Tag Archive for: oil and gas news

Could Tanzania’s Gas Lift Citizens Out Of Poverty

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Across Tanzania, the abundant natural gas  is underway. New exploration, new discovery. And Tanzania’s gas have become a powerful magnet for foreign investment. Luck has definitely struck Tanzania. And this represents huge opportunities to improve citizens’ lives.

Tanzania is poised to emerge as a major exporter of natural gas. And the bottom line is that, the region surrounded by countries with heavy energy needs. It is indefensible that Tanzania stands to harvest abundance from its natural gas.

But How can natural gas resources contribute to general citizen uplift and power economic growth.

Natural gas means solving energy’s problem. Electricity to everyone. And clean cooking facilities that  do not pollute household  and change climate through deforestation.

Writer’s recommendation to transform new found resources wealth into permanent breakthrough in human development.

Strengthen transparency.
Transparency is good for business. It reduces opportunities for corruption. Build trust with local communities. And encourage both companies and citizens that system is fair.It encourages long term success because it show companies have nothing to hide and the deal is fair.
Create More Jobs
In reality, oil, gas and mining create a small share of jobs because it is capital intensive. But generate employment is critical issue for Tanzania to reduce jobless growth especially youth unemployment. And bring hope to the future generation. Country could not sustain growth while extractive and exploration projects operate within our border without value added
Tax avoidance:
Either from oil majors or foreign investment. But to tackle tax avoidance is vital as it reduces the loss of money and citizens see the benefit

Conclusion

We have all seen in New petroleum act, Government, requires extractive companies to procure goods and services locally. And commitment from multinational to contribute to society and infrastructure improvement.

In Essence the government cannot resolve all of these challenges on their own, private sectors and stakeholders must also shoulder responsibility.

                                                                    Hussein Boffu

                                                   Husseinboffu@Tanzaniapetroleum.com

                                                                  0655 37 65 43

I see You In Gas Business

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Tanzania has discovered  approximately  57 trillion cubic feet of natural gas. This include 2.17 trillion cubic feet announced by United  Arab Emirates’ Dodsal Group in february  2016.

 

I foresee emerging and Young Gas Millionaire.I see Mass Employment. I see more than 50,000 lives saved from hazardous  kerosene and fire wood method of cooking. I see significantly increased LPG Consumption. I see  diversification of the mix of LPG applications. Car riding on gas, Generator powered by gas.

 

I see diversification of customer types distribution model. I see increased in LPG sector. economic and Capacity development.

I see distribution and retail  diversification.I see increased supply chain stability. I see diversification and expansion of types in the supply chain. I see growing confidence in LPG, LNG including safety.

 

So. what’s stopping You?

You just leave money on the table.

Tanzania Agrees With Uganda to Run Oil Pipeline to Its Coast

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Tanzania and Uganda’s leaders agreed to build a crude pipeline linking their countries, connecting landlocked oilfields to the Indian Ocean, Tanzanian President John Magufuli said.

Statements issued after Ugandan President Yoweri Museveni and his Tanzanian counterpart John Magufuli met on Tuesday did not mention the fate of the Kenyan oil export pipeline plan.

Uganda, which has yet to start oil production, raised the possibility of a Tanzanian pipeline route last year.

France’s Total, one of the oil firms developing Uganda’s fields, had raised security concerns about the Kenyan route. A Kenyan pipeline could run near Somalia, from where militants have launched attacks on Kenya.

But industry officials have also said connecting Kenyan fields, which are also yet to start production, with those in Uganda would make the pipeline project cheaper as costs would be shared.

“The two countries are planning to build an oil pipeline between Tanga (in Tanzania) and Uganda covering a distance of 1,120 km,” the Ugandan presidency said in its statement. “Magufuli said this is projected to employ 15,000 people.”

Also Read:Tanzania Make New Natural Gas Discovery In Ruvu Basin

Tanzania, which also has large offshore natural gas reserves, issued a similar statement.

Uganda’s Museveni has strong ties with Tanzania as he launched the rebellion that brought him to power in 1986 from Tanzanian soil.

Uganda’s statement quoted Magufuli saying that Uganda’s decision was “reciprocating” Tanzania’s past role.

Museveni and Kenyan President Uhuru Kenyatta had made a joint call in August to implement a pipeline via Kenya’s northern region “without further delay”.

