi: With due regard 0 c£,nrudera'2ns relating te =resour e management. (8) PURA n;tayissue directions n.the use of facilitie by taking jpto COll iderations efficieqcy, resQ,l;lfcemanagemen o . benefit of society, and such facility shall notbe detriment to the li.cence holdgs or a pe~..!l wn..Q.hasa.right of use. Domestic supply 97.-(~) 1;h.e icence h9lder and bontrastor shall ha've obligation obligatiof to satisfy dome§.!ic mar et in Tanzania from their proportional share Q production. (2) The volume of 'crude oil or natural ~s Which is required to be sold shall meet the require~ents of domestic market not exceeding share of profi oil or gas of a licenc· holder and contractor. Supply of gas and costs 98,-(1) ifhe do~stionatural gaslpric shail be determined based on t11'e strategicJ"nature of the projech to be und6rtaken by the bovem.,il·ent. . 'f - I - to • - .• l r The Petroleum Act 85 • (2) Th~ volume of crude il oJ: natural gas whic the licence holder and contractor is required to supply shall meet domestic market obligation determined by the parties in the • mutual agreement and on pro rata basis with other producers in Mainland J'anzan°a. • Price valuation of 99. The average air market price of Tanzania's crude oil petroleum marketed in an calendar quarter shall be determined in manner prescribed in the regulations. Work practices 100.-(1) The licence holder and contractor shall- for licence holder lind the contractor tar carry out all exploration and development operations in the exploration or development area in a proper, safe and workman-like manner and in accordance with the best petroleum industrial practice; (b) take all reasonable steps to secure safety health and wel are of person engaged in that operations, .. ...111. I ... exploration'or development area; and (c) act in accordance with the directions, restriction or ~ requirement made by an inspector under this Act. lL) Subject to subsection (1), the licence holder and contractor shall- _. .,- (a) control the flow and prevent waste or escape in ~e exploration or develo ment of gas, 'Dotbeing petroleum or water; (b) prevent the escape in the exploration or develo ment area -- • of any mi~re of water r drilling puid and petroleum or any other matter; (c) prevent damage to petroleum bearing strata in an area in =e= of which the licence is not in force; (d) keep ~eparate in the manner prescribed- (i) each reservoir discovered in the exploration OJ to development area; and (ii) source of water if discovered in the exploration or: development area, as lh.s Minister may, by notice in writing served on the-licence holder, directs; .. ,e) prevent wate or any other matter.entering into petroleum reservoir througll well in the exploration.or development area except when required by, andlin accordance with! best'ipternational petroleum industry practices; - 86 No.21 The Petroleum Act 2015 • • (f) prevent pollution of any water-well, spring, stream, river, I • i'" lake, reservoir, estuary, harbour or area of sea by escape • -- of petroleum, salt water. drilling fluid, chemical additive, gas not being petroleum or any other waste product or effluent I- - - _,... (g) furnish to PURA prior to drill well, a... detailed report on " the technique to be employed, an estimate of time to be taken, the material to be used and safety measures to be empl yed, in the drilling of well. (3) The licence holder and contractor shall not flare or vent petroleum without prior consent from »URA. (4) Where the consent in writing from PURA has been obtained, nothing in this section shall prevent a licence holder and contractor from flaring"'petroleum in accordance with the te~s qp the instrument of consent. (5) Nothing in this section shall prevent the licence holder and contractor from flaring petroleum in. (6) S bject to subsection (4), flarin may be required to safeguard the health and safety of person in the emergency circumstances exploration on development area, and prevent damage to the property in the explorat' n or development area. (7) The licence holder and contractor shall furnish to PURA intention to abandon at;ly well" c1osurC-'o~ plugging of well a d the pr cess shall be carried out in the prescribed manner with the prior consent from PU~A. Work practices of 101. The permit holder shall- perm it holders (a) carry out all reconnaissance aotrvrties in the area which the reconnaissance permit is in force in a proper and worknian-like manne and in accordance with bes petroleum practice' and 6) take all reasonable steps to secure safety, health and welfare of J'erson engaged in the operations of that area. Penahy for ] 02-( 1) The licence holder, permit holder and contractor breach wQo contravenes section 100, commits an offence and .shall be liable, upon onvic ion, to a fine 0 not less than twent million shillings. ~2} in proceedings on a prosecution of an offence under tl\is section, it shall be a sufficient defence if the accused person The Petroleum del 2015 87 proves that he promptly took all reasonable steps to comply with the requirements of the relevant section applicable to him.

103.-(1) he licence holder contractor and permit' holder shall- .... (a) maintain in good condition and repair all structures, equipment and other property in t e area subject to the • •• licence or in respect of which the instrument of consent is in force and used in coitMction with operations in which they are engaged; (b) remove from that area all structures, equipment and other property that are not used in connection with the operations in which he is engaged; and (c) take reasonable steps to warn person who may be in the vicinity of any structure, equipment or other property of the possible hazards resulting from it. (2). Subsection (1) shall not apply toany structure, equipment or other property that Was Qot brought into the area. subjec to a.,licence, permit or by PURA of the licence holder, contractor or permit holder. (3) The Licence holder, contractor or permit holder wbo contravenes subsection (I)(a), (b) or (c) commits an offence and shall be liable on conviction to a fine of not less than ten million shillings. Drill ing near 104.-(1) The licence bolder and the contractor shall not boundaries drill a well which is less than one thousand metres from a boundary of the area subject to the licence except with the consent in writing of PURA and in accordance with conditions specified in the written conselJ.t-:" (2) If the licence holder and contractor fails to comply with subsection (1), PURA may in writing direct the licence holder and contractor to do one or more of the following activities within the period specified in the instrument to- (a) plug the well; (b) close off the well; or ... (c) comply with direction relating to the drilling or maintenance of well as specified in the written consent. (3) A person who fails or neglects to comply with,a direction given under subsection (2) commits an' offence and shall, citt - -to • 88 No.2 The Petroleum Act 20 5JI convietiol{.a be iable to -a fine of pot . ess thaT/,ten million sl£i.llings. ~Iotection from )05. A Q1e_plberof the Board or an officer of PeJR4 or a Jjabilityof members of person aoting on the directions of the Board QI of an office of Board and &RA is not personally Hable f.or any act or omission doqe or officers olpURA omitted fO be done in g20d faith in theJ>erformance of functions • under thi] Act. Duty norte 106.-(1) SUbject to this Act a person who is a member ot· disclose information the Board or employee of PURA shall not tlisclose any l!:!.fonnation whic he may have obtained in the course of his emp[oyment, (2 A person who ceases to be a member of the Board or employee of 'PURA shall not disclose any confidential informatio which he may have obtained in the course of hif employment for a period of five years, 1 (3) A~erson who contFa'venss subsetliml (1) or (2) commits a9coffence and shall be liable 9n ~nviotion to a fine ot} Dbt' less than tWent:£ milli<2nshillings or to imprisonment for a term not exceeding four years or 9~th. Survey of wells '10,,-(1) PbJRA ,!11ay"at any time, by no ice ip writing direct tlte L'ceiWe.:holder and c9ntractor to- (a) ca ry a survey of the position o: well, structure or equipment specified in tl e-notice: and (bJ furnish p omptly to rtIitA a report in writing of the urve t. (2) ;Where PURA is not satisfied ith a re OLt of a survey furnished to plJRA under sUb/ection (1) PURA may, by notice in writi~g direct the licence holder to Rt:9mptly furnish information bi'writing in oonnection with the survey, (3) Where a person to whom a di1J!ction is given under subsection (1 (a) fails ~r neglects t'8 comply with the direction p~ may cause-to De carried a survey specified in the notice. (4;) Costs' and expenses ill-curred.pursuant to."sUbsection (3) in the p ocess of carrying out a. survey shall l.?.eregarded as debt due to tile Mainland Tanzania and shall be recoverable in a court of cOf9petent jurisdiction notwithstgnding that the !icen ehclder cohcerned, is convicted of an offenge under subsection (5). - .I II u No.21 The Cetrolewn Act 89 (5) A person to whom a direction is given under subsection (I) or (2) fails or neglects to comply with the direction commits an offcn~apd shall be liable to a fine of not less than fifty million shillings or' prisonment for a term of five years. Control 0 er 108.-( I) Where a development Iicence is granted to a contractor licence holder who is in partnership with a contractor, such contractor shall not after the date of grant of licence without the written consent of the Minister- • (a) register the transfer of any share of the contractor to any particular person or his nominee; or (b) enter into any agreement with any particular person, if the effect of doing so would be to give such particular .. person or his nominee control of the contractor's company. (2) fJ'he Minister-shall, on application made under this section, give or refuse to give consent after taking into consideration public interest. (3) Subject to subsection 2), the Minister ay require any application and information as he considers necessary. (4) For the purpose of this section- (a) a person' shall be deemed to have control of a company- (i) if such person or his nominee holds a total of twenty percent or more of equity shares in the company; or (ii) if the person or his nominee is entitled to appoint or prevent the appointment of a sufficient number of directors to form a quorum at meetings of directors; (b) "equity shares" in relation to a company, means shares ini the company having voting rights, and includes preference share other than preference shares not having voting rights; and (c) "preference shares" means shares which carry the right to the payment of a dividend of a fixed amount, or not exceeding a fixed amount. in priority to payment of a ..... ,. dividend on another class or other classes of shares, whether with or without other rights. No.21 The Petroleum Ac7 ~015 Power of entry 109.-(1) For the purposes of this Act, PURb may, at all reasonable times- (a) enter into any area, structure, vehicle, vessel aircraft or building that is in connection with- (i) exploration qperatio s: or (ij) development operations; (b) ins ect and test by a qualified person, any machinery or equip ent that in its opinion, is used in connection with any>of the ope ations referred to in paragraph a); (c) ta e or remove for the purpose of analysis, testing 0 use in evidence in connection with an offence agaiQst this Act, samples of petroleum, water or othe substances from a well; (d) inspect, take extracts from and make copies of, any document relating to any of the operati ns referred to i paragrap (a); e) with respect to health and safety 9.[person employed by a licence holder and contractor or in connection with any 0 operations referred to in paragraph (a) issue directions and impose restrictions on the licence holder or any person so employed; (t) by notice in writing, rder- (i) cessation of operations or withdrawal f any person from an area, structure or building that is being used in connection with operations referred to in paragraph (a); or (ii) discontinuance of use of any machinery or equipment which P RA considers to be unsafe until such acti n as is necessary for safety as specified in the notice, is undertaken and completed: ~g) rnakcrsuch examinations and inquiries as necessary to ensure tha the provisions of this ct, and any direction issued, restrictions imposed or orders made under this Act, are being complied with; and (h) obtain and record state ents from witnesses, and appear at or conduct inquiries held rega ding accidents occurring in the course of any of the o erations refe ed to in paragraph (a), and app rat inquests, and call, examine and cross-examine witnesses. ,. (2) Before exercising any of its powers under subsection (I), if there is any person present who is on appears to be in .. ~ II.! • - charge of the area, structure, vehicle, vessel, aircraft, building, machinery, equipment or matter or thing in respect of which the power is about to be exercised. PURA or authorised officer shall identify himself to that person and to any other person to whom he is about to give an orde or a direction. "1 - - (3) Any person who is aggrieved by a decision, direction or order of PUM or an authorised officer made under this section may appeal in writing to the Board or, in the case of a • decision, direction or order made by PURA, to the Minister who shall, as soon as practicable, hear'and dispose the appeal, but the bringing the appeal shall not affect the execution and operation of the decision, direction or order appealed from pending disposition of the appeal. (4) Where appeal is lodged under subsection (3), PURA or the Minister may rescind or affirm the decision, direction or order which is subject to the appeal or, make a new decision, direction or order in substitution thereof, and such decision, direction or order shall not be subject to further appeal. (5) Lnexercising his powers under subsection (1), PUM or an authorised officer may be accompanied by any person who PORA or the authorised officer; believes has special or expert knowledge of any matter being inspected, tested or examined. (6) A person who is an occupier or in charge of any building, structure or place. or in charge of any vehicle, vessel, aircraft, machinery or equipment referred to in subsection (1), shall provide PORA or an authorised officer with all reasonable facilities and assistance including means of transport " Sub-Part VI Surface Rights Right to graze 110.-( 1) The lawful occupier of any land in an exploration stock or a development area shall have the right to graze stock or cultivate surface of land if the grazing or cultivation shall not interferes with exploration or development operations ill such area. (2) The lawful occupier of land in a development area shall not erect any building or structure in the area without a written consent of a holder of development licence concerned, • No.21 The Petroleum Act 2015 and if the Minister considers that the consent is being unreasonably withheld, may gjve his conse t to t e lawful occupier. (3) The rights conferred by a licence or an instrument or consent or permit shall not be. exercised so as to affect the interests of any lawful occupier of land subject to proper conduct of ope ations pursuant to the licence or instrument of consent. 4) With lit limiting the generality ~f subsection (3) a person carryin on operations under a Iicence or consent or permit shall not take action that in any way inter eres with- (a) fishing; (b) navigation; or (c) an other operation. cing lawfully carried on, by way '-i of exploration, recovery or conveyance of petroleum or minerals, unless he gives prior notice in writing to URA of the expected nature.and duration of such interference. Ccmpensation.for 1.11.-(1) Where, in the course of exploration or disturbance of rights developmen~ operations t)1e licence holder and contractor ~ interfere with the rights-of the lawful ocoupier o:£.any land or cause damage to any crops, trees, buildings, stock' or worJ.(s thereon, by virtue of which operations are carried out, the licence holder shall be liable to pay to the lawful occupier fair and reasonable compensation in respect of interference or damage, in -_ accordance with the rieyt o~interest, if any, of lawful occupier.iri" the property concerned. (2) Where the value of any land as been enhanced by e ploration or devel pmen operations, compensation payable - pursuant to subsection (1) in respect of the land shall not exceed any amount which is payable if the val'ue thad not been so enhanced. (3) Where the amount of compensation to be Raid • pursuant to subsection (1) is in dispute, either party may refe/the matter to PURA which shall deal with in accordance with the provisions of Part Xl. I' . Rights over unalienated land

