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TANZANIA: Pain and gain on the way for oil and gas at Mkuranga

IMG-20160113-WA00421Trends of Oil and Gas News:

On September 24, 2013: “Plot on locals’ stake in oil, gas thickens” The citizen Newspaper

On October 24, 2013: “Muhongo shatters oil dream for locals” The citizen Newspaper

On January 22, 2104: “No favours for locals in gas deals….” says JK (formal President)

But Today

14 January 2016: “Neither the company/ Government that are searching for Oil and Gas here have educate us about the effect of what their are doing………” Resident at Mkuranga

14 January 2016 ” We are scared even to ask about the effect of their activities ” Resident at Mkuranga

History in News

On 29 December 2015: “People of African descent will be among those most adversely affected by climate change, notes the UN Working Group of Experts on People of African Descent, in a statement calling for international climate change efforts to be more inclusive….”

30th November to 12th December 2015: “COP21 was held in france for African countries to negotiate with developing countries in climate change…….”

Fact about what people say at Mkuranga

and

Their Expectation

in

Oil and Gas in their Area.

then

We will compare the History of Developing Countries from the time when they discovered Oil and Gas….

and

How the citizen was Involved until Now

TMGO FORUM
we are the sponsor of Tomorrow

peter.stephen@aiesec.net

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An Open letter to Tanzanians struggling to get job into Oil and gas industry

An employee walks down stairs on the Armada gas condensate platform, operated by BG Group Plc, in the North Sea, off the coast of Aberdeen, U.K., on Thursday, Dec. 10, 2015. Royal Dutch Shell Plc got clearance from antitrust authorities in China for the takeover of BG Group Plc, removing the final regulatory hurdle for its biggest-ever deal. Photographer: Simon Dawson/Bloomberg via Getty Images

 

Have you ever  feel?

You write the great resume, You have great grades, You have practical experiences,

But that’s not all

You send resume to hundreds of oil companies, You ask referrals for friends and relatives

People tell you oil and gas industry is a highly paid sector. So You want to get job into oil and gas industry

But you’re simply not getting the response you deserve, Nobody calls for an interview, no one values your qualification and experiences. You feel your effort are not paying off

Very  , very  frustrating

You feel you’re wasted. The situation is even worse when you hear oil companies have pause hiring faces low crude price.

Don’t worry

Lots people face the same struggle. Is there any best way for recent environment to get into oil and gas industry?

Yeah: there is a way. And it comes down to this

Why the current situation of oil and gas jobs it’s terrible? It’s simple, the reason is cheap crude oil prices

Have you already hear about that? Right!

That means crude oil price below $ 50 per barrel. And for this reason, 2015 has been difficult year in the oil and gas industry

What oil and gas company have been doing since price falling in mid-2014? They just fire employees to cope with low oil prices

  • Oil layoff hits 200,000 in October 2015 and here are results of laid off workers in giants oil and gas companies
  • Schlumberger has fired more than 20,000 approximately 15% of its staff
  •   Halliburton has laid off 18,000 employee
  • Weatherford has laid off 14,000 workers
  • Baker Hughes – 13,000 employees has laid off
  • Royal dutch shell-70,000

Note, In the figure above including Tanzanian

 

Still there open door for you                                            

 Although oil companies have been slow down in hiring, the future oil and gas jobs market are interesting. Employees retired, others are terminated. Guess what will happen? New talents would be in dire demand to fill vacant positions. And the door will be open for you especially when crude prices goes up.

Where are oil and gas are currently booming (best way to get into the industry)
Can you manage to wait until the oil price pick up? In the situation you want living, you want to pay the bill, you want to go the beach with your loved one? Yes, you can’t

What if I told you some place currently oil and gas jobs are booming?

If you focus on the upstream segment (exploration and production sector) of the industry to look for jobs,

 Schlumberger would not listen to you, Halliburton would not listen to you, baker Hughes the same.

If oil and gas industries are your passion I recommend you to go in the downstream sector(refining sector) is where there are hope to find new jobs!

Downstream sector is currently booming benefit from access cheap oil.

