Oil and Gas Training For Students

“The global oil volatility has exerted the pressure within the universities to continuously supply top talents in the upstream and downstream business, to solve forever sophisticated problems faced in the industry.” Says Dr. Abdul Halim Abdu Latiff, head of Center for Subsurface Imaging (CSI) at the University Technology Petronas (UTP) in Malaysia.

Furthermore, industrial revolution 4.0 and technological development and exciting and new projects, all influence continuously skills improvements

We address this need with the multidisciplinary online students training program to “ raise the performance standards of work competence of young professionals in oil and gas industry to become internationally competitive and world-class professionals who can make a bigger contribution at work”

Aims and Objectives of this Program
Our ultimate objective is to raise the standards of work competence of young professionals to become world-class and internationally competitive for the benefits of business communities and countries.

Further objects are to:

To Transforming young professionals from just users to world-class professionals who can add more value to their colleagues, to the organizations and country.

Target Audience
Students with a background in Geology, Geophysics, Petrophysics, Reservoir engineering, petroleum engineering, and petroleum geosciences and petroleum geology.

Why You Should Attend this Training Program?

  • Keep pace on technological advancement in the oil and gas industry
  • Stay competitive in today’s job market characterized by technological innovation
  • Increase your productivity
  • Acquire Certificate of Courses completion

How This Training Program Can Help My Company and My Business
For companies which want to enroll their young professionals, this training program can help your business to:

  • Reduce the cost of employment and manageable risk
  • Increase local content Instantly
  • Stay competitive and increase your productivity
  • Keep pace on technological advancement
  • Solve recruitment difficulties
  • Build a motivated, flexible and loyal workforce
  • Train people in line with industry standard

Our Mentors
Mentors play a key role in every phase of the program. Many of our mentors or trainers are having many years’ hands-on practical experience for the many years in the major national and international companies such as CGG, BP, Shell, Apache, PDO, SPDC, ADNOC, Schlumberger and are proficient in the use of the software being used in the industry and so can give specific workflow suggestions. Students are free to ask mentors questions at the end of each session.

Implementation
Step 01:A team of six to nine students with backgrounds in geology, geophysics, Petrophysics and reservoir engineering are picked and agreed on the courses they want to learn. See below the list of our courses we offer
Step 2: The confirmed mentors and mentees are matched according to the time zone at their location. Notifications are then sent to mentors and mentees with an introduction and the mentors start the training session

Step 3: Mentors send materials, technical papers to all group members and the monitor the progress and track the discussion points. Mentors also send materials.

Enrollment of Candidates
Our course takes five days (days)And the maximum number of students for the course is nine.
Your investment for your career advancement is 900$ per week (5 days) i.e it is about 18-20 hours for 6 to 9 students maximum, attend in the same place. This means that the cost per student in the week will be 150$ if 6 attend or 100$ if 9 attend. Course fee cover tuition, learning materials and certificate of completion
This training program is coordinated by Hussein Boffu and technical support is provided by SEISENERGY Services of EGYPT, a group of trainers and mentors with many year’s hands-on experiences for the many years for the major national and international companies.

Feel free to contact Hussein Boffu via Hussein.boffu@tanzaniapetroleum.com or +255655376543 if you have any questions.

Courses

                      We provide  basic capability development in following areas:

Geophysics 

1.Seismic Acquisition design and operation  

The objective of the course is to create and then develop an understanding of the role of one of the most effective tools in both exploration and development phases. This course develops ability in the analytical aspects of seismic field acquisition, particularly to the design of customized seismic strategy, field tests, quality control techniques and cost efficiency and manage the operation of the seismic acquisition process and implement very accurate and strict HSE measures. Using software design wizards to verifying any seismic acquisition design parameters. QCING seismic attributes for optimizing seismic acquisition design.

2.Seismic Data Processing  

The objective of the to create and then develop an understanding and familiarity of the theoretical and geophysical background of processing algorithms, Quality Control and Quality assurances for each processing step to ensure having optimally seismic data product from seismic data quality perspectives. High end seismic data processing FWI and Tomography Q Depth Imaging   High end seismic processing that could help in development stage of the oil/gas field through knowing highly advanced seismic data processing to interpret the seismic data looking for structural trapes to stratigraphic trap which is more challenging to seismic resolution. High resolution velocity model will reveal complex geology imaging with very good clarity. The ability to conduct innovative seismic QC/QA for seismic data processing time and imaging to have outstanding seismic product. Moreover, seismic reservoir characterization QCing of any seismic data processing time and depth imaging.

