News Column

TIPER Pays Treasury Sh1.27 Billion Dividend

June 16, 2014

Tanzania Petroleum Reserves Limited (TIPER) Managing Director Daniel Belair shakes hands with Acting Treasury Registrar Mr Mwakibinga Mihalale after handing over a 1.275bn/- dummy cheque to the Treasury as dividend in Dar es Salaam over the weekend. Looking on are Permanent Secretary in the Ministry of Finance, Dr Servarcius Likwelile (second left) and (TIPER) Chairman of the Board of Directors Prof. Abdulkarim Mruma (second right). (Photo by Staff Photographer)

THE government has received 1.27bn/- in dividend from Tanzania Petroleum Reserves Limited (TIPER), after the company made 6.06bn/- net profit from its operations in the 2013 financial year.

Speaking shortly after receiving the cheque on behalf of the government at the Treasury office in Dodoma at the weekend, the Permanent Secretary to the Ministry of Finance, Dr Servarcius Likwelile said the money would partly help in financing budget deficit.

"This dividend from TIPER will help the Government to fill in gaps in the budget given the fact that we did reach our target in terms of revenue collection. We will channel this money to sectors which need it most. The distribution will be according to 2013/2014 budget allocations," he said.

He applauded TIPER management for the best performance which has made the company to continue making profit, create jobs and ensuring the country has enough oil reserves.

While handing over the cheque, the TIPER Managing Director, Mr Daniel Belair said the firm's contribution would go a long way in stimulating the country's socio-economic development.

"The year 2013 was the best ever experienced by TIPER in terms of financial performance with 8.8bn/- pre-tax profit and we paid 2.74bn/- tax.

"TIPER is committed to invest in ultra-modern storage facility that will ensure petroleum products are readily available for small and big users," Mr Beilar said.

He said TIPER has invested USD 10 million for increasing its current capacity of 141,000 cubic metres of fuel storage.

The Chairman to the Board of Directors of TIPER, Professor Abdulkarim Mruma, said the firm jointly owned by the government and Oryx Oil and Gas (OOG), each with a 50 per cent stake has been paying dividend to the government since 2009 following massive investment, of 8.3bn/- (USD 5.2 million) that has enabled the company to operate profitably.

"TIPER paid 1.3bn/- in 2009, 1bn/- in 2010, 2bn/- in 2011 and 2bn/- in 2012 respectively," he said.

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Source: AllAfrica

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