112. Where the President is satisfied that it is necessary to do so for development purposes or for purposes ancillary to • • development, the President may grant, upon terms and conditions - as the President thinks fit to the-licence holder arid the contractor- , No.21 ThePetroleum Act 2015 93 (a) a right of occupancy ofiany unalienate land; or .. • (b) rights over any unalienated land. Sub-PartVn Petroleum F'seal Reg' e Royalty on 1!3.-(1) Subject to this Act, the licence holder and petroleum contractor shall pay royalty to the Government in respect of gr~ss volUJ.L1eon petroleum recovered ar the delivery point.in a manner, - specified in the Second Schedule. (2) ,\he agreement in respect to the grani of fights may include a provision for payment of royalty in kind. (3) Where the licence hoJdei' fails to pay any royalty payable under this Act on or before the due date, PURA may, by notice in writing served on the licence holder, prohibit the removal of, or any dealings in or with, any petroleum from the u development area concerned or from any qther d velopmept.area subject to a licence held by that licence holder or from both until all outstanding royalty has been paid or an arrangement has been made and accepted by PURA for the payment of the royalty and the licence holder shall comply with the order 0 -PURA. (4) The Minister may, upon advice of ORA and by order published in the Gazette, amend. vary or alter the Second 'III Schedule. Annual fees 114.-(1) The Contractor shall pay to NOe annual fees in respect of a licence as may be prescribed in the regulations. (2) The annual fees referred to under subsection (1) shall, include- (a) acreage rental; (b) training and research fees; and (3) Revenues collected by the National Oil Company under this section and section 115 shall ,be used for purposes of enhancing development of oil and gas subsector. Bonus payment 115.-(1) The Contractor shall pay to the NOe signature and production bonuses as mal be agreed under the 'terms of the .,. relevant agreement. (2) For purposes of this section- (a) "production bonuses" means bonus payable on , !' commencement of production; and 94 ~o.21 Jhe Petroleum Act 2015 (b "signature bonus" means a single non- recoverable lump sum payment by contractor to the Government upon signi g f agreemen or any other related agreement. Payment of Tax 11 .-(J A licence holder, contractor and subcontract shall pay taxes including corporate tax, capita gain tax and other ta es applicable in Tanzania in accordance with the provisions op relevant written laws. (2) The profits resulting from any direct or indireot assignment, transfer or any other disposal of rights under the petroleum agreement regardless of the beneficiary type of transaction shall be subject to taxes at rates prescribed in the relevant written laws. (3) The agreemen in respect of grant OT rights shall provide for financing of the petroleum activities with a loan from a third party in accordance with relevant tax Jaws. ~4) The third party .s considered a subcontractor and shall be subject to withhqldj g tax on the intere paymen on loans. (5) PURA shall, jn accordance to the prescribed nancing regu atio s which are.in conformity with relevant tax laws, give approval for the percentage of, the loan to be, used as a portion of the total c,ru>ital. (6) Cost of any unaEproved loan shall not be treated as allowable or deductable.for tax purposes. (7) '"(he interest rate for loans shall not exceed the lowest market interest rate available for such loans. Ring fencing on 117.-(1) ~he licence holder and contractor holding an recoverable CoS! of exploration and exploration licence or more than one developing licence within a development contract area shall ring fence recoverable contract expenses. licence 2) Recoverable contract expenses in a licence area r blos!5:within the contract area may be recoverable from petroleum revenue from such development area to the extent that were incurred prior to commencement f petroleum pr duction from such development area. (3) Where the licence ~ . holder and contractor undertake an integrated project, all costs incurred by the licence holder and he COn!TaC or for the construction and operation of midstream facilities including processing, liquefaction, storage and loading faciIities shall not form part of recoverable costs under the I I • I 1:._ - t l No.2l Product"on Sharing ·f\greements, (4 O'he prudent cost and fair return on investment under subsection (3 shall be- (a) determined by PURA; and (b) recovered throug mechanisms to be stipulated in the regulation made by the.Minister. (5) or purpose of this section, "integrated project" means a project prescribed in a single development plan which - comprises of development, production processing, liquefaction, storage, transportation, shipping and marketing of petroleum. Payment terms 1 8. All payments due to the Government under this Act shall be '0 an international and freely convertible currency. Penalt for laic 119. Where a contract r fails to make payment under this payments Act on or befor the time requited. such contractor shall be liable to a penalty of a surcharge oftw percent of the amount in default RecOvery of for each day of default. -

120. Payments and taxes 'under this Act are a debt due to payments under this Act the Government and shall#i, be recovered in accordance with any other relevant written laws, Security for 121. PURA may make arrangements to ensure that a. compliance Iicence holder compl ies with the provisions of this Act and accept guarantees whether from contractor or otherwise in respect of that compliance, PURA may 122.-(1) Where PURA has reason to believe that a person require information 10 be is capable of giving information, producing or making available- furnished books or documents r.,elating to petroleum obtained from an exploration or a development area or the value of petroleum so obtained, it may in writing, require such person- (a) to furnish in writing, within the period and in the manner specified by PURA, any of such information;' (b) to attend before PURA at such time and place as is ~o specified and to answer questions relating to ,:I;; .. , ,. .. petroleum obtained or the value of petroleum obtained; or 4 (c) to make available to PURA at sue time and place as •~ - - - - is so specified books, documents, or copies, in his I • • - Ii t ..r No.21 q;he Petroleum Act 2015 custody or power relating to value or petroleum obtained. (2) A person shall not De excused from furnishing informati !.1? ~we mg a question O}; making available books or documents ~)len required to do so under this section 0'1 the ground that the information rgay incriminate him or make him liable to a penalty, and the information so furpisbed shall not b admissible in evidence against him in any proceedings other than proceedings for an offence under ection 238. (3) Where book or document is made available pursuant to a requirement under subsection (l)(c), the pers n to 20m the book or document is made available may make cop~es or take extracts'from the books or documents. FaiJurcto 123. Any nerson who- fU~~l information (a) refuses> 04 fails to c mply with a requirement under; ection 132 (0 the exten that he is capable of complying ith it' (b) in f,ll,1J)orted compliance with a equirerneat, knowingly or ecklessly furnishes infoQTl~tionthat- is false or misleadig.:~in a material particular~ (~) when a €mljpgt.,befo e p~ or any other persoll,..in pursuance of siioh a requirement, Jmowingly or ecklessly makes a statemen or produces a document that is, or produces books wllich is false or misleading in a material particular; ('12 when making availab e. boo s or documents in pursuance of such requi ement, f'10wil1gly ~r recklessly makes available books that is false or _!nisieading in a material particular, cornmi fu1 offen e.and shall t}eliable on conviction to a fine of not less than f tty mi IIion s illings 91' im risonrnent for two years or both. • No.2 ,PA1RTIV MIDSTREj\M AND DOWNSTREAM ACTIVITIES • Sub-Part-I National Petroleum and Gas nformation System • National l24.-( 1) There shall be a National Petroleum and Gas Petroleum and Gas Information Information System, also descri~ed as NrGIS which shall be System maintained by EWUR . (2) NPG S shan be a strategic planning fool for the Government and other interesfed parties and for informing the public periodi ally, about the sta us of the gas industry. b) NPGIS shalf consist of an integrated" and centralised information system containing appropriate data processing technology and covering all midstream and downstream gas activities and related installations, principal market activities, relevant statistics of the country and international reference data. (4) EVery licensee shall ~'-:Ibmit o BWORA a periodic reports and other information that would feed into 'NPGIS as may be prescribed in the'rules. ,. (5) Except for. information that protects the security of state and proprietary market data or any other confidential information as EWURA may determine, all information contained • in the NPGlS shall be available for inspection by the public. (6) ·'For purpose of this section, "proprietary market data" means data.related to intellectual rights of a licensee. (7) Without prejudice to subsection (1) EWURA shall establish and main"taina Central Registry of Petroleum Operations (CRPO) which shall form part of the NPGIS containing- (a) information on petroleum supply and use by type, quantity and region; (b) information on petroleum importation by type, quantity and source; (c) information on petroleum exportation by type, quantity and destination; (d) information on refinery products by type, quantity and source; (e) information relating to petroleum or petroleum products jn transit; (f) a record 6f all licence applications, grants, variations, . , transfers, suspensions and cancellations; and • 98 No.21 Jhe ,fefroleum Act 2015 (g) all relevant infojmation on the holders and their operations and installations. Sub-Part I ~xclusive rights ofithe aggregator Exclusive rights 1,25.-(l) The National Oi I Company shall designate one of o the aggregaror its subsidiaries to be the aggregatgr. (2) The aggregator shall have exclusive right to purchase, collect and sell natural gas from producers, provided that, the exclusive rights of the aggregaton shall not' extend to a ural gas that is preserved or export purposes in the form of Liquefied atural Gas. (3) The aggregator shall apply to EWURA for a licence before exercising its right under sub-section (2). (4) Notwithstandin the provisions of sub-section (2), the producers may sell natural gas to any other person after obtaining consent from the aggrcgatqr Sub-Pact 111 Approval for Construction of Petroleum Infrastructure Application for 126.-( I) Any person intending to construct a petroleum construction approval installation or petroleum carriage facility shall apply in writing to E RA for an approval. (2) The National Oil Company shall apply to EWURA in a prescribed form to onstruct gas infrastructure. -- . (3) An application under subsection (2) shall: (a) state the name and address of the owner of the ··proposed gas infrastructure; •- (b) be accompanied with three copies of plans and information on specifications, location, type and I • tor capacity the proposed infrastructure; (c) contain a detailed project plan including, capital L • -- expenditure, financing ,Plan, financial justification, - I .. " local content plan and project schedule; ~ (d) in the case of a pipeline, specify points between .~ - which the proposed pipeline is intended to run and the I • •• full delineation of i right of way; • .. , " • - • Hi It • No.21 The Petrole on /lCI 2015 99 (e) state financial and technical strength of applicant in the gas industry; and (f) provide other details as may be prescribed by EWURA. (4 EWURA shall, ef re granting approval, consider: (a) relevant Government laws, polici s and plans; (b) technical and financial capability 0 the applicant; and c) any public interest which in EWURA's opinion, may be affected by the granting the approval. (5) EWURA shall, within thirty days from the date of receip of an application, notify the applicant in writing of the approval of application. Prohibition for 127.-( I A person shall not constru t a gas infrastructure constructlon of gas infrastructures or petroleum installation without approval of E~. (2) A person who contravenes sub'section' (1) commits an offence and upon conviction shall be liable to a fine of not less than twenty million shillings or to imprisonment for a term of not Lessthan three years or both. Grsnt of 128.-(1) Where after evaluation of the- ~plication, construction approval EWURA is satisfied that the applicant has complied with all requirements for grant ofrhe application, the EWU~A shall grant .. the application and approve'construction sought to be done . (2) The construction approval shall be made in a prescribed form and may contain conditions as EWURA - considers necessary and appropriate. (3) EWURA shall cause to be published m, the Gazette a - construction approval. (4) Where a construction approval is granted with conditions tha are to be complied with before any construction activities are undertaken, the construction of any gas infrastructure shall not be undertaken until such conditions are complied with. - . • Expiry of I

129. Where the construction of works has not commenced construction 1- IIpprovlII within twenty four months from the date on which an approval s: was granted or upon expiry of an extended period which EWURA -, allowed, the approval shall cease to have effect. I -_ • ]00 No.21 ThePetroleum Act 2015 Revocation or 130.-(1) E\¥UR'A may by potice itt. writing, withdraw, suspensi~l'\..9fan revoke, su pend or amend all approval if any term or condition for approval approval has not beerucomplied with. (2) Where EWU intends to withdraw, revoke, suspend &ramend approval, i shall, ateleast within twenty-one-days be ore the date of its intention, withdrawal, revocation, suspension or amend men notify the holder of the approval of such intention specifying the reasons for the. decision to be made. (3) Notwithstanding the provisions of subsecti ns (1) and (2), EWURA may, by notice published in the Gazelle, withdraw, suspend or revoke an approval upon application or consent of the holder of an approval. (4 'EWURA may, by notice in writing, reinstate an approval that was withdrawn, revoked, or suspended if i is satisfied that the reasons for the withdrawal, revocation or: suspension do no longer exist. Sub-Bar IV Licensing of Midstream and Downstrearn.acti Yes (a) GeneraL requirement/or undertaking Mid and downstream activities APl?lication fur 131.-(1) Any person who intends to undertake a regulated licence activity shall apply to EWURA for: a licence in the prescribed manner and form, u on payment of the prescribed fee. (2) he procedure fo filing, evaluation and approval of application and documentation shall be prescribed' the rules made by EWURA. (3 An applicant for a licen e who wishes to undertake a regulated activity shall, in addition to the requirements stipulated pursuant to sub-section (2), be required to sign an integrity pledge referred to under section 222. 4) A person who undertakes a regulated activity without a licence, commits an offence and upon conviction shall be liable to a fine of not less than twenty million hillings or to imprisonment for a term of not less than two years but not more than five years or both. Consideration of 132. In considering an application for a licence, EWURA the application -- shall take into account: • .. - .. It- - The Petroleum ACt contribution of regulated activity to meet future gas needs by customers; (b) compliance of regulated activity with tRe policies of the Government; 'c) submitted local content plans based on the regulations; «1) risk analysis of the regulated activity; (e) contribution of regulated activity to competitive conditions in the gas industry; (~ social and environmental impact of regulated activity; (g) impact that regulated activity may ha e on health and safety of employees and the publ ic; (h) legal) technical, economic and financial capacity of the applicant to conduct the regulated activity; V) cost of activities and the effect on gas prices to customers; 0) participation o~Tanzanians including local companies with not less than twenty five percen participa ing shares il;\ the business as the case may be in the regulated activities; _ (k) any representations and objections to the regulated " activity made by tbe public; (I) a detailed emergency pre,Paredness plan towards any accident or incident; and (m) any other public interests that may be affected by the regulated activity. Grant of licence 133.-Q) EWURA shall, within sixty days flom the date of receiving an application, an~ if satisfied that all requirements for a licence have been complied with, grant a licence to the.applicant in a prescribed form. (2) The provisions of sections J29 and 130 (4) shall not apply to the National Oil Company. (3) For purposes of subsection (2), the, National Qil Company shall apply and be granted a licence required for undertaking any of a regulated activities stipulated under this Act. Refusal of an 134.-(1) EWURA shall refuse application for a licence if: application (a) it is satisfied that the application does not comply with the provisions , of this Act; '*. II - 'I fhe 'Petroleum Act 20IS (Q) it is satisfied that the applicant submitted false ¥ormation i relation to the a~plication for a licence; (c) the applicant 'has been convicted of corruption, money .. Iaupdering, economic c imes or tax evasion; or d) the applicant refused to sign an integr~ty p1edge. (2) Where ~WURA refuse to grant application r on a licence, it shall, within fourteen days from the date of;' tlJ.e decision, end to the applicant a notification and reasons for refusal. Conditions fOT 135.-P) A licence granted under this ACt may be attached licence with such conditions as EWU~ considers necessary. (2) Where a ~Iicence is granted by EWlJRA in circumstances that wor has to be undertaken, the licensee shan commence work of establishing facilities within the time limit set out in a licence. (3) Where the terms of subsection (2) are insufficient to complete the work, EWURA may, uyon request by the licensee, extend the time within of completing such work. - (4) The licensee shall comply ~'th all ,necessC!1)' Cap. 191 environmental management requirements as' '!>[ovideCi\or under the Environmental Management Act. ., Inquiry 136. EWURA shall, before issuing, modifying, suspending or revoking a licence, conduct an inquiry. Validity of 137. Unless otherwise revoked or suspended every licence granted under this Act shall be valid {or a period of up to licence twenty-five years depending on the type of a regulated activity. Application and 138. EWURA shall prescribe fee to be paid by an licence fees applicant for a licence or a licensee, for a licence applied for or .. granted under this Act, and may impose an addition fee for transfer or amendment of a licence. '. Assignment and 139.-(1) A licence shall not be assigned to, or transferred .. transfer of licence from a licensee to another person without approval bfEWURA. " - .- - (2) A 'person who int~nds to transfer a licence shall file an - application to ~ accompanied with evidence of compliance of the provisions relating , to quality and standards - t - ! ..... ....-.= --F- The Petroleum Act 2015 103 referred to in this Act. (3) Where the applicant fails to comply with the • requirements for a transfer by reason of insufficient information in the a plication, EWURA sbaU within seven days, notify the applicant on such insufficiency in the applicatio and direct the applic~t to correct the deficiencies within thirty days. (4) EWURA shall reject an applicati n if the ap licant fails to comply with directions of EWtJRA issued pursuan to subsection (3 . (5) Where the applicant complies with the requirements for transfer of a licence pursuant to subsection (2), EWURA"shali within sixty days, authorise the transfer of the licence. Modification of 140.- I) ~WURA may, on its own motion '\.,or upon licence application by a licensee, modify terms and conditions of a licence. (2) 1Il the event EWURA act on its own motion, it shall issue a notice of at least' sixty days to the licensee informing the licensee on its intention to modify the licence. (3) The manner for effecting modification of a licence in accordance with sub-section (1) shall be as prescribed in (he rules. (4) here a ne d arise for expansion of throughput capacity in a transports Ion licence, modification of a licence shall not be required and the licensee shall seek consent of EWURA within three months before the commencement of expansion. (5) Where capacity is increased by construction of pipelines, modification of-the licence shall be required.

141.-(1) A licensee wh wishes to renew licence may, at least two years before expiration of licence. apply to EWVRA for renewal of a licence. (2) A renewal of a licence shall be granted for a maximum period of fifteen years, or for such longer period as may be determined by EWURA. (3 For the purpose of subsections (1) and (2), the procedure for renewal of licence shall be as prescribed in the rules.

