C.E O Aminex Purchases 492,341 Shares Of Company

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The chief executive  of  London AIM-listed Aminex, Jay Bhattacherjee bought 492,341 shares of Aminex stock in a transaction dated Friday, July 13th. The shares were bought at an average cost of GBX 2 ($0.03) per share, for a total transaction of £9,846.82 ($13,033.51).

Shares of Aminex opened at GBX 2.20 ($0.03) on Wednesday, MarketBeat.com reports. Aminex plc has a one year low of GBX 2.60 ($0.03) and a one year high of GBX 6.20 ($0.08).

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

Aminex holds a 75% interest in the Ruvuma production sharing agreement (PSA), with UK Solo Oil 25%.

Swala Oil Will Not Extend Tanzanian Deal Deadline

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Tanzanian-incorporated Swala Oil & Gas, a subsidiary of the Australian concern Swala Energy that operates the onshore Kilosa-Kilombero fields, has  announce on 16th July that it will not extend the deadline to complete
the previously announced investment by Swala in PAE PanAfrican Energy Corporation, a subsidiary of Orca Exploration Group Inc. (“Orca”), of up to US$130 million (the “Swala Investment”) for any specific time period.
The extension pertains to tranche 2 and tranche 3 and does not impact tranche 1 which closed on January 16, 2018. The decision was taken in consideration of the
uncertainty in the timing of the regulatory approval of Swala’s prospectus and listing application in Mauritius. The decision not
to extend the deadline does not terminate the Swala Investment and Orca continues to support Swala’s efforts in closing its
financing. However, Orca may terminate the balance of the Swala Investment at any time.
Dr. David Mestres Ridge (Swala CEO) said: “Swala and Orca will continue to complete the process started earlier this year, but
do not believe that either company is served well by agreeing to timelines that are outside of their control.
The process inMauritius is advancing at creditable speed but oil and gas is a new investment area and the regulator has spent time thoroughly
understanding the Swala prospectus. Our understanding is that the prospectus will be reviewed by the Executive Committee of
the SEM this coming week and are already engaging with Tanzanian and overseas investors in anticipation of an early closing

Orca Exploration Extend Its Deal With Swala Energy

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Canadian independent Orca Exploration Group has “indefinitely” extended the timing for the closing of tranches 2 and 3 of its deal with Tanzania’s Swala, it said July 17.Orca-owned PanAfrican Energy Tanzania (PAET) operates the shallow water Songo Songo gas field, one of the longest producing fields in Tanzania in which the Canadian firm has reinvested profits.
 Orca has already extended the deadline at least once for Swala to achieve key stages in the up-to-US$130mn acquisition of a 40% interest in PAET.”The decision was taken in consideration of the uncertainty in the timing of regulatory approval of Swala’s prospectus and listing application in Mauritius,” the Toronto-listed firm said adding: “Orca’s decision not to set a specific date to complete the second and third tranches does not terminate the Swala Investment, and Orca continues to support Swala’s efforts in closing its financing.”

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

Orca did however say that it retains the right to terminate the extension at any time. 
 Swala already acquired a 7.9% stake in PAET worth $17mn in December 2017 and still wants to scale up its stake to 40%. But the government in Dar-es-Salaam announced in late February that it was putting the deal on hold, pending further review.Orca said last year it was looking to boost Songo Songo’s production capacity to 180mn ft3/d, from nameplate of 155mn ft3/d but restrictions on capacity meant it only produced 37.4mn ft³/d (Songo Songo is its sole producing interest) in 1Q 2018. It lost US$4.6mn that quarter, thanks to ongoing loan repayments to the World Bank and a one-off fee that the bank was entitled to charge on the 7.9% asset sale to Swala.

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

Exxon Beefs Up Mozambique LNG Project to Cut Costs Ahead of Bank Talks

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LONDON, July 12 (Reuters) – Exxon Mobil will expand its Rovuma liquefied natural gas (LNG) project in Mozambique by half to cut production costs as the partners prepare to book the plant’s supply and formally tap lenders in September, the company told Reuters.

