Tag Archive for: tanzaniapetroleumdevelopment

Tanzania Oil and Gas Strategic Analysis and Outlook to 2025

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author, one of the leading research and consulting service providers for the oil and gas industry, recently published the “Tanzania Oil and Gas Strategic Analysis and Outlook to 2025”. The premier report provides analysis of key opportunities and associated challenges facing Tanzania oil and gas industry.

Amidst downfall in oil prices creating uncertainty on the future of Tanzania industry growth, the report details key strategies of government, oil and gas companies and investors in the country. Detailed outlook of the industry in terms of production forecasts of oil, gas, LNG, LPG, gasoline, diesel, fuel oil along with supporting parameters of primary energy demand, GDP and population are included.

Current status of planned projects along with the possible commencement of the projects, feasibility of developing those projects in current market conditions, expected start up, impact of competing assets in other countries and overall industry developments, investments required and other related information on planned projects is provided in detail.

The comprehensive guide provides analysis and forecasts of Tanzania oil and gas market for the period 2000 to 2025. Asset by asset details of all existing and planned projects across Tanzania oil and gas value chain are detailed in the report.

Driven by strong methodology and proprietary databases, reliable projections of oil, gas, petroleum products, coal, and LNG- supply and demand are made to 2025. The research work examines the existing infrastructure (oil and gas assets), market conditions, investment climate and competitive landscape of upstream, midstream and downstream sectors.

SWOT Analysis and benchmarking tools are used to analyze and compare the real prospects and challenges of investing or expanding in the industry. Further, the report details all the investment opportunities sector wise, highlighting the industry growth potential and project feasibility. Detailed information on new fields, blocks, pipelines, refineries, storage assets and LNG terminals along with the investments required, current status of the projects and commencement feasibility are provided.

The report also analyzes three key companies in Tanzania oil and gas industry. Business operations, SWOT Analysis and financial performance of the companies are provided. All latest developments in the industry along with their possible impact on the industry are included in the report.

Some of the Key issues addressed in the report include-

– How will be oil and gas supply scenario in Tanzania by 2025?
– Which of the petroleum products will witness the maximum demand growth by 2025?
– What are the new risks and opportunities for investors/ oil and gas companies?
– What are the potential investment opportunities in Tanzania and how much investment is needed?
– How did the production from major fields vary over the last decade?
– What is the current status of all planned projects in Tanzania?
– Who is the market leader and what is the market concentration ratio of pipelines, upstream, oil storage, refining, LNG and UGS sectors?
– What will be the coking/FCC/HCC/VDU capacities in the Tanzania by 2020?
– How much of the LNG capacity is contracted and how much will be available for contracts by 2020?
– What will be the crude oil/petroleum products/chemicals storage capacity by 2020?
– How much natural gas can be withdrawn from underground gas storage tanks in a day?
– How extensive is the pipeline transportation network in the country?

Scope

Coverage-
Across the value chain including Fields, blocks, pipelines, oil, products, chemicals storage, underground gas storage, refineries, LNG

Forecasts and Projections-
Crude oil, natural gas, LNG, petroleum products supply and demand: 2000- 2025

Market Analysis-
Primary energy scenario; SWOT Analysis; Benchmarking with peer markets; Drivers and challenges

Investment opportunities-
Information on investments, current status, routes, owners, construction contracts of Key planned pipelines, planned refineries, new units, expansions and upgrades, exploration blocks on offer, LNG terminals, expansions, new storage facilities

Asset wise Information-
– Oil and gas field details- production (2005-2012), location, operator, ownership
– Refineries- primary and secondary capacity outlook (2005-2020), refineries under operation and implementation (complexity, capacity, location, start up, operator, ownership), refinery expansions
– LNG – capacity outlook (2005- 2020), trade imports, utilization rates (2005- 2014), operational and planned terminals (location, start up, operator, ownership and capacity)
– Storage- oil and gas storage capacity outlook (2005-2020), tank farm details under operation and planned
– Pipeline- crude oil, petroleum product and natural gas pipelines under operation and planned

Competitive Landscape-
Market structure and share of top five companies in each of the oil and gas segments is provided;
Company wise oil, gas production from 2005- 2012 is provided
Net weighted refining, LNG and storage capacity information is provided for historic and forecasted period
Further, detailed business profiles of three leading oil and gas companies in the country are included, detailing their business overview, SWOT and financial analysis.

