Launch of the Association of Tanzania Oil & Gas Service Providers (ATOGS)

Dar es Salaam. The Vice President of the United Republic of Tanzania, Honorable Samia Suluhu Hassan has today launched the Association of Oil and Gas Service Providers (ATOGS), urging all companies and individuals with potentials to provide various services in the sector to join the association for the purpose of taking advantage of available opportunities.

The formation of the Association is in response to increasing opportunities in the sector following resource potentials and discoveries within the country and the new Uganda-Tanzania project to construct a 1,443 kilometres of crude oil export pipeline from Hoima district in Western Uganda through Bukoba to Tanga on the Indian Ocean coast, by 2020.

“By forming this Association, you have rightly responded to the pledge of our President, Dr. John Pombe Magufuli in ensuring that the people of Tanzania benefit from resources and opportunities available in the country,” said the Vice President.

The Association recognizes the legal requirement provided for in the Petroleum Act 2015 about local content. The act requires that all companies invested in the oil and gas sector should procure locally. Where required goods and services are not available in Tanzania, a joint venture with a local company shareholding of at least 25% will be permitted to supply. “This is a good move that will benefit business persons in the villages and townships of Tanzania,” remarked the Vice President; adding that the Government is willing to work with the Association all steps of the way in enriching policies and in gathering input from service providers in the sector.

The Association will be of benefit to about 100 companies and businesses involved in the banking sector, farming, insurance, transporting, clearing, warehousing, catering, food production, construction, drilling, law firms, welding, etc. The program to be overseen by the Association will open opportunities to locally available businesses along the entire value chain of the oil and gas sector, to ensure that the interests of Tanzania’s based businesses are promoted at all times by increasing oversight for local content maximization and capacity development to meet the required standards and accreditation gaps.

The idea behind the formation of the Association came from a visit to Uganda whereby the founders of the association met the President of Uganda, Hon. Yoweri Museveni and officials coming from a similar set up in Uganda. The founders were excited to learn how service providers in Uganda are well organized and the manner in which they are benefiting from the opportunities in the sector. From the visit, it came out strongly that it is inconceivable for service providers to benefit from the opportunities in the sector if are not well coordinated under one roof.

Speaking during the event, Ambassador Ombeni Sefue, the Chairman of ATOGS Governing Council appealed the government to work with the private sector in operationalizing available policies and acts. “I am very excited seeing that local businesses have agreed to come together. Their response and interest left me with no choice other than accepting a role in this Association. The service providers are joining the Association, hoping that the Government will be working closely with the Association in addressing existing challenges and creating more opportunities for local businesses,” said Ambassador Sefue.