Tag Archive for: petroleum services in tanzania

Tanzania:Mnazi Bay Operational Update – First Payment Received

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

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

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

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

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

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

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

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

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

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

More Local Talents are Needed in Natural gas Industry

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Apart from infrastructure, the greatest obstacles in oil and   natural gas industry in Tanzania is scarcity of skilled labors at local level.

Although effort has been done to train local people inside and outside of the country, but the number of trained people  do  not meet the demand to serves the industry.

The shortage of locals people with knowledge and experience relevant  to oil and gas disciplines in  oil companies, consulting firms and tax authorities, will causes most of oil and gas projects in Tanzania to take longer than average. Also we will remain dependant from  foreign companies in terms of  technical expertise.

The local participation in the oil and natural gas sector in Tanzania is necessarily important as the key to succeed in this industry.

Having large number of skilled workers in the oil and natural gas sector will minimize cost that recently stay in the hands of foreigners and investors, as well as removing barriers in developing newly discovered gas resources.

Kenya hosts regional Oil and Gas Summit

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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

5 Ways To Get Job You Want In Oil and Gas Industry

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Looking for job in oil and natural gas industry in Tanzania? Are you college student and you would like to bank six figure starting salaries? You are about to learn  some really great stuffs.

The article explains some great ways to join petroleum companies,for those  looking career or continue careers in oil and natural gas industry.

Petroleum industry has its own hiring methods and the methods we are going to discuss here, are the one applied by many Tanzanians who are currently enjoying career in petroleum companies.

If it work for them, it must work for you as well

Lets  face them:

1:University career fairs: Oil and natural gas companies have been recruiting  students from local universities for years.

Career fairs is the excellent opportunity for you , because attending these events enabling you to meet recruiters and employers of the oil companies who needs your skills.

During career fair you would be doing  a series of interviews, when you win competition  , you will receive job offer from particular oil companies

For instance, students from University of Dar es salaam,(UDSM) and Dar es salaam Institute of technology(DIT) have got job offer prior to their graduation date.

As I am writing this articles some of them are enjoying career with Schlumberger, Halliburton, Pan-African energy. To see example of Tanzania who join oil company through this method, click here: maintenance engineer in charge and maintenance supervisor at  Schlumberger  Innocent Anthony.

2.Company websites:

Most oil and gas company they often post open positions  on their website before posting elsewhere.

By free registration and creating account, on their website you will able  to see all posted jobs, and you can apply directly through these sites,

To apply for these jobs you don’t need to be an Internet expert,because they provide further details about the application process,

After applying, when you meet their qualifications  required for particular jobs they will contact you through phone but in most cases through your email address.

The best news is that we have some of Tanzanians currently working with petroleum companies thanks to company website method. Example of oil and company website you can apply now: http://www.bakerhughes.com/careers and http://careers.slb.com

3.Job Portals or jobs sites: Is among of the popular methods to get jobs in oil and natural gas companies. I have already explain about it in my previous articles, if you miss it, you should read here:see important job sites-for petroleum jobs.

4:Network, Network, Network: Instead of posting jobs on jobs board which might cost company in terms of time and money, many employers  use current employee inside the company to look for ideal candidates to fill open positions.

As you look for career in natural and gas industry your job is to wide your network by asking friends and family about others who are currently working with oil and natural gas industry and network with.

The more people you know in oil and gas industry  the more you increase your chance to get jobs in oil and gas companies

5:Social Media:  Social media is  a nice platform to meet with people regarding to your interest.If oil and gas is your passion, the social media I recommend you to use is LinkedIn. It will expose  you to the world of recruiters and other peers.Don’t be shy to ask people for information or advice on LinkedIn about oil and gas matters. Because linked in is designed for business purpose.

My Final Words

If you will take actions,these methods  are starting point of getting  jobs in oil and gas industry not only in short time but for  the rest of your career.

Tanzania signs oil pipeline MoU with Uganda

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KAMPALA, Uganda – Governments of Tanzania, Uganda,  French firm, Total E&P (Uganda) and the Tanzania Petroleum Development Corporation (TPDC) have signed  a Memorandum of Understanding for a crude oil export pipeline framework writes SAM OKWAKOL.

