Tag Archive for: OIL AND GAS

Connection for New Natural gas Pipeline from Mtwra will Led To Electricity Blackout

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MANY parts of the country connected to the national grid will experience electricity blackout on Monday as all gas-powered turbines will be switched-off to pave way for connection of the new natural gas pipeline from Mtwara.
The Tanzania Electric Supply Company Limited (Tanesco)’s Managing Director, Engineer Felchesmi Mramba, said the power interruptions will persist for the rest of the week though on smaller extent.
“For the whole of tomorrow (today), gas fired plants will be turned off to allow technicians to connect the new pipeline to new plants at Ubungo,” Engineer Mramba said after a brief tour at Kinyerezi 1 and Ubungo gas plants in Dar es Salaam.
The new plants to be supplied with gas from Mtwara include (Symbion 112MW) and Plant number 2, both at Ubungo area as well as Kinyerezi 1 (150MW).
Plants to be affected by the shut down tomorrow are those supplied with gas from Songo Songo and they include Songas (184MW), Ubungo Plant number 1 (100MW) and Tegeta plant (45MW).
The power-utility boss said the power interruptions are expected to last, though on smaller extent, until September 15, when installations work will be completed.
Natural gas discoveries in Tanzania stand at over 50 trillion cubic feet (tcf) and the resource produces over 40 per cent of power supplied to the national grid while hydro-power and diesel-fired plants account for the remaining percentage.
As the country focuses on gas for power generation, the Tanesco boss assured the public of reliable power and stable prices.
“I would like to apologise to our customers for the interruptions they will face during the next one week but, thereafter, the country will have reliable electricity,” Engineer Mramba noted.
Earlier, the Managing Director of the Tanzania Petroleum Development Corporation (TPDC), Dr James Mataragio, explained that as of yesterday, transportation of gas from Madimba Processing Plant in Mtwara has clocked 3 bars.
“For power generation to commence, we require between 50 and 55 bars of natural gas, which will be realised in the next one week since we are still pumping gas in the pipeline,” Dr Mataragio stated.
With the use of natural gas for power production, the country is expected to save almost one billion US dollars (about 2 trilion/-) which has been used to purchase fuel to operate diesel-powered generation plants.
Construction of the 532-kilometre gas pipeline from Mtwara to Dar es Salaam is expected to allow the country to double its power generation capacity to 3,000MW by next year and the government looks forward to boost the capacity to at least 10,000MW by 2025.

See Why Discovery of Natural gas in Tanzania Could not bring Too Many Jobs To Tanzanians as they believe

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Few weeks ago i got  the text from Tanzanian  who
is studying Petroleum engineering in among  of university in China, He was curious to know  about the
employment opportunity in natural gas sector in Tanzania? And this is why  i am writing this article.

You know many people believe the
discovery of natural gas could give Tanzanians millions of job opportunities,
they think, their sons, relatives or themselves can be  employed in 
natural gas industry.This  is definetly  untrue. So to day, this article    will clear up  this 
common misconception
Oil and gas sector is highly capital
intensive industry with risky operations. And Due to the investment of high
capital, the oil companies do not prefer to have a large number of employee in
order  to make reasonable profit. In the currently
findings released by Twaweza organization in a research brief tittled “Great
expectation citizens views on the gas sector” shows that, average citizens
expect four millon job opportunities from natural gas industry. Their expectation
 is beyond of the real situation. Tanzanians can find an example of country like Norway, though of its massive discovery of natural resources,  they  have only 240,000  employee  in their  gas sector. 

You can imagine, Tanzanians expect four millions job in gas sector while Norwagians who currently employed in gas sector is only 240,000. I hope you will agree with me that, the perception of many Tanzanian citizen to get job in gas sector is unrealistic. 
MY FINAL WORDS
 Citizen might be be
employed in this sector, but is not at large number  as many citizens
believe, few people they could get employment and not many of them. This is
the right time for Tanzanians to be aware on this particular matter.

Ministry Of Energy To Set Up Special Local Content on Oil and Gas Sector

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The Ministry of Energy and Minerals plans to set up a special local content on gas and oil unit to enable the public easily access information on various issues concerning the sector.
Senior Supplies Officer (Local Content) at the Ministry of Energy and Minerals, Ms Neema Lungangira made the revelation in Dar es Salaam during a seminar organised by Twaweza Organisation to present and discuss the report titled ‘Great Expectations On Gas Sector And Relevant Policies’.
“Government through the ministry is setting up various strategies to enable the citizens fully participate in the oil and gas sector and one of the strategies is the establishment of the special local content unit,” she said.
Among the issues to be tackled under the unit will include public awareness creation, providing knowledge of public participation in the sector.
The unit will be established under the local content policy and will focus on the providing information from the key document on the sector.
According to the report presented by Twaweza at the seminar, citizens do not have access to full information about Tanzania’s gas sector.
Presenting the report, Executive Director of Twaweza, Mr Aidan Eyakuze said that 53 per cent of citizens think that gas from the new offshore discoveries is already flowing with some thinking that both government and foreign companies are already earning revenues from the gas.
The report based on data from ‘Sauti za Wananchi’ Africa’s first nationally representative high frequency mobile survey also indicate that citizens expect four million jobs and 7.5m/- each from gas deposits.
The report which shows that citizens are significantly misinformed about the potential of the country’s deposits, show that 59 per cent of citizens think that natural gas deposits will improve their lives and a similar (58 per cent) expect government to invest gas revenue into public services.

