Tag Archive for: oil discovery in Tanzania

Tanzanian pipeline isn’t commercially viable, CEO Hill says

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Export-route decision necessary to get industry off the ground Tanzanian pipeline isn't commercially viable, CEO Hill says

Export-route decision necessary to get industry off the ground
Tanzanian pipeline isn’t commercially viable, CEO Hill says

 

East Africa’s race to export its first oil will eventually be a tie between neighbors Kenya and Uganda because both need to share a pipeline rather than compete for different routes, a producer in the region said.

“The only sensible route for the pipeline is a joint pipeline” running through both countries, Africa Oil Corp. Chief Executive Officer Keith Hill said by phone from Calgary.

The company this week sold stakes in some East Africa assets to Maersk Oil & Gas A/S.

Agreement on an export route is necessary to get the countries’ oil industries off the ground: While crude was discovered in Uganda in 2006 and four years later in Kenya, both are still in the planning stage of commercial development.

Also Read:2-reason-why-East-African-oil-and-gas-industry-could-change-global-energy-market

One option is to send the oil through the Lokichar basin in northern Kenya. Another is to run a line via southern Kenya and the capital, Nairobi. A third is to pipe the oil through Tanzania.

“I don’t believe the Tanzanian pipeline is commercially viable,” Hill said on Monday, without elaborating.

Uganda, which last month signed a memorandum of understanding with Tanzania and oil producer Total SA to study a possible pipeline through the coastal nation, has repeatedly said the eventual shipment route must be the cheapest to develop. Kenya has estimated the cost of the proposed northern line at about 400 billion shillings ($3.9 billion).

Joint Ventures

A pipeline to the Indian Ocean would allow Africa Oil, together with larger partner Tullow Oil Plc, to start exports from joint ventures. Tullow has found oil in both countries, with Uganda estimating finds at 6.5 billion barrels and Kenya at 600 million barrels.

Maersk Oil said Monday it will acquire half of Africa Oil’s shares in three onshore exploration licenses in Kenya and two in Ethiopia for as much as $845 million.

The deal shows companies are willing to invest in East African discoveries even before a pipeline route is decided. It drove Tullow shares up 4.5 percent.

Oil-industry development has slowed in East Africa over the past year as slumping energy prices forced companies to cut costs and trim budgets. Brent crude has tumbled more than 40 percent to about $47 a barrel in the past 12 months amid a global supply glut.

“People have finally decided the oil price has hit bottom and we will see more deals being done in the next three to six months as people start to feel a little bit more stability,” Hill said. “There is no way on earth we can satisfy world demand below $75 a barrel long-term.”

Swala Energy Fast-Track Drilling Plan in Tanzania

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Swala Energy has engaged a drilling support contractor in Tanzania

Swala Energy (ASX:SWE) has accelerated its onshore oil and gas development plans in  Tanzania by engaging a drilling support contractor ahead of further exploration at the Kilosa-Kilombero and Pangani licences.

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Swala’s subsidiary operator at the properties, Swala Oil and Gas (Tanzania), has awarded the Drill Support Team contract for the 2016 drilling campaign to the Tanzanian subsidiary of AWT International (Asia), a Singapore-headquartered firm offering subsurface, subsea and surface facilities engineering services and contracting solutions to the oil and gas industry.

Also Read:how-to-drill-oil-and-gas-well

The Drill Support Team will effectively act as Swala Tanzania’s drilling management team, tasked with designing the wells, implementing the planning required ahead of the wells, including the ordering of long-lead items, and primarily to engage with rig contractors (and operators) in the area to determine the optimal rig sequencing and the design and cost of the wells.

The award allows drill planning to begin immediately and sets up Swala to achieve its 2016 drilling objectives.

The Kilosa-Kilombero licence has three deep basins – Kidatu, Kilosa and Kilombero.  The Pangani licence has one – the Moshi basin.

The two projects are considered geologically related to structures which host at least 2 billion barrels of oil.

Seismic work carried out in 2013 identified a large-scale structure in the Kilosa basin, measuring some 40-50 square kilometres in extent. More importantly, it identified the “Kito” prospect in the Kilombero basin, where initial analysis suggested structural trapping analogous to that seen in Uganda (where more than 4 billion barrels of oil have been discovered to date) and Kenya (more than 600 million barrels).

A second seismic survey in 2014, concentrating on the Kilombero basin, slightly increased the size of the Kito prospect and identified a further six leads and prospects that contribute to the basin’s potential upside.

