Hydrocarbons and metalic and non metalloc minerals exploration and discoveries

[mwinyi]

nimekuta mjadala Jamii Forums kuwa UAE kupitia Sovereign wealth fund yao walitaka kuinvest 20 billion Tanzania lakini wajuaji wamewatolea nje

sina hakika kama kuna ukweli kwenye habari hii lakini with bongo we cant rule out anything

[Geza Ulole]

Ophir Discovers Gas Offshore Tanzania
Posted on Aug 2nd, 2012 with tags Discovery, gas, Makes, News, Offshore, Ophir, Tanzania
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Ophir Energy announced that the Papa-1 well has made the first Cretaceous gas discovery outboard of the Rufiji Delta in Block 3, offshore Tanzania and is the sixth consecutive discovery by Ophir offshore Tanzania.
Papa-1 is located ca. 100km in Block 3, offshore Tanzania; 53km south east of the earlier Pweza-1 discovery. The well spudded on 29 May 2012 in 2186m of water and was drilled by the drillship “Deep Sea Metro 1″ to a total depth of 5544m subsea in 57 days.
Papa-1 represents the first exploration test of Upper Cretaceous Intraslope play outboard of the Rufiji Delta and the first well to be drilled in Block 3. The well was designed to evaluate sandstones of Campanian and Albian age within the structural Papa prospect. Papa-1 encountered an 89m gas bearing column in interbedded, Campanian sandstones. Ophir management’s preliminary analysis of the discovery suggests an in place resource of 0.5 – 2.0 TCF. Further detailed petrophysical and core analysis will commence shortly to calibrate the logging data and refine the in place and recoverable resource estimates.
The Papa discovery further de-risks the deeper, Upper Cretaceous Intraslope play in Tanzania. Additional resources have now been discovered in the Cretaceous stratigraphy outboard of both the Rovuma and Rufiji Deltas by the Mzia-1 and Papa-1 wells. An update of the in place and recoverable resource estimates from the Mzia and Papa discoveries on the new Cretaceous Intraslope play will follow the ongoing petrophysical analysis.
The BG-Ophir Joint Venture’s first four discoveries have successfully tested targets of Miocene, Oligocene and Paleocene age in the Tertiary Intraslope Play and are currently estimated to have discovered total recoverable resources of ca. 7 TCF (1167 MMBOE). The fifth discovery, Mzia, and the sixth discovery, Papa, both in the new Upper Cretaceous Intraslope Play are expected to add considerable additional recoverable resource to this total.
The Deep Sea Metro 1 drillship will now be sub-let to Apache for a single well in Block L8, Kenya, adjacent to Ophir’s Block L9 (60%), before returning to continue operations with the Ophir-BG Joint Venture in Tanzania. The Joint Venture will recommence drilling in Block 1, Tanzania in October 2012. Next in the sequence will be two step-out exploration and appraisal wells around the 3.4 TCF (567 MMBOE) Jodari discovery for a potential hub for the LNG development in Block 1.
Nick Cooper, CEO of Ophir said:
“Papa-1 was the sixth well, and sixth consecutive discovery, for the Ophir-BG Joint Venture offshore Tanzania. The Papa discovery reaffirms the potential repeatability of the Intraslope Play and ability to aggregate substantial gas volumes across Blocks 1,3,4.
“The two most recent wells in Tanzania were designed to test the deeper-lying prospectivity of the Cretaceous Intraslope play. The Mzia-1 success in May 2012 confirmed for the first time the prospectivity in the Upper Cretaceous sequences outboard of the Rovuma Delta. The Papa-1 success now confirms similar Upper Cretaceous prospectivity outboard of the Rufiji Delta and represents the first discovery in Block 3. While recoverable resources are likely to be lower than pre-drill estimates, this very encouraging discovery is expected to lead to substantial additional resources from this new Upper Cretaceous play.
“The next drilling on Blocks 1,3,4 will focus on adding further resource around the Jodari discovery to form a potential hub for the LNG development.
“Separately, Ophir has received preliminary products from the recently recorded Block 1 3D seismic survey that is targeting the Rovuma Delta Basin Floor Fan play. Interpretation work is commencing to determine whether the area contains features potentially comparable to those discovered in the adjacent play offshore Mozambique.
“Ophir has transformed its resource base with the four discoveries across our assets in the first half of 2012. We anticipate two further well results from Equatorial Guinea by early September.”
http://www.lngworldnews.com/ophir-di...hore-tanzania/

[Geza Ulole]

British Gas Gets 100 Per Cent Success Rate in Tanzania Gas Exploration

MONDAY, 16 JULY 2012 00:00
During a recent visit to the British Gas headquarters in the UK, Tanzania’s President Jakaya Kikwete met with the Chief Executive Officer, Sir Frank Chapman, who explained that the group has so far achieved a 100 per cent success rate in this virgin Tanzania exploration basin and that it was extremely encouraging.