142.-(1) EWURA may suspend a licence if a licensee violates terms and conditions of the licence, regulations or any other written law relating to protection of occupational health,. I , I ., 8. p I• pubJJp safe y or envir~nmental management (2) Upon suspension of a licence, EW1,JRA sbaJJ specify in writing t~e period of suspension, during which a Ijc~ce shaJI be'of no legal foroe or effect. Revocation of licence 143.{12 EWURA shall revoke a licence where the • ... licensee: (a) violates any of the provisions of this Act-or conditions attached to the licence whJ.ch af~ts the conduct ~ t 1 I I'ijulated activity; (b) obtained a licence by fraud or deliberate submission of false information or statements; (c) fails to complywith obligations conferred within the terms stated in the licence; (d) persistently fails to comply with the approved local content plans; (c) interrupts services to other users without authorization of EWURA; ('1) carries on, business in a manner that is detrimental to the welfare or interest of other users; (g) violates the tariffs, rat¥s and charges established by ,.. BWURA; (h) persistently fails or refuses to submit information to the NPGIS; (i) fails to comply with the applicable ,health, safety, service, quality or environmental standards, or any other additional standards as may be stated in the licence; or U) is convicted or found guilty of an offence relating to corruption, money laundering, economic crimes or tax evasion. (2) Upon revocation ofa licence, EWURA shall notify the licensee in writing the ~evocation and effective date of the order from which the licence no longer be of any legal force or effect, (3) A licensee shall, within fourteen days after receiving the order of revocation, return the licence to EWURA. •, Continuity of service incase of transfer or

144.-(1) In all oases of transfer, a licensee shall ensure continuity of service and shall not suspend operations until such .' revocation operations are taken over by a new licensee who shall acquire the televant system. No.2] 2015 (2) \\1here EWURA revokes a licence" it shall, after consultation with the 'Minister, take necessary steps °ensure continuity of the service, (3) Without prejudice to the provisions of subsecrion (I )" a change of ownership of a firm or any other establishments in relation to which a licence has been i sued shall require approval ofE\VW~. Prohibition of 1145.-(1) A, licensee operating under EWURA of this Ac certain acuvitie and separation 0 shall- accounts (a) maintain separate financial accounts in respect of regulated activity; anq (0) any other usiness activities. (2) BWURA shall make rules prescribing the manner in w 'cb financial accounts shall be maintained, audited and published. (b) Specific requirements for undertaking Nji~an"d downstream activities (i) Processing, tranSRO,1Gtionand storage; licence Processing, J_46. 'EW RA shall-gran] a processing, tJ;_at;l§_Portation or Transportation and storage storage icence- if i .s saris led that the ap~licant bas- (a) taken into account ture development 'Of the gas indus~ a d itsJ>0te ~a (9r comp.~i~:J;l;_ (b5 sufficiently dem_on'strated assessment and accornrnpdatio 0 potential future markc; developments in the application for a licence' and c) declared du ing application that a g s processing facility shall be located onshore. third party access 147.-(1) Each prQcessing licensee shall: 10 precessing facilhies (a)'provide to third parties access to such li<;.ensee's gas processing facilities without dis rirnination and n commercially reasonable terms, except where: (Q suff ien available capacity in the licensee' gas processing facilijies does not exist (0 atisfy third partY requirements; and ii) there are unsolvable technical proqlems that prevent the utilisation of the licens e's gas - -- -,J. 106 No.21 The Retroleum Act 20)5 froc~ssing facilities to satisfy third party equirernents; (b) increase, if the available capacity of such licensee's gas processing facilities is Insufficient to • accommodate third party requirements, the capacity of such gas processing facilities' order that the third party requirements can be satis led on commercially reasonable terms, except where- "I~ (i) such expansion shall hav an adverse impact on the technical integrity and safe peration I -. of gas processing facilities; and • (ii) tbe third parties seeking access to the gas processing facilities have no sufficient funds to support the cost of the increase in capacity. -• (2) The Minister may, under special circurnstances and -• • upon advice of EWURA> waive obligations prescribed in subsection (1) if a licensee made all reasonable efforts to accommodate requests by third parties, demonstrate that it is not technically or economically feasible to provide' access to or expand the capacity of the licensee's gas processing facilities. (3) The terms and conditions under which access to a , .. licensee's gas processing facilities 'is granted or the capacity of such gas processing facilities is to be undertaken by private contractual arrangements shall be negotiated in good faith, by the licensee and the third party seeking access. (4) Where a licensee and a third party seeki ng access to, or an expansion of capacity of a licensee's gas processing facilities ar unable to conclude an' agreement as to the terms and conditions of such access or expansion within a reasonable time, either party may request the Minister to establish reasonable terms and conditions of such access or expansion of such facilities. (5) A licensee 'shall make available to interested third parties, on a non-discriminatory basis, relevant historical data for the licensee's gas processing facilities in order to facilitate negotiations of commercially reasonable terms for third party ... ". I access . • - Location of gas 148. All gas processing facilities shall be located onshore. . processing • facilities II 1 ... I, •. • . " ~ 'I I !.. , ". -•.,.,... .t No.21 The Petroleum Act 2015 107 Transportation 149.-( 1) A trans rtation licensee sail: system and third party access (a) provide transportation services to third parties in order ~. to allow gas to JJe supplied to any buyer or eligible end-user wherever requested at such tariffs, rates, charge and terms and conditi ns as rna be prescribed by ~WURA; (b) provide inter-connection services to any other regulated activity licensee or to any downstream operator as may be necessary to provide access to its transportation facilities; and (c) increase the capacity of its transportation facilities when such facilities are insufficient to accommodate, n commerciaJly reas nab Ie terms, the req ests of third parties pursuant to paragraph (a), if- (i) such expansion does n t have an adverse impact on the technical integrity and the safe operation of the U ensee's transportation facilities; and (ii) the third parties seeking access to the transportation facilities has sufficient funds to support the cost 0 the increase ilJ capacity. (2) EW\)R..I\ may, under special circumstances prescribed . 1 the regulations, waive any of the obligations provided for in subsection (1) if a transportation licensee has satisfied ~WURA that it is not possible for -the licensee, to provide access to, or expand the capacity 0 transportation facilities. (3) The transportation licensee shall ensure that all access or proposed access-related changes to a transp rtation system are technically feasible and commercially viable and does not negatively affect a pioneering upstream operator's cash flow or ability to deliver on contractual commitments. (4) Obligations stipulated under subsection (I shall apply to all systems, regardless of whether such systems are interconnected systems or are non-interconnected systems. M'cthods and 1~O.-(I) A Iicensee for midstream storage faciIity shall: pract ices for storage (a) provide service:) to duly authorized persons; (0 provide, without discrimination. storage services upon request; • I I ~ 108 No.21 The Petroleum Act 2015 (c) provide transhipmenr'o gas to authorized persons; and (d) obtain approval of EW1JR{\.for tariffs charged. (2) The methodology to determine the tariffs' for the . , midstream st9rage services shall be prescribed in the regulations, and shal take into account investment costs, operational and "• maintenaiice costs, or other costs incurred in the operatio of the facility and an equitable reward for invested capital. Strategic storage 151.-(1) Without prejudice to regulatory powers of of gas EWU1}A, the right to store gas shall, 'for strategic reasons, be vested to the National Oil Company on behalf of the Government. (2) Subject to subsection (l), the criteria and other details of award a storage licence shall be prescribed in the regulations. • (ii) Liquefaction, Shipping and Re-gasification Licence I Conditions for liquefaction

152.-(1) A liquefaction licence shall be granted for each specific facility in accordance with general conditions for award of licences to be prescribed by the Minister in the regulations. ! -. (2) A liquefaction licensee shall: a) operate, maintain and develop a safe, reliable and an efficient liquefaction facility; (b) connect the liquefaction facility to a transmission .•. I system pursuant to the rules to be made by PURA; •• (c) establish and secure the work of a dispatcher centre for the operation of the liquefaction facility, the system of measurement of inflows and outflows and the gas quality parameters; t (d) secure objective, equal and comprehensible condition, of access to -the liquefaction facility pursuant to this Act; (e) prepare and submit for approval by PURA a disaster , management plan and implement such plan as required by rules made by PURA; (f) prepare and submit to PURA for approval a • liquefaction facility de~elopment plan; . (g) prepare and submit to PURA for approval an annual - - financial plan; ~d (h) on annual basis, prepare and submit to PURA an annual report in a form perescribed in the rules. • • tI_ No.21 The Petroleum Act Conditions for 153.-(1) Shipping o~:patural gas shall be ca ied out sbippmg natural gas following the grant o~ a shipping licence by PURA and in consultation Withother relevant authorities. 2) The criteria and d~tajls for award ofia shipping licence shall be prescri bed in the rules. Conditicns for 154.-(1) Re-gas~ation shall be carried out lj"f}de~a re-gasifkation licence granted by PURA in consultation with other relevant a~thorit~es. (2) The oriteria and other details for award of a re- gasification licence shall be as prescribed in the regulations. (3) A re-gasification licence shall be granted for each specific facility and a defined capacity in accordanc with the general conditions, for award of licences provided fon under general requirement for undertaking mid and downstream ~ct.ivjJies. (iii) Distribution licence C9nditions for 155.-{ l) An application for a licence for distribution. of di~bution gas shall, W add~tion lo.any other irifor~a~~onas may be x;equ' ed by IBWURA and subject; to the provtsions for under general requiremeiit for undertaking mid and downStream activities, specify:' (a) 'b type oj. service for which the licence is being sought; and (b~ a terdtory in which gas shall be distributed. (2) {EWURA shall, after an Inquiry as it may consider appropriate and subject to such conjt,ions as it I~Y impose, grant a licence for distribution of gas. 3 EWURA sl all in graqting distribution licence, take into consideration the Gas Utilization Master Plan. (4) A distribution licensee shall- • • (a) provide distribution servi~s to third parties in order to allow gas to be supplied tq any eligible end-ilser and whenever requested at such tariffs, rates, charges and terms and coiiditions as may be prescribed ..by EW1JRA; (b) p ovide inter-connection services to any other regulated activity licensee or to any upstream operator as may be necessary to provide access to itS systems -.,. - 2015 -r at the tariffs, rates, charges and terms and conditions prescribed by EWURA; and (c) increase capacity of its distribution facilities when such facilities are insufficient to. accommodate on commercially reasonable terms the requests of third I parties p'tirsuant to paragrapb (a, if- (i) such expansion does 'not bave an adverse ,,~, . -- impact on the technical integrity and the safe j • operation of the licensee's distribution facilities; and (ii) the third parties seeking access to tbe distribution facilities have sufficient funds to. support the cost of increase in capacity, (5) EWURA may, under special circumstances waive obligations set forth in subsection (4) if a distribution licensee makes all reasonable efforts to accommodate requests of the third parties, satisfies EWURA that it is not possible to provide access to or expand capacit);.of the licensee's distribution facilities, (6) All access or proposed access-related changes to a I distribution system sball be technically feasible and commercially viable. (7) A distribution licensee shall: (a) operate, maintain and develop a safe, reliable and efficient distribution system; (b) connect to the distribution system eligible end-users and end-user customers subject to the rules made by EWURA; (c) establish and secure the work of a dispatcher centre for the operation of the distribution system, measurement system, the system for monitoring gas quality parameters and gas delivery quality parameters and devices for gas odorisation; (d) distribute gas on the basis of signed contracts; (e) prepare and submit for approval to EWURA the disaster management plan and implement sucb plan as I. required by rules made by EWURA; (f) maintain gas quality parameters and gas delivery " quality parameters pursuant to this Act and the Standards Act; (g) secure objective, equal and comprehensible conditions for access to the distribution system No.21 The Petroleum Act 2015 \l pursuant to t~s Act; (h) secure, at the level of the distribution sy-stem, measurement of gas consumption, including meter reading aILddata delivery necessary for the balancing of gas system to the aggregatot pursuant to the Act; (i) provide stipulated information to the aggregator, and the related distribution system operators, with a view to safe and ef,ficient functioning and development of interconnected systems; (j) provide stipulated infoQl1ation to gas market participants whose equipment is directly connected to the distribution system sufficientl in advance, on the volume and the date 0 the cessation of gas istribution and the expected reduction of distribution capacities; ( ) prepare and submit to EWURA for ap roval, the distribution system development plan; (D prepare and submit to :r;WURA for approval, the annual financial plan; and (m2 on annual basis, prepare and submit to I3WUR an annual report in a form prese ibed in th rules. Code Of practice 156.-( I) A distribution Iicensee shall, within six months and performance standards from the issuance of licence for distribution of gas, prepare, and make available for public inspection, codes of practice specifying the mann r and procedure for metering billing and collection o( licensee's approved charges for disconnection in case of non- payment of charges, theft bf gl:lSor usc of gas or purpose other than that for which i was supplied and procedures for reconnecrion and recovery of arrears and other charges. (2 A distribution licensee.shall.comply with performance st~ndards for distribution 0 gas including safety, health and environmental protection instructions issued by EWURA or any other relevant Government entit . Sub-Part"V General obligations of Distribution and transportation Licensees - ~ Obligations of 157. A transportation and distribution licensee shall: distribution and transportation (a) operate, ma.n;tain and develop under economic ~ licensees conditions a secured, reliable and efficient system-with I II. • • I 2 l'lo.2~ The Petroleum Ace 2015 due regard to environment: (b) not discriminat system users or classes of system users, particularly in favour of the interests of such transmission or distribution licensee or its afJIliates; (c) provide any other licensee with sufficient information to ensure that the transportation, distribution and - storage 0 gas takes place in a manner compatible with the secured and efficient operation interconnected system; and (d) provide system users with necessary information for of the • efficient access to the system. System 158. Whe e- transportation or distribution licensee is balancing responsible for balancing system, guidelines adopted for that purpose including guidelines for charging of system users for gas I imbalance shall be objective, transparent' and non-discriminatory. Obligations 159. or the purpose of this Sub Part, a licensee shall- relating to safety (a) within twenty four hours, notify EWliR.A and any Ie evant authority of any hazardous event resulting from a regulated activity that may endanger ~ublic health an safety, and such notice shall include a statement of possible causes 'Of event and measures taken or proposed to be further taken to address the - - - hazardous event; (b) within ten days after a hazardous event has been contained submit to the Minister and EWURA a detai led report on the reasons for such event and measures taken to control the event; (c) in case of emergency or disaster, provide assistance requested by the relevant authorities and maintain a I~g book for supervision, o~ration and maintenance of works and facilitie make available at EWURA's request; (d) submit annually, a programme consistent with .. ~ applicable 10caJ and international standards for .. - maintenance of the licensee's system, and certify ' -- compliance with such programme in accordance with an accredited verification unit; ~. I I· • No.2l The Petroleum Act 2015 (e) train personnel for purposes of preventiort and response to accidents and disasters; and (f) comply with any other obligations issued by a relevant .•. authority . Service 160. Every licensee shall- obligations (a) PJovide efJicient and effective services consistent with the principles of uniformity, homogeneity, regularity, safety, timely and continuity; (b) serve prompt notice to EWURA concerning any event t at implies modification of conditions for provision of service; (c) timely, publish and provide infq_rmation concerning available capacity and capacity that is no contracted for, as may be specified in the ru es; (d) keep and maintain customer service register to receive complaints and emergency reports; (e) give attention to emergency rep rts made by end-users without undue delay; (f) in a timely manner, report t EWUR an circumstances that adversely affect r may adversely affect the provision of service; (g2 avoid any discriminatory practices; (h) obtain and maintain an insurance as may be prescribed in the licence, sufficient 0 cover liabilities that may arise; (i) adhere to approved l5'cal content plan; and U) respond to requests for service by transporters, within one month of receipt of such request and for distributors, within ten days of receipt of such request. Sub-Part VI Appro al for Importation Exportation and Tran it for Petroleum and Registration of certain activities Activities 161.-( I) Notwithstanding the provisions of sections 124 requiring registration and 125, a person wh<l,wishes to engage in the importation of natural gas or any activities prescribed ill the Third Schedule to this Act s~lI be required to apply to EWURA for registration. (2) The procedures for registration shall be prescribed in the rules. 114 No.Zl The,Petroleum Act 2015 Approval for 162.-(1) A person who intends to import, export or transit import, export and transit of gas natural gas shall in writing, apply to ~WURA or approv~. (2) EWURA shall, upon consultation with other relevant authorities, issue approval for import, export O( transit of natural - gas. (3) Criteria and all other details for award of approval for import, export or transit of natural gas shall be prescribed by the I Minister in the regulations. (4) An approval of import, export or transit of natural gas II- I. • shall be granted for a specific facility and a defined capacity. ..._ Sub-ParrVll Tari ffs, rates and charges Determination of 163.-(1) Tariffs, rates and charges in a competitive tariffs, rates W1d charges environment shall be determined by market forces. (2) Where the Minister, on the advice of EWURA • - determines that: (a) a particular' regulated activity is a monopoly service; ,r (b) competition has not yet developed to such an extent , that protect interest of customers; or (c) a particular licensee is a dominant provider, the Minister shall direct EWURA to regulate tariffs, rates and charges in respect of such activities in a manner that is consistent with this Act. ..~ ' . (3) EWURA shall, after consultation with the Minister responsible for gas, 'Prescribe rates, tariffs, charges, terms and conditions pursuant to which regulated activity is offered if such regulated activity is supplied, performed or undertaken in: (a) processing of gas; (b) transportation of gas; (c) storage of gas; (d) distribution of gas; (e) re-gasification; (I) supply of gas to end-users that are not eligible end- -- users, including the marketing of such supply to end- users that-are not eligible end-users; and (g) subject to subsection (4)(c). shipping of gas. e4) For export purposes, tari ffs, rates and charges levied in connection with the supply, performance or undertaking of regulated activity, and the terms and conditions under which such . No.21 The Petroleum t'Act 2015 1'15 • regulated activity is 0 ered is regulated by EWURA regardless of I I I.. , ,. whether such regulated activity is supplied., performed or undertaken in- .I (a) processing of gas; (b) transportation of gas; (c) storage; and (d) re-gasification. (5) Ln the case of licences for supply, performance or undertaking 0 regulated activities pursuant to subsection (3), . EWURA shall ensure that yrocedures for review of the rates, • tariffs, charges. terms and conditions are prescribed in the licences or in the"'rulesissued by EWtJRA. , ... • • (6) The procedures stipulated under subsection (5) shall include: (a) a timetable for the consid ration of tariffs, rates and charges applications to EWVRA: (b) opportunities for customers, local private sector and • other interested parties to participate meaningfully in the tariff approval proc ss; • - (0) procedure for: (i) reporting of financial and tecllnidl information' ii) ring fencing; Qii) accounting and cos recording; and (iv) public notification 0 tariffs, rates, charges, terms and conditions approved by EWURA. (7) In determining tariffs, rates and charges that licensee may levy. EWURA shall ensure that licensee, is permitted to recover prudently incurred costs in the opcration of the business on an efficient basis, including provisions for capital depreciation, and return on capital employed. (8) GWURA may authorise tariffs. rates and charges tha deviate from the principles specified in this Act and involve subsidies or other non-fiscal measures where EWURA is satisfied that the undertaking is adequately compensated from s me other source and means for recovering such compensation are specified, (9) The supply of gas to end-users and buyers shall be go erne by negotiate-dcommercial agreements between a supplier and a buyer or an end-user taking into account all relevant tariffs, rates and charges as set ourby EWURA. The Petroleum Act 'Inquiry • 164. EWURA. shall befo e determining tarlXfs, rates 0 • -• - I charges for natural gas, conduct an inquiry. • Sub-partVm • ••• Pricing Mechanism (a) Determination of gas price Determination of 165.-(1 The pricing of natural gas shall be in accordance gas price with method prescribed in the regulations and shall" take into account' international best practices. (2) Without prejudice to the provisions of sub-section (I), the Minister shall ensure that: (a) the pricing structure provides' incentives for promoting investments while sustaining supply and demand for natural gas; (b) natural gas prices to strategic industries and households are affordable andjJredictable; (c) an 'appropriate pricing structure ....is in place which encourages economic use of system capacities in the natural gas value chain; and (d) gas pricing takes into account the Natural Gas Utilization.Master Plan. (b) Determination of petroleum pricing - Monitoring of petroleum and petroleum product

