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This follows the success of last year’s event which saw over 2,300 participants from 380 companies gain invaluable insight into the projects and latest opportunities in the region.

EAOGS is endorsed by the Ministry of Energy and Petroleum, Kenya and attracts a senior level audience of international and regional companies, ministries, NOCs, IOCS, service companies, leading consulting and contracting companies, financial and legal institutions and government authorities.
Read:Time is now to invest in-oil and-gas sector

Following the success of licensing rounds, the advancement of the crucial port and refinery developments and all the pipeline issues; there is a lot to look forward to throughout the region and EAOGS will present major projects from key countries including; Ethiopia, Kenya, Mozambique, South Sudan, Tanzania and Uganda.

The Conference Programme for EAOGS 2016 is currently in development by expert steering committee of industry and government experts and will once again provide a cutting edge agenda covering all of the key issues and success stories.

Alongside the Conference EAOGS 2016 will be increasing its exhibition space to allow for even more companies to demonstrate their products and services to thousands of decision makers from across the industry

Kenya could have opportunities for small foreign oil companies

Wildcat explorers have turned to east Africa as one of the last frontiers for oil and gas.
 The Mombasa refinery always runs below capacity

Wildcat explorers have turned to east Africa as one of the last frontiers for oil and gas.

In the region, Tanzania and Mozambique have found large quantities of gas and Uganda has established substantial oil reserves. Kenya is now getting into the act – and exports could flow soon.

Kenya is the youngest among East Africa’s nascent resource prospects, but one of the most promising. Tullow Oil (LON: TLW), with sometimes partner Africa Oil (TSX: AOI), has been the most successful wildcatter so far.

Tullow made its first discovery in Kenya in mid-2012. This came after a long time of disappointing exploration activities. And it became commercially viable after it was confirmed that there were around 300mln barrels worth of reserves.

Tullow-led joint ventures subsequently made a further six discoveries and as of January 2014, Tullow said Kenya’s Northern Basin could have an excess of 1 billion barrels of oil.

Drillers estimate the Rift Valley, which runs through Kenya from north to south, could yield 10bn barrels of oil and explorers are accelerating activities.

A connected Kenya-Uganda pipeline could pipe 500,000 barrels of oil per day (bopd).

Tullow has said Kenya could envisage exporting oil as early as 2016 and ramp up quickly to 100,000 bopd.

Kenya’s oil hunting grounds are parcelled out in more than 50 blocks over three main areas – offshore; along the coast reaching north towards Somalia; and in the north-western Turkana area.

Besides Tullow operators include Anadarko Petroleum (NYSE:APC), BG Group (LON:BG. and Statoil (OSX: STL) . A number of smaller groups are also involved in Kenya. They include Ophir (LON:OPHR), Simba Energy (TSXV:SMB),Bowleven (LON:BLVN) and the delisted Afren.

With all this hydrocarbon activity and its buzzing ports like Mombasa, trading with the Middle East and Far East, Kenya’s consumer-driven economy has become buoyant. GDP growth this year is expected to be 5.7%.

But buoyancy can have its side-effects. In some ways Kenya has become what you might call a bottleneck economy.

The refinery in Mombasa is a case in point. Kenya has one of the largest crude oil refineries in East Africa, a 90,000-barrels-per-day (bbl/d) facility in the country’s second city. This imports and processes Murban heavy crude from Abu Dhabi and other heavy Middle-Eastern crude grades.

Most of the imported and/or domestically refined products are sold in Kenya’s major cities and the remainder is sent to neighbouring countries via trucks.

But the refinery typically operates below capacity and needs investment to realise its full potential. Part of this investment needs to be spent on de-clogging the roads.

The thousands of lorries which snarl the traffic badly effect the efficiency of the refinery. But the situation should be alleviated when the Chinese sponsored railway from Nairobi to Mombasa is completed.

 Another bottleneck is the shortage of power. Kenya is in the middle of a programme to expand from 1,664 MegaWatts (MW) available in 2013 to 5,500 MW by 2017. This is to meet growing electricity demand. These projects do not come cheap. The power expansion plan is costed at US$1.83bn.

Kenya is tapping foreign investors through a hard currency sovereign bond as well as dipping into the pot of aid from multilateral donors like the World Bank and individual countries like the US (the US agreed to give Kenya US$1bn following the visit of President Barack Obama earlier this year.)