The CEO added that much work remains to be done to explore the further potential of the acreage and study development and export schemes and that BG look forward to working with the government as the country makes transition to a new major natural gas producer and exporter.

BG Group is a world leader in natural gas, active in more than 25 countries; its subsidiary, British Gas International (BGI), first entered the Tanzania market last year, buying 60 percent of the shares of Ophir Tanzania Limited and thereby acquiring their contract between the government of Tanzania and the Tanzania Petroleum Development Corporation (TPDC) for exploration of gas in the Indian Ocean.

The group announced earlier this year that it intends to invest USD 500 million in Tanzania gas exploration this year alone, with the intention of investing between USD 10 billion and USD 20 billion in the second half of this decade.

Accordingly the government of Tanzania is preparing the country’s economy for a significant increase in the country’s foreign investment inflow following the recent discoveries of natural offshore Tanzania gas deposits.

According to a number of experts, and as reported by East African Business Week, within the next five years Tanzania is expected to confirm the presence of nearly 60 trillion cubic feet of natural gas thereby opening the country up to massive amounts of investment dollars.
http://www.tanzaniainvest.com/tanzan...as-exploration

[Geza Ulole]

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Africa Gas Rush Imperils $100 Billion in Australian LNG
By Eduard Gismatullin and James Paton - Aug 30, 2012
The discovery along Africa’s east coast of the world’s biggest gas finds in a decade threatens to undo investment plans on the other side of the Indian Ocean.

Royal Dutch Shell Plc (RDSA), BG Group Plc (BG/) of the U.K. and France’s Total SA (FP) may scale back projects to build liquefied natural gas export plants in Australia and switch to Tanzania and Mozambique, where the new prospects lie and will cost about half as much, according to Jefferies International Ltd.

The LNG boom in Australia, where $180 billion of planned investment was set to make gas the country’s fastest-growing export over the next five years, risks losing strength as labor and material shortages force up building costs. As energy companies consider the next $100 billion of projects, a switch to East Africa would hold back Australia’s market share in China and India, where energy consumption is forecast to rise more than 60 percent by 2030.

“Because of the volume that’s been discovered in East Africa, the economics look to be able to challenge Australian LNG projects, given the cost inflation they have experienced,” said Peter Hutton, an RBC Capital Markets analyst in London. “All companies will have that on their radar.”

The Asian market for LNG, gas that’s chilled to a liquid for shipment by tanker, accounts for about two-thirds of global demand and will grow by 6 percent a year this decade, according to Sanford C. Bernstein & Co. Among six Australian projects scheduled to reach investment decisions in 2013, few will be approved because of climbing costs, Neil Beveridge, a Hong Kong- based analyst at Bernstein, said in a report this month.

‘Real Competition’

“There is real competition in the 2020 time frame,” said David Knox, the chief executive officer at Santos Ltd. (STO), which is developing Australia’s $18.5 billion Gladstone LNG venture together with Total, Petroliam Nasional Bhd. and Korea Gas Corp. “But we can compete, provided we keep our productivity up, our cost base under reasonable control and we can unlock the resources.”

Dale Nijoka, an analyst at Ernst & Young LLP, said this month in a report that LNG from East Africa “could become more competitive than unsanctioned Australian LNG projects, causing them to be delayed, re-worked or possibly canceled” over the long term.

One such Australian project is a third processing plant, or train, at BG’s Curtis Island project. Reading, England-based BG said in May that spending on the first two trains would rise 36 percent to about $20 billion because of higher costs and a more expensive Australian dollar. BG is considering investing in East Africa’s first LNG project in Tanzania.

Tanzania LNG

“The ability for Tanzania to compete for capital in BG’s portfolio is growing,” said Theepan Jothilingam, an oil analyst at Nomura Holdings Inc. It can “prioritize Tanzania LNG” over expansion of its venture on Queensland’s Curtis Island.

Kim Blomley, a spokesman at BG, declined to comment on payments to East African nations for the fuel, saying that the company is “only in the exploratory phase right now” and “it’s a little early to say any more.”