See Why in Tanzania there is the biggest increases in Demand for Natural gas

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The
aboundance of natural gas reserves in Tanzania  attracts many investors , contractors,
equipment suppliers  and consultant firms
to offer business opportunities  in
Tanzania.  This  implies that, natural gas will continue  to play an increasingly important role in
meeting demand for energy in Tanzania.
       There are many reasons for the long term
expected  increase in demand for natural
gas in Tanzania, which include the following.
1.Increase
 in the number of  New homes
New
homes increase day after day, family size increase as well, as these new homes built,
the consumption of natural gas mounts, and the number of families use natural
gas to cook and heat them also increase.Therefore increase of new homes using
natural gas is expected drive demand for Natural gas in Tanzania.
2.Expansion
of gas based power generation
The
largest addition to gas demand in Tanzania where the most of expansion of power
are taking place.  forexample the
construction of kinyerezi 1 gas fired power plants, they will be supplied gas
from Mtwara through Mtwara-Dar es Salaam pipeline, So more gas will be needed
to meet the demand as the result of natural gas demand increases.
3. Technological
Advancements – Currently, the majority of energy used by the commercial
sector is in the form of electricity. Similarly, many common household
appliances can only run on electricity. The advancement of natural gas
technology in the form of offering natural gas powered applications that may
compete with these electric operated appliances may provide a huge increase in
demand for natural gas. Natural gas cooling, combined heat and power, and
distributed generation are expected to make inroads into those applications that
have traditionally been served solely by electricity.

Transportation
Natural
gas use in transportation are almost negligible.Although natural gas powered
vehicles are very useful for reducing environment pollution compered to fuel
powered vehicles. The demand for alternative vehicles fuel vehicles (Including
natural gas vehicles) will increase demand in natural gas. Although to
accomplish this, technology is required.

MY
FINAL WORDS
This
general increasing of natural gas demand in Tanzania can be expected to the
general growth of economy of Tanzania and improving living standard of
residents.
Dear
readers we would love to hear your views on all of these

Swala Gets Extension to its Kilosa-Kilombero, Pangani Licenses in Tanzania

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Swala Energy Limited (Swala or the Company) reported Monday that the Tanzanian Ministry of Energy and Mining (MEM) has agreed to extend the period within which an exploration well must be drilled in each of the Kilosa-Kilombero and Pangani licenses in Tanzania to Feb. 20, 2017. This one-year extension is to be deducted from the 4-year additional exploration extension period currently due to commence Feb. 20, 2016, resulting in the additional exploration period having a duration of three years.
Under the Production Sharing Agreements (PSAs) that govern activity on each of these two licenses, the Joint Venture (JV) was originally obliged to drill an exploration well in each license by Feb. 20,. 2016. The JV carried out a seismic survey that was completed in December 2014 and in the same month the JV and the Tanzanian Petroleum Development Corporation (TPDC) agreed to carry out the processing and interpretation of the seismic data during the first half of 2015. This left relatively little time in which to confirm drilling locations and secure long lead-time items, and the JV therefore requested TPDC and MEM to allow it to complete its exploration drilling obligations in the next exploration phase. Both entities have now consented to this modification.
Dr. David Mestres Ridge, Swala CEO, said: “The joint venture has been actively preparing to drill the two licenses and we are grateful to MEM and TPDC for their pragmatic flexibility in respect of the drilling timetable. In June, Swala Oil and Gas (Tanzania) plc appointed an Operations Manager with responsibility for the drilling campaign and it is in the process of engaging a consultant to carry out the Environmental Impact Assessments for the drill locations. In parallel, it has been further interpreting the seismic data so as to optimize those eventual drilling locations. The extension of the time limit for completing the exploration drilling allows the JV to continue its preparatory work with the comfort that all steps are being taken to maximise the chances of success and minimise costs whilst not compromising on either health, safety or environmental integrity.”


