3 Suprising Advantages and Disadvantages of Working in Oil and Gas Industry

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Do you really  know working into  oil and gas industry can benefit you than you think?
Do you think there are some disadvantages of working in oil and gas industry?

You are about to learn  excellent  stuff

The articles intend to clarify advantages and disadvantages of working in oil and gas industry:

Lets meet them

                                                       Advantages
   

1:Trip opportunities
If travelling different countries is your dream, oil and gas industry is a perfect career for you.

As the oil exploration and production projects of oil and gas are carried worldwide, oil and gas workers must travel from one project location to another.

As I am writing this article, some of the Tanzanians are in the United Arab Emirates working with oil and gas companies:

Furthermore, Some of these oil and gas activities are conducted on land  and others on deep water you  should get outfitted to work on deep-sea as well

2:Great Salary
I know this is the point of interest for most of you.The fact is that oil and gas industry is the highly paid industry.

If you want to understand the great wealth in oil and gas industry, check out the lifestyle of oil and gas workers in petroleum companies, not to talk with investors themselves.

Technical staff like drilling engineers, field engineers, pipeline operators, geoscientists  petroleum engineers and other technical personnel  are in demand and hence their salaries are very higher.

The most amazing thing in this industry is as the oil prices raise the salaries of employees also rise, which is quite different in other companies or industries.

3:Entertaining and intelligent work
If you are very interesting in brainstorming  and you like to think for yourself and get things done, consider oil and gas industry:

Can you think how hard in controlling the huge pipeline system that passes from Mtwara to Dar es salaam?

Have you ever asked yourself the trouble in seismic interpretation and get the result that decides where to drill the first well?

                                                              Disadvantages

1:Stress and disappointment
Some oil and gas jobs can lead to stressing, you might work even night shift because drilling activities should run 24 hours, working long hours in a harsh environment and staying away from your family and loves one, is a great challenge.

Additionally pipeline operators might experience bad time since pipeline can easily leak, and if that pipeline crosses below nearby the cities, the  native remain at risk,

This is the reason pipeline operators and other oil and gas workers must be trained for safety issues in order to protect environments and their lives as a whole.
2:Health problems
Oil and gas workers  do at very risky, for instance, those who work in refineries for a long time can be induced by harmful chemicals. Also working on the land and deep seas(offshore) is very dangerous

Bonus:  if you want to have great understanding on how is threatening us to work into oil and gas industry, consider BP’s  oil

spills 2010 in the Gulf of Mexico in the united state which result in the death of 11 people in the rig floor and result of Chief executive officer of  BP, Mr     Tony Hyward  was forced to resign

Final Words
To consider a career in the industry you don’t know is wasting of time, before you join in the oil and gas industry you must have a clear picture of difficulties and benefits of the petroleum industry.

Good Luck

Orca Exploration announces closing of US$60 million financing of Tanzania natural gas field development with International Finance Corporation

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Orca Exploration Group Inc. (“Orca” or the “Company”) announces that it has entered into a loan agreement with International Finance Corporation (“IFC”), a member of the World Bank Group, for a US$60 million investment (the “Loan”) in the Company’s operating subsidiary, PanAfrican Energy Tanzania Limited (“PAET”).

Proceeds of the Loan will be used to fund part of an estimated US$120 million first phase of a Songo Songo Main Field development programme (the “Off-Shore Programme”) currently being undertaken using the Paragon M826 drilling rig (commenced in September 2015). The Off-Shore Programme is designed to (i) put safe existing suspended and operating production wells; (ii) restore and increase the current productive capacity of the Songo Songo Main Field to ensure the continued delivery of Protected and Additional gas into the existing Songas infrastructure; and (iii) provide additional operational redundancy and deliverability for future additional gas sales, by way of the workover and recompletion, abandonment or sidetrack drilling of three existing offshore wells, and/or the drilling of additional production gas wells at locations to be determined in the region of the existing offshore wells depending  on the outcome of the workovers. Since programme commencement, previously suspended production wells SS-5 and SS-9 have been successfully worked over and recompleted, and have been restored to full productive capacity estimated to be approximately 35 MMscfd per well.

The Off-Shore Programme is intended to restore and expand field productive capacity from approximately 83 million standard cubic feet per day (“MMscfd”) prior to the programme to approximately 190 MMscfd on completion of the programme. When completed, the field is expected to be capable of both filling the existing Songas infrastructure to capacity of approximately 102 MMscfd, as well as providing additional gas volumes to the newly commissioned National Natural Gas Infrastructure Project (“NNGIP”) as and when contracted.

