Solo Oil has announced that it has agreed to acquire a 10% interest in Helium One Limited  for a total consideration of £2.55 million  and has also been granted a 90-day call option to increase its investment in the company by a further 10%, for an additional investment of £4 million, which would increase its stake to 20%.

The initial investment by Solo Oil is divided into £1.2 million (gross) raised by means of a Company arranged subscription with institutional and private investors and £1.35 million through issuing new Ordinary Shares.

The call option to increase interest in Helium One to 20% by a further investment of £4 million by way of £2 million in cash and £2 million through issuing new Ordinary Shares.

The Helium One’s Rukwa Project in Tanzania has independently estimated by Netherland, Sewell  and Associates Inc. (NSAI) to contain unrisked most likely prospective recoverable helium volumes close to 100 billion cubic feet.

The investment comes as the global helium market is anticipated to see a sharp drop in supply in the next five years as the US Strategic Reserve ceases sales, and with helium’s increasing use in modern life, such as MRI scanners, to lifting and electronic applications.

“Solo has successfully invested in bringing several gas projects to market in Tanzania which are now reaching maturity from an investment viewpoint. Given the related pricing of petroleum gas and helium, which is globally in short supply, Solo has for some time been investigating opportunities in the helium sector,” says  Solo’s Chairman Neil Ritson.

Solo adds it has identified Helium One’s world-class assets in Tanzania as a compelling and complementary investment for Solo’s portfolio of oil and gas investments.

“Helium One’s portfolio of prospective helium projects in Tanzania provide Solo with a unique early stage investment into a potentially world-scale helium resource. The Company believes that Rukwa, together with Helium One’s additional project areas at Eyasi and Balangida, represent an attractive strategic investment, especially given the helium market’s weak supply dynamics and continued demand growth.

Amnex-proves-more-tanzania-gas-shares-fall

Helium One is an independent specialist explorer focussed on being a major supplier into the global helium markets estimated to be worth approximately US$6 billion annually.  The company benefits from an experienced Board with extensive in-country and industry experience. Helium One holds twenty-three Helium Prospecting Licences in Tanzania, including licences over the Rukwa Project with a most likely unrisked prospective recoverable helium volume of 98.9 bcf (as reported by NSAI).”

Global demand for helium is growing at a rate that is outstripping supply, which presents a significant pricing opportunity for future producers.

Helium supply is concentrated in only a few markets globally, mainly Algeria, Australia, Russia, Qatar and the USA.  Tanzania has been identified as a key country for helium exploration based on the evidence of surface gas seeps in the geological rift valleys adjacent to the Tanzanian Craton, as well as its strategic location for global exports through its deep-water port at Dar es Salaam.

 

Deep down you know it’s true. How’s difficult to gain oil and gas information in this country. Some people will require you to pay them big cash to teach you how to make money in this industry. Because I love you,  I’m giving you all this information for free. So no matter who you are. If you put to the use what I am going to share with you.

You’re not to be the same way again. You will be doing business with many oil and gas companies in Tanzania and make  you smile to your bank account.

Read also:The main Area-of-investment-in-oil-and-gas-sector-in Tanzania

But I want to be totally honest with you. I don’t want to baby you that you will make it overnight. These works once you have a good preparation,  being ready to work late hours and commitment to risk taking.

Do you want to learn how making  money in the oil and gas sector in Tanzania? So check these out:

  1. Find a decision maker- These are people who can say “yes”  or no to your offer.
  2. Get to a supplier list
  3. This is a personal industry contact never advertise on Newspaper
  4. For a Tanzanians, put a philosophy of local supply and services first
  5. Spend 80% of your time visit oil companies offices and rig sites and tell them what you can do for them
  6. Provide now or they will get from someone else
  7. Be honest. When you sit with client never promise what you can’t deliver
  8. Never say negative about your competitors products or services. Because you’re not expert of your competitor products and services
  9. Deliver on time or early
  10. Give good service, they will give more job
  11. Never argue with your client
  12. Have a presence of rigs sites and camps, as many oil and gas companies in Tanzania are exploration and production phase.So many buying decision made on field.
  13. Never give up. Keep on follow up. Regular visit will help you identify your clients need
  1. I prefer to work with oil companies than their drilling contractor because they pay with in 30 days
  2. Socialize with other oil and gas stake holder in Tanzania.Join our local chamber of commerce, attend industry events. Go and play with them golf, football and gain their trust
  3. Use your network wisely
  4. Keep updated with what’s going on

So what are you waiting for

Now, go out there and make it happen. Trust me, you will get back here with successful story.

