Tanzanian gas pipeline plan sparks riot

Residents of a gas-rich region of Tanzania rioted to protest that they would not benefit from a government budget proposal to construct a pipeline from their territory to the capital.

Tanzania estimates it has more than 40 trillion cubic feet (tcf) of recoverable natural gas reserves. Discoveries off east Africa's seaboard have led to predictions the region could become the world's third-largest exporter of natural gas.

Residents of the southern Tanzanian Mtwara region are opposing the construction of a 532 km (330 mile) pipeline - financed by a $1.2 billion Chinese loan - until they get a bigger share of the benefits from gas development.

Tanzania's deputy home affairs minister, Pereira Silima, said riots had erupted in Mtwara but could not give details. Local media reported that police fired teargas, several buildings were torched and one person was killed.

The state-run Tanzania Petroleum Development Corporation (TPDC) said Mtwara was one of two regions in southern Tanzania where onshore liquefied natural gas (LNG) plants will be built.

Norway's Statoil, Brazil's Petrobras, Royal Dutch Shell and Exxon Mobil Corp are among energy companies exploring for oil and gas in Tanzania.

British gas firm BG Group said earlier this month it would present the Tanzanian government with proposed locations for a big LNG terminal in the next few months.

Tanzania to hold exploration licensing round in October

Tanzania plans to hold an oil and gas exploration licensing round in October at which it will offer seven deep offshore blocks and one onshore block to explorers, state-run Tanzania Petroleum Development Corporation said.

TPDC said in an undated notice on its website that the round was a revival of an auction slated for September 2012 that was postponed as Tanzania formulated a new oil and gas policy. 

Statoil makes another gas discovery off Tanzania

Norwegian energy firm Statoil made another natural gas discovery in the Lavani-2 exploration and appraisal well in Tanzania.
According to a statement by the company, "Statoil and its co-venturer ExxonMobil Exploration and Production Tanzania Limited will announce updated total volumes in Block 2 next year". "An increase in the upside potential of the Block is expected following further evaluations of the well," it added.

We were misled to reflag Iranian ships - Tanzania

Tanzania said a shipping agent based in Dubai had reflagged 36 Iranian oil tankers with the Tanzanian flag without the country's knowledge and approval. Tanzania said it was now in the process of de-registering the vessels after an investigation into the origin of the ships concluded they were originally from Iran. Tanzania launched an investigation over accusations that it had reflagged oil tankers from Iran and asked the United States and European Union to help it verify the origin of the tankers flying the east African country's flag.

Howard Berman, the ranking member of the U.S. House Committee on Foreign Affairs, had accused Tanzania of reflagging at least six and possibly as many at 10 tankers, saying it was helping Iran evade U.S. and European Union sanctions aimed at pressuring Tehran to curb its nuclear program. He said Tanzania could face U.S. sanctions for the practice.

Re-flagging ships masks their ownership, which could make it easier for Iran to obtain insurance and financing for the cargoes, as well as find buyers for the shipments without attracting attention from the United States and European Union.

 The National Iranian Tanker Company (NITC) changed the names and flags of many of its oil tankers ahead of the EU ban, part of sweeping economic measures aimed at pressuring Tehran to end its nuclear program.

The ships flying Tanzania's flag were re-flagged by Zanzibar, which has claimed it was misled by its Dubai-based agent, Philtex, and would end its contract with that firm.