The Association of Tanzania Oil and Gas Service Providers (ATOGS) has been formed to act as a convening body for different players across the full value chain of the Oil & Gas industry in Tanzania. ATOGS seeks to represent interest of the local providers as companies position themselves to participate fully in the emerging sector.
Particular areas of interest for ATOGS are:
Policy advocacy for promotion of local content in the development of the Oil & Gas industry;
Development of internationally recognised technical and safety standards for local providers; and
Creating a trusted and credible network of providers to facilitate local and international partnerships.
ATOGS is a membership organisation that strives to galvanise diverse Tanzanian players within the Oil & Gas industry in order to allow the industry to speak in one voice and provide other stakeholders wanting to engage the industry, a single credible and reputable point of reference.
To be the pre-eminent industry body advancing the interests of Tanzanians in the Oil & Gas industry.
ATOGS was founded in recognition of the opportunities that lie ahead for local companies off the back of the large gas deposit discoveries in Tanzania, the new Uganda to Tanzania crude oil pipeline and the aspiration for development of gas distribution networks in major cities. These new opportunities come with 4 main challenges for companies seeking to be part of this emerging sector;
- Most traditional engineering and other services companies aren’t able to make a clear link between their value propositions and the requirements of the energy sector
- Even once opportunities are identified, companies find they need to bid for work with companies requiring certain internationally recognisable standards which they lack
- Some companies wish to overcome the skills, competency and accreditation gaps through partnerships with others but are very limited in terms of access to those credible partners to engage locally and internationally
- International companies coming to Tanzania struggle to find a credible sector specific body to engage to find reputable local partners to work with
ATOGS tries to address each of these challenges by creating a credible and reputable sector led body to act as a convening entity to mobilise support from its membership and engage the government, the IoC community, educational institutions, professional bodies, civil society, development community and other stakeholders. There are also specific challenges of cross boarder projects like the Uganda to Tanzania pipeline that require cooperation of the sector in either country where industry led representative bodies like ATOGS in Tanzania and its counterparts, KOGA in Kenya and AUGOS in Uganda become instrumental in cooperating and coordinating initiatives in areas such as;
- Skill training and development
- Standards development
- Promoting industry activities
- Strategic partnerships
ATOGS Value Proposition
The strategy adopted by ATOGS draws on the experience of other large-scale infrastructure projects in Tanzania. It is clear that a competent local mobile workforce does exist; having been trained by existing local and locally registered international companies.
However, this is small in scale and a key challenge will be to organize and scale up to meet the size of expected demand during the construction phase of key projects such as the crude oil export pipeline, the development of the LNG plant and future extensions of existing infrastructure.
Furthermore, the recently enacted Petroleum Act 2015 (PA2015) also introduces specific local content requirements. There is immediate legal compliance for procurement in the oil & gas sector as spelled out in Section 219, which introduces the requirement that; “to the extent goods and services are not available in Tanzania, such goods and services will be obtained through a joint venture with a local company that owns at least a 25% interest in such joint venture”.
In light of this, ATOGS sees the value of a convening platform to shore up the Governments’ efforts to facilitate the exposure and participation of local business to a global value chain and deliver the enhanced economic impact brought by locally owned firms. The premise that locally owned and operated businesses generate greater local economic activity than their chain counterparts has become widely understood and accepted.
Today, the most readily captured opportunities for Tanzanian suppliers are in construction, engineering services, procurement of materials, logistics and indirect services (such as accommodation, transport, facilities management, operation and maintenance) also the associated value chains. Other areas that present immediate opportunities local participation are non-technical areas like insurance, financial, banking, legal, security services, catering and emergency services. However, local companies tend to find it more challenging to access opportunities related to the more complex, technical areas. ATOGS’s proposed collaborative platform help to enhance access to strategic international partnerships and delivering exposure to ‘hard to enter’ value chains.
Below are a few examples from the Tanzania Local Content Act that holds to benefit the local content in ways of:
- Preference to good which are produced or available in Tanzania and services which are rendered by Tanzanian citizens and companies
- Where the goods and services required are not available in Tanzania, they must be provided by a joint venture company in which a Tanzanian company
ATOGS will utilise the expertise of a number of international suppliers that have already establish themselves in Tanzania. These locally registered international (LRI) companies based in Tanzania can and should play a pivotal role in supporting and building Local Content, in particular by training and developing of local workforce, building supplier capacity to allow for participation of Tanzanian companies and transfer of knowledge. It is ATOGS belief LRI’s are likely to complement its efforts to bridging the international standards and accreditation gaps, enhance efforts in creating credible international partnerships as well as contributing to growth in key sectors of the Tanzanian economy.
TERMS OF REFERENCE (CHARTER) FOR THE GOVERNING COUNCIL
1. Establishment of the Committee
Pursuant to the authority provided under Article 8 (7) of the Foundation’s Articles of Association, incorporating amendments made up to 10th June 2013, the Board hereby unanimously resolves to establish a Committee of the Board to be known as the Governing Council.
2. Statement of Purpose
The Committee is constituted for the purpose of drawing up the rules that govern the action and conduct of the body and also to ensure that the rules are followed. Thus assisting the Secretariat in discharging its oversight responsibility over the Association in managing the interests of its members on the area which include Policy, Advocacy and Membership, Finance, Admin and Planning, and Auditing.
The secretariat is the body that will be charged with the responsibility of managing the finances, employee recruitment and public image of the association. It is the back office made up of highly trained individuals who will handle all the resources necessary for maintaining transparency, accountability and stable growth of the association.
The Secretariat shall consist of:
Ground Floor – Kilwa House
369 Toure Drive
Dar es Salaam
Get In Touch
Tel: +255 (0)22 229 6000
Mob: +255 746 376 306