4- Seismic Interpretation. 

 The objective of the course properly interprets the data and give the true picture of the reservoir and its actual extension they have to have knowledge about the area petroleum system and utilize all the available information and gather them before start clicking buttons. Minimizing drill risk or gas escape hazards will be achieved if seismic interpretation is trustable and fault and fracture liniments will be interpreted accurately and calibrated with well logs especially FMI logs.

5- Seismic Stratigraphy:

In East and west Africa offshore seismic stratigraphic technology could permit identification of oil/gas bearing rocks of upper Triassic, Jurassic and lower Cretaceous sequences in strata and their identification requires the integration of seismic data with lithological and environmental facies, biostratigraphy, radiometric and well logs information. Nowadays stratigraphic interpretation needs oriented acquisition, processing, and interpretation. Tailored acquisition, processing for stratigraphic trapes are essential to give better vertical resolution (the thickness of the unit) and horizontal resolution (the areal size of the features).

6- Seismic Reservoir Characterization:

Seismic Reservoir characterization is to gain the value from seismic resolution beyond the imaging to gain petrophysical parameters of the reservoir rocks such as porosity, fluid saturation and pore pressure

prediction, Fracture characterization is the way to place the well trajectory properly to de-risking the drilling operation and help in the well casing design for highly pressurized deep targets. Fracture is the main corridor of porosity of tight rocks and study its intensity and orientation is another adding value of the seismic recording nowadays than in the previous decades.

                                                    Petroleum Geoscience

7- Exploration Geology:

Exploration Geologist will sustain the geophysical experience if the Basin and Petroleum Systems Modelling (BPSM) which has a bright future as the oil and gas industry looks increasingly to mature field development. Integration of BPSM with various disciplines such as Petrophysics, and reservoir engineering which will help maturing the unconventional petroleum systems as well. Exploration geology is steering the searching of oil/gas prospectively potential areas integrating well information, logs, cores or analogues outcrops of the same geological column with seismic and drill exploration wells is an optimum working flow for increasing the exploration plays.

8- Reservoir Geology/Engineering:

Reservoir engineering is another wide experience of the worldwide engineering and monitor the reservoir performance and precisely monitoring the reservoir surveillance through conducting 3D/ 4D time lapse seismic acquisition and track accurately the injectivity of fluid or gas will improve the reservoir performance and lead to more successful perforation. Proper Statics model, Dynamic model history match, well completion will help increasing OOIP, IOR, EOR, Simulation.

9-Formation Evaluation.

Logging methods and interpretation techniques. Discussions on conditions around the wellbore, effects on measurements of mud filtrate invasion. The terminology of well logging, formation and fluid properties. The physical principles involved in geophysical well logging. Differentiation between gas, oil and water zones and shale estimation. The Archie Equations in clean formations and estimation of water saturation. Types of cross-plots, gas and shale effects. Effects of shaliness and modified equations. Core analysis and laboratory measurements of saturation and rock properties and their application to reservoir studies.

10-Prospect, Evaluation, Risks, and Volumetric calculations.

For geoscientists working in exploration, for prospect portfolio analysts and for their direct supervisors. It is also a very instructive course for staff from disciplines working closely with exploration staff, such as reservoir engineers, Petro physicists and geophysicists. In order to having good understanding of the essentials for realistic risk and volume assessments of exploration prospects. A well-considered and realistic assessments for prospects to be working on, and to understand and constructively challenge risk and volume assessments.

11-Sedimentology and Depositional Environments of Onshore and offshore deposits.

The theory and application of sedimentology and depositional environments of onshore/offshore East African Basin. Detailed petroleum system study utilizing all existing information; geology, geophysics and geotectonic stress regime could help to reveal untapped oil and gas reserves and establish a road map of developing leads and prospects.

12- Prospect and Play Assessment.

All exploration team members and leaders including geologists, geophysicists, geochemists, analysts, reservoir engineers, economists, planners and managers who make business decisions based upon exploration data. To provide knowledge and unique tools for practical, systematic, predrill assessment of potentially recoverable oil and gas and to use the best available methods with trap volumetric and hydrocarbon charge for prospects, and potential numbers and sizes of prospects for plays.

