Things Look Better For Aminex Now

London based independent exploration and production firm focused in Tanzania, Aminex, announced a farm-out update.

In their latest operational update, the company confirmed that it’s received  the Tax Clearance Certificate from the Tanzania Revenue Authority(TRA).

TRA has sent the tax clearance certificate to the state-owned oil company, Tanzania Petroleum Development Corp. (TPDC), to be forwarded to the Ministry of Energy. Aminex has accomplished all the conditions within its power for closing the farm out.

In March, the company announced the extension of its Tanzania license.

With both oil prices and market are improving, Personally look for what I would call, the long-awaited Chikumbi-1 drill.

East African Oil, Gas Activity Updates: Mozambique LNG project Updates, Aminex Farm-Out Updates, and Signs of Recovery in the Oil market.

Hello all.

Happy Friday and welcome to the top energy pick of the week. Your weekly look into the industry trends projects key development in East African oil and gas industry

My strongest recommendation to you is that, remain safe, wash your hands and be positive, the industry and our families will emerge stronger from this downtime .

Let’s dive into this week’s content

Oil Market Begin to Improve Following a Months of Historic Lows- IEA

According to the International Energy Agency(IEA), one of the leading energy agencies in the world, the oil market is recovering gradually from the latest low emerge from the impact of novel coronavirus and oil price war between the major oil-producing countries.

Why the oil market shows a sign of recovery? Because demand for oil depends largely on transportation. Think about the need for transportation, airline truck companies, commercial and industrial sector users. As the countries gradually reopen airports means airlines improve flights. and truck companies put more trucks on the road, the demand for oil increases.

Furthermore, with people getting back to work means truck companies put more trucks on the road. And industrial and commercial users of oil increase their spending. Which in turn raises the demand for oil.

Aminex Inches Forward in Farm-Out- Energy Voice

For those of you that might be new to the London based independent exploration and production company, Aminex story here is a quick re-cap.

In March 2020, the company announced that has received the Mtwara Exploration Licence. As part of the ongoing process to obtain Tanzanian Government approval.

So, Tax Clearance Certificate from Tanzania Revenue Authority (TRA) and the Minister’s approval were the only remaining conditions for completion of the Farm-Out.

On 19 May 2020, Aminex reported that it has received Tax clearance Certificate which is a legal requirement to enable the Ministry of Energy to approve the Farm-Out.

Robert Ambrose, Chief Executive of Aminex commented:

 “This is a major milestone. With the receipt of the Tax Clearance Certificate from the TRA and with the onward submission to the TPDC, Aminex has now accomplished all of the conditions within our control in order to complete the Ruvuma Farm-Out.”

Read full article

Total Secures $14.4 Billion Funding For Mozambique LNG project- Reuter

Aminex has identified a profitable asset. The company has now submitted the tax clearance to the state-owned national oil company, Tanzania Petroleum Development Corporation (TPDC) to be forwarded to the Ministry of Energy. And with strong financial and technical input from ARA petroleum. It is clear that you are going to see Aminex is developing and commercializing Ruvuma project into the next trillion cubic feet(TCF) of gas

And Eni-Exxon Mobil-led 15.2 MTPA Rovuma LNG projects are expected to reach FID early 2020.

The article notes that “French energy major Total has secured $14.4 billion funding for its Mozambique liquefied natural gas project in Mozambique”

Total-operated Mozambique’s 12.88 million tonnes per annum (MPTA) LNG project reached FID on June 18, 2019. And production is planned to start 2024.

In September 2019, Total acquire Anadarako’s 26.5 % interest in the Mozambique LNG project for $3.9 billion. Give it a read.

Is Aminex About to Deliver a Game-Changing Farm Out in Tanzania.

With the oil market improving, business starts to reopen gradually and people returning to work, Aminex is expected to unlock some serious value from its Tanzania assets.

I have been following Aminex story from the very beginning. So suffice to say the company is going to surprise stakeholders who are participants in the oil and gas sector in London and East Africa..

For those of you that might be new to the London based independent exploration and production company, Aminex story, here is a quick re-cap.

In July 2018, Aminex agreed to “farm out” 50% interest of its Ruvuma acreage onshore Tanzania to Zubair Corporation’s associate, Ara Petroleum Tanzania limited.

Under the deal, Aminex assigned the operatorship to Ara Tanzania Petroleum Limited to do the actual drilling of the Chikumbi-1 exploratory well and interpret 3D seismic over 200 km square.

Additionally, on November 6, Aminex announced that its field partner, ARA Petroleum Tanzania Limited, has started the process to establish a local operation office in Dar es Salaam as well as already hired managerial personnel to maximize the efficiency in their Tanzania projects.