Explorers in Tanzania and Mozambique may build at least two trains in each country with combined costs of about $32 billion and ship the first LNG as soon as 2018, according to Jefferies. The cost per unit of capacity will be about 44 percent lower in Tanzania than at Pluto LNG in Australia, the most expensive plant built, the bank said. Mozambique, ranked 213 of 227 countries for per capita income, may be even cheaper.

Woodside Petroleum Ltd. (WPL), operator of the Pluto project in Western Australia, acknowledged that East Africa is an “extraordinary gas province.”

Anadarko Talks

Still, “as I look at East Africa, I look at the maturity of oil and gas regulations, the lack of infrastructure, and my view is some of those projects probably won’t come on as quickly as people think they will,” Woodside Chief Executive Officer Peter Coleman said in an Aug. 23 interview in Sydney.

Shell and Total have been in talks with Anadarko Petroleum Corp. (APC) and Eni SpA (ENI) about buying into gas fields discovered off Mozambique with more than 100 trillion cubic feet (2.8 trillion cubic meters) of gas resources, enough to meet Asian demand for almost five years.

There are still 95 trillion cubic feet of gas reserves yet to be discovered in Mozambique and Tanzania, Wood Mackenzie Ltd. said Aug. 22. “There is clearly plenty of gas to supply the likely commercialization route of LNG -- theoretically enough to support up to 16 LNG trains.”

There will be risks to developing LNG projects in East Africa, where there’s no history of large-scale oil and gas production and roads and airports are often relatively poor.

Regulatory ‘Gaps’

“East Africa’s regulatory and infrastructure gaps could hinder the transition from gas exploration to production in the medium term,” said Clare Allenson and Anne Fruhauf, analysts at Eurasia Group in London. “Now that investors are confident of the existence of commercial natural gas reserves in the region, the focus will shift to the evolving operating environment.”

For some smaller investors involved in the gas fields, financing their share “will certainly prove challenging and could delay development,” said Giles Farrer, an LNG analyst at Woodmac.

BG is developing plans for an LNG project in Tanzania after discovering about 7 trillion cubic feet of gas together with partner Ophir Energy Plc. At the same time, it’s trying to find a partner for Curtis Island to cut Australian costs.

Tanzanian LNG

“While it’s going very well in Tanzania, when the result of six in a row discoveries are very encouraging, we are not in the place to take discussions further” on the LNG project, said Neil Burrows, a spokesman for BG. He declined to comment on whether BG would opt to develop Tanzania LNG before making an investment decision for the third train in Queensland.

Kentz Corp. (KENZ), an Irish oil and gas engineering company working on the BG project, said awarding activity hasn’t declined “significantly” in Australia.

Contractors “just have to wait and see” if it slows down, Edward Power, the chief financial officer at Kentz, said today in a phone interview. “You often see some level of delay, but we are not seeing any slowdown of project coming out today,” where Kentz is involved.

Australia’s LNG industry faces a shortage of skilled workers and has to pay higher wages in the world’s fastest growing developed economy. The strong Australian dollar has also boosted costs for the developments in U.S. dollar terms after the currency rose 23 percent since 2008.

Competition for Australia

“East Africa has got potential to be a bigger LNG supplier than for example Australia or Qatar on a much lower cost base,” said Barry Rushworth, the CEO at Australia’s Pancontinental Oil & Gas NL, which is drilling now a well off Kenya. “People are just not actually realizing how much potential East Africa has yet.”

Planned North American exports are set to add to the competition for Australia after a boom in production from shale reduced U.S. natural gas prices to a 10-year low. Shell has already started talks with Freeport LNG Development LP in Texas, which is aiming to become the second venture to win U.S. approval to export the fuel from the Gulf of Mexico coast after Cheniere Energy Inc.

$30 Billion Shell Investment

Shell, which plans to invest $30 billion in Australia over the next five years, is looking at opportunities in Africa. The Hague-based company has drilled in Tanzania and last month dropped its $1.8 billion bid for Cove Energy Plc, a U.K. explorer with assets in Mozambique, because Thailand’s state oil company made a higher offer. The decisions to walk away was described by the Anglo-Dutch company’s CEO Peter Voser as an “example of capital discipline.”

“The bid for Cove highlighted the potential need to rotate exposure from Australian LNG projects to the new East Africa frontier,” RBC’s Hutton said. “We believe Shell was right to withdraw, but the shift in portfolio still needs to be addressed.”

Shell spokesman Jonathan French referred Bloomberg News to Voser’s comments made July 26 when the CEO described East Africa as “an interesting province” and “a big resource.”