The 17,156-square-kilometre Pangani licence, meanwhile, has demonstrated the existence of in Moshi of a fault-bounded basin some 25 kilometres wide with sedimentary fill of between 2,000 -3,000 metres.  The company is still reviewing the 2014 seismic data and focusing on the Kikuletwa lead, to the west of the basin.

Tanzania: TPDC hints at grand ambitions for Natural Gas Master Plan

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 developments appear to be on hold for now, our East Africa Politics & Security report points out that Tanzania still appears to have some ambitious plans for the country’s gas future.

With the slowing interest from oil companies, the Tanzania Petroleum Development Corporation (TPDC) appears to be taking the lead in the sector, but there are still issues which need to be resolved in the industry to help build confidence that the ambitions can be fulfilled.

TPDC has spoken of its extensive ambitions for the use of natural gas, serving domestic and regional markets, yet in the absence of any firm plans the ambitions do not create any greater certainty. Regionally,

Tanzania sees natural gas markets in most of its neighbouring countries. Addressing the Kenyan parliament on 6 October during an official visit, President Jakaya Kikwete said that Tanzania and Kenya are ‘discussing ways to extend the natural gas pipeline to Kenya’.

Speaking to the state daily newspaper Habari Leo the following week, TPDC’s Director of Gas Processing, Transport and Distribution, Wellington Hudson spoke of serving markets in the Democratic Republic of Congo, Rwanda, Burundi and Uganda, as well as Kenya.

Also Read:interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

He further told Habari Leo that an investor has agreed to finance a pipeline to Bagamoyo, to service tourist hotels, with the possibility of an extension to Tanga in the north, and Mwanza in the north-west.

The prospect of a natural gas pipeline running parallel to a crude oil export pipeline from Uganda is also enticing to TPDC, which confirmed to Habari Leo that it is in talks with Total to develop such a project. Exploiting Tanzania’s deep sea gas resources will depend on having a feasible Natural Gas Utilisation Master Plan (NGUMP) in place.

Also Read:Top-3-places-on-the-internet-where-evey-tanzanian-can-learn-about-oil-and-gas-sector-for-free

The document has been in preparation since at least 2011, with no sign of it being finalised soon. The NGUMP is critical to allow investors to make a final decision to invest on the LNG plant, as it will determine the domestic market obligation to be demanded by government.

Currently the Statoil Production Sharing Agreement stipulates that 10% be reserved for domestic use, a figure which is also likely to be found in the BG agreement. BG in particular has argued strongly over the past two years that realistic domestic needs can be served by onshore and near shore reserves. They also argue that the feasibility of the LNG plant will be strengthened if their domestic obligation is set at zero.

Top 3 Places On the Internet where Evey Tanzanian can Learn about Oil and Gas Sector for Free

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I finally choose to write this article after getting requests from people who are eager to venture into oil and gas industry, but they lack prior knowledge of oil and gas industry.

Some of them are journalists who are very interesting to write about Tanzania oil and natural gas news and trend of oil and gas companies in Tanzania, but they don’t know how to go through it,

Some are entrepreneurs they want to invest into oil and gas industry, but the don’t have basic information on oil and gas industry.

The fact is that you not invest in the business you don’t know and is the reasons for this investor they want to have a basic knowledge of oil and gas industry

So the article explains the online platform everyone can learn about oil and gas industry.

If you are students or oil and gas professionals and you want to learn new things you will love this article, if a reader you don’t have basic knowledge on oil and gas industry, then you are about to learn great stuff

3 online opportunities every Tanzanian can learn about oil and natural gas industry
Recent days internet has facilitated everything, you can learn anything you have to know by simply on a single click of your computer mouse.

Let face them

1:OpenOil.com
Through this online platform, you can learn the history of Tanzania oil and natural gas industry, oil and gas companies operating in Tanzania, areas of oil and gas production in Tanzania,

Also, you can understand the government and private companies that are involving directly in the oil and gas industry in Tanzania.

You will have better understanding on function of Tanzania petroleum development co-operation (TPDC), oil and gas exploration activities in Tanzania and you will learn about petroleum act and local content policy of oil and gas sector in Tanzania
To start learning follow this link http://wiki.openoil.net/index.php?title=Tanzania_Oil_and_Gas_Almanac

2: The biggest oil and gas knowledge community(Oges.Info)
This is the largest oil and gas community which involve oil and gas experts with enough knowledge and experience in oil and gas industry all over the world.

These people they have already worked with various oils and gas companies across the world.