Furthermore, in its latest announcement, the company says that it has submitted the 2020 Work Programmes and Budgets for all licenses to the Tanzanian authorities for approval.

In March 2020, the company announced that has received the Mtwara Exploration Licence. As part of the ongoing process to obtain Tanzanian Government approval

So, Tax Clearance Certificate from Tanzania Revenue Authority (TRA) and the Minister’s approval were the only remaining conditions for completion of the Farm-Out.

                     The Future is Bright

On 19 May 2020, Aminex reported that has received Tax clearance Certificate which is a legal requirement to enable the Ministry of Energy to approve the Farm Out.

Robert Ambrose, Chief Executive of Aminex commented:

 “This is a major milestone. With the receipt of the Tax Clearance Certificate from the TRA and with the onward submission to the TPDC, Aminex has now accomplished all of the conditions within our control in order to complete the Ruvuma Farm-Out.”

                             What’s Next

Aminex has identified a profitable asset. The company has now submitted the tax clearance to the state-owned national oil company,  Tanzania Petroleum Development Corporation (TPDC) to be forwarded to the Ministry of Energy. And with strong financial and technical input from ARA petroleum. It is clear that you are going to see Aminex is developing and commercializing Ruvuma project into the next trillion cubic feet(TCF) of gas

Developing Your Career in Oil, Gas to be World-Class Professional and Industry Leader.

Dear Oil and Gas Professionals

What if you could develop your career in oil and gas and become a manager or a leader in your organization. What if you will be rewarded greater recognition, status, and power in your company? What if you will be rewarded a larger office, a higher title, and a raise?

 How much fun would you have in making a greater contribution to your organization? 

Imagine having the perspective of the CEO of an international oil company, or the Director-General of a National Oil Company: how much more could you achieve, what opportunities could you seize?

The simple truth is that management opportunities open up for skilled professionals with broad industry knowledge and the ability to think strategically.

Technical expertise is not enough: to become a leader means understanding the geopolitics, the technology, the finance, the many different stakeholders – as well as knowing how to get the best out of a team.

Developing Your Career to Become World-Class Professionals and Industry Leader

So What’s holding you back from developing your career in oil and gas? A successful career in oil and gas depends on a thorough understanding of the industry’s complexities. 

Introducing……

                    The 3 Day MBA in Oil and Gas

To help talented individuals like you develop their career in oil and gas .We are introducing 3 days MBA in oil and gas training programs. You will benefit from an intensive, challenging and in-depth course on the upstream oil and gas business that gives you real insight into how the industry works?

Join this well-established programme to understand the strategic dynamics of the industry and take your career to another level. We developed this highly-rated course to meet the need for a fast, but comprehensive overview of the upstream industry, to help prepare executives moving from a technical role into a more general management role. It’s a practical and interactive programme, with limited technical content and extensive use of case studies and exercises.

  Delegates Will

Have greater impact in dealing with senior executives, colleagues and partners.

 • Improve their decision-making skills.

• Improve their ability to identify opportunities and create value for their firm.

• Understand the key dynamics shaping the petroleum business today.

• Understand the latest trends impacting the exploration and production value chain

. • Benefit from a network of new contacts within the industry

WHO SHOULD ATTEND

Managers and senior professionals aiming to take on leadership roles in the oil and gas industry will benefit from this course. As your career develops and you take on wider responsibilities, you will need a broader understanding of the industry’s complexities. Whether you are in an NOC, IOC or working for a service company or professional adviser, this programme will give you a perspective that is hard to get amongst day-to-day pressures, but is vital to long term success

BOOKING

2 easy ways to book:

1. Call us – Tel: +255655376543

2. . Email us: hussein.boffu@tanzaniapetroleum.comToggle panel: Disable Wpdevart facebook comment

Covid-19 Impact on EACOP, LNG and Ugand’s Tilenga Projects. Project Status and Industry’s Response.

Hello all.

Welcome to the top energy pick of the week. Your weekly updates on projects and key development in the East African oil and gas space.

My suggestion to your families is that remain safe and healthy, wash your hands, and be positive. Our industry and our family will emerge stronger from this downtime.

This spotlight provides insights on the Coronavirus impact on the East African oil and gas projects and the industry ‘s response. This spotlight highlight status updates of the brightest projects in East Africa. East African crude oil pipeline (EACOP), liquefied natural gas (LNG) projects, and Uganda’s upstream Tilenga project.

