Planning for Local Content: The Case of Block 2 in Tanzania

Abstract This paper summarizes the approach adopted by Statoil Tanzania in its capacity as operator of Block 2, towards local content, both for its past offshore exploration activities, as well as planning for the future potential development and operations phase of a project combining supply of domestic gas with LNG export. Within the context of Statoil Tanzania's business activities in Tanzania, the first section of the paper summarizes the internal and external drivers for local content. The next section then addresses the overall strategic framework developed to assist the application of a consistent approach to local content across all aspects of Statoil Tanzania's activities. The third section of the paper then looks at the practical application of this framework in the implementation of local content during Statoil Tanzania's offshore exploration activities, as well as the ongoing planning activities to support local content during the potential development and operations’ phases of the project. The final section of the paper summarizes key conclusions.