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Theophilus Kwesi Agyei Annim
Executive Producer
No-Gimmick Infotainment
P.O. Box MC 3478, Takoradi
Tel: +233-24-4067043/ +233-23-3067043
Whatsapp: +233-24-4067043
Skype: theophilus.kwesi.agyei.annim
Youtube channel: Kwesi Agyei Annim
Wednesday, October 26, 2016
Call for parallel growth for Tanzania's gas, agric sector
Tanzania’s major gas production plant employs significant proportion of local workforce
By Dennis Peprah, Mtwara
Though Tanzania is yet to pass her local content law, the major natural gas production plant in the Eastern African country engages appreciable number of local employees.
In-fact the oil and gas sector is a new area the country is exploring, but local employees constitute significant proportion in the sector's labour front.
Civil Society Organisations and other key players in the industry say specific clauses in the Tanzania's Natural Gas Act 2015, and Natural Gas Policy 2013 give priority to local content requirements.
Mr Raphael Mbena, the Country Office Manager of the Maurel and Prom Exploration and Production Limited, a gas processing facility located at Mtwara in the North-Western part of Tanzania said 98 percent of the company's workforce is local employees.
He told reporters on a field visit to the plant site at Msimbate on Tuesday that the gas recovery facility employed 78 people with only two expatriate workers.
The 24 journalists, eight each from Tanzania, Uganda and Ghana are attending a 14-day regional course on oil, gas and mining to enable them to better understand and tell the true story in the extractive sector in their respective countries.
It is being organized by the Journalists for Environmental Association of Tanzania in collaboration with Penplusbytes, an international ICT Journalism in Ghana and the African Media of Excellence in Uganda, with support from the Natural Resource Governance Institute (NRGI), an NGO.
Mr Mbena explained that though the oil and gas sector is a new area, the Tanzanian government had learnt lessons from other countries and to make sure that citizens get desirable benefits from the gas sector.
He said local communities around the project's catchment area who were directly or indirectly affected by the natural gas production had been duly compensated.
Compensations were mainly paid on crop and property rates.
Mr Mbena said communities have also benefited immensely especially in the area of health and education adding classroom blocks, clinics, maternity blocs and other infrastructure projects had been constructed in local communities.
He said good relationship between the company and the local people is required to ensure maximum output and protection of the national asset.
Mr David Chajdronnier, the field engineer said the facility started production in 2006, adding with five wells (one offshore), it is able to more than 35 million cubic feet daily.
The situation was however different at gas processing and distribution plant at Madimba and Somanga fungu power plants as the local employee workforce were significantly low.
According to Dr Emma Msaky, a Geologist and Technical Advisor at office of the President of Tanzania, oil and gas advisory Bureau, the new Petroleum (exploration and production) Act requires that exploration licenses expired nine years.
Initially, she explained the exploration license lasted for 11 years starting from initial three years.
Dr Msaky Tanzania government has opted for production sharing agreement, which according to her manageable and beneficial to the country now.
Friday, October 21, 2016
Is Local Content the Solution to Unemployment?
Ebenezer Agyekum-Boateng, TV3, Ghana
Dar es Salaam, October 21, 2016: "Even without oil, we are doing well...with oil as a shot in the arm, we're going to fly."
Upon discovery of oil and gas by some African countries, expectation for accelerated economic development and dealing with the unemployment challenges of these countries have heightened.
When Ghana discovered oil and gas in commercial quantities, Ghana's former president John Agyekum Kufuor stated the discovery of the country's first major oil deposit could turn the West African country into an "African tiger".
"Even without oil, we are doing so well... With oil as a shot in the arm, we're going to fly," he told the BBC in June 2007.
Nigeria makes an average of $50m a day from oil? But where has all the money gone. August 10, 2010 the then military head of state General Yakubu Gowon, said Nigeria's problem was not money but how to spend it.
This heightened expectation from the leaders trickle down to the citizens.
An expert in local content law, Neema Lugangira cautions that discovery of oil and gas does not automatically deal with the unemployment challenges.
"the unemployment situation can be dealt with by participation of local businesses in the extractives value chain," she said in Dar es Salaam, Tanzania.
Neema Lugangira, who initiated the Tanzania Local content law observed, opportunities for employment through participation.
"There are opportunities for local businesses through local content but there are no mechanism to make sure it is achievable" she said.
Procurement gives more money!
By Felix Mwakyembe
Local participation should focus on procurement rather than a singular focus on employment, an international local content expert stated in Dar es Salaam yesterday.
The expert, Ms. Neema Lugangira, revealed that procurement has a diversity of business opportunities compared to employment which provide limited space for human resources.
“Most organization and even the government spend between 60 to 70pc on procurement,” said the independent consultant Ms. Neema.
According to expert, during the negotiations, Tanzania influenced for onshore LNG to so that it increase local participation in gas industry.
Ms. Neema, a former Acting Director for Local Content in Investments, National Economic Empowerment Council, Prime Minister’s Office in Tanzania noted they rejected the floating LNG since it limits local participation.
In order for Ghana, Uganda and Tanzania people benefit from the resources, robust policy and strong legal framework is required to improve local participation in the extractive industry.
End
Civil societies up in arms over uranium mining in Tanzania
By BERNARD LUGONGO
Tanzanian government and civil societies group are still clinging to
their conflicting stances over uranium mining in the country.
