Aminex Continue to Accelerate Its Drilling Operation on Shore in Tanzania

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Oil and gas exploration activities make an upward curve when the oil and gas economy is good. And the inverse is true. The activities decline during periods of economic meltdown in the sector.

In periods when oil sells for a lower price in the global market, major oil companies may shift investment to the downstream sub sector of the oil and gas industry.

They do so to benefit from the low petroleum products price.

Sometimes, they move to other oil producing countries and leave the gas fields to small independents oil companies.

Do you know who the major oil companies I am talking about are?

I am talking about multinational oil companies such as Shell, Exxon Mobil, and Total.

Those big boys dabble into everything: from discovering, developing, extracting, refining, transporting to marketing oil and gas related products.

To cope with low oil prices, they may shift investment to the downstream portion of the industry.

With that in mind, the low oil price periods are often misunderstood to mean lack of opportunity.

Realistically, tough market situations present the best opportunities and make them tangible and visible.

If you can find a reputable company that makes massive discovery of oil, you can have a substantial reward.

Take, for example, a company that implements smart strategies during the low oil price periods.

Precisely, companies that target assets which remain profitable during those periods but is likely to exceed investor expectation when the oil price goes up in the global market.

UK-based Aminex Oil and Gas Production and Development Company it is.

It partners with other companies to share risks and losses to the extent of its interests.

With this approach, Aminex stands a greater chance of succeeding than they would with absence of a partner.

Aminex Secured Farm Out

Aminex has just farm out 50% stake of its Ruvuma gas exploration acreage , on shore Tanzania to Oman-based Zubair Corporation. A deal worth up to US$ 40 million.

Read also. The Influx of New Companies in the East African Upstream Oil and Gas Sector: What You Should Know.

If you are not familiar with the oil and gas business terms, “farm out” means: the owner of Ruvuma exploration license-Aminex PLC has assign the right to do the actual drilling, complete test chikumbi-1 process, and interpret 3D seismic over 200 km square in return of percentage interest in product.

The farm out offer benefits both parties. It allows Oman-based Zubair Corporation to gain development license with no cash investment and gives Aminex PLC the right to some of the future production without any cost or risk of drilling or even developing the field.

Furthermore, Aminex has received numerous proposals from the companies who are seeking to get the drilling contract of Chikumbi-1.

As we speak, Aminex has closed the tendering process for a rig to drill Chikumbi-1 and the bids will be evaluated based on technical and commercial merits.

The well is planned to be of a total depth of approximately 3500 meters.

The Key to Realizing Potential in the Current Market Condition

As you see, uncertainty is increasing in the global oil market.

The best way to realize potential in this oil price setback is to split exploration and development costs with other companies to be assigned some shares, rather than trying to do it all by yourself.

And that is why Aminex decides to deal with large, international Zubair Corporation which is reputable company in Oman with interest in the Middle East, Africa, as well as investing in a multitude of industries.

Also, as mentioned, Zubair Corporation agree to cover the cost of drilling, complete and testing of Chikumbi-1 well (formely Notrya-3) in exchange of 50% share of Ruvuma gas fields.

Aminex has position itself to succeed by signing such a smart deal.

On Location

Aminex has secured the 3,447 km2 Ruvuma in Ruvuma basin near Mozambique boarder where it is reported that more than 160 trillion cubic of natural gas has been discovered in recent years. The first assest in Aminex portfolio is Kiliwani North that started producing gas in April 2016. Aminex also developed Nyuni which hold 93.3% interest.

What Makes Oil and Gas Exploration So Successful?

You need a strong business partner to succeed in the oil exploration business. Reputable business partners help produce results.

And Aminex has picked a companies that will help them drill Chikumbi-1 without a huge capital expenditure.

hussein.boffu@tanzaniapetroleum.com
+255655376543

The Influx of New Companies in the East African Upstream Oil and Gas Sector: What You Should Know

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Wait a minute!

Have you ever sat down to think about why major oil companies of the world and international investors are scrambling for a solid ground in Tanzania’s oil and gas sector?

I have, and I have concluded that there is a huge potential hidden under the East African soil and in its neighboring waters.

East Africa has 157 trillion cubic feet of natural gas reserves and 7.2 billion barrels of oil.

Think about that.

Of those 157 trillion cubic feet of natural gas, 100 trillion cubic feet were discovered in Mozambique and the remaining 57 trillion discovered in Tanzania.