The U.S. oil giant took charge of the East African LNG project’s onshore operations following a $2.8 billion deal with Italy’s Eni last year, adding to its slate of planned gas projects in Qatar, Papua New Guinea, Russia and the United States.

It now aims to build the world’s biggest liquefaction units, or trains, outside Qatar, in Mozambique’s remote north, shelving former operator Eni’s more modest blueprint in pursuit of cost savings to boost returns on investment.

“The larger train design will lower the unit cost of the Rovuma LNG project and ensure a competitive new supply for the global LNG market,” Exxon spokeswoman Julie King said in response to emailed questions.

Under new development plans submitted to the government this week, Exxon’s first two liquefaction trains should each produce 7.6 million tonnes per annum (mtpa), with a start date in 2024.

Eni initially planned 5 mtpa trains.

The Italian oil major holds the offshore resource licence to Area 4, which contains some 85 trillion cubic feet of gas in place to be supercooled into a liquid and exported on ships to world markets.

Super-sizing the first two trains means having to renegotiate a resource-sharing deal Eni struck in 2015 with rival LNG project developer Anadarko Petroleum, which owns the neighbouring Area 1 licence, industry sources said.

A geologically porous section of Area 4 covering the Mamba and Prosperidade fields straddles Area 1. This effectively means Exxon-Eni would pump gas away from Anadarko’s adjoining reservoir to feed its LNG plant.

“Area 4 and Area 1 stakeholders have agreed on the Unitization and Unit Operating Agreement (UUOA) which has been presented to the Mozambican government for approval,” Exxon’s King said.

Anadarko spokeswoman Helen Wells said the company was engaging with the government and Area 4 to address any concerns and ensure the UUOA benefits all involved.

COMMERCIAL STRUCTURES

Mozambique’s two rival LNG projects are ramping up to take final investment decisions (FID) in 2019 and both are teeing up buyers and loans to underpin hefty construction costs.

But there the similarities end.

Anadarko Petroleum’s approach involves raising a record $14-$15 billion from banks and export credit agencies (ECAs) to fund the build. At the same time, it is lining up long-term LNG sales deals with external companies in China, Asia and Europe to guarantee the loans.

Exxon in contrast will finance a larger share of costs from its own pockets as well as drawing on project partners, including Eni, Korea Gas Corp and China National Petroleum Corporation, bank and industry sources say.

Exxon said it expects Rovuma LNG financing to originate from a mix of “external lenders and joint-venture party funding.”

“We have begun initial engagement with lenders and are planning a formal kick-off event in September 2018,” King said.

Exxon already approached those ECAs that backed Eni’s Coral South Floating LNG project in Area 4 last year, sources said.

For its part, Anadarko engaged commercial banks on May 21 after having first secured interest for about $12 billion from ECAs.

Production from Rovuma LNG will also be treated differently.

While Anadarko sought out buyers from France’s EDF to Britain’s Centrica and Japan’s Tokyo Gas, Exxon is holding talks for binding sales and purchase agreements for Rovuma output with subsidiaries of its Area 4 project partners.

“We expect sufficient interest from the affiliate buyers to launch the project and support the financing,” King said. (Reporting by Oleg Vukmanovic, editing by David Evans and Alexandra Hudson)

Top 5 Reasons To Attend The 2018 Upstream Oil and Gas Launch In Tanzania

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The upstream oil and gas awards launch in Tanzania is the only month away and registration is open. The event happens August 17 at the Serena hotel in Dar es Salaam.

Here are the top five reasons to attend:
1. Meet face to face with Exploration and production companies, government agencies and make valuable contacts
2. Network with industry leaders and decision-makers in the upstream oil and gas sector in Tanzania
3. Uncover the business and investment opportunities abound Tanzania’s oil and gas sector

4. Find out the recent industry development, this will help you understand where the industry is headed
5. Gain new perspectives from top-level executives and industry leaders.

Canadian Orca Exploration Appoints New C.E.O

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Canadian firm Orca Exploration Group   on July 9 announced that W David Lyons has decided to step back as CEO for personal health reasons but will continue on in his capacity as Chair of the Board. At Mr. Lyons’ request Alan Knowles has agreed to act as Interim CEO and to avoid conflicts of interest will step down as the Chair of the audit committee and as a board member.