The group has been protesting the mining of the uranium basing on the
environmental pollution, but the government has stuck to its gun—with
trial uranium projects are ongoing.
National Coordinator, Interfaith Standing Committee on Economic
Justice and Integrity of Creation, Ms Grace Masalakulangwa, said a
stand of the civil society organizations is that the uranium should
not be mined in the country.
"We civil societies protest this because there is no specific law yet
to address the issue of environment pollution that would be as result
of packing and transporting the uranium. But the government has
remained with its stand that it would go on to mine.
Executive Director of HAKIMADINI, an organization advocating for
rights of locals in mining areas, Mr Amani Mhinda, asked: "Do Tanzania
need uranium? Are we ready for uranium mining?"
The concern by the civil societies comes just a day after a new
development was reached at Mkuju River Uranium Project.
Urenium One Company on Wednesday this week announced that it has
completed the Mkuju River Uranium Project, thus putting the country in
a good position to become among the top five producers of uranium in
Africa.
The company's Chief Operation officer, Mr Andrey Shutov said in the
coming two years they will start mining activities, noting that the
project expected to boost the country's economy.
According to Mr Shotov, the project started seven years ago and that
it has reached to the implementation stage after various research
studies were conducted.
--
BERNARD LUGONGO,
SENIOR WRITER,
DAILY NEWS,
Tanzania Standard Newspapers Ltd,
MOB: +255 713 636856.
Tanzanian government and civil societies group are still clinging to
their conflicting stances over uranium mining in the country.
The group has been protesting the mining of the uranium basing on the
environmental pollution, but the government has stuck to its gun—with
trial uranium projects are ongoing.
National Coordinator, Interfaith Standing Committee on Economic
Justice and Integrity of Creation, Ms Grace Masalakulangwa, said a
stand of the civil society organizations is that the uranium should
not be mined in the country.
"We civil societies protest this because there is no specific law yet
to address the issue of environment pollution that would be as result
of packing and transporting the uranium. But the government has
remained with its stand that it would go on to mine.
Executive Director of HAKIMADINI, an organization advocating for
rights of locals in mining areas, Mr Amani Mhinda, asked: "Do Tanzania
need uranium? Are we ready for uranium mining?"
The concern by the civil societies comes just a day after a new
development was reached at Mkuju River Uranium Project.
Urenium One Company on Wednesday this week announced that it has
completed the Mkuju River Uranium Project, thus putting the country in
a good position to become among the top five producers of uranium in
Africa.
The company's Chief Operation officer, Mr Andrey Shutov said in the
coming two years they will start mining activities, noting that the
project expected to boost the country's economy.
According to Mr Shotov, the project started seven years ago and that
it has reached to the implementation stage after various research
studies were conducted.
--
BERNARD LUGONGO,
SENIOR WRITER,
DAILY NEWS,
Tanzania Standard Newspapers Ltd,
MOB: +255 713 636856.
CSOs, environmental conservationists in Tanzania say the country is not ready for uranium mine
By Dennis Peprah, GNA
Dar es Salaam (Tanzania), Oct 21, – Civil Society Organisations (CSOs), wildlife and environmental conservationists in Tanzania are strongly resisting attempts for uranium mine set to begin production of the radioactive material near the Eastern African country's Selous Game Reserve.
Although developers of the mine are saying the project has the potential to create more jobs and indirect cash inflows, major CSOs in the country said Tanzania is not ready for the project.
The Ghana News Agency (GNA) gathers that the Russian state-owned atomic agency (Rosatom) and Australian-based Mantra limited are jointly developing the project, which according to promoters create more than 1,600 direct jobs and indirect cash inflows of 640 million dollars in the country.
Mrs Grace Masalakulangwa, the National Coordinator, Interfaith Standing Committee on Economic Justice and Integrity of Creation in Tanzania told our correspondent that "Tanzania is not ready to mine uranium".
She told reporters on the sidelines of a 14 day regional training course on oil, gas and mining underway in Dar es Salaam the country had little knowledge on the sector and needed strong legal framework to get better negotiation deal.
The training course is being organized by the Journalists Environmental Association of Tazania, in collaboration with Penplusbytes, International ICT Journalism in Ghana and the Africa Media for Excellence in Uganda with funding from the Natural Resource Governance Institute (NRGI).
Twenty-four Journalists eight from Ghana, Uganda and Tanzania are attending the course.
Mrs Masalakulangwa observed that without robust national policy in the sector, the disadvantages of the mine would outweigh the benefits.
She pointed out that many companies in the extractive sector in the country had failed the people, with most of the failing to fulfill their promises and social responsibility programmes.
"If there is no legal framework to guide us in the negotiation table our country is going to lose a lot because uranium mine is a new area and this can lead to chaos", Mr Dennis Mwendwa the Chairperson of the Oil and Natural Gas Environmental Association (ONGEA) in Tanzania stated.
He said the interest of the people of Tanzania ought to be protected and the CSOs would leave no stone unturned to achieve that.
Journalists on lessons in Natural resource governance in Africa
Thursday, October 20, 2016
To extract or not to extract: Natural resources decision process comes with two tails
By Maxwell Suuk
Over the years, a number of developing countries have seen curses rather than blessings after discovering their resources. Nations went to war for natural resources possessions. These resource revenues is also blamed for the slow economic growth rates, inequality and poverty. A situation whereby revenues raises a country's exchange rate as well as make a country less competitive in the other sectors.
