Tag Archive for: tanzania petroleum companies

Solo Oil has Welcomed the decision of Tpdc to back Into Kiliwani North

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Solo Oil has welcomed the decision of the Tanzania Petroleum Development Corporation to back into the Kiliwani North Development Licence for a 5% working interest as a fully paying partner.

The assignment of the interest to TPDC will be subject to it paying the existing joint venture partnership the 5% pro-rata share of the development capital spent to date and to complying with the existing joint operating agreement.

Once the back-in is concluded Solo’s interest in the KNDL will be 6.175% (current interest 6.5%).

Solo chairman Neil Ritson said: “Solo is delighted that TPDC have chosen to exercise their back-in rights which will further increase their alignment with the partnership developing Kiliwani North.

“We continue to anticipate reaching final agreement on the gas sales agreement shortly and gas sales revenues commencing soon after.”

You can also read:Solo oil ranks Tanzania assets highest

The KNDL contains the Kiliwani North 1 well, which the company expects to produce at up to approximately 30 million feet per day of gas (gross). Once producing this will represent a major milestone for Solo, providing the company’s first revenues from its investments in Tanzania.

A gas sales agreement, with appropriate payment guarantee provisions, is pending signature and once signed will allow gas to flow from the KNDL to the newly constructed Songo Songo Island gas processing facilities and into the national pipeline to customers in Dar es Salaam.

Solo holds an option to increase its interest in the KNDL by 6.5% to a total of 13% once the gas sales agreement is signed for a further payment of $3.5 million to Aminex. This option will also be subject to TPDC back-in once concluded. Solo would then hold a 12.35% working interest in the licence.

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

Top share picks for Q4

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With the third quarter of 2015 being the worst three-month period for global stockmarkets in four years, investors will hope the first day of October rings in a more profitable fourth. Just to make sure, one broker has been tinkering with its portfolio, bringing in some interesting growth plays and ditching one of Britain’s best-known blue chips.

Despite outperforming the market by 9.2% in the quarter to September, Panmure Gordon admits that the performance of its ‘Conviction List’ portfolio is “hardly a great result” against a market that fell 9.1%. As investors processed the impact of the slowing Chinese economy, the MSCI Global Index fell 11.2% in the period. Analyst Jeremy Grime also points to “a couple of true mistakes” in the commodities sector.

However, it wasn’t all doom and gloom, with some relief found in the Federal Reserve leaving interest rates unchanged – Panmure expects a December hike – and solid growth in the UK, US and Eurozone setting the world economy up for nearly 3% growth this year. And although the portfolio didn’t break any trends in the last quarter, it has outperformed the Datastream UK market index by 114% since 2010, with a capital return of 147%.

With potential upside of nearly 20%, it’s little wonder the analysts have added Berkshire-based software technology company Micro Focus (MCRO) to their fourth quarter Conviction List at 1,200p. Panmure reckons the group, which is a member of Interactive Investor’s Summer Portfolio, could be worth 1,438p if it implements greater divisional transparency and its Amsterdam conference in October goes well.

In 2014, total revenue nearly doubled to $834.5 million at constant currency, and, although adjusted cash profit beat expectations with an 86% leap to $357.6 million, pre-tax profit fell 38% to $91.4 million due to the purchase of US software rival The Attachmate Group. “The current ratings are a c33% discount to the sector, and do not give the company any credit for its continued strong operational performance, nor cash returns – we expect those next year,” says Panmure. Buy.

Explorer with 60% upside

Joining Micro Focus in the portfolio is pub chain Greene King (GNK) and Tanzania-based oil and gas explorerWentworth Resources (WRL). With a target price of 50p, the analysts reckon Wentworth has over 60% upside. Valuing Greene King at 1,015p, the pub chain’s shares could be worth an extra 30%.

Panmure’s portfolio doesn’t just contain long positions. Betting on the likelihood that the following shares could plummet, it has added engineer Rolls-Royce (RR.) and booze chain Majestic Wine (MJW) to its short holdings. At 651p, Panmure reckons Rolls is worth 16% less at 520p, while the wine merchant is overvalued by about 14%.

