daily menu » rate the banner | guess the city | one on oneforums map | privacy policy (aug.2, 2013) | DMCA policy | flipboard magazine

Go Back   SkyscraperCity > Continental Forums > Africa > East Africa > Somalia > Economy & Business / Dhaqaalaha iyo Ganacsiga

Economy & Business / Dhaqaalaha iyo Ganacsiga Found urban images from all around the world not taken by you

Reply
 
Thread Tools
Old January 21st, 2012, 03:26 AM   #1
Constantine MMX
RETIRED
 
Constantine MMX's Avatar
 
Join Date: Sep 2010
Posts: 2,613
Likes (Received): 98

East Africa hosts biggest natural gas find!

It seems the Indian Ocean has alot more to offer than just pretty beaches:

Quote:
Poorest Nations Host Biggest Gas Finds in Sign of Deals: Energy

Jan. 16 (Bloomberg) -- One of the world’s poorest regions is also home to the biggest natural-gas discoveries in a decade, luring investors from steel billionaire Lakshmi Mittal to Royal Dutch Shell Plc. (RDSA)

Eni SpA (ENI) and Anadarko Petroleum Corp. (APC) found about $800 billion of gas under the Indian Ocean off Mozambique, 36 times more valuable than the nation’s economy, ranked 213 of 227 countries for per capita income. Explorers in neighboring Tanzania have struck gas fields, and drilling will pick up pace in Kenya this year.

The fields are big enough to support exports of liquefied natural gas, or LNG, opening up a source of energy supply to the world’s fastest-growing major economies, India and China. They are also drawing the interest of the world’s largest oil and gas companies, which prize LNG projects for their decades of generating cash. Exxon Mobil Corp. (XOM), Shell and BP Plc are the biggest owners of LNG capacity worldwide.

“East Africa is obviously very exciting after being a backwater for a long time,” said Evan Calio, an oil and gas analyst at Morgan Stanley in New York. LNG plants are “big, capital-intensive projects. All the big ones want these.”

Smaller explorers in the region are ready to do deals. Ophir Energy Plc, (OPHR) a London-based African specialist that counts the Mittal family and New York hedge fund Och-Ziff Capital Management Group LLC among its largest investors, says it’s seeking partners to drill off Tanzania. Cove Energy Plc (COV), which holds a stake in Mozambique finds, said Jan. 5 it may sell the company. Anadarko Petroleum Corp. is looking to sell assets.

Buying Projects

The world’s largest energy companies have been buying into projects to supply gas to customers in Asia. BP last year completed a $7.2 billion acquisition of a 30 percent stake in 21 Indian gas fields operated by Reliance Industries Ltd. Shell last year agreed to acquire an interest in the Chevron Corp.-led Wheatstone gas project in Western Australia.

LNG prices in the Asian markets averaged between $16 and $17 per million British thermal units at the end of last year. In contrast, U.S. natural gas has dropped 43 percent in the last year and traded today at $2.556 per million British thermal units on the New York Mercantile Exchange at 7 a.m. local time.

‘More Dominant’

“You’ll see the majors becoming more dominant through acquisitions,” said Stuart Joyner, an oil and gas analyst at Investec Securities in London. “A lot of the independents that really have been the vanguard in terms of opening the new province will sell out as things start to move out of the exploration stage.”

While enough gas has been found to support the region’s first LNG projects, there’ll be no let-up in the hunt for resources in the region, which is under-explored compared with West Africa. Explorers have drilled fewer than 500 wells in East Africa and more than 33,000 through the rest of the continent, according to Afren Plc (AFR) data.

This year, 23 wells will be drilled off Kenya, Tanzania and Mozambique, almost double the number in 2011, according to research from Morgan Stanley.

“Assuming that the drilling success is continued you would expect to see consolidation around probably one mega-terminal” for Mozambique and one in Tanzania, Ophir Chief Executive Officer Nick Cooper said in an interview. “Obviously the bigger fish tend to eat the smaller fish.”

BP had been in talks on East Africa projects with Ophir, while Shell teamed up with Petroleo Brasileiro SA (PETR4) in October to explore off Tanzania.

