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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.

EA-PIPE

East African governments are dithering on funding the planned oil refinery in Hoima, Uganda, leaving the future of the multibillion-dollar project in doubt.

However, the Ugandan government says it is ready to go ahead with implementation of the project without the participation of the other East African Community member states.

Energy Minister Irene Muloni said the government is finalising discussions with the lead consortium and the contract is likely to be signed before the end of this month, paving the way for the construction. She said Uganda would take up all the shares not taken up by Tanzania, Rwanda, Burundi and Kenya.

The five EAC member states were allocated a combined 40 per cent shareholding in the facility — translating into a eight per cent stake for each — with the remainder of the shares reserved for private investors.

The deadline for confirmation of shareholding had been set for last November in order to allow Uganda to start negotiating with other strategic investors.

Kenya took up a 2.5 per cent stake worth $13 million last year, although the money is yet to be paid. Treasury Cabinet Secretary Henry Rotich however said the country will not take up more.

“Why should we take more shares in the refinery?” Mr Rotich asked. “They have not even started the construction. We have other strategic interests.”

Meanwhile, Tanzania, Rwanda and Burundi are yet to commit themselves to the $4.3 billion facility. But now, Uganda, which initiated the project, has said it is ready to bear the burden of building the refinery on its own.

“The stakes that will not be taken up by the member states will be taken up by the government of Uganda,” said Ms Muloni.

Peter Kinuthia, the EAC’s senior energy officer, said the way forward is for Uganda to continue negotiating with private investors knowing that the EAC member states have a 40 per cent stake.

“If other member states don’t come in, Uganda will have to carry the burden itself,” he said.

The window for the EAC member states to participate in the project is swiftly closing with the proposed refinery expected to come on steam by 2018. The refinery, which is expected to process an estimated 60,000 barrels of oil per day, will initially output half of that capacity in 2018.

At a meeting of the EAC Sectoral Council on Energy last year, Tanzania and Burundi requested Uganda for more details about the project before making a decision. But although the Ugandan government furnished the two countries with the commercial reports on the feasibility of the project, they are yet to make a decision.

Not confirmed shareholding

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UKTI Tanzania’s revised report provides an overview of Tanzania’s oil and gas sector including supply chain opportunities from the proposed LNG project.

UK Trade and Investment (UKTI) Tanzania has updated their 2014 report which examines the opportunities in the Tanzanian market. The report called ‘High Value Opportunity – Tanzania Oil and Gas’ offers a greater understanding and in-depth knowledge of:

– current and upcoming oil and gas projects
– supply chain opportunities and schedules for the proposed Liquified Natural Gas (LNG) project

Tanzania is a growing oil and gas market with on-going discoveries, including 19 exploration blocks. USD 10 to 20 billion investment is projected for exploration and production in the coming decade.

Exploration activities in Tanzania’s deep offshore waters have led to the discovery of 50.5 trillion cubic feet (tcf) of natural gas over the past 2 years. More discoveries are likely to come as drilling campaigns continue to unfold. It is estimated that the recoverable reserves will double to 100 tcf by the year 2015.

Tanzania forms part of UKTI’s East Africa High Value Opportunity (HVO.)

Contents of report

– background
– oil and gas overview of Tanzania
– opportunities in Tanzania’s LNG project
– doing business in Tanzania

Contacts
Contact Misbah Mughal at UKTI Tanzania to obtain a copy of the report.
Find out more about export help for the UK oil and gas sector.

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Oil and gas exploration companies operating in the country pay foreign private security companies US$3 million (about over 6bn/-) annually, which the Controller and Auditor General (CAG) says was improper.
 
CAG Prof Mussa Assad said the money could be put into proper use if it was paid to Tanzania People’s Defense Forces (TPDF). 
 
The national army, he said last week in Dar es Salaam, was mandated to deal with all the security of the country, including oil and gas drilling rigs. 
 
According to him, that made it relevant for TPDF to qualify for the security consultancy fees currently paid to foreign firms, he explained.
 
Prof Assad said the move would also help support the local content policy for the oil and gas industry which is currently dominated by foreign operators.
 
