Firms in oil and gas have formed a consortium which will provide initial investment needed to develop and establish a database supporting system for local suppliers.
The firms BG Tanzania, Statoil Tanzania AS and Achilles- a global supplier information firm- has set a common supplier prequalification system. This system will be used as the preferred mechanism to identify and select local suppliers and service providers for opportunities emerging in oil and gas in the country.
Under the new initiative, local suppliers wishing to provide services to the oil and gas industry will be offered a new route to market their expertise to the world's biggest operators.
In general, the consortium has agreed on a single prequalification questionnaire with common standards that suppliers must achieve to be considered for business opportunities with the operators.
Achilles, Regional Director for Middle East And Africa, Gareth Palmer said by implementing and using the same online system, BG and Statoil are making it as easy as possible for "local suppliers to gain a 'shop window' with operators before opportunities arise." Achilles works on behalf of 200 oil and gas buying organisations across the globe to manage supplier risks.
The initiative comes at a time when the country has made a discovery of 55 trillion cubic feet (tcf) of natural gas reserves, which many operators view it as an exciting new territory even at a time of depressed oil prices. In the first stage, oil and gas firms will invite existing, in-country suppliers to provide required information on their business position in areas such as health and safety, compliance, environment and local content development.
This will feed into an accurate, up-to-date supplier database. With a clear picture of resourcing, skills and compliance levels in the region, operators will be able to identify suitable suppliers, develop supply chain capacity when needed, ensure the highest standards in business critical areas and address requirements within local content development-sharing benefits of contracts with local communities.
Further, the group said, with a single registration, suppliers could be considered for work with any buyer in the consortium. BG East Africa, the President and Asset General Manager, Derek Hudson said supporting local content makes business sense. "We are glad to provide the initial investment needed to develop and establish this system in
Tanzania
and the region.
Through this system, we hope to identify, nurture and unleash the potential to work with more Tanzanian producers and suppliers," Mr Hudson said yesterday.
Statoil Tanzania AS, Country Manager, Øystein Michelsen said, they are delighted to see that the supplier database system is coming to fruition and that suppliers and service providers in
Tanzania
will have an open and transparent platform in which they could access the opportunities emerging from the sector.
"We believe this collaboration will support growth of local companies and contribute to the economy in
Tanzania
," Mr Michelsen said. The Achilles supplier database system is also supported by the Tanzania Chamber of Commerce, Industry and Agriculture Subcontracting and Partnership Exchange (TCCIA - SPX), with support from the World Bank.
This partnership will help to develop the capacities of local small and medium enterprises (SMEs), to meet buyers. Also supporting are the Tanzania Petroleum Development Corporation (TPDC), the Tanzania Private Sector Foundation and the Contractors Registration Board.
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