‘Looking Closely’

“It’s obviously a basin where many people of the world are looking closely,” said Shell’s executive director for exploration and production, Malcolm Brinded.

Tanzania, where Ophir’s Cooper reckons exploration has lagged 18 months behind Mozambique, will be a focus of drilling this year. Ophir and its partner BG Group Plc (BG/) have so far found about 4 trillion cubic feet of gas in the East African country, where a per capita income of $1,400 ranks it 201st in the world, according to the Central Intelligence Agency’s fact book.

Ophir, which is buying Dominion Petroleum Ltd., will be joined by Mubadala Oil & Gas of Abu Dhabi to explore Block 7 in Tanzania. The company plans to import LNG to meet the Persian Gulf nation’s growing demand for gas.

“Strategically it’s an interesting point,” Cooper said. “It’s the first real evidence of Gulf entities picking up acreage with the intention of taking gas into the Gulf.”

Plans to Drill

Statoil ASA (STL), Norway’s largest oil company, plans to drill a well this year at an exploration block in Tanzania where it’s a partner with Exxon Mobil, CEO Helge Lund said. Statoil also has to drill at two exploration license areas in Mozambique before 2015. The “geographic location is almost perfect for LNG” shipments eastbound, Lund said.

Mozambique and Tanzania may eventually rival Qatar and Australia as the world’s biggest suppliers of LNG, Investec’s Joyner said. The East African deposits found so far are large enough to justify construction of at least eight LNG production trains, according to estimates by the companies. Today Qatar has 14 trains operating, while Australia has at least six trains producing and about $250 billion in projects under construction or planned.

Mambo Field

Eni, Italy’s largest producer, will invest $50 billion to develop the 20 trillion-cubic-feet Mambo field off Mozambique’s coast, CEO Paolo Scaroni said in December. “Our feeling is it would be a super-giant gas field and is well-placed to supply Asia by LNG,” he said.

Anadarko is examining the possible sale of at least some of its holdings in the Mozambique discoveries, Chuck Meloy, a senior vice president of worldwide operations, said last month. The Woodlands, Texas-based company holds 36.5 percent of Mozambique’s Area 1, which may yield as much as 30 trillion cubic feet of recoverable gas.

Cove, Anadarko’s partner in the Rovuma Basin, is looking to sell the whole company. Analysts at UBS AG said Jan. 6 that BP, Statoil and Total SA (FP) are among the likely buyers.

The gas industry development will spur local economies, field and supply services. For example, Irish oil and gas engineering company Kentz Corp. is already pitching its products to East African explorers in anticipation of an LNG construction boom.

“That’s a key opportunity,” Kentz CEO Hugh O’Donnell said, referring to discoveries in Mozambique. “We are making it known to the people that it involves, what we are doing in Mozambique right now.” - Source
Constantine MMX no está en línea   Reply With Quote
Old January 21st, 2012, 03:28 AM   #2
Constantine MMX
RETIRED
 
Constantine MMX's Avatar
 
Join Date: Sep 2010
Posts: 2,613
Likes (Received): 98

Constantine MMX no está en línea   Reply With Quote
Old January 21st, 2012, 03:39 AM   #3
Xusein
 
Xusein's Avatar
 
Join Date: Sep 2005
Location: Seattle
Posts: 26,176
Likes (Received): 10412

This is likely the tip of the iceberg as well. We've only discovered 1% of our potential resources.
Xusein no está en línea   Reply With Quote
Old January 21st, 2012, 03:41 AM   #4
Yoniii
Registered User
 
Yoniii's Avatar
 
Join Date: Sep 2009
Posts: 10,278
Likes (Received): 3071

$800 billion.

Wouldn't it be great if those countries united and formed their own energy company, instead letting the major players run away with the profits..

