DAR-ES-SALAAM, The Association of Tanzania Oil and Gas Service Providers (ATOGS) and the Association of Uganda Oil and Gas Service Providers (AUGOS) have signed an agreement to work together in the construction of the 1,400-kilometre Hoima-Tanga pipeline project running from oilfields in western Uganda to the Indian Ocean port of Tanga in Tanzania.

Speaking at the signing ceremony here Wednesday, ATOGS co-founder and Vice-Chairman, Abdulsamad Abdulrahim, said the event marked the start of collaboration between the two sides in a journey to grow the economies of Tanzania and Uganda.

The agreement will see Tanzanian and Ugandan service providers making joint bids for tenders in different areas of the pipeline project, including transportation of materials.

AUGOS Chief Executive Officer Emmanuel Mugarura encouraged Tanzania service providers in the industry to be strong, work together and uphold standards required by the industry. It's through standards that you can stand up and talk ... stand up and compete, join tenders and stand up against Chinese, Europeans and Americans who have been in the game longer and they have money. The advantage we have is that we are East African, Mugarura explained.

ATOGS was formed as a result of AUGOS, after service providers visited Uganda and saw the need to establish an association which brings together local business service providers. One of ATOGS' objectives is promoting local content in the oil and gas industry through supporting job and business opportunities for nationals and local businesses in the country.

Earlier, while speaking with ATOGS members, the Senior Vice-President (Business Development) of Prezioso Linjebygg Company, Jean-Louis Chassagne, said the company has vast experience in executing such major oil and gas projects.

Prezioso Linjebygg is among seven companies bidding for work in the execution of the project. Chassagne said the French company had worked across the continent in countries including Angola, Congo, South Africa, Gabon, Ghana, Algeria and Equatorial Guinea.



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