3 Ways Oil and Gas Companies In Tanzania Can Save Millions In their Current Operations

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Times are hard now. Not only in Tanzania but all over the world, oil prices drop are burning oil and gas companies. The shortest route for oil and gas operators to deal with a decline in oil price is cutting operational cost by doing the following.

  • Shut down the projects
  • Cutting staff
  • Selling assets

But guess what? there are more options that can help these oil and gas companies save millions when purchasing, valves, drilling chemicals, safety materials, pipes, fittings or any other supplies

1.Involve your employees
With your ideal procurement department, you can easily bypass the users in the field, so let’s consider you look for Pipes, instead of relying solely on your procurement department, involve and get the input from the users or engineers on the field as well, because their input on quality and prices can help you to get the right and at the good rates. Because some of your employees might have experience in pipe sector so can be resourceful in the sourcing process.
2.Give top consideration on durability of the materials
As cutting cost is your ultimate goal, so you can be tempted with Gloves or safety boats that come with great discounts. While these save short term financial challenges but result to long-term financial pain, because after a short period of time you have to order another item. And you can resolve these problems by working with reputable oilfield equipment suppliers in Tanzania.

3.Work with Local dealers
This is not only will help your meet the local content goals but save you a lot of money than sourcing oilfield equipment from international dealers that can charge you higher because of the increasing shipping costs. There a lot a manufacture of pipes, valves, and other oil and gas field supplies in Tanzania that meet international standard. So no needs to look far when you can satisfy all of your supplies needs in Tanzania while you save a huge cash.

Any questions or suggestion? If you’ve any questions or suggestions do not hesitate to write me at Hussein.boffu@tanzaniapetroleum.com and I will be glad to answer you.

2 Factors To Consider Before Buying Oil and Gas Equipment and Materials in Tanzania

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There are certain things in life that cannot be compromised such as the quality of oil and gas tools, equipment and material particularly in our country(Tanzania) where this is fresh industry. Negligence in this aspect can result in irreversible damage. Therefore pay full attention to the quality of  the items. Here are 3 aspects to consider when buying oil and gas equipment, tools and materials

Purchase from trusted supplier

Oil and gas equipments must be purchased from a standard supplier. The reputation  of supplier  determines the quality of the  materials and items

Avoid buying based from price.

The lower the cost, the poorer the quality. Investing in crucial products is not waste of money. The internet is also a useful tool in locating quality supplier in Tanzania. Also ensure the supplier is registered with BRELA(An agency responsible for business and company registration in Tanzania. And they licensed for the trade.

Hussein Boffu

Founder  Tanzania oil and gas procurement/logistic/supply chain Network

Email: Hussein.boffu@tanzaniapetroleum .com

Mobile+255655376543

How To Organize Oil and Gas Event In Tanzania and Make Millions

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Oil and gas event is the profitable business in Tanzania. Despite the solid return this business generates, only one local entrepreneur have been participating in organizing oil and gas event in Tanzania.

The lowest price of the last oil and gas event I attended in Tanzania was Usd 300 per ticket.

If you’re running oil and gas events in Tanzania You’re confident to make millions of shillings when you’re going to charge your event at 200Usd, 300usd 400 Usd 500 usd 600usd per ticket

Even international oil companies sponsors may be willing to support your event if they can get good publicity and generate goodwill.

Why Hosting Oil and Gas Event Is The Fantastic Business In Tanzania
To be completely transparent, our industry is operating in challenging business environment, the local content development, capacity building to local suppliers, small business owner and participation of our inexperienced youth to work in the oil and gas industry is substantial challenges that require serious discussion with stakeholders in the industry.Not to mention f fall and rise of crude oil price in the global market can lead new opportunity and challenge as well. This makes the high demand of oil and gas event business because people need to be aware of the current trend in Tanzania’s oil and gas and share their views.

But no doubt, the oil, and gas sector is infancy stage in Tanzania, In this regards, many Tanzanians are keen to keep updated about all the on-going in the oil and gas industry. In reality, it can be a little bit frustrating to gather oil and gas information by oneself. Because It’s time taking some time is difficult to get some important oil and gas information on your own.

 

Also, they value connections they get by attending oil and gas events. Because many of these industry events are open to all industry professionals and stakeholders
They attend to uncover opportunities emerging in the Tanzania’s oil and gas sectors, some people attend to make new contact for making career change

But also, Tanzanians, international individuals, and companies believe oil and gas events are ideal to meet new clients, vendors, and partners.

So you can organize your oil and gas event in Tanzania and make handsome money as well.
Oil and gas event is the big dollar business and can make one billionaire if you plan well your event and you know how to play your game very smart.

