Hydrocarbons and metalic and non metalloc minerals exploration and discoveries

[Geza Ulole]

26th October 12
Govt to diversify mining activities
Lusekelo Philemon
Tanzania will soon introduce new mines to fill the gap to be left by Tulawaka and Golden Pride gold mines, which are likely to close in the next two years.
Energy and Minerals deputy minister George Simbachawene revealed this here yesterday when addressing the Tanzania Mining, Energy/Oil, Gas and Infrastructure Indaba 2012.
Without disclosing the planned gold mines, the deputy minister said production of the mineral in the country has increased from less than one tonne per annum in 1998 to over 45 tons in 2010.
“This has been possible due to the implementation of several mining policy reforms, which led to the commissioning of six large-scale gold mines in the country,” he said.
The minister noted that Tanzania is set to embark on huge investments in nickel, uranium and coal mining in the next few years.
“The idea behind this plan is to diversify the mining sector significantly,” he added.
Gold mining has dominated mineral activities since the country opened up the mining sector to foreign investors.
Tanzania has the largest untapped high-grade nickel deposits in the world.
Simbachawene encouraged potential investors to come and invest in the mining sector, which has a wide range of untapped mineral resources.
The ongoing three-day meeting gives Tanzania an opportunity to showcase a number of minerals available in the country.
“Tanzania has various investment opportunities, such as exploration and exploitation of minerals, establishment of smelters for copper and other minerals and refinery of gold, and establishment of lapidiary and tools for mineral value-addition activities,” the minister said.
It is estimated that about 90 per cent of minerals have not yet been exploited.
Simbachawene said despite the fact that the country is endowed with a number of mineral resources, the mining sector's contribution to GDP was merely 3.3per cent in 2011.
“This is still a very low contribution to our economy. The aim is to have the sector contribute about 10 per cent by 2025. In order to achieve this we need to manage well the exploitation of our mineral resources as well as commissioning more mines in future,” he said.
Mantra Tanzania/Uranium One Inc managing direrctor Asa Mwaipopo, for his part, said: “As a mining firm, we are working hard to complement the government target to make the sector contribute 10 per cent to the country’s GDP by 2025.”
He said Mantra Tanzania was determined to develop a giant uranium mine under the Mkuju River Project located in Namtumbo district.
Tanzania Chamber of Minerals and Energy (TCME) chairman Joseph Kahama assured Tanzanians of their continuous engagement with mining investors in the country in order to ensure that they maintain a good environment for people living around mining sites in the country.
He said TCME will continue to ensure its members abide by the new mining laws and policies which require them to keep the local surroundings clean and free from any harmful hazards.
“We are committed to ensuring that the environmental impact of our activities is minimized whilst the environmental benefits are maximized,” he said.
THE GUARDIAN
http://www.ippmedia.com/frontend/fun...le.php?l=47318

[Geza Ulole]

TZ set to earn Sh1.6tr from Uranium Send to a friend
Thursday, 25 October 2012 21:53

By The Citizen Reporter
Arusha. Mkuju River project will put Tanzania among top 10 African countries in uranium mining with over Sh 1.6 trillion earnings from foreign direct investments, ac cording to Mantra Tanzania managing director Asa Mwaipopo.

Presenting a paper on Tanzania’s Uranium mining potential during the country’s mining, energy, oil and gas and infrastructure Indaba 2012, Mr Mwaipopo said the project was going to benefit all players and the country at large. “The project apart from diversifying the mineral sector will generate direct and indirect cash flows to Tanzania in excess of $640 million over the current life of the mine of 12 years and also attract FDI in excess of $1 billion over the life of the mine,” he said.

According to him, the Mkuju River project will be operated under the terms and conditions prescribed in the country’s 2010 Mining Act that among other things addresses the need to increase loyalty payment levels.
Mantra Tanzania and its investors are committed to developing the Mkuju River project in spite of the continuing depressed uranium market after the Fukushima event, he said.

Mr Mwaipopo said the project will be developed in accordance with the set safety and environmental standards to ensure minimal risks when the project finally starts.

