Tanzania

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.

How to find us in Tanzania

Dar es Salaam
429 Mahando street
Block A
Msasani Peninsula
Dar Es Salaam
United Republic of Tanzania
Tel: +255 684 226203 / +255 764 958550

Our activities in Tanzania

Equinor in Tanzania

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.

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.

Land for the Tanzania LNG project

Equinor together with its partners in Block 2 continue to work with the government of Tanzania to advance the project by developing a legal, fiscal and commercial framework that will enable the LNG project to become a reality.

Following an extensive site selection process in 2013, a site was identified in the Lindi region to host the onshore LNG plant once the final investment decision is made by the investors. TPDC is the licence holder for the offshore Block 2 and the land title holder for the selected LNG site.

In May 2020, TPDC, as the company responsible for the acquisition of the LNG site, commenced the compensation process for the affected communities at the LNG site consistent with Tanzanian law.

An independent third-party is closely monitoring TPDC’s compensation and relocation process against the Tanzanian law and the commitments included in the Resettlement Environmental Impact Assessment (REIA).

Throughout TPDC’s compensation and relocation process, Equinor and its partners maintain dialogue with the relevant authorities. In line with UN guiding principles for business and human rights, Equinor is assessing impacts from this process to define mitigating actions toward the impacted communities.

If an investment decision is ultimately made, this process will be reviewed in the context of international best practice principles.

Capacity Building

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.

Masters of Finance in Oil and Gas

In 2014, UDBS in partnership with UIS developed the Master programme in Finance and Accounting in Oil and Gas (MFA-OG) The objective of this programme was to enable the universities to educate personnel relevant for the petroleum industry in Tanzania in finance, accounting and economics, and provide foundation for future research activities. The Masters programme was officially launched in 2015. In addition to supporting the programme development, Equinor has offered scholarships to students. As of 2018, 13 students have graduated, and 113 have enrolled.

Youth Empowerment

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.

Nassibu Hamibu Lilumba, winner of the Heroes of Tomorrow entrepreneur competition in Tanzania.

The programme was established in 2014 and by 2016 more than 250 youth in Mtwara and Lindi were trained on entrepreneurship through this initiative. The first round of the competition had five winners while the second round saw 10 youth from Mtwara and Lindi emerging as winners. By 2018, more than 15 new businesses have been established in Mtwara and Lindi thanks to this programme.

Environmental Impact Statement (PDF)

Working with local communities

Neglected tropical diseases programme

Since 2015 Equinor has been supporting the Neglected Tropical Diseases Program (NTDP) in Mtwara and Lindi. NTDP is under the National Institute for Medical Research (NIMR). The goal of project is to improve the health and engage with the local community in Lindi and Mtwara. From 2017, the project focused in Lindi where the onshore LNG plant is expected to be built. Between 2015 to 2018, more than 640 hydrocele and inguinal hernia patients underwent surgeries.

Equinor Tanzania has established this programmatic approach to engaging with local communities in our areas of operations based on the principles of shared value. This programme provides a platform where we can engage with the regional government and local stakeholders, while meeting some needs of the communities in which we work. This is in line with SDG’S and addresses particularly Sustainable Development Goals (SDG) No. 1: No poverty and 3: Good health and well-being.