Investors’ interest in Tanzania’s oil and gas market is huge despite the oil price significantly went down in the global market.
The main factor contributes to this is the attractive hydrocarbon prospectively. The massive natural gas discovered in offshore Tanzania is classed as “world-class”. It is a dry gas. In chemistry classes, It will be called biogenic methane. That kind is pure sweet gas not H2S sour gas. It is known to cost less to process.
Also, the region has a high exploration success rate. In Area 2 offshore Tanzania, Norwegian Equinor had a 100 percent success rate from its exploration wells.
Moreover, oil and gas operating companies are getting ready to supply much-needed gas in Tanzania.
They are pushing their exploration and drilling programs to become the next gas producers in the coming years
The simple truth is that Industry analyst projects the oil price will oscillate between $50 to $ 60 per barrel in 2020.
And also the oil price is expected to remain volatile in the next seven years.
So how do the operating companies reduce operating costs to cope with longstanding oil price recession?
How do we generate value to host government, community, and support continued economic development in the region?
Moving Tanzania local Capacity from Just a follower to be World Class Professionals
To realize potential economic benefits from activities of discovering, developing and producing oil and gas resources, the industry needs one important thing: competent, trained local people in oil and gas industry.
For example, to pinpoint the exact location to drill the first well, you need highly experienced and competent people with the ability to use sophisticated technology in collecting and interpreting geological data.
It’s economically not feasible If we have limited local talents with requisite capability.
Because oil and gas companies’ shareholders will spend billions of dollars on importing expatriates to our local market with very highly salary packages, accommodations, school’s fees for their children and full blown medical insurance for them and families
The simple truth is that the cost of importing foreign experience outweighs the cost of training and employing the local professionals.
Because relying on the overseas workforce can give international oil companies additional frustration and cost such more paperwork on documentation including work permits and resident permits.
So training and developing our local people and young professionals and move them from just users, commuters to the meetings followers not leaders to be world-class independent professionals, is the best route to realize the potential of the oil and gas operations in Tanzania.
The Road Map to Developing Tanzania local Capacity to World Class level
Dr. Mohamed Mahgoub, the Geophysics Expert in the Gulf Countries from his point of view and his wide experience in oil and gas since 1990 says “Challenges and opportunities in Tanzania shall be addressed through developing local resources, capacities and finding collaborative solutions and prepare Tanzanian students to be world-class graduates with upgrading their syllabus through partnership with international high ranking universities and training and developing the African young professionals and move them to professional Specialists and Subject Matter Experts”
To enrich our local Tanzanian experiences and reap a substantial reward from the oil and gas operations, is to reduce our counting on foreign experience for long time or forever. We acknowledge their great help but because of the current environment of the longstanding oil price slump, it is a time now to have a revolution in training and development of the local talents. We have to move Tanzanian local capacities from just dependents on the expat experience to be independent focal points for any project in oil and gas sector.
Hussein Boffu is passionate about sharing oil and gas knowledge through training , reports and industry events. In collaboration with reputable and highly experienced international partners, he provides training and development to local people and young people and move them from just a follower to be a world- class oil and gas professionals and support continued economic development primarily in Tanzania and regionally in Sub-Saharan Africa. He has hosted industry events in Tanzania to help locals and potential investors prepare their capacity and improve their capability to participate in available and upcoming oil and gas projects in Tanzania and East Africa. Reach out to him via email@example.com/+255655376543