Hydrocarbons and metalic and non metalloc minerals exploration and discoveries

[Geza Ulole]

Here should be any news on exploration, discoveries, mining and other developments of all liquid (gas, oil), metallic and non metallic minerals in Tanzania

[Geza Ulole]

Ophir Energy kicks off Tanzanian drilling
By Darshini Shah | Tue, 03/01/2012 - 11:13

Ophir Energy (OPHR) kicked off 2012 with a start to its drilling programme in Tanzania, with plans to drill "at least nine wells" across its whole portfolio during the year.

Drilling will commence with the Jodari-1 and Mzia-1 (previously named 1W) wells, both located in Block 1. The company said that "for efficiency reasons", the Mzia-1 top hole section will be drilled first, before moving to Jodari-1. After Jodari-1 has been completely drilled, the bottom portion of Mzia-1 will be worked on.

The Mzia-1 well spudded in 1,500 metres of water on 1 January 2012, with drilling of the top hole section expected to take seven to 10 days. The Jodari-1 well will spud in a water depth of 1,155 metres and drill to total depth of about 4,600 metres subsea in an estimated 40 days.

"Jodari is modelled by Ophir to contain mean resources of 2.2 trillion cubic feet in the stacked targets," the company said in a statement.

Ophir currently holds 40% of Blocks 1, 3 and 4 in Tanzania, with the remaining 60% owned by BG Group (BG.), which has full operatorship.

Other assets

Tanzania is also home to Ophir's East Pande 3D seismic programme, which commenced mobilisation on 30 December. The 2,200 square kilometre 3D seismic programme, in which Ophir holds 70% of the East Pande licence, is expected to take 40 days to complete and is designed to mature prospects for possible drilling late in 2012.

With regard to the Equatorial Guinea rig contract, Ophir expects to "imminently" conclude negotiations to secure a rig for a three to four-well drilling programme in the extended Block R, in which Ophir holds an 80% interest. The programme is expected to start in late March and is estimated to take approximately 60 days.

Last but not least, the Mbeli and Ntsina 3D seismic programme in Gabon, in which Ophir holds 50%, commenced mobilisation on 26 December. The 2,100 square kilometre 3D seismic programme is expected to take 42 days to complete.

Looking for more on the oil explorer? Find out what David Buik said about Ophir in his stock picks for 2012.
http://www.iii.co.uk/articles/22532/...anian-drilling

[Geza Ulole]

Poorest Nation Hosts Biggest Gas Finds in Sign of Deals: Energy

By Eduard Gismatullin - Jan 16, 2012 1:25 PM GMT+0100

Jan. 17 (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. Lara Setrakian reports from Dubai on Bloomberg Television's "Countdown." (Source: 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.”

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
http://www.bloomberg.com/news/2012-0...ls-energy.html

[Uhuru na Umoja]

Originally Posted by Geza Ulole

Poorest Nation Hosts Biggest Gas Finds in Sign of Deals: Energy

great news!

[bantugbro]

Originally Posted by Geza Ulole

Poorest Nation Hosts Biggest Gas Finds in Sign of Deals: Energy

By Eduard Gismatullin - Jan 16, 2012 1:25 PM GMT+0100


....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;;;;

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
http://www.bloomberg.com/news/2012-0...ls-energy.html

[Geza Ulole]

Friday, January 20, 2012 5:35 PM EST
Could Tanzania Be The Next Rare Earths Frontier?

By Esther Tanquintic-Misa

Eastern African nation Tanzania could well perhaps be the next frontier of rare earth elements as it waits on the formal announcement of a mining exploration firm currently operating on the Ngualla Rare Earth Project in the southern part of the country.

Australian miner Peak Resources had reported earlier exploration results showed the Ngualla Rare Earth Project continues to prove itself as one of the largest and better grade new rare earth discoveries made recently. The project is now at a crucial stage since the maiden JORC compliant rare earth resource has been scheduled for completion in March 2012. This means Peak Resources could announce a major discovery by the end of this year's first quarter.

The Ngualla Rare Earth Project in southern Tanzania, a virgin discovery by Peak Resources, completed its first holes completed in June 2010. Australian miner Peak Resources has rapidly advanced the project, completing on end November 2011 a 19,046 metre resource drilling programme.