He, however, said the biggest challenge for the company is to educate communities surrounding the project and the country at large on the benefits that may come along which will help win public support.

Earlier, Energy and Minerals deputy minister George Simbachawene -- during the conference -- re-affirmed government’s commitment to support the project because of its economic importance. “We will go-ahead with mining of uranium in areas proved to be with enough mineral resources. We can only consider not doing so if research indicates that mining of the mineral affects the eco-system,” he said.

Mkuju River, started as an in situ recovery uranium development project located in southern Tanzania, about 470 km southwest of Dar es Salaam.
http://www.thecitizen.co.tz/business...r-from-uranium

[Geza Ulole]

Print Back to story
AngloGold Tanzania Unit May Pay $200 Million in Taxes This Year
By David Malingha Doya - Oct 26, 2012
AngloGold Ashanti Ltd.’s (ANG) Tanzanian unit expects payments to the government to double to about $200 million this year, after it pays its first full-year corporate tax and a royalty increase that it’s negotiating to decrease.

Geita Gold Mine Ltd. paid about $100 million to Tanzania last year, “slightly less” than $45 million of which was royalties, Geita Managing Director Gary Davies said. The royalty component will grow because the government raised the rate and gold’s price increased, he said.

“We are paying the 4 percent royalty rate but in protest, because we are still discussing it, and have not yet reached an agreement,” he said yesterday in an interview in the northern town of Arusha at a mining conference. “The latest round of discussion was fairly positive. I can’t give details of it.”

The Tanzanian government increased royalties for mining companies by 1 percentage point to 4 percent when it enacted legislation in 2010. African Barrick Gold Plc (ABG), the biggest producer of the metal in the East African country, is the only miner that has agreed to pay the higher royalty so far.

Tanzania, which vies with Mali to be Africa’s biggest producer of gold after South Africa and Ghana, is seeking to gain more from the resource. Energy and Minerals Minister Sospeter Muhongo has urged companies to aim at breaking even in at most five years, so that they start paying corporate tax.

“Tanzania’s mining industry is currently based on six major mines, and we think government should aim at gaining more from the sector by expanding it, awarding more licenses,” Davies said. “Trying to gain more from the existing operations may instead shrink the sector.”

Extending Geita

Geita is producing about 500,000 ounces a year and has a mine-life of about seven years, he said.

“We are doing exploration to try and extend it, probably for another seven, eight years,” Davies said.

The company has started studies for underground mining at Nyakanga, which is part of the Geita license, that may be completed by 2015, he said.

AngloGold is also exploring alternative sources of energy to decrease dependence on expensive fuel-generated power currently, accounting for 15 percent of the plant’s costs, according to Davies. The Tanzania Electric Supply Co. may connect the mine to the national grid by 2015.

“Electricity from the national grid will have an impact on cost,” Davies said. “We will maintain it as one of the alternatives among other sources, while we see if that supply is reliable and sustainable.”

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

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
http://www.bloomberg.com/news/print/...this-year.html

[Geza Ulole]

Lake Tanganyika oil drilling may start after 15 years – Explorer
By In2EastAfrica Reporter


An international oil and gas exploration company, Beach Petroleum (T) Limited of Australia, has declared that even though there are positive signs of oil in Lake Tanganyika’s Rukwa Region section, it will take more than 15 years for the first well to be drilled.



That was recently revealed by Beach Petroleum (T) Limited Country Manager, Mr Marcus Mng’ong’o, who cautioned that though there are visible signs of oil in Lake Tanganyika, scientifically it was too early to officially announce it until the extraction from the first drilled well starts.

The Tanzania Petroleum Development Corporation (TPDC) has contracted Beach Petroleum (T) Limited from Australia to explore oil and gas in Lake Tanganyika in Rukwa Region, an undertaking that started early last year and scheduled for completion between 2015 and 2016. Mr Mng’ong’o made the revelation following a story being spread by residents from villages along the shores of Lake Tanganyika in Nkasi District, that Beach Petroleum (T) Limited used MV Mwongozo to extract huge quantities of minerals from the lake’s bed and made away with them.