According to the US Geological survey, Tanzania has potential natural gas reserves of up to 441 trillion cubic feet solely in the coastal region. So, more discoveries might be forthcoming.

Tanzania and Mozambique are some of the new natural gas exploration hotspots in the world. Meanwhile, Uganda and Kenya have also discovered massive oil resources.

Recognizing that there are untapped natural resources in East Africa, multinationals are flocking into the region. Exploration in and development of the oil and gas sector have become powerful magnets for increasing foreign direct investment (FDI) in the region and the country at large.

Some years back, European nationals and companies were the ones dominating the East African oil and gas industry. However, in recent years, many Asian companies are also competing with the Europeans.

An example is the Chinese state-owned CNOOC, which is one of the developers of the Ugandan oil resources that work in partnership with Total and Tullow to develop Uganda oil resources.

Another Asian competitor in the East African upstream oil and gas resources sector is China National Petroleum Corporation (CNPC) that bought 20% stake in Italy’s ENI that operate in Area 4 offshore in Mozambique.

In Tanzania’s case, Royal Dutch Shell, in partnership with Singapore’s Pavilion Energy and UK-based firm Ophir Energy, has some 16 trillion cubic feet of offshore reserves.

Norway’s Equinor (previously Statoil) and US supermajor ExxonMobil have 23 trillion cubic feet offshore.

These five firms are working on building the Liquefied Natural Gas plant (LNG) though the progress is being delayed due to low LNG price in the global market.

In addition, in the coming years, Sub-Sahara Africa upstream oil and gas summit would take place in other regions. But Zenith Professional Training (ZPT) will host the 2019 edition Sub-Saharan Africa upstream oil and gas summit in Tanzania.

 hussein.boffu@tanzaniapetroleum.com
 +255655376543

Anadarko To Award $2.5bn Contract To Indigeneous Companies In Mozambique

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Anadarko says it expects to award contracts worth some $2.5bn to Mozambican companies between 1H2019 –when it plans to takes final investment decision on its big Mozambique LNG venture – and 2024 when it hopes gas from its offshore Area 1 will start to be liquefied for export.

At a seminar convened to discuss opportunities available for local companies that the contracts held August 10 in Pemba, the main city in northern Mozambique, the US firm’s country manager Steve Wilson said that work on its planned liquefaction complex on the Afungi peninsula in Cabo Delgado province there will be available to companies that have the skills that meet its standards.  Anadarko executive vice president Mitch Ingram added: “We are committed to supporting small and medium-sized Mozambican companies to reach international standards and seize opportunities with gas exploration.”

Of that sum, $850mn has already been spent and $1.5bn has yet to be spent with local companies, said Ingram, according to local media reports.

The money will be spent during the process of building facilities for exploration in Area 1 which has about 75 trillion ft3 of recoverable natural gas.  The facilities include a village for 560 households to be displaced as a result of the exploration.  The company also aims to build an onshore complex on a 17,000-acre piece of land to liquefy gas pumped from its field some 17 km offshore.

In the initial phase, the facility will produce 12.88mn metric ton per year of LNG, but multiple trains – some of which are expected to be run by rival ExxonMobil for the Area 4 gas project – are expected to increase in time to 50mn mt/yr capacity. Anadarko will invest $30bn on the upstream project and 12.88mn mt/yr plant.

Although many Mozambican companies might struggle to meet Anadarko’s qualification standards, Ingram said the firm will support them: “We will do whatever it takes to prevent the issue of certification from being a sticking point for Mozambican companies. We will start now, providing funds for the necessary training, including through events to support Mozambican businesses.”

Credit. naturalgasworld

Community Engagement: Is Social Media Hurting or Helping the Oil and Gas Industry. 

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By Hussein Boffu

The oil and gas industry is of one of the major public and private sector in Tanzania’s economy.

Oil and gas companies play a vital role in helping residents of local communities in their operational region.

The industry, as a whole, has gone a great length in protecting the environment, and maintaining the health and the safety of employees and local communities in the area they operate.

In spite of its major benefits, there are issues that oil and gas companies must address.

The industry still has a negative press and a negative perception by the people.

We are in the social media age and a lot of misinformation about this industry is being spread on the internet, especially on social media networks.

The oil and gas industry is being painted black for lack of security and inability to protect the environment as well as its less contribution to local communities. Not all these emotional outbursts are true.

Oil companies have been (and are still) identifying those who are good in science and technology and sending them to great institutions of learning.

