(Xinhua)
Updated: 2007-11-23 16:14

DAR ES SALAAM -- Tanzania's petroleum firm has warned that an oil crisis is looming due to the country's lack of strategic oil reserves.

The Tanzania Petroleum Development Corporation (TPDC) said that any man-made or natural disaster would trigger the crisis in the production sector and the entire economy as well.

Tanzania does not have its petroleum resources and depends wholly on imports of petroleum products.

The Guardian newspaper on Friday quoted the corporation's board chairman, Robert Mboma, as saying that at least half of the country 's imported oil needs should have been reserved for use during hard times.

Tanzania's parliamentary committee on investment and trade has pointed out that there was indeed the need for the government to financially support the TPDC to set up the national petroleum reserves.

A motion was tabled at the parliamentary session in June last year to urge for the establishment of the country's petroleum strategic reserves.

The TPDC is still the country's sole importer of petroleum products and before the 1999 liberalization of oil imports, the corporation used to keep some petroleum imports for emergency uses.

Oil exploration started in Tanzania in the 1960's but the exploration has so far led to the production of natural gas from three coastline places.