Just four days into his tenure as boss of Rolls, Warren East issued his first profits warning at the iconic engineer. We warned recently that things could be about to get a lot worse as trading conditions continue to deteriorate and commodities continue to suffer, especially after the further sharp depreciation of emerging market currencies. Clearly, Panmure has the same thinking.

The broker ejects more companies than it lets in this quarter, with the low oil price blamed for two exits –Anglo American (AAL) and Faroe Petroleum (FPM). With global turmoil and cheap oil wiping the shares out, Anglo has crashed by 39% and Faroe by a quarter. “We got it wrong,” confesses the analyst.

Also leaving its long-holding portfolio are travel agent Thomas Cook (TCG), hi-fi manufacturer Focusrite (TUNE) and recruiter Robert Walters (RWA), all of which are “stale”. After Thomas Cook failed to deliver the upgrades investors were pining for, a sell-off leaves the stock trading 15% lower in the three months to June 2015. With no earnings upgrades, Focusrite’s shares have drifted down 6% and Robert Walters has struggled against a declining market and the shares are flat.

Closing its short position on Fenner (FENR) and Morgan Advanced (MGAM) after a fall of 20% and 12.4% respectively, the broker wants to crystallise its profits as the shares near their target price.

With 17 stocks now in its portfolio, Panmure has long positions on Allergy Therapeutics (AGY) (Buy, TP 47p),Chemring (CHG) (Buy, TP 294p), GLI Finance (GLIF) (Buy, TP 71p), Greene King (GNK) (Buy, TP 1,015p),Hammerson (HMSO) (Buy, TP 825p), Hansard Global (HSD) (Buy, TP 120p), Imperial Tobacco (IMT) (Buy, TP 3,730p), Informa (INF) (Buy, TP 650p), Micro Focus (Buy, TP 1,438p), RPC Group (RPC) (Buy, TP 828p),Ryanair (RYA) (Buy, TP€16.5), Shaftesbury (SHB) (Buy, TP 1,106p) and Wentworth Resources (Buy, TP 48p), with short positions on Majestic Wine (Sell, TP 320p) and Rolls-Royce (Sell, TP 520p).

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

License Round Announcements and Updates At The 22nd Africa Oil Week 2015, Cape Town

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CAPE TOWN, SOUTH AFRICA, October 1, 2015 EINPresswire.com/ — Global Pacific & Partners will host the 22nd Africa Oil Week/Africa Upstream Conference 2015, in JV partnership with ITE Group plc, 26th– 30th October, in Cape Town, South Africa.

This meeting commands unique global reputation as the most important in or on Africa, with 120+ Speakers, 150 + Exhibitors, 40+ Governments – and with over 30+ African National Oil Companies, plus official licensing agencies, and over 1,000+ key senior oil and gas industry executives and state oil officials from across or involved in Africa, currently confirmed to attend.

The Africa Oil Week is trusted worldwide as the only global venue for “one-stop” Licensing Round Announcements, Government Roadshows, and Corporate Showcase – along with rich-content and quality senior executive attendees providing direct opportunity for acreage and asset transactions, deal-making, networking, corporate partnership, new venture initiation, and high-level government relations.

Congo License Round 2016: HE Jean-Marc Thystere Tchicaya, Ministre des Hydrocarbures de la République du Congo supported by PGS, will make a keynote presentation and open the 2016 Licence Round and will host the Congo Roadshow during the Africa Oil Week with Ministerial, DGH and SNPC Delegations in attendance, and supported by PGS.

Gabon License Round Announcement: HE Etienne Dieudonne Ngoubou, Minister of Petroleum and Hydrocarbons, Gabon will be announcing the Gabon Deepwater License Round 2016. The Minister will be at the 22nd Africa Oil Week, with the Government Delegation in attendance, supported by CGG.

Ghana: The Petroleum Commission, Ghana joins as a Sponsor of the 22nd Africa Oil Week 2015. Theo Ahwireng, Chief Executive Officer, Petroleum Commission, Ghana will be present with a Ghanian delegation and the Commission will exhibit.

