Government urged to give priority to locals in gas production

The Parliamentary standing committee on Energy and Minerals last week threw a challenge to the government requesting the involvement of the local companies in the production of the discovered gas which currently is under exploration in southern region of the country. The committee’s chairman Victor Mwambalaswa said on Thursday evening when summing up the committee’s report which was discussed by lawmakers for two days before its approval. He said the government should be more transparent to ensure that its gas production is more transparent to Tanzanians and that, the first priority should be given to local companies. He said prudence is important in order to ensure that, locals are favored in gas business in the country. Elaborating, Mwambalaswa said such mistakes were committed in the recent past in the mining sector and it would be shameful to repeat again in the oil and gas sectors. He said that, Tanzanians have not yet given opportunities to enjoy their underground wealth as the higher authorities do enter the contracts with the foreign companies and disintegrate the local companies to trade. He gave an example in mining sector whereby during the allocation, he said foreigners were more favored and made to acquire larger squire kilometers of the mining land causing a public outcry and the government does not take any action to review their contracts. However, he has appreciated the current system under the Tanzania Petroleum Development Corporation (TPDC) which locals could get oil and gas exploration blocks, was open to everybody sand no one is hindered for applying. “But we should also know that oil and gas drilling investment process is very expensive and needs a lot of money, and in view of this, the committee is asking Tanzanians who are able to come forward to compete in tendering and should not complain” he said Mwambalaswa made the remark after noting that in recent days, there has been complaints that, the local were denied involvement due to the fact that, were poor and unable to afford such huge expenses incurred for exploration. Other suggestions which he presented to the government are mere advices which his committee wanted it implanted in relation to various developments for energy and minerals sector. When summing up the report, Mwambalaswa noted that, the government should snatch away the mining sites which it originally gave to the foreigners who seemed to have failed to develop them, and instead give to the locals. The committee also has advised the government to quickly sponsor its citizens for higher studies in China so that they could get enough education as related with the knowledge of oil and gas exploration activities as well as their production for the future nation. Another thing is that, the committee has tasked the government to continue enlightening the people of Mtwara and Lindi regions on how they could benefit from this natural resource in a bid to minimize and clear their worries.  The committee has also given an advice to the TPDC to work in collaboration with the national Insurance companies to prepare the insurance covers to the locals who would directly involve in the exploration and production of gas. On oil sub sector, Mwambalaswa said the government should advise the Energy and Water Utility Regulatory Authority (EWURA) to designate special fuel dispensing stations which could be distributed in rural areas. Mwambalaswa made the remark after noting that in recent days there has been ensure that, on the proliferation of substandard fuel dispensing units which endangers the quality.