Kenya might also take a leaf out of its southern neighbour Tanzania’s book.

Like Kenya, Tanzania is an emerging economy that is actually emerging with economic growth rates that have been running at 7% a year. There is a huge demand for energy. Estimated 2016 demand from existing and new power plants is around 120mln standard cubic feet of gas a day (mmscfd). Gas demand is expected to grow to 475mmscfd by 2018.

Helping to fill this growth in demand are three small UK based oil and gas companies Aminex (LON:AEX), Solo Oil(LON:SOLO) and Wentworth Resources (LON: WRL), which are signing long-term gas sales agreements (GSAs) with the Tanzanian authorities to transport from newly built pipelines to the capital Dar es Salaam.

In the case of the Aminex/Solo grouping the deal is to move 20mmcsfd from its Kiliwani North field south of Dar es Salaam. Wentworth has separate arrangements.

Kenya is different to Tanzania in that it derives most of its energy for power stations from hydro-electric and geothermal plants. Its gas resources are not as developed as Tanzania

But that could to start to change sooner rather than later; and change in a way that could benefit small foreign groups operating in Kenya.

Back in 2010, Afren agreed to buy Canada’s Black Marlin for US$101mln (£69m) in a deal that would have given the West Africa-focused oil explorer a significant foothold in the east of the continent and greatly increase its resource base.

Then listed on the Toronto Venture Exchange, Black Marlin operated in Kenya, Ethiopia, the Seychelles and Madagascar, with 1.2bn barrels of oil equivalent (boe) in net resources. The preponderance of these resources are thought to be in Kenya.

Afren is now in administration and is forced to dispose of former Black Marlin assets (imminently it is thought) in what can only be called a fire sale.

Any deal for the Kenya assets is subject to government approval, but the price would almost certainly be lower thanAfren paid.

A small foreign company with the wherewithal to bring the Black Marlin assets on-stream could then possibly do a deal with the Tanzania operators and help bridge Kenya’s power gap.

This is conjecture at this stage. Nothing is written in stone in these matters. But it is an interesting idea.  

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

Let us begin

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

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

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

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

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

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

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

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

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

MY FINAL WORDS

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

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Abu dhabi: Sharjah-based Gulf Petrochem will invest about $80 million (Dh290.4 million) in the next one year as part of its expansion plans in Fujairah and East Africa, a top company executive told Gulf News.

“We are planning to spend about $25 to 30 million in acquiring new terminals in East Africa and about $50 million in adding new tankage in Fujairah,” said Thangapandian Srinivasalu, Executive Director of Gulf Petrochem.

The construction work in Fujairah will start next year and the project is expected to be completed by March 2017.

“We are going to add around 260,000 cubes in Fujairah. These tanks will not only cater to trading activity but will also support the refining activity which we are planning. “

On expansion plans in Africa, he said the firm is looking at acquiring terminals in Dar es Salaam in Tanzania and in Mombasa in Kenya.

“The next decade belongs to Africa and there are tremendous business opportunities in East Africa, which is politically stable and secure. There is steady growth of 5 to 7 per cent in Tanzania, Kenya and Uganda.”

Started in 1998 with the commissioning of a refinery in Sharjah’s Hamriya Free Zone, Gulf Petrochem is a conglomerate worth $2.5 billion with business operations in oil trading and bunkering, refining, storage terminals, bitumen manufacturing, lubricants, shipping and logistics.

“We have been growing at a decent pace. Our plans and expectations are to keep up with this pace. In the last one year we have gone full length [in terms of] barrel trading. We have expanded our operations in coal and pet coke.”

According to him, their focus of growth will be the UAE, India and East Africa.

“Today majority of our revenues are coming from this geography and our investments are more here. We are planning to acquire lubricant companies and bitumen plants in India as we seek to expand in the Indian market.”

You can also read :citizens of tanzania support extracting and selling of natural gas internationally

The company is in the process of commissioning Hamriya terminal in Sharjah.

It is a state of the art modern terminal which can handle full range of products, both classified and non classified, Thangapandian said.

On falling oil prices and how it is impacting their business, he said it has been good for the company.