Latest industry Updates-
All latest industry updates along with their possible impact on the industry, players and investors are analyzed.

Reasons To Purchase

The multi-client market study is used by oil and gas companies, traders, constructors, equipment and service providers, investment, financial institutions and strategic decision makers.

It allows your company to –
– Identify potential opportunities and risks involved in operating and investing in the market
– Formulate effective growth and expansion strategies through reliable forecasts
– Gain clear understanding of market size, trends and challenges for each of the oil and gas segments
– Beat your competition with robust information on the industry
– Understand the operations, strategies of leading companies
– Keep updated with all the recent developments in the industry.

 

For more information visit:http://www.researchandmarkets.com/research/s6szlj/tanzania_oil_and

 

 

 

 

Paragon Offshore appoints ISS to drill in Tanzania Songo Songo Island

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Paragon M826 can drill to depths of 20,000 ft
US company Paragon Offshore has appointed Inchcape Shipping Services (ISS) to provide marine and logistic services for a new drilling campaign off the Songo Songo Islands, Tanzania.
The Songo Songo project is the first new commercial drilling operation in Tanzania in a number of years. Paragon Offshore has been contracted by Tanzania’s first natural gas producer, PanAfrican Energy on a nine-month campaign.
“We are delighted by our first appointment by Paragon Offshore in East Africa,” said TS Mahesh, General Manager, ISS Tanzania.
“The opportunity to support this drilling campaign takes ISS to the next level in the oil and gas support service sector in Tanzania and boosts our future growth plans.”
The services ISS is providing for Paragon Offshore include full husbandry, crew logistics, visa assistance as well as arranging marine and air charters.
Paragon Offshore, a leading provider of standard specification offshore drilling services, is deploying jack-up rig M826, which was delivered to the field on board semi-submersible vessel, OHT Falcon, to be floated off and pinned to the drilling location.
M826 is expected to clear actively producing wells to enhance output and drill several new wells in the same field
.