                                      Drilling Engineering and completion Engineering

13- Offshore Systems.

Course will accelerate the learning and productivity of individuals with little to no experience working in the offshore oil and gas industry. The course provides an overview of field development concepts and explains how offshore structures and facilities function as integrated systems.

14-Well Design and Engineering.

Well Design and Engineering integrates all major well design technologies from pre-spud to TD. The single most important goal of the course is to draw the linkages between the design topics and to leave the participants with an understanding that each decision has influence on those that follow. On the last day, each team presents their completed design before the class and an invited panel of industry professionals

15-Completion & Workovers.

To emphasize the role of engineers and field operators in planning and executing the workover operations to maintain and increase field production and thus add to the profitability and recoverable reserves. It also emphasizes the significance of the team concept as a factor in optimizing operations success.

Oil and Gas Exploration Updates in Somalia: Shell, ExxonMobil Return to Somalia

 

Somalia has agreed on an initial roadmap with a joint venture between ExxonMobil and Shell on offshore exploration and development, the country’s petroleum ministry said on March 2.

Exxon and Shell held rights to five offshore blocks prior to the overthrow of former dictator Mohamed Siad Barre in 1991, but these concessions were subsequently suspended. The pair agreed last year to pay Somalia $1.7mn relating to past rental fees and other obligations at the projects.

Read  also: Oil and Gas Explorations Updates- Tanzania

The new roadmap paves the way for the conversion of the previously agreed concessions into production-sharing agreements (PSAs), the ministry explained.

“I am delighted we have agreed on an initial roadmap with the Shell/Exxon joint venture,” petroleum minister Abdirashid Mohamed Ahmed said in a statement. “This gives us confidence in our ability to explore any offshore hydrocarbon potential further.”

Last month Somali’s president Mohamed Abdullahi Farmajo signed new petroleum legislation into law, aimed at opening up the war-torn country to oil and gas development. The legislation introduced a new PSA model and was aimed at providing “fair treatment” to holders of concessions prior to 1991. It also established the Somali National Oil Co. (Sonoc), which is expected to take part in upstream operations.

 

Oil and Gas Drilling Updates In East Africa

Despite the recent low oil price, the East African oil and gas industry is still hot! Here are the inside story and drilling updates in East Africa.

   1. Great Expectation: Aminex On Its Way To Drill In Tanzania

London based Independent exploration and production company reports positivity with its Tanzania operation.

In its latest shareholders updates, the company says that the positive signs in its Tanzanian assets reflect progress with projects.

“While we continue to engage in constructive dialogue, Aminex and APT are working diligently to progress workflows such that when the approvals are given, we can move quickly into an operational phase and deliver first gas from Notrya and begin remediation Work on Kiliwani,”

“ As yet, no formal update has been received from the Government of Tanzania in regard to our licenses, however, we have had positive indication in-country that the government is approaching a place where it can update the international oil companies”- Says Tom Mackey, Aminex chief executive.

As said in our last update, the year 2019 was a big one for Aminex PLC. It already secured a drilling contractor to drill Chikumbi-1 well. It 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. The company also submitted its 2020 working program to the Tanzanian authority.

So, we are keeping a close eye over the coming months for announcements from the company confirming the permitting and contracting process is on track.

  1. SAIPEM 12000 drilling Ship to Drill Six Subsea Wells In Mozambique.

Mozambique is leading gas developments in Sub-Saharan Africa.

In a recent interview, Guido Brusco, EVP, West Africa, of Italy’s Eni, told the global business report that

“In, Mozambique we already made the final investment decision for a floating LNG platform at Coral South, where 50% of the construction is already complete and the project is well on schedule to start production in2022. The Saipem1200 drilling ship is already in the country to drill six subsea wells that will feed the facility” 

Read also    Oil and Gas Potential In Mozambique

As the region seeks to meet the ever-growing need for power, suffice to say the opportunities are immense across the East African oil and as a value chain.

 

Oil and Gas Potential In Mozambique

 

Exploration success has raised Mozambique’s profile as an emerging leader in LNG.

According to Wood Mackenzie, the country is expected to become the largest gas producer in sub-Saharan Africa and the fourth largest in the world by the mid-2020 with a total liquefication capacity of approximately 30 metric tonnes per annum (mtpa) once LNG facilities are fully operational.