“If we can be able to get a least cost pipeline route to the East African coast, our crude oil will be exported cheaply,’’ Dr Fred Kabagambe-Kaliisa, the Permanent Secretary of Uganda’s Ministry of Energy and Mineral Development, said last week.

According to a Ministry statement, the MoU creates a working framework for the potential development of a crude export pipeline from Hoima to Tanga Port in Tanzania.

The objective is to select a route that will result in the lowest unit transportation cost that constitutes the most viable option for the crude export pipeline.

The MOU also provides for other participants to join in the process of assessing and developing this option.

Ngosi Mwihava, the acting Permanent Secretary in Tanzania’s Ministry of Energy and Minerals said: “This infrastructure will stand the test of time in our regional cooperation. Tanzania is carrying out exploration work along the proposed route where any potential discovery will further enhance the economics of the project.”

Also Read:Tanzania and Uganda agree to build crude oil pipeline

He said: “The due diligence is a valid exercise, because you have to justify the route you are going to consider to justify the least cost option.”

Dr Kabagambe-Kaliisa, said the MoU also enables the signatories to continue working together to fine tune studies and field work on the Tanga route.

This is in order to further appraise the merits of a crude export pipeline option through Tanzania with a view to achieving the lowest unit transportation cost for crude oil from Uganda.

Adewale Fayemi, the General Manager Total E & P (Uganda), described the MoU as a key milestone of achieving the least cost option to transport Uganda’s crude oil to the Indian Ocean. “We look forward to fine tune the process.”

He sadi Total E&P is committed to supporting the route and collaborating with all the partners involved.

James Mataragio, the TPDC Managing Director said: “This a great project, which if executed, it will create opportunities for the people of Tanzania

“This project is going to open new investment opportunities, and create jobs for citizens of both countries. We have that experience required to build and manage pipelines. I want to assure Ugandans that they have got all the support from TPDC and Government of United Republic of Tanzania,” Mataragio said.

The Uganda government has signed MoUs with oil companies licensed in the country for the commercialization of the oil and gas resources.

It was agreed that the crude oil discovered in Uganda is commercialized through crude to power, refining and export of crude oil.

In this regard efforts to establish a least cost pipeline route to the East African coast are being undertaken in partnership with industry and the respective Partner States where the crude export pipeline is likely to pass.

Uganda is currently undertaking a process to identify and assess the comparative merits of three pipeline routing options, two via Kenya to Mombasa and Lamu, and one via Tanzania to Tanga, in respect of the export of crude oil from Uganda to the international market. The objective is to select a route that will result in the lowest unit transportation cost and constitutes the most viable option for the pipeline project.

credit:busiweek

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

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Recent oil and gas discoveries across East Africa, most notably in Mozambique and Tanzania, have seen the region emerge as a new player in the global oil and gas industry. As exciting as the huge gas fields of East Africa are, however, the strong decline in oil prices and expectations for an L-shaped recovery with low prices over the coming years are increasingly challenging the economic viability of the industry in this region.

The discoveries were expected to drive billions of dollars in annual investment to the region over the next decade. According to BMI estimates, the finds in the last few years are more than that of any other region in the world, and the discoveries are expected to continue for the next few years.  However, falling global oil prices are threatening the commercial viability of many of these gas prospects.

The Indian Ocean, off the coast of Mozambique and Tanzania, is proving to be a rich hunting ground for natural gas exploration. According to US Geological Survey estimates, the combined gas reserves of Mozambique and Tanzania could be as high as 250 trillion cubic feet. In Mozambique alone, proven gas reserves have increased dramatically from a mere 4.6 trillion cubic feet in 2013 to 98.8 trillion cubic feet as of mid-2015. Given continued offshore discoveries and the size of discoveries to date, continued growth in proven gas reserves is likely to continue into the foreseeable future.

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

As liquefied natural gas (“LNG”) contracts remain heavily indexed to oil, the fall in global oil prices poses significant downside risk to gas production projects. Persistent oversupply in the oil market continues to put downward pressure on oil prices. This trend of lower prices is unlikely to reverse in the near future with futures prices estimating the average Brent crude oil price to range between USD50-65/bbl over the next five years. Industry research estimates that an oil price of USD70-80/bbl would be needed for the LNG gas projects just to break even.