166. The prices for petroleujn and petroleu products throughout the supply chain shall. be governed! by rules of stlp,1?ly • • prices 3.9d demand subject to the provisions of the Energy and Water .... CapAl. 4 and 285 Utilities Regulatory Authority Act and the.Fair Competition Act. , Imposition of 167.-(1) There shall b a fee to be known'as the petroleum petroleum fee fee. ._.I (2) The petroleum fee shaJI be charged on petrqleum products in a.manner prescribed in the regulations by the Minister upon consultation with the Minister responsible or finance. 13) The fee shall be collected by the Tanzania Revenue Authority or such other ins itution as may' be prescribed by the inister and deposited in the und Account established for the purpose of energy developmen . No.~ The !?etrolelim Act 2015 117 Sub-Part IX Petroleum Supply Operations (a) Importation • Efficient 168.-(0 A person shall not impor petroleum products ~rocuremell unless the iOlportation ls conducted through efficient W"ocurement.. (2) The efficient procurement referred to in subsection (I) shall include conditions or requirements as the Minister may prescribe. Petroleum and J69. Petroleum products imported pursuant to this Act pelTol~um product shall comply with specifications as the Minister may; by specifications regulations, prescribe.

170. EWlJRA shall establish J1ro~edures for off-loading of petroleUl1J. ang, et[oleum products b~ Taking into consideration- (a) sensitivity of prodpct; Jb) national stock position' and ru 1l0n-disorj:minati9ffw:pongS licensees. PenaltY. 71. !'Any person WHocontravenes any,P,rovisions under, this Sub.gart commits an offence an&shaU be liable on conviction to a fine not Jess t.9an fbovelrilllion shillings or tWMty perc!llt of the value of-the total consignment'- hichever amount is greater or to iQ1priso] lent for a erm no exceeding' two years or to both. (by,lrcmsportation ~Vehicle'svessel's 172. A person shall nQi ira sport pe'r9leum product using standards vehicle, vessels or facility emless such vehicle, vessels or facility complies with the standards set ur by rhe.o.:ranzgl1'iaB\reau of Standards. Petroleum and 173.-(1) Any petroleum product intended for export or pelf leu In produots to be designated rpr specific project s all be directed or used for such used for intended purposes. . purposes (2) For die purposes of subsection (1) the term-, (a) "export" means the taking of petro eum or petroleum ,, products outside boundaries of the United Republic 118 0.21 :the Petroleum Act -2015 and includes the taking of such petroleum or petroleum 'product form one point to another within the United Republiq; and (b) designated specific project" means projects C undertaken witbin the U ited Republic in respec of which there i agreement for exemption or remission of taxes or toll. Penalty 174. Any person w&o contravenes this Part commits an offence and shall be liable on conviction to a tine of no less than ..t - • two million shillings for every day during which the contravention occurs or continues and the court may order f rfeiture of the petroleum "or petroleum premises, vessel or vehic e used in the contravention q,f the offence to the Government or otherwise dealt with in stich other manner as the I Ships to take '.- court may deem proper -- •• precautions

175.-(1) Any person who owns or commands a ship carrying petroleum product within a port shall observe such precautions as may be required in the applicable laws. • (2) Any perso who o~s or commands a ship, and who • • -_ ~contravenes subsection (I) commits aD offence and shall, in addition to the 'penatty prescribed under the applicable law, be liable on conviction, to a fine not exceeding five miI~0f. shillings or imprisonment for a term not exceeding two years. ' - • J • ... • iii • • (c) Transformation • • Relining of petroleum

176. A person shall not distribute petroleum product I unless such product has ~een transformed in accordance with the • Blending or biofucl specification made by the Minister. 177.- 1) The Minister may, by regulations, make • specification of petroleum ptoducts for the blending of biofuel and synthetic fuels and lubricants. (2) Any person who contravenes the specificati ns referred to under ubsection (1) commits an offence, and shall be ~~= liable on convie ion to a fine of not less than ten million shillings r--- or twenty percent of the' value of the total consignment, whichever amount is greater or imprisonment fa a teQJ1not less than 'five years or to both. Ii-. No.21 The Petroleum Act .-. 119 (drStorage Storage of 78.- ) Every person storing petroleum products shall petroleum or petroleum ensure that the petroleum products are stored in accordance with products the licence issued by EWURA. (2 Any unused capacity may be open. to other licensees in the manner stipulated in the rules issued by EWURA. (3 Any person who contravenes the specifications refereed to under subsection (1) commits an offence. and shall be liable on conviction to a fine of not less exceeding five million shillings for every day during which the contraventi n occurs or continues and the court may order forfeiture of the petroleum, premises, vessels or vehicle used to the Government or otherwise deal with in such other manner as it thinks proper. (eJ Distribution Petroleum 179.-(1) A person shall not distribute petroleum pr,.9ducts products to conform with unless such petroleum products conform to the quality, safety and qualit . safety and environmental speci fication set out in the re lations made by the envirqnmem Mipi er. speci fication (2) Subject to subsection (1 ) any person who- (a) tampe s with the quality of: petroleum products· (b) conducts petroleum.products business without safety equipment; or (c) sells petroleum or petr leum pro~ucts in unauthorized premises, commits an offence and shall be liab e on conviction to a fine of not less than five million shillings or to imprisonmen for a term of not less than three years or both. Recovering of 180. otwithstanding any Ptovlslons of this Part, the petroleum products Minisie may, in c nsultation with EWURA make regulations prescribing the method whereby petroleum products unfit f r usc can be recovered. (f) National Petroleum Emergency Su/!,ply Plan National 1 1.-(1) The Minister may, for purposes of responding to Petroleum EmergencY' accidents: natur disasters or other interruptions or distortion of Supply Plan the pe roleum product supply, cause a Petroleum mergency 120 No.2! The Petroleum Act 2015 • Supply Plan to be prepared in close co-operation with other competent Government authorities and the participants in the ,_ suVPly chain. (2) 1'0 the case of' emergency for reasons referred to in • subsection (1), the Minister may teJ~orarily intervene in the supply chain or imJ;>lement'othermeasures or restrictions provided .._ ~ for in the Petroleum Emergency Supply Plan ~ (3) Measures under subsection (l) may also be taken in .. the event that participants in the supply chain are seriously endangering the functioning of the competitive s ppJy' system by tryin'g to establish mo;opolies or to control segments of th~ market. (4) The 'details .of the elaboration, content and implernentatioii of the Plan shall be made in the regulations. Maintenance of 182.-(1) The Minister may for the purposes of ensuring Minimum stock strategic reserve reliability of supply of petroleum and petroleum products in the country cause strategic reserves of the 'petroleum products to be majntain~d in 'sufticien{ €juantities and at a l~cation that the' - •- Minister deems proper. (2) For the purposes, of reliability ahd continuity ofithe , l petrole,pm supply wit1lli? the country, the Minister, may after m consultation wlt~EWBRA and by the o,&der the Gazette)di!;,.ect all licensees, including industrial customers buying directly from , - whole seller distributors, to maintain at their own expenses , minimum security stocks of ':lPetroleum or of all or certain petroleum.prqducts in their custody. • ..... (3) NVithout prejudice to subsections 0) and (2) the Tanzania Petroleum Development Corporations shall at all times keep and maintain national reserve of petroleum and petroleum ..~...- _. ~".. products. _ - ,,.,. Prohibition - Sub-Part X Assurance of Fair Competition .-

183.-(1) Subject to the.,provisions of the Energy and Water .....• against activities contrary to Utilitie"s":RegulaforyAct, . all petroleum ~ upplytoperations shall D~ prinCiples of fair subject to the provisions; of the Fair Competition Act il1lrelation competition to- Ga~.414 and 285 (D he (ol1uatiQn of cartels; to (ii) barriers entry and exit: .. No.2! The Petroleum Act 2015 121 (iii)abuse of dominant position and market po~er; (iv)formation of mergers and acquisitions for anti- I •• competitive purposes; , ... I '. I ~ ,,~ (v) attempts to control prices; (vi)tbe creation of artificial shortages 01' products or services; and (vii) other restrictive trade practices as defined in that Act, with intention to contravene the principles of fair • competition or impeding the functioning of a free market for petroleum products within the country. • • Cap.285 (2) Subject to the provisions of the Fair Competition Act, all participants in the supply chain shall sell products and offer services to all interested persons without undue delay and without • any form of discrimination by means of quality, quantity, price and any other form of discrimination. (3) The Fair Competition Commission shall monitor conditions of the market and trade practices of participants in the supply chain. • Conditions for unused capacities of third party facilities