In terms of the announced project, Mozambique took the lead in Sub-Saharan Africa after Nigeria. Two LNG projects reached the final investment decision (FID) in two years.

The first FID on the Eni-led 3.4 MTPA Coral South Floating LNG project was reached on May 2017. The project is well on schedule to start production in 2022. 

 Total-operated Mozambique’s 12.88 million tonnes per annum (MPTA) LNG project reached FID on June 18, 2019. And Eni-Exxon Mobil-led 15.2 MTPA Rovuma LNG projects are expected to reach FID April 2020.

With positive signs reflect progress with projects, suffice to say, Mozambique is considered to be one of the East African countries that will maximize the foreign investment. In the past few years, the region has attracted the world’s largest oil and gas companies to operate in the country including French giant Total and United state Supermajor ExxonMobil.

                                              Substantial Gas Volume

Following the discoveries of numerous gas fields that are totaling 125 trillion cubic feet(TCF) by both Italy’s company Eni and United stated company Anadarko. Most interest has focused on the offshore Deepwater Rovuma Basin in Northern Mozambique.

 

Using Africa’s Substantial Gas to Meet Ever-Growing Need For Power

The Annual Sub-Sahara Africa upstream oil and gas summit and exhibition will be held on 14th to 18th, 2020 at  Park Inn by Radisson, Kigali, Rwanda, with a full four-day program that aims to bring you the best of Sub-Saharan Africa’s upstream oil and gas sector to discuss the potential and challenges the industry faces.

 

This year’s summit will provide opportunities for practitioners and investors to showcase what we already have, exchange ideas on what we are doing right and what we can learn from each other-West Africa learning from east Africa, east Africa copying best practices from West Africa and South Africa.

As Africa competes for investment capital. There  are big opportunities to use Africa’s substantial gas resources to meet the constant and ever-Growing need for power

That is why the theme for this year’s summit is   ‘’Harnessing African Gas Potentials To Power Developing Economies’’

 

The summit is an important platform to tackle some pressing issues in the sector , including funding, skills shortage, and technology .

“Like in any sector, the challenges are there, but the way we are approaching the challenges is focusing on opportunities and talking to regulators. If regulators are upfront with investors by telling them what they need to do and then we get a checklist, that’s all an investor wants to know.

The other challenge is funding. On the other hand, it is technology. In terms of manpower, Nigerians are as brilliant as any other part of the world. What we have not been able to put together is our own funding mechanism. Another issue we have not perfected is technology.

We know that if you have the right personnel, you know the fiscal policies of the country, then you can bring a huge pocket to your advantage, then you buy the technology and then we can deliver” Says Dapo Ayola, Chief executive officer, Sub-Sahara Africa Upstream Oil & Gas Summit & Exhibition.

Whether you are a Geoscientist focused in exploration or you are in HSE, Engineer, Community Engagement Officer, an investor, you are invited to join us in Kigali Rwanda on on September 14-18

 

Oil and Gas Explorations Updates- Tanzania

In 2019 we have witnessed oil and gas operating companies are pushing their exploration and drilling programs in order to become the next gas producer in the region by 2020.

 And the current gas-producing companies continue to improve their gas production level. But what are the future holds for Tanzania’s oil and gas exploration?

                      Great Expectations

The rest of 2018 and 2019 was encouraging. A number of drilling projects planned for 2019. This shows encouraging signs for near-term future exploration, development and production in Tanzania.

 For example, Dubai Dubai-based Dodsal group is preparing to drill two exploratory wells and one appraisal well. As at the time of writing, mobilization of the rig and associated services are underway. 

Unlike other gas discoveries, which are offshore, Dodsal discovery is on shore and located just 50 kilometers of Dar Es Salaam, make it easier for commercialization

The drilling program is expected to last for two months, from February to April 2020.

Read also:The Foreseeable Future Of Tanzania’s Oil and Gas Exploration

.

It reported the company is hoping to bring the field into production and be ready to produce its first gas in 2020, aiming at playing vital roles in developing a new source of gas supply to domestic customers, power customers.

Swala Oil and Gas (Tanzania) is another operator with drilling plan in Tanzania

 Swala owns 75% interest of the Kilosa-Kilombero license. At kilosa-Kilombero, Swala has identified a prospect called Kito.

Kito has a lot of similarities with the Lokichar Basin in Kenya where Tullow has discovered massive oil reserves. Swala is committed to drilling one well in the Kilombero-Kilosa license in Morogoro region.