Also you meet with graduates and other students worldwide, through this site you allowed to ask anything then oil and gas expert will answer your question.

You will learn a lot from oil production, oil and gas drilling, oil and gas project management health and safety etc. Your job now is to visit this site and join this bank oil and gas knowledge. To check out all resources on this website visit http://www.oges.info/

Also Read:Interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

3:Alison
Is online learning platform founded 2007 by Mike Fereek, a serial entrepreneur? Since 2007, more than 350,000 people graduated from its free certificate and diploma courses.

For Tanzanians, this is the perfect place to find out a lot of stuff for oil and gas industry.

The sad reality is that quality and standard of oil and education in most east African countries including Tanzania are a terrible situation, most people and curriculum are often outdated, not meet the demand of petroleum industry.

That is why foreign entrepreneurs and investors use this challenge to make money, you will be amazed on how foreign companies they swarm to Tanzania to invest oil and gas curriculum development
To check out oil and gas available on Alisona follow this link https://alison.com/search/result/?q=oil+and+gas

Final words
If you have read this article, I congratulate you!

But procrastination is the killer of dreams, don’t say I will start later, you’re the right time to begin to learn new things are now. Oil and gas industry is no guarantee for those who unwilling to learn new things.

Dear reader we love to hear all of these from you:

Industry Insight: Is East Africa’s gas asset boom about to go bust?

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Recent oil and gas discoveries across East Africa, most notably in Mozambique and Tanzania, have seen the region emerge as a new player in the global oil and gas industry.

As exciting as the huge gas fields in East Africa are, the strong decline in oil prices and expectations for an L-shaped recovery with low prices over the coming years, are increasingly challenging the economic viability of the industry in this region.

The discoveries were expected to drive billions of dollars in annual investment to the region over the next decade.

Read:Interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

According to BMI estimates, the finds in the last few years are more than that of any other region in the world, and the discoveries are expected to continue for the next few years. However, falling global oil prices are threatening the commercial viability of many of these gas prospects.
Gas opportunity

The Indian Ocean, off the coast of Mozambique and Tanzania, is proving to be a rich hunting ground for natural gas exploration. According to US Geological Survey estimates, the combined gas reserves of Mozambique and Tanzania could be as high as 250 trillion cubic feet.

In Mozambique alone, proven gas reserves have increased dramatically from a mere 4.6 trillion cubic feet in 2013 to 98.8 trillion cubic feet as of mid-2015. Given continued offshore discoveries and the size of discoveries to date, continued growth in proven gas reserves is likely to continue into the foreseeable future.

New exploration on more frontier blocks, however, will likely be slowed as oil and gas prices fall and companies apply increasing caution to investing in frontier markets with nascent industries, poor infrastructure and long lead times.
Driving down prices

As liquefied natural gas (LNG) contracts remain heavily indexed to oil, the fall in global oil prices poses significant downside risk to gas production projects. Persistent oversupply in the oil market continues to put downward pressure on oil prices.

This trend of lower prices is unlikely to reverse in the near future with future prices estimating the average Brent crude oil price to range between $50-65/bbl over the next five years. Industry research estimates that an oil price of $70-80/bbl would be needed for the LNG gas projects just to break even.

Sustained lower oil prices are likely to take a heavy toll on the development of upstream gas production and downstream refining projects in the region, as pricing uncertainties affect the commercial viability of LNG projects, delaying investment in the region.

This will likely see companies hold off on Final Investment Decisions (FID) as they attempt to overhaul projects to cut costs and wait for more certainty on the direction of prices.

In Mozambique, for example, both Eni and Andarko have yet to reach a FID on their respective LNG projects. The lower price environment will likely force these companies to secure more off-take agreements before reaching FID.

Furthermore, it is unclear whether these projects would be economically viable at current pricing levels, and given expectations for a slow recovery in oil prices over the coming years, we could see further uncertainty and delays in reaching FID.
Evaluating strategy

The free fall of global oil prices is forcing companies to re-evaluate their growth strategy in the region. Anadarko CEO, Al Walker told investors that it is “unlikely that we will have the kind of margins that we have seen historically that would encourage us to go back into a growth mode.”

In Tanzania, the situation is just as precarious. Gas output will depend on construction of an LNG export terminal; however the project partners – BG Group, Ophir Energy, Statoil and ExxonMobil – have yet to reach FID, due to pricing uncertainties and a range of legal and regulatory hurdles.