Components of Production Sharing Contract in Kenya

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Licensing of petroleum exploration blocks, is governed by the
Petroleum (Exploration and Production) Act Chapter 308 of the Laws of
Kenya. All contracts are based on a Model Production Sharing Contract
(PSC) issued as a schedule to the Regulations issued under Section 6 of
the Act.
The signed Production Sharing Contracts have the following key component:
a) Signature Bonus: This is a one-off fee payable to
the Government by the Company upon signing of an oil exploration
contract. It depends on the area of the Block and previous data acquired
on the Block. Signature Bonus negotiation came into effect in 2009. In
block 12B for example the signature bonus paid was $300,000 according to
JV partner Australian Swala Energy. In block L27 operated by CAMAC
Energy the signature bonus paid was $310,000 according to the PSC available on this website.
A surface fee is also payable and is calculated on
the basis of the surface area of the Contract Area on the date those
payments are due. In Block L27 the amount set is $5 per square kilometre
per annum during the Initial Exploration Period, $10 per square
kilometre per annum during the first Exploration Period, $15 per square
kilometre per annum during the second Exploration Period and $100.00 per
square kilometre per annum during the Development and Production
Periods
b) Work programme and expenditure: The contractor
guarantees the agreed work programme and minimum expenditure. Initially
this was pegged at 15% bank guarantee and 85% parent company guarantee.
However, the Ministry has improved this and now the newly licensed
companies are required to provide a 50% bank guarantee and 50% parent
company guarantee.
This is to make sure that the companies proceed with their work
progamme expeditiously as agreed with the Government and that incase of
non-performance, the Government can liquidate the guarantees more
easily. For small companies (based on their annual turnover criteria),
they are required to post 100% bank guarantee. It is important to note
that upstream petroleum operations are capital intensive and the
Government entirely relies on the oil companies to invest their risk
capital in the operations.
In addition, this risk capital is raised through equity. This is
contrary to investment in mid stream and downstream petroleum segments
which can be funded by debt
c) Cost oil: This is usually the negotiated
percentage of total crude produced for recouping of investment costs
incurred by the contractor in exploration and production of oil in a
given field. It is normally up to 60% of all the oil produced in a field
for about five years.
d) Profit oil: This is the remaining oil after
deducting cost oil and is shared between the Government and the
contractor. For example, when a field is small the Government take is
50%. As the production increases, the Government take can increase up to
78% of the total profit oil.
e) Windfall profit: Where oil prices are higher than
the negotiated threshold, the Government creams off contractors take
above the threshold crude oil prices by 26%.
f) Exploration phases – there are three exploration
phases of two years each, the initial period, first additional period
and second additional period. For ultra deep offshore blocks, the
initial period is extended to three years due to extra logistical
challenges in the deep water acreage.
g) Relinquishment – is 25% of the area of the block for each period
The PSC also has the license rental fee and training fee included. In
Block 12B for example the license rental fee is set at $40,000 during
the first year (2012-2013) and $80,000 during the second year, training
fee is $100,000 per annum. During the first production phase the
training fee is set at a minimum of $200,000 in Block 1 PSC with Lion
Petroleum.
Check out PSC’s for the various East African countries namely Kenya, Uganda, Tanzania, Mozambique available on our website.
Additional Source: Ministry of Energy & Petroleum Website
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The Ministry of Energy & Mineral Development has announced that
the “Uganda International Oil & Gas Summit” (UIOGS) will be held in
Kampala on 16-17 September 2015.

With a first-class conference programme led by Government, Public
Sector and Private Sector industry leaders; the Summit marks an
important point on the global calendar.

UIOGS is held under the Patronage of Eng. Irene Muloni,Minister of
Energy and Mineral Development; and will be used by the Ministry as its
official platform for meeting international companies and presentation
of the multitude of energy projects presently ongoing or planned for in
Uganda.

Uganda has much to offer the global oil and gas community and 2015 is
an exciting year as the country moves towards commercial production.
Uganda is blessed with its natural resources and now has an estimated
6.5 billion barrels of oil in place, a high drilling success rate of
85%, advanced refinery plans, vast acreage of underexplored areas rich
in hydrocarbons and much to look forward to with the new licensing
rounds.

The UOGS programme will provide an invaluable insight into all the major issues, challenges and opportunities including:

  • Focus on the licensing rounds and new opportunities
  • Update on existing fields and exploration success
  • Financial and regulatory frameworks
  • Uganda’s Refinery Project – 60,000 bpd by 2020
  • Move to commercial production
  • Supporting the oil and gas industry through a skilled workforce and local content
  • Infrastructure developments to support oil & gas
  • How can a successful oil industry support our drive towards rural electrification

The Ministry of Energy & Mineral Development will be using the
UIOGS platform to actively engage with allits partners and suppliers
from around the world. The services of the renowned market leaders for
oil & gas conferences; Global Event Partners have been engaged to
work alongside domestic experts Image Care to ensure that UIOGS is a
first-class event that puts Uganda firmly on the global map.

UIOGS is a two day conference that will be held at the Kampala Serena
Hotel on 16-17 September 2015. The programme will be opened by Hon. Eng
Irene Muloni and will feature more than 30 Government officials,
Company leaders and Industry experts gathered from Uganda, the region
and throughout the world to give Uganda a truly global platform.