The drilling project of Kito-1 well has been frequently postponed. Originally planned for 2016, after the delay in obtaining permit, it was postponed to 2017. And last year, the drilling programs were postponed to Q4 2019.

Furthermore, in its latest announcement, London based firm, Aminex  says that it has submitted the 2020 Work Programmes and Budgets for all licences to the Tanzanian authorities for approval.

The submitted programmes include the cost of drilling Chikumbi-1 well and the acquisition of 2D and 3D surveys over the Mtwara license, all for US$40 million

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.

With continued economic growth in Tanzania, will come an increased gas demand. These signs indicate that the future for the oil and gas exploration activity is real bright.

The Foreseeable Future Of Tanzania’s Oil and Gas Exploration

Tanzania has a rich oil and gas exploration history with substantial natural gas discoveries totaling over 57 trillion cubic feet. But the recent low oil price creates uncertainty for the foreseeable future of the oil and gas exploration.

Fast Returning  Of Tanzania’s Oil and Gas Exploration

As oil price recovers gradually after a major slump, signs indicate that oil and gas companies are getting ready to explore, develop and extract so as they can supply much-needed gas in Tanzania.

In September 2019, Dubai-based Dodsal Group announced that they prepare for the drilling of three exploration wells in Ruvu block located 50 kilometers of Dar Es Salaam. Drilling is set to start by Q4 2019. It reported that Dodsal expects to implement an Early Production System to bring gas to market, hoping to produce to bring the field into production and be ready to produce its first gas in 2020, aiming in playing vital roles in developing a new source of gas supply to domestic for the industrialization and electrification.

Read:Dodsal Group Prepares To Drill Three Wells On Shore Tanzania

Furthermore, On November 6, London-based independent exploration and production company, Aminex, says that it has submitted the 2020 Work Programmes and budgets for all licenses to the Tanzanian authorities for approval.

 

Read:Is Aminex Getting Ready To Supply the Much-Needed Gas In Tanzania

                Optimistic Future for Gas Product in Tanzania

The rest of 2018 and 2019 was encouraging. The active presence of supermajors such as Norway’s Equino, Royal Dutch Shell, and independent such as Pan African Energy Tanzania (PAET), a subsidiary of Orca Exploration Group Inc. (“Orca”), London based exploration and production company, Aminex and Dubai-based Dodsal Group shows encouraging signs for near-term future exploration in Tanzania

In its latest operational update, Pan African Energy Tanzania (PAET), a subsidiary of Orca Exploration Group Inc. (“Orca”), operator of the Songo Songo gas field located in the southern part of Tanzania, sees gas demand increasing in 2020 and beyond. The demand is driven by gas-to-power initiatives and increased industrialization in the region.   

Read: Pan African Energy Sees Gas Demand Rising In Tanzania                                   

Tanzania’s economy is growing day by day. And with economic growth will come an increased demand for energy.  

The approach used to meet the increased gas demand elsewhere in the world is to encourage and attracting exploration and production companies through bidding around

Tanzania is in the early-stage planning of a new liquefied natural gas (LNG) export facility.And the number of LNG projects are progressing in Mozambique and Qatar. 

However, with demand for LNG globally is rapidly increasing, suffice to say Tanzania will never struggle to find the LNG buyers.

  According to the Shell LNG outlook, the global demand for LNG grew by 12.5% to 359 million in 2019. Tanzania stands much chance to capitalize on the global liquefied natural gas market.

A change in the dynamic of oil and gas exploration and development in Tanzania, driven by the 2014-2016 oil price slump which reflects the global oil and gas industry downturn. The region has also seen takeovers and mergers amongst operating companies. Most noticeable of these were Royal Dutch Shell acquired BG Group for US$ 50 million. The takeover gave Shell 60% of BG’s block 1 and block 4 offshore Tanzania in February 2016. And the Indonesian company, Medco Energi’s $539m acquisition of Ophir Energy in May 2019. 

An Imbalance of Employment Opportunities in Oil & Gas

The poor balance among experienced workers, young professionals and executive managers in the oil and gas workplace, creates an urgent need to develop young professionals.

An Imbalance of Employment Opportunities In The Oil and Gas Industry.

The lack of balance between experienced workers, young professionals and executive managers in the oil and gas workplace, creates an urgent need to develop young professionals.

