Monday, November 4, 2013

BG group: Gas reserve is a potential commodity for Tanzania economy

TANZANIA is said to have a greater opportunity of transforming its national economy and have better life for her citizens than any other East African countries if it would make proper use of the recently discovered natural gas reserve, a high ranking official of the gas exploration company in the country has said. The President and Asset General Manager of the BG East Africa region, Derek Hudson made the remark in Dar es Salaam on Wednesday last week when addressing journalists during a five hour seminar which his company had organized for them. The aim of the seminar was to keep journalists knowledgeable enough on various aspects as related with the management of oil and gas exploration activities currently taking place in the country. The seminar also highlighted some steps which are needed on the part of technical knowhow basing on appraisal, development and production of the natural gas, challenges and how to overcome them. The seminar was conducted by a corporate lecturer and a geological expert specializing on oil and gas exploration activities from a UK based Robert Gordon University Dr. Antony Wyatt. In his speech, Hudson noted that Tanzania has a better chance of increasing its economy in future through gas industry due to the availability of the market for the products in the country.  He said that his company which has been licensed to do gas exploration activities since 2010 is willing to build business with the government in conjunction with the public in an attempt to help the country's economic growth.  Hudson underscored that the current investment his company was making will be able to produce oil and gas between 2021 and 2022, stressing that BG East Africa will focus much on training and offering scholarships to Tanzanians that will aim at equipping them with the relevant expertise in the oil and gas sector. “It is not a secret that we have enjoyed significant success in our exploration activities off the Tanzanian coast despite of several hurdles such as the water depths which are full of numerous hills”, he said adding that, their business plans are progressing and that are hopeful for a long and fruitful presence in Tanzania.

The President and Asset General Manager of the BG East Africa region, Derek Hudson

He said the cost of developing a gas industry in Tanzania is going to be more expensive despite of plenty of resources available which can help transform the national economy.  Hudson, a native of Trinidad and Tobago in Caribbean Island with 1.5 million populations compared his country and Tanzania and noted that, energy industry could build the economy of the two developing nations. He said his country for a long time moved to a middle income status on the back of its hydrocarbon resources with the last decade being very dependent on an expansive gas industry which includes Liquefied Natural Gas (LNG) exports. He said exports of LNG in his country has transformed extensively all sorts of the social lives to their people, and for Tanzania, however, he has urged the government to do it according to the laid down national policies. He further noted that, BG’s ongoing exploration activities is committed to the development of local capacity and its desire to move forward with the LNG project development in Tanzania BG Group recently made its sixth consecutive natural gas discovery off-shore Tanzania with the Papa-1 well, extending an already remarkable run of exploration success in one of the world’s fast emerging oil and gas provinces. Following this discovery gross recoverable resources now stand close to 10 trillion cubic feet. BG Group became one of the first companies to enter Tanzania in 2010 and it acquired interests in off-shore exploration acreage covering more than 25 000 square kilometers. So far, BG East Africa has spent around US$40 million on vocational training of Tanzanians in Lindi and Mtwara equipping them with skills which will later make them have access to jobs in the gas and oil sectors.  While the debate continues over how much gas should be sold to foreign investors and what safeguards should be put in place to ensure development of the country's own gas and electricity sector, the government is finalizing its natural gas policy, TPDC’s Principal Petroleum Geologist Sebastian Shana said in an exclusive interview that, TPDC is building local capacity to audit oil companies to ensure the government gets its fair share of revenues after these companies have recovered their investment costs. He said when asked to clarify how far they are sure of the expenses incurred out of the exploration activities which ironically would be refunded to investors when gas production starts

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