UK Oil and Gas Trade Mission to Tanzania

HE British High Commissioner, Dianna Melrose (at the center) and Ms. Anne MacColl-Chief Executive of Scottish Development International (at the left) and Mr. Neil Golding-Head of Oil and Gas from Energy Industries Council-(at the right)
HE British High Commissioner, Dianna Melrose (at the center) and Ms. Anne MacColl-Chief Executive of Scottish Development International (at the left) and Mr. Neil Golding-Head of Oil and Gas from Energy Industries Council-(at the right)

An oil and gas industry delegation from the United Kingdom will visit Tanzania from the 10th – 11th February 2014 to explore the growing investment opportunities for British businesses in the country. This is a joint trade mission led by Scottish Development International (SDI) and the Energy Industries Council (EIC) and it is the first time they are visiting Tanzania.

SDI and EIC will be accompanied by 34 companies representing a cross section of the UK oil and
gas industry. The UK Trade and Investment (UKTI) Department at the British High Commission in Dar es Salaam will host the trade delegation.

The aim of the mission is to identify opportunities in the market and strengthen existing or establish new business relationships. During their visit, the delegates will have an opportunity to meet with the Ministry of Energy and Minerals (MEM) and Tanzania Petroleum Development Corporation (TPDC) to understand better the country’s oil and gas industry and the opportunities.

The visiting UK companies will also have an opportunity to meet with local Tanzanian companies within the oil and gas and complimentary/cross cutting sectors to discuss opportunities in the oil and gas industry and areas of future collaboration.

The delegates will also receive briefings from the British High Commissioner, Her Excellence, Dianna Melrose, Tanzania Investment Centre (TIC), Deloitte and DFID Tanzania. The mission members will also meet with representatives of oil and gas companies in Tanzania.

Tanzania is a growing market with on-going exciting discoveries, 19 exploration blocks and US $10-20bn investment projected for exploration and production in the coming decade. Over the past two years, exploration activities in Tanzania’s deep offshore waters led to the discovery of 45 trillion cubic feet (tcf) of natural gas, and more is to come as drilling campaigns continue to unfold. It is estimated that the recoverable reserves will more than double to 100 tcf by the year 2015.

UK companies are the leading players in the oil and gas sector in Tanzania. Out of 12 offshore deep water blocks 4 are British operated or owned, with a 50% UK stake in two others.

Anne MacColl, chief executive of Scottish Development International, the international development arm of Scotland's enterprise agencies, said:
“We always seeking new opportunities for our companies at a global level, and have a particular focus on markets where Scotland’s skills and expertise play to a specific need. With East Africa fast becoming established as a hub of deepwater activity – thanks to exploration and production drilling activities in the offshore in Mozambique and Tanzania – we know that the potential for Scottish oil & gas companies in significant. 
“In fact in our most recent survey of international activity by the Scottish supply chain, Africa was the top geographic region for direct oil & gas sales, and second only to North America when it came to total international sales, including those through subsidiaries. This trade mission will help companies to explore how they can use the experience they’ve built up in the challenging environment of the North Sea, to exploit these growing opportunities and develop their business internationally.”
Mark Gamble, Overseas Events Manager at the EIC and the EIC Mission Leader said:
“Tanzania, along with a number of countries along the East Coast of Africa, is proving to be an exciting emerging frontier: EICDataStream is currently tracking 11 upstream projects in Tanzania, worth a total potential investment of US$2.9 billion. The majority of these are exploration projects. 
“In particular, Blocks 1, 3 and 4, operated by BG Group, and Block 2, operated by Statoil and ExxonMobil, are the most likely to be of interest to UK suppliers operating in the oil and gas sector in the near-term, with these deepwater discoveries are all expected to be linked to a fast-track build LNG plant in southern Tanzania.”
Commenting on East Africa, Mr Gamble said:
“Tanzania is certainly one to watch for our members, but neighbouring Mozambique is equally exciting, and is further ahead with the development of its significant gas discoveries. Taking in Uganda and Kenya, the East Africa region has real potential to become a significant hub for oil and gas development.”
The EIC trade delegation will also visit Mozambique to introduce UK companies to opportunities in the country’s oil and gas industry whilst the SDI will visit Kenya and Tanzania to explore similar opportunities.

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Tamsin Clayton, Head Political, Public and Press, Email: [email protected], Tel: +255 (0) 22 229 0287