Let’s dive into:

TOTAL deal catalyst for Uganda Oil COVID-19 Should not delay Upstream FID

This is a great article show the East African oil and gas response on COVID-19 is unique. While many operators have placed a huge emphasis on cost reduction and some are terminating the project. On April 23, Total announced to acquire UK based Tullow oil company’S interest in the Uganda Lake Albert project. The deal worth $575 million.

The deal is a living testimony that the future is bright in the East African oil and gas industry.

The article argues that COVID-19 can’t affect the final investment decision on the Tilenga project. But the execution of the project can be challenging if borders are shut down the movement of people and goods across the borders. Especially if most of the supply chain will be sourced from overseas.

Uganda -Tanzania Crude Oil Pipeline Construction Plannedene for 2021

The article highlight the status of the $3.5-billion East African Crude Oil Pipeline project as well as Tanzania’s LNG project. The article highlight the construction of the East African crude oil pipeline project is expected to begin in April 2021.

Industry analyst project that new project sanctioning at risk. And everything in the second year at risk. Considering cash flow is struggling. So financing is the most important element right now.

What’s Next?

Covid-19 had an indirect and direct impact for some but most operators and planned projects who gas and oil aimed at the domestic market seem to be relatively secure. Projects will be delayed. But not all. Some of the East African LNG projects should go through. If you think about mega Mozambique’s LNG projects will continue to deliver its capacity.

Oil and Gas Drilling Updates in Tanzania

With the latest low oil price emerging from the impact of coronavirus pandemic and oil price war between major oil-producing countries, only those who are flexible will emerge stronger.

But survival in the oil-and-gas business means embracing change: changing things that are in your control and implement useful strategies quickly.

In periods (like this) when oil sells for a lower price in the global market (compared to the previous years), issues and opportunities will still exist.

With the low oil price expected to last until 2021 or 2022, the oil-and-gas industry should change the way it operates.

This uncertain market condition is the time to obtain the required approvals with the view to starting drilling or even production when the market springs back to life.

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

Take, for example, imagine a company that implements smart strategies during the periods of low oil price. Precisely, a company that targets assets which remain profitable during those periods but are likely to exceed the investor’s expectation when the oil price goes up in the global market.

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

If Aminex was a person, its nickname would be “The Survivor” for its ability to sustain itself during uncertain market conditions and remain active in Tanzania despite the global industry crash from 2014 to 2016, and its ability to continue pushing its Tanzania’s project despite the current oil market condition.

Last year, the completing the Farm-Out remained a primary focus of the company. The company submitted the 2020 Work Programmes and Budgets for all licences to the Tanzanian authorities for approval.

In May 2019, the company announced that it has received the long-awaited extension of the Mtwara Exploration Licence. This is a giant milestone for the team at Aminex.

The company also signed a farm-out deal with Zubair Corporation’s associate, Ara Petroleum Tanzania Limited.

The company will not only benefit from financial input but also from the experience of personnel of Ara Petroleum Tanzania Limited.

With the growing power demand in Tanzania, the presence of the Chikumbi-1 drilling project means additional gas supply to the region.

The Drilling of the Eagerly-Awaited Chikumbi-1 Well

While oil-and-gas companies love talking about seismic wireline logging, aeromagnetic surveys and all other boring stuff, investors love to see drilling.

My analysis is that, step-by-step, day-by-day, Aminex is moving closer to the drilling event and becoming another gas producer in Tanzania meeting the ever-growing demand in the region.

We hope to witness Aminex and Ara Petroleum announce the drilling programs of Chikumbi-1 well as the company continues to remain active in Tanzania despite the global oil-and-gas industry downturn.

And who knows? Hopefully, my next publication will be “Aminex and Ara Petroleum hit significant gas reserves in Tanzania.” It would be great for all participants in the oil-and-gas sector.

Somalia to Launch Offshore Licensing Rounds

Somalia will launch its offshore licensing rounds in August putting on sale seven oil blocks as the Horn of Africa nation seeks to exploit its vast oil resources.

The Ministry of Petroleum said Tuesday the launch will be done online in light of the ongoing COVID-19 pandemic.

“The 2020 Somali licensing round features up to 7 blocks that are up for the bidding process which are estimated to be among the most prospective areas for hydrocarbon explorations and production in Somalia,” the Ministry said in a statement.

“This licensing round will open on 4th of August this year and will be closing on 12th March 2021.”
Ads By GooglePetroleum Minister Abdirashid Mohamed Ahmed said the launch of licensing round provides an opportunity for Somalia to present to potential investors oil exploitation opportunities.

“This event is the starting point to allow the Somali Government to better showcase the vision that our country has for our petroleum and gas industry to potential foreign investors,” said Ahmed.

