Oil, gas policy to give Tanzanians priority

Tanzanians will be given priority in procurement of goods and services in investments along oil and gas resources, to ensure optimum national participation in the booming industry, a new national energy policy draft shows.

According to the draft policy the objective is to increase national participation so as to maximise benefits from oil and gas value-chain.

Tanzania has become one of the world’s most soughtafter oil and gas regions with a string of vast discoveries that have attracted major global oil and gas companies.

The country is estimated to have over 50 trillion cubic feet (tcf) of gas, which is projected to rise four-fold over the next five years, putting it on par with some Middle East producers.

Under the new policy, the government will ensure Tanzanians participate strategically in the oil and gas value chain.

The government will also ensure capacity building and skills development for Tanzanians in the oil and gas industry and ensure implementation of Corporate Social Responsibility (CSR) initiatives have significant impacts to prioritised needs of local communities.

The draft policy stipulates that local content and national participation in the oil and gas value chain include investment in operation, provision of goods and services, capacity building, local engagement, skills development, local authorities awareness and investors’ CSRs.

According to the policy, the government will give priority to domestic use of the natural gas resources over exports.

The objective is to enhance reliability of supply and utilization of oil and gas products for domestic market which is buoyed by growing demand for energy supplies to feed the rapid expanding economy.

Under it the government will ensure development of a competitive domestic market for oil and gas products and ensure security of supply to meet domestic demand.

British company BG Group, together with partners Exxon Mobil, Statoil and Ophir Energy, plans to build a two-train LNG export terminal, expected to start operating in the early 2020s. A final investment decision is set for 2016 at the earliest.
Source: Daily News, reported from Dar es Salaam, Tanzania
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