Tag Archive for: petroleum act 2015

WB urges Uganda to guard against volatile oil prices

imagesThe World Bank has asked governments of Uganda, Kenya and Tanzania to develop insurance measures to guard against fluctuating oil prices as they prepare to begin production.

Prices of oil and gas usually affect the cost of goods and services at both national and international markets.
Uganda has both oil and gas deposits, Kenya has oil, while Tanzania has large deposits of gas and the three East African countries are preparing to begin producing for local and international markets.

Addressing participants at a regional conference on oil and gas in Entebbe recently, the World Bank Senior Economist Uganda country office, Dr Jean -Pascal Nganou, said oil and gas prices will always fluctuate and countries should be prepared to handle the consequences.

The conference was organised by Friedrich-Ebert-Stiftung.
He said in case of price dip by diversifying their by economies instead of aligning every development agenda to oil and gas revenue.

Also Read:7-ways-to-make-money-in-Tanzania-oil-and-natural-gas-industry

“Oil and gas prices will always fluctuate, consequently, oil and gas producers should develop by themselves and for themselves a good insurance mechanism against sudden drops in world prices,” Dr Nganou said.

He added: “Saving part of future oil revenue is the most adequate response to that type of problem. Several governments have opted for a variety of oil revenue saving mechanisms.
“Uganda, Tanzania and Kenya should review these mechanisms, analyse the results achieved, and make their own choices based on realistic assessment of their own situation, needs and risks.”

The World Bank produces periodic reports on world commodity price focus. In the latest report, the bank raises hope that there is going to be a pick-up in oil prices in the international market.

In this regard, Dr Nganou said: “Our commodity price specialists believe that the price of oil will rise again and most of the projections in Uganda are based on international crude oil price of $90 (Shs319,500) per barrel. We may be right, we may be wrong and this is one of the lessons for a good management of future oil revenue.”

Other challenges
Other than oil prices, East African countries are also faced with the problem of poor infrastructure, which affects the development of the private sector. The infrastructure includes power, roads, railways which East Africa must deal with to realise tangible development.

“Countries like Uganda, Kenya and Tanzania need to repair, and expand their economic infrastructure which at present is a major obstacle to private sector development,” the World Bank senior economist Uganda country office, Dr Jean -Pascal Nganou, said.

He said improved transport, power and water supply services are essential to stimulate urban and rural growth and improve the condition of the population.

The resident director Friedrich-Ebert-Stiftung, Ms Mareike Le Pelley, said oil and gas exploration is not an end in itself for the development process.

“The East African region has had high GDP growth rate but other social indicators like income distribution, unemployment and concept of inclusive development have not yet taken root in the region,” she said.

Tpdc To Start Search For Oil Lake Tanganyika Using Low flying Aircraft

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Dar es Salaam — Tanzania Petroleum Development Corporation (TPDC) will start an advanced search for oil in Lake Tanganyika, the state-owned firm said at the weekend.

From its first stages of surveys across Lake Tanganyika waters, TPDC believes the area from Kigoma Rural, Kigoma Ujiji, Uvinza and Mpanda Rural contains abundant oil resources.

The belief stems from the fact that neighbouring Uganda has already discovered oil in Lake Albert which has the same environment as that of Lake Tanganyika.

Also Read:Managing citizens expectation on Tanzania gas sector

TPDC said in a statement at the weekend that it is deploying a non-invasive Airborne Gravity Gradiometry Survey (AGGS) over Lake Tanganyika North Block in the five districts between November, 2015 (this month) and January, 2016.

“The objective of the survey is to acquire high resolution gravity and magnetic data to map subsurface structural geological framework, thickness and extent of the sedimentary rocks over Lake Tanganyika rift basin,” the TPDC managing director, Dr James Mataragio, said in a statement at the weekend.

Gravity gradiometry refers to a study and measurement of variations in the acceleration due to gravity. Gravity gradiometry is used by oil and mineral prospectors to measure the density of the subsurface effectively and the rate of change of rock properties.