He gave this outlook last week at the launch of Tanzania Oil and Gas Almanac. He said the involvement of TPDF would as well help save foreign exchange, which is currently repatriated by the security firms.
 
“I am sure that if the US$3 million could be paid to the army, it will be well spent to improve security of our natural resources,” Prof Assad argued. 
 
He pointed out that before the discovery of oil and gas, Tanzania already had gold and diamond, whose mining continues to be undertaken by foreigners. Unfortunately, he argued, the country was yet to meaningfully benefit from the two minerals.
 
He said good governance was vital for these resources to benefit the whole country. He added that the launch of the almanac, which constitutes transparency tools, sought to boost transparency in the extractive industry.
 
Tanzania is poised to become as gas economy after discovery of more than 55 trillion cubic feet of natural gas.

 

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Jay Bhattacherjee, chief executive of Aminex (LON:AEX), says the Tanzania Petroleum Development Corporation’s (TPDC) backing of the Kiliwani North as a great sign of support for the project.

Speaking to Proactive, Bhattacherjee adds that TPDC’s decisions to take a 5% working interest in the project provides some assurance that a gas sales agreement will soon be reached and production will get underway.

Participants in the KNDL are currently: Ndovu Resources Ltd (Aminex) 58.5% (operator), RAK Gas LLC 25%, Solo Oil 6.5% and Bounty Oil & Gas NL 10%.

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A new poll from across the country shows that citizens oppose using gas as collateral for government borrowing. Released in Dar es salaam recently the study dubbed, ‘How Tanzania should use its natural gas citizens’ views from a nationwide deliberative poll’ shows more citizens support extracting and selling the country’s natural gas internationally to raise revenue, rather than directly financing domestic electricity generation.

It shows that Tanzanians nominally support ‘strict limits’ on spending gas revenue and oppose using gas as collateral for government borrowing. The study, done by Research for Poverty Alleviation (REPOA) and Center for global Development between 2014 and July 2015, also shows that most Tanzanians support both publishing all gas contracts and a role for international oversight of how the government uses gas revenues.

Most respondents also supported the idea of direct distribution of resource revenues to households in principle.But when offered a choice between cash transfers and government programmes, most Tanzanians prefer that gas revenue be spent on government programmes rather than cash transfers, according to the report. REPOA’s Executive Director Prof Chacha Wangwe said some 2,000 people from 20 districts were interviewed, including ordinary and policy makers and the findings highlighted that majority don’t want the government to borrow ahead of time.

“They want transparency. They want monies from oil and gas to largely go to education and health,”he said A stakeholder at the report’s launch, prof Ibrahim Lipumba said that the findings show that the ordinary people have an understanding of what the resource should do for the country, especially where they highlighted an importance for transparency.

New natural resource discoveries, oil and gas provides substantial opportunity to fast-track human development progress, with updated estimates indicating that revenues to be developed could contribute between 9 per cent and 31 per cent of additional government revenues.

The tools and evidence presented are intended to empower the government with newly discovered extractives resources, by helping it to grapple with the complex chain of policy decisions that will be key to transforming new resources into stronger human development outcomes – ranging from public sector spending allocations to leveraging industry spending. Such findings are timely since President Jakaya Kikwete recently took major step towards ensuring fiscal and economic stability by signing legislation that will help ensure revenue from natural gas discoveries bring socioeconomic progress for citizens.

These recent gas discoveries have the potential to bring in as much as 1.4 billion Dollars per year to Tanzania — more than 10 per cent of current government revenues–within the next decade.

The new revenues could help provide basic needs for citizens such as improved primary healthcare and access to quality education. The next step for the government will be to develop detailed regulations and procedures to implement the new laws.

The new administration will face policy decisions on how to manage and allocate resources in a responsible way and in accordance with the laws. Maintaining a focus on human development goals, transparency and ensuring public awareness and debate with key stakeholders and citizens will be crucial.

