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Solo Oil has agreed to farmout a 12.5% net working interest in the Ruvuma Petroleum Sharing Agreement in Tanzania to Aminex. In what is a back-to back agreement, Bowleven will join the Ruvuma PSA joint venture with a 50% net working interest.

Solo will receive from Aminex a total consideration, in the form of a carried work program contribution and production bonus payments, of USD3.625m.

Note :PSA  stands for Production sharing Agreement

Also Read:4 Tips for Local organizations to sell products and services to the oil and gas companies

you may also like to read:7 effective way to make money in Tanzania oil and natural gas industry

Also read:Natural gas does more than producing electricity and cook food

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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.

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Swala Energy has announced that its subsidiary Swala Oil and Gas (Tanzania) Plc and Tata Petrodyne Limited (TPL) have finalised the outstanding terms of their farmout agreement for the Kilosa-Kilombero and Pangani licences in Tanzania.

Following by the finalization the parties shall now proceed to payment of the reimbursable past costs of US$5.7 million, due within five working days from Completion, and to the transfer of licence working interest to TPL.

Upon completion of the transaction, the equity in the licences shall be:

Swala Tanzania

According to Swala CEO Dr. David Mestres Ridgethis development allows Swala Energy to now focus on preparations for the 2016 drilling campaign

swala Tanzania seismic map“We are grateful to the Tanzanian authorities and regulators for their assistance and prompt handling of the approval process for our farm-in application, which allows TPL to join us on the two Tanzanian licences. Knowing that reimbursement of the past costs incurred by the Company is being made and having an international exploration company such as TPL as a participant in an exciting location in the East Africa Rift system allows us to now focus on preparations for the 2016 drilling campaign,” Dr. David Mestres Ridge, Swala CEO, said.

Swala Energy Limited has received a no objection notice from the Tanzanian Ministry of Energy and Mines to the farm-out of 50% of its interests in the Kilosa-Kilombero and Pangani licences to Tata Petrodyne Limited (TPL).

Currently the Australian explorer is serving a one year extension on each of its licenses by the Tanzanian Ministry of Energy and Mining (MEM) within which an exploration well must be drilled in each of the Kilosa Kilombero and Pangani licences in Tanzania to the 20th February 2017.

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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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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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Lets me telling  you one thing my friend, petroleum industries is very complex industry, it has up and  down, it has a lot of challenges, before you decide to look for job in this industry or starting your own business you must be aware of those challenges that face industry in order to know how you can handle them.

Both services companies and operators have been laid off their workers in order to cope with low level price due to falling of oil prices.

Layoffs increase day after day, up to this time worldwide  nearly  179,000 oil and gas workers have lost their jobs in response to low oil prices this is according to findings  conducted by energy recruiter swift worldwide resources.

You can also read: bad-and-good-news-to-all-graduates-who are currently looking for jobs in petroleum companies

On top of thousands of layoff already announced this year the layoff   are still increasing and bad news is that oil companies still cut up jobs. For example   Halliburton,  one of the largest service provider have slashed 14,000 jobs  and also company plan to cut more jobs including  management position in North America where the crude slump has been particularly brutal.

MY FINAL WORDS

Since  Low oil prices are harsh realities that can not be avoided as the nature of business also layoff is inevitable in oil companies in this period of low crude prices

 

 

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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

 

 

 

 

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THE low price of oil has dashed initial high hopes for oil and gas investment in Africa, but governments have the opportunity to turn things around.

The discovery of oil off the coast of Ghana in 2007 — and subsequent hydrocarbon finds in Uganda, Kenya, Tanzania and Mozambique — sparked an exuberant international response, with oil and gas investors and companies initially flocking to what many saw as a new frontier for the industry.

The excitement was understandable. The oil and gas finds in Mozambique had the potential to increase its gross domestic product GDP) fivefold by 2040. Ghana’s economy was also being transformed. Prices were booming and the “Africa Rising” narrative was taking hold across the world, with rising consumption and improved political stability changing investor perceptions.

Eight years on, with the oil price halved to below $50 a barrel, the enthusiasm of those early days looks a little euphoric. While there have been significant successes in oil and gas exploration in Africa, the overall pace of oil and gas investment still lags behind other destinations.

The cost of infrastructure and evolving local regulation often makes for a more uncertain investment in Africa, compared with other markets that have been operating for decades.

Rules requiring the inclusion of local companies and workers in oil and gas supply chains are positive for long-term economic development, but mean more upfront investment in the transfer of knowledge and skills.

Meanwhile, Africa’s above-ground risks, such as political complexity, insecurity, fiscal instability and regulatory changes are often higher than those found in markets with established oil and gas sectors.

Taxation and regulatory frameworks take time to establish in new oil markets and can potentially be seen as a risk by investors. When the oil price is high and capital abundant, investors are able to balance these risks with the potential returns.