"Peak Resources has received further assays from recent drilling at the Ngualla Rare Earth Project, which show broad intersections of rare earth oxides (REO) including 100 metres at 3.65 per cent from surface including 66 metres at 4.39 per cent," the company had said in a statement.

Further results continue to show that the extensive Rare Earth Oxide niobium-tantalum and phosphate from the Ngualla Project are one of the largest and better grade discoveries made recently. It was discovered its mineralization is found from the surface and extends over a large area, from north to south, giving the entire project a huge potential, as well as billions to Tanzania's coffers.

Known for its wildlife, beaches, lodges, and islands, Tanzania is recognized as one of the world's poorest economies in terms of per capita income. But because of strong gold production and tourism, its average gross domestic product (GDP) growth per year from 2000 to 2008 registered at 7 per cent, according to the factbook of the US Central Intelligence Agency. Tanzania's economy relies heavily on agriculture, comprising more than 40 per cent of GDP, provides 85 per cent of exports, and employs 80 per cent of the work force. GDP growth during 2009-10 registered at 6 per cent per annum due to high gold prices and increased production.

Peak Resources said the mineralisation at the Ngualla Rare Earth Project is similar to Lynas Corporation's Mt Weld project in Western Australia, a rare earth enrichment contained in the deeply weathered regolith profile of a large carbonatite.
http://au.ibtimes.com/art/services/p...ticleid=284816

[Geza Ulole]

Gas pipeline project to Mombasa halted

By SEBASTIAN MRINDOKO, 25th May 2011 @ 12:00, Total Comments: 1, Hits: 2556

THE government has halted a planned natural gas pipeline project from Mnazi Bay through Dar es Salaam to Mombasa, Kenya.

This was said in Dar es Salaam on Wednesday by the Assistant Commissioner for Energy in the Ministry of Energy and Minerals, Mr Theophilo Bwakea, in a breakfast meeting organised by the Tanzania Private Sector Foundation (TPSF) that discussed ways to stop persistent power blackouts.

He said that the domestic natural gas needs are high and that there was no logic to start exporting without meeting the local demand first”, he said. Natural gas is a key component in fertilizer making and electricity power generation.

There has been a heated debate among stakeholders on whether to sell natural gas to Kenya and other neighbouring countries or sell electricity after generation, but finally, the government opted for the latter, he observed.

Instead, he said the government would focus on generating electricity to cover the present period which is costing the economy dearly. He said the project would be owned by the government by 100 per cent to provide room for decisions which consider national interest particularly when fixing price.

“It is also an opportunity to giving Tanzanians ownership of the project,” he added.

He said the private sector would be involved only in some aspects during the execution of the project but the government would remain the main player.

Chairman for the Parliamentary Committee on Minerals and Energy, Mr January Makamba, proposed to the government to scrutinize the issue regarding investments on natural gas, spotting out investors’ returns as well as benefits accrued for the wellbeing of the local communities.

“We should not end up giving sweet words to our people which do not reflect the situation on the ground. People want to see tangible benefits of having natural gas shared to the whole nation, particularly generating reliable power,” he said.

The 600-kilometre pipeline from Dar es Salaam through Tanga to Mombasa was to carry natural gas from the Songo Songo Island and from the Mnazi Bay gas fields in southern Tanzania near the border with Mozambique.

He added that despite some preliminary engineering studies being undertaken for the natural gas pipeline project, the option at the moment is to meet the local needs.

Canada’s Orca has undertaken some preliminary engineering studies for the construction of the pipeline to Mombasa, which is likely to run along the coast — north to Mombasa and south to Mtwara to link up with the Mnazi Bay gas project.
http://dailynews.co.tz/business/?n=20149

[Geza Ulole]

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Tanzania May Become ‘Major’ Gas Producer by Decade-End, IMF Says
By Sarah McGregor - Jan 21, 2012

Tanzania will see increased investment in gas exploration over the next five years, and the industry could become a major source of revenue for the East Africa nation by 2020, the International Monetary Fund said.

“Tanzania’s prospects of becoming a major producer of natural gas by the end of the decade appear good,” the Washington-based lender said in an e-mailed statement late yesterday. “There could be large foreign direct investment inflows over the next five years and a substantial increase in exports and government revenue beginning around 2020.”

The country has two gas deposits in commercial production. Songo Songo holds 1.5 trillion cubic feet of gas, while Mnazi Bay, near the border with Mozambique, has 2 trillion cubic feet, the state-run Tanzania Petroleum Development Corp. said in October 2010.