Why is refining sector booming? It’s simple! Because that’s how works.

Downstream sector is dealing with selling of petroleum products like diesel, gasoline, lubricants etc. However, the current low crude prices do not hurt them as they generate windfall profit

Struggling to get the job into oil and gas industry?
Yes, You have no alternative but to go into refining sector. Because the sector has been booming and hope for a new position available.

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Tanzanian pipeline isn’t commercially viable, CEO Hill says

Export-route decision necessary to get industry off the ground Tanzanian pipeline isn't commercially viable, CEO Hill says

Export-route decision necessary to get industry off the ground
Tanzanian pipeline isn’t commercially viable, CEO Hill says

 

East Africa’s race to export its first oil will eventually be a tie between neighbors Kenya and Uganda because both need to share a pipeline rather than compete for different routes, a producer in the region said.

“The only sensible route for the pipeline is a joint pipeline” running through both countries, Africa Oil Corp. Chief Executive Officer Keith Hill said by phone from Calgary.

The company this week sold stakes in some East Africa assets to Maersk Oil & Gas A/S.

Agreement on an export route is necessary to get the countries’ oil industries off the ground: While crude was discovered in Uganda in 2006 and four years later in Kenya, both are still in the planning stage of commercial development.

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

One option is to send the oil through the Lokichar basin in northern Kenya. Another is to run a line via southern Kenya and the capital, Nairobi. A third is to pipe the oil through Tanzania.

“I don’t believe the Tanzanian pipeline is commercially viable,” Hill said on Monday, without elaborating.

Uganda, which last month signed a memorandum of understanding with Tanzania and oil producer Total SA to study a possible pipeline through the coastal nation, has repeatedly said the eventual shipment route must be the cheapest to develop. Kenya has estimated the cost of the proposed northern line at about 400 billion shillings ($3.9 billion).

Joint Ventures

A pipeline to the Indian Ocean would allow Africa Oil, together with larger partner Tullow Oil Plc, to start exports from joint ventures. Tullow has found oil in both countries, with Uganda estimating finds at 6.5 billion barrels and Kenya at 600 million barrels.

Maersk Oil said Monday it will acquire half of Africa Oil’s shares in three onshore exploration licenses in Kenya and two in Ethiopia for as much as $845 million.

The deal shows companies are willing to invest in East African discoveries even before a pipeline route is decided. It drove Tullow shares up 4.5 percent.

Oil-industry development has slowed in East Africa over the past year as slumping energy prices forced companies to cut costs and trim budgets. Brent crude has tumbled more than 40 percent to about $47 a barrel in the past 12 months amid a global supply glut.

“People have finally decided the oil price has hit bottom and we will see more deals being done in the next three to six months as people start to feel a little bit more stability,” Hill said. “There is no way on earth we can satisfy world demand below $75 a barrel long-term.”

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Uk, German To Prepare Local People for Jobs in East Africa Oil and Gas Sector

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Nairobi — THE United Kingdom and German have designed an initiative aimed equipping local populations with skills needed to seize job opportunities in the oil and gas sector in East Africa and Mozambique.

The initiative by the UK’s Department for International Development (DFID-Kenya) and the German Ministry for Economic Cooperation and Development (BMZ), dubbed Skills for Oil and Gas Africa (SOGA) will focus on Kenya, Uganda Tanzania and Mozambique.

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

The five year project (2015-2019) implemented by GIZ and co-funded by UK aid (£25 million) is expected to help 32 000 local people to get sustainable jobs in the sector over the period.

Hendrik Linneweber – GIZ Country Director for Kenya said the recent oil and gas discoveries in Kenya and Eastern African countries offered an unprecedented opportunity for economic growth and development.

“In the next two years, the oil and gas Industry will have a huge demand of technical skills and there is an urgent need to qualify and prepare these people for future jobs,” Linneweber.

Head of DFID Kenya, Lisa Phillips, said the UK, through DFID, was committed to ensuring efforts to promote economic development in East Africa wer sustainable and long-lasting.