If you found this information useful, leave a comment

    Hussein.Boffu

Email:Hussein.boffu@tanzaniapetroleum.com

Mobile +255655376543

 

Oil and gas companies in Tanzania buys almost everything,  They buy food stuff, to feed their employees in the job site.They buy fuel, such as diesel and lubricants. They buy industrial products such as valves, safety equipment, HR services, Transportation services. So you can do business with these companies provided that you know what you’re doing.

So how can you do business with oil and gas companies in Tanzania?   How do you get infront of those people and do business with them. Here’s how

1.Assess Your   Business

Is the first step in starting working with these international oil and gas companies. So you know exactly what you really do?  You should be able to define what your business does in a single sentence. And be clear about the goals and objective of your business.

Read:How-to-recognize-potential-business-opportunities-in-Tanzanias-oil-and-gas-sector-5-steps

 

2.Find a Decision Maker

Up to this point, you knock on oil and gas companies offices and try to meet decision maker. This is a person who can say “yes” or  “no” to your products and services. And ask him to get you into supplier list

  1. Never accept “No” as a Final answer.

If they say “NO” today, doesn’t mean will say No again next month. Do a regular visit so you keep your face in their mind, that way, you build trust to the client . If you spend 80% of your time to have a presence with oil and gas companies. You stand a great chanc to get a business.Because you will be the only guy  in front of them.

4.Deliver On time

With all that strategies, now they should give you a work to test your performance. Please deliver on time and do your work in great performance. If you do your first job well, they will give you more. That’s way you increase reputation of your company,

 

 Final Words

You can make a handsome money in this industry if you’re ready to go an extra miles. Go beyond your comfort zone.No magic formula. The secret to doing business with oil and gas companies lies on hardworking, honesty and patiency.

 

 

The major constraint that holds back many Tanzanians from grabbing the opportunity in the oil and gas sector is the lack of information about the current opportunities in this Industry.

Many local suppliers and services providers even job seekers don’t aware of the existing opportunity in this booming sector. This lack of information prevent many Tanzanian entrepreneurs from identifying project they might bid or the services they can offer.

But the simple  truth is, you can easily see opportunities in this industry if  you  know how oil and gas  really work,

Oil and  gas companies  will never knock on your door and tell you about coming opportunities

In reality,  oil and gas sector is the relationship industry. People in this industry they prefer to do business with people they know and like. And they are doing this because this is big dollar business, oil companies put a lot of risks to work or do business with people they don’t know. So you’ll never hear opportunities in this industry are advertised on the newspaper, radio or Tv stations.

And if you hear such kind of announcement perhaps would be the oil companies sell their share, so they want you to go  and buy their stock at Dar es salam Stock market.

Like what they did, An Australian based exploration and production company,  Swala Energy in  2013.When they announced to sell their share in Dar es salaam stock market. And Tanzanians flocked to buy.

So are you wondering how you can recognize oil and gas business opportunities in Tanzania?  Read on to find out.

1.Do your Homework

The first step of searching for oil and gas business opportunity in Tanzania is to find out what’s going on the regions where there are oil and gas activities in Tanzania such as Mtwara and Lindi.

Find out what are international oil and gas companies are there and what they are doing. Because each phase of oil and gas projects needs a certain kind of workforce and different types of products or services.  Are they search for oil and gas resources or the produced gas? Are they drilling or they are in the exploration phase.