Oil-rich Angola is a classic example. It suffered similar fate for years. Between 2005 to 2010, an average of around 17 per cent annually was realized according to the global human development index where the country scored a mere 0.49 with its people still wallowing in abject poverty. This is where the Natural Resource Decision Chain comes in. To extract or not extract? Media Capacity Development Officer at the Natural Resource Governance Institute, George Lugalambi told selected journalists from three African countries, the decision chain is very relevant. George took the journalists in the first leg of two phased training course on oil, gas and mining in Tanzania that "the decision to extract is very critical after a country discovers its resource".
Ghana got less negotiation skills therefore only 25 per cent of its oil revenue goes to the national purse. Poverty is still visible in parts of the country.
But to decide on extraction according to George, borders on four thematic areas. Discovery and decision to extract, negotiating a good deal, managing revenues as well as investing for sustainable development. Platforms like The Extractive Industries Transparency Initiative works to improve revenue management in many resource-rich countries.
The absence of any of these dwindles the fortunes over its minerals.
The Open Government Partnership co-chaired by the United States and Brazil, aims to fight corruption by securing concrete national action plans to fight corruption from governments. The Publish What You Pay and Publish What You Lend campaigns call on transnational corporations and banks to publicize their payments and loans to local authorities.
The Equator Principles seek to ensure that private bank investments do not exacerbate environmental and social risks. The World Bank-sponsored Stolen Assets Recovery (StAR) Initiative assists successor governments in tracking down the wealth looted by deposed autocrats.
__________________________________________________________________________________
Maxwell Suuk, Journalist in Northern Ghana
Cell:+233 (0) 544288720 or (0) 207 517 200
suuk.diamondfm@yahoo.com (alternative email)African gov'ts asked to invest in data gathering for better deals
|
Theophilus Kwesi Agyei Annim
Executive Producer
No-Gimmick Infotainment
P.O. Box MC 3478, Takoradi
Tel: +233-24-4067043/ +233-23-3067043
Whatsapp: +233-24-4067043
Skype: theophilus.kwesi.agyei.annim
Youtube channel: Kwesi Agyei Annim
International expert educate African journalists on local content framework
An international local content expert, Neema Lugangira has expressed the need for African journalists to be well informed about the local content law.
According to Neema Lugangira, who is a former Senior Supplies Officer (local content) at the Ministry of Energy and Minerals in Tanzania journalists needs much education to enable them contributing to the national development.
Twenty-four journalists drawn from Ghana, Uganda and Tanzania are participating in the training program sponsored by the Natural Resource Governance Institute (NRGI) and run in partnership with their country implementing partners in Ghana (Penplusbytes), Tanzania (Journalists' Environmental Association of Tanzania), and Uganda (African Centre for Media Excellence).
The workshop which is aim at strengthening the capacity of media practitioners oversight of the extractives sectors and also allow participants to share their countries' experiences and practices in order to point out the differences and similarities, challenges, successes and potentials.
Speaking about the challenges facing countries in the sub-region, Neema Lugangira said local participation in the oil and gas activities in Ghana, Uganda & Tanzania is significantly low.
She added that only a handful of nationals are engaged in core and service value chains which she described it as worrying trend.
"Most of the goods and services demanded by the industry are imported following significant discoveries of oil and gas" Lugangira who is also a former Acting Director for Local Content in Investments, National Economic Empowerment Council in Tanzania stated.
She advised that Governments must made a decision to establish comprehensive Policy & Legal Framework to guide operations in the oil and gas industry of the respective countries.
Source: Tanzania / Adom News I Abednego Asante Asiedu I abednego.asante-asiedu@adomonline.com twitter: @Abednegoasante
Negotiation should be a good deal in the extractive industry
By Juliet Aguiar, Dar es Salaam
Neema Lugangira, a former Acting Director for Local
Content in Investments at Tanzania has noted that negotiation in the extractive
industry, should start when there is an
act to enable a country to make a good
deal.
“You
need to know your stand as a country – you must have strong negotiating power, know
what you really looking for and it has to be strategic” she said.
Ms.
Luganira was speaking on Local Content for Tanzania, Uganda and Ghanaian journalists
at the on-going media training on oil, gas and mining at Dar es Sallam in
Tanzania.
She
pointed out that it is important for countries with natural resources to have power
hand when negotiation to get a good result – government should ensure that
there are robust policy and legal framework that will help in this direction.
“Government
needs to be firm in their decision and needs to validate information when
dealing with the extractive industry- if you do not get a good deal, there will
be no economic improvement in your country” she added.
According
to her before exploration of any natural resources, government should put in
place laws ahead as well as systems that will help local businesses take
advantage in the sector.
She
said there is the need to develop the local industries to become competitive to
be able to meet standards in the International market.
END
Tanzania gears up to reap from Natural Gas
Rose Athumani
The government of Tanzania opted for onshore Liquefied Natural Gas (LNG) instead of an offshore one to ensure local participation.
Tanzania with recoverable natural gas reserves of more than 57 trillion cubic feet (tcf) is intent on ensuring Tanzanians benefit as much as possible from the fast growing oil and gas industry.
Addressing journalists from Ghana, Uganda and host Tanzania, attending 14 day media training on covering Oil, Gas and Mining in Dar es Salaam, Ms Neema Lugangira, an independent consultant and an expert in local content, said it was important for to have local participation and reap benefits that comes along with the industry.
