Saturday, November 2, 2013

Expert shows how Dar can benefit from natural gas



Tanzania has great opportunity to transform its economy and improve people’s lives if it makes proper use of recently discovered natural gas reserves, an official of a
gas exploration company said.
Derek Hudson, the President and Asset General Manager of the BG East Africa region, made the comment when addressing during a one-day journalists’ seminar organised by his company.
He said Tanzania’s opportunity is due the availability of the market for the products in the country.
BG’s ongoing exploration activities were committed to the development of local capacity and its desire to move forward with the Liquefied Natural Gas (LNG) project development in Tanzania, Hudson said.
UK-based Robert Gordon University Dr Antony Wyatt, a corporate lecturer and a geological expert, specializing on oil and gas exploration activities, conducted the seminar.
The seminar aimed at keeping journalists aware of various aspects related to the management of oil and gas exploration activities in the country.
It highlighted steps needed on technical knowhow based on appraisal, development and production of the natural gas as well as challenges and how to overcome them.
He said his company, licensed to do gas exploration activities since 2010, was willing to build business with the government to help the country's economic growth.
According to him his company would start producing oil and gas between 2021 and 2022, stressing that BG East Africa would focus much on training and offering scholarships to equip Tanzanians with oil and gas sector expertise.
We’ve enjoyed significant success in exploration activities off the Tanzanian coast despite several hurdles such as water depths full of numerous hills.”
He said the cost of developing gas industry in Tanzania is expensive although there are plenty of resources that can help transform the national economy.
Hudson, a native of Trinidad and Tobago in Caribbean Island with 1.5 million population noted that energy industry could build the economy of the two nations.
He said his country moved to middle income nation status on the back of its hydrocarbon resources with the last decade being very dependent on an expansive gas industry which includes Liquefied Natural Gas (LNG) exports.
He said exports of LNG have transformed extensively all sorts of the social lives to their people. As for Tanzania, he said the government should work on laid down national policies.
BG Group recently made its sixth consecutive natural gas discovery off-shore Tanzania with the Papa-1 well, extending an already remarkable run of exploration success in one of the world’s fast emerging oil and gas provinces.
Following this discovery gross recoverable resources now stand close at 10 trillion cubic feet. BG Group became one of the first companies to enter Tanzania in 2010 and it acquired interests in off-shore exploration acreage covering more than 25 000 square kilometers.
So far, BG East Africa has spent around $40 million on vocational training of Tanzanians in Lindi and Mtwara, equipping them with skills that would later make them have access to jobs in the gas and oil sectors.
While the debate continues over how much gas should be sold to foreign investors and what safeguards should be put in place to ensure development of the country's own gas and electricity sector, the government is finalizing its natural gas policy,
TPDC’s Principal Petroleum Geologist Sebastian Shana said in an exclusive interview with The Guardian that, TPDC is building local capacity to audit oil companies for government to get fair share of revenues after the companies have recovered their investment costs.
Ends/Edited/JQ


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