Read:How-to-organize-oil-and-gas-event-in-Tanzania-and-make-millions

In fact, the kind of products and services required by oil and gas companies differ based on the stages of the oil and gas projects. Sound confusing, let me clarify

Example 01:Imagine an international oil and gas companies are doing seismic exploration on the southern part of our country. So here is an example of goods and services they will buy from you:

Drill bit                                       Foodstuff                             Dynamites and Caps

Fuel and Lubricants                   Freight transport                 Transporation

Parts and repairs service           Recording paper and magnetic tapes

Example two: If companies are drilling an exploration well. If you don’t know  an exploration well. Is well drilled to confirm if there’s sufficient oil and gas to be extracted

In this phase, they will need the following products and services

Drilling rig

Camp catering

Drilling bit

Drilling fluid supplies

Fuel etc

Example 03: If an oil and gas companies are production phase. That’s they bring oil and natural gas to the surface, they will  need to buy the following items and services:

Safety and consulting,

well drilling an testing,

electrical and mechanical installation and maintenance,

perforation, simulation, drill pipe and collars, safety equipment, wellhead equipment, boilers, oil field tools etc

So each stage of oil and gas projects offer different opportunities. So if you know who and what the oil and gas companies are in Mtwara there. You’ll equip yourself on what your business can do for them.

2.Knock on the door

Once you find what’s  going on the remote areas,  Then figure out what your business can do for the client.  As I told you earlier the oil and gas industry is the personal contact business, so never expect for the client to knock on your door so instead, you have to go for them. If you’re supply business approach their head office. Many oil and gas companies have their head office in Dar es salaam. Go try to sit down with purchasing manager and tell them what your business can do for them. Once you talk to procurement manager, be honest and never promise what you can’t deliver.

3.Visit  regions with oil and gas activities in Tanzania

To be honest with you,  Many oil and gas companies in Tanzania are in the exploration and production phase. So In this stage, many buying decision of products and services are made on the job site.

If you visit these companies several times you will easily get the information of what clients needs. Job site visits can also build the reputation of your business because oil companies believe that you can help them on emergency time and make delivery fast. So have a presence in Mtwara there and talk to field manager that you can help them with a particular  services or items

4.Follow Up

Never accept the “No” answer, If you visit your client today and respond that “ We have no business for you” never gives up. Thanks to him and tell him you will be back somedays.

This is important because the more you have face to face with your client, the more you build trust as result of making sales. Make follow up until you get sales or the client says “ You shouldn’t get back in our office again” otherwise you should get back to them. The oil and gas industry is a competitive industry.

To stand out in front of others you should  ensure constant presence  to the clients, This will enable you to know the existing situation  of your clients

5.Socialize with other oil and gas stakeholders In Tanzania

Here’s key on identifying opportunities in this industry.  Keep in touch with local employees who work with these multinational oil and gas members, join social groups for Tanzania’s oil and gas sector. Ask referrals for your friends. And attend oil and gas events in  Tanzania. And make sure you have high value interaction with  oil and gas stakeholders you meet.

There’s no magic formula, the business opportunity in the oil and gas sector are found through hard working,  preparation and honesty.  So if you really need  tap opportunities in the oil and gas sector in Tanzania,  you should stop doing what’s comfortable for you. And that’s staying  behind your computer screen, shooting an email to several clients and hoping  will gain a work from the oil and gas companies in Tanzania.

Instead, assess your business,go out there and meet as many  clients  as you can, follow up, and once you get a job, deliver early and on time.

        Hussein Boffu

Recent Petroleum Geoscience Graduate

Email:Hussein.Boffu@tanzaniapetroleum.com

Mobile+255655376543

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

It has been  confirm that joint venture partner in Kenya’s block 12B Australia’s Swala Energy has exited from the license as earlier reported.

According to communication from Tullow Oil the JV partner exited in October 2016 leaving the operator with 100 percent equity.

“In line with the Joint Operating Agreement (JOA), Tullow Oil has 100% participating interest in Block 12B as from October 2016,” Tullow Oil, Kenya BV communications manager Tim Tororey told OilNews Kenya.

Although no reasons were provided investigations by OilNews over the same period as compiled by HQ advisory reveal that Swala Energy was either unable to secure any funding to continue its activities or realize its assets thus very likely unable to contribute to the fulfill the commitments as per the agreement with the operator.