Downstream refining projects are also in jeopardy. According to a Sasol report, Sasol, Eni and ENH have announced a partnership to look into a feasibility study for a large-scale gas-to-liquids (GTL) facility in Mozambique.

However, key to the progression of a GTL project in Mozambique will be the cost of the gas feedstock and the long-term outlook for oil prices. Central to GTL economics is the price spread between natural gas and oil.

On a positive note, both Mozambique and Tanzania are expected to experience positive gas consumption growth as their respective governments look to increase the use of natural gas in domestic power generation. However, as in the case of Nigeria, there is a risk that each government may fix domestic gas prices, which could hinder investment in the region. Interestingly, Nigeria recently raised local gas prices to stimulate investment and plug persistent local shortages.

prepared by  Adam Bennot is a private equity Analyst at RisCura, a global, independent financial analytics provider and investment consultant. He is responsible performing valuations of companies held by private equity funds and funds of funds in Africa. 

Interesting Business opportunities In Tanzania oil and natural gas Sectors for Local Entrepreneurs

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Wish to invest in oil and natural gas sector in Tanzania?

You are in the process of learning admirable stuff.

With these immense discovery of natural gas in Tanzania, there is a higher chance for local entrepreneurs and companies to generate abundant wealth in the oil and gas sector.

The article examines  education and training business opportunities in Tanzanian oil and natural gas sector that you can start to day and creat huge wealth.,

Also it explains the reasons why there is huge demand for education and training in oil and gas sector and finally I will explain to you the tips to succeed in this kind of investment.

Read:2-reason-why-east-african-oil-and-gas-industry-could change-global-energy-market

Why is the demand for education and training in Tanzanian oil and natural gas sector
Before we move to the business opportunities in Education and training in natural gas sector in Tanzania is important to have better understanding on the factors that drives the great demand of this business,

Desire to  higher productivity
In order to increase production and efficiency in workplace, both government and private sectors should consider staff training

Having Staff who are well trained in Tanzania natural gas sector is very important as it help most oil and gas project to succeeded at right time and with higher efficiency

Staff training has wider ranges from technical to no technical programmes, including presentation leadership etc.This indicates that demand for this investment is very very huge in Tanzania.

More skilled local workers are required in Tanzania oil and gas sector
According to FootprinttoAfrica Tanzania government has set a goal to train 1,350 graduates in different courses by June next year.

But still Tanzania requires a sizable number of human capital with relevant knowledge and skills in the development and management of the oil and gas sector in order to realize her full potential of the local content in the industry.

So more training are required to locals in order to have sizable number of  labors  that have knowledge and skills relevant to oil and gas.

Tanzanians expect  millions of jobs from oil and gas industry
According Twaweza.organization, Tanzanians expect 4 millions jobs from oil and natural gas sector, this drives more demand for education and training business, as the many Tanzanians are swarming to study courses related to oil and gas industry in order to be employed in this industry.

Educational and training Investment Opportunities in Tanzania’s’ natural gas sector.
The educational and business opportunities that entrepreneur like you or local companies can consider in Tanzanians natural gas sector include the following

Train trainer program
According to the Norwegian agency for development co-operation(NORAD), revealed that among of the challenge that training in oil and gas sector in Tanzania faced is a lack of qualified teaching staff. imgresAs a local entrepreneur.

You can turn this challenge into opportunities by establishing train trainer program. Your job here is to train those college and university tutors in Tanzania so as to ensure they deliver quality education that is relevant to oil and gas industry.

Also, you can go the extra mile by training other people in a national oil company and the ministry of energy as a whole in order to increase efficiency at their work that meet the demand for oil and gas industry.
Curriculum development
Among of specific objectives of 2014 local-content-policy-of-tanzania-for-oil-gas-industry is to enable regional training institution runs requisite curriculum applicable for oil and gas industry.
Currently, we have multiple local institutions that offer oil and gas related courses. We hold the University of Dodoma, University of Dar es Salaam, Mineral Resources institute, the Nelson Mandela Africa institute of science and technology and Earth science institute of Shinyanga.
For entrepreneur like you this is the opportunities to create wealth by fixing this challenge of poor curriculum

Vocational training
Owing to the shortage of vocational training relevant to oil and gas industry in Tanzania, there are not sufficient machine operators, repairmen in Tanzania’s’ natural gas sector. imgresIn order reduces the influx of foreign workers in Tanzanian oil and natural gas sector. The industry will require more local labors to do this job in this oil and gas industry.

