The stand alone policy is expected to be independent of the natural gas policy guiding the sector and will give consideration to Tanzanian independent operators in the awarding of oil blocks, oil field licences and how operators can work with existing giant multinational companies in the oil and gas industry.
Government's move comes as speculators are aggressively interested in the oil and gas industry and to encourage entrepreneurs to participate in the petroleum industry so that petrodollars trickle down.
"Government has hired an international firm to advise on how this stand alone natural gas local content policy can work," said Acting Assistant Commissioner for gas at the Ministry of Energy and Minerals, Mr Mwaro Shoo.
Mr Mwaro said local content and capacity building is added value brought to the sector through natural gas activities in the form of employment and training of local workforce and investments in local supplies. He said local content can be achieved through capacity building.
The local content policy framework stipulates that, all regulatory authorities, operators, contractors and other entities involved in any project, operations or transaction involving the oil and gas industry should consider local content as an important element in their project development.
He said it is important to start developing the industrial base of the country if its local content policy for the oil sector should succeed.
Once Tanzania enacts the local content policy, he said it would outline local content requirements which the oil and gas industry will have to meet for each category. A local content policy and/or local content Act will serve as a guideline to the oil and gas industry.