Local firm ink 1bn/- deal as local content gains pace

Sauli Giliard

TANZANIA’S local content policy has started paying dividends to Tanzanians as a local firm signed over 1bn/- deal to...

inspect and clean natural gas pipeline at Mnazi Bay field wells in Mtwara.

The companies namely Maurel and Prom Exploration Production Tanzania Ltd and Tanzania’s Solutions Tag Consulting Company signed the agreement in Dar es Salaam, yesterday in the presence of Petroleum Upstream Regulatory Authority (PURA).

According to Maurel and Prom General Manager Nicolas Engel, the contract involves intelligent pigging of 800-metre pipeline which connects MB1 field well to the processing area located at Mnazi Bay.

The local company will also be required to service a 27km pipeline which links   M&P natural gas processing plant to the latter’s storage site in Mtwara town.

“This event signifies the milestone that has been attained so far in empowerment of Tanzanians to take part in oil and gas businesses.

“Previously, these expertise tasks were being implemented by foreign companies,” Engel said.

He said before implementation of the project, it will take three to four months of mobilisation of resources and thereafter only some weeks will be used to inspect and clean the infrastructure.

After signing the deal, the Solutions Tag Executive Director Peter Kichogo said oil and gas industry needs high level of expertise hence his company to be considered for the deal indicates that Tanzanians are now trustable in the sector.

On his part, PURA’s Head of Local Content and Stakeholder Engagement Unit (LCSEU) Mr Charles Nyangi said the PURA’s efforts to ensure locals are benefiting from the lucrative sector have started bearing fruits.

“Pura, being the regulator, is witnessing the signing of the contract between the two companies. Our main business is to ensure local Tanzanian firms and locals are given first priority in the execution of upstream projects, said Mr Nyangi.

According to the Local Content Policy of 2015, licence holders, contractors and sub- contractors should give preference to goods which are produced or so available in Tanzania and seek services from Tanzanian companies or citizens.