184. In order to foster a competitive petroleum products market for future participants in the supply chain, the following conditions shall apply- (a) a licensee who is the operator or owner of a facility ~ith unused capacity shall apply, to E';VURA for -.•. •• 4 approval of tariff for the use of such capacity and other reasonable terms and conditions for the use of the • facility; (b) a licensee may ffer access of unused capacity to other - users on terms and conditions as may be approved by EWURA;and (c) users of unused capacity shall hold ~ licence required for the respective operation and provide proof of his capability to pay the tariff and fulfil other financial and technical conditions as agreed upon with the owner or operator of the facility. Sub-Part XII Access to and for Installations Access to land 185. A licensee shall, subject to the Gas Utilization, Master Plan and in consultation with EWURA and such other .. 122 ." No.21 - The Petroleum Att relevant authorities, take all necessary measure to secure 2015 acquisition of rights of way for laying, operation and rep-air of gas I ' pipelines and other facilities as may be requested by the licensee. Way leaves 186.-(1) A licensee shali,1n consultation with the relevant aut~orities, acquire wayleave around existing and future gas infrastructure and petroleum installations . •• (2) Owners of property on or bordering a wayleave shall not interferejwith a licensee's acquired rights. (3} A licensee shall compensate a property owner for any Cap,118 way- [eave granted, and any dispute related (to the amount of compensation shall be settled in a\;eordance with .the Land • Acquisition Act f (4) Subjectto relevant laws, a licensee shall be entitled to the use of public roads, streets and other infrastructure for • I ptu',Pbies of laying, conntcting, running dr maintajning gas I - • distribution systems and anyother installations as EW'URA. may ap?rov;e. ;PARTV D0WNSTREA~ CESEA'FION'OF PETROLE~~~S\REAMAND ACTIViTIES . ., • fa) Cessation a/Petroleum Operations • II Decommlssioning 187.-(1) A ~cence holder shall su.5fuit a decgmmissioning plan plan ih PURA- -- (a) before a petroleum productioi licence or a ~~ci:fic .!lcerlse to in~tall and operate facilities expires or, is sW'fendered; or (b) .se~ore the \ISeara facility is term~ed permanently. (2) The decommissioning plan referred to under -_ subsection (1), shall be suqroitfed to £lIRA at least five yea's befcre the timer when' the use of a fad lity is expected to be • terminated permanently unle~s the PURA di5ects otherwise. (3) Th~ plan refen; d to in subsection, (]) shall contain proposals for contirui d p eduction or shut down of production, decommissioning of facilities and any other inforillation presoribed in the regulations. (5) Thedecon:1l11i'ssioning0ffacilities referred to in ThePetroleum Act 2015 123 subsection (2) may constitute furt~er use 0 the facilities in the petroleum activities other uses, complete or part removal and disposal or abandonment. (5 The plan shall contain information and evaluations considered necessary in order to make direct' on under section L90(1). (6) PUM may", on receipt of the plan, require further information and evaluations, or may require a new or amended decornrnissiqning plan. (7) The licenc holder shall update the decommissioning plan- (a) in conjunction with any subsequent application for a permit, to make additions or substantial changes to the facilities; (b) whenever the expected method or costs of carrying out the decommissioning work have changed significantly as a result of ew technology; (c) where the previously assumed technology is no longer permissible or considered adequate; or (d) when requested by ElJRb,. within a reasonable time limit specified in tbe request. Decommissionjng 188.-('1) TQer:e shall be establisbed a decommissioning fund fund for ach development area or for other facilities operated in relation to a licence or permit under this Act [,or purpose of costs related to implement decommissioning plan. (2) The de£ommissioning fund shall be used for implementation of activities approved in the decommissioning plan. (3 P yments into the decommissioning fund shall commence from the calendar quarter in whic ever the foIl wing situation first ocours: ra) the petroleum production has reached fifty percent of the aggregate recoverable reserves as determined in an approved developmegt plan and any successive reappraisal of such initial recoverable reserves; (b) five years after commencement of production; or (c) on notice of surrender. (4) For every subsequent calendar quarter in which petroleum is produced or a facility operated, PURA shall charge 124 No.21 ThePetroleum Act 20~5 the licence holder a portion of the estimated future cost for decommissioning of facilities to be deposited in the undo (5) The amount deposited inof the decommissioning fund ,. shall be charged as operating fCO&t'S subject to the recovery cost , limitations stipulated in the petroleum agreements or .as may be • provided in regulations. (6) Where the decommissioning fund is not sufficient to cover the implementation of the decommissioning plan, the licence holder, contractor, and where applicable the owner of the facilities shall cover the costs and expenses. (7) Where any amount remains in the decornmissioningv fund after the decommissioning plan has been implemented, such funds shall accrue to the Government ind shall be for the purpose of decommissioning in the petroleum activities. (8) The management of the decommissioning fund shall be done by a committee consisting of representatives of PURA, the licence holder, contractor and' where applicable, the oWD.erof the facilities-in a manner prescribed in the-regulations. Notification of 189.The licence holder shall notify PURA about the time cessation of use of cessation of ~facility if the, use of a facility is expected to tet:I)'l.i.nate.~permanently before the expiry of the licence. Disposal of 190.-(1) PURA may issue directions relating to disposai~f decommissioned facilities decommissioned facilities ando shall stipulate time limit for implementation of directions. (2) Directions issued by PURA under subsection (I) shall • be based on technical, safety, environmental and economic aspects and consideration for other users. (3) The licence holder at d owner of a facility shall comply with the directions relating to disposal, unless directed otherwise - - by PURA. (4) The obligation to comply with thecdirections relating to disposaJ of th~ decommissioned facility shall apply even where the direction is made ~r is implemented after the:.expiry of the licence. (5) Where the ownership of a facility has been transferred - - in ace rdance with this Act, the licence holder~ contractors and owners sh~ll jointly ensure thai a direotion relating to disposal of acility is implefnented, unless directed otherwise by PURA. No.2l 171e PetroLe1U11 Act 2015 115 (6) Where the- direction is to the effect that the facility shall continue to be sed in the petroleum activities or for other purposes, the licence holder, own r and user shall be jointly be obliged to ensure that future directions on disposal are co plied with, unless directed otherwise by PURA. (7) Where a direction relating to disposal of a facility is not carried out withi the stipulated time, PURA may, take the necessary measures on behalf of the licence holder or other responsible party. (8 Where PURA takes any measures under subsection (7 on behalf of a licence holder or other responsible parties, any risks r costs incu red arisi g ut f that measure shall be borne by the licence holder contractor or other responsible patty. Removal cu 191.-( I) Where a Iicence has been surrendered or has property by licence holder expired, or by reas n of relinquishment ceased to comprise of an area which was the subject of a licence the Minister shall by notice in writing served on the person who is the licence holder, direct that person within the period specified in the otice to- a) remove or cause to be removed from the area all prqperties brought into that are by any person engaged or concerned in the petro leu rl1, activities, or 0 make arrangements that are satisfactory tq PURA with respect to tha property: (b) plug or close off. to the satisfaction ofPURA, all wells dri lied in that area by any person engaged or concerned in those operations; and (c) make Pf9vision, to the satisfaction of PURA, for the conservation and protection of the environment and natural resources in that area. (2) A direction given under subseotion (1) shall be consistent with best petroleum indus practices, and nothing in this se tion or any directio shall be construed as requiring any person who is the holder of a licence to do anything vhich is not in accordance with best petroleum practices. (3) Where a person to whom a direction under subsection (1) is given refuses or fails to comply with the direction within the period specified in the notice. such person commits an offence and is liable on conviction to a penalty equivalent to the t,9tal amount of money incurred in the remedy operation. -• I • - 11- " 126 No.21 The.Petroleum Act 2015 Removal and sale 192.-(1) Where the Government takeoverfacility and 1he of property di ections given under section ~89(1) or 190 i') hav'e not been complied w'th,fJ>URA .ay- (a) do or cause to be done all or any of the things required by t e direction to be done; (b) remove or ca se to be removed, in such manner as PURA thinks f , all or, any of the property from the area concerned; c) dispose of, in such manner as PlJRA thinks "fit all or any 0 the property from the area conctrned; and (d) if it-served a copy of notice by which the direction was given to a person to whom tJRA is satis ed to be the owner of the property or Wl of the pr pe~, sel I or cause to",,-besold b public auction or otherwise, all or any of the property eferred to in this seotion that belongs, or tha PtJRA believes, belongs to that persoll· (2) l;>l[RA may deduct fromr-~roceeds of a sale of pro (>erty under subsection (i)- a the costs aRMexpenses incurred by gDRA in relation to that pro~y; (b) tQe costs and e~l?enses incurred by BUM in relation to the doing of any act eqqired' by a direction 0 be done by tlie p~s'pn, that the 1>erson wh2 has been convicted ot all offe!l,9e.under section 201; apd (c the fees or amou11ts due and payable oy the erson under this ACI f~r a licence. (3) -The costs ana ex penses incurred by rpllJRA under subsecti on ( )- a) whe~e incurred in relation to th removal disposal or sale- of proper y->is a debt due by the owner of t e property (0 th Government; and (1'> if incurred' n elation to the doing 9..f a yt,:!ingreq ired by a dii otion under section 189 tq be done by a person who is a licence holder, is a debt due by that. pers9,n to tIle Government, and to the!extent which is ~ no recovered under s bsection 2), may be .ecoveted ~ in a oourt-of competent jurisdiction. ., (4) Subject to subsection 0), no action shall lie in respec of the removal, 2l1sposalor sale-of property under this section. No.21 The Petroleum Act 127 Liability for 193.-(1 A person who is required to implement a decision damages for disposal of relating to disposal of a decommissioned facility is liable for decommissioned da age or inconvenience caused in connection with the disposal facility of die facility or other implementation ofthe decision. (2) Where the licence hider or owner abandons a facility, the holde or owner shall be liable for damage caused in connection with the abando ed facility. (3) Where there is more than one party 1iable under subsection (I) or (2») the parties shall be jointly and severally liable for all ancialobligations. (4) Where a need to abandon a facility arises, shall ensure the licence holder, the owners and the Government, that future maintenance, responsibility and liability are taken over by the Government, based on an agreed fina cial compensation. x: Encum~l'ancos 194.-( 1) Where the Government requires removal of a facility, any lien, charge or encumbrance on the facility shall lapse. (2) Subsection (1) shall also apply where the Government takes over the facility: Provided that, in any case an)' right of use established with the consent fthe Minister remain in force. • Takeover of facilities by

195.-( 1) The Government may take over facilities of the Governmcm licence holder where- (a) a licence expires; (b) a licence is surrendered or cancell:Ci· (c) the licence holder's costs have been fully recovered' or (d?the use of the facility has been terminated permanently. (2 Were the takeover of a facility is intended to expropriate private property rights compensjtion shall be paid in accordance with the law and procedure prescribed in the regulations. (3) Where the Government has confirmed that it wishes to exercise righ to takeover, the takeover shall take effect six months after the period when the licence expired, Or [or any other reason, the facility has been abandoned permanently. (4) Where the Gbvem~nel1t takes over a facility, the facility'with its accessories shall be kept.in hich the operation may require such condition with adequate maintenance as is """ - 128 No.21 The Petroleum Act 2015 required to ensure functional capability. ~5) Any dispute referred unde subseetioq (2) in rela ing to the cojnpensation to be paid to the Government for lack 0 maintenance such compensation shall be determined 'by the Chief Government Valuer or any other relevant authority. " (6 Where the Government takes over a facility under this section, the licence holder rna continue operating the facility upon payment of the prescribed fee. (7) (foe takeover of facilities under this section snail not apyly to properties or facilities that do n belong to the licence holder or contractor. (b2 Cessation of Downstre m Activities Licensee 10 196.-(1) A licensee s all submi a decommissioning plan submit the decommissioning plan (a) before an activity or a specific licence to install allli operate facilitie expires r is sur endered; or ~) be ore the use ofa facility is terminated permanently. (2 The plan referred to in subsection (J) shall con ain proposals for continued production or shut down of.production, decommissioning of facilities~ and any other information prescribed in the regulations. II (3) The decommissioning of facilities re erred to in subsection (2) may~onstitute further use of the facilities in the gas activities, other uses, complete <1rpart removaland disposal or abandonment. (~) The plan shall contain informaf n and evaluation .... -. c~nsidered necessary in order to make a direction unde section 196. (5) EWt,JRA may on receipt Of the plan, require further information and evaJuations, or may require a new or amended decommissioning plan. (6) The licensee shall update the decommissioning plan- (a) where in conjunction with any subsequent application for a permit, make additions or substantial changes rto the facilities; (~ whenever the expected method or costs of-carrying out th re-commissioning work" have changed significantly as a result of new techniques for the wor ... ,.;; . - becoming available; ...- ~ The Petroleum Act .. ·~ • (0) where the pr.,eviously assumed techniques are no longer permissible or considered adequate; or (d) when requested by EWURA, within a reasonable time limit specified in the request. (1) Unless EWURA consents to or directs otherwise, the decommissioning plan shall be submitted at the earliest four years, but at the latest two years before toe time when the use of a facility is expected tQ be terminated permanently. Decommissioning 197.-(1) There shall be a decommissioning fund for each ti.md development area or for other facilities operated in relation to a licence or permit upder this Act for the purpose of meeting costs -related to the implementation of a decommissioning plan. (2) The decommissioning fund shall be applied to the implementation of activities approved in the decommissioning plan. (3) Payment to.the decommissioning fund shall be made by a license five years after the commencement of the project. (4) EWURA shall, in consultation with other relevant. authorities, determine the amount to be deposited as I ' decommissi.oning fund. (5) The amount deposited in the decommissioning fund shall be charged as operating costs. (6) Where the decommissioning fund is not sufficient to cover the implementation of the decommissioning plan the licensee and where applicable, the owner of the facilities shall cover the..costs and expenses. (7) Where any amount rem.ains in the decommissioning fund after. the decommissioning plan has been implemented, such funds shall accrue to the Government. (8) The decommissioning fund shall be managed by the decommissioning committee consisting of representatives, of the Government and the licensee. (9) The composition of the decommissioning committee and the manner in which such committee manages the decommissioning fund'shall be prescribed in the regulations. Disposal of the 198.-(1) EWURA may issue directions relating to the decommis~d facilities disposal 'Of deco~lpissjoned facilities and shall prescribe. a. time limit for implementation of the directions. - I I 130 ,No.2t - (2) pe directions issued und n subsection (1) shal be 2015 based on tech ical, safety, environmental and economic aspects and consideration 0 ot~er users. (3) lE~ pay !l.esc~ibe specific conditions in connection with directio s is uea ll~der subsection, 1). (4) A licensee an.dthe owner of a facility shall ensure than a direction relating to disposal is carried out, unless otherwise directed by EWllRy\. (5 An obligation to carry out the direction relatin to disposal shall apply even w~en the direction is made or is to be impleme~ted after e Pin' of the licence. (6) Where ownership of a facility has been transferred in accordance.wiih thi.s Act, the licensee and the owners shall jointly ensure that a direction relating to disposal'is carried out unless it is otherwise directed I:) EWURA. (7) Whe e the d}xection is to the effect tha the faoility shall continue 0 be used 'in tbe gas activities or for other purposes, the licensee, owner and sec-shall be Jointly. obliged to ensure that ture oirections" on, disposa are carried out; udless it 't\\~ . • is otherwise directed, by (8) Where a, direction relatiug to disposal of arvacjlity is not carried out within the prescribed time,.E~ rna take the necessary measures cn behalf, of the-licenie'e or other responsible parties . • (9) Where EWURA takes any measures under .subsection • .. (8) on behalf of a licensee ot other; responsible parties, any risks arising out, at costs incurredsfsom that measure shall be borne by ,. • I" the licensee or other responsible party. _- I>\R..T VI REAL1J-I AND SAFEl;Y J -, • Safety (a) Health and Safety in Petroleum Upstream Operations 199-(1) Petrolcum""activJties shall be conducted in such a manner to enable a high l~veJ of safety to be maintained and ... .. Cap.29] further tde eloped in accordance "with technological - developments, best petroJeum industry practices, Occupational, Health and Safety Act and any other relevant law. (2) The licen~~tholder and contaetor shall- t • • I. A The Petroleum Act (a) establish, implement, follow up and develop an appropriate management system designed to ensure systematic and continuous compliance with all applicable requirements fo health, safety d the working environment as prescribed in the regulations. ... ..• (a) identify hazards and evaluate risks associated with any work performed in the course of petroleum activities I' carried out under the licence which constitute a hazard to health of persons employed for the purposes of that work and the steps need to be taken to comply with the provisions of this Act; (b) prevent the exposure of the persons referred to in paragraph (a) to the hazards; and ~ (c) develop and submit plan indicating prevention, handling and mitigation measure on mY/AIDS and other transmittable and communicable diseases in the areas of licence operations. Safely 200. An operator shall - precautions (a) take precautions to- (i)" ensure the safety of any person employed or .' Cap.297 otherwise present or in the vicinity of any installation is done in accordance with the Occupation, Health and Safety Ad'or any other relevant written law; and (ii) protect environment and natural resources, including taking precautions to prevent pollution; and (b) ensure that the person referred to in paragraph (a) (i) is duly informed of those precautions. General 201.-(1) The licence holder, contractor and any other requirements for emergency person participating in petroleum activities shall, at all times, , preparedness maintain efficient emergency preparedness with a view to dealing with accidents and emergencies which may lead to loss of life, . • injury, pollution or major damage to property . (2) The licence bolder and the contractor shall ensure that necessary measures are taken to prevent or ~reduce harmful • effects, including measures to return the environment to the condition it had been before the accident occurred. .- --- I L 132 No.1 The Petroleum Act 2015 (3) PURA may issue directions for implementation of the measures referred to in subsection (1). Emergency 202.-(,1) Tne licence holder and contractor shall mmate preparedness against deliberate and maintain, securit measures to avoiding attacks against attacks facili ies and shall at all times have contingency plans to deal with such attacks. (2~ . he lice ce b_olderand contractor shall place-facilities at the disposal of the relevant authorities for emergency and security operations including drills and shall where necessary, p'articipate in such drilling. (3) JJ1e inister may direct t ie implementation of the measures referred to in subsections (1) and 2). Safety :GOIlCS 203-( I) There shall be a safety zone surrounding every facility used for carrying out petroleum activities, unless otherwise determined by PUFA . (2) PUM may, in cases of accidents and emerg ncies. establish or extend the safety zones under subsection (I). (3) The extent of the safety zones referred to in subsections (I and (2) shall be determined by PURA, Provided that where a safety zone extends across the border line with another country PURA shall consult the Minister before exercisin its powers under subsection (2)- (4 rURA may direct that- (a) a zone corresponding to the safety zone shall be established in reasonable time before placing of facilities as mentioned in subsection (1); or b there shall be a safety zone around and above abandoned or dumped facilities, or parts of the facilities. (5) A person shall n t carry unauthorized activity in the safety zones. Suspension of 204.-0) Where an accident <If an erne gency occurs, the petroleum activities licence holder or other person responsible for the operation and use of the facility shall suspend the petroleum activities. (2) Where special circumstances exist, the Minister may order that fjetroleum activities be suspended or may impose conditions to allow continuation of the activities . • "', II • It"'" • I't.. The Petroleum Act (3) Where the Minister makes an order under subsection (2) basing on circumstances not caused by the licence holder, he may, upon application, extend the period of time for which the licence applies and mitigate the obligations of the Licence older. • Qualifications ~ "205.-( I) The Iicence holder. contractor and other persons •• engaged in petroleum activities shall be persons who possess the necessary qualifications to erform sucb work in a prudent .. manner. (2) The licence holder and contractor shall ensure that any person carrying out work for the lic~nce holder complies with conditions stipulated under subsection I). Commission of 206.-(1) Where an accident occurs in c6,("nnectionwith inquiry petroleum activities and the Minister considers the accident to be serious, he may appoint a commission of inquiry to inquire into the accident. (2) Subsection (1) shall apply to incidents in activities which led to serious danger, injury or damage including loss of life, major damage to p~operty and pollution of environment. (b) Health and Safety in Downstream Activities .~ ,f Adoption and adaptation of intemational

