Makamba, however, has shown himself to be a вЂњvocal Magufuli criticвЂќ. Kalemani was seen as a вЂњroadblockвЂќ and his relationship with oil companies was вЂњpretty poor,вЂќ Bruce says. Hassan has removed MagufuliвЂ™s energy minister, Medard Kalemani, and replaced him with January Makamba.

A more radical move, he adds, would be for the companies to design a scaled-down version of the project, which could drop, for example, the planned onshore liquefaction plant.

Shell and Equinor, he adds, are likely to be pushing for better tax terms, and could also try to lower costs, for instance through a lower local content requirement.

вЂњSomething still has to change to make the problem economically attractive,вЂќ Bruce says.

At the time, the company said the projectвЂ™s estimated breakeven price was well above EquinorвЂ™s $40 per barrel average portfolio breakeven.

The economics may not stack up versus other possible investments, he says, pointing to EquinorвЂ™s decision to write down its $982m investment in the project at the start of 2021. However, even if an agreement is reached with the government, he says, itвЂ™s possible the companies still might not go ahead. The fact that dialogue has restarted is вЂњvery positiveвЂќ and is an вЂњimportant signpost,вЂќ Bruce says. READ MORE Nigeria's new petroleum law is forging a new trajectory for natural gas There are still big hurdles to overcome.вЂќ These, Bruce says, are вЂњall potential sticking points. вЂњThe economics are difficultвЂќ for LNG as a greenfield project in Tanzania, which lacks developed infrastructure, says Roderick Bruce, associate director at IHS Markit in London.ДЄ host government agreement would need to cover fiscal terms, and the questions of domestic market supply and local content. The fact that it has not been developed since, hints at economic as well as political obstacles. The first discovery of Tanzanian natural gas was made in the Lindi region in 1974. вЂњWe expect stakeholders to fast-track negotiations and get the ball rolling.вЂќ There is currently a вЂњfavourable window of opportunity with mutual benefits for the government and foreign investorsвЂќ, says Zaynab Mohamed, an analyst at Oxford Economics in Cape Town. вЂњWe are pleased with the energy and momentum brought by the government of Tanzania and look forward to having constructive discussions over the coming months.вЂќ The talks aim at establishing a вЂњcompetitive and attractive projectвЂќ, the statement says. Equinor operates TanzaniaвЂ™s Block 2, in which ExxonMobil also has a stake, while Shell operates Blocks 1 and 4.вЂњWe have been engaging with the government of Tanzania and continue to be pleased about the partnership, cooperation and opportunities associated with the potential project,вЂќ says Jared Kuehl, vice president and country chair, Shell Tanzania and Equinor TanzaniaвЂ™s country manager Unni Merethe Skorstad Fjaer.Shell and Equinor made a joint statement to The Africa Report on the progress of the talks. The government is now aiming for construction to begin in 2023. The Bank of Tanzania projects that the initiation of the project alone will add two percentage points to the countryвЂ™s economic growth. The project has the potential to end energy shortages in the country, he says. The project has many benefits, from the initial inflow of foreign investment and the employment generated, to solving the countryвЂ™s energy challenges and garnering export revenue, Muhingo says. sanctions and the highest COVID-19 death toll in the Middle East.READ MORE Tanzania: President Hassan continues in Magufuli's footsteps In October 2020, the rial currency hit a record low of about 320,000 to a dollar as a drop in oil prices deepened the economic crisis in the country already reeling under U.S. It said the dollar gained 6,000 rials to 299,500 before rising above 300,000 on Saturday. 'The market has received a first shock from the nuclear accord (talks),' wrote the economic news website. dollar was selling for as much as 302,200 rials on the unofficial market on Saturday, up from 294,000 on Friday, according to the foreign exchange site. Washington said Tehran 'does not seem to be serious'. Indirect U.S.-Iranian talks on saving the 2015 Iran nuclear deal broke off on Friday until next week, with European officials voicing dismay at sweeping demands by Iran's new, hardline government. DUBAI, Dec 4 (Reuters) - The Iranian rial currency dipped on Saturday but remained above historic lows after news that talks with world powers to revive the 2015 Iran nuclear accord may have run into difficulties.

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