1. INTRODUCTION
1.1. BACKGROUND
Delivering local benefits to the communities where oil and
gas companies operate is no longer an option. It is a commercial necessity —
and one that is increasingly mandated by law in many countries. In the new
competitive landscape of diminishing supply and
increasing demand for energy
resources, companies in the oil and gas industry face rising expectations to do
more than simply mitigate negative impacts, serve as sources of tax/royalty
revenue and act as good neighbours.
To respond to the above, this policy outlines that among
other things, the oil and gas industry in collaboration with the Government
needs to do the following: (i) Develop a baseline data/information to identify
the current capacity and capabilities for Tanzanians to be employed and owned
companies to become suppliers; (ii)
Develop needs assessment of the required capacities to deploy the Tanzanian
experts in the oil and gas industry; (iii) Identify the areas in which there is
no capacity and capabilities and it will not be sustainable for Tanzania to
have such a category in place; (iv)
Identify potential partner companies who support our strategy and will help
deliver it; and (v) Identify ways in which this development will be reported,
monitored, measured and evaluated through a regulated framework for local
content with aim of continuous improvement.
This policy defines the Local Content as the added value
brought to a host nation (and regional and local areas in that country) through
the activities of the oil and gas industry. This may be measured (by project,
affiliate, and/or country aggregate) and undertaken through two main
attributes: (i) Workforce development, through employment and training of local
workforce; and (ii) Investments in supplier development through developing and procuring supplies and services locally;
Source: Policy Document
Source: Policy Document