The Stage is now set for the Capitalization of the Oil and Gas industry in Tanzania that will anchor a progressive future for the East African Region

By Abdulsamad Abdulrahim ~ Chairman of ATOGS on 18 Apr 2020Insight

My Name is Abdulsamad Abdulrahim, the Founder and Chairman of the Association of Tanzania oil and gas service providers (ATOGS)

ATOGS was formed almost 3 years ago, July 2017  to represent the interests of our Tanzania service providers as they set themselves up to fully participate in the Oil and Gas Industry's value chain. The Association works to solve the challenge of the Oil and Gas industry's participation as well as to enhance the competitiveness of Tanzanian products and Tanzanian service providers in the sector.

The Association has been at the forefront to get Tanzanians involved in the Industry and the Drive of the Association has been to localize as much as possible Technology and expertise to propel the oil and Gas industry in Tanzania. ATOGS has been a great achievement in the Oil and Gas Industry in Tanzania by uniting service providers in the country to be one voice.

For emerging countries such as Tanzania, there are many potential opportunities that can be derived from the development of Oil and Gas projects which if successful can uplift our country’s industrialization, infrastructure and economic capability

Industrialization as we all know is the most important catalyst for of Economic Development, through collective cooperative effort between the Government and the Private Sector we envision a prosperous Tanzania where there would be significant development in all the sectors of the economy, and this will also be aided by “local content” a foundation on which our Association was built on.

Local Content is the Extra value that is added in the Economy through the Utilization of domestic Produced Goods, Services and Human resources

Natural Resource Endowed countries such as Tanzania are increasingly inserting requirements for local content into their legal framework, through legislation and regulation. Whereby if successfully implemented local content can lead to job creation, boost the domestic private sector, facilitate technology transfer and build a competitive local workforce. Further more local content policies can be key to translating resource investments into sustainable benefits for the local population,

Examples of Local Content initiatives we propose include:

• International Oil company’s compliance with a minimum threshold of local content requirement should be a criterion for winning a bid/ tender.

• Mandatory employment or training requirements for local content.

• International Oil Companies have to meet local content targets when procuring goods and services. Local content certificates establish whether those local content targets have been met.

• International Oil Companies should be required to spend 1% of gross revenues on research and development.

All these tools are instituted to reduce capital outflow, promote value addition and serve as linkages to other sectors of the economy.

Evidently the desire for Tanzanians to participate in the oil and Gas Sectors not just as employees but business owners has brought the need for us to host an annual Oil and Gas Congress that has been running for almost 4 years now.

The Tanzania Oil & Gas Congress focuses on exciting updates in Tanzania’s oil and gas sector including strategic discussions on how to attract investment and create opportunities for the industry.

Attendees get the opportunities to discover the full range of business opportunities and benefits the oil and gas developments will bring the local economy, and how your company can harness these prospects by connecting with all the key local and international industry players.

Last year during the 3rd Oil and Gas Congress we had about 700 delegates from 25 countries who came to see what Tanzania is doing in the Oil and Gas spectrum.

And for more than two years now, the ATOGS has welcomed more than 100 companies that provide services to the Oil and Gas industry, such as Shipping companies, Security companies, Construction industries, Engineering Contractors, Steel and pipe manufacturers and Banks to be part of the Association and reap benefits that the Oil and Gas industry has to offer. We also work closely with Government Institutions, representatives of business and the public sector to promote sustainable development of the Tanzanian economy and in particular the oil and gas sector.

ATOGS aims to ensure that there is good communication between the Government of Tanzania, stakeholders and the broader community that will benefit from the Oil and Gas sector as well as increase the contribution of the Oil and Gas sector to the development of our country. Our offices are located in Oysterbay, Toure drive kilwa house, and we welcome all Tanzanians who are interested to know about this fastest growing sector of Tanzania our website is www.atogs.or.tz

By Abdulsamad Abdulrahim ~ Chairman of ATOGS