But that statement was followed by other Ugandan comments saying the Tanzanian route was being explored as a possibility.

Resolving the pipeline route is vital in helping oil firms involved in Uganda and Kenya make a final investment decision on developing oil fields.

Production start dates have repeatedly been postponed, partly over pipeline considerations but also because of low oil prices.

Other investors in Uganda include China’s CNOOC and Britain’s Tullow Oil. Tullow is also is working in Kenya.

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Tanzania Make New Natural Gas Discovery In Ruvu Basin

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Feb 25 Tanzania has discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits, raising the east African nation’s total estimated recoverable natural gas reserves to more than 57 tcf.

The onshore reserves were found at a field licensed to the United Arab Emirates’ Dodsal Group located at Ruvu basin in Coast region, near the country’s commercial capital..

“We have learnt that there are huge potentials of hydrocarbons in Tanzania. We expect to have more gas discoveries in the near future,”  CEO of Dodsal Hydrocarbons and Power (Tanzania) Ltd, as saying.

East Africa is a new hotspot in hydrocarbon exploration after substantial deposits of oil were found in Uganda and major gas reserves discovered in Tanzania and Mozambique.

Dodsal Chief Executive Officer (CEO) Mr P.K Surendran made the announcement during a meeting bringing together investors in the gas and oil industry, which was convened by the Minister for Energy and Minerals, Professor Sospeter Muhongo.

Prof Muhongo confirmed the discovery, which he said was made in July last year, but was quick to add that the government delayed to make the announcement due to new requirements of the Petroleum Act 2015.

“The new legislation requires that before the responsible minister makes the pronouncement of a new finding he/she should be guided by the Petroleum Upstream Regulatory Authority (PURA).

“My ministry has been in contact with the Attorney General’s Chambers since then and the good thing is that PURA started operations yesterday (Tuesday).

We, therefore, hope that the official announcement will be made in a few days to come,” Prof Muhongo explained. The Petroleum Act 2015 repealed The Petroleum (Exploration and Productions) Act, 1980 and The Petroleum Act, 2008.

Apart from the new finding, gas reserves have as well been discovered in Songo Songo Island in Lindi Region, Mnazi Bay in Mtwara and Mkuranga in Coast Region.

Mr Surendran said the company signed a Petroleum Sharing Agreement (PSA) with the Tanzania Petroleum Development Corporation (TPDC) in 2007 after which it started a seismic study of the licensed block. Dodsal Hydrocarbons and Power Tanzania Limited is a subsidiary of Dodsal Resources based in Dubai.

So far, the firm has drilled three wells at Mbuyu, Mtini and Mambokofi in the exploration area in Coast Region. “Exploration is still ongoing and we are optimistic of striking more natural gas reserves in the Ruvu Block.

We used local talents and resources in the search and the success is beyond our expectations,” he later told ‘Daily News’ on the sidelines of the meeting.

He was more positive of reliable market for the hydrocarbons given the fact that Ruvu is just 17 kilometres away from Dar es Salaam city, which is the major market of the resource for electricity generation, industrial production and domestic use.

The Chairman of Dodsal Group, Dr Rajen Kilachand, said the company is currently planning appraisal and development activities to bring the gas to the market for the benefit of the people.

“At this moment of success, I wish to sincerely thank the Ministry of Energy and Minerals and TPDC as well as other stakeholders for the cooperation and support rendered to us,” Dr Kilachand said in a statement read by the CEO.

Earlier, Prof Muhongo directed companies engaged in the oil and gas industry to present to the ministry with practical work plans on how they will play a part in boosting power generation to meet the target of 10,000MW by 2025.

READ: Tanzania-to-rake-in-capital-gains-from-55b-buyout-of-bg-group-by-rival-shell

“The gas economy should make us graduate to middle-income economy by 2025 as stipulated in Tanzania Development Vision 2025. This will be possible when we have adequate and reliable electricity in the economy,” the minister stressed.

He thus urged the companies to present the plans to the ministry by June 1 this year, noting that the aim is to enhance power per capital to between 2,000 and 3,000 per annum from the current 180 units.

Prof Muhongo noted on the other hand discussions with a consortium planning to set up the 60 billion US dollars were well underway

Most of the gas discoveries in Tanzania were made in deep-sea offshore blocks south of the country near the site of a planned liquefied natural gas (LNG) plant.