From this information it is possible to build a picture of subsurface anomalies which can then be used to more accurately target oil, gas and mineral deposits.

According to Dr Mataragio it is expected that the AGGS data will assist in planning for another survey that will finally identify potential areas associated with hydrocarbon deposition and subsequently identifying drilling targets.

TPDC is funding the entire project using its own development funds.

The survey campaign will be conducted using a low-flying special aircraft which will be flying between the altitude 80 and 100m above the ground at a speed of 220 kms/hour.

The survey will be flown during the day light time. “We would like to apologise for any inconvenience that may be caused by the presence of the aircraft around survey areas,” he said

Managing Citizens Expectation On Tanzania Gas Sector

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Even though Tanzania natural gas reserves were discovered in 1974, it was after thirty years later, in 2004, that production commenced.

This reveals a situation in which the government was excited to improve its petroleum resources, but was unable to do so due to a weak bargaining position.

Since 2010 several natural gases have been made, this indicates that Tanzania would be among the largest natural gas exporter for the future. According to an International energy of US, Tanzania has the potential to become a liquefied natural gas (LNG) exporter in the future.
However, the most important things to be done is to control public expectation on this natural gas resources. Studies of all oil and gas economies have shown that citizens expectations on natural gas are unrealistic.

Most Tanzanians especially those who live nearby the natural gas is found expect to become rich and are very optimistic that natural gas industry will create millions of jobs others think revenue generated from natural gas will stay in the hands of corrupt leaders and politicians which all of these is unrealistic

In order to avoid resources curse the country should manage expectation of its citizens. The most effective way to do so is what is called “Information sharing and public disclosure”

Information sharing and public disclosure means a country publishes all necessary information relating to Tanzania oil and natural gas industry like the scale and quality of natural gas reserves, exploration cost.

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

Those oil and natural gas agreement should be published. A government together with private sectors should set clear goals through consultations of its citizens and communities where the resources are found.
A country should publish what percentage of revenues generated from natural gas would go to the national budget, and what percentage will set aside for development purpose.

Unavailability of this information to the citizens will result to the mistrust between communities and government

Top 5 Crude Oil Items That Make Every Tanzanian Live Better

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Wonder if you know oil and gas industry has transformed the lifestyle of Tanzanians? Do you think oil and gas industry gives you more freedom?

You are about to learn excellent stuff

Despite the fact that Tanzania does not produce crude oil and the country has no recent crude oil discovery, Every Tanzanian are in contact with items that depend on crude oil on their making, like diesel, kerosene, and gasoline

According to recent statistics published by U.S energy information administration, Tanzania consumes some 35,000 barrels of refined oil product each day in 2013.And all of these were imported.
Top 5 items almost every Tanzanians throughout the country is in daily contact with including the following.

1:Gasoline
Gasoline is the fuel for cars, is the most important crude oil product used by many Tanzanians due to the presence of various filling stations in our countries.

We use gasoline in our car that help us to travel from one place to another.

2:Diesel fuel
Is fuel for car train bus and ship, everyone is in contact with diesel as we use those items for transport purpose to move from one region to another.
3:Kerosene
Is the fuel for planes and jets, kerosene has been helping us to travel hundred of miles in easy and efficient manner, it help us to visit friends family and do business.

Also Read:7-ways-to-make-money-in-Tanzania-oil-and-natural-gas-industry

4:Lubricants
Crude oil also used to make lubricants that enable us to reduce frictions into several machines and engines, Lubricants is applied on car engines, ship engines also it used for making cosmetics

5:Bitumen
Bitumen is another petroleum product, it is very viscous dark brown materials used in construction of high road

 

Final words
Items that are made from crude oil not only improve the lives of Tanzanians but also all over the world everyone uses crude oil products to run devices that allow to travel thousands of miles a day, also it drive  internet and global communication.