“SOGA will assist the private sector and partner governments in preparing their workforce for upcoming opportunities and will ensure that any jobs which are created by the Oil & Gas Industry are open and accessible to local people,” she said.

An inception phase of the programme was conducted between January and September 2015 in the four countries with the aim of identifying common areas for partnership and collaboration with the private sector and government which would be integrated in the implementation of the programme and national system.

The will work closely with the private sector and government to deliver support to training institutions, establishing business enterprise development centres and assist local people to win contracts to supply goods and services to the oil and gas industry.

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3 Suprising Advantages and Disadvantages of Working in Oil and Gas Industry

Image result for PETROLEUM INDUSTRY IMAGES WORKERS

 

 

Do you really  know working into  oil and gas industry can benefit you than you think?
Do you think there are some disadvantages of working in oil and gas industry?

You are about to learn  excellent  stuff

The articles intend to clarify advantages and disadvantages of working in oil and gas industry:

Lets meet them

                                                       Advantages
   

1:Trip opportunities
If travelling different countries is your dream, oil and gas industry is a perfect career for you.

As the oil exploration and production projects of oil and gas are carried worldwide, oil and gas workers must travel from one project location to another.

As I am writing this article, some of the Tanzanians are in the United Arab Emirates working with oil and gas companies:

Furthermore, Some of these oil and gas activities are conducted on land  and others on deep water you  should get outfitted to work on deep-sea as well

2:Great Salary
I know this is the point of interest for most of you.The fact is that oil and gas industry is the highly paid industry.

If you want to understand the great wealth in oil and gas industry, check out the lifestyle of oil and gas workers in petroleum companies, not to talk with investors themselves.

Technical staff like drilling engineers, field engineers, pipeline operators, geoscientists  petroleum engineers and other technical personnel  are in demand and hence their salaries are very higher.

The most amazing thing in this industry is as the oil prices raise the salaries of employees also rise, which is quite different in other companies or industries.

3:Entertaining and intelligent work
If you are very interesting in brainstorming  and you like to think for yourself and get things done, consider oil and gas industry:

Can you think how hard in controlling the huge pipeline system that passes from Mtwara to Dar es salaam?

Have you ever asked yourself the trouble in seismic interpretation and get the result that decides where to drill the first well?

                                                              Disadvantages

1:Stress and disappointment
Some oil and gas jobs can lead to stressing, you might work even night shift because drilling activities should run 24 hours, working long hours in a harsh environment and staying away from your family and loves one, is a great challenge.

Additionally pipeline operators might experience bad time since pipeline can easily leak, and if that pipeline crosses below nearby the cities, the  native remain at risk,

This is the reason pipeline operators and other oil and gas workers must be trained for safety issues in order to protect environments and their lives as a whole.
2:Health problems
Oil and gas workers  do at very risky, for instance, those who work in refineries for a long time can be induced by harmful chemicals. Also working on the land and deep seas(offshore) is very dangerous

Bonus:  if you want to have great understanding on how is threatening us to work into oil and gas industry, consider BP’s  oil

spills 2010 in the Gulf of Mexico in the united state which result in the death of 11 people in the rig floor and result of Chief executive officer of  BP, Mr     Tony Hyward  was forced to resign

Final Words
To consider a career in the industry you don’t know is wasting of time, before you join in the oil and gas industry you must have a clear picture of difficulties and benefits of the petroleum industry.

Good Luck

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Orca Exploration announces closing of US$60 million financing of Tanzania natural gas field development with International Finance Corporation

Image result for petroleum industry images

Orca Exploration Group Inc. (“Orca” or the “Company”) announces that it has entered into a loan agreement with International Finance Corporation (“IFC”), a member of the World Bank Group, for a US$60 million investment (the “Loan”) in the Company’s operating subsidiary, PanAfrican Energy Tanzania Limited (“PAET”).

