How   to Win the trust of  Citizens in Tanzania Oil and gas Sector

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Transparency is the key element to succeed  petroleum industry and is the among of simple tactics to build citizen trust in oil and gas sector

.Let see first what are the importances of transparency before moving on how we can build it

Importance of Transparency in oil and gas industry

  • It reduce corruption
  • It mange public expectation
  • It build trust
  • It enable good decision making

How to build Transparency in oil and gas industry in Tanzania

  • We must increase public disclosure of licensing and tendering process
  • Also we must publish the criteria of assessing bid and hold open bidding round for both exploration licensing and tendering
  • companies currently operating in Tanzania should be more detailed about their financial report and also they publish information on the sites where they work.
  • We must increase publish income or revenues generated from oil and gas industry in newspapers, internet and strong media.

 

    My Final Words

Regular disclosure of information to the public  would clear up misconceptions of the citizens in oil and gas industry and reduce corruption which is the key element  resource curse in many emerging oil and gas producers.

 

Dear readers,  we would love to here all of these from you.

 

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.

Tpdc has Awarded Ion A Contract For Seismic Survey in Ruvuma Delta Region

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 ION Geophysical Corporation has announced that the TPDC has awarded ION a contract to acquire 4,058 km of 2D seismic, gravity and magnetic data over offshore blocks 4/1B and 4/1C in the Rovuma Delta region. The award follows an international tender, number PA/031/2014-15/W/06, for a 2D multi-client survey, to be known as ‘TPDC Phase I 2015’, that is planned to be acquired in fourth quarter 2015.
“We are very excited on the commencement of this program, which is part of a broader campaign aimed at adding value to all of TPDC assets, both onshore and offshore,” Dr James Mataragio, Managing Director of TPDC, commented. “This survey and three other surveys carried onshore are 100% funded by TPDC. This marks an important step for TPDC, as a National Oil Company, to begin fully focusing on exploration, development and production. Blocks 4/1B and 4/1C are 100% owned and operated by TPDC, and this new seismic data will be used to assist TPDC with a competitive farmout process, details of which will be announced at a later date.”
Joe Gagliardi, Senior Vice President of ION’s Ventures group, added, “ION is delighted to have been awarded this contract, which represents a further phase of seismic acquisition, processing and interpretation services to be provided by ION in support of the government’s hydrocarbon exploration strategy.”

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 Concludes Agreement To Exist Zambia

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Swala Energy Limited (“Swala” or “Company”) advises that, following a review of its assets and operations and as part of
its continuing cost reduction exercise, it has decided to exit from Zambia so that it can continue to focus on its core areas
of East Africa.
To facilitate this action it has entered into an agreement to relinquish control of Swala Energy (Zambia) Limited (“Swala
Zambia”) to local Zambian shareholders. On completion of the transfer of control, Swala shall be the beneficial owner of
less than 1% of Swala Zambia and will therefore have effectively relinquished its interest and control of the Block 44
license in Zambia.
Under the terms of the agreement, the only Swala director on the board of Swala Zambia will resign immediately upon
change of control and Swala Zambia will change its name.
Dr. David Mestres Ridge, Swala’s CEO, said: “Swala has taken this step as part of a strategic decision to exit Zambia and
to focus its resources and activities in its other highly prospective core areas of East Africa. By transferring control of the
company to local shareholders we are able to exit Zambia in a way that remains constructive and provides the local
shareholders with a foothold in the early stages of the oil exploration industry in their own country. We wish them every
success in their endeavours.”

Low Crude Price Will Lead To The Shortage of Talents In Many Petroleum Companies

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Oil
companies have been doing recruiting in  local university. Where by graduates from these Universities have received jobs offer prior to their graduation date. Forexample In
Tanzania, graduates from University of Dar es Salaam and Dar es Salaam Institute of Technology have received these job offer from oil companies.
In
order to cope with this low level price ,oil companies has been  giving up  to work with local universities  since june last year. The truth is, Many oil
companies will have scarcity of talents 
they used to find  from  local universities. And when I say talents, I mean
from operators, geologist engineers ,accountants, human resources people  and all who have background unrelated with oil
and gas industry
MY
FINAL THOUGHT
  Currently I am very anxious about this low
crude price.If this  downturn will be  long slump,probably  it could affect graduates jobs prospect and
oil companies can’t find the talents they need. But if the slump will be short,
petroleum companies could find the talents they need and this will give
graduate future they are trying to seek for.
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.