Crude oil controls the world and will continue to do so until another form of energy comes along that is cheap and easy to use.

Natural Gas Does More than Generating Electricity and cook food 

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Natural gas has so many uses and benefits to people. The sad reality is that most of us we think natural gas has nothing to do with us than producing electricity and cook food

This article examines applications of natural gas in our daily life.

let meet them

Food companies
Food companies use natural gas to dry several products like chips and potato
Industrial uses
Uses natural gas to generate steam for run various operation
Fertilizer
Natural gas is used as raw materials to manufacture ammonia for agriculture fertilizer

Other natural products that depend natural gas on their making
Natural gas is comprised of chemical like ethane butane propane. So companies process ethane to make ethylene.

Ethylene is used to manufacture plastic know as polyethylene which used to make several products Likes Toys, Housewares

Propane and butane as components of natural gas  also used to manufacture chemical building block
Transportation fuel
Many people are not aware that natural gas vehicle is already in many parts of the world since it has less environmental pollution compared to oil powered vehicle.

Natural gas is used to manufacture paper, clay, stones, and glass

Bonus: Natural gas also is used to dry clothes

Also Read:5-things-no-one-tells-you-about-Tanzania-oil-and-gas-workers

Final words
Recent days, due to environmental and economic and technological natural gas have become the fuel of choice for new power plants. Also operating costs for natural gas equipment are lower than those of energy sources

 

7 Ways To Make Money In Tanzania Oil and Natural Gas Industry

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Are you really looking for a way to make money in Tanzania oil and gas industry?

Fancy to join the league of oil and gas business  in Tanzania?

You are about to learn great stuff

Since 2010 several natural gas discoveries have been made in offshore southern Tanzania.

This led to a flock of numerous investors and companies to invest in oil and gas sector.

The natural gas discoveries have created new investment opportunities

The articles explore several opportunities to make money in Tanzania oil and gas industries by supplying services and products in this industry and also explains tips to succeed in this business

Let’s face them

1:Supply expandable equipment
Provide anything that oil and gas exploration companies need to get oil and natural gas out of the ground.
Example of products you can sell or supply to oil and gas companies include the following

Drilling bit is frequently needed to be replaced after boring rock for some miles. Also, you can supply

Drilling fluids are essential products needed by oil and gas companies, especially in drilling phase in order to transport rock cutting away from the well.
Also, you can supply to their pipes and drilling strings.

2:Accommodation services
Since most oil and gas reserves in Tanzania are found in remote sites, you can make money by providing, tents, catering equipment and kitchens to oil and gas companies

3:Logistics services
Is another way to make money in Tanzania oil and natural gas sectors. This can be done by ensuring there is land air or sea transport ,to move people from and to the sites.

4:Safety and health services
In Oil and gas industry health and safety continue to be significant, You job is to supply medicals and best safety personal protective equipment used in land and offshore field, including safety boot, element etc

5:Human resources- You can make money in Tanzania oil and gas industry by supply of permanent and temporary staff that work for oil and gas companies
6:Communication services
Is the another way to make money in Tanzania oil and gas industry, it include providing internet Tv and other recreational facilities to the remote sites
7:Engineering services,
It includes providing welding services water well drilling services. For those Tanzanians who own water well drilling companies, can deliver services to drilling water well to oil and gas companies.

Tips to succeed in these investment opportunities

Capitals
Capital is most popular excuses to many entrepreneurs, but for these investment opportunities start in the scale that is comfortable to you

Location
In order to succeed in this business, you should provide your services or product faster, well and at reasonable prices, It is better to decide the location where you will reach your customer easily, For Tanzania Mtwara is the better places since there a lot of natural gas discoveries.

