My research is driven by the statistical fact that resource conflicts contribute to 80 percent of the civil wars in the world, and they are mostly predominant in Africa. The term resource curse has been developed to explain the misfortune of resource exploitation, which is a common plight in Africa. Petroleum exploitation is on the high side in resulting into wars, therefore, my research intends to propose a legal mechanism for mitigating conflicts related to petroleum extraction. The study presupposes that, as opposed to political and economic scholarly work, there has been no sufficient legal intervention in trying to mitigate resource conflicts. The research intends to show the importance of human rights promotion in the petroleum legal framework and policies towards establishing a conflict avoiding framework. The study chooses, in particular, the compensation for expropriated lands for the purpose of petroleum activities, which it argues should be compensated equitably and fairly as states the Tanzanian Constitution. It, therefore, examines the extent to which the statutory laws upholds equity in compensation.