INP: Carlos Zacarais, Chairman, Instituto Nacional do Petroleo (INP), Mocambique, is confirmed to present at the 22nd Africa Oil Week, with an INP delegation present and also participating in the exhibition.

Kenya: The Ministry of Energy, Kenya, will be in attendance to present plans for future licensing.

Morocco: Onhym will be presenting and has confirmed presence at the Exhibition

New Sponsors: PetroSA, Vinson & Elkins, Wood Group, PSN

New Exhibitors: MGGS, Transnet National Ports Authority, Government of Alberta (Canada), CBH, CapMarine, GAMA Industrial Plants, Red Sea Housing Services, Horizon Geosciences, Stormgeo, RSI Geophysical, Vinson & Elkins, Ethiopia, McDermott, Geospace, Sonangol*, Bell Geospace, Cameron, ONHYM, Friburge Oil & Gas

The 22nd Africa Oil Week encompasses: the 13th Africa Independents Forum, 17th Scramble for Africa Strategy Briefing (Presentations by Dr Duncan Clarke, Chairman, Global Pacific & Partners) and 71st PetroAfricanus Dinner In Africa with social networking occasions, breakfasts, luncheons, dinners, and cocktail receptions.

Government & Country Presentations and Participation includes: Equatorial Guinea with Minister, Gabon with Minister and Ministry Delegation, Ghana, Mocambique, Egypt, Kenya, Uganda, Nigeria-Sao Tome & Principe JDA, Somalia with Minister, South Africa, Seychelles, Madagascar, Morocco, Ethiopia, Senegal, Namibia, AGC (Senegal-Guinea-Bissau), Malawi, The Gambia – plus with Bid Rounds and Roadshow Announcements from:Republic of Congo, with Minister, Government Delegation and SNPC-DGH, and Republic of Gabon – plus with Government Delegations from Sonangol and Angola, Madagascar, South Sudan, Sao Tome & Principe, and many others, as well as with Speakers Africa-wide on Cameroon, Nigeria, Tanzania, Comoros, Mauritania, Sierra Leone, Liberia, Chad, Zimbabwe, India in Africa, Japan in Africa, China in Africa, Statoil in Africa, United States in Africa, Canada in Africa, and African Development Bank, IFC, TSX, JSE, and Nipex.

Sponsors

ACAS-LAW, Africa Finance Corporation, Africa Oil Corp., Africa Petroleum Corp., AirFrance / KLM, Anadarko Petroleum Corporation, Centurion LLP, Chevron, Discover Exploration, ENI, Erin Energy, ExxonMobil, GEPetrol Equatorial Guinea, GreenbergTraurig, IHC Mercedes Holdings, Impact Oil & Gas Ltd, Nedbank Capital, Noble Energy, Oando, Ophir Energy, Petroleum Agency SA, Petroleum Commission Ghana, Petrolin Group, PetroSA, PGS, Pluspetrol, Polarcus, RPS, Rystad Energy, Salama Fikira, Saldanha Bay IDC, Seplat Petroleum, Seven Energy, Shell, TMX / Toronto Stock Exchange, Tullow Oil plc, Total, Veolia, Vinson & Elkins, Woodside Energy, Wood Group PSN

Detailed Program: includes 13th Africa Independents Forum, 17th Scramble for Africa Briefing, 71st PetroAfricanus Dinner in Africa, 22nd Africa Upstream, Africa Oil & Energy Finance Forum, plus Forums on Africa Exploration Technologies, Africa Local Content, and Africa’s Young Professionals

Visit www.africa-oilweek.com

See Why in Tanzania Gas Industry, Transparency is Important

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Recently, transparency become hot in Tanzania’s Oil and gas Sector. Many organisations work hard on launch their findings  to promote transparency in natural gas industry

Yesterday the Friedrich- Ebert -Stiffung (FES)  Tanzania, launched its “Tanzania Oil and Gas Almanac” and present other  tools aimed at promoting  transparency in Tanzania’s oil and gas industry. you can also read: fes launched tanzania oil and gas almanac

Also on september 1st 2015, Twaweza organization released their findings which has shown 77 percent of Citizens want more information on recent natural gas discovered.