A statement of financial position over the period ending 24th June 2016 shows Swala Energy Kenya Limited had $2.3 million in loans of $16.5 million owed by the group against $0.1 million held by the group in various banks as per the time of the takeover by the administrator.

Swala Energy loans

Although the company had entered into an arrangement for a loan capped at $3 to fund activities in Kenya and to be repaid within 10 working days of a capital raising the administrator was of the view that the company was unlikely to raise any funds before 31st December.

 

Explaining the company’s reasons for the financial difficulties the directors notes that the legal dispute by Otto energy really diminished the chances to attract new investors or receive commitments from third parties to partake in transactions with the company.

Swala Energy loans 2

Swala’s complex international corporate structure was also unattractive to new investors or to raise equity augmented by the dip in the global oil and gas sector.

Trident Capital was shortlisted in late August 2016 as the preferred bidder for the acquisition of the company after the administrator advertised Swala Energy’s sale in June attracting 31 companies. Details as to how far the transaction has proceeded are not available with the deed of company arrangement set to be executed by 31st December 2016.

Swala and joint venture partners Otto Energy, Tata Petrodyne and MV Upstream are also at the risk of losing their Kilosa-Kilombero license in Tanzania with every indication they are likely to meet their commitment obligations following their ongoing dispute and court case in the Australian high court

images oil

Of course, you already know that oil and gas business in Tanzania is a real deal, This is business everyone wants to be involved in, because of high return it generates.

But the hard truth is there’s a lack of knowledge how this industry really work, and how to make money from the oil and gas sector in Tanzania,

Most people think this business is only for big boys or only for Arab and Asian Tanzanians who have big financial muscles.

I attended some of oil and gas industry events and conferences  and heard some of our fellow countrymen claiming that to get involved in oil and gas business it require big money.

I totally agree with this kind of mindset that most of us have.I agree that a great deal in oil and gas require a good money as well.

But let me tell you the first thing first.

The obstacle that holding you back from making money in this industry is not a CAPITAL but is a lack of right information and your  business model. It’s that simple

But never worry, In the next coming posts, I will show you, how very few Tanzanians make big dollars from this industry while you don’t. And also I will show you how they finance their oil and gas business.

But that’s a story for another day, the topic at hand is the easiest way for you to make money in Tanzania’s oil and gas sector.”

So if you’re keen on making money from the oil and gas sector but you lack start-up capital. Fortunately, there’s a solution.

And that’s Oil and gas Sales Representative.
Is the one most effective ways to help you get money from the oil and gas industry in Tanzania

Read to find out more.

Table of Content
So, What is oil and gas sales representative, Anyway?
Why oil and gas sales representative rocks for Tanzanians
How oil and gas sales representative works
Final Words

So, What is oil and gas sales representative, Anyway?
It refers to represent foreign oil and gas business/company in Tanzania. In other words, you introduce a foreign company to clients in Tanzania and get a commission for each purchase being made.
With the Tanzania’s oil and gas sector is booming right now, many foreign business and companies are eager to expand their business into Tanzania’s oil and gas market.So the oil and gas sales become hot right now.

Why oil and gas sales representative rocks for Tanzanians?
Here are reasons why we think you should look into it, too
.   1.You can learn the oil and gas business, like how the oil and gas companies buys.

2.You can learn what types of products are in dire demand in the oil and gas industry even in bad market

3.You can make industry contacts because you will meet different oil and industry professional.

But that’s not all. There are additional benefits to oil and gas sales representative, as well
              1.Easy to implement. You introduce the foreign company to oil and gas clients in Tanzania. You don’t have to worry about working capital to buy and resell products to clients, make a sales presentation, shipping, set up payment or anything else.All support is handled by the company you represent.

           2.It doesn’t require specialized expert: You don’t have to be an expert in oil and gas industry.You only need to know the clients in Tanzania or the end user of that products and services you represent.
           3.It’s low-effort and low-risk. Oil and gas sales representative don’t require significant time or money investment on your part. It doesn’t require you to have a company and deal with all stressful like paying tax etc,

How Oil and Gas Sales representative work
As oil and gas sales representative you introduce the foreign companies to clients or end user here in Tanzania. And you will get some percent/commission for each purchase made in your territory ( Tanzania) based on your agreement

Also, they will compensate you for the time you spend with them to meet clients. So your job is complete after that you wait to smile at the bank because the rest will be done with the company you represent in Tanzania.