The Minister noted Somalia ‘is committed to attracting investment and promoting partnership and business in all segments of the oil and gas industry value chain.’

Oil majors Exon and Shell returned to the country in February where they agreed on a joint venture with the Federal Government which saw them pay pending surface rentals amounting to $1.7 million.

Somalia had set January 2020 the deadline for completion of licensing rounds following a London oil conference in February 2020.

The Upper House passed the amended Petroleum Law in February which incorporates a Revenue Sharing model between the Federal Government, Federal Members States and oil producing districts.

South Sudan Oil & Gas Licensing Round Affected by Covid-19

As Covid-19 spreads its infectious tentacles ever further and tighter around the globe, it is no surprise to see the knock-on effect of the pandemic on licensing round plans throughout the world.

South Sudan, the world’s youngest country had planned to launch its first license round in Q1 2020, with 14 blocks in the north of the country on offer. However, with uncertainty around the state of the industry post coronavirus, the launch has been deferred indefinitely. South Sudan produces 178,000 bpd but hopes to reach 250,000 bpd soon.

100 Job Applicants, No One Qualified: Skills Shortage and What Oil and Gas Companies Can Do About It

Back in 2016, I was in the office of one of the independent oil-and-gas exploration and production companies in East Africa.

As I presented my services, the manager asked whether I can help them with recruitment of a local slick line/wire line engineer with 10 years’ work experience.

Although I was not a recruiter, I could never afford to reject the opportunity to save the manager and his team cost, trouble and months to find the perfect candidate to fill the position.

The manager sent me the details and requirements of the worker they needed. I went out to find the perfect candidate to fill the vacancy.

I reached out to numerous workers in my cycle of contacts and database. I created an advert and posted on the internet and social media networks. I spent tons of hours hunting for whom to fill the single position.

I received resumes from over 100 applicants, both local and international candidates.

But I could never find the qualified person with requisite expertise and experience to fill the position.

Although some of the international applicants had the skills and experience needed to fill the position, they weren’t target audiences. The organization wanted to hire a local worker and not an expatriate.

I felt overwhelmed and frustrated.

So out of 100 applicants, I picked the resumes of the 30 local applicants that I thought might be the perfect candidates for the vacancy and submitted them to the manager.

My favorite e-mail came from the manager. He said not one was qualified.

Why Good People Can’t Get Oil and Gas Jobs: The skills Shortage and What Oil and Gas Companies can do About It

From that experience, some questions popped into my head. Why can’t brilliant and talented people get great jobs in the oil and gas industry even when these jobs clearly exists and needed to be filled? And what can be done about this?

Why do companies need months of hunting to fill a mid-level single vacancy? What are the root causes for the skills shortage across the industry?

Training Shortage and Not Skills Shortage

As I dug to the root of the problem, I heard some people complaining about lack of academic skills and technical capability among jobs applicants.

Furthermore, the course content doesn’t meet the oil-and-gas industry expectation.

There are those who complain about lack of work experience. Now permit me to look deep into each of these complaints.

It is totally untrue to claim that the deficiency in academic and technical capability is why good people can’t get job or is the main cause of skills shortage.

In the oil-and-gas business, you have to know things before you do them. Prospective workers have a college degree or ordinary diploma in an oil-and-gas related curriculum. So, they have basic knowledge and understanding of the industry.

On the other hand, lack of experience isn’t a reason for skills shortage across the industry. Because nobody can get experience in college. That’s where training comes in. And the goods new is that most of the oil-and-gas skills are largely learned on job.

The important reason bright people can’t get job across the industry is because employers want a field-ready candidate.

They want workers to start contributing right away without any further training program or ram up time. So, these days to get jobs you need to be job-ready.

This narrows the supply of competent people in the industry.

The pressure to stay competitive in today’s business world has led many organization to demand more from their existing workers and they will do same from their future employees.

And to cope with the oil price volatility, many companies have put internal training development into the list of things to downsize. In today’s economy, employers want new personnel to start contributing with no further training. But people who can do that are those who have partially done the same job before.

Significant Impacts to Oil and Gas Companies

But the skills shortage has significant negative impact on the oil-and-gas companies’ shareholders. Skills shortage increase high employment costs. It also declines productivity because you have to spend months to fill mid-level positions, which in turn lowers productivity, decrease profitability and finally create bad stock. And everyone loses.

Make Training and Development Payoff for The Oil and Gas Employers

As you have just seen, individuals are partially responsible for the skills shortage in the industry.

But the problem is likely linked to the inability of weak employers to promote internal training and development companies.

So if the cost is stumbling block to invest in training and development, how do we make training programs pay off for the industry? How do you address skills shortage?

