PURA promotes local participation in oil and gas projects

DODOMA: The Petroleum Upstream Regulatory Authority (PURA) has become a model in promoting local participation in oil and gas projects being implemented in the country in accordance with national policies and regulations.

Director General of PURA, Eng Charles Sangweni, said this during the climax of the Public Service Week Exhibition held at Chinangali Park in Dodoma on Tuesday, adding that the regulator has been working to ensure that contracts for services and goods are awarded to Tanzanians, provided they have the required qualifications to offer such services and supply the products.

He added that PURA ensures Tanzanians are given opportunities for professional jobs that can be performed locally, as long as they meet the required standards for implementing specific projects.

Eng Sangweni said the authority also ensures that foreign investors involve Tanzanians in their investments, adding that since 2016 the government has been preparing engineering professionals through local universities, including the University of Dodoma (UDOM), Dar es Salaam Institute of Technology (DIT) and the University of Dar es Salaam (UDSM).

The institutions have also been encouraged to introduce oil and gas training programmes and specialised courses to equip more Tanzanians who will eventually take over positions when foreign investors leave.

PURA has also established a website that connects Tanzanians with foreign investors to enable them to engage and collaborate on investment opportunities.

Eng Sangweni said the authority restricts unnecessary importation of goods and services to ensure investors utilise locally available products.

He noted that investors operating in Tanzania are required to provide services to the country and its citizens with transparency, fairness and accountability.

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The PURA Director General said the authority has made significant progress in regulating and overseeing oil and natural gas exploration, development and production activities in the country.

“PURA has achieved major milestones in supervising and regulating oil and natural gas exploration, development and production projects being implemented in the country,” he said.

He added that the authority oversees research, production and development of related projects, as well as managing petroleum and natural gas exploration agreements in the country.

He said due to PURA’s effective supervision, the government has been able to collect royalties and taxes generated from these projects.

Eng Sangweni added that PURA continues to support oil exploration efforts in line with global trends, technological advancements and environmental protection measures to prevent pollution.

PURA continues to oversee institutions and companies involved in oil exploration with the aim of discovering commercially viable resources, noting that there is a reliable market for oil in Tanzania.

Currently, exploration activities are being conducted in the Eyasi-Wembere block with the aim of discovering underground oil reserves.

Oil exploration in Tanzania began in 1952, with 97 wells drilled so far, although commercial oil discoveries have not yet been made. However, efforts continue.

He explained that during oil extraction, crude oil is obtained as a heavy mixture containing various components, including impurities, unwanted gases and water.

He said extraction activities may result in the discovery of oil, gas, water or no resources at all. When oil is discovered, processing is carried out at specialised plants where crude oil is heated and refined to produce heavy oil, industrial oils, diesel, kerosene, jet fuel, petrol and other petroleum products.