(don't judge me for dreaming)

East Africa
Yoniii no está en línea   Reply With Quote
Old January 21st, 2012, 03:45 AM   #5
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,582
Likes (Received): 1567



We are doomed.
__________________
“ Dream About What The Devil Says You Can’t Have! ” Creflo Dollar $$
mwanamwiwa está en línea ahora   Reply With Quote
Old January 21st, 2012, 03:45 AM   #6
Yoniii
Registered User
 
Yoniii's Avatar
 
Join Date: Sep 2009
Posts: 10,278
Likes (Received): 3071

Quote:
Originally Posted by mwanamwiwa View Post


We are doomed.
??
Yoniii no está en línea   Reply With Quote
Old January 21st, 2012, 03:46 AM   #7
abesha
BANNED
 
abesha's Avatar
 
Join Date: May 2006
Location: Behind you
Posts: 16,862
Likes (Received): 531

20tln or 50tln? That's amazing!!
abesha no está en línea   Reply With Quote
Old January 21st, 2012, 03:47 AM   #8
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,582
Likes (Received): 1567

Quote:
Originally Posted by Yoniii View Post
$800 billion.

Wouldn't it be great if those countries united and formed their own energy company, instead letting the major players run away with the profits and war for our people..

(don't judge me for dreaming)

East Africa
It wont happen,or it will be difficult and slow to formulate.We are doomed!
__________________
“ Dream About What The Devil Says You Can’t Have! ” Creflo Dollar $$
mwanamwiwa está en línea ahora   Reply With Quote
Old January 21st, 2012, 03:49 AM   #9
Yoniii
Registered User
 
Yoniii's Avatar
 
Join Date: Sep 2009
Posts: 10,278
Likes (Received): 3071

Quote:
Originally Posted by mwanamwiwa View Post
It wont happen,or it will be difficult and slow to formuate.We are doomed!
Why do you keep saying that we are doomed?

Edit: I just saw your reply. War with who? Mozambique and Tanzania are relatively stable, this positive, it calls for a celebration. Where's the cigars at?
Yoniii no está en línea   Reply With Quote
Old January 21st, 2012, 03:50 AM   #10
Constantine MMX
RETIRED
 
Constantine MMX's Avatar
 
Join Date: Sep 2010
Posts: 2,613
Likes (Received): 98

Quote:
Originally Posted by mwanamwiwa View Post


We are doomed.
I'm not certain what to feel about this. I admire countries that rose to the top through sheer engineering and creativity, like South Korea, but at the same time I think our region needs a significant boost to atleast surpass the middle-income threshold. It would also make us less dependent on "aid donors".
Constantine MMX no está en línea   Reply With Quote
Old January 21st, 2012, 03:50 AM   #11
abesha
BANNED
 
abesha's Avatar
 
Join Date: May 2006
Location: Behind you
Posts: 16,862
Likes (Received): 531

Look at the difference in the scale of exploration! 500 wells in East Africa, compared to 33000 continent-wide No wonder we think we're resource-poor! Especially the HOA. I bet even out of the 500 wells in the East Africa region, at least 450 were outside the Horn.
abesha no está en línea   Reply With Quote
Old January 21st, 2012, 03:54 AM   #12
Yoniii
Registered User
 
Yoniii's Avatar
 
Join Date: Sep 2009
Posts: 10,278
Likes (Received): 3071

Quote:
Originally Posted by abesha View Post
Look at the difference in the scale of exploration! 500 wells in East Africa, compared to 33000 continent-wide No wonder we think we're resource-poor! Especially the HOA. I bet even out of the 500 wells in the East Africa region, at least 450 were outside the Horn.
There's no secret that East Africa, especially the Horn, is the least explored land on earth. It's a good thing, we get a chance to diversify our economy before falling into an "oil/energy trap".
Yoniii no está en línea   Reply With Quote
Old January 21st, 2012, 03:58 AM   #13
abesha
BANNED
 
abesha's Avatar
 
Join Date: May 2006
Location: Behind you
Posts: 16,862
Likes (Received): 531

It is a good thing, but still, the potential positive impact it could have cannot be downplayed. I'm ambivalent.
abesha no está en línea   Reply With Quote
Old January 21st, 2012, 03:59 AM   #14
BUTEMBO21
Mutu ya Chuma.
 