That’s where I can help.

If you ask me how you can address skills shortage in East Africa’s oil-and-gas industry and what you can do to raise the competitiveness of the sector to become world class and internationally competitive, my answer would be pretty simple:

Encourage all oil companies to promote internal training and development programs and make these training programs pay off to them. No more than such…

Encouraging collaboration between universities and oil-and-gas employers has become a little bit frustrating because employers don’t see immediate pay-off with these kinds of arrangement.

The solution isn’t to push problems to regional universities, and colleges aren’t only the option.

Placing huge emphasis on the regional universities and let them off courses content that meet the need of the oil and gas employers. It is also not only the strategy.

What can be done about this?

In-house Training: Running in-house training programs is the best option for many employers because it beats the cost of importing expensive experts into the country and it saves companies time in hunting and filling the vacancies in the organizations.

If you can’t fill leadership positions in your organizations, why don’t you set up in-house training programs to create your own managers?

If you can’t fill production manager positions, why don’t you set up in-house training programs to create your own productions managers?

Are you wondering how you can fill reservoir engineering positions? Run in-house training programs to create your own reservoir engineers.

That’s the way to address skills shortage. That is the perfect solution to moving local capacities from just users to world-class professionals and industry leaders.

That’s the way to boost productivity engagement and improve performance. That is how you propel the East African oil-and-gas workforce competence to become world-class and internationally competitive for the benefits of business communities and countries.

Who Will Own the Oil and Gas Jobs of the Future

In reality, the oil and gas industry is one that creates high-paying jobs that generate sufficient income. Not only do good jobs elevate people’s well-being and happiness but they help to propel the economy towards more equitable.

To operate and function more efficiently than in the past, oil and gas companies are adopting new technology and new software.   

Machine learning and artificial intelligence have become a hot topic across the industry.

So what happens if technological advancement will take away more jobs in the industry?

From Now On, You are also an IT professional.

I don’t care if you are a petroleum engineer, a maintenance engineer, a project manager a geologist, an accountant, a commercial manager, a reservoir engineer, or a geoscientist, whatever you do you are also an IT professional.

It is simply, not possible now to deliver a remarkable contribution to your organization without being proficient in technology and new software.

It can be impossible to own the oil and gas jobs of the future if you are unable to use sophisticated technology.

It can be tough to become an irreplaceable and indispensable employee or simply “fireproof” if you don’t learn about new processes and new technology.

Real-world examples

Most Oil field service companies are using QuickBooks as their accounting system. 

Furthermore, Exploration and production companies have adopted new software to do seismic acquisition design.

If you are an accountant, you are coming into our industry, learn as much as you can about new software being used in the real world. It will enhance your skills and improve your productivity.

If you are a Geoscientist or an Engineer, the one bit to tell you right is to take some big data analytics and machine learning classes.

The future is the ability of our workers to learn new processes, new techniques, and new software.

That is the way to beat the competition and own future oil and gas jobs.

 The oil and gas industry is a paperwork-heavy industry. 

Many oil and gas companies still have existing paperwork backlog, repeated tasks, and many manual tasks. Professionals sometimes are sorting through a stack of paper to get information. But these simple things cause a delay in the process and eating up hours for professional staff who have better things to do.

By familiarizing yourself with a piece of software to carry out that manual paperwork or repeated task, it can save most of your working time. And thereby making you look good in your organization for saving the company time and for simplifying a complex process. 

As we enter the knowledge economy that will demand more sophisticated skills For Survival

The oil and gas industry, although still quite complex, no longer requires heavy lifting as it was in the past. Most of the jobs have been replaced with advanced electronic systems that require brains, not brawn.

So don’t fear new technology and machines. 

But takes advantage of them. If you are professionals that you can install, maintain, and utilize this new technology will never take away your job.

Look for software solutions that have been added to oil and gas operation. More specifically what software can you learn that can save you tons of time. And make you more productive in your work

If you find yourself there tasks that take you a lot of time to complete.? Ask yourself if there is software that you can learn that will free up your profession and improve your efficiency.

Most of the gas discoveries in East Africa were made in deep-water. There created a demand for more sophisticated skills in the region. Furthermore, the day of easy oil is over, while knowledge of engineering and geoscience are still relevant. As young professionals must also, be equipped with digital skills and advanced computational and simulation model techniques.

                        Modernize Your Skills For Survivals

Survival in the oil and gas industry is your ability to embrace change quickly. To own the job of the future, you need to modernize your skills and strategies to meet technological changes and emerging trends in our industry and society.

is That’s the way to improve your performance, save the most time, and prepare yourself for the future the great jobs in the oil and gas.