Calculate risk
As you understand, every business has its risk. As oil and gas business is a very volatile due tendency of oil downturn It is better to know the risk of each business in order to know how you can avoid them.
Permit/licences
You should get a permit of driving your business from the concerning authorities in order to avoid unnecessary quarrels

Final words
There a lot interesting oil and gas business-opportunities-in-Tanzania , However, it can get very confusing if you don’t know where to look If you have read the article, I congratulate you! Since you have already discovered some of them

Dear readers we love to hear all of these from you

Tanzania Seafarers To Start Exploration of Oil and Gas in Deep and Shallow water

THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

The move comes after the accomplishment of all legal procedures and fulfillment of sailor’s demands such as health insurance and working contracts to companies that they will be working with.

Speaking in Dar es Salaam, the TSC Chairman, Mr Frank Chuma said that they have reached agreement with the government on the fulfillment of important requirements that are needed by seafarers.

He said next process shall be signing contracts between the Community and Tanzania Petroleum and Gas Development Corporation (TPDC). “We are happy that everything went smoothly in accordance to expectations although it took three years until the accomplishment. We are now ready to work anywhere within and outside the country,” he said.

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

“The TSC concern was to see local sailors benefit from opportunities that shall be found in their homeland,” he added. He said the move shall reduce unemployment rate for local seafarers who are about 5,000 country wide, as they are now going to be attached to both foreign and local companies that are associated to the oil and gas exploration sector.

“In accordance with Tanzania shipping business laws, for a sailor to go to the sea he/she must have insurance. We therefore recommend the remarkable contribution by the finance ministry,” he said.

He added that the issue of employment is a major problem for sailors something which pushed them to have number of consultation meeting with different stakeholders including China embassy, Tanzania Ports Authority (TPA), TPDC and the Ministry of finance.

He said, the Chinese Embassy has agreed to cooperate with them in fishery, oil and gas as well as other related activities and they are ready to bring their gears to help revive the activities in the country.

For his part, the renowned maritime instructor Mr Charles Chagula, urged the sailors to work hard once being attached to the companies as a way to prove their capacity and morality.

“We have reached the ultimatum of what we have been fighting for the past three years, it is our turn now to work hard and ensure effective delivery of our profession to the public,” he said.

Oil production set to promote Tanzania

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Tanzania, with its oil seeps, seismic and other data shows strong hydrocarbon potential in its upstream oil industry sector. However, only 20 ‘wildcat’ exploration and eight development wells have been drilled so far in a 222,000 km2 area and therefore, the country could be classified as under-explored.

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

 It is therefore, telling that Dr David Mestres Ridge, the CEO of Swala Energy Tanzania noted in a key address to the company’s shareholders meeting held in Dar es Salaam recently that, “though Tanzania is currently poorly placed on the African and global map among the top oil and gas producers, the situation should change in a decade if the offshore gas is produced”.

The global oil production has tripled in 50 years with the biggest increase being in Europe and Eurasia and the Middle East. The bulk of oil production has been from the Middle East and the neighbouring countries, followed by North America and Europe and Eurasia (with most gas deposits and production being found in the Russian Federation).

The Middle East produces most oil but it’s third in gas production. Africa’s prospects, though comparatively mediocre in terms of oil/gas production, has been ably represented by Nigeria, Angola and Algeria but soon, as Dr Ridge noted, Tanzania might also stand out to be counted among the Africa’s greats in oil and gas production. Barely two decades ago, there was evidently little enthusiasm by oil exploration and production companies to venture into East Africa.

However, in recent years, there has been a new-found interest in the region’s oil sector-an interest that has sparked jostling for exploration ‘blocks’ by scores of potential investors in the industry. Among those investors is Swala Energy Tanzania, a locally-owned oil and gas company that has been listed on the Dar Es Salaam Stock Exchange (DSE). Swala’s current exploration blocks are in Pangani in the north-eastern coast of Tanzania and the Kilosa-Kilombero basin in Morogoro region, the latter of which the company will start drilling in 2016.

The attendant exploration activities have led to some new ‘finds’ within the region and has whetted further interest by oil companies to keep a keener eye in the region. Among the finds, Uganda leads the pack.

