The governance of the petroleum sector in Tanzania: Institutional arrangements and the role of the National Oil Company

This paper provides evidence of how Tanzania, a developing country, is attempting to develop institutions for the governance of the petroleum sector. The paper focuses on the role of the National Oil Company (NOC) and places it in the broader governance reforms of the country's petroleum sector. It contributes to the current debates on the roles of NOCs. It examines the developing institutional context and the evolution of Tanzania's national oil company, highlighting the critical moments for this institution. The paper is based on data collected through the use of interviews and documentary analysis. The findings show that the role of the corporation has evolved overtime from license monitoring, importation of oil and general promotion of petroleum sector in line with the operational country context. The recently enacted legislations attempt to steer the corporation toward implementing two roles: the commercial and socio-economic development. Effective execution of both roles is faced with challenges. The ongoing transformation of the national oil company has yet to result in a clear focus for the corporation within the broader commercial role and execution of the socio-economic development role runs the risk of being sidelined due to existing limitations.