The term of the Loan is 10-years, with no repayment of principal for the first seven years, followed by a three-year amortization period.  The Loan is an unsecured subordinated obligation of PAET and is guaranteed by Orca to a maximum of US$30 million.  The guarantee may only be called upon by IFC at maturity in 2025 and, subject to (among others) IFC approval, Orca may issue shares in fulfillment of all or part of the guarantee obligation in 2025, subject to receipt of all required regulatory approvals.

Base interest on the Loan is payable quarterly at 10% per annum on a ‘pay-if-you-can-basis’ using a formula to calculate the net cash available for such payments as at any given interest payment date.  In addition, an annual variable participatory interest equating to 7% of the cash flow of PAET net of capital expenditures is payable in respect of any given year, commencing with 2016.  Such participatory interest survives the repayment and/or maturity of the Loan until 15 October 2026.  It is also detachable from the Loan and accordingly can be transferred independently.  Dividends and distributions from PAET to Orca are restricted during the term of the Off-Shore Programme and at any time that any amounts of unpaid interest, principal or participating interest are outstanding.

The Loan is available subject to the fulfilment of certain conditions, which include attending to the registration of the Loan with the Bank of Tanzania and W. David Lyons entering into arrangements, satisfactory to IFC, whereby he will commit (directly or indirectly) not to reduce his beneficial ownership in Orca in a way that would result in him having less than 51% of the voting rights therein.

“The conclusion of the IFC financing is a significant achievement for Orca and an important endorsement of the Company’s continuing commitment to Tanzania,” commented W. David Lyons, Orca Chairman and Chief Executive Officer. “It allows us to raise finance and manage risk in the face of a challenging business environment, and to undertake urgently needed development of the Songo Songo field. It further safeguards Songo Songo’s future as an important part of Tanzania’s energy security.  The World Bank was instrumental in bringing the Songo Songo gas-to-electricity project to reality some 20 years ago and Orca is pleased to continue this long-term relationship, now directly with IFC, in support of the sustainable development of Tanzania’s energy resources.”

“The Songo Songo field is Tanzania’s most important source of proven natural gas production, and is the largest supplier of energy to the Dar es Salaam region” said Lance Crist, IFC Global Head of Natural Resources. “Through this investment, IFC is working to help to alleviate electricity shortages in Tanzania, which are an impediment to the country’s continued economic growth and development.”

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, IFC uses its capital, expertise, and influence to create opportunity where it’s needed most. In FY15, IFC’s long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

About Orca Exploration Group Inc.

Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its wholly-owned subsidiary PanAfrican Energy Tanzania Limited, as well as oil and gas appraisal in Italy. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Price of Oil has now stabilised- Tullow Oil chief executive

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Oil prices have stabilised and a gradual increase is now possible, according to Tullow Oil chief executive Aidan Heavey

Oil prices have stabilised and a gradual increase is now possible, according to Tullow Oil chief executive Aidan Heavey

 

Prices have plunged to historic lows over the past 12 months, a boon to consumers but heaping pressure on Tullow and other producers.

In an interview at an industry event in Cape Town, South Africa, Mr Heavey, inset, said his company won’t change strategy until prices recover.

Tullow “reset” its business early on to weather the price collapse, he said. That included signing up so called “farm-in partners” to help cover costs and reducing outgoings.

The company reduced its oil exploration budget to $200m a year in 2015 but sees that potentially doubling in future.

Its annual exploration spend was $800m in 2014 and more than $1bn in 2013.

Meanwhile, in relation to one of its biggest projects in Uganada, Mr Heavey plans to take a final investment decision (FID) in early 2017, later than planned.

Tullow discovered oil in Uganda in 2006 and had planned to make an FID on its oilfield by the end of 2016.

“You need a pipeline route firmed down and then you need to get FID. So FID probably in early 2017 and then three years later, you would have first oil,” Mr Heavey said at the Africa Oil Week conference organised by Global Pacific & Partners.

Tullow expects to obtain a production licence this year in Uganda and to start oil output there in 2020, he said.

Uganda has been pushing for an earlier production date around 2018, citing work by other investors. But previous targets have slipped.

“If Tullow is talking of 2020, that’s their business,” said Ugandan Energy Ministry spokesman Bukenya-Matovu Yusuf.

“CNOOC which has a production licence has been doing a lot of work toward production and our 2018 target still stands.”

Any investment decision will hinge on a route for an export pipeline out of land-locked Uganda to a port on the Indian Ocean.