To support local communities in their operational region, Orca-owned PanAfrican Energy Tanzania (PAET), which operates a small offshore Songo Songo gas field, recently sponsored ten students from Songo Songo Island to attend secondary school in Dar es Salaam.

They also sent three teachers to attend the Teacher’s Training College in Dar es Salaam.

This deed did not create a sensation neither did it go viral.
In addition, Norwegian Statoil in collaboration with Dar es Salaam Maritime Institue (DMI) has trained 220 fishermen in the Mtwara region.

The training aims to help fishermen in the region to operate safely with the fishing vessel at sea. Talk about empowering locals to be better and efficient at the job they love to do.

Oil and gas companies should create the time to explain to the media, members of general public, and industry opponents what they are doing and how the industry is positively impacting Tanzania’s economy.

This communication could be in form of press releases, TV interviews, newspaper interviews, intentionally calling the press for a conference, directing attention to the good done in TV and radio ads, and many more.

Failure to do so is tantamount to losing public trust and company reputation.

One way oil and gas companies can get their message out there is using social media networks. By utilizing Facebook, Twitter, and LinkedIn. There are people trained in this field.

Their job is to manage, maintain, and create engagement on an oil and gas company’s social media profiles.

Some ten years ago, social media engagement was not an issue in the oil and gas industry. Today, the public wants to know each company’s operation even if not directly involved in the companies.

They want to know if they make room for interns, fresh graduates, and locals. Probably, feminists also want to know how many women are employed in these companies and how empowered they are.

With the high speed of information dissemination in this jet age, it is no longer possible to do nothing when an accident happens and expect it to go unnoticed.

To win public trust, oil and gas companies should be completely transparent when a bad incident occurs in the company.

They should communicate honestly and openly.

They should commiserate with the families of the victims and, yes, compensate them.

They should let the world know that the accident was just that: an accident, unintentional and not due to saving cost of production or negligence. That is the best way to maintain the company’s reputation.

It is no longer possible to invest thousands of dollars on TV ads hoping it will convince the public that the industry is doing great work.

Oil and gas companies must have a presence on social media networks. In fact, they should be their own publishers and engage in conversations about their operations and the industry as a whole, rather than rely on media outlets to get words out about their works.

They should control the information people receive and assimilate about their companies and not wait, hoping a media outlet will be kind enough to do it.

We are living in the best time of human history where virtually every piece of information is at our fingertips.

The social media can be of great help if the industry will incorporate an efficient communication system to alert the communities about their operations and especially during a crisis.

And the inverse is also true. It can ruin the oil and gas industry reputation if they do not use them to send a message about their work.

By Hussein Boffu

hussein.boffu@tanzaniapetroleum.com

+255655376543

Local Content Regulations to Spur Economic Prosperity in Oil and Gas Industry

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By Joe Watson Gakuo

In every country with natural resources like oil or gas, the government will often implement local content policies with a noble intent, in an effort to create jobs, spur local industries and tame ‘Dutch Disease’. These kinds of policies aim at promoting a system where international companies work with locals or ‘buying local’ products or services.

Local content policies have their origins in the writings which outlined the ‘Infant Industry Argument’, an argument that was first articulated in the 1790s. Local content is a topical issue, and has become a hot issue in the natural resource industry in general, and oil and gas in particular.

In developing countries like Tanzania, local enterprises are the drivers of economic activity and development. Since the discovery of commercially viable quantities of gas in Tanzania, efforts have been made to promote inclusivity and local participation in this emerging sector, and local content as a whole.

The Local Content Regulations aim towards maximization of the national value creation by means of the oil and gas value chain through employment, value addition, technology transfer and the acquisition of knowledge. The pre-requisites for enhancing local content are the rule of law, skilled workforce, and investment-friendly atmosphere. However, on their own, these policies are not a silver bullet. Two issues come to mind;

First, skills gap are typically the most prevalent barrier to meeting local content requirements. These gaps creates a void which is bridged through various technical assistance and training initiatives. Oil and gas exploration companies have noted that local suppliers who bid for procurement opportunities often fall short of meeting industry requirements in areas such as information technology, systems management, environment, health and safety standards. This is not surprising given that Kenya is a new entrant in the upstream sector. I would argue that for the technical initiatives to be sustainable in the long term, the government must take the lead.