Tips to succeed in education and training business in Tanzanian oil and natural gas sector
As you understand venturing into education and training business in oil and gas sector, you must have clear goals and serious consideration.
The following are some tricks required in order to reach your destination
Laws rules and regulations
In Tanzania education and training institution is controlled by government, therefore in order to be successful in this business is better to follow those rules and regulation, interested entrepreneur you should get permit or license from the relevant authority.
Capital
As the capital becomes a popular excuse to countless entrepreneurs, is very bitter if you will find investors and a bank that will be willing to invest into your training idea. Other ways start your education and training business in the oil and gas business at a scale that you afford.
Partnership and alliance is essential in this business
The common challenge in education and training business in oil and gas sector is the experience and knowledge of teachers, the solution of this is partnership or alliance.

You should form partnerships with other foreign based training providers such as university and colleges that have a qualified trainers with knowledge and experience to deliver quality training

For example Germany United Kingdom   they are willing to work closely with private sector to deliver support in training institutions in Tanzania and East Africa as whole

You can also read:what-does-natural-gas-discovery-in-tanzania-mean-for-local-entrepreneurs

Read:6-oil-and-gas-business-opportunity-in-Tanzania

Final Word
Tanzania is the land of unlimited business opportunities, Since the demand of training business in Tanzania natural gas sector is very huge, Entrepreneur like you is right time to accumulate wealth in this  interesting business

Uk, German To Prepare Local People for Jobs in East Africa Oil and Gas Sector

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Nairobi — THE United Kingdom and German have designed an initiative aimed equipping local populations with skills needed to seize job opportunities in the oil and gas sector in East Africa and Mozambique.

The initiative by the UK’s Department for International Development (DFID-Kenya) and the German Ministry for Economic Cooperation and Development (BMZ), dubbed Skills for Oil and Gas Africa (SOGA) will focus on Kenya, Uganda Tanzania and Mozambique.

Also Read:2-reason why east African-oil-and-gas-industry-could-change-global-energy market

The five year project (2015-2019) implemented by GIZ and co-funded by UK aid (£25 million) is expected to help 32 000 local people to get sustainable jobs in the sector over the period.

Hendrik Linneweber – GIZ Country Director for Kenya said the recent oil and gas discoveries in Kenya and Eastern African countries offered an unprecedented opportunity for economic growth and development.

“In the next two years, the oil and gas Industry will have a huge demand of technical skills and there is an urgent need to qualify and prepare these people for future jobs,” Linneweber.

Head of DFID Kenya, Lisa Phillips, said the UK, through DFID, was committed to ensuring efforts to promote economic development in East Africa wer sustainable and long-lasting.

“SOGA will assist the private sector and partner governments in preparing their workforce for upcoming opportunities and will ensure that any jobs which are created by the Oil & Gas Industry are open and accessible to local people,” she said.

An inception phase of the programme was conducted between January and September 2015 in the four countries with the aim of identifying common areas for partnership and collaboration with the private sector and government which would be integrated in the implementation of the programme and national system.

The will work closely with the private sector and government to deliver support to training institutions, establishing business enterprise development centres and assist local people to win contracts to supply goods and services to the oil and gas industry.

Kenya undeterred by plan to build oil pipeline through Tanzania

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Kenya has shrugged off fears over a decision by neighbouring Uganda to consider building a crude oil pipeline through Tanzania.

Kenya brushed aside concerns that Uganda’s plan, if it proves cheaper than the alternatives, would scuttle its infrastructural plans for its own oil pipeline.

Acting Transport Cabinet Secretary James Macharia told the Nation on Wednesday that while Kenya is “keenly keeping a close watch on the unfolding events in Uganda”, it would go ahead with its own infrastructural plans “undeterred”.

“We are going according to our own plans. Nothing has changed,” said Mr Macharia in Nairobi.

Last month, it emerged that Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route.

Uganda, Tanzania, the Tanzania Petroleum Development Corporation and Total E&P Uganda signed a memorandum of understanding (MoU) outlining new pipeline arrangements.

The MoU also invited other interested parties, such as Kenya, to assess and develop the Tanga route, creating a base for developing a crude export pipeline from Hoima to Tanzania’s Tanga port.

If Uganda goes ahead to construct the pipeline through Tanzania, it will deal a major blow to Kenya’s Lamu Port-South Sudan-Ethiopia Transport corridor (Lapsset) project.

“We are simply evaluating the least-cost pipeline route through the East African coast, our plans focus on ensuring our crude oil has value,” Uganda’s Ministry of Energy and Mineral Development Permanent Secretary Fred Kabagambe-Kaliisa was quoted as saying in Ugandan media.

