Tag Archive for: conference

Ministry Of Energy To Set Up Special Local Content on Oil and Gas Sector

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The Ministry of Energy and Minerals plans to set up a special local content on gas and oil unit to enable the public easily access information on various issues concerning the sector.
Senior Supplies Officer (Local Content) at the Ministry of Energy and Minerals, Ms Neema Lungangira made the revelation in Dar es Salaam during a seminar organised by Twaweza Organisation to present and discuss the report titled ‘Great Expectations On Gas Sector And Relevant Policies’.
“Government through the ministry is setting up various strategies to enable the citizens fully participate in the oil and gas sector and one of the strategies is the establishment of the special local content unit,” she said.
Among the issues to be tackled under the unit will include public awareness creation, providing knowledge of public participation in the sector.
The unit will be established under the local content policy and will focus on the providing information from the key document on the sector.
According to the report presented by Twaweza at the seminar, citizens do not have access to full information about Tanzania’s gas sector.
Presenting the report, Executive Director of Twaweza, Mr Aidan Eyakuze said that 53 per cent of citizens think that gas from the new offshore discoveries is already flowing with some thinking that both government and foreign companies are already earning revenues from the gas.
The report based on data from ‘Sauti za Wananchi’ Africa’s first nationally representative high frequency mobile survey also indicate that citizens expect four million jobs and 7.5m/- each from gas deposits.
The report which shows that citizens are significantly misinformed about the potential of the country’s deposits, show that 59 per cent of citizens think that natural gas deposits will improve their lives and a similar (58 per cent) expect government to invest gas revenue into public services.

Mnazi Bay Gas Wells Deliver 1st Gas to Tanzania Pipeline

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East Africa-focused junior producer Wentworth Resources announced Friday the first gas delivery from its Mnazi Bay Concession in southern Tanzania to the country’s new transnational pipeline.
Wentworth said that two wells are now producing, with the three remaining wells expected to be put on production in the coming months. Initial production volumes will be used for commissioning purposes and to fill the pipeline, with production rates expected to increase to 70 million cubic feet per day by October this year and 80 MMcf/d by the end of 2015.
Wentworth added that the Mnazi Bay joint venture partners have agreed payment security terms with Tanzania Petroleum Development Corporation, the buyer of the gas, and various other parties.
Wentworth Managing Director Geoff Bury commented in a company statement:
“We are very pleased to announce that production from Mnazi Bay has now commenced and the Mnazi Bay joint venture is the first supplier to the new transnational pipeline in Tanzania. Concluding the payment guarantee and starting production in our Mnazi Bay gas fields are pivotal events for Wentworth and underpin the long-term viability of our operations in East Africa and our partnership with Maurel & Prom and TPDC.
“Wentworth is well positioned to become a significant gas producer in Tanzania, where supply and demand dynamics offer an opportunity which we and our partners are uniquely placed to realize. We expect to exit 2015 in a strong financial position.”

Tanzania Petroleum Development Corporation (TPDC) Awards CGG Airborne Gravity Gradiometer Surveys

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CGG announced  that it has been awarded a contract by the
Tanzanian Petroleum Development Corporation (TPDC) to acquire
high-resolution gravity gradiometry and aeromagnetic data over two
onshore areas along the South-Eastern Tanzanian Coastal Basin and the
eastern arm of the East African Rift.
Acquisition over a total area of 30,000 sq km will commence in mid
August 2015 and is scheduled to last up to two months. Using the
industry’s lowest noise Gravity Gradiometry, FALCON®, CGG
will deliver high-resolution data and interpretation to help evaluate
the hydrocarbon potential of these basins ahead of future licensing
rounds.
Tanzania has already established itself as a highly prospective
hydrocarbon province in East Africa with a series of significant
discoveries offshore and CGG is excited to be part of this next phase of
TPDC’s exploration of the onshore basins. This survey will benefit from
the experience gained through the completion of many projects
throughout Africa using the most advanced technologies available in the
industry.
Greg Paleolog, Senior Vice President, CGG Multi-Physics, said: “CGG
is delighted to work with TPDC to improve understanding of the structure
of these basins and to assist in the identification of suitable areas
for future seismic acquisition. With the selection of our FALCON
service, we can ensure that TPDC and potential operators will have the
best quality data and interpretation products ahead of the proposed
licensing round.”
“We know that there have been significant discoveries in the Kenyan
and Ugandan parts of the Rift Valley, and there may well be undiscovered
oil or gas reserves on Tanzania’s side,” Dr. Mataragio, the Managing
Director of TPDC explains. “The two-month-long basic Airborne Gravity
Gradiometer survey is imperative given the significant reserves
discovered in similar geological settings in Kenya and Uganda. The
promotion of our blocks is part of TPDC’s core business and this
exploration effort will add value and attract investors.”
Early this month the Parliament of the United Republic of Tanzania
passed a new Petroleum Bill, which will be signed soon. Under the new
Petroleum Bill, TPDC is now lawfully recognized as a National Oil
Company (NOC). The NOC will participate fully in exploration and
production of oil and gas and this campaign in particular signifies the
commercial commencement of NOC in E&P activities in Tanzania.