$34 Billion Ichthys Project

Total, based in Paris, has increased its stake in the $34 billion Ichthys LNG project in northern Australia, where costs may beat Pluto’s record, according to the Australian Bureau of Resources and Energy Economics.

The French company CEO Christophe De Margerie plans to expand in East Africa after joining a $10 billion oil project in Uganda. In June, Total secured the latest permit to explore for oil and gas off Kenya.

“East Africa is a strategic oil and gas province for Total, where the group seeks to build a stronger presence and currently pursues exploration activities,” said Anastasia Zhivulina, a spokeswoman at the company.

To contact the reporters on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net; James Paton in Sydney at jpaton4@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
http://www.bloomberg.com/news/print/...alian-lng.html

[Geza Ulole]

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Tanzania to Levy Capital Gains Tax on Proposed Barrick Sale
By David Malingha Doya - Aug 30, 2012
Tanzania’s revenue authority said it will require Barrick Gold Corp. (ABX) to pay a 20 percent tax on any capital gain resulting from its proposed sale of African Barrick Gold Plc (ABG) to China National Gold Group Corp.

“As the tax authority, we are keenly following the developments,” Harry Kitilya, commissioner general of the Tanzania Revenue Authority, said in an interview on Aug. 23 in Dar es Salaam, the country’s commercial capital. “At an appropriate time, we shall require African Barrick to submit all the details of the transaction to determine the amount of capital gains to be paid.”

Barrick, the world’s biggest producer of the metal, said Aug. 16 it’s in talks with the state-owned Chinese company about its 73.9 percent stake in African Barrick, the largest gold miner in Tanzania. U.K. takeover and merger regulations restrict London-listed Barrick from making any comment, Andy Lloyd, the company’s spokesman, said in an e-mailed response to questions yesterday.

Tanzanian lawmakers on Aug. 23 amended the country’s Income Tax Act to include the sale of shares and securities among items on which a capital gains tax can be imposed. Previously, the tax was levied on land and buildings at a rate of 10 percent for residents and 20 percent for non-residents.

Laws Amended

The East African nation’s government is currently in court seeking $196 million in capital gains tax following Moscow-based ARMZ Uranium Holding Co.’s acquisition last year of Perth, Australia-based Mantra Resources Ltd., whose Tanzanian unit owns the Mkuju River uranium project. The tax was imposed based on the fact the mine is sited on land in Tanzania, according to the revenue authority.

Tanzania changed the tax laws to include gains made from selling shares or securities in a local company “to counteract the current tax avoidance practice of selling local companies through overseas holding companies,” according to the Finance Act 2012, signed by Finance Minister William Mgimwa on June 13.

African Barrick, whose shares trade on the Dar es Salaam Stock Exchange, has its primary listing on the London Stock Exchange. Barrick, its parent company, is based in Toronto.

Tanzania, which vies with Mali to be Africa’s third-biggest producer of gold after South Africa and Ghana, is seeking to benefit more from its resources. Mines Minister Sospeter Muhongo has urged companies to target breaking even in at most five years and then start paying tax.

‘Government Interests’

Lloyd referred a question about why Barrick may withdraw from Tanzania to the company’s Aug. 16 statement.

“Barrick has adopted a renewed focus on maximizing shareholder value through a disciplined capital allocation program which includes optimizing Barrick’s portfolio of assets and maximizing returns on investment and free cash flow,” the company said. “The preliminary discussions relating to ABG form part of this program.”

Ally Samaje, the acting mines commissioner in the Mines Ministry, said the government’s consent for any takeover by China National would hinge on whether the tax is paid.

“The discussions are still at a preliminary stage, but we shall ensure that government interests are protected, and that government gets what it is supposed to get from the deal,” he said by phone from Dar es Salaam today. “The good thing is that the law has now been amended to clearly state shares too.”

Taxes Paid

Tanzania’s registrar of titles or companies will only allow a transfer upon notice of payment of the tax, or that no tax is to be paid, according to the Income Act.

African Barrick has paid taxes and royalties of 256 billion Tanzanian shillings ($163 million) from its Bulyanhulu mine between 1998 and 2011, according to information from the Mines Ministry. The company has paid 18 billion shillings from Buzwagi, 125.6 billion shillings from North Mara and 105 billion shillings from Tulawaka over the same period, the information shows.

Barrick shares fell 1.7 percent to C$37.08 in Toronto yesterday. African Barrick dropped 0.2 percent to 453.1 pence in London.

To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Nairobi at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at pmrichardson@bloomberg.net.