Few days ago   Poverty alleviation (REPOA) and Center for global deviation has done research, and their findings shows that most Tanzanians support publishing of all oil and gas contracts and government revenue generated from oil and gas . Read here:citizens of Tanzania support-extracting and selling of natural gas internationally

The key question here is why  these various organizations try hard to promote transparency in  natural gas industry in Tanzania?

They do all of these because transparency is necessarily important for emerging oil and gas producer country like Tanzania.

Now let us See

                           Why transparency is very crucial in Tanzania’s Natural gas industry?

1.Manage public expectations

By citizens being aware of the time frame of production, how big discovery it is, educate them difference between  a discovery and a commercially  proven discovery, we would be able to manage public’s  expectations like massive job creations to  Tanzanians,  you can also read . see why discovery of natural gas in  Tanzania Could not bring too many jobs to Tanzania as they believe

2.Improve fairness to Citizens 

Disclosure of financials data and contracts can help convince both citizens and companies that the process is fair,.

3.Reducing Conflicts

By identify which group require specific communcation including citizens living nearby producing regions, it might reduce conflicts and chaos, what happen in Mtwara was due to lack of right information to the citizens.

4.Public support

Tanzania as a new gas producers, by contract disclosure benefit the country because make the term public available can increase public support for project.

5.Wining the trust of Citizens

Disclosure of information related to tendering and licensing process could raise the citizens confidence as the revenues  generated from the Natural gas industry would not  only stay in the  hand of corrupt leaders and rich men instead will all citizens and country will benefit as whole.

MY FINAL WORDS

Transparency is very  essentials in Tanzania’s Natural gas industry,also engagement of average citizens is particularly important in avoiding conflict.  Also those information should published  in both  swahili and english language so as  can be easily  understod to every one

Dear  readers we love more you comments from all of these.

prepared by Hussein Boffu founder of This site

Solo Oil Ranks Tanzania Assets Highest

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Solo Oil announced Tuesday that its assets in Tanzania represent the most significant investments for the company and revealed that their further development “is being actively pursued”.

The company has a 25 percent stake in the Ruvuma PSA and acquired a 6.5 percent interest in the Kiliwani North Development License in February 2015, with an option to purchase an additional 6.5 percent interest within 30 days of the signature of a gas sales agreement for the produced gas from the KNDL. Solo’s key asset in the Ruvuma PSA is the Ntorya gas-condensate discovery, made in 2012. Ntorya is estimated to contain a gross 158 billion cubic feet of proven gas in place. The Kiliwani North-1 well in the KNDL was drilled by Aminex and its partners in 2008 and discovered gas in a 196 foot column in the Lower Cretaceous. Based on well test results Kiliwani North-1 is expected to be flowed at a rate of up to 30 million cubic feet per day once on-stream.

You can also read: Tpdc has awarded ion contract for Seismic  survey  in Ruvuma Delta Region

Solo Oil posted an operating loss of $564,917 in the first half of 2015, compared to an operating loss of $654,559 recorded during the same period last year. No revenue was registered for the company for the six month period ended June 30, 2015, although Solo Oil expects its assets in Tanzania to contribute to its revenue stream in the future.

 

The changing politics of natural gas in Tanzania

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Lower global oil and gas prices have affected the level of exploration activity in Tanzania, but it has not completely eroded the stronger bargaining position the government has enjoyed in recent years. Major gas finds in various geographical locations combined with a stronger domestic demand means that the petroleum sector in the East African country will continue developing, albeit at a slower pace.

This paper reviews how the Tanzanian politics of oil and gas contract negotiations is changing. By focusing on the broader framework of contracts – including infrastructure, power production, and industrial use – the paper suggests that the focus on revenue maximation that prevails in much literature may skew our understanding of inherently political negotiation processes. Other priorities – and increasingly other actors – affect the price the government can get for its petroleum resources.

