Home > Sectors > Energy

The Energy Sector

Energy is one of the most important and fast growing and changing industrial sector in Tanzania. The need to reduce greenhouse gas emissions, glowing global and national demand, increased government’s need to ensure energy security and increased foreign direct investments (FDIs) in Tanzania in the energy sector, means that government and energy companies are faced with some of the most complex and challenging decisions that will have an impact not only on economic prosperity, but also on the long-term relationship between investors and host governments. It is also key for companies investing in energy sectors to ensure security and stability of their investments and equally important for them, is to ensure they derive appropriate and acceptable rate of returns from their investments.

All these factors, coupled with volatility of the energy industry, make this an exciting industry to work in, and one that requires its advisers to have sector-specific knowledge backed by global, regional and national resource capability. FK Law Chamber’s energy team is at the forefront of this sector, providing clients with advice on matters relating to power and utilities, transmission and distribution, oil & gas contracting and negotiating favourable fiscal terms (upstream, midstream and downstream and Liquefied Natural Gas (LNG) projects), and environmental and decommissioning.

FK Law Chambers provides advice on the entire lifecycle of energy sector, from contracting, consenting and planning process, through to construction, financing, operation, maintenance and ultimately their refinancing or sale. We advise potential sellers and acquirers on cross-border and national mergers and acquisitions transactions and their potential tax implications, project sponsors, corporates, financial/passive investors, suppliers, manufacturers, governments and debt funders on energy transactions. These transactions are supported by our specialists in areas such as environmental, regulatory, tax, competition, employment and planning law.

Oil and Gas

FK Law Chamber’s market leading Oil & Gas practice advises governments and National Oil Companies (NOCs), International Oil Companies (IOCs), Independent Oil and Gas Companies, Oil and Gas Technical Service Companies, and funders (debt and equity) on all aspects of oil and gas supply chain, including upstream (exploration and production), midstream (storage and transportation), downstream (fuels and lubricants, marketing and refining) and LNG. Our Oil and Gas Law team is the leading providers of legal services with in-depth knowledge on the oil and gas sector in Tanzania.

Our industry specific practice advises clients on transactions relating to project development, M&A (both public and private), funding (equity and debt), energy trading, litigation and international arbitration. All these transactions are supported by our market leading experts in areas such as taxation, contracting, regulatory, corporate, environment, project planning and financing, to mention a few. Our experts are well informed with the dynamisms of the Tanzania’s oil and gas sector after spending considerable amount of time either researching on the oil and gas sector in Tanzania, or working as consultants to both the industry and the government.

Mining & Metals

FK Law Chamber’s Mining & Metals team of experts comprises of lawyers who advise on a broad range of companies in the mining and metals sector, including major mining companies, junior mining companies, development banks, international financial institutions, commercial banks, contractors and government across the full range of issues that apply across the sector. Our industry specific practice advises clients on transactions relating to project development, M&A (both public and private), funding (equity and debt), minerals and metals trading, litigation and international arbitration. Our combination of our experience across the full life cycle of a mine – from acquisition and financing to expansion and disposal – means we can provide a comprehensive understanding of the mining sector in Tanzania, and the likely issues and solutions that arise in a wide range of transactions. We always strive at finding commercial solutions for investors in complex legal and regulatory regimes. Besides M&A and financing expertise, this also requires a solid understanding of the applicable tax and regulatory rules that cross beyond one jurisdiction.

All these transactions are supported by our market leading experts in areas such as taxation, contracting, regulatory, corporate, environment, project planning and financing, to mention a few. Over the past decade FK Law Chambers has handled a number of tax cases involving mining companies and provided high quality tax opinions and legal services for companies working in the mining sector.

Energy Disputes

The Political and economic volatility in the energy sector has resulted in complex, high-value energy disputes in a range of jurisdictions.

The increasing incidences of state intervention, as a result of a state viewing the originally agreed terms to be unfavourable to the government (this happens when all exploration and investment risks which formed the basis to agreeing to the terms have been eliminated), increasing renegotiation demands by the government, coupled with more intense competition for resources and stronger regulation, has also contributed to a rise in contentious matters.

At FK Law Chambers, we advise on many of the most high profile cases in this area, managing effectively and efficiently numerous disputes where hundreds of millions, sometimes billions of dollars are at stake. As a matter of fact, these cases are characterized by significant volumes of documentation and complex, disputed facts and points of law involved. We have an excellent record of assisting our clients in avoiding or resolving disputes and regulatory issues through negotiation, mediation, international arbitration, litigation, neutral case evaluations and other forms of ADRs. All these transactions are supported by our market leading experts in Alternative Dispute Resolutions (ADRs), strategic litigation, and international arbitration.