President Jakaya Kikwete

President Jakaya Kikwete has said the government would make sure that natural gas Production Sharing Agreements (PSA) with private companies benefit both Tanzanians and investors.

The president also assured gas and oil prospecting companies on and off the shores of Indian Ocean that the government would continue to beef-up security to protect them against any possible piracy attacks.He was speaking on Monday evening at the State House when he held talks with representatives from British Gas International (BGI) Group, led by Sir Robert Wilson, the firm’s Board Chairman.

“I would like to assure you that all PSAs we entered with investors will benefit both sides and everyone will walk away satisfied,” he noted. Sir Wilson broke the news that BGI had struck commercially viable quantity of natural gas in three wells, including the first deep-sea well.The drilling of the three wells was carried between 2010 and last year.

BGI had invested about $500 Million (800bn/-) last year and is expected to pump in similar figure this year, Sir Wilson said. The chairman told President Kikwete that from 2016, his company would inject between $10 Billion and $20 Billion (32tr/-) for investment in gas and the Tanzanian economy in general.

Sir Wilson called on Tanzania to team up with BGI to tackle the challenges  facing  exploration and production of natural gas on the Indian Ocean.He highlighted one of the challenges as piracy that had forced private companies to spend a lot in security. Sir Wilson mentioned another concern as possibility of conflicts related to gas contracts just like what happened with mining sector.

President Kikwete assured the BGI Chairman that the government would take appropriate measures to address the challenges.The meeting was also attended by Minister for Finance and Economic Affairs Mr Mustafa Mkulo, Minister for Energy and Minerals William Ngeleja, British Ambassador to Tanzania Ms Diane Corner and seven officials who accompanied the company’s chairman.

BGI entered Tanzania market last year after acquiring 60 per cent shares from Ophir Energy Tanzania Ltd, which has entered PSAs  with Tanzania in 2005 and 2006.It is among the biggest companies in gas business in the world with operations in about 25 countries. It is among 15 biggest companies in the UK with investment capital of about $70 billion.

President Kikwete left on Tuesday for London, for a working tour.Meanwhile, President Jakaya Kikwete has appointed the former Coast Regional Commissioner, Ms Amina Mrisho, to become the Commissioner of Census.A statement issued in Dar es Salaam on Tuesday by the Directorate of Presidential Communications said that President Kikwete has also appointed Ms Seraphia Mgembe to become the Coordinator of the Property and Business Formalization Programme (MKURABITA).

According to a statement issued by the Acting Chief Secretary, Mr Peniel Lyimo, the appointments took immediate effect since last Monday.The statement noted that prior to the appointment, Ms Mrisho served as the Coast  Regional Commissioner. The National Population and Housing Census will be conducted on Sunday of August 26 this year.

Another statement signed by the State House Secretary, Mr Peter Ilomo, noted that prior to her appointment, Ms Mgembe served as Mkurabita’s Director for Finance and Administration.She takes over from Mr Ladislaus Salema who has retired in accordance with the laws of the country.

Source Tanzania Daily News

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