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

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AAIM-listed Aminex said July 11 it has agreed to farm out a 50% stake in its Ruvuma exploration licence, onshore southern Tanzania, to Oman-based Zubair Corporation – which already owns about 30% of Aminex – in a deal that could be worth up to $40mn. The licence includes the Ntorya gas discovery with almost 1.9 trillion ft3 (53bn m3) of gas in place.

Aminex said that Zubair plans to assign the 50% stake to ARA Petroleum Tanzania (a company under formation), which will be an affiliate of Zubair’s Eclipse Investments.

The deal however illustrates the reluctance of other international operators to increase their exposure to Tanzania, at a time when its populist government has interfered extensively with the upstream industry as well the mining and power generation sectors.

ARA Petroleum Tanzania would become operator and conduct a minimum work programme of: drilling and testing  Chikumbi-1 (formerly Ntorya-3) as soon as reasonably practicable; acquiring and processing 200 km2 of 3D seismic; and establishing an early production system of at least 40mn ft3/d gross. It would also pay Aminex $5mn cash: $3mn on deal completion, $2mn 180 days later.

Aminex would be fully covered for its share of costs up to $35mn, in respect of its remaining 25% post-transaction interest, which it said implies a potential expenditure by ARA of up to $105mn for its 75%. In the event that 40mn ft3/d gross output is achieved before Aminex’ 25% interest having been carried for the full $35mn, ARA will assign 25% of its share of profit gas to pay the unspent carry up to $35mn.

Aminex noted that Ntorya has 1.87 trillion ft3 gas initially in place, according to a 2017 report by independent reservoir auditors RPS Energy Consultants. The farmout, which requires Tanzanian government approval, is expected by Aminex to be completed prior to November 30 2018. Tanzania has been slow to provide such approvals recently; nonetheless Zubair said its deal “emphasises our firm belief in the Aminex portfolio and in Tanzania.”

Aminex said the deal will free it up to develop further its Kiliwani and Nyuni assets, elsewhere in Tanzania. AIM-listed Solo Oil executive chairman Neil Ritson said it “provides a clear commercial and technical validation of the Ntorya project, which we hope will now move quickly towards production.”

Credit: Naturalgasworld

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

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                                CNOOC official In Hoima

 

In a bid to have locals gain employment in the oil and gas industry, China National Offshore Oil Corporation (CNOOC) has urged communities in Hoima to invest in education.

The company, which is developing oil fields in Hoima, seeks to acquaint learners in the region with the oil and gas sector as a way of ensuring that local communities benefit from the natural resources.

 

More than 20,000 casual and skilled laborers mainly those with technical skills including welders will be required during the development of the oil production related infrastructure including Kabaale oil refinery and the related crude oil pipeline connecting the refinery to Tanga port in Tanzania, according to the Petroleum Authority of Uganda (PAU).

 

Read Also: China State Owned CNOOC Sees Likely Start of Uganda Oil Field in 2021

Aminah Bukenya, the CNOOC Uganda senior public relations supervisor, said this on May 17 while presiding over Best Performers awards for the 2017 best students in the district.

“The awards affirm our willingness to be a good neighbour to the communities in which we operate and commitment to a win-win situation with its stakeholders in the region,” she said.

CNOOC recognized and awarded 90 best performers in PLE, UCE and UACE under its Corporate Social Responsibility Program codenamed ‘CNOOC Best Performers Awards.’

In all, the learners shared amongst themselves Shs 28 million. The money is meant to help them with tuition as they progress to higher learning institutions. CNOOC started the initiative in 2012 and to date, about 420 students have benefitted.

Meanwhile, Daniel Muhairwe, the Buhaguzi MP, urged other oil companies operating in the Albertine graben to look into supplementing government effort to promote vocational training as a way of preparing the local children for jobs in the oil and gas industry.

Kadiri Kirungi, the Hoima district chairman, hailed CNOOC for its continued support towards education. He, however, highlighted the desire to change from awarding cash and resort to sponsoring at least 15 students at university every year.