BG Group, acquired by Royal Dutch Shell, along with Statoil, Exxon Mobil and Ophir Energy plan to build the onshore LNG export terminal in the southern Tanzanian town of Lindi in partnership with state-run Tanzania Petroleum Development Corp (TPDC).

List Of Oil and Gas Exploration and Production Companies In Tanzania

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Looking for Oil and Gas Companies In Tanzania? Below are List of International Oil Companies taking part in searching and extraction  of oil and gas In Tanzania.

 

A

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P cont.

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Dear Reader, I’d love to hear from You. Reach me through Hussein.Boffu@tanzaniapetroleum.com or 0655 37 65 43

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TPDC has Got it Done , Journalists Must Pull Up Socks

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Earlier this month, Tanzania petroleum development corporation (TPDC) launced a 2-day workshop held at Karimjee hall Dar es Salaam with aim to improve capability of Reporter in composing and reporting about oil and gas industry

Perhaps Tpdc has been done an awesome job and performs their positions in developing the potential to the journalists on the most proficient method to write for oil and gas areas.

It simple to think following two days seminar you have increased every single vital ability to write for oil and gas industry convincingly.That is the misguided judgment. Why? here’re answers

Oil and gas area language:

When we discuss writing for oil and gas market indicates having a specific knowing of terminology used in oil and gas area.

The market has exclusive terminology each achievements writers must know. Do you realize these terms: downstream, upstream midstream, do you really Know the distinction between IOC and NOC? Farm out?

Downstream represents procedure for getting oil and gas out of the ground also know as exploration and production.
Midstream actions include in transport of oil and gas from point A to B, Consider direction tankers, and truck

Downstream actions cope with handling raw oil into completed items as well as marketing and selling of oil products, consider think like refinery, diesel fuel, fertilizer plastic materials and so on

NOC relate to the National oil organizations possessed by the specific govt. For example, TPDC is national oil organization possessed by Tanzanian government. And Statoil is the National Oil Companies claimed by the Norwegian govt.

Also Read:Key Facts You May Not Know About Oil and Gas Industry

Above are few example of primary oil and gas field terminology you must know to create for oil and gas industry.

Highly unpredictable industry:

The global oil price fluctuations can change the whole oil and gas business within brief period of your energy. Instability of oil costs can bring new open doors and also challenges, written work for this industry implies you writing in turbulent field, so effective writers must know about the pattern of the business

Complicated industry:

Oil and gas industry has wide range than some other field on the planet from exploration > extarcting> processing > transportation > selling. To write in oil and gas industry, you should know how the oil and gas business work.

How to become successful writers for Tanzanian oil and gas industry.

Writing for oil and gas organizations are quite different from another industry.However, there are few wish journalist and Tanzanian who wish to compose about oil and gas market to put into consideration as there are rapid growth of expectation among Tanzanians in the industry and us ass writer  (Tanzanians) we are accountable for moderate-high amount anticipations through our pens.

And the best news is that You don’t should be science understudies to compose for oil and gas industry. Anyone can turn into an effective writer for oil and gas field, what you need is:

  1. Interest
  2. Desire
  3. Commitment
  4. Specific information

Fall in love with long learning
In the wake of composing 3 – 5 articles you might think you have officially aced writing in oil and gas industry.

It simple to think following 2 days prepared from TPDC you have turned into a specialist.

Be that as it may, this is truly false ideology.You need to build up the propensity for long lasting learning. Resolve each day to learn about oil and gas industry.

Perused articles, books and everything concerning this industry. In this manner, you turn into effective writers in this field and additionally have numerous thoughts to expound on

Do your Homework
Visit various web page of oil organizations, especially those working in Tanzania.subscribe to their publication and comprehend the pattern of the oil and gas companies.

Final Word
Writing for oil and gas areas is not hard as it looks though it could be challenging if you take the market as the identical to other sectors.

Dear Reader, I’d love to hear from you.Reach me through Hussein.Boffu@tanzaniapetroleum.com i will back to you shortly.

Step by step instructions to Make Endless Money In Oil and Gas During Times Of Low Oil Prices

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Something change the entire oil and gas business, Guess what? The Oil prices recession. Your clients don’t listen to you.They are sad with low oil price. They don’t pay attention to your products and services.

