6 August 2017

Tanzania Ready to Take Up Pipeline Contracts

Following the inauguration of the Hoima-Tanga pipeline project on August 5, an umbrella body of oil and gas service providers in Tanzania is mobilising its members to take advantage of the opportunities that will come with the $3 billion project.

The Association of Tanzania Oil and Gas Service providers (Atogs) has called a meeting of stakeholders on September 11 and 12 in Dar es Salaam to strategise and communicate the required standards for various services related to the projects so that Tanzanians get a fair share of the multibillion dollar deal.

Atogs vice chairman Abdulsamad Abdulrahim said that under the local content provisions in the Petroleum Act 2015, Tanzanians have an advantage in acquiring local contracts subject to capacity.

Atogs will provide training, links to finance and standards requirements so that they can acquire contracts in construction, engineering services, procurement of materials, logistics insurance, security services, catering an emergency services.

Pipeline

The 1,145 km pipeline will be built by Total at a cost of $3.5 billion. Eight per cent of it will be in Tanzania, passing through Kigoma, Geita, Shinyanga, Tabora, Singida, Dodoma, Manyara and Tanga regions.

"We have communicated to Total that we have the requirements for standards, which we will communicate to our members and give them any assistance they need," Mr Abdulrahim said.

It is estimated that the project will produce about 10,000 direct employees, and about 30,000 indirect ones.

Director of National Economic Empowerment Council Edwin Chrisant told reporters that the government is prepared to make sure that no Tanzania firm fails to get a job for lack of capital or technical capacity because there is a tailor-made empowerment programme for them.

He said there are over 18 financial facilities that a ready to lend to local firms in case of financial shortfalls.

Tanzania

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