207.-(1) EWURA shall, in consultation with other relevant authorities, develop and carry out a program of gradual adoption standards and and adaptation of the prevailing international standards, technical specifications specifications and codes of practice in grder to upgrade infrastructure of the.supply chain, quality of gas and the services provided by the participants to the standards of the international gas industry, (2) The standards, specifications and codes established by the organization recognisedby the international gas industry in matters of public health and safety and pr tection of the , environment shall be adopted and declared as compulsory Cap~.I30, 191 and 297 standards in accordance with the provisions of the Standards Act, Environmental Management Act and Occupational Safety and Health Act and any other relevant laws. . .•• - (3) The Ministe may, after consultation with the relevant authorities, approve temporary applicationj.,0fcertain international standards, specifications or codes of practice if the relevant - .. international standards, specifications or codes of practice have -. No.21 The Petroleum Act not bee formally adopted in accordance with subsection (1). PARTY!} E cJNMENTAL PRINCIPThES AND LIABILITIES (a) Environmental principles and liabilities in up (ream petroleum operations Compliance with 208.-(1) The licence holder, contractor and, any other environmental principles person w 0 exerci es or' performs functions, duties or powers under this Act in relation t etroleum operations shall comply <";.ap.191 with environmental pr.inciples and safeguards prescribed in the National Environment Management Act' and other related unde other relevant laws. (2) The licence holder and contractor shall ensure that the mana ernent of production, transportation, storage, treatment.~d disposaJ of waste arisi g out of petroleum operations is carried out in accordance with environmental principles and safeguards prescribed under the 1;'JationalEnvironment ~anagement Act and other related written laws' (3) The licence holden shall contract a separate and ~ • • competent entity to manage transportation, storage, treatment or disposal of waste arising out ojpetroleulT! operations. (4) The licence holder and contractor shall be responsible I • .- for activities referred to under subsection (3). (5) The National Environment Management Council in consultation with EWURA mal grant a licence for management, ., I transportati n, storage, treatment or disposal of waste arising out of petroleum activities to an entity contracted by a licence holder under subsection (3) on terms and conditions prescribed in the licence. (6) A person contracted by the licence holder under ., • .. • subsection (3) shall not carry out activities without having a ~ I - • licence issued by the Ministe~re~onsible for environment. (7) A person who carries on management of production, I transportation, storage, treatment or disposal of waste arising out of petroleum operation ithout a licence or fails to comply with .1....,. _ ' . the terms and conditions prescribed in the licence, commits an - "offence and shall be liable on conviction to a fine of not less than •five million shillings or to imprisonment for a term of not less than six months. .r ... N'o.21 Thetfe~'oleum Aat 201'5 135 ,ollution 209.-(1) "J'his'Part applies in relation to damage caused by damage pollution from a faci!J{Y if the damage occurs in Tanzania or affect Tanzanian vessel 'Orfacility in adjacent areas. (<2) The Minister !pay, wake egulations relating to liability for Qollution or damage caused by petroleum 0 erations with agreement with a forei~ State; (3) egulations jnade under subseotion & shC\!) not restrict 'tbe right to compensation in accordance to this Act and relevant written laws in respec o{ any injured, death or property damage underlanz.5llL~ jurisdiction. LiabiJjty of 210.-( 1) The licence holder and contractor shall be lia~Je licence holder for pollution [or pollution damage without regard to fault. damage (2) Where it is de~onstrated that an inevitable event of nature, act of war, exercise bf rele -ant authority or a similatforce majeure event has cbntributed to a considera Ie degree to the .. damage or its extent under circumstances, which are beyond the control of the licence holder or cootractor, the liability may be reduced to the extent th'at j~ reasonable, with particular consideration to the- (a) scope of the activity; .... (b) situation of the party that has sustained the damage; f and (c) ~pportunity tor taking out insurance on both sides. Liability for 211.-(1) Where pollution or damage occurs during a Pollution damage caused without a petroleum operations and the operation has been conducted licence without a licence, the party conducted the petroleum operations is liable for the damage, regardless offuult. I (2) The liability shall be applied to any other person who ha_;,taken part in. the, petroleum operations, and who )!mew, or should have known, that the activity was conducted without a licence. Claiming of 212.-(1) 'Fhe liability of a licence holder and contractor for damages pollution damage may be claimed in accordance with this Act and ' .. any other applicable law. (2) Liability for pollution damage may net be claimed against- (a) any person other than a licence holder and contractor who undertakes measures to avert; limit pollution 136 No.21 The Petroleum Act damage" save life or rescue values which nave been endangered in connection with the petroleum operatign, unless the measure taken conflic with prohibitions imposed by a relevant authority .or by a person other than a releva t authority regardless of express prohibition by the operator or owner of the values threa ened; or (b) any person employed by a licence holder or person referred to in paragraph (cD. 3) Where the licence holder and contractor bave been orde ed by court to pay compensation for pollution damage, but fail to pay within the time stipulated in the judgment, the party that has sustained damage .., may bring an action against tbe party -. that bas caused the damage t~ the same extent as the licence holder and contractor may bring an action for recourse against the .. party wbo caused the damage. (4) Tbe licence holder and contractor may claim compensation from the party who caused pollution damage to the . . licence bolder and contractor to the,same extent as the licence bolder and contractor may bring action for recourse against the party caused the damage. ... ' I Claiming 213.-(1) The licence holder and contractor may not claim compensationfor poUution compensation for damage caused by pollution against a person exempted from liability, except where such person acted wilfully or negligently. 2) Recourse liability may be mitigated to the extent that it - is considered reasonable in view of..manifested conduct, economic ability and the circumstances in general. (3) Any agreement on further recourse in respect of a person against whom liability is impo ed contrary to subsection (I) is invalid and shall not cl.aimed for damages. f Jurisdiction '" 214 Legal action tor compensation for pollution damage " ..... shall be brought before a competent court in the area where the . cffiuence or discharge of petroleum takes place or where damage t.~::11 -. It - ._ - 1 - is caused. - • - •• ..J ..._______ ~I J - o.2! The Petroleum Act 2015 137 (b) Protection of Environment in mid and downstream activities Environmental 215.-(1) AJI infrastructural facilities established ana • Management Cap.19} operated in connection with a gas system shall be operated in accordance with Environment Management ct. (2) EWURA shall, in collaboration with the competent environmental authorities, establish the cla sification of gas supply operations or projects within th supply chain that shall require • • environmental impact assessment as a condition for issuing an approval or a licence under this Act. Cap. 191 (3) Where an environmental impact assessment is required or conditions are to be JOet in accordance with the Environmental Management Act and other relevant laws, the appl icant for the licence or approval shall fulfil such requirements or conditions. (4) Pro~sions shall be made Jar the pr9per restoration of the operating environment to its natural condition with decommissioning plan for gas facilities being submitted before the Cap. 191 cessation of use and according'to the Environmental Management Act and other relevant laws.

216.-(1) A licensee shall submit a detailed environmental impact assessment in accordance with .tbe Environmental - Management Act and preventive and responsive plan towards gas leakage. -l£.. (2 Where there is gas leakage that poses or presents a significant risk to p~blic health and safety, the licensee shall, as soon as practicable take all necessary measure to stop the leakage .. Petroleum and or minimize the risk 'l.f the leakage. (3) Without prejudice to subsection (1). the licensee shall, witbin twenty-four hours of the discovery of the gas leakage, report the incident to EWURA.

217.-(1) A custodian of the product where there is a major petroleum products spill petroleum or petroleum product spill, shall report the incident to GWURA within twenty four hours after the spillage of the .- - products. , (2) The bolder or owner of the product shall urgently take .. all appropriate steps to clean-up the petroleum product spill, and '_ Cap.I~1 pay for the costs in accordance wjth the Environmental Management Act. _...I ~.. I 138 No.21 The Petrq.leum 'Act 2015 (3) Where the holder or person referred to under subsection (2) fails to comply to the satisfaction of EWURA within the time specified in t~e oii ce or within uch further period as Ew0RA may allow EWlJlQ. may, in writing cause such steps to be taken as may be ecessary to clean up the spill and recover the costs incurred in accordance with the relevant laws. (4 This section shall apply to an incident- (a) constituting or arising, from, whether wholly ~r in part, a petroleum product spill or involving the risk of a petroleum product spill; or (b) arising from the cleaning-up or restoring of relevant premises. 5) Where a Government institution or a local auth rity incurs costs or 'hpenses as a resu t of the occurrence of an incident to which this section applies, any such costs or e penses' reasonably incurred by the relevant authority shall be recovered as ~ Govemmcnt debt in accordance with the relevant laws. (6) The costs or expenses-may be recovered- (a) in the case of costs or expenses incurred by a local authority; or (b) in the. case of costs or expenses incurred by the Government institution concerned. (7) The costs or expet:\ses incurred may be recovered from: (a) in the case of an incident r ferred to in paragraph (a) of subsection (4)- (i) the person who was the owner of the petroleum, prod ct at e time of the incident; (ii the person who was in control or possession of the petroleum product at the time of th incident; or (iii) the person who caused the incident; (b) in the case of an incident referred to in paragrap (b) 9f subsection (4)- .• (i) the relevant' licence or approval holder; (ii) the owner of the ,rele ant premises, buildings, structures or plant where such spill originated; or (iii) the person who caused the incident. (8) Notwithstanding any provision of this subsection, costs and expenses shall not be recovered against a person who proves-· .. _. ... L· •• • • • ... II No.2L The Petroleum Act 2015 139 a2 that the incident was due to some causes beyond the person's control or to the ac or default of another person; ) that such person could not by the exercise of reasonable diligence have revented the qccurrence of the incident; or (c) that the incident is not attributable to an act or omission of a person who was an employee or agent of that • person at the time when the incident occurred . (9) For the purpose of this section "major petroleum or - petroleum product spill" means a petroleum or petroleum product spill of more than two hundred liters per ~ilL .PART VIIl GOVERNMENT PARTICLPATION. LOCAL CONTENT, CORPdRA TE SOCIAL RESPONS1BTLITY AND INTEGRITY PLEDGE Government 218.-(1) The Government may, through National Oil participation in petroleum and gas 1Company participate in petroleum operations under this Act, uctivitles through a specified participating interest of a licence or contract granted under this Act and in a joint venture established by a' joint operating agreement.. (2) The Minister shall, when announcing areas for granting of petroleum exploration licences and development .. 4' licence according to this Act, specify the maximum Government shares under subsection (1). ] (3) The revenues resulting from the management of participating interests shall belong to the Government. (4) The operating expenses, investments and other expenditure incurred to all relating to the management of the participating interests. shall be covered by appropriation from the Government. (5) The National Oil Company shall keep and maintain d f ." separate accounts in respect of revenues and expenses relating to .. participating interests . , .. Provision of goods and

219.-(1) A licence holder, contractors and subcontractors shall give preference lO goods which are produced or available in services by Tanzanian Tanzania and services which are rendered by Tanzanian citizens entrepreneurs or Local Compan.ies. 140 Thetetroleum Act (2) Where goods and services required b the contactor, subcontractor or licence holder are not available in Tanzania, such goods and services shall be provided by a company which has entered into a joint venture with a local company. 0) The local company refe ed to in subsection (2) shall own sh,are 0 at least twenty five percen in the joint venture or otherwise is as provided in for the regulations. (4) For purposes of subsectio s (I) and (2), a licence holder, contracto and subcontractor shall pr~are and submit to P(,JM a procurement plan for a duration of at least five years indicating among others, use of local services in insurance, financial, legal accounts and health matters and goods produced in Tanzania. (5) A licence holder, its contractor and subcontractors •• shall ensure that entities referred to in subsection (1) notify PU (a) quality, health, safety and environment tandards required by licence holder and co tractor; (b) upcoming contracts as early as practicable; and • (c) compliance with the approved local content plans. r (6) The entities referred to in subsection (I) shall- (a) have capacity to add value to meet health, safety and - •-•.. . -• ,'''', - environment standards of petroleum operations and gas activities carried out by licence hider and -.,, I • - i I' • .... .- ,I .. t contractor; and (b) be approved in accordance with criteria prescribed in the regulations . (7 Within sixty days after the end of each calendar year, the licence holder shall. submit to PURA a report <;>f its J • •.. • • - achievements and its contraotors and subcontractors' achievement in utilising Tanzanian goods and services during that calendar year. (8) The licence holder sh II submit to PURA: (a) a report on the execution of a programme under this •• section as prescribed in the regulations; '., .-- - I~ (b) a detailed local supplier development program in accordance with approved looal content-plan. (9) For the purpose of this section "local companies I• means a company or sl!.bsidiary compli9,Yincorporated under the Companies Act, which is one hupdred percenrowned by a I. I , .. I r I •• • t .'· • ~. No.21 The Petr.9lewn Act Tanzanian citizen or a company that is in a joint venture partnership with a uanzanian citizen or citizens whose participating share is not less than fifteen percent. Training and 220.-(1) A licence bolder and a contractor shall, within employment of Tanzanians twelve months after the grant of eac Jicence, and on each subsequent anniversary of that grant, submit to PURA for • • - approval, a detailed programme for recruitment and training o[ Tanzanians in accordance with an approved local content plan. .. (2) The programme shall provide training and recruitment of Tanzanians in all phases of petroleum operations and gas activities and take into account gender, equity, persons with Cap. 366 disabilities, host communities and succession plan in accordance with the Elpploymen~nd Labour Relation Act.' (3) Where a programme or a scholarship proposed to be awarded under this section is approved by PORA, it shall not be varied without permission of PURA. (4) The licence holder and a contractor shall submit to PURA annually, a report on the execution of the programme under this section as prescribed in the regulations. (5) In this section "host communities" means inhabitants of the local area in which petroleum operations or gas activities take place. Training and 221.-( I) A report referred to under section 219 (4) sha 11 technology transfer include- (a) a clearly defined training programme for the Tanzanian employees of the licensee. which may be carried out within or outside Tanzania and may include scholarships and other financial support for education; (b) a commitment by the licence holder and contractor to maximize knowledge transfer to Tanzanians and establish management and technical capabilities and any necessary facilities for technical work, including interpretation of data. (2) The Minister may make regulations prescribing requirements for licence holder and contractor to provide technology transfer and skills rclaung to petroleum and gas industry to Tanzanians who are employed in that sector. 142 No.21 ThePetroleum Act 201,5 (3) The technology traqsfer required under sub sectjon (1) shall be a shared esponsibili between the Government, licence holder and contractor. (4) A license holder shall be required to provide a e ort r on the progress rqade by Tanzanians on ainin program and steps taken by licensee to close any identified learning gaps. Corporate social 222.-(1) A licence holder and a contractor shall on annual rcswnsibjlity basis, repare a credible corp rate social r sponsibility plan jointly agreed by the rele ant local government authority or local government authorities. (2) q'he plan prepared under subsection (I) shall take into account environmental, social, cconqmical and cultural activities based on local gove ment priorities of host community. (3) The ~m:>0rate social responsibility plan referred to under subsection (1) shall be submitted by a licence holder to a local g vernmentauthority for consider tion and approval. (4 Subjec to the provision of this section, every local government authorjty shall- a) prepare guidelines for corporate social responsibility within their localities; (b oversee the implementation of corporate sdcial resp nsibiLityaction plan; and (c) provide awareness to the public on natural gas projects in their areas. Integrity pledge 223.-( 1) A licence holder and the contractor ho undertakes petroleum or gas activities under this Act shall be required to comply with the integrity pledoe. (2) The integrity pledgt referred to under sub-section (1) implies the followingnational requirements- (a) the conduct of regulated activities with utmost integrity; (b) desist to engage in any arrangemeo that undermines or is in any manner prejudicial to the country's financial and monetary systems in ;articular, all earnings payments r receivables derived from or in respect of regulated activities shall be received in, and accounted for in Tanzania; (c) desist to engage in any arrangement that undermines or is otherwise pt;ejudicial to Tanzania's tax system; No.2.L The Petroleum Act 2j)15 143 (d) disengage in arrangement that is inconsistent with the country's economic objectives, policies and strategies; (e) disengage in arrangement that undermines or is otherwise prejudicial to Tanzania's national securi!y; and (f) maintenance of satisfactory and, effective insurance coverage against- losses, injuries or damage to environment, communities, individuals and properties, that may be occasioned in the course of carrying out regulated activities. (3) The Minister shall make regulations guiding compliance with the integrity pledge. (4) Any person who fail to comply with integrity pledg shall breach the conditions of licence or permission to engag,e in the regulated activity and such licence or 'permission shall be deemed to have been withdrawn or cancelled and the Government shall exercise the right of takeover facilities provided for under this Act. .,T_ Payment of 224 .•( I) A licence holder and the contractor shall be capital gain tax . under obligation to 'pay capital gain tax in accordance with """ the Income Tax Act in resI>cct of any corporate reorganization undertaken within or outside the United Re ublic. (2) Failure to Ray the capital gain tax constitut a breach of integrity pledge warranting the Government to take measures against such breath. 1 PAR1;IX FINANCIAL PROVISIONS Funds of PURA 225. The funds of PURA shall consist of: (a) monies appropriated by Parliament for purposes of PURA; ,. (b any revenue derived from sale of any movable or .. immovable property; .. (c) donation land grants to PURA for its activitie under this Act; and • (d) regulatory levy as shall t.?e prescribed in he • _. regulations. _ --.: •• 2 (e) any revenue accruing from'any activity undertaken'by PURA. ~- • - 144 No.21 ThePetroleum Act 2015 Tax exemption 226.-(1) gURA shall be exejnpted from payment 0 import and other duties, taxes and levies in respect of its operations, capital properties, doouments or any 0 her transactions, deeds, agreements, fees 0 promissory note in accordance wi h the • elevant tax laws. (2) Notwithstanding subsection (1), em )oyees o~'lpURA shall be liable to pay relevant taxes in accordance with any ptber relevant laws. Duly II)operate 227 The Board shalL, in the performance of its functions on sound financial principles under this Act have due regard to sound financial prinoiples. Power-to open 228.-(1) RURA shall, with the approval of the Board, open and operate bank accounts and maintain bank accounts as PURA may consider necessary for better performance of its functions. (2) The Director Genera' s all ensure that all monies received on behalf of PURA is banked as soon as practicable after being received. (3) The Director General shall ens!lre that no W0riey is withdrawn ftorn or paid, out 0 any of the PU:RA~sbank-accounts without approval of the J3oard.