We need to address employment opportunity gaps in the following categories

  • Experience
  • Gender

           

 Experience

 The hard to fill positions in the East African oil and gas industry are executive managers, project leaders or supervisors. Our industry has lost most young professionals during the oil price slump from 2014 to 2016. And few graduates have employed in the previous industry downturn.

Even as the oil and gas prices began to recover in 2017 and 2018, young professionals have to compete for job positions with professionals who have a decade of hands-on experiences in the oil and gas industry. The simple truth that the industry has to attract more young people, develop and transform them from just followers to project leaders or executive managers 

 Gender

The oil and gas industry is an unpleasant place for women.

It can be a little bit frustrating for women to establish and maintain a career in the oil and gas industry

I have a young sister studying finance at the University of Dar Es Salaam. She omits the oil and gas industry in her search for learning experience opportunities. The common misconception is that the industry is dirty, male dominate and unstable fields. We need to change these negative perceptions about our industry. We need to attract more young people and developing them from just graduate engineers to executive managers 

                  Bridging Employment Gap In the Industry.

The study indicates that fewer women are holding executive positions in the oil and gas industry. According to research out of all the supermodels, (ExxonMobil, Chevron, Shell, BP, Total, and Eni), there isn’t a single female CEO. ExxonMobil, Chevron, and Eni don’t have a single woman with a “C-Suite position”. BP, Shell, and Total each have just one female C-Suite employee. Out of the 30 key executives of these 6 companies, there are just 3 women or 10%

Since East Africa is attracting the attention of international oil and gas companies for the latest big discoveries and following technological innovation in the oil and gas industry, training and development of young professionals and move them from just users to world-class professionals is the answer for an imbalance of employment opportunities in the oil and gas industry.

Collaborating to Build A  World-Class  Workforce Competence For  East African Oil and Gas

The key shortage in East African oil and gas is one of the qualified personnel with skills and expertise to deliver productivity and high performance needed.

Even as oil prices began to recover in 2017 and 2018, the oil and gas industry remained focused  and now place a huge premium on productivity, innovation and  high performance of the workforce. And that is expected to continue in 2020 and beyond.

From the first day, I entered the oil and gas industry, I have been told that the industry need competency. It is an industry in which operational safety, productivity and high performance are paramount.

What happens if you don’t be able to hire skills  quickly enough or insufficient volume to deliver the innovation, productivity  and high performance required.

The answer is pretty simple. You are going to delay production. You are going to increase overall operational costs. And the whole East African oil and gas industry will become less profitable in the long run.

Research indicates that, the oil and gas industry is adopting new technology. But software competence and ability to use up-to-date technology are not readily available with graduates and young professionals. And need to be urgently trained and developed for the benefit of businesses communities and countries.

This article is set out to answer a number of key questions about a new revolutionary approach to address a skills shortage primarily in Tanzania and regionally in East Africa.

How employers in the oil and gas industry, education providers work together  more collaboratively to raise performance standards of  work competence of the Tanzania’s oil and gas sector  and propel it to become  world-class, internationally competitive and prosper for the benefit of all stakeholders?

How to prepare our graduates who are facing rapidly changing job market characterized by advanced technology to become  internally competitive?

What are the best collaboration strategies  between regional universities with oil and gas curriculum and their foreign counterpart to create world class graduates versus local champion?

Answers to these questions are essential for employers, colleges with oil and gas curriculum,  private training providers policymakers, and other stakeholders to make a revolution in training and development of local capacity and move them from just local champion to world class levels.

Dr. Mohamed Mahgoub, the Geophysics Expert in the Gulf Countries from his point of view and his wide experience in oil and gas since 1990  says “Challenges and opportunities in Tanzania shall be addressed through developing local resources, capacities and finding collaborative solutions and prepare Tanzanian and East African students to be world-class graduates with upgrading their syllabus through partnership with international high ranking universities and training and developing the African young professionals and move them to professional Specialists and Subject Matter Experts.”