[Kibera]

Ophir Gains In London After Upgrading Tanzanian Gas Reserves
By Eduard Gismatullin - Sep 3, 2012 6:03 PM GMT+0200
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Ophir Energy Plc (OPHR), the U.K. explorer planning to build the first liquefied natural gas terminal in East Africa, rose the most in two weeks in London after upgrading its resource estimates.
Ophir gained 3.8 percent to 586 pence, the biggest increase since Aug. 21. The shares have doubled this year.
The resource estimate for the Mzia discovery in Block 1 off the coast off Tanzania was increased to 4 trillion to 9 trillion cubic feet of gas from an earlier range of 2 trillion to 6 trillion, the London-based company said today in a statement. Ophir said its L9 and L15 blocks in Kenya and Block 7 in Tanzania may hold 36 trillion cubic feet of resources.
Gross discovered in-place resources for Blocks 1, 3 and 4 in Tanzania of as much as 21 trillion cubic feet meet the “threshold for a two-train LNG development,” Ophir said. It’s exploring the blocks with BG Group Plc. (BG/)
Tanzania may become the first East African nation to export LNG, from one of the world’s poorest regions. The government is developing a gas-industry master plan and may ask explorers to cooperate in building a unified LNG hub.
“In parallel with our exploration program, we have begun screening work to identify a potential site for an onshore LNG plant,” Kim Blomley, a spokesman at Reading, England-based BG, said today. “While we have clearly made an encouraging start in Tanzania, it is early days and much work is yet to be done before BG can commit to an LNG project in the country.”
Ophir said it plans to introduce a “strategic partner” before a planned multiwell drilling program in 2013 in Kenya and Tanzania.
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...-reserves.html

[Mintali]

welcome back geza ulole

[Kibera]

Originally Posted by Mintali

welcome back geza ulole

[ciceroji]

Originally Posted by Geza Ulole

African Barrick has paid taxes and royalties of 256 billion Tanzanian shillings ($163 million) from its Bulyanhulu mine between 1998 and 2011, according to information from the Mines Ministry. The company has paid 18 billion shillings from Buzwagi, 125.6 billion shillings from North Mara and 105 billion shillings from Tulawaka over the same period, the information shows.

This info would be so much more interesting if they also shared how much in profit and gold sales were made over the same period. I have a strong feeling that Tanzania has been getting ripped off for a while. At least they are now following Uganda's example and making sure these companies pay capital gains tax.

[Geza Ulole]

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Ophir Gains in London After Upgrading Tanzanian Gas Reserves
By Eduard Gismatullin - Sep 3, 2012
Ophir Energy Plc (OPHR), the U.K. explorer planning to build the first liquefied natural gas terminal in East Africa, rose the most in two weeks in London after upgrading its resource estimates.

Ophir gained 3.8 percent to 586 pence, the biggest increase since Aug. 21. The shares have doubled this year.

The resource estimate for the Mzia discovery in Block 1 off the coast off Tanzania was increased to 4 trillion to 9 trillion cubic feet of gas from an earlier range of 2 trillion to 6 trillion, the London-based company said today in a statement. Ophir said its L9 and L15 blocks in Kenya and Block 7 in Tanzania may hold 36 trillion cubic feet of resources.

Gross discovered in-place resources for Blocks 1, 3 and 4 in Tanzania of as much as 21 trillion cubic feet meet the “threshold for a two-train LNG development,” Ophir said. It’s exploring the blocks with BG Group Plc. (BG/)

Tanzania may become the first East African nation to export LNG, from one of the world’s poorest regions. The government is developing a gas-industry master plan and may ask explorers to cooperate in building a unified LNG hub.

“In parallel with our exploration program, we have begun screening work to identify a potential site for an onshore LNG plant,” Kim Blomley, a spokesman at Reading, England-based BG, said today. “While we have clearly made an encouraging start in Tanzania, it is early days and much work is yet to be done before BG can commit to an LNG project in the country.”

Ophir said it plans to introduce a “strategic partner” before a planned multiwell drilling program in 2013 in Kenya and Tanzania.

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/print/...-reserves.html

[Geza Ulole]

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Tanzania says Total close to signing exploration agreement
Thu Sep 6, 2012 1:42pm GMT
DAR ES SALAAM, Sept 6 (Reuters) - French oil major Total is close to signing a deal to explore for oil and gas in Tanzania's Lake Tanganyika, a senior Tanzanian petroleum official said on Thursday.

Total won a bidding round against eight other companies in August 2011 to explore the block but has been unable to do any work in the area while it discussed terms of a production sharing agreement (PSA) with the government.