The Best And Worst Ways To Find A Job In Oil and Gas Companies In Tanzania And East Africa

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Oil and gas activities, such as pipeline construction and extraction of oil and natural gas, create thousands of direct and indirect jobs in Tanzania and East Africa.

But when people search for job in the oil and gas sector, they use trial-and-error methods. Most people don’t succeed with this approach.

This article looks at a variety of strategies being used to find jobs in oil and gas companies.

Each of the strategies comes with different advantages and drawbacks. In this article, I’ll give you an overview of the pros and cons of each strategy.

I will show you the strategies that work, so that you can apply them in your job search.

You’ll find this article resourceful if you’re currently employed but looking to switch jobs, if you’ve lost your job, or even if you’re a college student interesting in jobs in the industry.

The strategies work whether you’re looking for a job in the proposed East African Crude Oil Pipeline project or you’re looking for opportunities in oil and gas companies operating in Tanzania.

The following are the strategies for searching for job in the oil and gas industry.

*1. Through Recruitment Agencies.*

These are agencies that place qualified candidates for a job opening in a company looking to employ. They are also called *staffing or employment agencies.* These agencies receive commission when they successfully direct candidates to employers.

Recruitment agencies focus on meeting the demand of the employer but not necessarily to find a suitable job for you. Their goal is to make the employer happy.

Don’t get me wrong. I’m not against using the service of these employment agencies-they do a good job linking qualified candidates to the oil and gas labor market. But the point I want to make is that these agencies are more suitable for the experienced and the professionals. If you have some years of experience in the industry, you may use the service of these agencies in your job search.

Seeking a job through recruitment agencies is not a good choice for an entry-level job seeker. If you’re inexperienced, I will strongly suggest you forget about recruitment agencies.

Be aware that there’s an increase in the number of bogus recruitment firms, and they usually advertise jobs opening online, asking you for payment and promising jobs in prestigious oil and gas companies or projects such as the East African Crude Oil Pipeline (EACOP) project.

Most victims discover too late that the jobs they have been promised do not exist. Legitimate recruitment agencies do not ask candidates to pay. Instead, they earn commission from the employers. You should obtain sufficient information on the recruitment agencies before making a commitment.

2.Online Ads and Newspapers.*

These are job opportunities announced in the newspaper or online magazines.

Many job seekers rely on this method. They search online job sites and/or read a number of newspapers. Once they find job adverts, they send their resume and cover letter hoping the human resource manager will call you back. And they send applications to hundreds of oil and gas companies.

The sad thing is that they get no reply.

It can be discouraging. Getting a job in the oil and gas sector using this approach is a bit frustrating because it attracts thousands of applicants and put you in fierce competition.

In other words, even if you have a good qualification, your chances of getting an interview is slim. If you’ve been spending your precious time and energy on this approach, you’ll be better off reducing it drastically.

*3. Networking.*

Career counselors suggest that you can find a job in any oil and gas company if you know someone significant in the company or at least someone who can introduce you to the prospective employer. This person may be one of the company’s business partners or a top-ranking employee of the company.

Here’s how they suggest you do it.

You reach out to 15 people who you already know and who are capable of introducing you to 3 people each.

So, you’ll have 3 new contacts in 15 places. That’s 45 people. Ask these 45 people to introduce you to 3 people each also. That’s 135 new contacts. Regarding this, the belief is that you will have all the contacts in the industry someday.

Honestly, this approach does not work well as they suggest. Some people won’t be in the position to introduce you to anybody.

If you decide to use this approach, start with people you already know personally. Tell your friends and family that you’re looking for contacts in the oil and gas industry. Reach out to your old schoolmate or your phone contacts. If you do that, you’ll at least get a few contacts.

The oil and gas industry is a “personal-contact industry.” Networking leads to information and job leads, often before formal job description is posted on newspapers or online magazines.

Proper networking will go a long way in ensuring you successfully find s job.

*4. Direct Contact.*

This is the best and most effective strategy of all. Career counselors rate the direct method as the key approach to getting a better job in oil and gas companies. This method works in the real world in every sector.

Direct contact means you’ll introduce yourself to the prospective oil and gas employers. The reason this approach is more effective is because it puts you closer to decision makers in the companies that build trust, relationship, and give you a job.

