NGC hosts Tanzania negotiating team

NGC said the GNT was here to learn more about TT’s oil and gas industry, as the East African nation seeks to develop its unexploited offshore gas reserves amidst a slow-moving economic growth and low commodity prices.

In a release issued yesterday, NGC said, “The appeal of Tanzania’s 53.2 trillion cubic feet of recoverable natural gas resources has brought intense competition among the global energy players.” NGC explained that Tanzania’s government, through its ministry of energy and minerals, has “opened discussions with International Oil Companies (IOCs) for the negotiation of a Host Government Agreement (HGA), with a view to developing an LNG project.” “Discussions began in September 2016 and the government of Tanzania constituted the GNT to meet with negotiating teams for the IOCs. To date, the IOCs and GNT have agreed to develop a term sheet separately in order to start negotiations which will develop the HGA.” The purpose of the June 28 visit to NGC’s Point Lisas head office was to “help the (GNT) team acquire knowledge and experience which will help to modify and develop a better term sheet.” NGC President, Mark Loquan and NGC Vice-President, Gas Transmission and Distribution, Ronald Adams, delivered a presentation to the GNT, “which spoke to both the NGC Group and NGC’s interest in LNG.” Also representing NGC Group were Verlier Quan Vie, Senior Manager, Commercial, NGC and Alvin Dookie, Vice-President, Business Development at Phoenix Park Gas Processors Limited.

NGC said Loquan noted that these study tours are important to NGC, as they cemented NGC’s new strategy - transforming its business, growing along the value chain, moving into other jurisdictions and becoming a global player through strategic partnerships.

NGC also expressed an interest in promoting not only itself but Trinidad’s service sector and academic institutions, “if value could be created in Tanzania’s critical stages of development.” NGC added, “The GNT expressed great interest in the gas model used in Trinidad, issues with respect to development of the gas model, infrastructural development for gas distribution and other elements such as LNG production, royalties and fiscal terms which in Trinidad are set by the Ministry of Energy and Energy Industries.” The GNT team was led by Professor James Mdoe, acting permanent secretary in Tanzania’s ministry of energy and minerals, who “thanked NGC for sharing its experience and extended an invitation to visit Tanzania.”