Changes to some of the country’s policies are planned by the government to ensure the expected increase in gas revenues will support the economy, the IMF said.

“Successfully managing this future gas wealth will be critical,” it said.

To contact the reporter on this story: Sarah McGregor in Nairobi at smcgregor5@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net
http://www.bloomberg.com/news/print/...-imf-says.html

[Geza Ulole]

[Geza Ulole]

[Geza Ulole]

Expansion of fuel handling system begins at Dar port Send to a friend
Thursday, 26 January 2012 22:38
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By Mkinga Mkinga
The Citizen Reporter
Dar es Salaam. The Tanzania Ports Authority (TPA) has embarked on an extensive expansion of the oil handling infrastructure at the Dar Port aimed at coping with the recently introduced bulk fuel procurement system.
The project, pegged at $70 million, will see the replacement of the old crude oil discharging terminal with a new dual pipeline single point mooring.

The project is implemented at the south east of the Dar es Salaam harbour entrance channel and comprises the development, pre-commissioning and delivery of an offshore terminal for import of crude oil and white products capable of mooring tankers in the range of 40,000 to 150,000 tonnes. The project would also involve the construction of a 3.6km offshore pipeline as well as 4.3km onshore pipeline for white products and crude oil, respectively, an initiative aimed at increasing efficiency at the port which serves the landlocked countries.

The construction is undertaken by M/S Leighton Offshore Pte, a company from Singapore.
TPA would spend a total of $70 million for the project. Out of the amount, $60 million has been sourced as loan from CRDB Bank, while the rest has been mobilised by TPA from own sources.

A barge with equipment for the installation of the pipes has already docked at the Dar es Salaam Port. The initial project for the onshore activities has been completed where the pipes have been directed to the Tanzania Petroleum Refinery Ltd, while the task ahead is to install the pipes offshore.

Speaking to reporters in Dar es Salaam yesterday, port manager Cassian Ng’amilo, said the new installation would enable the offloading of about 150,000 tonnes of fuel in 20 hours compared to the current capacity of unloading 40,000 tonnes in four to five days.

Mr Ng’amilo said there would be two pipes, one of about 28 inches for crude oil and the other with 24 inches diameter for white products (petrol, diesel, kerosene and JetA1).

The crude oil pipe would be directed to the Tanzania Zambia Oil Pipeline (Tazama), while the other will be directed to custody transfer tanks which would be built near Kurasini close to the dock yard.

Commenting on the merits of the project, Mr Ng’amilo said ships would be offloading within a short period, giving an example of 3,500 cubic metres of crude oil that would be offloaded within an hour while, ship with white products will be discharging 2,500 cubic metres per hour.

“This project would ease ship congestion at the Dar es Salaam port pending the offloading of fuel cargo through the Kurasini Oil Jet (KOJ), it would help oil marketers to order fuel using huge ships compared to the current ones,” the port manager said

In his comments, Leighton Offshore general manager for operations, Mr Eilert Halvorsen, said it was an important project for the Tanzania economy and neighbouring countries which depends on the Dar es Salaam port.

Mr Halvorsen said the whole crew for Single Point Mooring (SPM) has arrived in Dar es Salaam and ready for work as agreed in the contract. “I think it will take two months to set up everything right…. a key challenge to the installation of pipeline will be trenching through intertidal zone and crossing the reef at approximately 2 km away from the beach,” he said.
http://www.thecitizen.co.tz/news/4-n...ns-at-dar-port

[bantugbro]

Wonderfull news...above

[kiligoland]

Originally Posted by bantugbro

Wonderfull news...above

indeed

[kiligoland]

Originally Posted by Geza Ulole

Expansion of fuel handling system begins at Dar port [/url]

FAIDA ZA MRADI HUU
1. Meli zitakuwa zinapakuliwa kwa muda mfupi. Kwa mfano, mafuta yasiyosafishwa (crude oil) yatapakuliwa kwa mita za ujazo wa 3,500 kwa saa, na mafuta yaliosafishwa yatapakuliwa kwa mita za ujazo wa 2,500 kwa saa. Meli yenye tani 150,000 ya mafuta yaliyosafishwa itapakuliwa SPM kwa muda wa masaa 75 (siku tatu), ukilinganisha na KOJ ambapo meli yenye ujazo wa Tani 40,000 unachukua siku 4 mpaka 5 ya kupakua.