"Total is in the very late stages of negotiation," Meshack Kagya, senior principal petroleum geochemist at the state-run Tanzania Petroleum Development Corp., told a gas conference.

Tanzania, east Africa's second-biggest economy, became a player in energy this year with several onshore and offshore gas finds, attracting multinational explorers to the area.

The country reportedly has about 30 trillion cubic feet of gas, which could make it a major energy exporter.

Total's PSA application is one of six the government is currently processing for companies. Two PSAs are for onshore blocks, and the others are for deep sea exploration spots.

Lake Tanganyika, where Total's new exploration area lies, sits on the western border of Tanzania and the eastern border of the Democratic Republic of the Congo.

Bodies of water that sit on onshore borders have been notoriously hard to explore as disputes over who owns the resources beneath lakes and rivers often erupt between countries.

In July, Tanzanian authorities asked UK explorer Surestream Petroleum, which Malawi authorities had licensed, to stop drilling on Lake Malawi. That dispute is ongoing.

Kagya said Tanzania was hoping to make more exploration blocks available soon, though he acknowledged it would take time. A licensing round that was supposed to take place in Houston, Texas this month was delayed and will be rescheduled in the near future.

"It has been delayed for some technical and housekeeping reasons," he said. (Reporting by Kelly Gliblom; Editing by Yara Bayoumy and Jane Baird)

© Thomson Reuters 2012. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.

Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
http://af.reuters.com/articlePrint?a...8K6D6W20120906

[Geza Ulole]

Tanzania Plans to Raise Gas Royalty
Tagged: Business, East Africa, Tanzania
BY JOHN MBALAMWEZI, 6 AUGUST 2012
Comment
Photo: Flickr/heipmann
The Tanzanian government plans to build a pipeline to carry natural gas to Dar es Salaam.
Dar es Salaam, Tanzania — The government is expected to raise gas royalty from the current 12.5% to an unspecified level as more oil and gas exploration companies are eying for more exploration in the country.

The move is aimed at ensuring that gas benefit more Tanzanians, an expert said to East African Business Week in Dar es Salaam.

According to the minister for Energy and Minerals, Mr. Sospeter Muhongo, the government will also raise fees that will be imposed to new demand for signature bonuses for energy contracts.

"This signature fee would be introduced under a new gas policy, and gas utilization master-plan and law that will be unveiled towards the end of this year," he said.

Muhongo added the main objective of all these enactments is to guide the gas and mining sectors for good, so that investors know exactly how they will proceed and how they will be charged regarding their production.

"The government will review existing contracts and conduct a detailed evaluation before entering into new production sharing agreements for oil and gas to ensure national interests are upheld," he emphasized.

For the past few years, a minimum of 18 global energy companies have spent nearly $920 million on oil and gas exploration in the country. The move to raise royalty comes at a time when the government is planning to launch new licences for nine deep-sea blocks by September this year in the south-eastern part of Tanzania, where major gas discoveries undertaken.

Tanzania estimated to have about 28.74 and 30 trillion cubic feet (TCF) gas reserves.

"With more exploration and drilling, we expect additional natural gas discoveries to be made in Tanzania," the managing director of the Tanzania Petroleum Development Corporation, Mr Yona Kilagane said.

Kilagane added the prospects for more gas discoveries in the country's offshore region are very good.

He noted that the use of natural gas reserves found in the country to run power plants and factories as opposed to oil imports is more cost effective.

"This means that the government will be able to save over $1 billion a year through the use of natural gas instead of fuel," he said.

As part of its plan to easy gas availability in the country, the construction of 532km gas pipeline which financed by Chinese through a loan amounting $1.2 billion started two weeks ago.

The completion of the gas pipeline, in the next 18 months will automatically reduce expenses that the government has been incurred by using fuel to generate power.

Tanzania is also expected to build two gas-powered plants to generate 390 MW at a combined cost of $598 million, a move which would reduce the country's reliance on hydro electric power which has so far proved vulnerable due to low level of water and unreliable rainfall. Loan agreements would be reached in September with the Japanese's Bank of International Cooperation and South Africa's Absa Bank for construction of one of the plants, meant to produce 240MW.

Available statistics show that 40% of Tanzania 1,375 MW power capacity came from natural gas by the end of June, compared to 1,014 MW a year earlier. Peak demand rose to 820 MW from 730 MW.
http://allafrica.com/stories/201208070071.html

MY TAKE
We do our things quietly no need to shout and brag!