                A road Map  For Performance Improvement In The Oil and Gas Industry

Here are  two collaboration strategies to strengthen work competence of the East African oil and gas sector:

  1. Creating Formal Partnership Between Colleges and Employers In The Oil and Gas Industry

To address the skills shortage, East African Universities and colleges  should collaborate and work jointly with employers in the oil and gas industry to develop curriculum, or provide materials and equipment  for students to engage in hands-on experiential learning. A partnership between colleges and oil and gas employers in the development and upgrading of curriculum will ensure they programs offered at colleges are aligned with the oil and gas industry needs and will result in performance improvement in the workplace. For example, oil and gas service providers donate free software for seismic data processing as the CGG Seismic service provider has established seismic processing unit with Geovation processing software for Sultan Qaboos University in Oman and other universities in Africa and different areas of

  1. Collaboration with internationally higher-ranking universities in this oil and gas related curriculum

A consortium between University and Industry and world specialist organization in Education institutes or universities to standardize the oil and gas students Curriculum for4/5 year program. Universities; especially for oil and gas should have a close collaborative consortium with internationally higher ranking universities in this oil and gas related curriculum which having the state-of-the-art technologies and related sciences. Partnership with those super major universities is fundamentally needed to help with significant improvement in the education system and producing world class graduates who are internationally competitive

                                                         Final Words

Collaboration is key to aligned training and development with industry needs. Furthermore is the way to move the industry professionals from just users and followers to expat experts to professional independent focal point. That resulting in producing local leaders of the oil and gas industry and they will able to leading the industrialization phases execution accordingly.

China bids for Turkana oil as Tullow and Total count losses

After watching from the sidelines for years, China is back on a front-row seat in the bid for Kenya’s oil, as the project’s joint partners grapple with uncertainties due to lack of funds.

China has emerged as the favourite potential partner to help Kenya realise its oil dream after the key players, Tullow Oil Plc and Total SA, kicked off the process of selling part of their stakes in oil discoveries in South Lokichar, Turkana County.

The farm-down by the two oil majors will further delay the project, which has seen its timelines shift every year, raising the costs, which will eventually be borne by the taxpayer.

The Nation understands that China National Offshore Oil Corporation (CNOOC) is one of the favourite bidders for the 32.5 per cent stake up for sale, which would make it the majority partner in the project and a key decision maker in unlocking the current limbo.

SELLING SHARES

Currently, Tullow has a 50 per cent stake, with Canadian firm Africa Oil and Total SA holding 25 per cent each. Tullow has announced that it is selling 20 per cent of its shares, while Total is offloading half of its stake, or 12.5 per cent. The new shareholding structure would be CNOOC 32.5 per cent, Tullow 30 per cent, Africa Oil 25 per cent and Total 12.5 per cent.

People familiar with the matter told the Nation that CNOOC has a large strategic interest to bundle the Kenya oil assets together with those it manages in Uganda. The Chinese firm owns 33 per cent of the assets in Uganda’s Albertine Basin, together with Total and Tullow. They were once the largest investors in Kenya’s hydrocarbons, when they came in to explore for oil in Isiolo, but exited after failing to hit a find.

Industry experts say this would be a perfect opportunity for them to buy in.“They are primed to have these assets,” said a source.

Tullow Kenya managing director Martin Mbogo confirmed that discussions were ongoing but could not divulge details of the progress. He, however, said a new deal could be sealed by June this year, but added that he was “not at liberty to say with whom”.

NON-DISCLOSURE AGREEMENTS

Saying that China was “not off the table”, he told the Nation on Thursday that “those in this process demand that we honour the non-disclosure agreements”.

“However, we are looking for a company that shares in the vision of the project in Kenya and has the capacity to work in such frontier markets,” said Mr Mbogo. “Our expectation is that by June, we’ll have narrowed down to who is interested and what we can get out of this, then conclude.”

Should China clinch the deal, it will cement its presence in key infrastructure projects in East Africa. Aside from having oil assets in Kenya and Uganda, it is also in South Sudan, where it gets oil as payment for developing the country’s transport infrastructure, and in Ethiopia.

 

In Kenya, Beijing is credited for major projects such as the Sh500 billion-plus Standard Gauge Railway line by China Roads and Bridge Company, the Sh32 billion Lamu port by China Communications Construction Company, and several key roads.

The deal would be in Beijing’s great favour in the scramble for Africa between China and the West, locking down key projects under the Beijing’s Belt and Road Initiative.

Tullow says it expects to use the proceeds from the farm-down to offset the costs it has incurred and plough back some of the cash into the project, which it says it is “firmly committed to, till the end”.

Total was initially primed as the partner that would have bought out Tullow, but industry sources say that the French firm did not really go out to buy the Kenyan assets, but acquired them from Maersk Oil & Gas, which exited the market.