One such program is led by a consortium of oil and gas companies which includes which have invested over $1.9B to facilitate the skills development in Mtwara, and in Lindi, a program being implemented by Vocational Edecution and Training Auhtority (VETA), Voluntary Services Overseas (VSO) and International GIZ. The aim of this program is to strengthen the capacity of the country to manage oil and gas resources and create wealth for sustainable development.

Secondly, the implementation of the local content regulation will promote the growth of the small and medium-sized enterprises across the value chain.  The procurement of local goods and services is very important as it establishes a multiplier for local economic development through contribution to employment, skills strengthening, supplier and local enterprise development.

Oil and gas exploration companies expend up to 80 per cent of their investments on products and costs that are supplied from without. Thus, indirect employment in the sector accounts for a large proportion of total employment and value addition.

The opportunities available however have not been sufficiently usurped by SMEs due to the information gap on how to create business partnerships, requirements of the industry and actors in the industry. This is serious challenge given reports  indicating that SMEs constitute 95 percent of all business in Tanzania, constitute 35 percent of the country’s GDP  and creates over 80 percent of jobs

In conclusion, if these regulations are implemented effectively, they can have great impact on the Tanzanian economy. For example, since Brazil, a giant in the offshore oil industry, passed its local content rules, an estimated 875,000 jobs have been created, and the value of domestic purchases has reached USD 14 Billion (Kshs.1.4 Trillion).

Local content regulations are considered to be among the most important tools for extracting additional benefits for local communities or businesses from foreign investments in the oil and gas industry.  It is worth noting that a large majority of stakeholders to the petroleum sector in Tanzania are very supportive of improving and increasing collaborations in the industry.

Joe Watson Gakuo is the Founder, Upstream Awards

Upstream Oil & Gas Awards To Be Launched In Tanzania

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Oil and gas executives and business leaders drawn from the oil and gas value chain will be gathering in Dar es Salaam, Tanzania, on Friday, 17th August 2018, for the launch of the Upstream Oil & Gas Awards (Upstream Awards).

Upstream Awards is a ceremony to recognize and celebrate outstanding achievements from within the emerging upstream oil and gas industry in the East Africa region. Open to individuals and companies operating in the country, these awards highlight exceptional achievement across all key areas within the upstream oil and gas value chain.

The high profile awards ceremony is expected to attract an exceptional list of guests, speakers, sponsors, partners, exploration companies, service companies and government representatives who will gather for an evening to support and celebrate excellence in the emerging upstream oil and gas industry.

The initiative has received the support of the government through the Ministry of Energy and government agencies such as EWURA, TPDC and PURA among others. The private sector is also well represented by operators, international oilfield contractors as well as local businesses interested in the oil and gas industry. These include Total, Equinor, Dodsal, Baker Hughes,Tsavo Oilfields, Mnazi Bay Consulting, Sahara Group, Airtel Tanzania and Ecobank among others. This is a demonstration of the interest that the private sector has in the success of the oil and gas industry in Tanzania.

“We are very delighted to launch Upstream Awards in Tanzania, as part of our broader initiative to promote local content and participation across the entire East African region. We are keen to provide a platform for oil and gas stakeholders to celebrate each other and to connect with a view to building opportunities for business collaborations.” Said Joe Watson Gakuo, Founder & CEO, Upstream Awards.

This remarkable event is the start of a long culture that will recognize the incredible talent of incredible people through a judging process that is open and transparent and carried out by well known people who are hugely respected in their own fields.

Furaha Samalu, Ecobank’s Brand and Communication Manager, said, “We are happy to sponsor and be part of this great initiative. The oil and gas value chain is important to the bank, and we are ready to help facilitate businesses execute their mandate in the upstream oil and gas sector”.

This event also gives the oil and gas industry an opportunity to share and learn from one another, while honouring and recognising the important people who play their part in continually improving our safety performance. It will be held annually in Tanzania.

No matter what the size of your business, Upstream Awards is for you.

Tanzania Wants to Build Pipeline to Pump Gas to Uganda

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KAMPALA, Aug 6 (Reuters) – Tanzania wants to build a pipeline to pump natural gas to neighbouring Uganda, another step in the two countries’ bid to expand energy cooperation.

State-run Tanzania Petroleum Development Corporation (TPDC) said on Monday that the pipeline would start from its capital Dar es Salaam, then pass through Tanga port on the Indian Ocean and to Mwanza, a port on Lake Victoria before crossing the border to Uganda.

It said it was looking to hire a contractor to conduct a feasibility study to determine current and future natural gas demand “by identifying all potential customers”. It did not give an estimated volume.

