News
Monday, January 13, 2014
EAST AFRICAN BUSINESS WEEK, KAMPALA, UGANDA
(Dar want to tap Algerian expertise in oil and gas, web photo)
DAR ES SALAAM, Tanzania - The Tanzanian government has asked the Algeria to offer expertise in oil and gas exploration while also providing on-the-job training for Tanzanians.
Algeria’s 50 years experience in the oil and gas exploration and production including their achievements that has so far been realized, has been a great concern for the government of Tanzania to ask for the partnership in order to tap both the expertise and technology in the business.
Speaking in Dar es salaam last week, the Minister of Energy and Minerals Prof Sospeter Muhongo said after signing an MoU with the government of Algeria in December last year, the country will have to invite Algeria in the exploration of the oil and gas blocks in Songosongo-West and on-shore that the government owns through Tanzania Petroleum Development Agency (TPDC) without going through the tendering process.
Prof Muhongo said three areas of interests have been signed between the two countries where Tanzania is intended to work with Nigeria in oil and gas sector, electricity and minerals explorations.
“We will not go into tendering processes as far as working with Algerian government is concerned because that will be time wastage, Prof Muhongo said adding that as a nation we need to be strategic and not be forced to undergo tendering processes as these are our natural resources.”
Tanzania is determined to learn from Algeria on the Liquefied Natural Gas (LPG) competence as well as the field of pipeline fittings in transporting oil and gas from the exploration areas to consumers.
He said that Tanzania is determined to make sure that all the mining companies are supplied with energy derived from oil and gas including the neighboring countries of Congo and Burundi that lies within the extraction areas.
Prof Muhongo said Tanzania would like to emulate the Algerian model of oil and gas use where 97% of its electricity is generated from oil and gas and has allowed it to connect 98% of its 38 million populations to electricity that has led to the reduction of poverty in their country.
He said that Tanzania’s TPDC need to speed up these discussions so that the country can benefit from the partnership with Algeria and speed up electricity connectivity which currently stands at 30% out of the country’s 45 million population.
On his part, Algerian Minister of Energy and Mines Mr. Youcef Yousfi said that the MoU that was signed between the two countries would allow them to use their natural resources for economic development.
Yousfi said Tanzania has a lot of natural resources that needed to be developed for the benefit of the nation.
“Tanzania has developed mineral resources but the engine of development lies in the development of oil and gas sector” Mr. Yousfi said adding that the long term partnership that is to be developed between the two countries in exploration, production distribution and extraction of oil and gas would lead to Tanzania’s economic growth.
He said that their country’s 50 years experience in oil and gas sector has allowed it to build two pipelines that exports oil and gas to France and Spain.
He also noted that Algeria has been able to construct cement and fertilizer plants oil and gas raw materials that has enabled in job creation and allowing Algerians to impart their expertise to Tanzanians.
He insisted for the need of the government to have a hand in oil and gas sector that would allow more Tanzanians to be represented and benefit from their oil and gas natural resources.
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