29.-(1) The Director- General shall, ithin three' months before the end of eacb financial year, cause to be prepared and submitted to the Board or approval, estimates of income and expend it re off\JRA.. (2) The Board shclil, within two mont fter receipt of the estimates referred to in subsection (1), cause to be submitted to the ~ipjster for approval estimates of income and expenditure as approved by the Board. Financial year of 230. The financial year 0 PURA shall be the same as the PURA financial yearafthe Government. 231.~1) The Director.-General shall cause to be 'kept proper books of accounts and records of transactions of PURA in accordance with accepted ace unting prmoiples. ~2) Subject to any direction given by the Board, the Directo~ Genera] shallt.cause to be prepMed a1) annual financial statement stating the basis of accounting and identify any significant'departure from it and reasons for departure. No.21 The Petroleum Act 2015 ]45 (3) The statement of accounts shall include: a a balance sheet, . come and expenditure an a source and application orpURA's statemen ; and (b) any other info ation in respect to financial affairs of PlfRA as the Controller and Auditor -General may in writing require. Audit 232.-(1) The Controller and Auditor-General shall, in each Cap.410 financial year, audit the accounts of PURA in ace rdance with the Public Audit Act. (2) The oard shall ensure that it submit a statement of accounts three months after the end of each financial year to the ontroller and Auditor- General for auditing. Annual report 233.-(1) The Board shall submit to the Minister, as soon as practicable but not later than four months after the end of each financial year, a report detailing activities and operations of PURA during the year to which the report relates including audited accounts. (2) The report eferred to in subsection (1) shall contain: I (a) the petroleum.reserve estimates of Tanzania; (b) amount of petroleum produced and forecasts; and (e) such other information as the Board may consider necessary. (3) The Minister shan, within two months after the receipt of the annual report, submit the report to'the Parliament with any :ii • statement which the Minister considers necessary. tpARTX OFFENCES AND PENALTIES (a) Offences and penalties in respeci of petroleum operations Obstruction ofan 234. A person who- authorised officer (a without reasonable excuse, obstructs, molests or hinders an authorised officer in the exercise of his • • powers under this Act; or (b) knowingly or recklessly 'I makes a statement pr ..... produces a document t at IS false or misleading in a material particular to an authorised officer engaged in carrying out his duties and functions under this Act, (c) 46 The fetroleunit Act commits an offence and ~haJl be liable on conviction to a fine of }/Qt less than twenty Winion shillings or to imprisonment for a term 0 not less five years or, both. ,. Obstruction of 235. A ~erson who, without reasonable excuse, obstructs, licence 1J21dcrand the contractor mokdts, hinders or prevents a licence holder in or from updertaking any activity which t e licence is authorised 0 do by -- - this Act or by his licence, commits an offence and is liable on conviction to a fine of not less than twenty million shillings' or imprisonment for a term not less five years OJ' both. Offences 236.-(1) Where an offence committed by a body corporate committed by body corporate is proved to have been'committed with, the consent or connivance of, or to be attributable to any-neglect on'the part of a director, manager, secretary or other similar officer of the body corporate or any person who was pu~orting to ad in any such capacity, he ..,. _._ •• - as well as the body corporate, cornrni~a offence . (2) . , An individual whri commits" ....;J offence 'undefP I subsection (1), shall liable on conviction to a fine not less than one hundred million shillings or imprisonment for a term.nottless than five years OT both .-'.:... Order for 237.-(1) Where a person is convicted of an offence under forfeiture this Act, the court may, in addition to any other penalty i~posed, make- (a) an order for tbe forfeiture of any funds money instruments, documents, facilities, vehicles, crafts, vessels or equipment used in the commission of the offence: and (b) an order. • ~(i) for the forfeiture ?f petroleurv obtained or recovered in the course of the commission of The-Petroleum Act '2015 14'7 recovered or foIl.the .,payment of such a part of th'at amoun ~ the court, having regard to all • the circumstances, thinksjfit . (2) Where the court is satisfied tha an order made under subsection (1 (bj i) shall pot for any reason be enforced, the court may, upon the application of the person to whom the proceedings were brought, set aside the order and make an order referred to jn subsectior (1)(b (ii) or (iii). (3) The court may, befo e l¥ak!ng an order under this section, require notice.to be given to, and near any person as the court considers necessary. Contravention of 238. A person who without reasonable excuse decisions and orders issuccl contravenes any directive issued under this Act commits an under this Act offence and shall be liable on conviction- (a) in the case of an individual, t a fine of not less tha~ ... - one hundred million shil ings oJ to imprisonment for a term of not less than ten years or both; or (b) in the case of a body corporate, to a fine of not less than five hundred million shillings. General offences 239. A person who- • f(a) in, or in connection with, any application under this .. I Act or under a licence, or in re ponse to any invitation or requirement of the Minister or PURA under this Act, knowingly or recklessly gives or permits to be given information whic is false or misleading in a material particular; (b) in any report, return " or affidavit submitted in, accordance with this Act or a licence, knowingly or recklessly includes, or permits to be included, any information" hich is false or misleading in a material particular; or (c) pJa es or deposits, or is accessory t<1 the placing or depositing of, any petroleum or substance in any place with the intention of misleading any other person as to the possibility of a reservoir existing in that place, commits an offence and is liable on conviction- (i) in he case of an individual, a fine not less than one hundred milliorushillings or • 148 No.21 [he Petroleum Act 2015 imprisonment for a tenn 110t less tpan ten year r Ir~th; ~ (ii) in the case of a body corporate, a fme of not less than one billion Tanzanian shillings or to im~risonment for a tenl1 no less than five years or bpth. (b) Offences and Penalties in,'fRespectof Natural Gas activities Offences and 240.-Q) A,.. person who- - -- • penalties (i) without reasonable excuse, refuses, delays or fails to produce any document>or other information relating • to gas operations and installations that may be required to be produced under this Act; • (ii) knowingly or recklessly makes a statement or furnishes documents or other information that are false or misleading in any material respect, whether upon demand or otherwise; (iii) with intent to mislead or deceive EWURA or an authorised officer when so engaged, does any act or withholds any information; .. (iv) publishes or otherwise discloses any information in . contravention of any provision of this Act; (v) without reasonable excuse, resists, hinders or obstructs an inspector or other officer of EWURA or any other person who aets on behalf of EWURA, to enter or inspect any premises or to stop and search any vehicle or to otherwise comply with his duties and rights under this Act; (vi) refuses, delays 01' fails to comply with any order, prohibition, direction, demand, requirement or notice lawfully made, served, .published or otherwise given under this Act; (vii)contravenes, attempts to contravene or assists in the contravention of any of the provisions of this Act or any rules, orders or regulations made under this Act, .• commits an offence, and on conviction, shall be liable to a fine not less than ten million shillingsor to imprisonment for a term ., not less than two years or both, (2) A person who attempts or assists to alter, remove or connect to any pipeline or gas installations without consent of the ,L ••• -._ 2015 licensee commits an offence and shall, on conviction, be liable to a fine of not less than twenty million shillings or to imprisonment 'to,. for a term of not less than five years or both. (3) A person who continues to commit an of%nce shall be liable to a fine of one million shillin s for each day on which""Re ._ .- commission of that offence continues. (4) A person who- - .. • (a) alters, removes or connects to any pipeline or gas installation without consent of the licensee' (b) sabotages the operation of the gas installations; (c) distorts the function of the system; or • (d) does anything that endangers the functioning of the system, • - (c) omit to do, or otherwise refrain from doing any lawful act obliged by the law or contract or lawful order, I which result to the sabotage, distortion or endanger the functioning of the system, commit an offense, I • Cap. 200 commits an offence of economic and organised crime. Compounding of 24) .-( 1) Where a person has committed any offence under offences by EWURA this Part other than an otTence under section 240(4), EWURA may, subject to such direction as the Minister may give on that behalf, at any time prior to the commencement of the hearing by I • any court of any charge in relation to the offence committed, compound such 6ffence and order Stich person to pay such slim of . money, not exceeding one half of the amount of the fine to which I • - such person would have been liable if he had been convicted of such offence . (2) EWURA shall not exercise powers under this section unless the person concerned admits in writing that he has _ - committed the offence for which he is charged. J (3) Where EWURA compounds an offence under this section, the order referred to under subsection (I) shall: .. (a) be reduced in writing and there shall be attached to it .... to - the admission and request referred in subsection (2) .. and a copy of such order shall be given, if he so - requests, to the person who committed the offence; • • • (b) specify the offence committed, the sum of money - ordered to be paid and the date or dates on which r« payments is to be made; ,!,,, - 150 No.2] The Petroleum Act 2015 (c) be final and shall no subject to the provisions of subsection (3) be subject to any appeal; (d) not be invalid by reason only of non-compliance with any direction given bytbe Minister. (e) be enforced in the same manner as a decree of,a court for the payment of the amount stated in the order. (41 Where a person is aggrieved by an order made under subsection (1), that person may, within thirty days of such order Cap. 20 being made, appeal against such order to the igh Court in accordance with the provisions of the Cpminal Procedure Act. (5) Where EW1JRA compounds an offence under this section, the person concerned shall not be liable to any prosecution in respect. of such offence and, jf any such • prosecution is brought in the court, it shall be a good defence for such pe son to prove that such oflf:encehas been compounded I under this section. •• .- PART xr ...... DISPUTES SETTLEt-ffi - PURA may (a) Settlement oj disputes arising from upstream petroleum operations

242.-(1) PURA may inquire and decide .all disputes decide disPIIICS between a person engaged in exploration or development operations, either among themselves or in relation to themselves and third parties other than the Government not so engaged, in • connection with- (a) tbe boundaries of any exploration area or develolment - area; (b) any act committed or omitted, or alleged to have been committed or omitted, in the course of or ancillary to, exploration or development operations; (c) the assessment and payment of compensation pursuant to this Act; or (d) any 6ther matters in relation to exploration and development operations. • (2) PURA may, refuse to decide any dispute referred to under this Part and, if it does so, shall notify the parties to the dispute in writing accordingly. (3) No appeal lies to a court against a refusal of PURA made under subsection (2) to determine matters. 2015 151 (4) PllTRAmay make any decree or order which may be necessary for the purpose of giving effect to its decision in proceedings pursuant to this Part, and may order the payment by any pa y to a dispute; or such compensation as may be reasonable, to any other party to the dispute, • Enforcement ~f 243-(1) PURA may send a copy, certified under its hand, PURNsd ees and orders of any decree or order ,!Dade by P M to any court wi hin the local limits of whose jurisdiction the subject-matter of the decree or order is situated, and, subject to an appea the civil court shall enforce the decree or order of URA in the same manner in which .It en fiorce, '" its own decrees or orders. (2) The fees payable upon the enforcement of a decree or order are those which a e payable/upon the-enforcemen of a like decree or order made by the court concerned. ApPeal to the Fair 244. Any person aggrieved by a decision, decree or order C;on'ipetitioo Tribunal of PUM made or given pursuanrto ~ this art, may appeal to the Fair (iol!fpetition Tribunal\_within the period of thirty days after the decision, decree, or order is given 0 made,

245. A person shall noncommence Pl?ce~din s in a court in respect of any dis'pute of a kind referred to in section 240 unless PURA has refused pursuant to subsection (2) of that section to decide the dispute. "" Rules with respect - • to proceedings