 
 
 

A new study by the African Development Bank and the Bill & Melinda Gates Foundation shows that despite recent drops in commodity prices, revenues from recently discovered oil, gas, and mineral reserves in countries such as Ghana, Liberia, Mozambique, Sierra Leone, Tanzania, and Uganda could add between 9 per cent and 31 per cent to those governments’ revenues. The report, which was launched in Dar es Salaam in early September.

Provides updated projections on the timing and magnitude of these natural resource revenues and guidance on how to effectively direct them toward strengthening health, education, and other social services. Supporting long-term economic growth. In Ghana, for example an estimated one-third of the country’s combined health and education needs over the next decade could be funded from recent oil discoveries.

In Liberia, Mozambique, and Sierra Leone, revenues from recent natural resource discoveries could meet half of health funding needs. The potential opportunities in Tanzania and Uganda are also significant. In this context, African leaders have a valuable opportunity to work with the private sector and civil society to develop long-term plans that link new natural resource revenues with human development goals.

Such plans should be anchored in realistic expectations about the timing and magnitude of new revenues and avoid borrowing against future earnings–a tactic that could easily backfire due to the volatility of oil and gas prices.

At the same time, African countries need to devote resources to prepare for the global transition from fossil fuels to fight climate change. This process is of particular urgency for Sub-Saharan Africa, a region that combines large reserves of oil and gas with a high risk of suffering from large-scale disruptions in temperature and rainfall. The release of the AfDB- Gates Foundation report and the signing of the new legislation in Tanzania have come at a pivotal moment.

 

In September, global leaders from nearly 200 countries will meet at the United Nations in New York to adopt the UN Sustainable Development Goals (SDGs). A central issue for this 15- year global anti-poverty and development agenda is how African countries will help provide the financing needed to meet the basic needs of their people. New natural resource revenues could be a meaningful source of this funding–if they are effectively and responsibly managed.

History is replete with examples of countries that have squandered their natural resource wealth through mismanagement of revenues, inability to harness privatesector investment, and other grave missteps, including human rights violations and environmental degradation.

But some countries–such as Indonesia (with oil) and Chile and Botswana (with mining)–have successfully applied these revenues to stimulate job creation, economic diversification, and expand social services. When policymakers, donors, technical partners, and private companies work together to develop the necessary policies and support smart planning and rigorous management, entire nations can benefit from expanded opportunity and growth.

Tanzania has achieved a commendable milestone but there is more to be done. Through good management principles, we hope that the new legislation will turn into a legacy of good natural resource management that can be followed by other African countries in the months and years to come.

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You Know most of Tanzania citizens believe that, commercial production of  liquefied of natural gas has already started in Tanzania and they think  government  and investors (operators)  gaining revenues from it.

Findings from  Twaweza  organization has  shown that 53 percents of citizens of Tanzania  believe  that , gas is already flowing and government generate money from it. This is absolutely wrong.  And to day   i will  give you some useful information and clear up this misconception.

you may also read:see-why-discovery-of-natural-gas-in Tanzania could not bring too many jobs to Tanzanians as they believe

 

The gas which has been discovered in coast of Tanzania has never yet started to flow , there is  possibility of  2025  for the gas to start to flow. The government will begin to gain revenues after the gas has started  flowing  in  commercial basis in 2025. Currently, SongoSongo gas field, is the only commercial field that produce gas, and this  gas is sold by songas limited which used to provide  portion of  Tanzanias’electricity.

MY FINAL WORDS

Is the time now, to set up a special program that  would  aim at managing  citizen expectation  on natural gas and provide to them  right information regarding  to oil and gas industry,other wise  things would be worse.

Dear readers we would love  to hear  all of these from you

 

wentworth-logo Wentworth Resources which is an independent energy company with gas reserves and exploration potential in the Rovuma Basin of southern Tanzania and northern Mozambique has announced that Managing Director, Mr. Geoff Bury, will present a corporate overview at the FirstEnergy Global Energy Conference being held on Monday 21st and Tuesday 22nd  September 2015.   The conference is being held at the Intercontinental London Park Lane, Hamilton Place, London W1J 7QY.

The presentation is available by visiting the Company’s website at www.wentworthresources.com.