So hosting oil and gas events is your chance to make real money from the oil and gas sector in Tanzania even in bad economy. But it needs a lot more preparation.So you can sell more tickets if you do it in right way. But it is not one man thing as it needs to be carefully planned.

Would you love to run your own oil and gas event for people in Tanzania? Here are the tips.
TIPS TO ORGANIZE PROFITABLE OIL AND GAS EVENTS IN TANZANIA

1.Find the right venue
The location plays important role when choosing the venue. It must be easily reachable, It should have sufficient car parking and easy access by public transport.In other words, location should be attractive and prestigious to attendees.

2.Timing
Schedule your oil and gas event when most people will be able to attend.The best time to host your oil and gas event is at the early months of the year or towards the end of the year because at this time people are free to spend their money.

3.Pick great industry speakers
Look for the popularity of the speakers, are they have physical experience in the oil and gas industry? The professional speakers will increase the reputation of your events and get more participants.

4.Budget
Plan the budget for hosting your event including entry fee, drinks food, advert company sponsorship etc

Final Words
Even in the bad economy where many businesses fail, an employee gets fired. But still Tanzanian individual and company needs to network, grab new opportunities in this industry, get clients, partners or even make career change into oil and gas industry

You can lose money and ruin your reputation in running unsuccessful event but well-organized oil and gas event raise you billions of shillings beyond your expectation

 

 

 

Hussein Boffu,

Graduate Petroleum Geoscience
Mobile: +255655376543 Email: Hussein.Boffu@tanzaniapetroleum.com

Aminex Hits Gas at Tanzania Well

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focused oil and gas exploration and production company Aminex plc revealed Monday that the Ntorya-2 appraisal well in Tanzania has encountered a gross gas bearing reservoir unit of approximately 167 feet.

Preparations are currently underway for a comprehensive well testing program and the company expects to have results of the flow-testing and ongoing petrophysical analysis by late February.

The well was spudded in the onshore Ruvuma Basin Dec. 21, 2016 in order to appraise the Ntorya Area. Ntorya-1 had a net pay of 11.5 feet and flow-tested at 20 million cubic feet per day, with 139 barrels of associated condensate.

The Ntorya field is approximately 25 miles from the Madimba gas processing plant, which receives gas into the National Gas Pipeline system. Depending on the results of the well test, the company intends to apply for a 25-year development license over the Ntorya Appraisal Area.

“We are delighted with the progress of the Ntorya-2 appraisal well, which is ahead of our expectations,” Jay Bhattacherjee, CEO of Aminex, said.

“The reservoir is both thick and high quality. Aminex looks forward to providing the results of the flowtesting which will enable the joint venture to consider its options for development of the Ntorya field,” he added.

VIDEO:Solo Oil’s Ntorya has the potential to ‘change Tanzania’ says Lenigas

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Entrepreneur David Lenigas tells Proactive: ”The really big impact one is this thing they’re [Solo Oil PLC ] doing at the moment down at Ntorya” in Tanzania

”They’re talking 4-5 trillion cubic feet of gas in place – that changes a country”.

Lenigas also discusses LGO Energy [LGO Energy PLC ] telling Andrew Scott: ”Trinidad – 80% of its economy relies on the hydrocarbon business, so Trinidad needs companies like LGO Energy to get in there and get producing”.

 

Enjoy the show,

 

 

 

 

Why it’s important for Oil companies to do reservoir modelling and simulation? PART 2

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By

RENATUS MAHUYU

Msc Oil and NaturalGas Engineering

China UNIVERSITY OF GEOSCIENCES-WUHAN CHINA.

raymahuyu@yahoo.com

Phone number /WhatsApp: +8613006172786

www.renatusmahuyu.blogspot.com

renatus

 

From our previous article, we discussed about how geologists go about when finding oil and gas in the exploration stage.

Read: Why It’s Important For Oil Companies To do Reservoir Modeling and Simulation( Part1)

In this article, we will discuss;

  • The life cycle of an oil field,
  • The meaning of reservoir modelling and simulation,
  • Data used to construct reservoir models,
  • Reservoir engineering software’s for modelling and simulation

 

The life cycle of an oil field

There five phases in the life cycle of an oil field, they include;

  1. Exploration/Discovery Phase

In this phase, thegeologists and geophysicists main activity is to search and locate the hydrocarbons beneath the earth’s surface using seismic surveys. Once the geologists and geophysicists agree on the existence of hydrocarbons in a particular area, exploration wells are drill to confirm. Exploration wells are typically not very deep

 

 

  1. Appraisal Phase

Successful exploration drilling of oil or gas leads exploration companies to go for next stage which is appraisal phase.

