Experts call for stabilisation in oil and gas contracts

14Sep 2017
Crispin Gerald
The Guardian
Experts call for stabilisation in oil and gas contracts

EXPERTS in oil and gas sector have insisted on the need for adjustments in the oil and gas contracts/negotiations to enhance fairness where one part in the agreement realises that they had been cheated.

Permanent secretary in the Ministry of Works, Transport and Communications, Dr Leonard Chamuriho.

Permanent secretary in the Ministry of Works, Transport and Communications, Dr Leonard Chamuriho made the comments yesterday in Dar es Salaam at the just ended Tanzania oil and gas congress that took place for two days.

The congress was organised by the CWC group and supported by the Ministry of Energy and Minerals and TPDC.

He said that the oil and gas contracts should not be static but allow for adjustment on the ground that one part in the negotiations doesn't have the vast experience in the sector than the other part.

"We Tanzania's, despite the fact that we own the lucrative resources which are gas and oil, our experience in the sector is incomparable to foreign companies that we negotiate with who had vast experiences in explorations and extractions of oil and gas equipped with techniques able to swim in the sector," he said.

"So if there will be no room for adjustments in the negotiations, we can be the victims in the sector instead of benefiting when we will come to identify that we have been cheated," he insisted.

Themed; Promoting government and industry collaboration in Tanzania's oil and gas industry' the congress provided a platform for government and private sector representatives to convene and discuss the challenges being faced in the industry and explore how the sector can be developed through further collaboration.

He said that, the oil and gas industry in Tanzania is still new to the extent that it had recently become the most debatable sector in the country concerning the readiness of the government in terms of the expertise and capital, but also the capacity of local companies which are able to dwell effectively in the sector.

He further emphasised on the need for the government to broaden the scope for training of people in the sector mainly to have lot of experts to take part in the sector.

For his part, country chairman for Pan African Energy Tanzania Limited Patrick Rutabanzibwa said the concept of local content should be strengthened to enhance obtained skilled people to work in the sector.

"Despite the fact that the sector is still new, if training of people will be prioritised effectively the government will be comfortable in all areas in the sector," he said.

"The government should also enhance incentives to experts to enhance accountability and transparency in the sector as a means to avoid corruption and others related issues," he emphasised.

He added that the capacity for service providers in terms of financial and technical abilities should be strengthened to enhance competition.

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