2 Reasons Why East African Oil and Gas Industry Could Change Global Energy Market

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Have you ever really know the oil and gas market is not static?  Do you believe Tanzania oil and gas industry and other East African countries can dramatically change the global energy equation

You are about to learn some really great stuff,

The article explores two fundamental factors that  will result East African oil and gas industry including Tanzania to dramatically the change global oil and gas market

Let’s face them
      1: New discoveries
For a couple of years now, latest announcements of natural gas and oil discoveries in Tanzania, Kenya Uganda and Mozambique are being made every few months, oil and natural gas exploration is ongoing, so even more natural gas could be developed.

This natural gas discoveries means that these East African countries that have not been exporter, they certainly would be just an exporter of natural gas in the global market and this will result into change the global energy equation.

2:New technology
Changing of oil and gas market is the consequences of new technology,
What does modern technology mean to oil and natural gas industry?
It means that uncommon sources of oil and natural gas that recently are not commercially viable. They will come online.
Allow me to make one example of contemporary innovative technology that has dramatically changed the global oil and gas market.
The most recent technology that has changed the global oil and gas market is called” HAUDRALIC FRACTURING or  FRACKING”

What is Haudralic Fracturing?                  A quick definition

Hydraulic fracturing or Fracking is the process which blast through shale deep below the surface to release oil and gas trapped in the rock
This technology has switched the global oil and gas market.

Must Read:Time is now to invest in oil and gas sector

For instance  this technology has made United stated  a net exporter of oil and natural gas  and in few years the country  has decrease oil import from 56 percent in 2005 to 40 percent in 2012

Bonus: In 2011 United states begin  to export petroleum products for the first time over 60 years thanks to HAUDRALICK FRACTURING technology

Final Words
Due to the  reasons  I mention above, you should  understand that oil and gas markets will never remain the same  for the next years.

East African countries like Tanzania, Mozambique Kenya and Uganda have to come online  and become oil and natural gas exporter due to the new oil and gas discovered day after day this will result to the change of energy equation across the world

New technology  also can cause oil and gas market to change because those oil and gas  sources that was that was very difficult to access could be easily accessible

Swala Oil upbeat with exploration

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Swala Oil and Gas Tanzania Plc Chief Executive Officer, Dr David Ridge, said that there have been small finds in quite a few places but the big discoveries have been in Tanzania and Mozambique, where plans to develop LNG plants are well advanced.

“The volumes discovered so far in Tanzania are significant: if you poured it all over the country, it would cover the whole country to a height of 1.5 metres – and we expect more to be discovered,” he said.

The big story in 2014-2015 has been the collapse of oil prices, from over 120 US Dollars per barrel last year to about 50 US Dollars at the moment. Looking at oil prices over the past 150 years, the current expectation is that we shall have low oil prices for a few more years.

Dr Ridge cited that in terms of African producers generally, a collapse in oil prices has meant that revenues have been less from production and countries have had to tighten their belt.

Projects that were viable or competitive at higher prices now are not, and are either mothballed or delayed. “On top of that oil price pain, companies have started to look at the general conditions under which they invest and warnings have become more pertinent in a low oil price environment: oil and gas is global game and companies are not forced to invest in any given country,” he cited.

With all the upheaval in the world markets, and all the confusion around project development, Swala Oil and Gas Tanzania earlier this year announced the farm of Tata Petrodyne Limited (TPL) to their assets, a move that is a vote of confidence.

Overall, TPL has paid just under 6 million US Dollars towards their past costs and shall pay another 4.6 million US Dollars towards their share of two exploration wells.

In exchange, TPL will receive 25 per cent of the Kilosa- Kilombero and Pangani licences. “TPL is in total paying nearly 11 million US Dollars to buy into our assets and it means that you, as shareholders, can look forward to a 2016 drilling campaign paid for by this investment. It is the best onshore farm-in deal that I have seen in a while and a vote of confidence in Swala’s assets,” he explained.

In August, Swala Energy Limited disclosed that its subsidiary company Swala Oil and Gas (Tanzania) Plc had received a no objection notice from the Tanzanian Ministry of Energy and Mines to the farm-out of 50 percent of its interests in the Kilosa-Kilombero and Pangani licences in central and northern Tanzania, respectively to India’s Tata Petrodyne Limited (TPL).

With the receipt of consents from the Tanzanian Petroleum Development Corporation (TPDC), the Tanzanian Revenue Authority (TRA) and now from the Ministry of Energy and Mines, the company is awaiting only the consent of the Fair Competition Commission (FCC), the firm said in a statement.