“Except E&P companies everyone will be happy with low crude oil prices including consumers, marketers and traders. Thanks to the surplus of product and contango in the market, the storage tanks are full.”

Speaking about the trade relations between India and the UAE following the visit of Indian Prime Minister Narendra Modi, he said they had been positive.

“[The] UAE wanted a signal from the Indian government that you are more than welcome and we are going to give you the full support. That signal has been given.”

He said the UAE is looking for places where there is safety and an opportunity to grow.

“Today there are very few economies in the world where you can put the money, expect it to be safe and keep growing. India is a positive market and close to the UAE geographically.”

Gulf Petrochem is investing in India as part of its expansion plans. It recently acquired Sah Petroleum Limited, a listed lubricant company and commissioned Pipavav storage terminal in Gujarat. It is planning to acquire lubricant companies and bitumen plants in future.

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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

 

 

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This article is very essentials for those who are already petroleum engineers and they need to updates their skills or those who they would like to be petroleum engineers.

 

Petroleum engineers apply technical skills and knowledge to solve engineering challenges. They work in subsurface   engineering   activities relating to the production of hydrocarbon which can be crude oil   or natural gas. In another way they get petroleum out of   the   ground and to the refinery.

 

Petroleum engineering specialize in three major types of engineering, which includes

  • Drilling engineers
  • Production engineers
  • Reservoir engineers

 

   Drilling engineers

They specialize in drilling, completion and work over operation. Drilling engineer drill deep to the subsurface  to find hydrocarbon deposit. Completion means to prepare well with steel pipe to cement pipe in place and to perforate pipe in the oil  zones  so that oil can flow to the surface.

 

 

 

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         perforated pipe

Note: Workover   means whenever well is visited for any type of maintenance it is called workover

 

Production engineers

They specialize in studying well characteristics, understanding well characteristics help them maintain oil flow over the period of time.  They  use various chemical and mechanical procedure to maximize oil recovery from the well.

 

Reservoir engineers

They design and implement  plant development of an oil field. They identify the size of oil field by  measuring its boundary and depth.They use data of all instrument to determine all phases of drilling program, they calculate oil reserves which is the amount of oil still in the reservoir.

Read see-where-does-petroleum-come-from

All petroleum engineering work with  sophisticated instrument and computer program, also use advance mathematics and physics to deal complex matter and to better understand and interpret oil field, this help them to keep oil flowing. Petroleum engineers are needed throughout the world to maintain existing field and to develop new oil field

FINAL WORD

Whether on land or offshore, Petroleum engineers are the movers  of oil and gas

Roles of Petroleum Engineers do In Petroleum Industry

This article is very essentials for those who are already petroleum engineers and they need to updates their skills or those who they would like to be.

 

Petroleum engineers apply technical skills and knowledge to solve engineering challenges. They work in subsurface   engineering   activities relating to the production of hydrocarbon which can be crude oil   or natural gas. In another way they get petroleum out of   the   ground and to the refinery.

 

Petroleum engineering specialize in three major types of engineering, which includes

  • Drilling engineers
  • Production engineers
  • Reservoir engineers

 

   Drilling engineers

They specialize in drilling, completion and work over operation. Drilling engineer drill deep to the subsurface  to find hydrocarbon deposit. Completion means to prepare well with steel pipe to cement pipe in place and to perforate pipe in the oil  zones  so that oil can flow to the surface.

 

Note: Workover   means whenever well is visited for any type of maintenance it is called workover

 

Production engineers

They specialize in studying well characteristics, understanding well characteristics help them maintain oil flow over the period of time.  They  use various chemical and mechanical procedure to maximize oil recovery from the well.

 

Reservoir engineers

They design and implement  plant development of an oil field. They identify the size of oil field by  measuring its boundary and depth.They use data of all instrument to determine all phases of drilling program, they calculate oil reserves which is the amount of oil still in the reservoir.

All petroleum engineering work with  sophisticated instrument and computer program, also use advance mathematics and physics to deal complex matter and to better understand and interpret oil field, this help them to keep oil flowing. Petroleum engineers are needed throughout the world to maintain existing field and to develop new oil field.

FINAL WORD

Whether on land or offshore, Petroleum engineers are the movers  of oil and gas.

 

 

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

 

 

 

 

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

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

 

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

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

 

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

 

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

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

 

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