CLYDE & CO UPDATER - NEW PETROLEUM REGULATIONS ON THE CORPORATE INTEGRITY PLEDGE

In this month’s article, we discuss the key provisions of the New Petroleum Regulations on the Corporate Integrity Pledge. The Regulations require all licence holders and contractors undertaking petroleum or gas activities to comply with the integrity pledge.

The Regulations are made under section 223(3) of the Petroleum Act No.21 of 2015 (the Act). The Regulations entered into force on 1 November 2019, following their publication in the Government Gazette of the same date (Government notice number 782 of 2019).

Key definitions

Corporate Integrity Pledge is defined in the Regulations as a formal, unilateral and concrete expression of commitment by contractors, sub-contractors, licensee or any other person conducting petroleum operations to uphold corporate anti-corruption principles, abide by ethical business practices, support a national campaign on ethics and war against corruption.

Covered persons are:

1. all owners who are natural persons (other than shareholders who have an ownership interest of less than 5% and acquired the ownership interest through public trading); and
2. all officers, directors and employees of the contractor, sub-contractor or licensee with responsibilities relating to petroleum activities and operations.

The Regulations govern corporate integrity pledge programmes related to upstream, midstream and downstream activities in Mainland Tanzania and Zanzibar, and are enforced by the Petroleum Upstream Regulatory Authority (PURA) and the Energy and Water Utilities Regulatory Authority (EWURA).

The corporate integrity pledge

The objectives of the corporate integrity pledge are to:

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