 

 

bdsouthsudanoil1Kenya and Uganda have rejected a push by Total France to have a proposed crude oil pipeline, being developed by the two countries, pass through Tanzania.

Total has been on a publicity offensive to have the route changed — from Hoima in Uganda via northern Kenya to Lamu on the Indian Ocean — in favour of another from Hoima via central Tanzania to the port of Tanga on the Indian Ocean.

Industry sources said Total accuses its partner in the Uganda oilfield, Tullow, of having vested interests in the pipeline passing through northern Kenya, where the UK company has prospects of pumping oil.

“The oil companies can have their concerns on the Northern Corridor and agree to develop an alternative route for the pipeline just the same way the two governments had their concerns on the southern routes and agreed on the low-cost, low-tariff route, which is the northern one,” said Bashir Hangi, communications officer at the Petroleum Exploration and Production Department of Uganda’s Ministry of Energy.

Technocrats from the two countries held a meeting in Nairobi last week to plan the construction of the pipeline, agreement of which was one of the key outcomes of a meeting between Kenya’s President Uhuru Kenyatta and Uganda’s President Yoweri Museveni last month.

The two presidents directed government officials to fast-track arrangements towards construction of the pipeline.

“Uganda is already engaged in serious discussions with Kenya on the way forward, especially on the conditions given to develop the pipeline,” said Mr Hangi, adding that no oil company had approached Uganda with a proposal for the the southern route.

Media reports had said that oil companies were in discussions with both the Ugandan and Tanzanian governments to have the route diverted to Tanzania.

Total’s corporate affairs manager Ahlem Friga, however, said the company was still evaluating all options — Tanzania being one of them.

Daniel Kiptoo, a legal advisor on petroleum matters at Kenya’s Ministry of Energy and Petroleum, said the two governments could not change the route when discussions had advanced so far.

Two studies — one by Kenya, Uganda and Rwanda and another by the oil companies — were conducted to evaluate which route was the most viable, before the governments opted for the northern Kenya route.

“The findings of the study showed that the northern route was more cost-effective in terms of time and distance than the southern route,” said Mr Kiptoo.

The study estimated that the Northern Corridor route will cost the two governments a total of $4.7 billion while the Southern Corridor route would cost a total of $5.26 billion. In terms of the distance, the 1,500km northern route is shorter than the southern route, which is 1,544km.

It is estimated that oil companies will pay $15.2 per barrel to move the commodity through the 1,500km northern pipeline and $15.6 per barrel on the southern route.

 

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Since the oil price started falling in June 2014, the jobs in oil &gas companies keep falling, oil price crash has led to the many layoff from both operating and service companies many petroleum professionals have lost their jobs while fresh graduates are finding the way to get jobs in petroleum industry. This become difcult task for fresh graduates to get jobs due to the stiff competition in the industry.

Why there is stiff  job competitions in petroleum companies and how it  will affect many recent graduates.
There is stiff competition because the number of people who are seeking jobs in petroleum companies increases due to the current massive layoffs that left many petroleum professionals unemployed. So the demand for job is very high because those petroleum professionals who lost their jobs want to back again in petroleum companies and recent graduates also wish to begin their career in petroleum companies. This led to stiff competitions and it will afects many graduates

How low oil price would  affects many recent graduates as  they looking for  jobs in petroleum companies

  • Experience and training
    Due to this low level of crude prices companies are finding ways to ensure that they minimize costs and making profit, So to hire graduates it cost them in terms of money and time, due to the fact that it require long time to train fresh graduates in order to do the assigned jobs effectively, Therefore applicants with experiences and training are more preferred due the values they add in the companies

when you compare with fresh graduates. So oil companies will kills graduate job in order to cope with this low level crude price.

  • Less Salary
    Even if the oil companies will open fresh graduate jobs in this period of oil price downturn, the companies will chose few best candidates with less salary compared on what they were did before oil price crash. So many graduates will compete over the few jobs.
    Final words
    Possibilities of securing jobs for recent graduates is very lower due to this low crude prices, however if petroleum industry is your passion, you will fight and win the battle