It recently discovered 4 billion barrels of oil, followed by Kenya with 600 million barrels, an admittedly sizable combined quantity in a region that had been neglected for a long time. Tanzania on the other hand, has held sway in gas production and boasts such vast deposits that, as Dr Ridge notes, “…if poured all over the country, they could cover the whole country to a height of 1.5 metres”!

Dr Ridge foresees a bright future for the oil sector in East Africa in general and in Tanzania in particular and the country could be a regional oil and gas powerhouse if the offshore gas is developed. The recurring unpredictably erratic oil prices have displayed a yellow light to the oil and gas companies, making the investment in the sector a potentially risk-prone undertaking.

The prices have been determined by overriding factors among which are: lower prices in North America due to abundance of shale gas, medium prices in Europe supplied mainly by gas from the Russian Federation and higher prices pushed by the Fukushima nuclear disaster in Japan a couple of years ago. The price slump climaxed between 2014 and 2015 with a drastic fall from over $120 per barrel to the current $ 50 per barrel.

“The implications of the collapse of the prices has meant less revenues from oil production and therefore, countries will have to tighten their belts while projects that were previously viable and competitive at lower prices will no longer be feasible,” says Dr Ridge. Though it might be cheaper to produce oil/gas in East Africa, Dr Ridge sees a major challenge in transportation to the market once the production starts.

This is because most of the closer markets are already being supplied by the existing producers for example Latin America is supplied by Bolivia, Nigeria supplies Europe, Brazil and Japan, Russia too send gas to Europe and it’s soon expanding to China and Japan. With the congested market, Dr Ridge sees East Africa’s option, as a late entrant to the fray, will have to send its commodity to Japan.

“It’s probably going to be cheaper to produce oil and gas in East Africa but its distance from the markets will mean more expensive transportation costs,” notes Dr Ridge and adds that besides the distance, there will still be competition particularly from Australia, Qatar and Russia.

Invest In Safety Now or Pay For Failure Later-Nebosh International Certificate in Operational Oil and Gas Safety

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The oil and gas industry is the most highly regulated industry in the world when it comes to safety. It is rare now for oil companies to operate for several month or year without a single recorded case.
Some oil companies have spent a lot of money as the consequence of neglecting or ignoring safety issues. If you want to have a better understanding on the importance of safety in oil and gas industry, check out the BP’s oil spills in 2010 in the Gulf of Mexico in the united state that resulted into environmental pollution that could end up cost BP billions of dollars to clean up.

Because well-established safety policies and procedures appeared to have been ignored or neglected which result into death of eleven people on the rig floor, the CEO of BP was forced to resign and reputation of BP as an IOC has been tarnished

In order to keep oil and gas workers safe from injury and reduce the loss of life NEBOSH international technical certificate in oil and gas operational safety are significant to employers and companies as whole.

Here there full details of the training
NEBOSH INTERNATIONAL CERTIFICATE IN OIL AND GAS OPERATIONAL SAFETY
I4th-19 March
Johannesburg, South Africa
The NEBOSH International Technical Certificate in Oil and Gas Operational Safety covers the principles of process safety management in the oil and gas industries, it provides an excellent foundation in health and safety allowing those within the oil and gas industries to manage oil and gas operational risks effectively.

Key topics to be highlighted;

Health, Safety and Environmental Management in context
Fire protection and emergency response.
Logistics and Transport Operations
Hydrocarbon process safety 1.
Hydrocarbon process safety 2
Become a NEBOSH Certified Professional
EARLY BIRD DISCOUNT OF 20% OPEN UPTO 10TH OF SEPTEMBER.

