Strategic Significance of National Oil Companies: Lessons for Tanzania
The genesis of NOC’s is examined in this paper and how these institutions have contributed to the development needs of countries that have established them. The essay serves to enhance dialogue on this subject and to locate the evolution of the Tanzanian NOC within a broader industry context. The key proposition underlying this essay is that the benefits of hydrocarbon to the country can be maximized when both the NOC and operating institutional framework are robust. In Section 2, the paper reviews the factors behind the growth and expansion of NOCs globally. Section 3 examines the basic features of five selected NOCs, and presents an overview of the Tanzanian oil and gas industry and the evolution of its national oil company. In Section 4, the fundamental aspects of competition and collaboration is reflected upon in NOCs’ global ambitions and section 5 draws implications and lessons for Tanzania with reference to Tanzania Petroleum Development Company (TPDC) as a national oil company.