Tanzania: Local Content Scales Up in Oil, Gas Sector

Participation of locals in the oil and gas projects has now increased to 92%from 50% in 2015, it has been revealed.

The Acting Director General of Petroleum Upstream Regulatory Authority (PURA) Engineer Charles Sangweni, revealed this on 1st March, saying the government would continue taking all the efforts to promote local content in the extractive projects.

He was speaking during a capacity building workshop organised by the ARA Petroleum LCC from Oman that is undertaking a project of drilling the Chikumbi-1 well in Mtwara Region.

According to Mr Sangweni, most Tanzanians who are taking part in the projects are graduates, fresh from studies and that their participation enables the country to have a sufficient number of experts who will be able to undertake the same projects in the future.

Mr Sangweni statement was supported by the Director General of the Tanzania Petroleum Development Corporation (TPDC) Dr James Mataragio, who said the exploration exercises aimed at ensuring sufficient availability and supply of oil and gas in the country.

“We need to have a good supply of oil and gas in the country, TPDC continues putting in place strategies to meet the entire target,” he explained.

He said the corporation is also undertaking oil exploration in different parts of the country as part of efforts to utilise opportunities available in the energy sector.

Speaking of the petroleum sector, Dr Mataragio said TPDC has won a tender of importing 100,007 tonnes of petroleum products in a bid to ensure price stability and product availability.

“The aim is to lower the price of petroleum products to the final consumer. TPDC will continue participating in all tenders for supplying the products in the country, as it was announced last year,” he explained.

Earlier, the General Manager of ARA Petroleum, Mr Erhan Saygi said so far, they have created employment opportunities for 200 Tanzanians, who are taking part in the execution of the project.

“We are also employing local companies to perform the work of drilling,” he noted, adding that the project will be accomplished in 2023, whereas the gas will be used for the next 25 years.

Earlier this year, TPDC signed an advisory service agreement with a British firm-Baker Botts (UK) LLP seeking expert opinion over the ongoing negotiations with oil marketing companies to build a Liquefied Natural Gas plant (LNG).

Tanzania has an estimate of 57 trillion cubic feet of natural gas reserves. Unsettled disagreements, however, with oil corporations had slowed the country’s plan to advance into investing in a liquefied natural gas plant.

Speaking shortly after witnessing the signing of the service agreement, Energy Minister January Makamba said such co-operations are normal in international negotiation of major projects such as the LNG.

“Tanzania discovered large quantities of natural gas offshore in block 1, 2, and 4 and since Nov. 8, 2021 there have been discussions between the government and the oil companies,” he said.

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