See How Oil and Gas Industry Works

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Today, we can learn
that even though you may be buying Chevron Gas, Chevron may not have much to do
with it. Welcome to our overview of the oil and gas vertical. You know most
people think they know the oil and gas industry, but they really don’t. So
we’re going to see if we can give you some useful information and clear up some
common misconceptions. So most people think of companies like ExxonMobil and
just assumed they get oil in the ground somewhere in the world, ship that crude
in ExxonMobil pipelines to an ExxonMobil refinery, sell it in ExxonMobil gas
station. But guess what? That is absolutely wrong, that is not how this
industry works. This is how it works. 
The industry is composed of four main segments;
upstream, midstream, downstream, and service. Upstream is actually getting the
crude out of the ground. You often hear it called E&P or Exploration and
Production. This is upstream, this is upstream, this is upstream, this is
actually and FPSO. The next segment is midstream. Midstream is basically moving
that crude oil in natural gas. So midstream stuff such as pipelines,
supertankers, rail cars. Then, we move to downstream. Downstream is actually
the refinery, the refining manufacturing and selling of the products from crude
oil and natural gas. So downstream things such a refineries, retail loop
stations, fertilizer which is big product of petrochemical refining,
lubricants, motor oils, retail gas stations, and plastic which is another large
product of crude oil. Then, we move to the service companies. Service are
companies that actually provide manpower and help in services the oil and gas
industry, but they don’t produce any petroleum or petroleum products
themselves. So you have everything from the guys that out there designing the
rigs to the crew boats that move men and equipment back and forth to the actual
roughnecks that do the drilling, to the manufacturer of drill stem, and things
like subsea installations. Every bit of this is service. 
Then, you also hear
the word Super Majors or Combined. What is that? That are companies that do
everything; upstream, midstream, downstream, and some service. And right now in
2013, there’s only five of them. This is it. These are the five Super Majors.
So what does that mean? We’re going to talk you through literally from cradle
to grave a drop the crude oil to the point where it gets into the gas tank of
your car. So, the US government auctions off a block of land the highest
bidder. After checking my last auction facts in the Gulf of Mexico, $2 billion
somebody paid for rights to drill on a piece of land for ten years. That’s it.
Think about that for a second. You write a check for $2 billion to have ten
years to make that money back and hopefully some profit, but there’s no
guarantees. So this case it was BP who spent that $2 billion for a deep Gulf of
Mexico lease.
 BP then needs to drill, right? BP does not have its own drill
rigs. BP contracts a drill rig basically rents it from companies such as
Transocean. That drill rigs needs to be staffed by people, so you have
companies such as Halliburton and Baker Hughes to actually help them operate
that drill rig. The crude that gets produced on the drill rig needs to be
transported. Guess what? BP puts out to open bid to all the different
industries all the different companies in the world who will move this crude
oil at the bets price. In this case, it was a supertanker and the win was won
by Chevron. So Chevron has the crude oil in supertanker and it’s in transport
to refinery, but halfway there, ConocoPhilips on their trading floor buys that
crude and it turns around and sells it for few cents profit per barrel. And it
was sold to Shell refinery who then refines that fuel at a profit, ships it in
Kinder Morgan pipeline to a 76 gas station as owned by who? No, not 76. It’s
owned by one of your neighbors which is called the Jobber. So there you go.
There it is from literally getting out of the ground into being burning your
gas tank as a fuel. And you look at how many different people are involved and
how many different layers of profits are involved and this is a very complex
industry. So hopefully this helps you understand at least at a high level what
goes on in the oil and gas industry.