According to Ms Lugangira who was instrumental in establishing a local content department at the Prime Minister's Office, the offshore LNG does not provide for local participation as is the case with onshore LNG and despite this fact, Mozambique which has natural gas reserves of about 200tcf went ahead and chose to have both.
"Mozambique our neighbor have signed up for both, so they will have a floating one which will come first and onshore one which will come later, so different countries can come up with different decision based on the interest of that country," Ms Lugangira added.
Tanzania on the other had will not bulge in its intent to protect local interests and it is decided that 10 percent of the gas has to be dedicated to the domestic market whether it will be used or not.
"A country needs to set a minimum, because if you don't do that the likelihood is that the investors will want to ship everything and export everything then you will remain with nothing, in the country. This is import also because gas is cheapest source of electricity especially for manufacturing, in the industry trade and also in the car trade," she added.
Tanzania also has a Natural Gas Utilization Master Plan (NGUMP) in place which among other issues, gives direction on how natural gas can be used locally.
Although Tanzania is much more focused on how to have a strong participation in the industry and retain a percentage of the finances to boost the economy, this can only be achieved with a significant participation of local content.
Unlike in the mining sector where there is a lot of employment opportunities, the gas sector according to Ms Lugangira will not be the answer to unemployment issues in the country once the structures are up and running.
Citing an example, she noted that construction of an LNG will initially need more people during construction period but later will cut down to fewer specialized staff with skills that aren't available in the country," so most of them will be from outside whether we like it or not."
She however noted that Tanzanians can participate meaningfully in the procurement part where the money is, noting that like any other organization, 60 to 70 percent of spending is on procurement, "Even if you look at our government budgets 60 to 70 percent of all budgets is procurement. That means, that is the strategic and important part of making sure that our countries can benefit through the procurement."
AFRICAN LEADERS SHOULD BORROW A LEAF FROM BRAZIL ON LOCAL CONTENT, EXPERT
By Sophia Kessy
IF Africa is to benefit fully from the extractive industry, there is a need for oil and gas-rich nations to be bold enough when it comes towards developing local content policy.
An expert on local content, Neema Lugangira made the suggestion in Dar es Salaam yesterday when speaking to a group of 24 media practitioners from Tanzania, Uganda, and Ghana who are attending the 2-week Africa’s media training on covering oil, gas and mining sectors.
She suggested the need for African leaders to be bold when developing local content policy, so that the natural resource should benefit local people in their respective countries.
The expert described local content as an important aspect it comes to oil and gas projects as it gives local people wide-range of opportunities to benefit out of the sector.
The head of policy at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), cited Brazil as an example of local content, whereby it has forced multinational companies to set up fabricating plants in the South American nation so that its people benefit out of the sector.
“Countries need to be bold enough when it comes to issues related to local content,” she said, revealing that Tanzania also took bold steps when establishing the Local Content Act of 2015.
According to the expert, Tanzania is the only country in Africa which has attempted a multi-sectoral approach in local content, whereby line sectors are involved in the policy.
“Not all of our people who can be employed in the gas sector, but they can be involved in other sectors, such as agriculture, whereby people would be selling products to gas companies,” she said.
Lugangira, who is the former Acting Director of Local Content in Investments, National Economic Empowerment Council (NEEC) in the Prime Minister's Office also cited Ghana as one of the countries that have started working on involving a multi-sectoral sector as Tanzania has.
ENDS
IF Africa is to benefit fully from the extractive industry, there is a need for oil and gas-rich nations to be bold enough when it comes towards developing local content policy.
An expert on local content, Neema Lugangira made the suggestion in Dar es Salaam yesterday when speaking to a group of 24 media practitioners from Tanzania, Uganda, and Ghana who are attending the 2-week Africa’s media training on covering oil, gas and mining sectors.
She suggested the need for African leaders to be bold when developing local content policy, so that the natural resource should benefit local people in their respective countries.
The expert described local content as an important aspect it comes to oil and gas projects as it gives local people wide-range of opportunities to benefit out of the sector.
The head of policy at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), cited Brazil as an example of local content, whereby it has forced multinational companies to set up fabricating plants in the South American nation so that its people benefit out of the sector.
“Countries need to be bold enough when it comes to issues related to local content,” she said, revealing that Tanzania also took bold steps when establishing the Local Content Act of 2015.
According to the expert, Tanzania is the only country in Africa which has attempted a multi-sectoral approach in local content, whereby line sectors are involved in the policy.
“Not all of our people who can be employed in the gas sector, but they can be involved in other sectors, such as agriculture, whereby people would be selling products to gas companies,” she said.
Lugangira, who is the former Acting Director of Local Content in Investments, National Economic Empowerment Council (NEEC) in the Prime Minister's Office also cited Ghana as one of the countries that have started working on involving a multi-sectoral sector as Tanzania has.
ENDS
Juma Muhamed Khamis
Tanzania
Imelezwa kuwa uwepo wa sera na sheria zisizotoa mwanya kwa wananchi wa hali ya chini Nchini Tanzania ni miongoni mwa sababau zinazowafanya wananchi hao kuendelea kuishi maisha duni licha ya rasilimali zao waliozonazo.
