Mr Simbachawene said this in Dar es Salaam during the Tanzania oil and gas conference jointly organised by the University of Dar es salaam’s College of Engineering and Technology, Ministry of energy and Minerals Resources and Energy and WaterUtilities Regulatory Authority (EWURA).
He said through such a model, oil companies bear all the risks from exploration to production phases. He said while the approach was rewarding in attracting foreign capital due to the fact that the state remains the owner of the resources, it often involves considerable risk to host countries due to limitation in human capital to provide proper oversight leading into lost revenue.
The conference brought together local and foreign experts in oil and gas to create a platform for sharing views, experiences and ways to develop, manage and finally achieve win-win situation solution in exploration, exploitation and utilization of gas.
He said according to the Tanzania Petroleum Development Cooperation (TPDC), about 61 wells have so far been drilled in the country both offshore and onshore during the past 60 years and the country has recently discovered large amounts of natural gas about 33 trillion cubic feet (tcf).
Mr Simbachawene said such large discoveries have made the country a major player in natural gas production at global level. He said if properly managed, current resources could bring about major revolution of the country’s economy.