BUTEMBO21's Avatar
 
Join Date: May 2008
Location: Under the Sun and the Moon
Posts: 43,997
Likes (Received): 5944

Quote:
Originally Posted by mwanamwiwa View Post


We are doomed.
I told you look well.
BUTEMBO21 está en línea ahora   Reply With Quote
Old January 21st, 2012, 04:01 AM   #15
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,582
Likes (Received): 1567

Quote:
Originally Posted by Yoniii View Post
Why do you keep saying that we are doomed?

Edit: I just saw your reply. War with who? Mozambique and Tanzania are relatively stable, this positive, it calls for a celebration. Where's the cigars at?
What about the rest?The corruption,dictatorships,rebels etc should be dealt with first before any drilling commences.The gas doesnt loose value by staying underground for future generations in a (hopefully)more politically and socially mature East Africa.
__________________
“ Dream About What The Devil Says You Can’t Have! ” Creflo Dollar $$
mwanamwiwa está en línea ahora   Reply With Quote
Old January 21st, 2012, 04:02 AM   #16
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,582
Likes (Received): 1567

Quote:
Originally Posted by Yoniii View Post
There's no secret that East Africa, especially the Horn, is the least explored land on earth. It's a good thing, we get a chance to diversify our economy before falling into an "oil/energy trap".
Precisely.
__________________
“ Dream About What The Devil Says You Can’t Have! ” Creflo Dollar $$
mwanamwiwa está en línea ahora   Reply With Quote
Old January 21st, 2012, 04:09 AM   #17
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,582
Likes (Received): 1567

Quote:
Originally Posted by Constantine MMX View Post
I'm not certain what to feel about this. I admire countries that rose to the top through sheer engineering and creativity, like South Korea, but at the same time I think our region needs a significant boost to atleast surpass the middle-income threshold. It would also make us less dependent on "aid donors".
I dont disagree but a foundation;cohesion is more important otherwise it may all be of naught.
__________________
“ Dream About What The Devil Says You Can’t Have! ” Creflo Dollar $$
mwanamwiwa está en línea ahora   Reply With Quote
Old January 21st, 2012, 04:17 AM   #18
ja'far
Registered User
 
ja'far's Avatar
 
Join Date: Sep 2009
Posts: 1,811
Likes (Received): 50

Quote:
Originally Posted by mwanamwiwa View Post


We are doomed.
Where is Alamo? He needs to move back soon, because this news is hard to resist.
ja'far no está en línea   Reply With Quote
Old January 21st, 2012, 04:21 AM   #19
Constantine MMX
RETIRED
 
Constantine MMX's Avatar
 
Join Date: Sep 2010
Posts: 2,613
Likes (Received): 98

Quote:
Originally Posted by mwanamwiwa View Post
I dont disagree but a foundation;cohesion is more important otherwise it may all be of naught.
Well, look at Iraq, an unstable country but its oil-wealth has made the impact of a prolonged war less devastating than it would have been had it been a resource poor country. It enjoys a higher GDP per capita than any country in our region, it has a high literacy rate and its independently funding major construction and reconstruction projects, so in many ways Iraqis can count themselves lucky that their leaders in the 30s began exploring their natural resources for its benefitting them greatly today.
Constantine MMX no está en línea   Reply With Quote
Old January 21st, 2012, 04:25 AM   #20
Carver02
Mister One Million
 
Carver02's Avatar
 
Join Date: Jan 2007
Location: Chicago/Addis
Posts: 5,459
Likes (Received): 727

Quote:
Originally Posted by Yoniii View Post
$800 billion.

Wouldn't it be great if those countries united and formed their own energy company, instead letting the major players run away with the profits..

(don't judge me for dreaming)

East Africa
The countries can demand equity in all these projects and use joint ventures with the oil companies.
__________________
Chagua Amani
Unity and Faith, Peace and Progress
Carver02 no está en línea   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 01:06 AM. • styleid: 14


Powered by vBulletin® Version 3.8.11 Beta 4
Copyright ©2000 - 2018, vBulletin Solutions Inc.
Feedback Buttons provided by Advanced Post Thanks / Like (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2018 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

tech management by Sysprosium