That’s also true for China’s CNOOC and France’s Total, both also investing in Uganda.

A proposed northern Kenyan route has raised security concerns as it lies near war-torn Somalia. Total is considering a pipeline through Tanzania. Shares in Tullow closed down 4.65pc at 195pence in London

2 Reasons Why East African Oil and Gas Industry Could Change Global Energy Market

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Have you ever really know the oil and gas market is not static?  Do you believe Tanzania oil and gas industry and other East African countries can dramatically change the global energy equation

You are about to learn some really great stuff,

The article explores two fundamental factors that  will result East African oil and gas industry including Tanzania to dramatically the change global oil and gas market

Let’s face them
      1: New discoveries
For a couple of years now, latest announcements of natural gas and oil discoveries in Tanzania, Kenya Uganda and Mozambique are being made every few months, oil and natural gas exploration is ongoing, so even more natural gas could be developed.

This natural gas discoveries means that these East African countries that have not been exporter, they certainly would be just an exporter of natural gas in the global market and this will result into change the global energy equation.

2:New technology
Changing of oil and gas market is the consequences of new technology,
What does modern technology mean to oil and natural gas industry?
It means that uncommon sources of oil and natural gas that recently are not commercially viable. They will come online.
Allow me to make one example of contemporary innovative technology that has dramatically changed the global oil and gas market.
The most recent technology that has changed the global oil and gas market is called” HAUDRALIC FRACTURING or  FRACKING”

What is Haudralic Fracturing?                  A quick definition

Hydraulic fracturing or Fracking is the process which blast through shale deep below the surface to release oil and gas trapped in the rock
This technology has switched the global oil and gas market.

Must Read:Time is now to invest in oil and gas sector

For instance  this technology has made United stated  a net exporter of oil and natural gas  and in few years the country  has decrease oil import from 56 percent in 2005 to 40 percent in 2012

Bonus: In 2011 United states begin  to export petroleum products for the first time over 60 years thanks to HAUDRALICK FRACTURING technology

Final Words
Due to the  reasons  I mention above, you should  understand that oil and gas markets will never remain the same  for the next years.

East African countries like Tanzania, Mozambique Kenya and Uganda have to come online  and become oil and natural gas exporter due to the new oil and gas discovered day after day this will result to the change of energy equation across the world

New technology  also can cause oil and gas market to change because those oil and gas  sources that was that was very difficult to access could be easily accessible

Swala Oil upbeat with exploration

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Swala Oil and Gas Tanzania Plc Chief Executive Officer, Dr David Ridge, said that there have been small finds in quite a few places but the big discoveries have been in Tanzania and Mozambique, where plans to develop LNG plants are well advanced.

“The volumes discovered so far in Tanzania are significant: if you poured it all over the country, it would cover the whole country to a height of 1.5 metres – and we expect more to be discovered,” he said.

The big story in 2014-2015 has been the collapse of oil prices, from over 120 US Dollars per barrel last year to about 50 US Dollars at the moment. Looking at oil prices over the past 150 years, the current expectation is that we shall have low oil prices for a few more years.

Dr Ridge cited that in terms of African producers generally, a collapse in oil prices has meant that revenues have been less from production and countries have had to tighten their belt.

Projects that were viable or competitive at higher prices now are not, and are either mothballed or delayed. “On top of that oil price pain, companies have started to look at the general conditions under which they invest and warnings have become more pertinent in a low oil price environment: oil and gas is global game and companies are not forced to invest in any given country,” he cited.

With all the upheaval in the world markets, and all the confusion around project development, Swala Oil and Gas Tanzania earlier this year announced the farm of Tata Petrodyne Limited (TPL) to their assets, a move that is a vote of confidence.

Overall, TPL has paid just under 6 million US Dollars towards their past costs and shall pay another 4.6 million US Dollars towards their share of two exploration wells.

In exchange, TPL will receive 25 per cent of the Kilosa- Kilombero and Pangani licences. “TPL is in total paying nearly 11 million US Dollars to buy into our assets and it means that you, as shareholders, can look forward to a 2016 drilling campaign paid for by this investment. It is the best onshore farm-in deal that I have seen in a while and a vote of confidence in Swala’s assets,” he explained.

In August, Swala Energy Limited disclosed that its subsidiary company Swala Oil and Gas (Tanzania) Plc had received a no objection notice from the Tanzanian Ministry of Energy and Mines to the farm-out of 50 percent of its interests in the Kilosa-Kilombero and Pangani licences in central and northern Tanzania, respectively to India’s Tata Petrodyne Limited (TPL).