Proceeds of the Loan will be used to fund part of an estimated US$120 million first phase of a Songo Songo Main Field development programme (the “Off-Shore Programme”) currently being undertaken using the Paragon M826 drilling rig (commenced in September 2015). The Off-Shore Programme is designed to (i) put safe existing suspended and operating production wells; (ii) restore and increase the current productive capacity of the Songo Songo Main Field to ensure the continued delivery of Protected and Additional gas into the existing Songas infrastructure; and (iii) provide additional operational redundancy and deliverability for future additional gas sales, by way of the workover and recompletion, abandonment or sidetrack drilling of three existing offshore wells, and/or the drilling of additional production gas wells at locations to be determined in the region of the existing offshore wells depending  on the outcome of the workovers. Since programme commencement, previously suspended production wells SS-5 and SS-9 have been successfully worked over and recompleted, and have been restored to full productive capacity estimated to be approximately 35 MMscfd per well.

The Off-Shore Programme is intended to restore and expand field productive capacity from approximately 83 million standard cubic feet per day (“MMscfd”) prior to the programme to approximately 190 MMscfd on completion of the programme. When completed, the field is expected to be capable of both filling the existing Songas infrastructure to capacity of approximately 102 MMscfd, as well as providing additional gas volumes to the newly commissioned National Natural Gas Infrastructure Project (“NNGIP”) as and when contracted.

The term of the Loan is 10-years, with no repayment of principal for the first seven years, followed by a three-year amortization period.  The Loan is an unsecured subordinated obligation of PAET and is guaranteed by Orca to a maximum of US$30 million.  The guarantee may only be called upon by IFC at maturity in 2025 and, subject to (among others) IFC approval, Orca may issue shares in fulfillment of all or part of the guarantee obligation in 2025, subject to receipt of all required regulatory approvals.

Base interest on the Loan is payable quarterly at 10% per annum on a ‘pay-if-you-can-basis’ using a formula to calculate the net cash available for such payments as at any given interest payment date.  In addition, an annual variable participatory interest equating to 7% of the cash flow of PAET net of capital expenditures is payable in respect of any given year, commencing with 2016.  Such participatory interest survives the repayment and/or maturity of the Loan until 15 October 2026.  It is also detachable from the Loan and accordingly can be transferred independently.  Dividends and distributions from PAET to Orca are restricted during the term of the Off-Shore Programme and at any time that any amounts of unpaid interest, principal or participating interest are outstanding.

The Loan is available subject to the fulfilment of certain conditions, which include attending to the registration of the Loan with the Bank of Tanzania and W. David Lyons entering into arrangements, satisfactory to IFC, whereby he will commit (directly or indirectly) not to reduce his beneficial ownership in Orca in a way that would result in him having less than 51% of the voting rights therein.

“The conclusion of the IFC financing is a significant achievement for Orca and an important endorsement of the Company’s continuing commitment to Tanzania,” commented W. David Lyons, Orca Chairman and Chief Executive Officer. “It allows us to raise finance and manage risk in the face of a challenging business environment, and to undertake urgently needed development of the Songo Songo field. It further safeguards Songo Songo’s future as an important part of Tanzania’s energy security.  The World Bank was instrumental in bringing the Songo Songo gas-to-electricity project to reality some 20 years ago and Orca is pleased to continue this long-term relationship, now directly with IFC, in support of the sustainable development of Tanzania’s energy resources.”

“The Songo Songo field is Tanzania’s most important source of proven natural gas production, and is the largest supplier of energy to the Dar es Salaam region” said Lance Crist, IFC Global Head of Natural Resources. “Through this investment, IFC is working to help to alleviate electricity shortages in Tanzania, which are an impediment to the country’s continued economic growth and development.”

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, IFC uses its capital, expertise, and influence to create opportunity where it’s needed most. In FY15, IFC’s long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

About Orca Exploration Group Inc.

Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its wholly-owned subsidiary PanAfrican Energy Tanzania Limited, as well as oil and gas appraisal in Italy. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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More Local Talents are Needed in Natural gas Industry

investors

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.

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Uganda’s Change of Mind On Oil Pipeline and the headache it is giving Kenya

The idea is for this pipeline to become the export conduit for Uganda’s oil once drilling starts.

Trouble is, Kenya had earlier signed an MoU with the same Uganda to build a pipeline to route their oil through northern Kenya to Lamu.