The paper by Rasmus Hundsbæk Pedersen, postdoc at DIIS, and Peter Bofin, consultant based in Dar es Salaam, is the second on the negotiation of petroleum contracts in sub-Saharan Africa. The first paper, The Politics of Oil/Gas Contract Negotiations in sub-Saharan Africa, reviewed the general literature on contract negotiations on the continent.

4 Facts Every Tanzanian Sholud Know About Gas Industry

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Discovery of natural gas in Tanzania is greeted with great optimism, Citizens believe gas is money, and they think through discovery of gas their lives could change dramatically, They think  gas sector  would bring millions of jobs, and their sons, daughters relatives or themselves  will be employed. they bel.In other word they have a lot of expectations. 

However their expectation are unrealistic and after knowing these factors you will be aware  on how real situation is

1.Few jobs in Oil and gas sector

Reality is, there is very few jobs in Tanzania petroleum field due to nature of the industry. if you don’t trust what i tell  you,  read this: see why discovery of natural gas in Tanzania could not bring Too Many jobs to Tanzanians as they believe

2.Gas is flowing and government earn money from it.

Citizens believe gas is flowing therefore government  and investor are benefit from the revenue generated from natural gas industry. This is untrue. see here why:misconception many Tanzanians on natural gas industry

3.Natural gas industry would improve their living standard

When people  talk about this, they take an example of country like Norway, where the discovery of oil in 1969 turn Norwegians into some of the wealthiest people in the world. But the most important things people forget is they never realize that Norway were quite well off even before the discovery

4.Only leaders and rich men will benefit from revenue generated from gas industry.

Citizens believe revenue generated from natural gas will stay in the hands of corrupt leaders  and politicians instead of benefit local community. This also is wrong misconception because recently, petroleum companies operating in Tanzania are more detailed about their financial report and also they publish information on the site where they work. This would make difficult for revenue generated from gas industry to stay in the hands of leaders.

MY FINAL WORD

Citizens should be given the right information and from the right sources so as they can be aware on the Tanzania petroleum field.

Gulf PetrochemTo Acquire Terminal in Tanzania and Kenya

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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.

Misconception of Many Tanzanians On Natural gas Industry

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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

 

How Low Oil Price Affects Petroleum Companies and Petroleum Workers

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searchBelieve me or not  some  people are happier with the recent low crude prices because they can fill their cars with cheaper gasoline, but  it hurt more oil companies and oil and gas workers.

Now let see how this it affect petroleum companies and i will finish by explain how it affects oil and gas workers.

Lets go

 

How it affect oil companies

The industry is composed of four segments

Upstream companies: they deal with exploration and production in other word they getting crude out of the ground. These  companies  experience bad time  during low crude prices as the cost of selling price it depend on market situation, while the cost of production is fixed. So if it costs more in production and exploration and costs at which  they sell price it gets low, they will incur losses .

Midstream Companies: They deals with moving crude oil and natural gas, example of midstream stuff  such as pipelines, tankers rail car etc. Since oil price is low these companies will move oil at the low prices.

 

Downstream companies they deal with refining manufacturing and selling of products from oil and natural gas like petrochemicals, lubricants and fertilizer. These companies are not affected much because they make profit by purchasing  crude or natural gas and selling their product so these companies still make profit even in downturn.

Service companies: they provide man power and help in service in oil and gas companies, example  Schlumberger,  and Halliburton, This companies during downturn experiencing serious trouble since because they depend on receiving tender from upstream  Companies,  So they must receive even less payment from operators as a result they incur loss.

 

How it affect Petroleum professionals

Petroleum companies are not only who feel the pain of this low prices but also it hurts  oil and gas workers. As the  crude price gets low petroleum companies try to find ways to run their operation with minimum cost and ensuring they are making profit, in order to do so they cut up jobs and laid off its workers. As the  oil and gas workers  lost their jobs in petroleum companies make them experiencing bad time.

Read :how-oil-gas-professionals-who-lost-jobs-can-survive-the-low-oil-price

MY FINAL WORD

Low oil price is not  a good news to every one because it has it hurts companies in petroleum business as well as oil and gas workers