Hayo yamesemwa na mtalamu wa maswala ya gesi Nchini Tanzania Neema K.Lugangira wakati alipokuwa akitoa maelekezo kwa waandishi wa haabari wanaoendelea kupatiwa mafunzo ya rasilimali gesi na mafuta katika ukumbi wa white sand hotel jijini Dar es Salam.
Alisema uwepo wa sera hizo na sharia mbazo kwa namna moja au nyengine zinaonekana kuwabana wananchi wa Tanzania iwapo wanataka kuekeza katika secta ya rasilimali zao.
Akitaja miongoni mwa sababu nyengine ambazo zinawazuia wananchi wa Tanzania kutoweza kuwekeza katika rasilimali nikutokana kuwa na mtaji mdoogo wa kifedha jambo ambalo ni changamoto kubwa kwao ukizingatia secta hio inahitaji fedha nyingi sana ili uweze kuwekeza.
‘’Nafkiria moja miongoni mwa changamoto zinazowakabili wananchi wa kawaid Nchini Tanzania kuhusiana na rasilimali zao ni ukosefu wa mipango bora pamoja na rasilimali fedha ’’alisema mtalamu huyo.
Mafunzo hayo ya wiki mbili kwa waandishi wa habari yanayoendelea Nchini Tanzania yamewakutanisha baadhi ya wanahabri kutoka Uganda Tanzani pamoja na Ghana huku washiriki.
Tanzania
Imelezwa kuwa uwepo wa sera na sheria zisizotoa mwanya kwa wananchi wa hali ya chini Nchini Tanzania ni miongoni mwa sababau zinazowafanya wananchi hao kuendelea kuishi maisha duni licha ya rasilimali zao waliozonazo.
Hayo yamesemwa na mtalamu wa maswala ya gesi Nchini Tanzania Neema K.Lugangira wakati alipokuwa akitoa maelekezo kwa waandishi wa haabari wanaoendelea kupatiwa mafunzo ya rasilimali gesi na mafuta katika ukumbi wa white sand hotel jijini Dar es Salam.
Alisema uwepo wa sera hizo na sharia mbazo kwa namna moja au nyengine zinaonekana kuwabana wananchi wa Tanzania iwapo wanataka kuekeza katika secta ya rasilimali zao.
Akitaja miongoni mwa sababu nyengine ambazo zinawazuia wananchi wa Tanzania kutoweza kuwekeza katika rasilimali nikutokana kuwa na mtaji mdoogo wa kifedha jambo ambalo ni changamoto kubwa kwao ukizingatia secta hio inahitaji fedha nyingi sana ili uweze kuwekeza.
‘’Nafkiria moja miongoni mwa changamoto zinazowakabili wananchi wa kawaid Nchini Tanzania kuhusiana na rasilimali zao ni ukosefu wa mipango bora pamoja na rasilimali fedha ’’alisema mtalamu huyo.
Mafunzo hayo ya wiki mbili kwa waandishi wa habari yanayoendelea Nchini Tanzania yamewakutanisha baadhi ya wanahabri kutoka Uganda Tanzani pamoja na Ghana huku washiriki.
AFRICAN GOVERNMENTS CHALLENGED ON LOCAL CONTENT IN THE EXTRACTIVES SECTOR
BY TYABA SSETTUMBA ABUBAKAR
African governments have been challenged to ensure the implementation of a local content regime in their extractives sectors.
The call was made Thursday by the Former Acting Director for Local Content in Investments, National Economic Empowerment Council, Tanzania Prime Minister's officer, Neema Lugangira who believes countries can only benefit from the finite resources if all locals are engaged in the production cycle.
"Local participation in the oil and gas activities in Ghana, Uganda and Tanzania is significantly low. Most goods and services in the sector are imported", she said.
Ms Lugangira is concerned that most governments give in to the whims of the large companies exploiting their resources especially oil – leaving their people wallowing in poverty.
"10% of Tanzania's gas is dedicated to the local market by law whether the gas is to be used or not. Every government should dedicate certain percentages of their natural resources to the local market" she added.
The problem- according to her starts with African governments copying and pasting policies from elsewhere without paying particular attention to the demands of their people.
"Some issues are specific to individual countries", she said.
Ms Lugangira was meeting journalists undertaking a two weeks training on covering oil, gas and mining conducted by the Natural Resources Governance Institute in Dar El Salam.
East Africa a new hotspot for Hydrocarbon Exploration
By Maxwell Suuk
After major gas reserves were discovered in Tanzania and Mozambique alongside the substantial deposits of crude oil found in Uganda, East Africa has become the new hotspot in hydrocarbon exploration.
BP group plan to build a $30 billion-onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC) by the early 2020s.
Ms Neema K. Lukagangira, a local content expert in Tanzania wants a proper regulation to check the LNG sector, "most of the money goes out of Tanzania and doesn't remain in the country", she told Selected African journalists undergoing training in the extraction sector in Dar es Salaam, Tanzania.
__________________________________________________________________________________
After major gas reserves were discovered in Tanzania and Mozambique alongside the substantial deposits of crude oil found in Uganda, East Africa has become the new hotspot in hydrocarbon exploration.
BP group plan to build a $30 billion-onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC) by the early 2020s.
Natural Liquefied Gas—LNG according to schlumberger is natural gas containing mainly methane and ethane which usually get liquefied at a temperature of 22.1 degree Celsius. It get solidify during an extremely low temperature.