This approach makes you stand out from other job seekers who rely solely on newspaper ads or on trial-and-error methods.

*Which Strategies Should I Apply?*

If you’re looking to get employed in oil and gas companies in Tanzania, the best methods to seeking for a job are:

1. Direct contact. This is actually the best.
2. Networking. This most often lead to making direct contact.

Recruitment agencies may be useful for the experienced and the professionals, but online ads and newspaper announcements are one of the worst methods of getting the jobs.

The Low Oil Prices And National Economy And Tanzania Oil and Gas Sector. Effects And Outlook

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The oil prices fall from over $ 100 per barrel In June 2014 to under $ 29 per barrel in January 2016. We have seen the oil price downturn is counting. And nobody knows for sure when the price will recover.

The simple truth is oil price crash has both good and bad consequences to the national economy and oil and gas sector in Tanzania and East Africa.

Effect of Low Oil Price In Tanzania’s oil and gas industry

Tanzania oil and gas value chain has four segment, exploration, production marketing and distribution of oil and natural gas.

The low oil prices affect each of these segment differently. The low oil prices discourage exploration activity. But the higher oil price is the primary motivation for the exploration, development and drilling activity. Tanzania involves two types of oil and gas companies:
1.Major oil and gas companies- These are companies involves in everything from discovering, developing, producing and marketing of oil and natural gas products. Such as Royal Dutch Shell

2.Small or independent oil and gas companies- They only discover, develop and extract natural gas. Example are Uk- based firm Aminex
To cope with low oil prices, major gas companies such as shell may shift investment on the downstream segment of the oil and gas industry- refining, marketing and distribution of petroleum product so as they can benefit from the low petroleum products prices.

They can shift to other oil and gas producing countries, and small gas field being left to small gas companies. The low oil prices may have a severe negative impact on small, independent oil and gas companies because they don’t have such options of shifting the investment to the downstream segment of the industry
When oil prices increase, exploration activity flourishes in the country. The number of rigs is also doubled.

But good prices alone won’t increase exploration drilling and development activities. The key motivators for exploration and development activity to flourish are a good profit.
And this is achieved by reducing production cost. To minimize production cost, companies should develop exploration and development technology that can do more with. Increase efficiency of exploration and development field through good geological knowledge.

And the decision makers should implement policies that associate with risk to explore and develop gas and oil field incurred by small oil and gas independent operators such as tax and investment incentives.

Since the oil and gas sector in Tanzania and East Africa are dominated with small, independent oil and gas companies, good policies should be implemented that associate with risk to explore and develop gas and oil field incurred by small oil and gas independent operators.
To increase profit and make exploration activity more attractive, decision makers should improve tax and investment incentives.

The Effect Of Low Oil Prices In National Economy
The lower oil price s has an impact not only on the oil and gas industry but to the entire economy. The simple truth is that what may be bad for the oil and gas sector is good for state economy or vice versa. The positive effect in decline oil prices is less money is spent in importing oil and related petroleum products.

Tanzania does not produce oil, so we are a net importer of crude oil and refined petroleum products. Drop in oil prices means that less money is invested in the importing of the products. Direct and indirect job losses are bad consequences to the national economy. The job losses in the oil and gas industry may increase health expenditures.
The lower oil prices reduce foreign direct investment in the exploration and extraction of oil and gas, the government might millions of dollars that would come from tax and royalty revenue

Outlook

The oil prices fall from over $ 100 per barrel In June 2016 to under $ 29 per barrel in January 2016. At the end of 2017, we saw supply and demand rebalance.

And in the mid of 2018, the outlook looks bright as company start to spend again.
The Royal Dutch Shell drilled exploration offshore well in Tanzania but found no oil and gas. Also, Norwegian Statoil has drilled offshore well in Tanzania.
And Uk-based firm Amnex , announced to go forward with the drilling program of its onshore well Tanzania.

So companies have started to spend money again. And that’s is good news for everyone in the energy sector. The Tanzania oil and gas outlook looks a lot brighter than the past two years

                                                              Hussein.boffu@tanzaniapetroleum.com

                                                                +255655376543