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British firm to invest over USD 10bn in gas extraction

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BabuK, Feb 23, 2012.

  1. BabuK

    BabuK JF-Expert Member

    Feb 23, 2012
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    A delegation of British investors has briefed President Jakaya Kikwete on a plan to put USD 10 to 20 billion in the economy to develop infrastructure to exploit the country’s huge gas reserves.
    The British Gas International (BGI) delegation lead by its chairman Sir Robert Wilson visited President Kikwete at the state House on Monday.
    “We are planning to invest between USD10 and 20 billion in second half of this decade in gas and the Tanzanian economy,” he told the president.
    Sir Wilson said the amount was huge and that Tanzania has to prepare its economy to handle such an amount of money.
    Sir Wilson told President Kikwete that the company has discovered huge reserves of natural gas in three wells including a deepwater one which were drilled in 2009 and last year in the Indian Ocean.
    Sir Wilson told the President that his company invested 500 million USD in gas exploration in the country last year and it will invest the same amount this year.
    Sir Wilson who led a delegation of seven officials and was accompanied by Diane Corner the British High Commissioner to Tanzania, called on the government and BGI to join efforts to counter challenges in exploration, and production of gas in the Indian Ocean and especially in dealing with pirates originating from Somalia.
    President Kikwete assured Sir Wilson that his government will intensify measures to counter all the challenges.
    He said the government will ensure that the contracts for production of natural gas discovered by private companies in the countries benefit Tanzanians.
    The head of state however said the government will continue to strengthen security in the areas where the gas is either being explored or has been discovered in the Indian Ocean against piracy.
    President Kikwete assured the investors that the government will ensure that all the Production Sharing Agreements (PSA) which Tanzania enters into with private companies exploring gas or which have discovered gas will focus on benefiting Tanzanians and the investors.
    “I assure you that we will make sure that the PSA benefit Tanzanians as well as investors,” said President Kikwete in a statement.
    The meeting was also attended by the Minister of Finance, Mustafa Mkulo and Energy and Minerals minister William Ngeleja.
    BGI entered Tanzania last year and bought 60 percent of shares of Ophir Tanzania Limited which between 2005 and 2006 entered into contract with the government and the Tanzania Petroleum Decelopment Corporation (TPDC) for exploration of gas in the Indian Ocean.
    BG Group is one of the biggest companies in the world in energy production working in more than 25 countries.
  2. Masikini_Jeuri

    Masikini_Jeuri JF-Expert Member

    Feb 23, 2012
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    Good news to hear.........my problem is that will it create an impact on the livelihood of local Tanzanians?
  3. Safari_ni_Safari

    Safari_ni_Safari JF-Expert Member

    Feb 23, 2012
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    I doubt the figures......US$10bn for exploration only?...seems too much to me