Methane is the chief constituent of most natural gas constituting up to 85% of some natural gases, with lesser amounts of ethane propane, butane and pentane. Impurities can also be present in large proportions, including carbon dioxide, helium, nitrogen and hydrogen sulfide.
Tanzania discovered an additional 2.17 trillion cubic feet of possible natural gas deposits in February, raising the east African nation's total estimated recoverable natural gas reserves to more than 57 trillion cubic feet according to the Reuters. Ms Neema K. Lukagangira, a local content expert in Tanzania wants a proper regulation to check the LNG sector, "most of the money goes out of Tanzania and doesn't remain in the country", she told Selected African journalists undergoing training in the extraction sector in Dar es Salaam, Tanzania.
__________________________________________________________________________________
By Maxwell Suuk
After major gas reserves were discovered in Tanzania and Mozambique alongside the substantial deposits of crude oil found in Uganda, East Africa has become the new hotspot in hydrocarbon exploration.
BP group plan to build a $30 billion-onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC) by the early 2020s.
Natural Liquefied Gas—LNG according to schlumberger is natural gas containing mainly methane and ethane which usually get liquefied at a temperature of 22.1 degree Celsius. It get solidify during an extremely low temperature.
Methane is the chief constituent of most natural gas constituting up to 85% of some natural gases, with lesser amounts of ethane propane, butane and pentane. Impurities can also be present in large proportions, including carbon dioxide, helium, nitrogen and hydrogen sulfide.
Tanzania discovered an additional 2.17 trillion cubic feet of possible natural gas deposits in February, raising the east African nation's total estimated recoverable natural gas reserves to more than 57 trillion cubic feet according to the Reuters. Ms Neema K. Lukagangira, a local content expert in Tanzania wants a proper regulation to check the LNG sector, "most of the money goes out of Tanzania and doesn't remain in the country", she told Selected African journalists undergoing training in the extraction sector in Dar es Salaam, Tanzania.
__________________________________________________________________________________
Media role in managing expectations
By Daniel Amule
Dar es Salam: Nigeria's local content Act helped the country in regulating its oil, gas and mining sector by creating jobs, promoting enterprise development and accelerating the transfer of skills and technologies.
Tanzania now has an established Local Content Department at the National Economic Empowerment Council (NEEC) under the Prime Minsiter's office which has put in place its three year plan 2016/17 - 2019/20.
The brain child behind this department Ms. Neema Lugangira currently an independent consultant on local content has enhanced the knowlegde of 24 journalists from the three countries of Ghana, Tanzania and Uganda through reporting on the different aspects of local content in oil, gas and mining sector focusing on the laws, policy frameworks and also comparing the local content frameworks of the three countries.
According to Ms. Neema Lugangira local content includes ownership thus opening avenues for local businesses in the case of Tanzania, local business refers to any business in Tanzania incorporated and registered in Tanzania with 51% shares owned by Tanzania national and 51% of management positions held by Tanzania nationals.
With this in place, Ms. Neema says this provides a willingness for investment because there is an opportunity for intance catering and food supply.
However at a time that Ugandans especially in westnile are so expectant and ready to give their blessings for the next phase of oil exploration, there is increased appetite for benefits that come along with oil and gas including but not limited to scholarships, royalities, employmemt opportunities, cooperate social responsibilities by oils companies; the government needs to get a good deal at the decision chain so that the local people where these natural resources are located can actually benefit.
Therefore, Ms. Neema says journalists have a crucial role to play in public expectation management which she pointed out as one of the limitations in implementating a local content policy stressing that often times journalists contribute in raising expectations but are poor in management of public expectations.
She challenged journalists to always verify the information they get from the different players in this sector so as to help the communities understand and appreciate some of complexities.
Deo Mfugale of Journalists Environmental Association of Tanzania JET reiterated the fact that local content was getting the most benefit from the extractive industry that should add value to the local economy, regional and the country.
Tanzania with its bold stand on local content has stopped any off shore mining in the country, aimed at promote local participation.
Sam jumbwike a ugandan journalist wondered how the other countries that don't have the zeal to push for a local content policy like has been the case in Tanzania could actually start the process.
Nicholas Pythian a consult in oil, gas and mining at the strenghtening media oversight of the extractives sectors 2016 also encourages the journalsits to actually invest in "showing the risks of not doing it BT the rewards of doing" incase of the local content.
Ms. Neema called upon the journalists to build the zeal in reporting more often on the issues through showing more of the losses incurred as a way of raising awareness.
One challenge with local content has been the fact that it can promote corruption and elite capture of an oil industry, especially when requirements to partner with local companies resulted in schemes in which elite politicians created shell companies to profit from the law in Nigeria. End
Be bold when crafting local content policy, expert tells African leaders
By Lusekelo Philemon
AFRICAN leaders need to be bold when developing local content policy, so that the natural resource should benefit local people in their respective countries.
An expert on local content, Neema Lugangira made the yesterday in Dar es Salaam when speaking to a group of 24 media practitioners from Uganda, Ghana, and Tanzania attending the Africa’s media training on covering oil, gas and mining sectors.
She described local content as an important aspect it comes to oil and gas projects as it gives local people wide-range of opportunities to benefit out of the sector.
Lugangira stressed that if Africa is to benefit fully from the extractive industry, there is a need for oil and gas-rich nations to be bold enough when it comes towards developing local content policy.
