Oil and gas firms in Tanzania form a consortium for supplier database

Two major oil and gas firms in Tanzania, BG Tanzania and Statoil Tanzania formed a consortium with AS and Achilles- a global supplier information firm- to set a common supplier prequalification system.  The 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.Using 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.

Generally the consortium has settled on a single prequalification questionnaire with collective standards that suppliers must achieve to be considered for business opportunities with the operators.Gareth Palmer, (the Achilles, Regional Director for Middle East and Africa) 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 represents 200 oil and gas buying organisations across the globe in managing supplier risks.

The initiative has come at the appropriate time when the country has made a discovery of 55 trillion cubic feet (tcf) of natural gas reserves. Many operators deem it as an exciting new territory even though oil and gas prices are at their lowest. Existing in-country suppliers will be invited by oil and gas firms 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. The clear picture of resourcing, skills and compliance levels in the region, will enable operators to identify suitable suppliers, develop supply chain capacity when required, ensure the highest standards in business critical areas and address requirements within local content development-sharing benefits of contracts with local communities.The group stated further, that 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. He also said ‘Through this system, we hope to identify, nurture and unleash the potential to work with more Tanzanian producers and suppliers’.Statoil Tanzania AS, 

Country Manager, Øystein Michelsen said, they are pleased 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 emerging opportunities from the oil and gas sector.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 as well as the Tanzania Petroleum Development Corporation (TPDC), the Tanzania Private Sector Foundation and the Contractors Registration Board.

This partnership will aid in developing the capacities of local small and medium enterprises (SMEs), to meet buyers.

Source: daily news