Wentworth Resources Raises $7.6 Million To Finance Tanzania�s Mnazi Bay Developments

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Wentworth Resources has announced that it has successfully raised
gross proceeds of USD 7.6 million (GBP 4.9 million, NOK 59.7 million)
with institutional investors and certain Directors and members of the
Executive Management through a private placement of 15,412,269 new
shares.
The private placement saw no discount to market price with the new
funds set to provide the Company with sufficient working capital beyond
its projected receipt of first cash flow for gas sales from its Mnazi
Bay concession.
This comes at a time when construction of the Government owned and
operated Mtwara to Dar es Salaam pipeline is complete and the
accompanying processing facilities are nearing completion with
pre-commissioning activities ongoing with delivery of first gas into the
new pipeline continues to be on track to commence in Q3 2015.
According to Wentworth Resources significant progress has been made
in recent weeks on advancing payment guarantee arrangements and the
Company is confident these will be completed prior to the delivery of
first gas to the pipeline.
The company said it had preferred the Private Placement as it
represented a quick and cost-effective method of raising funds necessary
to give the Company sufficient working capital until projected cash
flow from gas sales at Mnazi Bay commences.
FirstEnergy Capital and Stifel have been appointed as Joint Bookrunners in respect of the Placement.
According to Wentworth executive Chairman Bob McBean the Company
expects to start receiving cash flow from gas sales to the new pipeline
in Q4 2015.
“We are very pleased with the successful outcome of this raise which
provides the working capital we need prior to delivery of first gas. We
are confident that, with the support of our Partners and the commitment
shown by the Government, gas will be on stream in the coming months and
will be fully supported by an agreed payment guarantee arrangement. I
and the Board would like to thank our existing shareholders for their
continued support and welcome our new shareholders at an exciting period
ahead for Wentworth,” says McBean.
In March
Wentworth Resources announced that the Company has subsequently drawn
an amount of $5.6 million on an existing $20 million credit facility
with a Tanzania-based bank, TIB Development Bank Limited to finance
Mnazi bay concession developments including drilling of the MB-4 development well.
As per the last evaluation gas reserves within the Mnazi Bay
Concession in Tanzania, carried out by RPS Energy Canada Ltd put the value at $152.9 million after tax.
Marel et Prom is the operator at the Concession with 60.075 percent
interest through exploration and 48.06 percent through production while
the Tanzania Petroleum Development Corporation holds the remaining 20
percent.

Schlumberger Introduces Depth Domain Inversion Services

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Schlumberger petro-technical experts use the services to improve the
reliability and consistency of seismic structural and quantitative
interpretation in complex environments.

“Conventional seismic inversion in the time domain introduces
inconsistency between the seismic images and the rock properties,
especially where there’s a significant overburden, such as subsalt,”
said Maurice Nessim, president, Schlumberger PetroTechnical Services.
“With Depth Domain Inversion Services, customers receive more
information derived from seismic data for reservoir characterization.
This helps reduce uncertainty in complex reservoir environments, improve
the confidence in prospect delineation, reservoir properties and
volumetric calculations.”
Performing seismic inversion in the depth domain fully integrates the
inversion with the imaging products to improve the reliability of
estimating rock properties for reservoir characterization. This is done
by correcting for depth space and dip dependent illumination effects
during seismic amplitude inversion directly in the depth domain.
depth domain inversion services
Depth Domain Inversion Services have been successfully applied in
complex geological environments in North and South America. In the Green
Canyon area of the Gulf of Mexico, Schlumberger petrotechnical experts
used a Depth Domain Inversion workflow in a complex subsalt area that
was poorly illuminated.
Reverse time migration produced seismic amplitudes adversely
imprinted by the illumination effects. Executed in the Petrel E&P
software platform, the workflow improved structural and quantitative
interpretation, corrected illumination effects and provided a much
sharper reflectivity image for better event continuity, more reliable
seismic amplitudes and a higher fidelity acoustic impedance volume

Wentworth Resources Estimates $3.5m in Tanzania Monthly Gas Sales

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Wentworth Resources says it estimates that monthly gas sales in
Tanzania into new government owned pipeline Q3 2015 could reach an
estimated $3.5m monthly.