The head of policy at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), cited Brazil as an example of local content, whereby it has forced multinational companies to set up fabricating plants in the South American nation so that its people benefit out of the sector.
“Countries need to be bold enough when it comes to issues related to local content,” she said, revealing that Tanzania also took bold steps when establishing the Local Content Act of 2015.
“Local content means a lot to the well-being of Tanzanians.”
According to the expert, Tanzania is the only country in Africa which has attempted a multi-sectoral approach in local content, whereby line sectors are involved in the policy.
“Not all of our people who can be employed in the gas sector, but they can be involved in other sectors, such as agriculture, whereby people would be selling products to gas companies,” she said.
Lugangira, who is the former Acting Director of Local Content in Investments, National Economic Empowerment Council (NEEC) in the Prime Minister's Office also cited Ghana as one of the countries that have started working on involving a multi-sectoral sector as Tanzania has.
AFRICAN leaders need to be bold when developing local content policy, so that the natural resource should benefit local people in their respective countries.
An expert on local content, Neema Lugangira made the yesterday in Dar es Salaam when speaking to a group of 24 media practitioners from Uganda, Ghana, and Tanzania attending the Africa’s media training on covering oil, gas and mining sectors.
She described local content as an important aspect it comes to oil and gas projects as it gives local people wide-range of opportunities to benefit out of the sector.
Lugangira stressed that if Africa is to benefit fully from the extractive industry, there is a need for oil and gas-rich nations to be bold enough when it comes towards developing local content policy.
The head of policy at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), cited Brazil as an example of local content, whereby it has forced multinational companies to set up fabricating plants in the South American nation so that its people benefit out of the sector.
“Countries need to be bold enough when it comes to issues related to local content,” she said, revealing that Tanzania also took bold steps when establishing the Local Content Act of 2015.
“Local content means a lot to the well-being of Tanzanians.”
According to the expert, Tanzania is the only country in Africa which has attempted a multi-sectoral approach in local content, whereby line sectors are involved in the policy.
“Not all of our people who can be employed in the gas sector, but they can be involved in other sectors, such as agriculture, whereby people would be selling products to gas companies,” she said.
Lugangira, who is the former Acting Director of Local Content in Investments, National Economic Empowerment Council (NEEC) in the Prime Minister's Office also cited Ghana as one of the countries that have started working on involving a multi-sectoral sector as Tanzania has.
African Governments Urged Master Negotiating Skills in Oil and Gas Sector
From Fred Duodu, Dar Es Salaam (freduoo@gmail.com)
African countries have been urged to make sufficient investments in mastering their negotiation skills to make the best of their natural resources, particularly Extractives like oil, gas and mining.
George Lugalambi of Natural Resource Governance Institute (NRGI) who made the remark noted that the extraction industry is one of the most complicated and costly, hence the slightest sloppiness will mean a perpetual and irreversible lose.
He gave the advice in Dar Es Salaam, Tanzania during a training workshop for 24 journalists from East and West Africa this week. The training is sponsored by NRGI and managed in partnership with Penplusbytes of Ghana, the Journalists Environmental Association of Tanzania (JET) and the African Center for Media Excellence (ACME) of Uganda.
Natural resources have been a huge source of revenue for many countries for centuries now. For some, these resources has brought them huge revenues that have in turn transformed their economies and facilitated sustainable development. The United Kingdom, United Arab Emirates, Norway, Brazil among others are testimonies to these benefits.
Some have however lost out on the revenue and development that comes with it in very huge ways. Developing countries like Nigeria and Ghana despite being major players in the oil and mining industry respectively for decades are to have appreciable benefits from their resources.
This brings to the fore how some countries got it right with their natural resources and why others did not.
Mr Luglambi believes that the element of negotiating is what separates two category of nations.
He explained that making a good deal in negotiation is a determinant of what the country owning the resource will get today and in the future.
This he said involves making the right decision at the right time which is guided by what he referred to as the Natural Resource Decision Chain.
The decision chain illustrates the process of converting the discovery, exploration and production of natural resources into long-term sustainable development benefits instead of the current loses developing African countries incur in such deals.
The chain involves the process of deciding when to extract or not to, having the expertise to ensure a good deal through negotiations, ability to manage revenue and investing for sustainable development.
Kwame Ahiabenu of Penplusbytes, Ghana further added that succeeding in the decision chain is dependent on the Domestic Foundations for Recourse Governance in the local country such as having adequate information on the natural resources through research, analysis and investigations as well as a development plan, environmental considerations, well equipped and strong institutions and economic aspirations of the local country among others.
This must be done considering International Foundations for Resource Governance which looks at being conversant with International laws, best practices, expertise, the roles of multinational companies and international organisation and what they have to offer the local country.
NRGI and other organizations use the Natural Resource Charter to describe good governance along the decision chain. This is however different from Industry Value Chain which is how activities are organized in the industry from the upstream through the midstream to the downstream.
The Journalists drawn from Ghana are from Daily Guide, Ghana Broadcasting Corporation, Ghana News Agency, Adom Fm, TV3, Deutsche Welle TV, Viasat 1 TV and Business and Financial Times.
