Tag Archive for: oil discovery in Tanzania

Swala Oil Will Continue Exploration In Tanzania Despite Low Oil Prices

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, Tanzania - Swala Oil and Gas Tanzania will continue with its exploration programs across the country despite a drastic fall in global oil prices which has affected oil share prices globally including Tanzania.

 Tanzania – Swala Oil and Gas Tanzania will continue with its exploration programs across the country despite a drastic fall in global oil prices which has affected oil share prices globally including Tanzania.

 

Speaking shortly after the Annual General Meeting a year since its listing on the Dar es Salaam Stock Exchange (DSE), Swala Chief Executive Officer, David Ridge told reporters that for the past twelve months oil has come down from $130 to $50 a barrel adding that the situation has affected oil share prices everywhere in the world.

Dr Ridge said Swala Tanzania Initial Public Offer (IPO) price of Tsh 500 was the price still in existence since the company listed on DSE stressing that it has maintained the value over the last twelve months.

Read:3 surprising advantages and-disadvantages of oil and gas career

He however noted that, the company has lost 18% to 16% of its share value in the last twelve months explaining that the movement in share prices is global and partly driven by the fluctuating oil prices. “In case oil prices change just like other commodities do that will be reflected in the line share pricing” he said

Ridge noted that, if the market is difficult and share prices are going down investors are obliged to look for other ways of financing and the deal that Swala entered with Tata Petrodyne was one such way of alternatively financing Swala developments.

“Despite the fall of oil prices, Tata was willing to seal the deal that ensured that we will be able to sell some equity to a new participant. In our agreement, Tata will pay us a portion of past costs that will enable us to get an additional $6 million from $7.5 million which will go a long way in financing our operational costs”, said Dr Ridge.

“Tata Petrodyne will also pay part of our drilling costs up to about $4 million to $4.5 million and if we are successful in Kilombero they will pay another $1 million to work on exploration which brings the total value of the deal to stand at $12.5 million. In this regard, we do not have to raisemore equity at the time when the share prices have not come to its ideal prices,” he added.

Swala is the first oil and gas company to list on an East African stock exchange. It is an affiliated company to Swala Energy Limited, a company that is listed on the Australian Securities Exchange (ASX).

Swala holds assets in the world-class East African Rift System with a total net land package in excess of 17,500km2. Swala has an active operational and business development programme to continue to grow its presence in the hydrocarbon provinces of East Africa.

Price of Oil has now stabilised- Tullow Oil chief executive

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Oil prices have stabilised and a gradual increase is now possible, according to Tullow Oil chief executive Aidan Heavey

Oil prices have stabilised and a gradual increase is now possible, according to Tullow Oil chief executive Aidan Heavey

 

Prices have plunged to historic lows over the past 12 months, a boon to consumers but heaping pressure on Tullow and other producers.

In an interview at an industry event in Cape Town, South Africa, Mr Heavey, inset, said his company won’t change strategy until prices recover.

Tullow “reset” its business early on to weather the price collapse, he said. That included signing up so called “farm-in partners” to help cover costs and reducing outgoings.

The company reduced its oil exploration budget to $200m a year in 2015 but sees that potentially doubling in future.

Its annual exploration spend was $800m in 2014 and more than $1bn in 2013.

Meanwhile, in relation to one of its biggest projects in Uganada, Mr Heavey plans to take a final investment decision (FID) in early 2017, later than planned.

Tullow discovered oil in Uganda in 2006 and had planned to make an FID on its oilfield by the end of 2016.

“You need a pipeline route firmed down and then you need to get FID. So FID probably in early 2017 and then three years later, you would have first oil,” Mr Heavey said at the Africa Oil Week conference organised by Global Pacific & Partners.

Tullow expects to obtain a production licence this year in Uganda and to start oil output there in 2020, he said.

Uganda has been pushing for an earlier production date around 2018, citing work by other investors. But previous targets have slipped.

“If Tullow is talking of 2020, that’s their business,” said Ugandan Energy Ministry spokesman Bukenya-Matovu Yusuf.

“CNOOC which has a production licence has been doing a lot of work toward production and our 2018 target still stands.”

Any investment decision will hinge on a route for an export pipeline out of land-locked Uganda to a port on the Indian Ocean.

That’s also true for China’s CNOOC and France’s Total, both also investing in Uganda.

A proposed northern Kenyan route has raised security concerns as it lies near war-torn Somalia. Total is considering a pipeline through Tanzania. Shares in Tullow closed down 4.65pc at 195pence in London

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

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.