2. Kupunguza msongamano wa meli kusubiri kupakua mafuta katika Gati ya mafuta ya Kurasini (KOJ).


3. Ujenzi wa mradi huu wa SPM utawezesha uagizaji wa mafuta kwa meli kubwa zaidi kuliko ilivyo sasa na utasaidia kupunguza gharama za usafirishaji wa mafuta.

[Geza Ulole]

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Shell to Write Off $200 Million on Tanzania Well, Bernstein Says
By Eduard Gismatullin and Sarah McGregor - Jan 31, 2012

Royal Dutch Shell Plc (RDSA), Europe’s largest oil company, will write off about $200 million because of an unsuccessful well off the coast of Tanzania, according to Sanford C. Bernstein & Co.

Shell bought 50 percent of Blocks 5 and 6 in Tanzania from Petroleo Brasileiro SA (PETR4) last year. The partners started the Zeta- 1 well in Block 5 in August. The well has now been plugged and abandoned, according to the website of the Tanzania Petroleum Development Corp.

“It was dry so they abandoned it,” said Halfani R. Halfani, director of exploration at the TPDC. “ We got valuable geological information which could be used for future exploration programs.”

Shell’s earnings from exploration and production for the fourth quarter will be “affected by a $200 million exploration write-off following a dry well offshore Tanzania,” Oswald Clint, a London-based analyst at Bernstein, wrote in a Jan. 30 report. Lucas Herrmann, a London-based analyst at Deutsche Bank AG, said the expected charge will be “larger than usual.”

Jonathan French, a spokesman for Shell, which releases earnings on Feb. 2, declined to comment.

Tanzania may have as much as 10 trillion cubic feet of gas reserves, Energy Minister William Ngeleja said in September. BG Group Plc (BG/) and Ophir Energy Plc (OPHR) are also exploring off the East African nation’s coast for oil and natural gas.

To contact the reporters on this story: Sarah McGregor in Nairobi at smcgregor5@bloomberg.net Eduard Gismatullin in London at egismatullin@bloomberg.net
http://www.bloomberg.com/news/print/...tein-says.html

[Geza Ulole]

Tanzania: Country to Reign in Natural Gas Production
By Abduel Elinaza, 30 January 2012
The Tanzanian government plans to build a pipeline to carry natural gas to Dar es Salaam. (Photo Courtesy Flickr/heipmann)

TANZANIA has good prospects of becoming a major producer of natural gas by the end of a decade, according to the International Monetary Fund (IMF).

But, the Bretton Woods institution has warned that successful management of the future gas wealth remains critical. Following the Executive Board's discussion on Tanzania, Deputy Managing Director and Acting Chair Naoyuki Shinohara stated: "There could be large foreign direct investment inflows over the next five years, and a substantial increase in exports and government revenue beginning around 2020.

"The authorities are appropriately planning to review over the coming year the macroeconomic policies and institutions that are needed to meet this challenge." The country has proven natural gas deposits of about seven trillion Cubic Feet (CF). It is estimated that Tanzania will confirm around 60 trillion CF of natural gas from the current seven trillion CF.

About 3.5 trillion CF of the reserves have already been commercialised with natural gas wells being drilled in Songo Songo and Mnazi Bay gas fields. Tanzania's gas reserves border those of Mozambique in the Ruvuma basin where commercial natural gas reserves of about 800billion US dollar (1,280trn/-) have been discovered by Eni SpA and Anadarko Petroleum Corp.

To prepare the economy for major gas investments, the government is drafting a natural gas master plan as well as a gas and petroleum revenue management Bill. The Bill will cover the budget treatment of gas revenue. Also the tax regime will be reviewed to ensure adequate cover for the gas sector. This will go hand in hand with development of staff expertise in the Tanzania Revenue Authority (TRA) on tax issues associated with the development and exploitation of gas.

The reports for huge gas deposits have drawn the interest of the world's largest oil and gas exploration companies such as BP, Petrobras, Statoil, Exxon Mobil and Shell. According to Bloomberg, a news wire firm, 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."

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 licence areas in Mozambique before 2015. The "geographic location is almost perfect for LNG" shipments eastbound, the Exxon Mobil CEO said.