Local Content in oil producing Africa
Infant oil and gas industries must adopt policies for local business participation; Expert
By Silvia Nyambura
Countries such as Ghana, Uganda and Tanzania that have young oil and gas industries should put up the right frameworks to ensure local business participation. According to Neema Lulangira, the former Acting Director for Local Content in Investments in the Prime Minister's Office Government of Tanzania, only a handful of nationals are engaged in core and service value chains in the industry. In addition, most of the goods and services demanded by the sector are imported.
Speaking to Journalists at the ongoing Covering Extractives Training at the White Sands Hotel in Daresalaam, Lulangira said, "Following significant discoveries of oil and gas, governments need to come up with policies and legal frameworks to guide operations in the industries of the respective countries."
She explained key focus areas of such frameworks should be on capacity building, participation of local businesses, procurement and usage of locally produced goods and services as well as fabrication and manufacturing of machinery products locally.
Local businesses however continue to face several challenges that hinder participation in local content.
"Because of the infant nature of the industry, there tends to be lack of enough knowledge by indigenous players. Additionally, complex processes in business registration, tax policies, poor infrastructure, lack of access to markets and finance also continue to plague these industries," Lulangira added.
Tanzania recently discovered 50 trillion cubic feet of Liquefied Natural Gas (LNG) in Mtwara, South East of the country. The government made a decision to explore the LNG offshore as this arrangement is more affordable and better promotes local content than onshore exploration. Tanzania defines a local business as one owned 51% by a Tanzanian national.
The local content debate in Uganda continues as players feel government is not supportive of their need to participate in the oil and gas industry. Ghana on the other hand introduced a law streamlining the same on the same about 3 years ago. The West African country began commercial oil production in 2010 from its Jubilee field that was producing 110,000 barrels of oil per day by 2015.
No local content policies, no local participation in oil, gas
By BERNARD LUGONGO
High participation of locals in oil and gas value chain in African
countries would be realized through developing proper local content
policies and legislations, said Ms Neema Lugangira, an independent
consultant.
Ms Lugangira, who is a former acting director for local continent in
the Prime Minister's Office in Tanzania, has said local participation
in Tanzania, Uganda and Kenya has been very low.
"It's good that now we see these countries develop policies and laws
that would enhance the local content," she said.
It is through proper policies and laws that the country would ensure
that part of the money invested in oil and gas remains in the country,
he added.
She mentioned creation of employment to locals as one of the ways to
make part of the money remains in the country.
She commended Tanzania for enacting the law last year that promotes
the local content in the oil and gas sector, citing part of it which
states that 10 per cent of the extracted gas should be for domestic
use.
However, she said, infant industry, complicated business registration
and limited access to finance, were among the challenges hindering the
local participation in the sector.
--
BERNARD LUGONGO,
SENIOR WRITER,
DAILY NEWS,
Tanzania Standard Newspapers Ltd,
MOB: +255 713 636856.
High participation of locals in oil and gas value chain in African
countries would be realized through developing proper local content
policies and legislations, said Ms Neema Lugangira, an independent
consultant.
Ms Lugangira, who is a former acting director for local continent in
the Prime Minister's Office in Tanzania, has said local participation
in Tanzania, Uganda and Kenya has been very low.
"It's good that now we see these countries develop policies and laws
that would enhance the local content," she said.
It is through proper policies and laws that the country would ensure
that part of the money invested in oil and gas remains in the country,
he added.
She mentioned creation of employment to locals as one of the ways to
make part of the money remains in the country.
She commended Tanzania for enacting the law last year that promotes
the local content in the oil and gas sector, citing part of it which
states that 10 per cent of the extracted gas should be for domestic
use.
However, she said, infant industry, complicated business registration
and limited access to finance, were among the challenges hindering the
local participation in the sector.
--
BERNARD LUGONGO,
SENIOR WRITER,
DAILY NEWS,
Tanzania Standard Newspapers Ltd,
MOB: +255 713 636856.
Ghana, Uganda and Tanzania need strong legal framework on local content – Expert
By Dennis Peprah, Dar es Salaam
An international local content expert is worrying that local participation in oil and gas activities in Ghana, Uganda and Tanzania is significantly low.
According to Ms Neema K. Lugangira, a former Senior Supplies Officer (local content) at the Ministry of Energy and Minerals in Tanzania said robust policy and strong legal framework is required to improve the situation.
Such legal framework should be well-informed and can be updated accordingly, Ms Lugangira, stated when she spoke on local content at the on-going media training course for selected African Journalists underway in Dar es Salaam in Tanzania on Thursday.
Attended by 24 reporters, eight each selected from Ghana Uganda and Tanzania, the 14-day course, sponsored by the Natural Resource Governance Institute (NRGI) and organized by the Journalists Environmental Association of Tanzania in collaboration with Penplusbytes, international ICT Journalism in Ghana and the African Center for Media Excellence in Tanzania.
The course is aimed at empowering the participants to develop interest in and tell the true story of the extractive sector, especially in the oil, gas and mining.
Ms Lugangira explained that the oil, gas and mining sector offered good opportunity for local businesses to thrive and as such would increase the potential to reduce unemployment but regretted about the lack of stringent local content requirement.
"Only a handful of nationals are engaged in service value chain. Most of the good and services demanded by the industry are also imported", she added.
Ms Lugangira who is also a former Acting Director for Local Content in Investments, National Economic Empowerment Council in Tanzania, asked the participants to explore and conduct in-depth comparative analysis on the local content frameworks for the benefit of the three countries.
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