The new tango with Tanzania comes as bad news for the $29 billion Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor.

The prime mover in the change of plan from Lamu to Tanga reportedly is the French oil giant Total.

Its beef with the Kenyan route is about “insecurity” along the so-called northern corridor, where banditry and cattle raiding among the Turkana, Pokot and Samburu is a way of life.

In Total Oil’s assessment, the Tanzania option means lower unit transportation costs.

Originally, the hinterland Lapsset had in mind at conception was South Sudan and Ethiopia.

Read:Tanzania signs oil pipeline  Mou with uganda

NEIGHBOURHOOD GOLIATH

That was well before oil was discovered in northern Kenya, and before Uganda was officially brought on board.

Aside from the question of when Kenya will be ready to drill, the projected volumes will not offset those from the Ugandan oilfields.

Sure, South Sudan has plenty of oil, and a pipeline through northern Kenya was primarily for this reason.

But there are good grounds to question the reliability of this country for Lapsset, at least in the short term.

Instability and civil war have become the norm there.

The existing pipeline through Sudan to the Red Sea, and even the oilfields themselves, have had to remain shut for long periods.

The more serious concern, though, should be Ethiopia.

Lapsset without it is like New York City without Wall Street.

Ethiopia is the neighbourhood Goliath – the most populous country in our region (90 million people), with the second biggest economy (after Kenya’s), and the fastest growing.

But it has the misfortune of being landlocked since it separated with Eritrea in 1993.

Presently, it relies on Djibouti port for its exports and imports.

Lapsset’s biggest desire is to lure this traffic through Lamu, hence the fast-tracking of the tarmacking of the Isiolo-Moyale highway as a first step.

However, by the time Lapsset is up and running, it may find the situation has greatly changed.

Read:Tanzania-and-uganda-agree-to-build-crude-oil-pipeline/

HUGE DEVELOPMENTS

Currently the Addis Ababa-Djibouti rail link (which Ethiopia co-owns) is being upgraded.

The existing metre-gauge railway will be replaced by a spanking $3 billion electrified SGR being built by (who else?) the Chinese. It could be operational as early as next year.

It is unlikely Ethiopia will want to shift its business south to Kenya after undertaking all this capital investment.

Of course, Djibouti will do anything to ensure the booming commerce from Ethiopia does not go away.

It is working as hard as anybody to modernise and upgrade its port, among other initiatives.

The little Muslim country is careful to also let its big and powerful neighbour into certain delicate arrangements.

It so happens that Djibouti hosts two big French and American military bases.

Since its society won’t allow its women to fraternise with the foreign soldiers, it discreetly lets in scores of Ethiopian girls to come over and do their thing.

Not to be left out, Tanzania is building its own huge $11 billion port at Bagamoyo.

Funded by China and Oman, it aims to eclipse Mombasa as the premier port in East Africa.

Yet in this rush for mega projects, we could be creating too much overcapacity that may condemn these projects to white elephants.

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What Does Natural gas discovery in Tanzania mean for  Local Entrepreneurs

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With this massive discovery of natural gas in Tanzania which is nearly 55.5 trillion cubic feet,  international companies and foreign  investors across the world are swarming in Tanzania to invest in natural gas sector.

What does it mean to Tanzania entrepreneurs?

 The logic here is very simple: there is unlimited opportunities in natural gas industry to create huge wealth, and that’s why many investors are attracted to it:

But the sad reality is that, most of local  entrepreneurs  are still place limit to themselves  with  excuses like “I m not good enough in oil and gas stuff” some of us we believe oil and gas business is only for “BIG BOYS”  with  big financial muscles

Discovery of natural gas in Tanzania means opportunities to Local entrepreneurs to creates financial freedom. This discovery of natural gas should inspire the creativity of locals entrepreneurs.

With this growth of Tanzania economy by 6.5 percent in the first quarter of 2015 means demand of energy is going to increase,which increases the investment opportunities in Tanzania.

If you are very interesting in oil and gas business and you don’t know where to begin here 6 oil and gas business opportunity in Tanzania.  You can start with

Good Luck:

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