The study would also establish the most economically viable route for the pipeline, it said.

Tanzania boasts estimated recoverable natural gas reserves of over 57 trillion cubic feet (tcf), mostly in offshore fields in the south of the country.

In 2016 the two countries agreed to develop a crude oil export pipeline to help transport land-locked Uganda’s crude reserves from fields in the country’s west to offshore markets.

(Reporting by Elias Biryabarema; Editing by George Obulutsa and Susan Fenton)

EACOP Project Status And An Update On Important Projects

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By ALLAN OLINGO

Australia-based WorleyParsons and London-based Penspen are said to be the lead contenders to win the contract for the construction of the Uganda-Tanzania pipeline that will start in Hoima and terminate at the sea port of Tanga in northern Tanzania.

A source with knowledge of the matter told The EastAfrican that the two firms are likely to be appointed the engineering, procurement and construction management services contractors for the joint pipeline.

“These two are the lead contenders out of the six firms that the technical team from the two countries and the development partners are reviewing. A decision will be made in November,” the source said.

Last week, Uganda’s Energy Permanent Secretary Robert Kasande said that agreements with Tullow Oil, Total and China National Offshore Oil Corporation, who are jointly developing Uganda’s oil, could be signed in the next three months.

Tullow said in its half-year update last week that the Ugandan deal is expected in coming months as the upstream and pipeline front end engineering design (FEED) and upstream environmental and social impact assessment have been completed, and now await the award of the engineering, procurement and construction (EPC) contracts.“The contract awards are under evaluation and overall project sanction is expected by the end of the year. The joint venture partners continue to work towards reaching a final investment decision for the development project around the end of 2018, with operational activity continuing as planned.

“Discussions on the key pipeline project agreements continue between the joint venture partners and the Ugandan and Tanzanian governments. The pipeline FEED and EPC tender process for the pipeline have been completed with the award to be made in the second half of this year,” Tullow said, adding that the project financing for the pipeline and development of the financial model are ongoing.

Together with the oil firms, Uganda and Tanzania have been working on the projects financing blueprint for the past year. The two countries will raise 70 per cent of the project’s total cost from international lenders. The remaining 30 per cent will be raised through equity by Total, Tullow, CNOOC and the joint venture partners.

The Tanzania Petroleum Development Corporation and Uganda National Oil Company, through its subsidiary Uganda National Pipeline Company, are also expected to be part of the fundraising drive.

“We are delighted to be awarded this contract and we look forward to developing our relationship with Tullow Oil and increasing our business in Kenya,” Andrew Wood, the chief executive officer of WorleyParsons said.

The British firm Penspen is also not new to the region, having been awarded a contract in 2014 to undertake feasibility studies on the proposed Kampala-Kigali segment of the Eldoret-Kampala-Kigali pipeline. Penspen completed the study in 2015.

The pipeline was meant to interconnect with the one running from Nairobi to Eldoret and would ease the transportation of petroleum products to and from Kampala and Eldoret, including a spur line to Jinja.

Infrastructure development

“I am delighted that Penspen could be selected for this project. We are keen to contribute to the economic growth of this region through the development of oil and gas infrastructure, and we have a strong history of success in East Africa,” the chief executive officer of Penspen, Peter O’Sullivan, said.

Last week, Reuters reported that Tullow was considering reducing its stake in Kenya’s oil block from 50 per cent to 30 per cent before the final decision, with eyes trained on Total as the likely buyer.

The move would give Total a majority stake in the project. Last year, Tullow agreed to a substantial farm-down of its assets in Uganda to Total in a $900 million deal, about seven months after it received a production licence from the Ugandan government.

“Tullow and its joint venture partners, Total and CNOOC Ltd, are awaiting approval of the farm-down transaction from the government of Uganda. This approval is expected in the second half of the year. At completion of the farm-down, Tullow anticipates receiving a cash payment of $100 million and a payment of the working capital completion adjustment and deferred consideration for the pre-completion period, with $59 million for 2017 and an estimated $70 million for 2018. A further $50 million cash consideration is due to be received when FID is taken,” Tullow said.

However, for Tullow and Total, the past month has been particularly bad for businesses in the region, with unrest stalling Tullow’s operations in Kenya, and South Sudan pulling the plug on Total over some exploration blocks.

Last week, South Sudan’s Petroleum Ministry announced that it had called off talks with Total about developing two oil blocks.