Who is the Course for
The NEBOSH International Technical Certificate in
Oil and Gas Operational Safety is suitable for managers,
Supervisors, safety staff, and safety representatives with safety
Responsibilities in the oil and gas industry, both within and
Outside the UK, and is designed to provide a sound breadth
Of underpinning knowledge that enables them to manage oil
And gas operational risks effectively. Delegates should already
Have an underpinning knowledge of health and safety issues
And may already have studied one of NEBOSH’s Certificate level
qualifications. It should be noted that currently the
examination is offered, and must be answered, in English
only. The standard of English required by candidates must
be such that they can both understand and articulate the
concepts contained in the syllabus.

Course Objectives
A safer workplace – The NEBOSH International
Technical Certificate in Oil and Gas Operational Safety is
all about keeping people safe from injury and loss of life.
For employers, this also means protecting valuable assets
and avoiding prosecution, litigation and loss of reputation.
Assurance – An employer whose workers are NEBOSH
qualified is an employer committed to health and safety. The
NEBOSH International Technical Certificate in Oil and Gas
Operational Safety can help employers achieve international
standards and can even help win new business.
Return on investment – An employee with a NEBOSH
International Technical Certificate in Oil and Gas Operational
Safety has practical knowledge that brings real value,
wherever they operate.
For those who would be interesting to participate do not hesitate

Julian Anzunzu
Senior Project Manager

Oil and Gas
Fleming Europe
Nairobi, Kenya
Morningside Office Park,

Ngong’ Road

T: +254 202 000 066
M: +254 724 846 848
E: julian.anzunzu@flemingeurope.com
W: http://www.flemingeurope.com

Or follow the following link below to download[gview file=”http://tanzaniapetroleum.com/wp-content/uploads/2015/11/BATD164.pdf”]

See Life Condition for offshore Oil Workers (Including Food, Accommodation, Working Hours, Fun and sports, Salaries)

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Would you like to know the life in oil and gas industry?

Are you very curious to know what oil and gas workers eat at their workplace, how they sleep, how long they work?

 it is  allowed for oil and gas employees to use the mobile phone at their working place?

You are about to learn excellent stuff
Articles examine the life condition  of   Oil and gas workers at their working places in offshore field.

From the time, they start to work, their food until they go to bed. Since the majority of Tanzania Natural gas discovered on the deep sea(Offshore) The article explains offshore lifestyle of oil and gas workers .

Okay let’s go
Food
Most of the oil and gas rig have restaurant –type where various kinds of food are offered to oil and gas workers.imgres

Food and fruits delivered to the rig by helicopter or supply boat. So breakfast covers porridge fruits and other foods.

You will never use your pocket money to buy food. All expenses of food are provided by the company. And the good news is that there is a team of the kitchen who prepares food.

Due to the nature of oil and gas jobs, employers are very careful to ensure that, oil and gas employee are getting well-balanced food so as they can do the job properly.

Also Read:3-surprising-benefits and-disadvantages-of-working-in-oil-and-gas-industry

Fun and hobbies
In the offshore platform, there are many places for entertainment, stuff like a pool table, for those who are often exercised there is a gym. Also rooms with TVs, DVDsimages

Working hours
Offshore oil and gas employees work in shift, usually day or night, shift takes 12 hours followed by 12 hours of rest

Salaries
Salaries for oil and gas workers differs from one person to another it depend on your role and company

Medical test
Medical care is the fundamental issue in the oil and gas companies, during an interview and before you go for working you should prepare for a medical test.

Accommodation

Accommodation in the offshore life vary from one company to another but most common accommodation is a single room with facilities like TV, toilet also is available that are shared by shifted staffs.Spaces are issued on offshore lifeimages

The use of mobile phone for offshore oil workers is prohibited for safety purpose,

Although public’ card phones and the massive production platforms have broadband internet access which means that you can send and receive e-mails, instant messages and even Skype.

Final words
Life condition on offshore platform is not easy, however, many oil companies make sure time you spent on platform is really enjoyable, For example, employees may find themselves live in places that meet 3  or 5-star hotels, despite the fact that you are in the middle of the ocean.