Mozambique and Tanzania may eventually rival Qatar and Australia as the world's biggest suppliers of liquefied natural gas (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.
Tagged: Business, East Africa, Petroleum, Tanzania
http://allafrica.com/stories/printab...201301471.html

[Geza Ulole]

TANZANIA: Gas set to power Tanzania’s economy
Category: Business
Published on 30 January 2012 Hits: 195
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Tanzania Minister of FinanceDar es Salaam. The Tanzanian government must ensure that its citizens are fully involved in the gas and oil exploration, production and processing chain, to enable the country to reap maximum benefits from its huge fuel reserves.

That’s the advice that experts are floating, in the light of geological surveys and reports, which indicate that Tanzania is on the verge of discovering huge commercial gas reserves that would generate billions of dollars in Foreign Direct Investments (FDIs).

According to the minister for Finance and Economic Affairs Mustafa Mkulo, the inflow of FDIs into the country would boost government revenue and constitute the largest part of exports.

This, he said, would convert Tanzania into a “gas economy.” Strategies to prepare the economy to adapt to such huge investments have started, but experts stress that, local people should be duly tuned and given opportunities to participate fully in the preliminary phases of tapping the valuable resources for them to yield good returns.

They further advise that the gas sector should be linked appropriately to the rest of the economy; cautioning that, otherwise, its benefit to East Africa’s second largest economy would either be none or minimal.

Dr John Musyoka of the Arusha-based Training Centre for Development Co-operation says: “There is no point in just letting others do the exploration and development of our natural gas potential or any other natural resource.

“ Tanzania and other East African countries need to understand that we need local companies and expertise that can accomplish this with minimum support from outside.” Experts say the gas industry development will be a catalyst to the predominantly agriculture economy by stimulating other sectors such as supply services, and thus create job opportunities.

They have advised the government to be cautious from the very outset, to avoid blunders like the shoddy mining contracts that caused huge financial losses and bitterness in the past.

“It is high time we opened up new areas for revenue sources. However, we would like to see the government taking charge as a large player just like South Africa and Norway, whose economies are thriving smoothly on the strength of their natural resources,” Dr Razack Lokina, a lecturer at the University of Dar es Salaam, said.

The country has proven natural gas deposits of about 7 trillion cubic feet. It is estimated that Tanzania will confirm around 60 trillion cubic feet of natural gas from the current 7 trillion cf.

Tanzania is expected to receive FDI of around $7 billion from just one company, Ophir Energy, and its partners, British Gas.

Other multinational companies like Petrobras and a Norwegian Statoil are undertaking drilling programmes.
“Discussions on how to position the country to best take advantage of the huge natural gas potential have been initiated,” Mr Mkulo pointed out in a letter to IMF boss Christine Lagarde late last year.

To prepare the economy for major gas investments, the government is drafting a natural gas master plan as well as a gas and petroleum revenue management Bill. The Bill will cover the budget treatment of gas revenue.

The tax regime will also be reviewed to ensure adequate cover for the gas sector. This will go hand in hand with development of staff expertise in the Tanzania Revenue Authority (TRA) on tax issues associated with the development and exploitation of gas, Mr Mkulo said.

But experts emphasise that the government’s determination to transform the nation into a gas-driven economy must be preceded by institution of a legal framework and building institutional capacity.

“We have to swiftly make sure that we have reliable infrastructure, which includes the upgrading of our roads, railways, ports, airports, water and power…We also need to invest heavily in training as well as develop enough personnel along the reformed legal system,” said Dr Bitrina Diyamett, the Executive Director of the Africa Technology Policy Studies (ATPS-Tanzania).

About 3.5 trillion cubic feet of the reserves have already been commercialized with natural gas wells being drilled in Songo Songo and Mnazi Bay gas fields in Lindi and Mtwara regions, respectively.

Even if Tanzania cannot have adequate public and private financial and technological resources to do this alone, Dr Musyoka said, the country, and others in the region, must have regional entities that can help explore, exploit and develop the country’s natural resources sector, just like other regions of the world.

“We need to develop a way of bringing our business people and public resources together to have companies indigenous to East Africa doing this business. This is the only way we can guarantee employment and a constant stream of positive benefits to our people from our natural resources now and in the future,” he remarked.
http://www.eastafricanewspost.com/in...zanias-economy

[kiligoland]

PanAfrican Energy Tanzania commence new drilling project to double gas production capacity

http://issamichuzi.blogspot.com/2012...mence-new.html

PanAfrican Energy Tanzania Ltd. (PAT) has announced the start of drilling of a new gas production well (“SS-11”) on Songo Songo Island, marking a major milestone in its US$130m investment programme intended to eventually double gas production capacity from the Songo Songo gas field.




