The African Development Bank Group (AfDB) places renewed emphasis on Natural Resources Management as a transformational platform, emphasizing the role of natural resources in widening access to resources, promoting inclusive growth and transitioning to green growth. In order to respond to the challenges facing sustainable management and use of Africa’s natural resources, the AfDB created the African Natural Resources Center (ECNR). The ECNR is a non-lending knowledge building entity whose mandate is to assist African governments maximize development outcomes derived from natural resources in Africa by boosting the capacity of the governments to achieve inclusive and sustainable growth from natural resources.
Petroleum resources are found in the subsurface without regard to country boundaries. Whenever possible, proper resource management should involve holistic management of the resources without limiting portions of the resources to one set of legislation different from the other. For purposes of trade and utilization of the petroleum commodities and products in a region, it is important that the region handles the petroleum in an integrated manner such that economies of scale
and availability of markets are taken advantage of in the same region.
2. Objective of the Study
The objectives of the study/assignment are:
i) Contribute to the harmonization of existing petroleum upstream, midstream and downstream policies, laws, regulations and institutions in Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.
ii) Develop understanding of how harmonisation of petroleum policies, laws, regulations and institutions in the region could affect other sectors of trade, markets, environment and tax management among others.
iii) Develop an approach for the Bank’s support for petroleum projects that enhance regional integration and promote provisions of world trade organisation in consultation with regional communities and individual Regional Member Countries.
3. Scope of Work
The following will be the scope of the study;
a) Review existing petroleum upstream, midstream and downstream policies, laws, regulatory and institutional framework in Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda indicating what would need to be revised or freshly prepared in each of the countries for a harmonised set of petroleum legislation in the region.
b) Identify within the existing petroleum policies, laws, regulations and institutional frameworks provisions that hinder the attraction of investments, negotiation of good contracts and sharing of infrastructure across borders.
c) Previously in the region, negotiations for petroleum upstream licensing of new companies was on first come first serve basis. However, as oil and gas discoveries were made, there has been a move towards competitive licensing rounds. The study will evaluate suitability/appropriateness of existing policies, laws, institutions and regulations covering them.
d) After comparison and benchmarking of the petroleum upstream, midstream and downstream policies, laws, regulations and institutional framework, proposals will be made on what may be harmonized within the region and highlight the benefits of the harmonization.
e) Evaluate how harmonisation of petroleum policies, laws, regulations and institutions could affect other areas of trade/markets, environment, infrastructure and tax management among others.
f) Propose ways of bridged information gaps between the countries in the petroleum sector.