Initially Mnazi Bay will be the only supplier of gas in Tanzania into
new pipeline from 5 wells which will be producing in the field by Q3
2015 at initial volumes of 80 mmscf/d escalating to 130mmscf/d in 2016

Wentworth adds that the substantial cash flow generation is expected
to commence in Q4 with the plan being to reinvest cash flows into Mnazi
Bay and grow the business by maximizing production from existing
discovered gas fields to meet the growing demand for gas in Tanzania and
examining more drill exploration prospects.

Already the company has identified six exploration targets with 1.5
Tscf (614 Bscf Wentworth’s share) unrisked P50 Prospective Resources
with all costs recoverable against existing and future production within
the Concession

On the way forward Wentworth says it will continue to focus on East
Africa onshore and near shore,  pursue acreage along pipeline route in
Tanzania, evaluate Tembo-1 discovery Onshore Rovuma for potential
appraisal and Expand operations in East Africa.

As per the 17 year term gas sales agreement with the government the
government is responsible for transportation and processing costs and
payment guarantees are nearing finalization.

As per the last independent evaluation
of its gas reserves within the Mnazi Bay Concession in Tanzania,
carried out by RPS Energy Canada Ltd the value of Wentworth Resources at
Mnazi Bay is set at$152.9 million after tax. RPS Energy also placed the
value of the entire field at 443Bscf (2P) equivalent to 73.8MMboe.

Wentworth holds a substantial 31.94 percent withholding interest in production equivalent to 141.5Bscf (2P) gross reserves.

In October 2014
Wentworth Resources estimated its projects in Tanzania would make $20
million for first full year and $140 million over first 5 years of
production net of operating and on-going development costs according to
the October 2014 presentation.

Wentworth holds 31.94% in the production stage down from 39.925%
 while the operator and  Mnazi Bay Partner Maurel et Prom holds 48.06%
down from 60.075% after the Tanzania Petroleum Development Corporation
backed in to take 20% of production interests.

Opportunities in East Africa as region enters Production Development Phase

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Four East Africa countries among them Mozambique, Tanzania, Uganda
and Kenya are headed to the development phase as they draw closer to
exploit their oil and natural gas reserves providing an opportunity for
investors to dive in and benefit from the projects worth billions of
dollars.

According to George Wachira working with Petroleum Focus Consultants
this phase provides opportunity for players in various fields including
engineering, logistics and field services, financial services, materials
supply amongst others.

On the engineering and construction field Wachira sees the greatest
opportunity for local large mature contractors who can bid directly and
participate in the projects independently.

“Some experience has been achieved through the ongoing exploration activities,” says wachira.

For smaller engineering and construction firms the opportunity is in
forging partnerships especially with oversees firms who can transfer
their expertise and technology.

Wachira says that whereas various contracts will fall to
international firms with years of experience in this sector there will
be increased use of local subcontractors even as he urges local firms to
seek training and certification.

The sheer amount of materials needed will drive up demand for logistics and field services even as there is expected to be the commencement of development drilling.

Total Uganda which is awaiting a production license for example
estimates that it will need to move over 800000 tonnes of equipment as
it starts development at Hoima which would mean about 1000 trucks a day
during the period in both Kenyan and Ugandan road.

Already a number of local companies have already dominated this space including the first listing by an oil and gas company on the Nairobi bourse.

There is also hope especially by local companies that they will receive government protection  in the supply of materials that are readily available locally the a local content legislation.

“The early enactment of local content regulations shall empower local businesses,” he says.

Other opportunities are in the financial services segment where
banks, insurance and guarantees  with various local institutions having
already entered this space.

Last week Chase bank announced that it would be providing $50 million
to small and medium enterprises wishing to venture into the oil and gas
sector.

The financing of SMEs to venture into what has so far been viewed as
an closed society has for long being identified  as a major barrier to local participation alongside the enactment and operationalization of the local content legislation.