The Sakson PR5 rig is the most powerful land rig to currently operate in Tanzania and will be drilling a new well as part of PAT’s push to increase gas production capacity from 113 million standard cubic feet per day to well over 200 million standard cubic feet per day in the coming months.




With Tanzania’s power needs growing rapidly in line with the country’s economic development, PAT remains committed to playing its part to support the Government’s drive for increased energy supply and security, and to meeting the needs of the Tanzanian people.




“To start the year with the spudding of the Sakson PR5 rig is exciting and reflects the busy year that we have ahead of us. We’re looking forward to continuing to work with our partners to help meet Tanzania’s energy needs as we enter our eleventh year here in Tanzania,” said PAT General Manager, Andrew Brown. PAT is also planning the drilling of a US$35mn offshore well as part of the company’s US$130 million investment programme.


The powerful, 2,000hp Sakson PR-5 rig will drill to a depth of approximately 2,400 metres through the coming ten weeks. Well SS-11 will be the seventh well in the Songo Songo Field, which extends both onshore under Songo Songo Island and offshore to the west of the island in the Kilwa District, 185km south of Dar es Salaam.




PAT has played a key role with other stakeholders in the development of Tanzania’s gas industry since 2001. The company’s Production Sharing Agreement is in partnership with Tanzania Petroleum Development Corporation (TPDC) and PAT is the operator of the Songo Songo gas processing plant under contract to Songas. PAT supplies gas primarily for power generation to the Tanzania Electric Supply Company (TANESCO) and Songas, as well as 38 industrial customers.




The use of natural gas particularly for power generation has made a significant contribution to Tanzania’s economy, which is widely recognized to have saved over US$2 billion in other fuel costs to the country since commercial operations began in 2004.

[Geza Ulole]

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Statoil finds natural gas offshore Tanzania
Fri Feb 17, 2012 7:21am GMT

OSLO (Reuters) - Norwegian oil and gas firm Statoil has encountered indications of natural gas in a "good quality reservoir" in the Zafarani-1 well in Block 2 offshore Tanzania, it said on Friday.

The firm added that it was too early to give any indication on the size and commerciality of the find.

Statoil holds 65 percent of the bloc while ExxonMobil has the remaining 35 percent.

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[Geza Ulole]

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UPDATE 1-Statoil find adds to East Africa gas hopes
Fri Feb 17, 2012 8:58am GMT

* Staoil, Exxon find "good quality reservoir" in Tanzania

* Region quickly becoming major gas hub

OSLO Feb 17 (Reuters) - Norwegian oil and gas firm Statoil has found natural gas offshore Tanzania, marking the latest discovery which is rapidly making east Africa a key gas hub on the doorstep of Asia's fast growing markets.

Statoil said in a statement on Friday it and its partner Exxon Mobil found gas in a "good quality reservoir" in the Zafarani-1 well, a deepwater frontier area where no wells had been drilled before 2010, but added further evaluation was needed to assess the size of the find.

"East Africa will soon become a major gas hub if you look at all the big discoveries made in Mozambique, and the demand side also looks great considering how close India with its rapidly growing demand is," Magnus Smistad, an analysts at Fondsfinans said.

"It's a region where Statoil needs to be and its blocks in Mozambique are also very exciting," Smistad added.

Mozambique, the fastest growing energy player in the region, this month estimated that energy firms will spend $50 billion over the next decade to develop its liquefied natural gas (LNG) industry.

Just this week, Italy's Eni said it had made a new giant offshore gas discovery in Mozambique with a potential capacity of 212.5 billion cubic metres (bcm) while Anadarko Petroleum last month made a discovery in a Mozambique well it called its best so far in the region.

Tanzania has lagged its neighbour to the south but BG Group this month said appraisal work showed its new discoveries offshore Tanzania contained 3 trillion cubic feet of resources.

Hoping to cash in on the interest, Kenya has also marked out eight new offshore exploration blocks which it expects to list by end-February and its government said France's Total is negotiating for the rights to one of the blocks.

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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
http://af.reuters.com/article/tanzan...8DH0PE20120217