“The rapid approval by the Tanzanian regulators to the farm-out of the SOGTP licences illustrates their desire to encourage activity in this important economic sector.

We are confident that the FCC consent shall be received soon, which shall allow TPL to join the licence joint venture ahead of the planned drilling campaign.” said Dr Ridge.

In June, this year, Swala Oil and Gas announced it reached an agreement with TPL, a subsidiary of the multinational Tata Sons Limited, under which TPL shall farm into the Pangani and Kilosa-Kilombero licences in Tanzania.

Swala is currently working on the Environmental Impact Assessment and preparing the drilling teams. They are constrained in when they can do things because of the weather windows but they are aiming to drill Kito on the third quarter of 2016 followed by a Pangani well, subject to the technical review, in the fourth quarter.

Though the company has not yet discovered oil, they have done enough work to give them confidence that all the right ingredients are there and their technical case is promising.

They need to drill to see whether those ingredients have formed oil. The company thinks that the Kito structure can hold between 220 million barrels and 2 billion barrels, with an average of 980 million barrels.

The other leads could, together, contain an average of 1.5 barrels. This is what could be there but one can never recover 100 per cent of what is in the ground but only time will tell.

Who will hire Tanzanian Graduates in Oil and Natural Gas Industry Now

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Now is time that some of college students in Tanzania have finished their four years of petroleum engineering, and others three years in petroleum geosciences.

At the same time Tanzanian students who had left the country for oil and gas  studies have reached their graduation date, now back to home.

These graduates are very optimistic to get employment in petroleum companies with six figure starting salary

The fundamental question here is the guy who will hire them now?

Layoffs in petroleum companies are on the horizon. In order to deal with oil slump, petroleum companies have now erased their campaign to attract fresh graduates.

The situation not only bad for recent Tanzanian graduates, but also  many graduates across the world are now sweating.

When I visit Internet oil and gas forum, recent graduates worldwide share their sad stories, they just staying home with parents waiting for the oil price to restore.

Never panic:
Don’t panic this normal to the oil and gas industry,
The best thing I recommend you to do now is uploading your CV in these  job sites for petroleum jobs

Once you have uploaded your CV you become visible to the oil and natural gas companies and recruiting agency, so you raise your chance of searching for the job.

Must Read..5 ways to get job you want in oil and gas industry

Final Words
This is the worst time  for newly graduates, but If petroleum industry is your passion, you will work hard and are gained.

More Local Talents are Needed in Natural gas Industry

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Apart from infrastructure, the greatest obstacles in oil and   natural gas industry in Tanzania is scarcity of skilled labors at local level.

Although effort has been done to train local people inside and outside of the country, but the number of trained people  do  not meet the demand to serves the industry.

The shortage of locals people with knowledge and experience relevant  to oil and gas disciplines in  oil companies, consulting firms and tax authorities, will causes most of oil and gas projects in Tanzania to take longer than average. Also we will remain dependant from  foreign companies in terms of  technical expertise.

The local participation in the oil and natural gas sector in Tanzania is necessarily important as the key to succeed in this industry.

Having large number of skilled workers in the oil and natural gas sector will minimize cost that recently stay in the hands of foreigners and investors, as well as removing barriers in developing newly discovered gas resources.

What Does Natural gas discovery in Tanzania mean for  Local Entrepreneurs

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With this massive discovery of natural gas in Tanzania which is nearly 55.5 trillion cubic feet,  international companies and foreign  investors across the world are swarming in Tanzania to invest in natural gas sector.

What does it mean to Tanzania entrepreneurs?

 The logic here is very simple: there is unlimited opportunities in natural gas industry to create huge wealth, and that’s why many investors are attracted to it:

But the sad reality is that, most of local  entrepreneurs  are still place limit to themselves  with  excuses like “I m not good enough in oil and gas stuff” some of us we believe oil and gas business is only for “BIG BOYS”  with  big financial muscles

Discovery of natural gas in Tanzania means opportunities to Local entrepreneurs to creates financial freedom. This discovery of natural gas should inspire the creativity of locals entrepreneurs.

With this growth of Tanzania economy by 6.5 percent in the first quarter of 2015 means demand of energy is going to increase,which increases the investment opportunities in Tanzania.

If you are very interesting in oil and gas business and you don’t know where to begin here 6 oil and gas business opportunity in Tanzania.  You can start with

Good Luck:

10 Attribute Oil and Gas Employers Want From You

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isThe article explains about qualities that you should possess in order employer from oil and gas companies to consider you in their companies.

According to Shale Net, the following are  qualities looked for the oil and gas industry.