With the receipt of consents from the Tanzanian Petroleum Development Corporation (TPDC), the Tanzanian Revenue Authority (TRA) and now from the Ministry of Energy and Mines, the company is awaiting only the consent of the Fair Competition Commission (FCC), the firm said in a statement.

“The rapid approval by the Tanzanian regulators to the farm-out of the SOGTP licences illustrates their desire to encourage activity in this important economic sector.

We are confident that the FCC consent shall be received soon, which shall allow TPL to join the licence joint venture ahead of the planned drilling campaign.” said Dr Ridge.

In June, this year, Swala Oil and Gas announced it reached an agreement with TPL, a subsidiary of the multinational Tata Sons Limited, under which TPL shall farm into the Pangani and Kilosa-Kilombero licences in Tanzania.

Swala is currently working on the Environmental Impact Assessment and preparing the drilling teams. They are constrained in when they can do things because of the weather windows but they are aiming to drill Kito on the third quarter of 2016 followed by a Pangani well, subject to the technical review, in the fourth quarter.

Though the company has not yet discovered oil, they have done enough work to give them confidence that all the right ingredients are there and their technical case is promising.

They need to drill to see whether those ingredients have formed oil. The company thinks that the Kito structure can hold between 220 million barrels and 2 billion barrels, with an average of 980 million barrels.

The other leads could, together, contain an average of 1.5 barrels. This is what could be there but one can never recover 100 per cent of what is in the ground but only time will tell.

Who will hire Tanzanian Graduates in Oil and Natural Gas Industry Now

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is

Now is time that some of college students in Tanzania have finished their four years of petroleum engineering, and others three years in petroleum geosciences.

At the same time Tanzanian students who had left the country for oil and gas  studies have reached their graduation date, now back to home.

These graduates are very optimistic to get employment in petroleum companies with six figure starting salary

The fundamental question here is the guy who will hire them now?

Layoffs in petroleum companies are on the horizon. In order to deal with oil slump, petroleum companies have now erased their campaign to attract fresh graduates.

The situation not only bad for recent Tanzanian graduates, but also  many graduates across the world are now sweating.

When I visit Internet oil and gas forum, recent graduates worldwide share their sad stories, they just staying home with parents waiting for the oil price to restore.

Never panic:
Don’t panic this normal to the oil and gas industry,
The best thing I recommend you to do now is uploading your CV in these  job sites for petroleum jobs

Once you have uploaded your CV you become visible to the oil and natural gas companies and recruiting agency, so you raise your chance of searching for the job.

Must Read..5 ways to get job you want in oil and gas industry

Final Words
This is the worst time  for newly graduates, but If petroleum industry is your passion, you will work hard and are gained.

More Local Talents are Needed in Natural gas Industry

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Apart from infrastructure, the greatest obstacles in oil and   natural gas industry in Tanzania is scarcity of skilled labors at local level.

Although effort has been done to train local people inside and outside of the country, but the number of trained people  do  not meet the demand to serves the industry.

The shortage of locals people with knowledge and experience relevant  to oil and gas disciplines in  oil companies, consulting firms and tax authorities, will causes most of oil and gas projects in Tanzania to take longer than average. Also we will remain dependant from  foreign companies in terms of  technical expertise.

The local participation in the oil and natural gas sector in Tanzania is necessarily important as the key to succeed in this industry.

Having large number of skilled workers in the oil and natural gas sector will minimize cost that recently stay in the hands of foreigners and investors, as well as removing barriers in developing newly discovered gas resources.

Uganda’s Change of Mind On Oil Pipeline and the headache it is giving Kenya

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The idea is for this pipeline to become the export conduit for Uganda’s oil once drilling starts.

Trouble is, Kenya had earlier signed an MoU with the same Uganda to build a pipeline to route their oil through northern Kenya to Lamu.

The new tango with Tanzania comes as bad news for the $29 billion Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor.

The prime mover in the change of plan from Lamu to Tanga reportedly is the French oil giant Total.

Its beef with the Kenyan route is about “insecurity” along the so-called northern corridor, where banditry and cattle raiding among the Turkana, Pokot and Samburu is a way of life.

In Total Oil’s assessment, the Tanzania option means lower unit transportation costs.

Originally, the hinterland Lapsset had in mind at conception was South Sudan and Ethiopia.

Read:Tanzania signs oil pipeline  Mou with uganda

NEIGHBOURHOOD GOLIATH

That was well before oil was discovered in northern Kenya, and before Uganda was officially brought on board.

