Tag Archive for: hydrocarbon

Kiliwani North Production to Start in Mid-Feb

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Silhouette of workers at oil refinery

Africa-focused junior oil firms Aminex and Solo Oil reported Monday that the Kiliwani North-1 well in Tanzania is set to start production last this month and the well is currently undergoing final well integrity testing.

Aminex has been told by the Tanzanian Petroleum Development Corporation to get the Kiliwani North-1 well ready for production to begin in mid-February. This follows on from the partners agreeing with the authorities in January on a gas price of $3.07 per thousand cubic feet, which will be linked to the US consumer price index.

Initial production rates will be managed to allow for testing and commissioning of the recently completed Songo Songo gas processing plant and related pipelines, while also recording critically important pressure and flow rate measurements to determine the optimal flow rate to maximize the life of the reservoir.

Aminex holds a 55.6-percent interest in the Kiliwani North Development Licence, while Solo retains a 6.2-percent holding.  Solo Chairman Neil Ritson commented in a company statement:

“Solo is delighted that the momentum of the Kiliwani North project is being maintained after the signing of the [gas sales agreement] and we anticipate being able to report first gas and receipt of first revenue in the coming months.

Read:The Ultimate Guide To Participate In Tanzanian Oil and Gas Sector

” The companies also said that a proposed agreement with Bowleven to farm out acreage in Tanzania, previously announced on Nov. 19 2015, will not now go ahead. As a consequence, Solo will retain its 25-percent stake in the Ruvuma Production Sharing Agreement, while Aminex will continue to hold its 75-percent interest.

Read Also:Reasons Why Many Tanzanians Eyieng Oil and Gas Jobs

Aminex CEO Jay Bhattacherjee commented: “The recent completion of the gas sales arrangements for the Kiliwani North field opens a new chapter for Aminex in Tanzania. With the commencement of first production from the Kiliwani North 1 well, we expect to book our first reserves in-country. The company continues to focus on appraising Ntorya where we have planned an exciting program prior to applying for a 25-year development license. Aminex is currently assessing alternative ways to monetize its gas in the Ruvuma PSA acreage, where we already have a commercial gas discovery at Ntorya-1, through an early production system. –

Where do We Find Oil and Gas?

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oil

Unfortunately oil and gas do not exist is liquid pools underneath the earth’s surface. In fact, you could hold a rock containing oil in your hand and would not be able to see the oil.

Also Read:How oil and gas are formed

Important Properties of Rocks

Rock Formation Showing Strata For rocks to contain oil and gas they must have two very important properties. The rock must have a place for the oil and gas to be stored. These storage areas are called pores. These pores are not visible to the naked eye and must be viewed using a microscope. The number of pores that a rock contains indicates how much oil or gas can be stored. The more pores the more oil or gas that can be contained in the rock.

Scientists measure the amount of pore space by determining the rock’s porosity. Porosity is expressed as the volume percent of the rock that contains open space and can range from 5 to 30%.

Drawing Illustrating Porosity and Permeability

The greater the porosity, the more oil and gas can be stored in the rock. Porosity does not mean that there is oil or gas in the the rocks. In fact the pores could be filled with water.

Not only must the rocks have pores, the pores must be connected so that the oil and gas can move through the rock. Scientists measure the ability of oil and gas to move through rock by determining its  permeablity.

Oil and gas in low permeability rock have difficulty moving out of the rock and into a well. Permeability is measured in thousandths of a darcy or millidarcys. Sandstone and carbonate rocks are generally the most porous and permeable rocks and are therefore where scientists usually find oil and gas.

Roles of Petroleum Geoscientist In Petroleum companies

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Few weeks ago i wrote an article about the roles of petroleum engineers in petroleum companies.  To day we are going to see the roles of Petroleum geoscientist.

Let us begin

Petroleum Geoscientists are petroleum professionals who help petroleum companies identify the likely location of petroleum deposits. As geoscientist you study the earth and its many compounds, you learn about the earth composition, examine what is made up, the earth structure, looking at its layers and then divide them into their chemical and physical, the earth formation studying its geological features over time like ocean mountains, rivers and deserts and finally the earth physical phenomena, investigating physical properties of matter and energy of natural things that you can see test smell, hear and feel. In other words you study everything that is in, on and the surrounds the earth

Because earth is very big and there are many so things to study, geosciences has been divided into many specialize sciences like geology, geophysics, geochemistry

Petroleum geoscientist  specialize in the study of location and characteristics of petroleum deposits very deep in the earth. To efficiently to explore for, petroleum geoscientists use many tools, they study the geology of the zones that identify potential petroleum reserves using geophysical techniques like geological survey, then to get data they use gravity meters and magnetic meters to identify type of  the rock in the formation deep below the surface.