1Be a fast learner
2. Work hard and be willing
to work long hours.
3. Enjoy the outdoors
4. Be a reliable team player
5. Be dependable and on-time
6. Be a problem solver
7. Be a self-starter
8. Have a supportive family that
will understand long hours
9. Be physically fit
10. Have strong mechanical
ability

5 Ways To Get Job You Want In Oil and Gas Industry

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Looking for job in oil and natural gas industry in Tanzania? Are you college student and you would like to bank six figure starting salaries? You are about to learn  some really great stuffs.

The article explains some great ways to join petroleum companies,for those  looking career or continue careers in oil and natural gas industry.

Petroleum industry has its own hiring methods and the methods we are going to discuss here, are the one applied by many Tanzanians who are currently enjoying career in petroleum companies.

If it work for them, it must work for you as well

Lets  face them:

1:University career fairs: Oil and natural gas companies have been recruiting  students from local universities for years.

Career fairs is the excellent opportunity for you , because attending these events enabling you to meet recruiters and employers of the oil companies who needs your skills.

During career fair you would be doing  a series of interviews, when you win competition  , you will receive job offer from particular oil companies

For instance, students from University of Dar es salaam,(UDSM) and Dar es salaam Institute of technology(DIT) have got job offer prior to their graduation date.

As I am writing this articles some of them are enjoying career with Schlumberger, Halliburton, Pan-African energy. To see example of Tanzania who join oil company through this method, click here: maintenance engineer in charge and maintenance supervisor at  Schlumberger  Innocent Anthony.

2.Company websites:

Most oil and gas company they often post open positions  on their website before posting elsewhere.

By free registration and creating account, on their website you will able  to see all posted jobs, and you can apply directly through these sites,

To apply for these jobs you don’t need to be an Internet expert,because they provide further details about the application process,

After applying, when you meet their qualifications  required for particular jobs they will contact you through phone but in most cases through your email address.

The best news is that we have some of Tanzanians currently working with petroleum companies thanks to company website method. Example of oil and company website you can apply now: http://www.bakerhughes.com/careers and http://careers.slb.com

3.Job Portals or jobs sites: Is among of the popular methods to get jobs in oil and natural gas companies. I have already explain about it in my previous articles, if you miss it, you should read here:see important job sites-for petroleum jobs.

4:Network, Network, Network: Instead of posting jobs on jobs board which might cost company in terms of time and money, many employers  use current employee inside the company to look for ideal candidates to fill open positions.

As you look for career in natural and gas industry your job is to wide your network by asking friends and family about others who are currently working with oil and natural gas industry and network with.

The more people you know in oil and gas industry  the more you increase your chance to get jobs in oil and gas companies

5:Social Media:  Social media is  a nice platform to meet with people regarding to your interest.If oil and gas is your passion, the social media I recommend you to use is LinkedIn. It will expose  you to the world of recruiters and other peers.Don’t be shy to ask people for information or advice on LinkedIn about oil and gas matters. Because linked in is designed for business purpose.

My Final Words

If you will take actions,these methods  are starting point of getting  jobs in oil and gas industry not only in short time but for  the rest of your career.

Kenya has a billion barrels of oil that might not be going anywhere

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imagesFidgety oil companies and investors heaved a sigh of relief in August when Kenya and Uganda announced they had picked a route for the world’s longest heated pipeline. Finally, there was a plan for getting the estimated 1 billion barrels in Kenya’s remote northwest out of the country.

The proposed route cut from northern Uganda’s Albertine region, into Kenya, through the Lokichar Basin, and then southeast before terminating in Kenya’s coastal Lamu County. It would have allowed Kenya to share the cost of piping oil with Uganda, which has 6.5 billion barrels of its own oil that it wants to get to market.
 But this week Uganda turned around and announced it had instead signed an agreement with Tanzania and Total (which is exploring in Uganda) to consider a pipeline for Ugandan oil through Tanzania, bypassing Kenya altogether.
Proposed oil pipelines in East Africa.(World Bank, “Leveraging Oil and Gas Industry for the Development of a Competitive Private Sector in Uganda”)

If that plan goes ahead, Kenya’s oil companies—Tullow Oil and its local partner, Africa Oil—would have to foot the bill for the 1,500-kilometer (930-mile) Kenya pipeline, estimated at $4.5 billion, alone. The high price is because the waxy nature of the region’s oil requires that the pipeline be heated, basically to prevent it from becoming a giant candle. With low oil prices as low as they are, it seems more likely that the project will be put on ice.