[Geza Ulole]

Tanzania: Local Gas Stock to Last 100 Years
Tagged: Business, East Africa, Energy, Tanzania
BY ROSE ATHUMANI, 23 JULY 2012
Comment
Photo: Flickr/heipmann
The Tanzanian government plans to build a pipeline to carry natural gas to Dar es Salaam.
NATURAL gas that was recently found in the country will last for more than 100 years, Tanzania Petroleum Development Corporation (TPDC) Senior Research and Project Development Officer, Engineer Charles Sangweni has said.

Speaking to the 'Daily News, Eng Sangweni said natural gas already found is about 30 trillion cubic feet (tcf) at Songosongo, Mnazi Bay, Mtwara, Ntoria, Mikindani, Nyuni and Mkuranga in Coast Region. Eng Sangweni said natural gas currently being used for production of electricity comes from Songosongo and Mnazi Bay, which is less than a quarter of what is available.

He said the Songosongo to Dar es Salaam gas pipeline has the capacity of transporting 105 million cubic feet of gas per day which is processed at the Ubungo gas plant. "We have so much natural gas that will last more than 100 years, we don't have to worry that it will be finished soon. The one we are currently tapping is from Songosongo and Mnazi Bay alone," he explained.

The Songosongo processed gas he noted, is used in generating 418.5MW of electricity covering 50 per cent of all electricity demands which is at 800MW, used at homes and in industries, Eng Sangweni explained.

He further revealed that such reserves are worth over 626trl/-. But such worthiness does not include seismic survey costs which so far have reached 840 million US dollars.

Eng Sangweni said that 13 homes, 35 industries, Serena hotel and Keko Prison are already using the natural gas for domestic use.He said 45 vehicles are now running on natural gas and more would be converted after building of more filling stations.
http://allafrica.com/stories/201207231351.html

[Geza Ulole]

Environment body allows firm to proceed with project Send to a friend
Sunday, 09 September 2012 12:48

By The Citizen Reporter & Agencies

Dar es Salaam. Canaco Resources of Canada has received an environmental impact assessment (EIA) certificate for its Handeni project in Tanga Region, marking the first critical step to obtaining a mining licence.

The company said in a statement that the EIA-certificate issued by the government covers the 100 km2 Handeni gold property, including the Magambazi project area.

Canaco early in August entered into a memorandum of understanding (MoU) with an arm's length third party, a Chinese gold producer, to create a joint venture (JV) to develop Canaco's Magambazi project.

Under the terms of the MoU, Canaco and the Chinese gold company would form a JV to develop and explore the Handeni project. Canaco's initial contribution to the JV was the Handeni property, including the Magambazi project and all rights and obligations within the Handeni property.

The Chinese gold company may earn up to a 55 per cent interest in the joint venture by funding 100 per cent of the costs of the on-going operations of the joint venture until the earn-in is complete.

"Receipt of this EIA certificate is the first step in the mine permitting process and a prerequisite for a Tanzanian mining licence. This demonstrates the support the project has received from government and local communities during public hearings,” chief executive officer Andrew Lee said in the statement.

The company in May released a maiden resource estimate for the Magambazi project, estimating the project to hold 721 300 ounces in the indicated category and 6.7-million ounces in the inferred category using a 0.5 g/t cutoff.
The company’s shares stocks responded positively to the news, rising by 4.41 per cent to trade at 35 Canadian cents apiece on Friday afternoon.

Meanwhile, Canada's mining industry is on the right path to continued prosperity despite current market volatility, the Mining Association of Canada (Mac), has said.

In a speech to members of the Vancouver Board of Trade, Mac president and chief executive officer Pierre Gratton said regulatory reform, investment in infrastructure and promotion of strong trade relations with countries such as China, the world's biggest consumer of metals, will keep Canada globally competitive.

Despite a slowdown in Chinese growth to 7.6 per cent in the second quarter, from decades of 10 per cent average yearly growth, Mr Gratton noted that most prices remain at relatively high levels, despite a fall off in recent months, and emphasized that the long-term fundamentals that have supported rising commodity prices over the past decade remain.

"The mining super cycle is not over, it is taking a pause. This is the nature of the mining business, which is cyclical. The industry is generally better prepared for the current slowdown compared to last time, which was much more dramatic," Mr Gratton said.

Mr Gratton says globalisation and the rise of Asia, and China in particular, were behind the steadily rising metal prices in recent years, and the quick recovery from the 2008/09 global financial crisis.

Rapid industrialisation in China was driving demand for minerals and metals used in a wide-range of construction and manufacturing applications, as the country built out its infrastructure base. This meant China was a significant consumer of two of British Columbia’s (BC’s) top-producing commodities: copper and steel-making coal.