          A gravity meters detects the change in the mass of the earth below, hard rock like  igneous rock has large mass than soft rock like sedimentary rock. These measurement allow geologist  construct basin  and structure map.

you can also read:these are roles of petroleum engineers in petroleum companies

The magnetic meters measures the different amount of magnetism present in the rock type and is used to identify different type of rocks and  structure.After analyzing their findings, geologists select good location for further analysis which will include seismic survey.

A seismic survey measure the reflection and refraction of sounds wave bouncing off the rock structures and types. As one of the powerful tool available to petroleum geoscientists, seismic survey are used to identify structures, fluid type and movement of fluids overtime.Seismic survey can be done on  the land and on the ocean.

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The data obtained from these best  tools and sources along with sound information from seismic are compiled and send to the geoscientists like geophysicists, seismic interpreter and geo-modellers who used large computers to build geological model of the earth there deep under the ground.They use many resources to construct these geological models. With many advances in technology most of these models are currently build in a computer laboratory and utilize the largests advances in computer simulation. These simulation are updated and improved as more data is made available, as more data is acquired  and processed.

Once geoscientist receive feedback from the computer, they study the data by analyzing and interprete the result, they finally  ready to recommend next location of where to drill the first well. In Tanzania petroleum field there is area still need to be explored and  produced. There is information need  to be gathered on large scale and smll scale. We need more petroleum geoscientists in  Tanzania  petroleum field  as we are in the exploration phase.

MY FINAL WORDS

So if you are looking for career  or opportunity in petroleum industry, consider  becoming petroleum geoscientist,because are key finder of petroleum

Loss Making Atlas Development Focuses more on Tanzania and Ethiopia as Activity in Kenya Reduces

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Atlas-Development-2-325x244Nairobi securities exchange listed company Atlas Development has said it is now eyeing the Ethiopian and Tanzanian markets as oil exploration in Kenya and the Turkana region witnesses a significant reduction.

 

According to the company business in Ethiopia has been improving with contracts in the potash project where developers have been negotiating and have renewed as they look to advance their exploration and mining operations. 

“The Ethiopian business pipeline is also improving in the natural resource and infrastructure spaces.  With a positive market dynamic and a growth in requirements for international standard support services the Board is hopeful that the Ethiopian operations will generate positive returns,” the company says in a statement. 

 

The company adds that despite agreements in place to provide support services across the delivery spectrum in Kenya revenue visibility is not easy to predict at this time.

 

Atlas development adds that although tenders are being offered by a number of parties throughout the East African region the Board believes that the terms being demanded from service providers are not sustainable. 

“Indeed in a number of recent cases contracts were agreed but terms then adjusted by the clients, causing the work to be unprofitable and therefore unattractive to the Company,” the statement continues.

 

Atlas also says it has conducted a full review of operations in Kenya and dramatically reduced costs and overheads to preserve the balance sheet whilst maintaining a presence to ensure the capabilities are in place to deliver these potentially transformational projects when the time arises or market sentiment changes. 

Oil firm drills 100 water wells worth in Zanzibar

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THOUSANDS of residents in Zanzibar will have access to clean and safe water, thanks to the drilling of 100 wells at a total cost of US $5.6 million dollars (about 11.7bn/-) donated by Rak Gas LLC, a company from the United Arab Emirates (UAE) involved in the exploration of gas and oil in the islands.

The company handed over one of the wells at a ceremony graced by Zanzibar Second Vice-President, Mr Seif Ali Iddi, yesterday, in Chumbuni constituency, Urban West region. The water project was undertaken in two phases in which 50 wells were drilled in each constituency by Basix East Africa, a member of Basix International Limited.

“Each of the well has the capacity to produce between 17,000 and 20,000 litres of clean and safe water per day. We have as well installed water pumps at all the wells in addition to the construction of six storage tanks in some areas,” said Basix east Africa Managing Director, Mr Amani Mworia.

In his remarks, Mr Iddi thanked the company for the contribution and urged residents to maintain them, in addition to conserving other water sources in the islands of Unguja and Pemba. “Water is life.

