Tanzania tasked to use its growing oil and gas industry in creating jobs

DODOMA: TANZANIA has been urged to strengthen local participation in the oil and gas sector by equipping young people with technical skills and expanding opportunities for locally owned companies to benefit from exploration and development projects.

The Vice-President of the United Republic of Tanzania, Deogratius Ndejembi said the government must ensure that the country’s growing oil and gas industry creates meaningful employment, transfers technology and builds the capacity of Tanzanian professionals and businesses.

Speaking at a ceremony to sign petroleum exploration licences for four blocks Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara he directed the Ministry of Energy to develop a strategic plan to empower young Tanzanians to participate in the sector.

He cited the example of Tanzanian oil and gas professional Lusiba Majira, urging the ministry to promote knowledge-sharing so that more young people can acquire the expertise needed to work in the industry.

Mr Ndejembi stressed that establishing legal frameworks, fair competition systems and centres of excellence would have limited impact unless Tanzanians were adequately prepared to participate in the sector.

He also called for stronger implementation of local content requirements to ensure that domestic companies secure opportunities in the oil and gas value chain.

The Vice-President cautioned against foreign companies registering locally and presenting themselves as Tanzanian businesses to benefit from local content opportunities, stressing the importance of ensuring that such opportunities reach genuinely Tanzanian-owned enterprises.

He urged the energy sector to learn from the mining industry’s experience in implementing local content measures and adopt effective practices to increase domestic participation.

Mr Ndejembi further directed the Ministry of Energy to strengthen monitoring and evaluation of licensed projects to ensure that agreed commitments are implemented on time and in accordance with contractual obligations.

He said inadequate follow-up after the issuance of licences could undermine project implementation, accountability and the expected contribution of investments to the national economy.

The government expects expanded oil and gas exploration to generate additional public revenue through royalties, taxes and profit-sharing arrangements, while creating employment and supporting electricity generation and industrial development.

Mr Ndejembi said the initiatives should also increase opportunities for Tanzanian women and young people to access employment, training and technology, alongside greater participation by local companies in supplying goods and services.

He linked the development of the sector to Tanzania’s ambition of building a more inclusive and sustainable economy under the Tanzania Development Vision 2050, which sets out the country’s long-term development aspirations, including the ambition to reach a 1tri US dollar   economy.

The Vice-President also reiterated the importance of establishing a centre of excellence to develop the specialised skills required in the oil and natural gas industry.

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He called on institutions involved in the sector to uphold accountability, financial discipline and national interests to ensure that the country’s natural resources benefit Tanzanians.

Mr Ndejembi said the signing of the exploration licences should mark the beginning of a new phase in strengthening the Tanzania Petroleum Development Corporation (TPDC), including its capacity to lead exploration activities and collaborate with international partners.

He also expressed hope that preparations for the proposed liquefied natural gas (LNG) project in Lindi would progress towards the signing of the necessary agreements and the commencement of implementation, describing it as a major strategic investment for Tanzania.

The ceremony brought together government officials and stakeholders in the oil and gas industry as Tanzania continues efforts to expand exploration and strengthen domestic participation in the development of its petroleum resources.