This phase focuses on reducing uncertainty about the quantity and qualities of the discoverable oil and gas reserve and its properties.

During appraisal, more wells are drilled to collect information and samples from the reservoir. Another seismic survey might also be acquired in order to better the image of the reservoir.

The activities take several years and cost around $10 to $100 million.

Upon successful completion of this stage, companies can then move to the next stage of development.

 

  1. Development Planning

The development stage takes place after successful appraisal and before full-scale production. It is done for the following reasons;

  • To form a plan on how many wells need to be drilled to produce the oil or gas (geologists, geophysicists and reservoir engineers)
  • To decide the best design for the production wells (drilling engineers)
  • To decide what production facilities are required to process the oil/gas before it is sent to a refinery or customer (facilities engineers)
  • To decide what the best export route might be for the oil and gas (logistics engineers)

 

  1. Production Phase

This is the process of extracting the hydrocarbons. The primary activity conducted during this phase is pumping hydrocarbons to the surface. Sometimes, more wells may be drilled within the development area to enhance hydrocarbon recovery. Once the fluid starts flowing, it must be separated into its components (oil, gas, and water). Other activities that occur during production phase include production enhancement, well servicing (routine maintenance such as replacing worn or malfunctioning equipment), and well workover (a more extensive equipment repair). The production phase may last for a number of decades. During this phase, wells and associated facilities are routinely monitored.

 

  1. Abandonment/Cessation of Production(CoP)

When production wells no longer economically produce enough oil, the wells are plugged and the site restored by dismantling facilities such as platforms, putting the wells in a safe state, preserving the field’s residual hydrocarbon reserves of the field, and cleaning, depolluting and rehabilitating the site.

 

What does Reservoir modelling and Simulation mean?

Let us first define the meaning of the key terms: reservoir, reservoir modelling, simulation and reservoir simulationin the petroleum field

 

Reservoir; a porous medium that contains (Oil/Gas) hydrocarbons.

Simulation; a process of imitating or mimicking an actual or assumed real world conditions over time, for the purpose of forecasting performance of the system by the use of a created model

 

Reservoir simulation;a process of predicting future reservoir performance and finding ways andmeans of optimizing hydrocarbon recovery under various operatingconditions.

 

“A reservoir model represents the physical space of the reservoir by an array of discrete cells, delineated by a grid which may be regular or irregular. The array of cells is usually three-dimensional, although 1D and 2D models are sometimes used.”

 

Reservoir models are divided into two categories:

 

RESERVOIR MODELLING AND SIMULATION STAGES

DATA Geology study   Reservoir simulation (Dynamic Model)  
Well data, well tops

 

Geo-Physic(Seismic)

 

 Reservoir, Geometry correction Sensitivity Analysis  
Drilling (Cutting) Fault modeling Static model History matching  
Petro-Physic(well logs data)

Core

Fluid sample (surface-Bottom Hole)

 Zonation Prediction
Lithological modeling
Scenario definition
Economic Analysis
Property modeling
Reservoir Management

 

Reservoir Engineering Software for Modelling and Simulation.

There a lot of commercial software used by Geologist and Reservoir engineers in modelling and simulation process.

Software’s

  1. ECLIPSE Schlumberger
  2. Petre software
  3. INTERSECT
  4. ExcSim
  5. Computer Modelling Group LTD -CMG software
  6. SKUA-GOCAD High Resolution Reservoir Modelling

 

The uses of these software and its advantages.

  • To do numerical simulation, from black oil and compositional to thermal recovery of heavy oil resources.
  • creating 3-D reservoir model.
  • To provide uncertainty quantification, field management, history matching
  • To reduce risk, maximize recovery of oil and gas reserves as well as enhance field economics.
  • Maximize the value of your well tests with optimized designs that honor the geological model

 


For those who need to practice and learn/practically on how to use this software you can communicate with us THROUGH CONTACT PROVIDED.

 

Next Discussion will be on How a reservoir model is Constructed and Why modelling and simulation

 

Thank you

For further enquire, questions and suggestion please feel free to contact me through provided contacts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oi and Gas Job Opportunity In Tanzania

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INTERNSHIP

We need a Slickline Supervisor during about 10 days in March/April That will work with our client, exploration and production company in Mtwara Tanzania. The job will consist in supervising a service company team doing slickline jobs on our wells to retrieve pressure gauges.