Feel frustrated under the present environment on the most proficient methods to draw in clients and supply numerous items and services to the oil and gas industries?

Don’t worry, plenty people face the same battle in bad times of low oil costs. .

However, it may be the awful times for others yet for you is the chances to develop prosperity in the oil and gas industry.Why? In light of the fact that each oil costs drop accompany chances to profit.

Here’re are tips to profit during circumstances such as the present

Listen to your clients
Your clients think on the best way to manage the low oil costs, they get rid of what don’t work.They laid off laborers, they purchase only imperative items to adapt to the late condition.

So on the off chance that you present the products that save cash, you would offer like insane to the oil and gas segment. Your solution that fits oil and gas firms needs to minimize cost, you will assemble a decent association with your clients in this seasons of downturn as well as whatever is left of your business.

Also Read:Effective Way To Attract High Paid Clients In Oil and Gas Market

Fix what they don’t know
Oil and gas firms may have an issue that didn’t know they had, Offering items and arrangement meet your customers needs that have ever considered they have. In this way, you items and solution will get consideration than common and profit.

Do unexpected

Your rivals are right now brimming with apprehension and uncertainty due to the low oil costs, they are questionable with the present environment. To profit supply items and administrations that can not mimic as a result of the fear of getting lose or uncertainty of the economic situation.

Concentrate on downstream and midstream of the business

Presently Downstream industry is blasting, begin to consider offering items and solution that settle the issue into either midstream or upstream of the business to adapt to low oil costs.

Final word
Now is the right chance to grow your business or company, is the time earn a lot of money investing in oil and gas industry.Why? Because opportunities are up, Your business will grow faster in this time if you have products that help oil and gas firms to save money and time.

Kenya Eyes Oil Export In 2017 via Truck and Railway

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Kenya is considering moving its crude oil to Mombasa by road and railway as President Uhuru Kenyatta’s administration races to hit export markets before the General Election set for August next year.

The Energy ministry has offered Rift Valley Railways (RVR) the contract to move the oil over a distance of more than 800km, from Eldoret to the Kipevu-based Kenya Petroleum Refineries  (KPR) from as early as February next year.

By choosing trucks and train, Mr Kenyatta’s administration appears determined to sidestep bureaucracy involved in constructing a joint pipeline with Uganda in an effort to beat its tight timelines.

“We are quite ambitious but we know we will be able to pull this off in the next 12-16-month window,” said the head of Presidential Delivery Unit Nzioka Waita.

“And as we speak, work has been done to improve the road network from Lokichar to Lodwar and from Lodwar to Kapenguria to increase the shoulder size to allow trucks which carry crude oil to convey it to Kitale and subsequently to Eldoret,” Mr Nzioka said in a presentation made during the Governors’ Summit last week.

The upgrade of the 213km- road from Lokichar to Kitale has been top of the government’s agenda as it looks to facilitate the quick transport of crude to an export terminal in Mombasa.

Kenyan officials also appear to be keen on sidestepping the long process of constructing a joint crude oil refinery under discussion with Rwanda, South Sudan and Uganda.

The joint projects were supposed to be built in public-private partnership model.

South Sudan is embroiled in civil strife since 2013 while Uganda has in recent months been preoccupied with political campaigns that culminated into Thursday’s election.

Uganda, which aims to start crude production by 2018, recently signed an agreement with Tanzania to explore the possibility of building a crude oil pipeline between the two countries.

Although Uganda had agreed to the Kenyan route, it said Nairobi had to guarantee security for the pipeline, along with financing and cheaper fees than alternatives.

Settling for a route through Tanzania could slow some projects in Kenya, which are planned to run alongside the pipeline on the land corridor in the North of the country to Lamu, where Kenya wants to build a new port to serve the region.

“We are now trying to refurbish Kipevu plant– which has only been bringing petroleum in – to take petroleum out,” said Mr Nzioka.

“At the Kipevu plant, they’ll do what they call first line refinery and then take that into the export market.”

TPDC Fertilizer Plant To Provide 5000 Direct Jobs And Opportunities For Construction and Building Players

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The Tanzania Petroleum Development Corporation has announced that it will invest in a fertilizer plant to be set Kilwa division Lindi district German investors Ferostaal Industrial Project GmbH at a cost of $1.9 billion.

