BabuK
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- Jul 30, 2008
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The Revolutionary Government of Zanzibar and Shell International officially signed joint implementation accord for exploration deals in the oil and gas sector.
Representatives from both sides inaugurated a joint implementation committee (JIC) in The Hague, Netherlands amid this week as a step towards launching of the project scheduled to start in the next fiscal year.
"Following the signing of the Memorandum of Understanding (MoU) between the Revolutionary Government of Zanzibar and Shell International on Exploration and Production (Shell) in August last year, the project is now inaugurated.'' Said a report released by BG Group yesterday.
The JIC was set up for the purpose of effective implementation of the MoU. The MoU outlines the cooperation between Shell and Zanzibar in the oil and gas sector and describes initial activities.
"We are looking forward to the long-term cooperation with the Revolutionary Government of Zanzibar on the development of the oil and gas sector," said Axel Knospe, Shell's representative in Zanzibar."
The move my might- regain hopes that faded when, the Royal Dutch Shell efforts to explore oil and gas in east Africa after a decade-long delay due to a standoff between Zanzibar and Tanzania on the sharing of potential revenue.
The dispute between semi-autonomous Zanzibar and its mainland rulers had s prevented Shell from starting work on four blocks off Zanzibar's coast or selling interests in its exploration rights in the region, which has become a hot spot for oil and gas exploration after new finds, the company's officials said.
Shell said it could not discuss details of its negotiations with the governments but was hopeful of a resolution.
The oil company the oil major exploration activities will be able to move forward when a production-sharing agreement started negotiations on in 2003 is finalised.
"We have recently been engaging with both the Tanzanian and Zanzibar governments with a view to achieving this, which would allow exploration activities to begin," a spokesman for Shell who declined to be named, said in an email to Reuters.
"We understand the complex issues involved, and we are playing a constructive and full part in seeking to resolve them as soon as possible."
Zanzibar has said since Shell won rights to the blocks in 2002 that the revenue from any discovery should be for its sole benefit.
State-owned Tanzania Petroleum Development Corp (TPDC) feared that making a politically unpopular decision could stoke separatist sentiments in Zanzibar.
Government officials in Tanzania and Zanzibar said meetings to discuss the standoff have all but ceased, while an escalation of tensions as separatist Islamist groups clashed with police on May 27 has worsened the impasse.
Meanwhile, BG Tanzania and the British Council yesterday officially launched an international programme offering scholarships to Tanzanian graduates to study for Masters of Science degrees in UK universities.
The scholarships will provide opportunities for 10 Tanzanians each year to study in the UK and to become part of the future work force in Tanzania's oil and gas sector.
A range of courses relevant to the sector are available under the program at three UK universities; Imperial College London, Aberdeen University and Robert Gordon University.
The scholarships, funded by BG Tanzania and administered in partnership with the British Council, cover the cost of academic fees, travel, living expenses and pastoral support while the graduates are in the UK.
Successful candidates will be provided support when applying for a visa.
Derek Hudson, BG Group President and Asset General Manager East Africa, said: "One of the many ways the oil and gas industry can have a positive impact on the people of Tanzania is through employment.
BG Group's preference, wherever we operate in the world, is to employ skilled people from the communities in which we operate.
Initiatives like the international scholarship programmes are crucial to maximising local employment, not only with BG Group but across Tanzania's growing oil and gas sector".
Mr Hudson said the international scholarship programme is one of several investments by BG Tanzania to improve the livelihoods of Tanzanians, complementing initiatives in secondary education and vocational education training.
Richard Sunderland, the British Council's Country Director, added: "By building expertise in the oil and gas sector, we will help Tanzania to secure the maximum benefits from an industry that has the potential to bring positive change to the country.
"Our work with partners such as BG Tanzania is core to our capacity and skills development remit to build trust and understanding between Tanzania and the UK. " He said
BG Tanzania is the local business of BG Group, a global gas and oil dealing company.
SOURCE: GUARDIAN ON SUNDAY