Maurel & Prom Eyes Further Merger After MPI Deal To Cope With Low Oil Price

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 French energy exploration and production company Maurel & Prom said it was reabsorbing its former Nigerian unit MPI as a first step towards tripling in size to cope with the impact of a plunge in the oil price.
Maurel & Prom said on Thursday it was buying MPI in a deal that would give MPI investors one Maurel & Prom share for two shares held. MPI would also pay a 0.45 euro exceptional cash dividend per share before the merger.
Chief Executive Jean-Francois Henin said on Friday that the group would work intensively in the coming weeks to secure another deal with a competitor of its stature.
“Companies the size of MPI, or MPI plus Maurel & Prom, are no longer big enough to remain independent,” Henin said. “We can survive, but in terms of the future for our shareholders, it’s 
absolutely necessary to build a larger, more diversified group.”
Maurel & Prom and MPI face a tough macroeconomic environment following a 60 percent drop in oil prices in the last year. They see expansion as the route to better access to financing and greater opportunities for external growth.
“Everyone is talking to everyone, because everyone feels the same need,” Henin said. “All players in the sector today are considering how to combine forces with someone else and what are the best possible combinations.”
The world’s top oilfield services provider, Schlumberger , said this week it would buy equipment maker Cameron International for $14.8 billion to offer a broader range of products at lower prices to oil companies slashing budgets.
Its rivals Halliburton and Baker Hughes announced a $35 billion tie-up last November.
Maurel & Prom said the MPI deal, due to be completed in December, would add Nigeria to its operations in Gabon and Tanzania, giving it presence in three key sub-Saharan oil and gas countries. MPI also had a “strong cash position” with no debt, it said.
The combined company would have an enterprise value close to $2 billion, the industry’s fourth largest after Tullow Oil, Premier Oil and Genel Energy, or the fifth-biggest by market capitalisation, Maurel & Prom said.
The deal was unanimously approved by the boards of Maurel & Prom and MPI, and will be put to a shareholders’ vote in December.

Aminex reported a loss of $0.61 million for the six months ended 30 June 2015 – updated Tanzania operations

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Aminex has announced its half-yearly report for the six months ended 30 June 2015 and provided an update on its operations in Tanzania. The loss for the period was $0.61 million compared with $4.74 million for the six month period ended 30 June 2014.

HIGHLIGHTS: 

FINANCIAL

$2.45 million (net of expenses) equity issue successfully completed
Completion of sale of 6.5% interest in Kiliwani North Development Licence for $3.5 million to Solo Oil plc
Corporate loan facility extended until 31 January 2016
Loss for period $606,000 (2014: $4.74 million)
Ongoing discussions with financial institution for provision of development capital for Ruvuma and restructuring current debt facility 

OPERATIONAL

Competent Persons Report assigns 98 BCF gross (70 BCF net) Contingent Resources to Kiliwani North-1 and Ntorya-1
Gas Sales Agreement expected to be signed with first gas from Kiliwani North in Q3 2015 
Ongoing planning for Ntorya-2 and Ntorya-3 appraisal drilling to deliver near term revenues
Nyuni Area PSA work programme varied and deferral of drilling obligations approved by Ministry of Energy and Mines
Sale of Egyptian interest into a royalty position in August 2015 

Aminex CEO Jay Bhattacherjee commented: 

‘Aminex is looking forward to first gas production from Kiliwani North within the current quarter in line with the timetable issued by the Tanzanian authorities following the commencement of production into the new main gas pipeline in the south of the country. The signing of the Kiliwani North Gas Sales Agreement, expected in the near future, should also assist the acceleration of the Company’s other activities, particularly appraisal drilling at Ntorya. Your Board believes that the steps we are taking will be significant for the growth of the Company and underline its strategy to focus on key assets in Tanzania, ever seeking new production and development opportunities. We are grateful for the continuing support of our shareholders and we look forward to providing positive updates in due course.’

TANZANIA’S KILIWANI NORTH GAS AGREEMENT TO BE SIGNED IN Q3 2015

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Production from the Kiliwani North Field could start in 2015 with the Tanzanian authorities having advised that production should start within Q3 2015 now that the main pipeline has been pressure tested and with the Gas Agreement expected to be signed this quarter.
The completion of a Gas Sales Agreement (GSA) is subject to finalizing satisfactory payment protection guarantees and, following the recent start of production into the pipeline in the south of the country which Aminex says it believes that a GSA should be signed in time to achieve the near-term production timetable advised by the Tanzania Petroleum Development Corporation (TPDC).
According to the latest half year report released today the company also believes that the agreement will help increase the pace at Ntorya appraisal wells.
“Aminex is looking forward to first gas production from Kiliwani North within the current quarter in line with the timetable issued by the Tanzanian authorities following the commencement of production into the new main gas pipeline in the south of the country. The signing of the Kiliwani North Gas Sales Agreement, expected in the near future, should also assist the acceleration of the Company’s other activities, particularly appraisal drilling at Ntorya,” says Aminex CEO Jay Bhattacherjee.
Kiliwani North where Aminex holds 65% withholding interest through its Tanzania subsidiary Ndovu  Resources is close to the producing Songo-Songo gas field and new gas processing and transportation facilities and is only awaiting the signing of the gas sales agreement to sell gas to the market.
Other partners in the Joint Venture include Solo Oil which it recently offloaded to 6.5% of KNDL for $3.5 million having received formal approval from the Tanzanian Authorities to sell up to 13% of its interest in Kiliwani North Development Licence (KNDL) to the company.
As per the last a technical evaluation on the resources of Kiliwani North Development Licence by Senergy, an independent oil and gas consultancy firm the PSA PMean Gas Initially in Place (GIIP) of 44 BCF (gross) of which 28 BCF (gross) booked as Contingent Resources (Best Estimate, 2C)
 