TPDC says it is the government’s plan to support companies investments in the extractive sector with the plant expected to produce 3850 tonnes of fertilizer daily.

According to TPDC Director for Production, Processing, Transport and delivery of natural gas  Dr. Wellington Hudson who met representatives from Kilwa, Lindi  the joint venture will utilize 104 million cubic feet daily and will produce two types of fertilizer namely ammonia and urea.

Also Read:.The Ultimate Guide To Invest In Tanzania’s oil and Gas Sector

TPDC through its managing director Dr. James Mataragio adds that the plant will provide 5000 direct jobs as well as opportunities for players in the building and construction industries who will provide the needed raw materials.

The project is also expected to increase earnings for the corporation through consumption of natural gas while at the same time provide opportunities to better sectors such as health, aviation, sea ports among others.

They were both speaking at a familiarization and community awareness tour in Kilwa that saw representatives including the area members of parliament, district commissioners and heads of various committees including security attend with the aim of ironing issues related to the project.

Since the discovery of natural gas in Tanzania the economy has witnessed tremendous growth with 70% of power generation coming from gas which is currently serving 37 industries in Dar es Sallam according to TPDC.

What To Expect From Petroleum Courses in Tanzania

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Petroleum Courses In Tanzania

Despite the fact that Tanzanian gas sector is in infant level but a lot have been done by government and its relevant ministries to develop local skills needed to handle our new found resources.These days we have many educational institutions offer petroleum related programs.

However, there is a significant gap between the kinds of graduates that universities are delivering and what oil and gas companies needs? Have you ever considered why this happen? Here’re challenges:

Read Also:Tanzania Oil and Gas Industry And What You need To Know To Participate In This rewarding Sector

According  to the Norwegian Agency for Development cooperation (NORAD)’ need assessment revealed that  University training in oil and gas in Tanzania is confronted with the following challenges: Concentration on upstream(exploration and production activities) not including downstream and midstream operations such as storage transportation, shortage of qualified teaching staff, absence of laboratories and equipment and preponderance of theoretical orientation.

Let face them

Courses Concentrate on upstream activities ( exploration and productions)
Many petroleum courses offered in Tanzania relies on teaching students on how to search and getting oil and gas out of the ground. But the courses are far taken off  downstream and midstream fields where students would gain insight on refining transportation and marketing oil, and gas.

Think courses like petroleum engineering, petroleum geology, petroleum geoscience and so on

Lack of trainer with practical experience related to Oil and Gas Sector
The fact is that, In petroleum industries experiences is vital than the level of education  some one posses
Why?,Having practical experience means you have met with many challenges and you know how to work on it. Instructor with theoretical information and absence past work experiences in oil and is very hard to deliver and make students have a clear idea about oil and gas sector.

Theoretical Orientation
Lack of laboratories, equipment, and industrial practical training relevant to petroleum industries is another challenge in petroleum courses in Tanzania
What do we expect from this trend?
Under this environment job in international oil companies won’t be for every Tanzanian due to incompetency.
Some graduates should have no alternative than to go for extra post graduates oversea universities

Ideally, you say oil and gas companies would give you on the job training to adapt these skills, But trust me nobody love to train fresh graduates from scratch as it cost company millions of dollars to train. Our graduates must be prepared to have skills and knowledge that meet petroleum industries

Opportunities

Despite these challenges Tanzania petroleum courses has benefit to developing Tanzania Local content because
Stimulate jobs
Increase skilled workforce

The writer suggestion on how to Overcome to these challenges

As the oil and gas sector grow at fast rate  than you have ever imagine possible , the writer recommendation  is  to Focusing on high-quality education. How?  This can be achieved through partnership between government and industries

Why? Because it seems the institution that delivers top quality oil and gas education have been doing the same way
Let take Nigeria as a case study.

Nigeria’s institute of petroleum studies is sponsored by Total exploration and production company and state-owned Nigerian National petroleum Corporation.

By doing so, they managed to minimize costs of sending students overseas for petroleum training and them able to produce graduates with skills fits oil and gas industries inside their territories.

                                                                         Dear readers we love to hear from you

         For the further assistance would be thrilled to reach me through Hussein.Boffu@tanzaniapetroleum.com

                                                                        0655 7 65 43 or 0689 95 57 11