246. PUM may make rules with res ect to initiation and conduct of proceedings under section 240 and keeping of records and notes of evidence concerning any such proceedings. (b) Set/element of Disputes Arisingfrom Downstream Regulated activities Disputes 247.-(1)'" Any dispute between a licensee and a customer or settlement between lice sees relating to apl\lication of this Act may 2_efiled with EWVRA for adjudication. (2) Nothing in~s section shall be construed to prevent a licensee, a customer or the Government, in its capacity as a patty tQ.. ~ny agreeJUent relating to gas industry. from agreeing to resolve any dispute arising out of any agreement between them or any third parties, through bidding arbitration or adjudicated in ordinary courts of la~~. I> -- _ I ,' .. ..... 152 No.21 The Petroleum 4.ct 2015 3 A per: n whq, is aggrieyed by any decision of, EWURA under this section may, within fourteen days from the date of the decision, appeal to the Fair, Competition Tribunal for determination. PARTxn GENERAl! PROV SlONS Sub-Part I General ~rovisions on Petroleum Operations Use of licence as 248.-(1) The Minister may after being advised by PURA, Security consent to the use of a development licence by a licence holder L under this Act as security of his share of the licence as part of the I- financing of the activities associated with the production .licence in a manner prescribed in the regulations. (2) The security referred to in subsection (1 shall be to the licence holder's share or entitlement of the future revenue - •• • I obtained from production of petroleum ~s provided for in the agreement. - I 249.-(1) An officer in the public service who engages in Conflict of interest the implementation of this Act shall not, in his private capacity) knowingly, directly or indirectly, acquire, attempt to acquire 'OJ. r - hold- (a) an interest in a licence for petroleum operations; (b) a direct or indirect economic interest, participation I - interest or share in an entity that is authorised under this Act to carry ou~pe~oleum 'Operations inTanzania; or • • - (c) a direct or indirect economic interest, participation interest or share in a body corporate that is providing -- goods or services to a licence holder under this' Act. (2) A person who contravenes subsection (I) commits an ~ - offence and shall be liable, on conviction, to a fine of not less than fifty million"" shillings or imprisonment for a term not less - - • • than five years or both. (3) In proceedings [or a prosecution for an offence under -. this section of acquiring OJ maintaining an interest of a kind ... referred to in subsection (1), it shall be a sufficient defence if the person charged proves that- • , . Ii • I _ ;i. r : I • the Petroleum ~CI 2015 153 a) the interest was acquired by operation of law; and (b) a rea enable teps to dispose of the interest has been t and is continuing to be under taken. \ Sub-Part II Gener.al Provisions on Natural Gas activities Quality and 25.0. All gas introduced into a system shall be of a quality standards consistent with that specified in the licence covering such system or in the tariffs as approved by EWURA pursuant to section 162, as to such properties as: (a) water and hydrocarbon dew point; (b) Sulphur: Hydrogen Sulphide, Carbon Dioxide, liquids including condensate and solids content; •• r (c) gross or net heating value of gas; (d) temperature and pressure at entry P9int into the system; and <e) Wobbe'Index. Oil and Gas 251. For purposes of ensuring: Revenues Fund (a) transparency and accountability . on collection, • allocation, expenditure and management of petroleum • -- and na ural gas revenues; - (b) that oil and gas revenue is used for sustainable development of the oil and gas industry and the benefit - of the present '~d future generations, the Government shall cause a; e actment of Parliamen providing for establishment of a fund into which shall be deposited revenues derived from oil and gas. '"" Powers of entry 252.-(1) EWURA any person authorised by EWURA may, , and inspection at all reasonable times- (i) enter any area, structure, truck. vessel or bui Iding that, .\t ,. - in its opinion, has been, is being or is to be used in connection with regulated activities; (ii) inspect and test, or have it tested by a qualified person, .. any machinery or equipment that, in its opinion, has been, is being or is to be used in connection w'ith any of the operations referred to in paragraph a); J (iii) take or remove for the purpose of analysis or testing or for use in evidence in connection with 89 offence .. 154 'No.21 The Petroleum Act: 2015 agains this Act; samples of gas or other gas related subst~; (iv inspect, take extract -frorn, and ake copies of any d cument relating to any of the 0 erations referred to in paragraph a)' (v} inspect for purposes of health and safety of erson employed by a licensee in connection with any 0 the operations referred to in paragraph a); (vi) make such examinations and inquiries as are necessary to ensure any directipn issued, restrictions im osed or • . _ orders made under this Act arc complied with; and (vii)obtain and record statements from witnesses, appear at or conduct inquiries with respect to accidents occurring in the course of any of the operations referred to in paragrapb (a). (2) Before exercising any of the powers specified under I subsection (I), if there is any person present who is or appears to -- • be in charge 0 the area stIjucture, truck, vessel, building, machinery, equipment or matt r or thing in respect of which such power is about to be exercised, EWVRA or authorised officer shall identify himself to that person and to any person to whom he is about to give an order or a direction. (3) Tnexercising any"power spcci (jed under subsection (I), I - • LI EWURA or authorised o:ffic r may be accompanied by any person to whom EWURA or the authorised officer believes he has special expert knowledge of any matter being inspected, tested or examined. 4) A person who is an occupier or in charge of any building, structure, place, truck, vessel, machinery or equipment 1'1 r ferred to in subsection (I , shall provide to EWURA or an authorised officer all reasonable cooperation for the effective exercise of the powers under this section . • Supplies or 253.-( I) Where there is shortfall in domestic gas deliveries to commodities or petroleum products supplies or delivery, the , - cover Tanzania requirements Minister may direct a licensee to make supplies or deli eries from a licensee's facility to cover for such shortfall of gas commodities • or petroleum produ_:ts and may furt er direct on whom sUc!hgas commodities or petroleum products shall be delivered. -- • (2) In the event of war.or the emergene affecting energy supylies, the Minister may require the licence holder or contractor ~ I I • III I '. II . tI· I ..... The Petroleum Acf.. to. to supply ~I 0 part of the quantity of petroleum produced at the prevailing market price to the Government of Tanzania or any Government agency, (8) Where the Minister directs a licensee to make deliveries in terms of sections (I) and 0), e Minister shall give the licensee notice prescribing the time which the delivery' t be made. Natural isastcr 254.-(1) In case of natural disaster or other extraordinary or other extraordinary cnsis, the Minister may direct the licensee to pJace gas disaster commodities or products at the disposal of the State, (2) In case a .ituation under subsection (1) occurs, the Minister shall, in consultation with the Minister r~sponsible (or finance and the licensee, determine the price of gas.

255. A person who is aggrieved by a decision, direction or order of EWURA or an .authorised officer under this Ac may within fourteen days from the date of the decision, direction or Cap.28S - order, appeal to the Fair Competition ribunal in acc?rdan e with the p ovisions of the Fair C6mpetition Act. Review 256.-(1) Any person aggrieved by any decision made under ._ - I this Act may, within thlrty days after the issuance of the decisi09' - apply to EWURA for review of such decision by tiling ~ motion • for review, which shall specify one or more of the following grounds for review: (a) the decision made was not based on evidence produced' I • - (b) there was an error in law; . - .,.-_. (c) there is a discovery ofn~w fact which if known earlier could have changed the decision of EWURA; or d) such other I?)ounds.as EWURA may consider: sufficient to warrant reconsideration. (2) E'wuRA may upon reccipr of the application, grant or deny the application, abrogate or modify its order without further -. hearing, -- (3) Unless EWURA acts upon application for reviewwithin thirty days after it is filed, such application shall be considered to have been refused. (4) The filing of an application for review shall extend any applicable deadline for filing an appeal pursuant to section 255 so that such appeal may be filed not later than the same number of days after the disposition of the application for review as the ..,'• 'I ThePetroleum Act 2015 appeal may have been led following the issuance of the decision for which a review is equested if the motion for review bad not been made. • Governments 257.-(1) The Government acting by and through anyone or rlgbtto intervene more of Government Ministries may, upon advice by the Attorney General, intervene in"any proceedings before EWURA in the same manner as any other interested party may intervene. (2) Any decision by EWURA shall be: .- (a) in the public interest; (b) within the p~wers of EWURt< as provided for in this , _- Act: (c) taken within a procedurally fair process in which all affected persons have the opportunity to submit their views and present relevant facts and evidence at their • t ,I own expense to EWURA; .. (d) based on, facts and evidence submitted to EWURA for its evaluation; (e) in writing; and (f) explained clearly as to its factual and legal basis and the 1 Regulations reasons for it.

258.-(1) The Minister, may make regulations providing for matters which under this Act are required or permitted to be prescribed for giving effect to this Act. . I (2) Without prejudice to subsection (I), the Minister shall make regulations providing for the- (a) in respect of upstream petroleum operations: (i) exploration or petroleum and the carrying on of operations and the execution of works for I that purpose; (ii) recovery of petroleum and the carrying our I operations, and the execution of works for that purpose; • (iii) conserving, and preventing the waste of the natural resources, whether petroleum or t (iv) otherwise, of the land to which this Act applies; construction and operation of pipelines, water lines, pumping stations, tank stations, valve stations or other installations for the carrying-on of the operations, and carrying out operations ,411 .. . • No.21 ThePelfoleum Act 2015 157 and exeoittien of works, toJ' aQiY of those purposes; (v) all.!llaJters relhting to Liquefied ~turaJ Gas; (vjJ construction, erection, maiDlenance, ~el'atjo'p or use of' nstallations or equipment; (vii) control of fthe flow anq, the- prevention of· be esoape of petroleum, wate , gases othe than petroleum or other, noxious 01' deleterious matter; (viii) prevention of escape of water or drillipg fluid or the Jmxture of; water or drilling fluid or any giher matter; Ox) removal of struct; es, equlp,Qle~l and other prope;ty brought into the Onited Republic qn connection with exploration .recqvery or conveyance of peuoleun; tha are not used or ir tende'l:l to be used in connection with hat explcration, recovery 1rr convey nee; (X) pressure maintenance in r the repressuring of a pefinleurn reservoir and the re~cycli.l)g of petroleum; secondary or tertiary recovery of petroleum from a petroleum reservoir and t11emethods to be used in such ~ecovery~ ~xii) use OF wells and the use of the subsurface. for the disposal of petroleum water and other substances produced in association with the exploration for ~ the recovery Of pe foleilm; (xiii) rates or method qf setting rates, a which petroleum and water may be recovered from any wen or etroleum reservoir; (xiv) methods to be used for measurement of ...... 'lI" petroleum, water and other substances from a well' (xv) safety standards ~ petroleum and ihealth ana safety or persons employed in the exploration for recovery 017 conveyance of petroleum; (xvi) taking,'p eserving and furnishing to EWURA cores, cuttings and samples from wells and ._ samples of petroleum and water; 158 No.21 The Petroleum Act 2015 (xvii) giving to EWURA reports, returns and other information; (xviii) taking of, logs or irectional s eys or making other down-hole investigations' (xix) ring fencin of recoverable Cost in relation to •- • exploration and development licence; • L - (xx) the manner of payment of any royalty and fees; or (xxi) the care and custody of records and reports; (b) in respect of mid and downstream activities: (i) assurance that supplies of gas are sufficient to • (ii) meet expected demand; third party access with respect to gas systems; (iii) promotion of import, export of gas and gas .. trade; (iv) promotion of research into, and the development of new techniques relating to the gas industry; (v) installation of meters m new premises, compressed natural gas cylinders, liquefied natural gas storage facilities and ships, trucks or I other modes of conveyance; (vi) recovery of charges for the supply of gas; (vii) connection or disconnection of service pipes; (viii) prevention of gas leakages including reporting requirements in cases of gas leakages; (ix) powers of entry for purposes of inspection, including entry into premises during continuance and on discontinuance of supply; (x) powers of entry for replacing, repairing or altering pipes; (xi) coordination and emergency response; (xii) health and safety provisions, governing protection of the public from injury, fire, explosions and other dangers arising from the transportation of gas; •• (- (xiii) distribution or the use of gas supplied through pipes; • - (xiv) , provisions for environmental matters; (xv) local content principles including the requirements for technology transfer 0 , •• r f No.21 The Petroleum Act 2015 159 knowledge and skills to anzanians; and ( xvOany other regulation f r better carrying out of theyrovisions and purposes of this A t. (3 Powers under this sec ion to make regulations may be exercised either in relation to all of those cases subject to speci lied exceptions, or in relation to any specified cases or class of cases. Rules 259.-(1) E RA may make rules prescribing- {a conduct of acti ities by licensees; and (0 performance 0 its functions under this Act, including- (i) the form, manner and contents of licence application; (ii) the form and a manner in which registration shall be made; (iii) the procedure to be followed in consi ering licence applications; (iv) damage to gas fittings and interference with gas meters; - (v) determination of tariffs, rates, charges and 7 - .. fees; (vi) regulatory st~dards· accounting and reporting • ... .. " ~ .. (vii) customer service standards: (viii) non-discriminatory access to gas facilities that are designed for common carriage, .. - - • (ix) the including gas transportation, distribution, storage and rc-gasifi"'cationfacilities; operation and management transportation and distribution systems; of • .. (x) monitoring technical and safety standards; (xi) i~ection of licensees books of account and _T_ - premises; (xii) metering; (xiii) the requirements for maintenance, drawing -~- .- up, auditing and publication. of s~arate accounts by licensees in respect of regulated 'activities; fI'!. (xiv) terms and conditions for licences. (2) PURA may make rules on the conduct of petroleum - operations prescribing- (a) the conduct of activities by the licence holder, contractors and permit holders; (9) the forrn, manner and contents of licence application; . -_ .'. .. ~ (c) the orm and a £ltanner in which registration shall be made; (d) the procedure to be followed in considering licence applications; (e) damage to gas fittii gs and interference with gas I I,.. meters; (f) determination of tariffs, rates, charges and fees; .- • -I., • I I (g) regulatory accounting and reporting standards; (h) customer service standards; (i) monitoring technical and safety standards; 0) inspection of licence holder and contractor books of I account and premises; ,..:- • I I - (k) metering; and (I) any other matter as may be necessary fo the implementation of this Act. .. ~ (3) Powers to make rules under this section may be exercised either in relati09 to all cases subject to specified exceptions' or in relation to any specified cases or class of cases . Sub-Part III ...• Rcpea] and savings .t \ '-' •. • Repeal and savings Cap.328 and

260.-(1) The Petroleum t(Exploration and Production) Act and the Petroleum Act are hereby repealed. • Cap.392 (2) Any subsidiary legislations made under the Petroleum (Exploration and Production) Act and the Petroleum Act which are in force immediately before the commencement of this Act, shall remain in force, so far as they are not inconsistent with this Act. I; (3) All existing licences granted or agreements entered for • I Cap.328 the purpose of carrying out petroleum opera~,ons 9,1' petroleum supply by a person to whom the licence was issued under the Petroleum (Exploration and Production) Act or the Petroleum Act II' shall be deemed to have been granted or made for the purpose of this Act and shall remain in force and effect until lawfully 1= • _I - determined. - ... s • •• -• 4) Where at the corrimencement of this Act, a person is carrying on petroleum operations or petrolewn supply in which he was l!0t required by any law to be licenced or 0 hold a grant or I - . -1- - • • l II - N'o:21 The-Petroleum Act 2015 161 lease to do so, but.!..nrespect of which the per it is required in this Act or the regulations such person shall be deemed-to be a permit ( holder for the purpose of this Act. (5) Where any lawful act or Hung required or permitted to ~ be d~ne by or under this Act was done before the effective date of thi Act, that act or thing shall be deemed to have been done under or by virtue-of this Act. (6) The current participants in the supply chain shall, whether licensed or not and within one year from the commencement Of this Act, adjust operations and facilities in order to comply with the provisions of this Act. IJ:JRSTSCHEDULE (Made under section 200) Vice I.'Members of the Board shall elect from amongst themselves Chairperson a ice Chairman of the Board Tenure of 2.-(1) The Chairman and members of the Board shall hold omceof such position for the following fixed terms: Board (a) Chairman, five'years; members (b) . (c) one member of the Board, five years; (d) two members of the Board, fours years; and (e) one member of the Board, three years. (2) The Chairman and members of the Board shall each be ,eligible for re-appointment for one further term of three years. Termination of 3.-(1) A member of the Board may. at any time, resign from appointment office by thirty days notice in writing delivered to the.Minister. (2) The Minister may remove a member ~fthe Board: - (a) if information relating to the conduct of a member, which could have precluded his appointment if it had been made • available to the Minister, is brought to the attention of the Minister: (b) for incompetence; (cl_ for misbehaviour or misconduct, (dP for failure to disclose, at II Board meeting, 3 matter in which he has an interest; (e) for inability to p rform the functions of his offiee arising from infirmity of body or mind; (I) who has been convicted of an offence and sentenced to imprisonment by a competentjcourt in Tanzania or outside ,.. Tanzania; _- ......- !62 No.2 Petroleum Act 2015 (g) for bankruptcy or insolvency; or (h) (or absence, without prior permissiop of the Chairman, or without reasonable cause to the satisfaction of the Minister. or more than four consecutive meetings of the Board, or ) ~ absence from Tanzania for more than twelve months. (3) Where it appears to ~e Tvgnlster that there is cause to r remove a member under subparagni~h (2), the Minister shall notify the member concerned in writing and s~aIl give the member an opportunity , to sub it his explanation to the Minister. r (4) A person removed under this paragraph is not entitled to any benefits tbat may be payable to him. Remuneration 4. T~e Chairman and 0 her members of. the Board shaU bc paid of Board such remuneration as may be determined by the Minister. members FiPingof .-G) Where a member of the Board resigns, dies, is removed vacancies on from office or is for any other reason unable to act as a member of the the Board Board, the Chairman shall notify the Minister of the vacancy within 0 e mo..!,1th after the Qccurrence"i'ofthcvacancy. (2) The Minister shall, after being notified of the vacancy under to subparagraph (1) appgint another person hold office for the remainder of the term of the previous member. (:v Where the member of the Board referred to in subparagraph (1) is the Chairman of the Board, the Secretary to the Board shall notify the Minister of the vacancy and the Minister shall advice the President accordingly to appoint a person to hold the office of Chairman for the, unexpired portion of the Chairman's term of office. • ..... - f/.- III I II _II - - .. No.21 The Petroleum Act 20).5 163 SECOND SCHEDlJ,LE • (Made undersection /13(/)) ROYALTV AND PROFIT SIJAR A licence holder on behalf of itsel f and the Contractor shall discharge okjigation Ie;> pay royally out of gross production under the Act in respect o( petroleum produced from the Contract Area, by delivering to the Government 12.5% for onshore/shelf areas and 7.5% for offshore of total crude oil/natural gas production prior to cost oil and or cost gas recovery at such royall)l otherwise tel be delivered to the Government in such manner as the Government may direct. ~~ UllRDS DULE (Made under section 161(12) EXEMPTION fROM OBLlGATrOWTO APPLY FOR Aj'JD HOLD NLlCENCE

1. A person engaged in ga reti ulation for thaLperson's exclusive use.

2. A person involved in gas rcticulatioh'and trading activities incidental thereto. Passed by the National Assembly on 51h July. 2 l5 . ................. ; . Clerk of the National Assembly (