Tag Archive for: Tanzania uganda kenya pipeline

Tanzania Seafarers To Start Exploration of Oil and Gas in Deep and Shallow water

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THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

The move comes after the accomplishment of all legal procedures and fulfillment of sailor’s demands such as health insurance and working contracts to companies that they will be working with.

Speaking in Dar es Salaam, the TSC Chairman, Mr Frank Chuma said that they have reached agreement with the government on the fulfillment of important requirements that are needed by seafarers.

He said next process shall be signing contracts between the Community and Tanzania Petroleum and Gas Development Corporation (TPDC). “We are happy that everything went smoothly in accordance to expectations although it took three years until the accomplishment. We are now ready to work anywhere within and outside the country,” he said.

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“The TSC concern was to see local sailors benefit from opportunities that shall be found in their homeland,” he added. He said the move shall reduce unemployment rate for local seafarers who are about 5,000 country wide, as they are now going to be attached to both foreign and local companies that are associated to the oil and gas exploration sector.

“In accordance with Tanzania shipping business laws, for a sailor to go to the sea he/she must have insurance. We therefore recommend the remarkable contribution by the finance ministry,” he said.

He added that the issue of employment is a major problem for sailors something which pushed them to have number of consultation meeting with different stakeholders including China embassy, Tanzania Ports Authority (TPA), TPDC and the Ministry of finance.

He said, the Chinese Embassy has agreed to cooperate with them in fishery, oil and gas as well as other related activities and they are ready to bring their gears to help revive the activities in the country.

For his part, the renowned maritime instructor Mr Charles Chagula, urged the sailors to work hard once being attached to the companies as a way to prove their capacity and morality.

“We have reached the ultimatum of what we have been fighting for the past three years, it is our turn now to work hard and ensure effective delivery of our profession to the public,” he said.

Tanzanian pipeline isn’t commercially viable, CEO Hill says

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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.

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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.”