As a result of the share placing in June 2015, the Company says ithas sufficient funding for the current level of operations.

Maurel & Prom started production at the Mnazi Bay gas field in Tanzania

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Maurel & Prom (operator, 48.06% interest) on Thursday opened the first two wells of the Mnazi Bay gas field that will deliver the Madimba processing centre (operated by GASCO, a subsidiary of TPDC), the entry point of the gas pipeline linking Mtwara to Dar es Salaam. 
This production output will initially be used solely for commissioning operations for the new TPDC/GASCO facilities, but is then expected to ramp up rapidly to 70 million cubic feet per day with the connection of two additional wells in October 2015. A production capacity of 80 million cubic feet per day is expected by the end of the year. In the next few months, Maurel & Prom will analyse how the production output and reservoirs are behaving, and given the encouraging results from the MB4 well drilled in the first half of 2015 would define an additional production capacity. 
Under the Gas Sales Agreement signed on 12 September 2014, for which financial guarantees are now in place, the sale price has been set at US$3.00 per million BTU, or around US$3.07 per thousand cubic feet, rising in line with the US CPI industrial index. 
Maurel & Prom went into Tanzania in July 2004 with the Bigwa-Rufiji-Mafia permit in which it holds a 60% interest. In 2009, it strengthened its position with the acquisition from Artumas of the Mnazi Bay permit, in which its operated interest is 48.06%. 
The Mnazi Bay permit is governed by a production sharing contract dating from 18 May 2004. The development licence was granted on 26 October 2006 for a 25-year term, renewable once for a further period of 20 years. Royalties are 12.5% and are covered by TPDC under the terms of the agreements in place. Cost Gas, the share of production output allocated to the recovery of past costs, is 60%. Unrecovered past costs for Maurel & Prom amounted to US$152 million as at 30 June 2015. Profit Gas payable to Maurel & Prom is 30% (% for a production over 10 MMcf/day). 
In 10 years, Maurel & Prom has built a strong reputation as an onshore oil operator with the Tanzanian authorities and local players. The Group is known for being a forerunner in an area that is thought to have very significant gas potential. This new contribution to the Group’s cash flow, a stable long-term addition to its income from Gabon, is a step in the implementation of Maurel & Prom’s growth strategy and cash flow source diversification.

One Simple thing to Keep in Your Mind and It will help You To Work In Petroleum Industry

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 Petroleum industries require personnel with
diverse academic background, It involve
both technical personnel (such as enigineers , land survey, geomatics)
and non technical personnel ( such as
Lawyer, human resources accounting marketing environmental and safety, banker,
transportation, security insurance and so on.)
You as a Lawyaer or accountant you
might  be interesting to join or make
career change into oil  and gas
industry or for those with engineering background unrelated to oil and gas
industries or no field experience but you
would like  to join into this
industry. To day I will share with you one thing in order to help you join into
petroleum industry.
Lets go,
Generally, company  would  hire you and train you,  even though the company need people, it does
not mean they  would like to start  completely from scratch. This applies to both
technical and non technical personnel. The Company would need some who having
understanding of petroleum field.  You should have a basic knowledge of petroleum industry.To increase chances to get your dream  job  in
petroleum industry you must having a basic understanging of terminology of oil
field such as a word HYDROCARBON and
so on.
What you have To do?
As we have already seen above, for
those with courses unrelated to oil and gas industries like  electrical engineers and accounting, they
must have basic understanding of this petroleum industries in order to join the
industry. May be you ask yourself. “How  i
would manage to know all of these basic concepts in oil and gas industry. The
answer is very straight forward. A great way for you to satand out is would be
to learn that on your own time.With these information age  you can learn any thing you want to learn,
you can know any thing you want to know. Now days every thing is on the internet,
you can learn millions of things simply by touch your mouse or mobile device.
MY FINAL WORDS
If you don’t know where to start and
you are willing to learn the basic of petroleum industries, you should contact
me through Boffuhussein@gmail.com,
and i am going to show you the area where you will find those stuff

 

Dear readers, We would love to hear
your views on all of these