Friday 17 October 2014

Government officials trained on oil, gas contracts



By Patty Magubira, The Citizen Reporter

Posted  Thursday, October 16  2014 at  10:38
In Summary
The acting director for the Contracts Division in the AGC, Mr Yohane Masara, said the training for about 20 civil servants from different sectors was tailor-made for deals on Liquidified Natural Gas.
SHARE THIS STORY
0
Share
Arusha. The Attorney General Chambers (AGC) has in collaboration with the Ministry of Energy and Minerals (MEM) organised a week long training in contracts negotiations.
The acting director for the Contracts Division in the AGC, Mr Yohane Masara, said the training for about 20 civil servants from different sectors was tailor-made for deals on Liquidified Natural Gas.
He said the training was compounded by the increasing number of negotiations pertaining to minerals, particularly the emerging oil and gas sub-sector.
The civil servants have been drawn from the AGC Tanzania Mainland and Zanzibar and Energy and Water Utilities Regulatory Authority.
Others are from Tanzania Revenue Authority, Tanzania Petroleum Development Corporation, and the Prime Minister’s Office. Government officials have often come under attack for negotiating shoddy deals that have many times not sat well with the public and embarrassed the state.
Mr Masara said three seasoned lawyers from K & L Gates in the US, the UK, and Australia were invited to drill the civil servants.
With the largest network of offices worldwide, K & L Gates practices law on an integrated basis and is recognised as a leader in the private equity, hedge fund, venture capital, consumer mortgage finance, AIM listing, outsourcing, and Employee Stock Ownership Plan areas.
The prime goal of the training is to build the civil servants’ capacity to negotiate energy deals for the country to benefit from the godsend, said Mr Masara, explaining that the resource persons were knowledgable, as they worked in the sector for over 15 years each.
The Energy engineer from MEM, Mr Styden Rwebangira, said the training was part of the Capacity Development in Energy Sector and Extractive Industry Programme.
“The training, intends to prepare the civil servants for the business of gas which has to be packaged for it to be transported to the market,” he explained.
He said the trainers had vast experience, as they had for years been serving as consultants for both investors and governments on how each side can defend its interests in the deals.
They will, among other things, train the multi-sectoral civil servants on several types of contracts for them to select feasible ones.
“We will share experience of lessons from around the world to optimise the greatest value for this country to maximise on what it can reap from the LNG,”one of the resource persons, Mr Steven Sparling, said.
He said the LNG had a potential for generating revenue and reducing tensions pitying communities, investors and the government.
“Best projects are those which find ways of sharing benefits equitably including technologies,” Mr Sparling explained.
His colleague from Australia, Ms Clare Power, said owing to multinationals being well organised with vast experience; governments had to be prepared before going to the negotiation table with them.
“Big companies have a lot of information about the value and economics of the projects in question; they are surrounded by the best expertise in accounts and law.
“Governments come in with a disadvantage, as the parties they negotiate with know much more than they do, explained Ms Power, cautioning the trainees over a trend among most investors to divide them.

No comments:

Post a Comment