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This study was assessing the participation of local suppliers in oil and gas industry in
Tanzania conducted at Statoil Tanzania. Specifically the study examining the level of
awareness of the local suppliers on participating to Oil and Gas business; analyze the
challenges of local suppliers on participating to Oil and Gas business; and identify
techniques that government use to make local suppliers participating to Oil and Gas
business. This study collected primary and secondary data using interview,
questionnaires and documentary review whereby the data collected analyzed using
qualitative and quantitative methods. The purposive and random sampling was used
to select 60 sample sizes.
The study found that, various challenges that local suppliers faced on participating in
oil and gas industry were lack of technology, poor financial capital, lack the requisite
skills, lack of technical expertise, lack of manpower and production capacity and
capability, lack of partnership between local suppliers and knowledge of oil and gas
Industry, More risk on oil and gas Industry as well as Inadequate and incoherent
policies or legislations consecutively. The result implies that most respondents agree
on lack of technology as the most challenge that local suppliers facing on not
participating in oil and gas industry
The study concluded that, oil and gas industry is high tech and capital intensive with
formidable entrance barriers for local suppliers in Tanzania which require technology
transfer and ability to absorb the technology. Moving away from the core of
upstream on oil and gas industry activities, services are in general technologically
simpler functions and are also less demanding organizationally
Moreover, the study recommended that, it is necessary to establish a legal framework
as reflected through the laws, regulations and license agreements to ensure that local
suppliers receives the necessary attention and to enforce national content ambitions |
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