“The Ministry of Petroleum regrets that negotiations with Total have concluded in no deal. Total and the government failed to agree on the duration of the exploration and the commercial terms of a production-sharing agreement. We now look forward to bringing new investors into talks for these licences,” Petroleum Minister Ezekiel Lol Gatkuoth said in a statement.

Total, alongside Tullow Oil and Kuwait Foreign Petroleum Exploration Company, have been negotiating since 2013 with South Sudan to enter into a new agreement for two oil blocks.

Tanzania’s Countrywide Push for Oil and Gas Exploration

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State-owned Tanzania Petroleum Development Corporation (TPDC) is set to start issuing invitations to tender next month for a variety of upstream-related work that includes offers to participate in exploration in the south and north of the country.

In early August, it plans to release bid documents to companies keen to partner TPDC in exploring the Mnazi Bay North and West Songo Songo licenses in the south of the country and Eyasi-Wembere in the north, where 150 kilometres of 2D seismic data needs to be acquired.

Offers would be due for submission on 23 August for the southern acreage and a day later for the northern block, with awards pencilled in for the 18 and 19 September, respectively.

Read:China State Owned CNOOC To Ensure Local Communities Are Benefit From Uganda Oil and Gas Sector

On 12 September, a separate ITT will be issued for the acquisition, processing and interpretation of 306 square kilometres of 3D seismic data over West Songo Songo.

On the same date, TPDC aims to release an ITT covering a 150-kilometre 2D survey in the Manonga area, south of Lake Victoria.

These two survey contracts are forecast to be awarded on 30 October.

On 19 September, bid documents will be released for a 142-square kilometre 3D shoot in Mnazi Bay North, targeting an award on 5 November.

One week later, bidding will open on a contract calling for 25,000 square kilometres of 3D seismic data to be acquired in TPDC-operated offshore blocks 4/1B and 4/1C.

This contract is scheduled for award on 12 November.

During October and November, consultancy services related to all these proposed seismic operations are due to be tendered along with consultancy services concerned with exploration drilling plans for West Songo Songo, Mnazi Bay North and the two deep-water blocks.

Separately, TPDC is assessing responses to an expression of interest it issued last month for a consultant needed to study and review the country’s Model Production Sharing Agreement, 2013.

The work — which will be carried out on behalf of Tanzania’s Petroleum Upstream Regulatory Authority — will be partly funded by the African Development Bank.

The successful consultant will be charged with improving the MPSA 2013 in order to come up with something more competitive in the global arena.

Also in Tanzania, the Ministry of Energy is evaluating responses from consultants to an EoI covering a baseline survey for the participation of Tanzanians in the oil and gas industry in Mtwara, Lindi and other coastal areas.

Mtwara, located close to the Mozambican border, is the chief logistics and marine base for offshore operations while Lindi, further to the north, will host a multi-train liquefied natural gas project.

The ministry has received funds from the World Bank to implement an energy sector capacity-building project which will be underpinned by data from the baseline survey.

Invitation to work on study for gas pipeline to Uganda

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Petroleum Development Corporation (TPDC) is set to issue an expression of interest document on 5 August for a feasibility study on the construction of a gas pipeline between Tanzania and Uganda, writes Iain Esau.

Responses to this inquiry would then need to be submitted by 26 August with bid documents issued to shortlisted contenders on 22 September.

Tender documents would then need to be filed by 14 October, targeting contract award on 9 November.

This ambitious pipeline would run from Dar es Salaam to Uganda via the port of Tanga on the Indian Ocean, Mwanza on the southern shore of Lake Victoria and the Kagera region of Tanzania adjacent to the border with Uganda.

 

Read :Aminex Persuade Oman-based Zubair Corporation To Invest In Notrya Field South Of Tanzania

Apart from an approximate 200-kilometre section between Dar es Salaam and Tanga, the route is expected to parallel the 1445-kilometre path of the East Africa Oil Pipeline, which will transport waxy oil from Hoima on the shore of Lake Albert in north-west Uganda to Tanga.

Currently, gas from the Mnazi Bay field in southern Tanzania is transported to Dar es Salaam by a China-funded and -built 542-kilometre pipeline.

Some 57 trillion cubic feet of recoverable gas has been found in Tanzania to date, mostly in its southern offshore waters, although some is held in a clutch of onshore finds in the north.

Much of the offshore gas will underpin liquefied natural gas developments but the remainder could find a ready market in Tanzania or possibly Uganda.