Tanzania, Uganda oil dealers team up to venture into crude oil project

16Sep 2017
Crispin Gerald
The Guardian
Tanzania, Uganda oil dealers team up to venture into crude oil project

THE Association of Tanzania Oil and Gas Service Providers (ATOGS) has signed a memorandum of understanding (MoU) with their Ugandan counterparts to marshal financial resources, technology and skills to facilitate local companies to take effective part in crude oil projects.

ATOGS Vice-Chairman Abdulsamad Abdulrahim

Speaking to reporters after the signing ceremony, ATOGS Vice-Chairman Abdulsamad Abdulrahim said the agreement complemented the government vision of becoming a middle-income country by 2025.

“We have resolved to work together in line with President Magufuli’s statement that he wants to see oil and gas projects benefit Tanzanians,” he said.

“We assure the public that we are able technologically and financially to take effective part in the sector,” he added.

He said materials, including goods and services, will be obtained through joint venture with a local company that will own at least 25 per cent interest in such joint ventures.

He added that the agreement, among other things, will provide a platform for sharing information, opportunities, know how, as well as transfer of technology.

The chairman said currently the most readily captured opportunities for Tanzanian suppliers were in the construction, engineering, procurement of materials, logistics and indirect services, hence ATOGS proposed a collaborative platform to enhance access to strategic international partnerships.

For his part, CEO  of the Uganda Association of Oil and Gas Service Providers Emmanuel Mugarura said local companies were eager to marshal capital to ensure they secured available opportunities in oil and gas projects.

“The agreement will provide room for members of the associations to receive training, to undergo certification and to jointly bid for projects,” he said.

According to him, local companies had so far acquired vast experience from international companies that work across the region and that this was the time for them to showcase their ability in giant projects in the East Africa region.

“The citizens should understand that the local companies are capable in terms of technology and capital and they look forward to competing with foreigners like China and others,” he said.

He said he was optimistic that the joint venture will not only benefit the societies but will also strengthen the capacity of local companies to be competitive in the international oil and gas market and get access to international tenders in the sector.

Top Stories