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UK oil and gas industry delegation visits Tanzania from the 10th – 11th February 2014 to explore growing investment opportunities for British businesses in the country.
An oil and gas industry delegation from the United Kingdom visited Tanzania from the 10th – 11th February 2014 to explore the growing investment opportunities for British businesses in the country. This was a joint trade mission led by Scottish Development International (SDI) and the Energy Industries Council (EIC) - their first time visit to Tanzania.
SDI and EIC were accompanied by 34 companies representing a cross section of the UK oil and gas industry. The UK Trade and Investment (UKTI) Department at the British High Commission in Dar es Salaam hosted the trade delegation.
The aim of the mission was to identify opportunities in the market and strengthen existing business relationships. During their visit, the delegates had the opportunity to meet officials from the Ministry of Energy and Minerals (MEM) and Tanzania Petroleum Development Corporation (TPDC); and local Tanzanian companies in the oil and gas and complimentary/cross cutting sectors.
The delegates also received briefings from the British High Commissioner, Her Excellence, Dianna Melrose, Tanzania Investment Centre (TIC), Deloitte and DFID Tanzania.
Tanzania is a growing market with on-going exciting discoveries, including 19 exploration blocks and US $10-20bn investment projected for exploration and production in the coming decade. Over the past two years, exploration activities in Tanzania’s deep offshore waters have led to the discovery of 45 trillion cubic feet (tcf) of natural gas. More discoveries are likely to come as drilling campaigns continue to unfold. It is estimated that the recoverable reserves will more than double to 100 tcf by the year 2015.
UK companies are the leading players in the oil and gas sector in Tanzania. Out of 12 offshore deep water blocks, 4 are British operated or owned, with a 50% UK stake in two others.
Speaking during the visit, Anne MacColl, Chief Executive of Scottish Development International, the international development arm of Scotland’s enterprise agencies said:
“We are always seeking new opportunities for our companies at a global level and have a particular focus on markets where Scotland’s skills and expertise play to a specific need. With East Africa fast becoming established as a hub of deepwater activity – thanks to exploration and production drilling activities in the offshore in Mozambique and Tanzania – we know that the potential for Scottish oil & gas companies is significant.
“In fact in our most recent survey of international activity by the Scottish supply chain, Africa was the top geographic region for direct oil & gas sales, second only to North America in total international sales, including those through subsidiaries. This trade mission will help companies explore how they can use the experience they have built up in the challenging environment of the North Sea, to exploit these growing opportunities and develop their business internationally.”
Mark Gamble, Overseas Events Manager at the EIC and the EIC Mission Leader said:
“Tanzania, along with a number of countries along the East Coast of Africa, is proving to be an exciting emerging frontier: EICDataStream is currently tracking 11 upstream projects in Tanzania worth a total potential investment of US$2.9 billion. The majority of these are exploration projects.
Blocks 1, 3 and 4 operated by BG Group and Block 2 operated by Statoil and ExxonMobil, are the most likely to be of interest to UK suppliers operating in the oil and gas sector in the near-term, with these deepwater discoveries expected to be linked to a fast-track build LNG plant in southern Tanzania.
The East Africa region has real potential to become a significant hub for oil and gas development.”
The EIC trade delegation are also visiting Mozambique to introduce UK companies to opportunities in the country’s oil and gas industry whilst SDI will visit Kenya and Tanzania to explore similar opportunities.
About Scottish Development International (SDI)
SDI is the international Trade and Investment arm of the Scottish Government, Scottish Enterprise and Highlands & Islands Enterprise. SDI’s role is to raise the aspiration and ambition of more Scottish businesses to trade and export globally; attract investment and talent which builds on Scotland’s globally competitive sectors, and work collaboratively to increase the global competitiveness of the business environment in Scotland.
SDI offers help and advice to companies looking for the ideal investment location for their business and provides a range of services for businesses thinking about entering the overseas market.
SDI are contributing to the Scottish Economy in the following ways:
• Encouraging new investment. • Increased support for Scottish and overseas business. • Projecting a strong image for Scottish business abroad. • New programmes to help business grow internationally. • New financial support for companies attending international events. • Extended Events Programme.
About Energy Industries Council (EIC)
EIC is the leading trade association providing dedicated services to help members understand, identify and pursue business opportunities worldwide.
Established in 1943, they are a not-for-profit organisation with a large membership of over 700 UK-registered companies delivering goods and services to the oil & gas, petrochemical, pipeline, power, nuclear and renewable industries globally.
Headquartered in London, EIC has a global network of offices, from regional UK offices in Billingham and Aberdeen, to international offices in Rio de Janeiro, Houston, Dubai and Singapore. They operate from this extensive worldwide network, delivering expert market knowledge, connecting suppliers with buyers, and providing support services that together give our members the competitive edge.
EIC’s goal is to put members first and serve them well. EIC is renowned for excellence in the provision of services that unlock opportunities for members, helping the supply chain to win business across the globe.