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Sustained lower oil prices are likely to take a heavy toll on the development of upstream gas production and downstream refining projects in the region, as pricing uncertainties affect the commercial viability of LNG projects, delaying investment in the region. This will likely see companies hold off on Final Investment Decisions (“FID”) as they attempt to overhaul projects to cut costs and wait for more certainty on the direction of prices.

In Mozambique, for example, both Eni and Andarko have yet to reach a FID on their respective LNG projects. The lower price environment will likely force these companies to secure more off-take agreements before reaching FID. Furthermore, it is unclear whether these projects would be economically viable at current pricing levels, and given expectations for a slow recovery in oil prices over the coming years, we could see further uncertainty and delays in reaching FID.

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

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

Downstream refining projects are also in jeopardy. According to a Sasol report, Sasol, Eni and ENH have announced a partnership to look into a feasibility study for a large-scale gas-to-liquids (GTL) facility in Mozambique. However, key to the progression of a GTL project in Mozambique will be the cost of the gas feedstock and the long-term outlook for oil prices. Central to GTL economics is the price spread between natural gas and oil.

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

Kenya has a billion barrels of oil that might not be going anywhere

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imagesFidgety oil companies and investors heaved a sigh of relief in August when Kenya and Uganda announced they had picked a route for the world’s longest heated pipeline. Finally, there was a plan for getting the estimated 1 billion barrels in Kenya’s remote northwest out of the country.

The proposed route cut from northern Uganda’s Albertine region, into Kenya, through the Lokichar Basin, and then southeast before terminating in Kenya’s coastal Lamu County. It would have allowed Kenya to share the cost of piping oil with Uganda, which has 6.5 billion barrels of its own oil that it wants to get to market.
 But this week Uganda turned around and announced it had instead signed an agreement with Tanzania and Total (which is exploring in Uganda) to consider a pipeline for Ugandan oil through Tanzania, bypassing Kenya altogether.
Proposed oil pipelines in East Africa.(World Bank, “Leveraging Oil and Gas Industry for the Development of a Competitive Private Sector in Uganda”)

If that plan goes ahead, Kenya’s oil companies—Tullow Oil and its local partner, Africa Oil—would have to foot the bill for the 1,500-kilometer (930-mile) Kenya pipeline, estimated at $4.5 billion, alone. The high price is because the waxy nature of the region’s oil requires that the pipeline be heated, basically to prevent it from becoming a giant candle. With low oil prices as low as they are, it seems more likely that the project will be put on ice.

Uganda’s change of mood threatens more than just the Kenya pipeline. It calls into question the entire $20 billion LAPSSET (Lamu Port South Sudan Ethiopia Transport) Corridor. This an ambitious Kenyan project that includes not only the oil pipeline, but also a road network across the north of the country and a coal-fired power plant.

When LAPSSET was conceived, the idea was to also pump oil out of South Sudan, Kenya’s neighbor to the northwest, thus spreading the costs further. But with South Sudan now embroiled in war, if Uganda steps out of the picture there’ll be less need for the pipeline—and little financial interest or support for the rest of LAPSSET.

You can be sure that Tullow and Africa Oil will scramble to make Uganda believe the Kenya pipeline is the better option. If it were only about costs, they might still have a shot. But Total’s CEO, Patrick Pouyanne, said on Oct. 16 that the company’s chief concern is security.

The planned route is not far from Kenya’s border with Somalia, and Kenya doesn’t have a fantastic track record of protecting its territory from al-Shabaab incursions. Lamu County has suffered a series of attacks by al-Shabaab since Kenya joined the battle against the Islamist militia in Somalia; it also borders Garissa County, where al-Shabaab killed 148 people, mostly students, at a university in April.

Swala Energy:Receipt of Funds From Tata Farm Out for the Licences in Tanzania

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Swala Energy Limited   confirms that US$5.7 million has been received from Tata Petrodyne Limited (“TPL”) pursuant to the farm-out transaction with TPL for the Kilosa-Kilombero and Pangani licences in Tanzania.

 

You can also Read:Swala energy complete farm out of Tanzanias kilosa kilombero and pangani licences interest-to-tpl