But in Nairobi, Mr Macharia said while Kenya was keenly awaiting the decision from planned talks between President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni on the way forward, Kenya’s plans would not be derailed.

“In the last summit which was a few weeks ago, the matter was discussed and what was decided was that the two head of states (Mr Uhuru and Mr Museveni) would hold bilateral talks and chart the way forward.

“Either way we are looking into options which will protect our national interests. There is no cause for concern,” said Mr Macharia.

During his presidential visit to Uganda in August, President Kenyatta said Kenya and Uganda had settled on the northern route for the Sh400 billion crude oil pipeline that would transport oil from Albertine to Lokichar in Turkana County.

Tanzania:Mnazi Bay Operational Update – First Payment Received

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Wentworth – the Oslo Stock Exchange and AIM listed independent, East Africa-focused oil and gas company – is pleased to provide an operational update following first delivery of gas to the pipeline project from its assets near Mnazi Bay, Tanzania.
Deliveries of gas

Further to the company’s announcement on 20 August 2015 that gas deliveries to the new transnational pipeline had commenced, the gas production facilities at Madimba, the Mtwara to Dar es Salaam pipeline and the Kinyerezi Gas Receiving

Facility have now been fully commissioned and are operational. Mnazi Bay Gas is currently being used to generate power in Dar es Salaam at the existing Ubungo-II and Symbian power plants, as well as at the new Kinyerezi-I power plant.

Production volumes into the pipeline are currently at 33 million ft3/d from three wells on a restricted flow basis, and are expected to reach 80 million ft3/d once all of the generators at these three power plants are fully operational, which is expected in 4Q15.

You can also like to read: 2 Reasons why east African oil and gas industry could change global energy market

Three of the five existing gas wells at Mnazi Bay have been successfully brought on-stream with well performance in line with expectations. The fourth well is expected to be tied in during the month of November 2015 and the fifth well is expected to be tied in and ready to produce into the new pipeline in 1Q16.
Sales and payments

Sales gas volumes of 1032 million ft3 were delivered to the new pipeline during October 2015 (an average of 33 million ft3/d) and a gross payment of US$3.8 million to the Mnazi Bay Joint Venture Partners has been received from the buyer of the gas, Tanzania Petroleum Development Corporation (TPDC).

Under the Gas Sales Agreement signed on 12 September 2014, the sale price has been set at US$3 per million BTU, approximately US$3.07 per thousand ft3, rising in line with the US CPI industrial index commencing in 2016.
Geoff Bury, Managing Director, commented:

“We are pleased with the progress that has been made by the Government during the start-up and commissioning phases and we are delighted about how well the new pipeline system is working. We, along with our Joint Venture Partners, feel confident that our existing wells will be capable of delivering the initial target production volumes of 80 million ft3/d while we expect the Government owned power plants to be ready to take the full amount of these volumes during the last quarter of 2015. The Mnazi Bay Concession gas plays a vital role in reducing the cost and improving the reliability of power generation in Tanzania.

Octant Energy To acquire Assest In Tanzania and Kenya

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Octant Energy Corp. (TSX VENTURE:OEL) (the “Corporation” or “Octant”) announces that it has entered into three agreements with subsidiary companies of Afren PLC to acquire assets in the Republic of Kenya and the United Republic of Tanzania (the “Proposed Transaction”).
The assets include Kenya Block L17/L18, Kenya Block 1, and in Tanzania, the Tanga Block.
The acquisition is important in the development of these assets for the region as it ensures that a team with extensive regional knowledge progresses the respective Production Sharing Contracts forward and raising the profile of the region through the continued delivery of near term actionable items on these assets.
The Octant team is lead by Richard Schmitt, President & CEO, and Christopher McLean, Executive Chairman. Both men have a long term history in the region with experiences going back to the initial acquisition and finance of the current discoveries in Kenya and select assets in Tanzania over the last 7-10 years.

Richard Schmitt, President and CEO of Octant says, “I am encouraged to be working with assets I know well from my past experiences.

This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further movement towards energy security and domestic growth in the countries. For me, being a part of East African growth and development again is a great opportunity and privilege.”

The acquisition of the PSC’s’ by Octant remains conditional on customary approvals from the respective governments. Once approval is received Octant will complete the acquisition of the PSC’s from Afren within 7 days.

At this time Octant is evaluating its future capital requirements with respect to these PSC’ and will provide future updates with respect the Proposed Transaction in due course.