We are building a strategic oil reserve, says Makamba

We are building a strategic oil reserve, says Makamba

The Minister of Energy and the Bumbuli MP, Hon January Makamba, said that one of the energy sector’s significant successes was establishing a strategic oil reserve in one year of President Samia’s presidency. Hon Makamba said that yesterday March 25, 2022, on Azam TV program themed ‘the success of President Samia’s 1st anniversary.

“You all know that a country has a plan to establish the strategic oil reserve. In 2014 we had the first framework, this year [2022], we reviewed the 2014 moribund framework. So in one year of President Samia’s leadership, we are currently drafting the new framework for strategic oil reserve,” – said Makamba.

Speaking of TPDC, Makamba said that for the first time, the Tanzania Petroleum Development Corporation (TPDC) has directly engaged in the oil business, something that did not exist before. 

“The government purposely did that for government institutions to know where to get oil, who sells oil, who to call for oil, and where to send money for oil; these are the things we have not done before,” – added Makamba.

“We have ordered 81 million litres of oil through the corporation [TPDC] in the last few months. We will keep strengthening the corporation’s ability to work professionally and meet its full potential,” – said Makamba.

Mr. Makamba also revealed that the consumption of dirty oil by the people in the villages is adversely destroying their machines and vehicles. In dealing with the situation, the Energy Ministry spoke with the Energy and Water Utilities Regulatory Authority (EWURA) to amend some of the codes to facilitate feasible construction of small oil filling stations in the villages that will sell oil at uniform cost.

Speaking about the Petroleum Upstream Regulatory Authority- (PURA. In one year of President Samia’s presidency, the government has prepared all plans to enter into auction to start research in oil fields next year. 

However, Makamba has admitted the country to face the oil storage problem and poor infrastructures to support attending bigger ships at the dock. However,  still, the government is working to seek a permanent remedy to the situation. 

“When we went with to the Arabian Gulf with President Samia, we had spoken with various organizations to make sure we prepare the feasible environment for unloading, offloading and transportation of oil at our ports,” – Said Makamba.

According to Makamba, the current government’s plan to ensure the oil pipes extend to where ships dock at the high water to offload oil effectively. For now, there is one small pile.

For now, there is one pipe for Diesel that can hardly sustain the ship’s pressure when offloading the oil from the ship; thus, instead of taking three days to offload oil, it takes nine days.

“These are things President Samia’s government has been trying hard to solve in the past year,” – Said Makamba.