This is a profitable business and you can make a lot of money for only one deal. Why? Because always oil and gas companies make a big transaction. So, Imagine you introduce foreign companies to oil and gas clients in Tanzania. And they sell drilling chemicals that cost 40,000 Us dollar. And in your agreed will be received 10% for each sale.

So your earn  4000 Us dollar which is equivalent  8 millions Tanzania shillinhgs. Which is the big cash.

Important things to consider in this business

So here are few points to put in your mind when you are going to tap this opportunity in Tanzania.
1.Set up an agreement with clear terms.
Before start introduces your foreign company to clients make sure you have entered an agreement with clear terms and condition.
Your agreement must show,
When you will receive your money from the date the purchase has been made.
The agreement should not require representing only one company.
    2.Trust
To build long term business relationship with these foreign companies, you should build trust with them by being honest with them and be honest with yourself.

 

I hope this help, if you find this article helpful, comment below or share with a friends, and subscribe to our email list to continue receive great article like this.

ntorya-123-location

Aminex plc, operator of the Ruvuma PSA in Tanzania, has advised that the Caroil-2 rig has been formally accepted on contract following inspection by an independent surveyor and that Ntorya-2 drillingoperations commenced over the weekend.   Spudding of the Ntorya-2 appraisal well is expected in the next few days.

The Ntorya-2 well is planned to be drilled to an estimated total depth of 2,860 metres and is targeting the same sandstone channel complex as found at Ntorya-1, but located further up-dip.

The well location is approximately 1,500-metre southwest from the Ntorya-1 discovery which (as reported in June 2012) flowed gas at 20 million standard cubic feet per day, with 139 barrels of associated condensate, from a 3.5-metre sandstone interval on test.

Aminex plc has 75% interest while Solo Oil has a 25% operating interest in the Ruvuma PSA and in the Ntorya-2 well.

A simmering  dispute between two Australian companies Swala and Otto Energy in Tanzania could have emanated from a failed joint farm-down by Tata Petrodyne Limited.

According to Swala Energy in it latest presentation to shareholders the two joint venture partners had earlier agreed on a joint farm-down by Tata Petrodyne Limited where it would get equity in both the Pangani and Kilosa-Kilombero licenses from both partners.

However the operator said it assessed that a joint farm down would add additional complexity resulting to a new agreement between the then JV partners that the Indian company would farm into just Swala’s 25% which it did in June 2015 with the $5.7 million transaction completed in the following October. There were discussions regarding Otto then farming down 12.5% to Swala.

Swala however blames Otto Energy for not going ahead to pursue the matter even after holding initial discussions around a draft farm-in agreement.

Thereafter in early February 2016 Swala blames its Australian counterpart of delaying drilling at Kito prospect located in the Kilosa-Kilombero license with the backing of the new entry partner Tata which has now been pushed to 2017. The operator argued the delay to the commitment well on technical and financial grounds and Tanzania Petroleum Development Corporation (TPDC) also declined to allow the request

“On the 22nd February 2016 Otto’s lawyers contacted the Chairman of Swala Energy Limited (Australia) (SWE) demanding payment for the (incomplete) Pangani farm-down – coincidence that this was done 6 days after not getting their own way on Kilosa-Kilombero?. We discussed possible mechanisms to progress the farm-in, but Otto presented obstacles,” says Swala CEO David Mestres Ridge.

Swala claims that Otto’s argument is flawed as its assertion that the directors of SWE had controlled the actions of the board of Swala is wrong as there are just two directors and four ‘independent’ directors.

“Those SWE directors had removed ‘Otto’s money’ from Swala and sent it to SWE (actually, we sent $2.51 million and retained $3.2 million in Swala); and – Therefore (so the argument) the SWE directors should, through their insurance, reimburse Otto for a transaction that Otto has chosen not to complete – it has had 14 months to transact,” Ridge adds.