Uganda’s change of mood threatens more than just the Kenya pipeline. It calls into question the entire $20 billion LAPSSET (Lamu Port South Sudan Ethiopia Transport) Corridor. This an ambitious Kenyan project that includes not only the oil pipeline, but also a road network across the north of the country and a coal-fired power plant.

When LAPSSET was conceived, the idea was to also pump oil out of South Sudan, Kenya’s neighbor to the northwest, thus spreading the costs further. But with South Sudan now embroiled in war, if Uganda steps out of the picture there’ll be less need for the pipeline—and little financial interest or support for the rest of LAPSSET.

You can be sure that Tullow and Africa Oil will scramble to make Uganda believe the Kenya pipeline is the better option. If it were only about costs, they might still have a shot. But Total’s CEO, Patrick Pouyanne, said on Oct. 16 that the company’s chief concern is security.

The planned route is not far from Kenya’s border with Somalia, and Kenya doesn’t have a fantastic track record of protecting its territory from al-Shabaab incursions. Lamu County has suffered a series of attacks by al-Shabaab since Kenya joined the battle against the Islamist militia in Somalia; it also borders Garissa County, where al-Shabaab killed 148 people, mostly students, at a university in April.

Swala Energy:Receipt of Funds From Tata Farm Out for the Licences in Tanzania

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Swala Energy Limited   confirms that US$5.7 million has been received from Tata Petrodyne Limited (“TPL”) pursuant to the farm-out transaction with TPL for the Kilosa-Kilombero and Pangani licences in Tanzania.

 

You can also Read:Swala energy complete farm out of Tanzanias kilosa kilombero and pangani licences interest-to-tpl

An interview with Maintenance Engineer In charge and maintenance supervisor at Schlumberger-Innocnt Anthony

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  We had   meeting  with Innocent Anthony and  he  agreed to share with us about his career on oil and gas industry, work experience and his memorable trips, We are very delighted to share with you this wonderful conversation.

1.Tanzania petroleum: You have bachelor degree in Electrical engineering, how did you get an  idea to join oil and gas industry?

Mr  Innocent Anthony: Well, Before I had no idea about oil and gas industry, I got this opportunity during schlumberger career fair at University of Dar es Salaam in 2012 when i was in my senior year engineering students waiting to sit for my final year examinations. I passed through different schlumberger series of interview sessions and thank you God i was among of few candidates who were selected to join Schlumbrger in Tanzania  where am currently working as  Maintenance engineer and maintenance supervisor

2.Tanzania petroleum: Now you are working in office but earlier you were working  on the rig? What are the most difficulties for you to work in field.

Mr Innocent Anthony: I started my career as a Field engineer and spending most of my time in the field, from Kenyan desert land rigs, land rigs in the forest of west Africa  and offshore East African mainly Tanzania and Namibia.The field life is not easy  and not for everybody, working in harsh environments, cold to hot,24/7 is not easy, Staying away from your  family  for  for long time, living in very remote location or offshore, working with people from nationals and different behaviors just to meet a common goal, extracting hydrocarbon from the ground.

3.Tanzania Petroleum: As the nature of petroleum jobs it involves  trips  in distance places across the world, As you have travelled in many places, what are memorable experienced during your visits

Mr :Innocent Anthony:My memorable trips is when I visited  South Korea , where  I got opportunity to see how drill ships are built from scratch, installation of rigs on the ship and installation of service companies drilling completion equipment on the drill ship

4.Tanzania Petroleum: As the layoffs increasing in petroleum companies, what is your advice to recent graduates and other professionals who are looking for a career in oil and gas business.

Mr  Innocent Anthony: Regarding ongoing massive layoff in the oil and gas industry, this is normal in the petroleum industry.Sometimes the oil and gas industry faces this kind of downturn due to low oil prices. Last time it happened in 2009 but  but we saw it happening again  now after 6 years. I hope oil prices  wil return  to normal  soon as we have recently seen stability of crude oil price per barel

5.Tanzaniapetroleum:Before start working, ideally you have  to pass a special training and test, can you tell us  about those tarainings and test?

Mr Innocent Anthony:Yes when I started my career I had no idea about this industry since I graduate with Bachelor of science in Electrical engineering. From the first day of my job I was taken through  a series of classes and on job training(working while learning). I was trained in country like France. Abu Dhabi, United states etc. also working to get field exposure  in countries like Congo Brazzavile,Kenya, Uganda Cameroon, Namibia and Mozambique. In all these countries I was working under supervision and after  one year I was complete performing jobs standalone.

Tanzaniapetroleum: It was pleasure to talk to you , Thank you a lot

Contact  Mr Innocent Anthony directly through

0757336274  or Engineer.inno@gmail.com