"China will continue to drive demand for minerals and metals well into the future, and was being followed by a number of emerging nations such as India and Brazil,” he said.
http://www.thecitizen.co.tz/business...d-with-project

[Geza Ulole]

Originally Posted by Mintali

welcome back geza ulole

u can't breath without mentioning me!

[nigel20]

Nice thread.

[Geza Ulole]

For the first time in the history of this country, a company owned by the government in partnership with an investor, Intra Energy, has drilled a first well to prospect for coal gas at Ngaka Coal Mine in Mbinga District, Ruvuma Region.



The well was drilled at Mbuyula area in Mtundawalo Village and it is among five wells that will be drilled by the company at the coal mine. Executive Chairman of Intra Energy, Mr Graeme Robertson said each of the wells is expected to generate one megawatt of electricity, expressing hopes that the project would produce five megawatts of power in the near future.

Mr Robertson, who was leading a delegation of Intra Energy officials to inspect the project, said coal gas which is known as coal bed methane is usually found 500 metres below the ground. He boasted that his company has experience in the drilling of coal gas in other countries in the world where it has been able to produce over 1,200 MW.

In another development, TANCOAL Energy, which is in the process to generate power from coal at the mine by the year 2015, has announced that the project will produce 240MW, up from 120MW that was earlier estimated. Mr Robertson said the increase was due to discovery of more coal deposits which have been proved at 356 million tonnes, according to a new survey.

The Managing Director of National Development Corporation, Mr Gideon Nasari, said the government was pleased with development of the project. The NDC boss said the country will no longer have to import coal, noting that cement industries which used to import coal at 250 US dollars per tonne will now get high quality coal at half the price.

The government of Tanzania owns 30 per cent of Ngaka Coal Mine through NDC while Intra Energy owns the remaining 70 per cent.

Source Tanzania Daily News
http://www.dailynews.co.tz/index.php...lled-in-mbinga

[TZBoy]

^ Asante kwa habari Geza :smile: nchi inaendelea kusonga mbele

[e.base]

Great news!!

[Geza Ulole]

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Tanzania orders review of all oil and gas exploration contracts
Sun Sep 16, 2012 11:07am GMT
By George Obulutsa

NAIROBI (Reuters) - Tanzania's energy minister has ordered a review of all contracts with oil and gas exploration companies by November 30, saying some were not in the country's interest and should be revoked, adding to measures already under way to overhaul the country's energy policy, newspapers reported on Sunday.

Earlier in September, state-run Tanzania Petroleum Development Corporation (TPDC) delayed a licensing round for nine deep-sea oil and gas blocks previously set for this month until a parliamentary vote on a new gas policy in October.

Tanzanian newspapers quoted Energy and Minerals Minister Sospeter Muhongo saying that the incoming board of the TPDC had until the end of November to complete the review of contracts.

"Some of the agreements are really shoddy and they need to be revoked," Muhongo was quoted saying in the privately-owned Guardian on Sunday newspaper.

"I can't tolerate agreements which are not in the country's interest but they benefit a few individuals."

Newspapers reported that the nine board members were handed bags containing the 26 existing production sharing agreements and told to start work right away.

East Africa has been a focus of hydrocarbon exploration after substantial deposits of crude oil were found in Uganda in 2006 and major gas reserves were discovered in Tanzania and Mozambique.

In June, Tanzania - which already uses some of its natural gas to produce electricity and to power industry - said it had nearly tripled its estimate of recoverable natural gas reserves to up to 28.74 trillion cubic feet (tcf) from 10 trillion following recent major discoveries.

Opposition lawmaker Zitto Kabwe has urged the government to impose a 10-year moratorium on issuing new licences.

Tanzania's energy ministry has been in talks with the country's largest gas producer - PanAfrican Energy, a unit of Toronto-listed Orca Exploration - over payment of $33 million.

A parliamentary investigation said last year that PanAfrican had denied TPDC a share of gas revenues, a finding that Orca strongly rejects.

Among other companies exploring in Tanzania are Norway's Statoil, Ophir Energy and BG Group, which have all made significant offshore natural gas discoveries offshore.

Others include Canada's Wentworth Resources, which along with its partners is building a 532 km gas pipeline from Mtwara in southern Tanzania to the commercial capital Dar es Salaam at a cost of $1.06 billion, expected to take 12-14 months to complete.

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http://af.reuters.com/articlePrint?a...88F01320120916