“Total didn’t intentionally buy the Kenya assets. Kenya was bundled together with other Maersk assets that Total bought. Given that they are also selling down, it is unlikely Tullow would be selling to Total,” an insider said.

MAKE DECISIONS

The Chinese oil firm is expected to make key decisions on the project and move it out of limbo.

Mr Mbogo, the Tullow Kenya MD, said the new partner will have a direct say on how the project goes, especially if they buy the other farm-down, which would make the process faster, cutting back on the delays.

Tullow and Total have now hired Paris-based investment bank Natixis SA to assist with the sale. The London-listed firms’ sale, Mr Mbogo said, was part of a broader review of its operations and assets intended to simplify the business and cut costs.

“This isn’t something new and the farm-down isn’t a reflection of our financial position. We are sound financially and this re-arrangement of portfolio had already been agreed upon way earlier,” he said, adding that the restructuring, which saw it lay off some of its employees, was a normal process.

DISAPPOINTING RESULTS

The firm, which has been burning cash in the Turkana project, is said to have opted for this sale after disappointing exploration results in Guyana and production problems in Ghana that led to the removal of the global chief executive Paul McDade in December last year and wiped out nearly half of the company’s market value.

Petroleum Principal Secretary Andrew Kamau said the government “is aware of Tullow’s plan, which is not expected to delay investment in production or the proposed pipeline”.

The Nation has however learnt that the government has written to Tullow demanding an update on its financial position, citing the Production Sharing Agreement, which was pegged on its stated good financial health.

Tullow now says it will spend Sh4 billion in Kenya this year, a drop from last year, and sources say the firm has also been forced to bear a huge chunk of operational costs as Total failed to approve budgets for 2019 and 2020.

Africa Oil, in its latest trading update, said it had spent Sh2.9 billion in the nine months to September 2019 on appraisal stage projects relating to blocks 10BB and 13T.

“Some of our joint venture partners didn’t approve their budgets for 2019, and also this year. This saw us spend above our shareholding agreement, pushing up our expenditure. I am now under firm instructions from my board to spend within our shareholding structure for this year,” Mr Mbogo said, adding that the board had approved Sh11 billion for the project this year, with Tullow expected to shoulder half of it.

“We are waiting for our joint partners to approve this so that we can push through to the financial investment decision. However, delays in getting such budget approvals hurt the project, pushing up costs,” he said.

Africa Oil’s Sh2.9 billion spending for the nine months to September 2019 included expenditures related to geological and geophysical studies, development studies (including upstream and midstream Front End Engineering Design, land acquisition, Environmental and Social Impact Assessment, water acquisition and subsurface reservoir studies) as well as general and administrative costs as per the agreements.

ADDITIONAL AMOUNT

Under the terms of a farmout agreement completed in 2016 with Maersk, who were bought out by Total, upon a Final Investment Decision of the South Lokichar development project, Total may be obligated to carry the company for an additional amount of up to Sh40.5 billion, dependent upon meeting certain thresholds of resource growth and timing of first oil.

“To date, a receivable has not been recorded in our financial statements, given the uncertainty surrounding both resource growth and timing to first oil. Until the final South Lokichar Basin development and financing plan is approved, we will continue to assess the sufficiency of its capital resources.

“Our current working capital position may not provide it with sufficient capital resources to complete the development activities being considered in the South Lokichar Basin,” Africa Oil said in the trading update.

FOUNDATION STAGE

In the earlier plan, Tullow and its partners had proposed to the government that the Amosing, Ngamia and Twiga fields be developed as the foundation stage of the South Lokichar Development. This stage includes a 60,000-to-80,000-barrels-per-day Central Processing Facility and an export pipeline to Lamu.

“This is still the plan and we expect the installed infrastructure from this initial phase to be utilised for the optimisation of the remaining South Lokichar oil fields and future oil discoveries, allowing the incremental development of these fields to be completed at a lower unit cost post first oil,” Mr Mbogo said.

The gross capital expenditure associated with the foundation stage is expected to be Sh300 billion, which Mr Mbogo said included Sh1 billion for the pipeline and Sh2 billion for the oil project.

“So far, Tullow has spent Sh1 billion on this project, with the other partners spending the difference. We are, however, confident that we shall make the final investment decision by end of this year,” Mr Mbogo said.

Credit: Daily nation