Aside from the question of when Kenya will be ready to drill, the projected volumes will not offset those from the Ugandan oilfields.

Sure, South Sudan has plenty of oil, and a pipeline through northern Kenya was primarily for this reason.

But there are good grounds to question the reliability of this country for Lapsset, at least in the short term.

Instability and civil war have become the norm there.

The existing pipeline through Sudan to the Red Sea, and even the oilfields themselves, have had to remain shut for long periods.

The more serious concern, though, should be Ethiopia.

Lapsset without it is like New York City without Wall Street.

Ethiopia is the neighbourhood Goliath – the most populous country in our region (90 million people), with the second biggest economy (after Kenya’s), and the fastest growing.

But it has the misfortune of being landlocked since it separated with Eritrea in 1993.

Presently, it relies on Djibouti port for its exports and imports.

Lapsset’s biggest desire is to lure this traffic through Lamu, hence the fast-tracking of the tarmacking of the Isiolo-Moyale highway as a first step.

However, by the time Lapsset is up and running, it may find the situation has greatly changed.

Read:Tanzania-and-uganda-agree-to-build-crude-oil-pipeline/

HUGE DEVELOPMENTS

Currently the Addis Ababa-Djibouti rail link (which Ethiopia co-owns) is being upgraded.

The existing metre-gauge railway will be replaced by a spanking $3 billion electrified SGR being built by (who else?) the Chinese. It could be operational as early as next year.

It is unlikely Ethiopia will want to shift its business south to Kenya after undertaking all this capital investment.

Of course, Djibouti will do anything to ensure the booming commerce from Ethiopia does not go away.

It is working as hard as anybody to modernise and upgrade its port, among other initiatives.

The little Muslim country is careful to also let its big and powerful neighbour into certain delicate arrangements.

It so happens that Djibouti hosts two big French and American military bases.

Since its society won’t allow its women to fraternise with the foreign soldiers, it discreetly lets in scores of Ethiopian girls to come over and do their thing.

Not to be left out, Tanzania is building its own huge $11 billion port at Bagamoyo.

Funded by China and Oman, it aims to eclipse Mombasa as the premier port in East Africa.

Yet in this rush for mega projects, we could be creating too much overcapacity that may condemn these projects to white elephants.

What Does Natural gas discovery in Tanzania mean for  Local Entrepreneurs

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is

With this massive discovery of natural gas in Tanzania which is nearly 55.5 trillion cubic feet,  international companies and foreign  investors across the world are swarming in Tanzania to invest in natural gas sector.

What does it mean to Tanzania entrepreneurs?

 The logic here is very simple: there is unlimited opportunities in natural gas industry to create huge wealth, and that’s why many investors are attracted to it:

But the sad reality is that, most of local  entrepreneurs  are still place limit to themselves  with  excuses like “I m not good enough in oil and gas stuff” some of us we believe oil and gas business is only for “BIG BOYS”  with  big financial muscles

Discovery of natural gas in Tanzania means opportunities to Local entrepreneurs to creates financial freedom. This discovery of natural gas should inspire the creativity of locals entrepreneurs.

With this growth of Tanzania economy by 6.5 percent in the first quarter of 2015 means demand of energy is going to increase,which increases the investment opportunities in Tanzania.

If you are very interesting in oil and gas business and you don’t know where to begin here 6 oil and gas business opportunity in Tanzania.  You can start with

Good Luck:

Kenya hosts regional Oil and Gas Summit

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This follows the success of last year’s event which saw over 2,300 participants from 380 companies gain invaluable insight into the projects and latest opportunities in the region.

EAOGS is endorsed by the Ministry of Energy and Petroleum, Kenya and attracts a senior level audience of international and regional companies, ministries, NOCs, IOCS, service companies, leading consulting and contracting companies, financial and legal institutions and government authorities.
Read:Time is now to invest in-oil and-gas sector

Following the success of licensing rounds, the advancement of the crucial port and refinery developments and all the pipeline issues; there is a lot to look forward to throughout the region and EAOGS will present major projects from key countries including; Ethiopia, Kenya, Mozambique, South Sudan, Tanzania and Uganda.

The Conference Programme for EAOGS 2016 is currently in development by expert steering committee of industry and government experts and will once again provide a cutting edge agenda covering all of the key issues and success stories.

Alongside the Conference EAOGS 2016 will be increasing its exhibition space to allow for even more companies to demonstrate their products and services to thousands of decision makers from across the industry