However, at lower oil prices, investors look for lower-risk oil and gas markets – another factor counting against Africa.

Currently, we are seeing evidence of investment flows in oil and gas being pulled back towards North America as the competition for capital within the sector becomes more acute.

Meanwhile, as investors chase safe returns, Africa’s oil and gas sector increasingly has to compete for investment dollars with other sectors of the economy, such as the fast growing consumer market or technology sector. As a result, the oil and gas sector lacks capital at a time when, ironically, investment capital has never been so available.

The current low oil price is an opportunity for Africa to review the relationship between host governments and oil and gas investors and for African governments to do all they can to make the investment opportunities as investor-friendly as possible.

When prices were at $100 a barrel, some governments (particularly those new to oil), ran the risk of being lulled into a false sense of empowerment. They assumed they had the upper hand in negotiating inward investment.

Today, however, with lower oil prices and with competitive investment alternatives available in Africa and beyond, we are seeing an increased level of pragmatism on the part of some governments and policy makers. Public sector leaders and influencers are beginning to understand the importance for projects to go ahead, and go ahead as soon as possible.

Experience is everything. Having seen both the peaks and troughs of oil prices, African governments are more likely to introduce investment-friendly policies, regulations and incentives, which could boost the growth potential of the oil and gas sector.

Through my various conversations with governments across Africa, I am encouraged by a growing understanding of the need to create a more collaborative and investment-friendly environment.

This is the fourth oil price slump I have witnessed in my career. The timing of the recovery is unclear, but when it does happen and the dust settles, the winners will be those countries that were able to attract investment dollars despite the downturn. The losers will be inflexible countries that stick to the old rules of the $100 a barrel world.

Africa can use this time to secure itself a position among the winners by creating a robust investment environment and thus avoid the feast and famine scenario that all too often accompanies oil price cycles.

Tims is MD of Standard Chartered Bank’s oil and gas industry team

 

oil-pumpjack-oil-gas-industry-dusk-alberta-canada-59316275

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

 

 

bdsouthsudanoil1Oil companies in Uganda are in discussions with Tanzania for an alternative pipeline route through Tanga despite a recent agreement between Presidents Yoweri Museveni and Uhuru Kenyatta.

Whereas President Museveni of Uganda and his Kenyan counterpart President Kenyatta sealed a deal that if implemented with see Ugandan oil exported through Kenyan port of Lamu, oil companies believe the Tanga route is cost effective.

The EastAfrican has learnt that besides security concerns, the companies are also uncomfortable with the cost of the Lamu route, arguing that the southern route through Tanzania would be cheaper and offer better commercial terms to the users.

“We are evaluating all viable options and the Tanzania route is one of them,” Total’s corporate affairs manager Ahlem Friga-Noy told The EastAfrican.

Total’s senior vice president for Eastern Africa, Javier Rielo  on August 22 met with Tanzania’s President Jakaya Kikwete and discussed the possibility of building a crude oil pipeline from Hoima to Tanga.

President Kikwete supported the proposal as it fits within Tanzania’s ongoing preparatory works to upgrade Tanga port’s capacity to off load petroleum products.

Total E&P, Tullow Oil and China National Offshore Oil Company are equal partners in Uganda’s upstream sector, where 6.5 billion barrels of oil, 1.4 billion of them recoverable, have so far been confirmed.

Sources in the Ugandan government revealed that the Tanga route is also being considered even though the state has no hand in the ongoing discussions led by the oil companies.

A senior Ugandan official said while the country had in principle agreed to the Lamu route as reflected in the MoU that Kenya and Uganda signed during President Kenyatta’s recent visit to the country, the concerns Uganda raised such as the cost and security, mean that the Tanga route could still be explored.

The official added that Uganda would soon commission a feasibility study for the Tanga route, but this would be strictly for benchmarking purposes against alternative routes to the north and determining comparative costs for them.

In the MoU that the two presidents signed affirming the Hoima-Lokichar-Lamu route, it was conditional that Uganda get a low tariff pipeline. Other conditions included Kenya guaranteeing security on its side of the pipeline, quick implementation of the project and mobilisation of the finances, which would be a joint effort.

Although one Ugandan official describes President Museveni’s conditions as just being “precautionary,” the security provision is being seen by the oil companies as likely to push the tariff beyond what alternative routes would offer.

However, Earnest Rubondo, director at Uganda’s Petroleum Exploration and Production Department (PEPD), said all the three possible routes — Lamu, Mombasa and Tanga — are still on the table until conclusive studies are completed.

Last month, the Japanese company Toyota Tsusho, handed to the government a study showing that the Hoima-Lokichar-Lamu routing for the pipeline was more feasible than the alternative — Hoima-Nairobi-Mombasa route.