Legal team size: Three

What are the most significant cases and transactions that your legal team has recently been involved in?

To comply with local content requirements in the mining sector, our company entered a strategic joint venture with a prominent Tanzanian firm. This partnership aims to supply high-quality petroleum products and services to major mining operations in the region. Our legal team played a crucial role in structuring the joint venture agreement, ensuring it met regulatory requirements and aligned with local content policies. This included detailed negotiations on equity participation, governance structures, and the transfer of knowledge and technology to our local partner.

Over the past year, we have also successfully resolved several disputes with retailers and distributors concerning contractual obligations through settlements. These disputes often arise from differences in interpreting contract terms. Our legal team has been proactive in facilitating settlements through mediation and negotiation, thereby avoiding prolonged litigation processes. By fostering open communication and finding mutually agreeable solutions, we have maintained strong relationships with our retail and distribution partners while upholding contractual compliance.

In summary, our legal team has been actively involved in several significant cases and transactions in Tanzania, focusing on joint ventures with local partners, resolving disputes with retailers and distributors through settlements. These efforts not only ensure compliance with local content requirements and regulatory frameworks but also position our company for sustained growth and success in the dynamic Tanzanian market. Through strategic legal guidance, effective dispute resolution, and proactive project management, we continue to strengthen our operations and contribute to the development of the energy sector in Tanzania.

Which recent political, economic or regulatory changes have impacted your work the most in recent years?

Changes in political leadership have brought shifts in policy priorities and governance styles. This change has required the legal team and I to stay updated with new policies and engage more closely with government stakeholders to ensure compliance and capitalize on new opportunities.

The Tanzanian government’s focus on ensuring that the benefits of the country’s natural resources are maximised for its citizens has led to increased scrutiny of foreign investments. This includes initiatives aimed at increasing local content and participation in the oil and gas sector. I have been actively involved in ensuring that our operations align with these nationalistic policies, which includes negotiating local content requirements and fostering partnerships with local companies.

Fluctuations in the Tanzanian shilling have impacted our financial planning and pricing strategies. The volatility of the local currency against major foreign currencies has necessitated careful financial risk management and the inclusion of currency hedging mechanisms in our contracts. The legal team has been essential in drafting and negotiating terms that protect our company from adverse currency movements.

Tanzania has implemented stringent local content regulations requiring oil and gas companies to prioritise Tanzanian goods and services, employment, and training. Compliance with these regulations has involved significant adjustments to our procurement processes, human resources policies, and community engagement strategies. Our legal team has been instrumental in interpreting these regulations, ensuring compliance, and negotiating terms with local suppliers and partners.

The government has introduced more rigorous environmental and safety standards aimed at protecting the environment and ensuring the safety of operations. Compliance with these standards has required investments in new technologies and processes to minimise environmental impact and enhance operational safety. The legal team has been involved in securing the necessary environmental permits, conducting impact assessments, and implementing compliance programmes to meet these enhanced standards.

Changes in taxation and fiscal policies, including adjustments to corporate tax rates, import duties, and other levies specific to the oil and gas sector, have directly impacted our cost structure and profitability. Our legal team has been involved in tax planning and restructuring to optimise our tax liabilities while ensuring full compliance with Tanzanian tax laws. We have also engaged with tax authorities to resolve disputes and seek clarifications on new tax regulations.

In conclusion, our legal team has been at the forefront of navigating these changes relating to political, economic, and regulatory by ensuring compliance, mitigating risks, and leveraging new opportunities for growth. Through strategic legal guidance and proactive engagement with stakeholders, we continue to adapt to the evolving landscape and position our company for sustained success in Tanzania’s dynamic market.