Equinor started exploration drilling activities in Block 2 Offshore Tanzania in 2011. A total of 15 exploration wells have been drilled, resulting in nine discoveries with estimated volumes of more than 20 Tcf of gas in place.
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An exciting exploration area
Equinor has been in Tanzania since 2007 when the company signed a Production Sharing Agreement (PSA) for Block 2 with Tanzania Petroleum Development Corporation (TPDC). Equinor Tanzania is the Operator with 65% participating interest while ExxonMobil is partner with a 35% working interest. TPDC has the right to participate with a 10% interest.
Major gas discoveries have been made offshore Tanzania and the country is emerging as a potential large gas producer in East Africa. Equinor started exploration drilling activities in Block 2 Offshore Tanzania in 2011. A total of 15 exploration wells have been drilled, resulting in nine discoveries with estimated volumes of more than 20 Tcf of gas in place.
Preparing for Tanzania gas future
Host Government Agreement - HGA
The goal for the HGA is to ensure long term benefits to Tanzania, a commercially viable and financeable project and long-term stability and confidence for the international investors. The HGA will establish the fiscal, legal and commercial terms for the Onshore part of the LNG Project, just as the PSA defines these items for the Offshore part of the project.
Equinor has an ambition wherever possible to utilise local resources during the different phases of the project. Our initial assessment of available resources has indicated very low numbers. Since then we have embarked in several initiatives for capacity-building to facilitate knowledge building, skills building and academic qualification. Here are examples of such initiatives.
Since June 2015, Equinor Tanzania has been running a special programme which consists of seminars for various stakeholders including government, NGO, CSOs and the private sector. The aim of this programme has been to build understanding and raise awareness on the gas value chain and the proposed LNG project to our key stakeholders. Equinor believes that if our key stakeholders and the community improve their understanding of the project, expectations will become clearer and more manageable.
The participants of these seminars meet once a week for four weeks to learn about the gas project from discovery to sales. After the four sessions, participants receive a certificate to certify their participation in the course. So far more than 450 workers from various government and private institutions have participated in the programme. The feedback from the participants has been positive and gives an indication that they will share the learnings to others in their organisations. This programme is ongoing, and we aim to reach as many people as possible.
One of Equinors flagship programmes in Tanzania is the Angola Tanzania Higher Education Initiative (ANTHEI) which provides for institutional strengthening of University of Dar es Salaam Department of Chemical and Mining Engineering where Petroleum Engineering studies are housed, apart from funding petroleum engineers, geoscientists and project managers. To date we have trained over 64 petroleum geoscientists, engineers and project managers, many of whom have proceeded to secure employment inside and outside of Tanzania in the Energy sector.
Creating lasting local opportunities in Tanzania
In Equinor, we define sustainability as responsible social, environmental and economic performance balancing business resilience. Our sustainability efforts in Tanzania are based on the pillars of environment, local content and capacity building.
An example of how we work in Tanzania on the environment can be clearly demonstrated through our approach towards environmental management in our operations. Legislation in Tanzania stipulates the need to undertake a full environmental and social impact assessment prior to commencing operational activities. The outcome is an Environmental Impact Statement (EIS), which upon completion is available in the public domain. This document can be accessed via the National Environmental Management Council (NEMC) in Tanzania or via the link below.
The Entrepreneurial Heroes of Tomorrow is a business plan competition that has been conducted by Equinor Tanzania as a pilot project in Mtwara and Lindi to promote local entrepreneurship. There is a need for shift in focus for employability to self-employment, turning youth from job seekers to job creators through entrepreneurship.
The direct goal of this exciting programme is to promote entrepreneurial spirit and create role models in Tanzania who will combat the negative perception of entrepreneurship. The emerging sector of oil and gas in Tanzania provides a platform for youth to take part in the opportunities emerging from the industry and ultimately see results through successful new businesses in the southern region of Tanzania.