Whoever assists you to get water is a friend indeed. My regards to the leader of Ras Al Khaimah State, Sheikh Saud bin Saqr al Qasimi, for his contribution in the implementation of the project,” he stated.

He said that before the Zanzibar Revolution of 1964 water problems were serious, but the situation had changed gradually as many people now could access the precious liquid.

The Chief Executive Officer (CEO) of Rak Gas Chief Executive Officer, Mr Kamal Ataya, pledged to drill 50 more wells and asked the government to provide it with land to undertake the initiative.

“Once we are provided with land we will immediately embark on the project. Apart from water the company also supports education and health sectors, as well as construction of mosques,” Mr Ataya remarked.

Zanzibar Minister of Lands, Housing, Water and Energy, Mr Abdallah Ramadhani Shabani, was upbeat that water shortage in the islands would soon become history.

“The water wells were drilled in all the five regions of Zanzibar the well we are receiving today at Chumbuni is among those donated by Rak Gas,” the minister explained.

For his part, Zanzibar Water Authority (ZAWA) Director General, Dr Mustafa Ali Garu, said the authority would ensure that the wells were well maintained and protected in order to benefit all the people.

Oil firms prefer Tanga pipeline route to Lamu

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bdsouthsudanoil1Oil companies in Uganda are in discussions with Tanzania for an alternative pipeline route through Tanga despite a recent agreement between Presidents Yoweri Museveni and Uhuru Kenyatta.

Whereas President Museveni of Uganda and his Kenyan counterpart President Kenyatta sealed a deal that if implemented with see Ugandan oil exported through Kenyan port of Lamu, oil companies believe the Tanga route is cost effective.

The EastAfrican has learnt that besides security concerns, the companies are also uncomfortable with the cost of the Lamu route, arguing that the southern route through Tanzania would be cheaper and offer better commercial terms to the users.

“We are evaluating all viable options and the Tanzania route is one of them,” Total’s corporate affairs manager Ahlem Friga-Noy told The EastAfrican.

Total’s senior vice president for Eastern Africa, Javier Rielo  on August 22 met with Tanzania’s President Jakaya Kikwete and discussed the possibility of building a crude oil pipeline from Hoima to Tanga.

President Kikwete supported the proposal as it fits within Tanzania’s ongoing preparatory works to upgrade Tanga port’s capacity to off load petroleum products.

Total E&P, Tullow Oil and China National Offshore Oil Company are equal partners in Uganda’s upstream sector, where 6.5 billion barrels of oil, 1.4 billion of them recoverable, have so far been confirmed.

Sources in the Ugandan government revealed that the Tanga route is also being considered even though the state has no hand in the ongoing discussions led by the oil companies.

A senior Ugandan official said while the country had in principle agreed to the Lamu route as reflected in the MoU that Kenya and Uganda signed during President Kenyatta’s recent visit to the country, the concerns Uganda raised such as the cost and security, mean that the Tanga route could still be explored.

The official added that Uganda would soon commission a feasibility study for the Tanga route, but this would be strictly for benchmarking purposes against alternative routes to the north and determining comparative costs for them.

In the MoU that the two presidents signed affirming the Hoima-Lokichar-Lamu route, it was conditional that Uganda get a low tariff pipeline. Other conditions included Kenya guaranteeing security on its side of the pipeline, quick implementation of the project and mobilisation of the finances, which would be a joint effort.

Although one Ugandan official describes President Museveni’s conditions as just being “precautionary,” the security provision is being seen by the oil companies as likely to push the tariff beyond what alternative routes would offer.

However, Earnest Rubondo, director at Uganda’s Petroleum Exploration and Production Department (PEPD), said all the three possible routes — Lamu, Mombasa and Tanga — are still on the table until conclusive studies are completed.

Last month, the Japanese company Toyota Tsusho, handed to the government a study showing that the Hoima-Lokichar-Lamu routing for the pipeline was more feasible than the alternative — Hoima-Nairobi-Mombasa route.

