Tanzania to hire consultants for liquified natural gas project

17 April 2018 Consultancy.africa

After facing an extended spell of deadlocks and regulatory obstacles, the Tanzanian government is looking outwards for support with negotiations for its proposed liquefied natural gas plant. The government has invited tenders from the consulting industry for a project involving the development of a strategic plan for negotiation with a host of oil firms.

Plans to construct a liquefied natural gas (LNG) plant in Tanzania have been in the pipeline for more than 8 years now. The plant was first conceptualised following the discovery of natural gas off the coast of the country. Overall, the country sits on recoverable natural gas reserves of 57 trillion cubic feet.

The project consists of constructing an onshore LNG export terminal worth $30 billion on a 2000+ hectare plot of land near the large town of Mtwara. Stakeholders in the project include a number of major global oil firms, namely BG Group, Royal Dutch Shell, Statoil, Exxon Mobil, and Ophir Energy, working in collaboration with the Tanzania Petroleum Development Corporation (TPDC); a public sector oil management entity.

Despite the extensive planning and strong intent, the government has been unable to push the project through so far, due primarily to delays in establishing the regulatory framework. Following his appointment in 2015, President John Magufuli declared his intent to fast-track the project, which injected fresh energy into the negotiation process.

The biggest obstacle to the completion of negotiations so far has proven to be the arrival at a Host Government Agreement (HGA), which is crucial to the commencement of the project. In simple legal terms, an HGA is a consensus between the foreign investors and the host government (Tanzania), detailing the rights and obligations that all parties have with respect to a project.

Tanzania to hire consultants for liquified natural gas project

Negotiations to arrive at an HGA began in 2016, and were due for completion later this year, but the progress has been exceptionally slow. Specifically, the project has been held up by the sluggish legal land acquisition process, as well as the gradual development of Tanzania’s regulatory framework for its hydrocarbon sector.

The good news is that the TPDC has now taken an active step towards breaking the deadlock, calling for external expertise form the consulting industry. The consulting assignment involves the development of a commercial, legal, and technical framework for the project.

As stated in the TPDC’s tender announcement, “The objective of the assignment includes... to build capacity and facilitate the government negotiation team (GNT) team and to devise the best approach to undertake negotiations of the host government agreement.”

The bad news is that the road ahead remains extremely long. As per the TPDC, the development of this framework itself is expected to take two years, following which the investors expect another two years, at the very least, to elapse in negotiations of the terms, after which construction of the project will take another five years.

Nevertheless, enthusiasm for the project has not waned, particularly in light of the projection made by Tanzania’s central bank that the simple act of commencing the project will add 2% to the country’s existing annual economic growth rate of 7%.

Government demand for consulting services, particularly for the energy sector, has been on the rise across Africa, as the commodity-dependent continental economy looks to grapple with the diversified contemporary economic scenario.

Nigerian HR consultancy holds workshop for awareness on sustainable practices

18 April 2019 Consultancy.africa

In order to promote awareness surrounding the sustainability of economic practices in Nigeria, organisation transformation and HR management consultancy Renner & Renner Consulting has held a workshop in collaboration with the Department of Petroleum & Resources.

The focus of the workshop was to familiarise firms and executives with the latest reports on the energy outlook in Nigeria and around the world, and their status with respect to the Paris Climate Agreement stipulations on developmental projects. The workshop is targeted at firms working in the oil & gas domain.

The stipulations, which are clubbed under the Development Guidelines and Standards on Carbon Emission Reduction Monetisation for Oil & Gas Projects, provide an environmental framework within which to conduct oil & gas projects. The workshop was conducted in collaboration with government officials at Southern Hotels in lagos.

Nigerian HR consultancy holds workshop for awareness on sustainable practices

A number of major dignitaries attended the event, including Project Director at Renner & Renner Ibby Iyama and Jennis Anyanwu who represented the delegation from the Department of Petroleum & Resources. Other guests at the event were Yomi Ayodeji, Joseph Muds and Eugene Itua.

Iyama set the agenda for the meeting, asking for cooperation from the Department of Petroleum & Resources to help control the rapid increase in the carbon generation from gas flaring practices across the country. She suggested that the reduction of carbon should be taken up on a project basis.

Provided that these projects were conducted with diligence, Iyama has expressed her belief in their capacity to support clean energy generation across Nigeria. She lauded the Department of Petroleum & Resources for their work in the domain of clean energy thus far, and urged representatives from the agency to mobilise cooperation.

Nigeria is one of the largest economies in Africa, and is among those countries that is heavily dependent on the trade of oil & gas for its GDP. As a result, the economy’s gradual recovery from the global dip in oil prices has been accompanied by an increase in the intensity of work in the oil & gas sector.