With the latest low oil price emerging from the impact of coronavirus pandemic and oil price war between major oil-producing countries, only those who are flexible will emerge stronger.
But survival in the oil-and-gas business means embracing change: changing things that are in your control and implement useful strategies quickly.
In periods (like this) when oil sells for a lower price in the global market (compared to the previous years), issues and opportunities will still exist.
With the low oil price expected to last until 2021 or 2022, the oil-and-gas industry should change the way it operates.
This uncertain market condition is the time to obtain the required approvals with the view to starting drilling or even production when the market springs back to life.
Realistically, tough market situations present the best tangible and visible opportunities.
Take, for example, imagine a company that implements smart strategies during the periods of low oil price. Precisely, a company that targets assets which remain profitable during those periods but are likely to exceed the investor’s expectation when the oil price goes up in the global market.
UK-based Aminex Oil and Gas Production and Development Company it is.
If Aminex was a person, its nickname would be “The Survivor” for its ability to sustain itself during uncertain market conditions and remain active in Tanzania despite the global industry crash from 2014 to 2016, and its ability to continue pushing its Tanzania’s project despite the current oil market condition.
Last year, the completing the Farm-Out remained a primary focus of the company. The company submitted the 2020 Work Programmes and Budgets for all licences to the Tanzanian authorities for approval.
In May 2019, the company announced that it has received the long-awaited extension of the Mtwara Exploration Licence. This is a giant milestone for the team at Aminex.
The company also signed a farm-out deal with Zubair Corporation’s associate, Ara Petroleum Tanzania Limited.
The company will not only benefit from financial input but also from the experience of personnel of Ara Petroleum Tanzania Limited.
With the growing power demand in Tanzania, the presence of the Chikumbi-1 drilling project means additional gas supply to the region.
The Drilling of the Eagerly-Awaited Chikumbi-1 Well
While oil-and-gas companies love talking about seismic wireline logging, aeromagnetic surveys and all other boring stuff, investors love to see drilling.
My analysis is that, step-by-step, day-by-day, Aminex is moving closer to the drilling event and becoming another gas producer in Tanzania meeting the ever-growing demand in the region.
We hope to witness Aminex and Ara Petroleum announce the drilling programs of Chikumbi-1 well as the company continues to remain active in Tanzania despite the global oil-and-gas industry downturn.
And who knows? Hopefully, my next publication will be “Aminex and Ara Petroleum hit significant gas reserves in Tanzania.” It would be great for all participants in the oil-and-gas sector.