 

Requirements:

– Higher technical education;

– Wide knowledge of all Wireline/Slickline operations and equipment with the working experience of 10 years at Wireline/Slickline;

– Wide knowledge and 5 years of relevant experience in supervisory role;

 

If you meet the above skills and qualification send your CV info@rockgastanzania.com

 

 

 

Tanzania Received Gas Proceeds Worth $ 54.9 Millions In 2014/15

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The latest annual report from the auditor general on the Tanzania Petroleum Development Corporation shows that the state agency received or was owed natural gas worth $54.9 million (Tsh132.6 billion) from.

The amount if broken down into proceeds from gas sales by Pan Africa Energy ($31.3 million),(SongoSongo gas field) Songas Tanzania Limited ($23.6 million) and the Tanzania Electric Supply Company Limited $23000.

Despite the impressive proceeds the auditor general report showed that the Tanzania Petroleum Development Corporation had received just $4.02 million (Tsh8.99 billion) with the rest remaining due.

Read Also: 5 steps To Sell To Oil and Gas Companies In Tanzania

The latest figures are a jump from the 2013/14 figures where just $29.4 million (Tshs 65.7 billion) Pan Africa Energy ($17.2 million),(SongoSongo gas field) Songas Tanzania Limited ($12.1 million)and the Tanzania Electric Supply Company Limited $36700.

During the same period the auditor’s report further shows that the government opened three Escrow Accounts at Stanbic Bank as per the agreement with Exim Bank (lender) as collateral for the Mtwara- Dar es Salaam gas pipeline and deposited $53.7 million (Tshs120.5 billion).

 

Read:Opportunities During Construction Of Liquefied Natural Gas Plant (LNG) In Tanzania

During the same period the Tanzania Petroleum Development Corporation spent $1.8 million (Tshs4.1 billion) in exploration expenses on its participation blocks Lake Tanganyika, 4/1b and 4/1c

How Students and Recent Graduate Can Find Internship In The Oil and Gas Tanzania

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Internship is a program designed to help graduates and recent graduates to gain necessary work experience. Employers allow recent graduates to work in their company for a specific period.

Internship is the route to the oil and gas workplace. It helps you to gain requisite experiences that would help advance your career in the long run. Internship is also the best route to meet potential people in the industry, learn about the industry, and widen your network.

The good news is that most companies operating in Tanzania have a program for interns. All you need to do is to figure out oil and gas companies operating in Tanzania. Do not worry. I will list for you all the companies operating in Tanzania later. But first, let us focus on how to get an internship.

So, go online and log on to an oil company’s website. Go to their “Career” page. Find their internship page and follow the process. The first tips for is to apply early. That is, if you want an internship in 2018, you need to apply in 2017. The same way if you’re keen on the internship in 2019, you need to start 2018. That way, you’ll be among the early birds. As it is said, the earlier, the better.

Another great tip to get internship is to write a short application letter, and in your letter, demonstrate why you are looking to build a career in oil and gas and showcase why you are passionate about the industry. Also, you should explain the type of work you are interested in and the knowledge or skills you will bring into the company. This can be little problematic, considering you have no work experience. But it really works because you show all your interest and wishes in general. But be warned that this is very competitive. So, do it wisely.

But if you have already graduated and you never did an internship, you are not too late. You can apply as well.

Click here to see oil and gas companies operating in Tanzania: http://tanzaniapetroleum.com/2016/08/17/list-of-oil-and-gas-operating-companies-in-tanzaniai/

 

Can you do me a favor? Please enter your first name and email adress below to get a free copy of our book. That reveals opportunities available in Tanzania’s oil and gas sector.

Shell Unlucky In Tanzania’s Block 1 and 4 Offshore Drilling

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Block 1 and 4 operator shell failed to encounter any hydrocarbons at the Kitatange-1 well in Block 1 and Bunju-1 well in Block 4 both in Tanzania. According to Shell, after evaluation the operator confirmed that good quality reservoir was encountered in both wells.

The Noble Globetrotter 2 rig which has been drilling the wells has been demobilised from site.

The two wells which cost close to $80M into the well drilling programmes fulfill the final exploration commitments as per the exploration licences issued by the Ministry of Energy and Minerals (MEM).

Subsequent to the completion of drilling Kitatange-1, a bridging licence has been awarded for the existing discovery Locations in Block 1.

To date 17 Tcf of natural gas have been discovered in the two blocks. Among discoveries in Block 1 include: Taachui, Mzia, Mkizi, Jodari and Chaza while those in Block 4 include: Chewa, Ngisi, Kamba, Fulusi and Pweza.

The development of Blocks 1 and 4 is part of the Tanzania LNG project, which is a critical part of Tanzania’s national energy policy under the umbrella of the Vision 2025.

Shell formerly BG Tanzania has 60 percent interest in Block 1 and 4 while the other two joint venture partners in the blocks Ophir and Pavilion Energy retain 20 percent each.