Oil and gas local content to be out by November 2017

It is almost a decade now as Tanzanians have been waiting with much enthusiasm to see that Oil and Gas local content regulations is issued to the general public, but it is amazing to see that nothing comes out. At last the long awaited document will come into effect in November this year, the government has reliably said. The National Economic Empowerment Council (NEEC) acting Director of Local Content Esther Mmbaga said in Dar es Salaam on Monday this week that both the policy and law are in place and the government is only finalising the regulations. Speaking to the ‘Daily News’ on the sidelines of the first oil and gas annual congress, Ms Mmbaga said a lot of work will be needed to build local capacity skills for effective participation in the new oil and gas sector. The government will work closely with investors to ensure successful implementation of local content in the country,” she said. Ms Mmbaga explained that investors will need to provide information on what they need in terms of skills, products and services and, NEEC in collaboration with training institutions, will provide Tanzanians with the required training to attain the needed international standards. Currently, the government is conducting a baseline study to identify the competence of Tanzanians to participate to the oil and gas sector before coming up with short and long-term plans to bridge the gap of capacity and skills.


The on-going exploration in Tanzania Indian Ocean sea

“The law requires that Tanzanians be given priority in employment opportunities in the sector, in terms of providing services and direct jobs. But, this will only be achieved if we have skilled and capable Tanzanians,” she explained. The director noted that in case of skill deficiency in the country, the contracted foreign companies would be required to get into joint venture with Tanzanian companies, “the idea is to transfer technology and skills to local Tanzanians.” During discussions, the Country Chairman of Pan African Energy Tanzania Ltd, Mr Patrick Rutabanzibwa said the local content regulations are in the interest of Tanzania and investors, offering a viable way to maximize profits from the industry. “Consultation with all stakeholders on the issue of local content is key to successful implementation and maximizing profit,” he explained.  Ponticelli Group Business Development Director Vicent Ladougne said local content is beneficial for both the country and investors in terms of increasing local employment and maximizing profits. Mr Ladougne whose group is in construction across Africa said employment of citizens from the countries in which construction works are executed is inevitable. “The local content has always been our priority in all the countries we work in. Our aim is to minimise costs of bringing in experts, we maximise local employees through training,” he explained. He added: “Our biggest achievement is training thousands of locals in areas that we need, this way we cut down on costs of bringing in foreign experts.” Energy and Water Utilities Regulatory Authority (EWURA) Gas distribution manager, Mr Thobias Rwelamila assured investors that whatever is done, the government will collaborate with all stakeholders.