Tanzania looking for solution for its main oil refinery

May 12, 1998 The Tanzanian government is considering whether its main oil refinery should be closed or sold to the private sector.
"We had a study from the World Bank that said we should get rid of the refinery," deputy minister for energy and mines Manju Msambya told. "But after consultation with the petroleum industry in the country, we found it was not ideal at this time."
The World Bank's report said the TIPER in Dar es Salaam was fundamentally uneconomic.
But Msambyu said the government was reluctant to close it until alternative arrangements are made, adding the Bank had given the government time to decide the best course of action. "We have agreed with the World Bank that we should find the modalities to handle the refinery," he said.
The refinery has an annual available capacity of around 660,000 tonnes a year, or nearly 60 % of Tanzania's annual consumption of petroleum products of around 1.2 mm tonnes, according to TIPER general manager Josephat Mlambo.
It has been undergoing continual rehabilitation since 1991.
Recently it has been shut for maintenance for 30-40 days after a burst gas pipe caused an explosion and fire at the site.
Another fire last December caused extensive damage to the refinery.

The government study, being carried out by independent consultants for the ministry and the Tanzanian Petroleum Development Corporation, will consider whether the refinery can be kept open by selling all or part of it to the private sector, Msambya said.
A preliminary report on the state of the refinery has been prepared but final recommendations are due by the end of June, Mlambo said.
Msambya said a company from the United Arab Emirates had already expressed some interest in investing in the refinery.
The government would consider all options in a possible sale, including floating shares in the refinery on the nascent Dar es Salaam Stock Exchange, he added.
Tanzania is committed to liberalise and privatise all its holdings in the oil sector in the next 2 years.