Zanzibar is back on the national and international agenda. Of course it has always been on
the agenda ,In a statement released to the media,The reassurance was given by Zanzibar President, Dr Ali Mohammed Shein when he held discussions with The Netherlands minister for Trade and International Cooperation, Ms Lilianne Ploumen. Dr Shein said his tour of Netherlands is focusing on new areas of partnership as part of the efforts by the two countries to strengthen bilateral relationships which has been there for years For her part, Ms Ploumen said the Netherlands government was ready to assist Zanzibar in the energy sector.
“We have great expertise in designing, managing, and conducting energy sector ... we are ready to cooperate with you by using our experience to strengthen the industry in your country,” said the minister..a row had developed over who is responsible for any oil that might be discovered in Zanzibar – the Union government or the Zanzibar government. Aparently the company that is operating in Zanzibar/Pemba is a Canadian one. It is known as Antrim
Resources among other names. Shell International from Holland is also operating,
albeit in the Deep Sea Blocks Number 9, 10, 11 and 12 which, in a way, surround
Zanzibar. As a matter of fact the whole on and off shore of the Indian Ocean in Tanzania is licensed for
oil/gas exploration and companies from as far afield as Australia, Brazil and the United Kingdom are involved.
It is thus quite clear that there is an international scramble for oil and gas in this Eastern board of Tanzania/Africa. This, I contend, is the one of the main reasons why many attention is the reason many are have interest also Holland is so interested in what is going on in Zanzibar. As history has taught us Zanzibar has always been a strategic area.The rocky partnership between the two parts of Tanzania is at times looking like it will be torn apart to oil discovery.
Commenting on this historical legacy, Abdulrahman Mohammed Babu said: ‘A country like Zanzibar was quite strategic in superpower manoeuvres because of its historic role in influencing events in the region.’ This is the Zanzibar that attracted a whole Empire to move its capital from Muscat into it. It’s the Zanzibar that is facing the shaky Middle East. It is a Zanzibar that is a corridor to Somalia, the new zone of piracy. Who wouldn’t want to control such a Zanzibar?
Business analysts especially in chambers of commerce and the Tanzania Petroleum Development Corporation (TPDC) have often raised the point that political attitudes in Zanzibar are the main cause of frequent withdrawals of oil exploration offers on Zanzibar coastline and waters, as in the case of a finding, companies realize that intractable legal wrangles would ensue, making routine work impossible to assure, especially if such assets will be under Union government revenue administration.
Chances are that sabotage could even start; Zanzibar don't feel part of the Union and oil is top issue there. In other words there is both a Biafra-like phenomenon with the Union generally, but if one introduces oil, the combination leads to be breakup of the country, which would resolve the legal problem with regard to investments in oil or gas.
Yet it isn't easy to reach a settlement either about withdrawal of oil and gas from Union affairs, which is being demanded by the Isles House, in which case exploration fails to put the necessary effort in that part of the coastline.
Gas exploration requires drilling of test wells with considerable frequently as rock formations aren't fully contiguous from one area to another.
TPDC officials point out that when it relates to exploring gas or oil in Zanzibar or within its territorial waters, Zanzibar authorities want a separate agreement with investors, Instead of single agreement covering Tanzania as a whole. It is hard to see how this contention can be resolved since natural resources are non-Union matters, and as oil exploration requires a contract covering the exploration and exploitation phase, this investor preference clashes with constitutional prerogatives which are meant to be utilised.
Logically therefore Zanzibar is within its legal privileges in relation to non-Union matters, but the specific application of such privileges need to conform to unity of law in relation to sovereignty, in which case oil exploration and exploitation pervades ‘local institutional.’
Despite that oil exploration has been active in Zanzibar since 1997,
In case such a firm has a firm base on the Mainland and is already tied up in terms of taxes with Union revenue authorities, issues of its specific liabilities to Isles authorities could take the form of 'corporate social responsibility' in like manner as gold mining firms contribute fixed amounts to local governments. Obviously some hedging would be expected in this case as Isles can't be figured in similar manner, but a royalty claim.
In the final analysis it can't be said that there is such a vacuum in the legal standing in relation to exploration as to actually hinder it from taking place in Isles waters or coastal zone, but companies may look askance at a situation where starting gas exploitation sparks protests if it obviates Isles control.
In other words the problem is less what the Union authorities are doing in that area, what sort of legal directives they have given to exploration firms as to the final or relevant legal regime but companies taking a hedge on the situation.
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