Otto in May commenced a legal action against against Swala, current and certain former directors seeking to recover a gross amount of approximately US$1,000,000 plus alleged damages in relation to the Pangani licence of which the partners have told the TPDC of their desire to relinquish  after the technical review of the licence showed no structures of commercial interest. Swala Energy said they intended to defend such legal action with vigour and, having taken initial legal advice, were of the opinion that Otto’s claim had no legal merit.

Otto Energy has also gone ahead to push for the removal of Swala as the operator after defaulting in various cash calls.

These notices relate to:

  1. defaults in relation to non-payment by SOGTP of cash calls and associated interest accrued under the JOAs;
  2. claims by Otto Tanzania for payment of interest accruing under the JOAs as a result of SOGTP’s defaults, amounting to approximately US$360,000; and the removal of SOGTP as Operator of the Kilosa-Kilombero licence area following SOGTP’s failure to satisfy the joint venture partners that it is not insolvent.

Otto Energy has since reached a farm-down agreement with MV Upstream Tanzania Limited (MV Upstream), a joint venture between Vegas Oil & Gas Limited, (Vegas) and Motor Oil Hellas SA (MOH) in respect of the assignment of a 25% participating interest in the Kilosa-Kilombero Licence onshore Tanzania.

The matter now being progressed in the Australian courts

 NOBLE GLOBETROTTER II

                     Drilling Ship  NOBLE GLOBETROTTER II



Despite the low oil prices, oil and gas projects are progressing in Tanzania.
We see Amnex company has contracted a drilling ship called Caroil rig 2, and now they are drilling in southern part of Tanzania

Also, Shell and its co-partners, has announced to start drilling of two exploration wells since the end of October.

And the drilling company  that has contracted for this project is called Noble Globe Trotter 2.
So what does all this mean to you? This living testimony that opportunities are immense in the oil and gas sector in Tanzania.

And you can take part of this booming sector in Tanzania by offering products and services to the companies operating in Tanzania.

But, what are these companies buy? And when they buy products and services? Relax! Because In the next few minutes, I will list the products and services you can supply to these projects. Why is this article essential for you?

Because it will help you to find your fit in the Tanzania’s oil and gas supply chain and reap substantial reward from this booming industry. So stick with me all the way to the end of this article.

Technically speaking these drilling programs that shell and Amnex are doing, they are grouped in upstream business of the oil and gas supply chain. So what is upstream? Simple.
To be clear, upstream is the part of oil and gas sector that cover everything from finding oil and gas resources and drilling them so as they can be transported to the place where they can be refined or converted into finished products for consumers.

So the kind of things these oil and gas companies buys in these upstream projects or when they are in drilling stage of natural gas wells in Tanzania include the following

1. Logistics and transportation
In order for these oil and gas companies to be able to drill such wells, they require moving a lot of people, equipment to the workplace
2. Food supplies
Drilling operations that shell and its joint venture partners, Ophir Energy and Pavilion  energy will take place in deep water. People there has to be fed, so food has to get there.
3. Engineering and Construction Services

4. Maintenance services

5. Fabrication services of various types for the equipment

6. Electrical and Instrumentation services. As all of you know for the deep sea or offshore projects is huge of mechanical and electrical equipment.That’s why electrical and instrumentation services are in dire demand

7. Drilling fluids and Chemicals. So thinks like bentonite, sodium chloride, calcium chloride, fresh water system is considered in this stage

8. Human resources services: This includes supply of temporary and permanent labors, such as technicians, engineers, welders etc

9. Safety materials: All safety products from Gloves, Helmets, coverall, Safety shoes, up to goggles

So if you are offering  such products and services, think about approaching these oil companies that currently have projects in Tanzania. And with a good approach, you’re smiling at your bank account with huge cash.

Be warning, If you’re outside Tanzania, end you really want to benefit from this supply chain, partnering with local companies is the way to go. Because they know the local business and culture. That way, you build a business relationship with local companies that result in the win-win situation.

If you have anything feel free to get in touch with me at Hussein.Boffu@Tanzaniapetroleum.com or 0655 37 65 43. And I will be glad to answer you.
Good luck to you: spend wisely because the oil and natural gas will never last forever in our country