See How Oil and Gas Industry Works

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Today, we can learn
that even though you may be buying Chevron Gas, Chevron may not have much to do
with it. Welcome to our overview of the oil and gas vertical. You know most
people think they know the oil and gas industry, but they really don’t. So
we’re going to see if we can give you some useful information and clear up some
common misconceptions. So most people think of companies like ExxonMobil and
just assumed they get oil in the ground somewhere in the world, ship that crude
in ExxonMobil pipelines to an ExxonMobil refinery, sell it in ExxonMobil gas
station. But guess what? That is absolutely wrong, that is not how this
industry works. This is how it works. 
The industry is composed of four main segments;
upstream, midstream, downstream, and service. Upstream is actually getting the
crude out of the ground. You often hear it called E&P or Exploration and
Production. This is upstream, this is upstream, this is upstream, this is
actually and FPSO. The next segment is midstream. Midstream is basically moving
that crude oil in natural gas. So midstream stuff such as pipelines,
supertankers, rail cars. Then, we move to downstream. Downstream is actually
the refinery, the refining manufacturing and selling of the products from crude
oil and natural gas. So downstream things such a refineries, retail loop
stations, fertilizer which is big product of petrochemical refining,
lubricants, motor oils, retail gas stations, and plastic which is another large
product of crude oil. Then, we move to the service companies. Service are
companies that actually provide manpower and help in services the oil and gas
industry, but they don’t produce any petroleum or petroleum products
themselves. So you have everything from the guys that out there designing the
rigs to the crew boats that move men and equipment back and forth to the actual
roughnecks that do the drilling, to the manufacturer of drill stem, and things
like subsea installations. Every bit of this is service. 
Then, you also hear
the word Super Majors or Combined. What is that? That are companies that do
everything; upstream, midstream, downstream, and some service. And right now in
2013, there’s only five of them. This is it. These are the five Super Majors.
So what does that mean? We’re going to talk you through literally from cradle
to grave a drop the crude oil to the point where it gets into the gas tank of
your car. So, the US government auctions off a block of land the highest
bidder. After checking my last auction facts in the Gulf of Mexico, $2 billion
somebody paid for rights to drill on a piece of land for ten years. That’s it.
Think about that for a second. You write a check for $2 billion to have ten
years to make that money back and hopefully some profit, but there’s no
guarantees. So this case it was BP who spent that $2 billion for a deep Gulf of
Mexico lease.
 BP then needs to drill, right? BP does not have its own drill
rigs. BP contracts a drill rig basically rents it from companies such as
Transocean. That drill rigs needs to be staffed by people, so you have
companies such as Halliburton and Baker Hughes to actually help them operate
that drill rig. The crude that gets produced on the drill rig needs to be
transported. Guess what? BP puts out to open bid to all the different
industries all the different companies in the world who will move this crude
oil at the bets price. In this case, it was a supertanker and the win was won
by Chevron. So Chevron has the crude oil in supertanker and it’s in transport
to refinery, but halfway there, ConocoPhilips on their trading floor buys that
crude and it turns around and sells it for few cents profit per barrel. And it
was sold to Shell refinery who then refines that fuel at a profit, ships it in
Kinder Morgan pipeline to a 76 gas station as owned by who? No, not 76. It’s
owned by one of your neighbors which is called the Jobber. So there you go.
There it is from literally getting out of the ground into being burning your
gas tank as a fuel. And you look at how many different people are involved and
how many different layers of profits are involved and this is a very complex
industry. So hopefully this helps you understand at least at a high level what
goes on in the oil and gas industry.