Low Crude Price Will Lead To The Shortage of Talents In Many Petroleum Companies

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Oil
companies have been doing recruiting in  local university. Where by graduates from these Universities have received jobs offer prior to their graduation date. Forexample In
Tanzania, graduates from University of Dar es Salaam and Dar es Salaam Institute of Technology have received these job offer from oil companies.
In
order to cope with this low level price ,oil companies has been  giving up  to work with local universities  since june last year. The truth is, Many oil
companies will have scarcity of talents 
they used to find  from  local universities. And when I say talents, I mean
from operators, geologist engineers ,accountants, human resources people  and all who have background unrelated with oil
and gas industry
MY
FINAL THOUGHT
  Currently I am very anxious about this low
crude price.If this  downturn will be  long slump,probably  it could affect graduates jobs prospect and
oil companies can’t find the talents they need. But if the slump will be short,
petroleum companies could find the talents they need and this will give
graduate future they are trying to seek for.
Dear
readers we would love to hear your views on all of these

Swala Gets Extension to its Kilosa-Kilombero, Pangani Licenses in Tanzania

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Swala Energy Limited (Swala or the Company) reported Monday that the Tanzanian Ministry of Energy and Mining (MEM) has agreed to extend the period within which an exploration well must be drilled in each of the Kilosa-Kilombero and Pangani licenses in Tanzania to Feb. 20, 2017. This one-year extension is to be deducted from the 4-year additional exploration extension period currently due to commence Feb. 20, 2016, resulting in the additional exploration period having a duration of three years.
Under the Production Sharing Agreements (PSAs) that govern activity on each of these two licenses, the Joint Venture (JV) was originally obliged to drill an exploration well in each license by Feb. 20,. 2016. The JV carried out a seismic survey that was completed in December 2014 and in the same month the JV and the Tanzanian Petroleum Development Corporation (TPDC) agreed to carry out the processing and interpretation of the seismic data during the first half of 2015. This left relatively little time in which to confirm drilling locations and secure long lead-time items, and the JV therefore requested TPDC and MEM to allow it to complete its exploration drilling obligations in the next exploration phase. Both entities have now consented to this modification.
Dr. David Mestres Ridge, Swala CEO, said: “The joint venture has been actively preparing to drill the two licenses and we are grateful to MEM and TPDC for their pragmatic flexibility in respect of the drilling timetable. In June, Swala Oil and Gas (Tanzania) plc appointed an Operations Manager with responsibility for the drilling campaign and it is in the process of engaging a consultant to carry out the Environmental Impact Assessments for the drill locations. In parallel, it has been further interpreting the seismic data so as to optimize those eventual drilling locations. The extension of the time limit for completing the exploration drilling allows the JV to continue its preparatory work with the comfort that all steps are being taken to maximise the chances of success and minimise costs whilst not compromising on either health, safety or environmental integrity.”


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.”
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The Ministry of Energy & Mineral Development has announced that
the “Uganda International Oil & Gas Summit” (UIOGS) will be held in
Kampala on 16-17 September 2015.

With a first-class conference programme led by Government, Public
Sector and Private Sector industry leaders; the Summit marks an
important point on the global calendar.

UIOGS is held under the Patronage of Eng. Irene Muloni,Minister of
Energy and Mineral Development; and will be used by the Ministry as its
official platform for meeting international companies and presentation
of the multitude of energy projects presently ongoing or planned for in
Uganda.

Uganda has much to offer the global oil and gas community and 2015 is
an exciting year as the country moves towards commercial production.
Uganda is blessed with its natural resources and now has an estimated
6.5 billion barrels of oil in place, a high drilling success rate of
85%, advanced refinery plans, vast acreage of underexplored areas rich
in hydrocarbons and much to look forward to with the new licensing
rounds.

The UOGS programme will provide an invaluable insight into all the major issues, challenges and opportunities including:

  • Focus on the licensing rounds and new opportunities
  • Update on existing fields and exploration success
  • Financial and regulatory frameworks
  • Uganda’s Refinery Project – 60,000 bpd by 2020
  • Move to commercial production
  • Supporting the oil and gas industry through a skilled workforce and local content
  • Infrastructure developments to support oil & gas
  • How can a successful oil industry support our drive towards rural electrification

The Ministry of Energy & Mineral Development will be using the
UIOGS platform to actively engage with allits partners and suppliers
from around the world. The services of the renowned market leaders for
oil & gas conferences; Global Event Partners have been engaged to
work alongside domestic experts Image Care to ensure that UIOGS is a
first-class event that puts Uganda firmly on the global map.

UIOGS is a two day conference that will be held at the Kampala Serena
Hotel on 16-17 September 2015. The programme will be opened by Hon. Eng
Irene Muloni and will feature more than 30 Government officials,
Company leaders and Industry experts gathered from Uganda, the region
and throughout the world to give Uganda a truly global platform.