Petroleum Africa
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Wednesday, January 15, 2014
Tanzania has turned to Algeria for help with its burgeoning oil and gas industry. The government of the East African nation has asked Algeria to offer expertise in oil and gas exploration while also providing on-the-job training for Tanzanians. In December the two countries signed a MoU that will aid in the two forming a long-term partnership in the industry.
Minister of Energy and Minerals for Tanzania Professor Sospeter Muhongo said shortly after signing the MoU that the country would invite Algeria to participate in exploration blocks such as the Songo Songo-West and onshore blocks that the government owned through state-run TPDC without going through the tendering process.
“We will not go into tendering processes as far as working with [the] Algerian government is concerned because that will be time wastage,” Muhongo said. The minister added “as [a] nation we need to be strategic and not be forced to undergo tendering processes as these are our natural resources.”
As Tanzania moves toward the monetization of the natural gas reserves discovered by the partnerships of BG/Ophir and Statoil/ExxonMobil it is keen to learn all it can from one of Africa’s largest natural gas exporters. The government is also interested in increasing its competence in LPG as well as pipeline fittings in transporting oil and gas from exploration areas to consumers from Algeria.
The country is determined to make sure that all the mining companies are supplied with energy derived from oil and gas. Muhongo said Tanzania would like to emulate Algeria’s model 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. According to Muhongo, TPDC will need to speed up these discussions with Algeria so that the country can benefit from the partnership and speed up electricity connectivity which currently stands at 30%.
Algeria’s Minister of Energy and Mines, Youcef Yousfi, said that the MoU between the two countries would allow them to use their natural resources for economic development. “Tanzania has developed mineral resources but the engine of development lies in the development of oil and gas sector, 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 also noted that Algeria could impart its expertise in the construction of cement and fertilizer plants which would also aid in job creation for Tanzania.
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