“It is very sad that even after holding several meetings with residents of villages along the shores of the lake particularly in Nkasi district, they continue to spread baseless reports that soldiers are using MV Mwongozo to deprive them minerals extracted deep down the lake. The story is not true at all, the truth is we are still exploring oil and gas in Lake Tanganyika and at times we used MV Mwongozo during the exercise and not otherwise, the big challenge we are currently facing is lack of understanding among the residents.

Once the project bears fruit, it will greatly benefit not only them (villagers), but also the nation at large” he noted. Following that misunderstanding recently, Beach Petroleum (T) Limited jointly with TPDC held a one-day workshop that attracted local functionaries from 34 villages along the shores of Lake Tanganyika in Nkasi district. The upshot was to sensitize them over the current oil and exploration endeavour carried out in the area.

Several participants urged the government to transparently involve the public on various important contracts they enter into with investors, both local and foreigners, particularly those that directly affect them in an effort to curb unnecessary disputes that might arise between them. Contributing on the subject, a councillor from Kirando Ward, Mr Privitus Joram, said a good example was the current exploration of oil and gas being carried out in the lake, where the contract was signed in Dodoma without involving villagers living along the shore of Lake Tanganyika .

This made them fear that investors were stealing from them minerals extracted from the lake. The TPDC geologist who serves as a Senior Public Relations Official, Mr Sebastian Shana, told the gathering that Beach Petroleum (T) Ltd has so far carried out studies on seismic acquisition gravity and magnet which will later be followed by mate ocean studies as part of its exploration of oil and gas in the lake.

“So, it is not true to say that the company is extracting oil and gas from the lake, but it simply carry out exploration and scientific studies which will in future determine whether there is oil and gas or not ….. the undertaking is very expensive and take years,” he added. The Nkasi District Commissioner, Mr Iddy Kimanta, called upon the people in the area to be patient and cooperate with the investors whose undertaking will be of great advantage not only to the district, but also to the whole nation at large.

“I take this opportunity to assure residents in the district particularly those living along the shore of Lake Tanganyika that so far there is no oil or gas being extracted from the lake, the company is only carrying out oil and gas exploration,” added the DC.

By PETI SIYAME, Tanzania Daily News

Do you have a story or an article to publish? Please email us to submit@in2eastafrica.net.
http://in2eastafrica.net/lake-tangan...ears-explorer/

[Geza Ulole]

African Eagle hopes to achieve Tanzania nickel production in 2016


Friday, 26 October 2012 08:05
African Eagle Resources has announced that it plans to start construction of a Tanzanian nickel mine in 2014, with first production of the metal expected to begin in 2016

The company said its Dutwa project, located 100km east of the gold-rich Mwanza region, has a resource of 110mn tonnes at 0.9 per cent nickel.

Aidan Schoonbee, director of African Eagle’s Dutwa resource, said, “This represents around one million tonnes of nickel metal. The anticipated life of mine is more than 20 years.”

Schoonbee said the company expected to apply for a mining license next year after conclusion of the environmental and social impact assessment of the project.

The exploration company said on its website that it planned to build an open pit mine to produce around 27,000 tonnes per year of nickel.
http://www.africanreview.com/constru...=default&page=

[Geza Ulole]

Print Back to story
Shell Says Tanzania-Zanzibar Oil Accord Will Advance Exploration
By Eduard Gismatullin - Nov 1, 2012
Royal Dutch Shell Plc (RDSA), the largest European oil producer, said an agreement between Tanzania and Zanzibar on managing oil and gas resources will allow the company to advance exploration in the Indian Ocean.

Shell holds at least four exploration licenses off Zanzibar and is working with Petroleo Brasileiro SA (PETR4) on two off Tanzania, according to Tanzania Petroleum Development Corp. The country’s President Jakaya Kikwete and Zanzibar President Ali Mohamed Shein last month agreed to begin preparations for the management of oil and gas resources, the Daily News reported.

“We have acreage which we haven’t been developing because it’s effectively under both jurisdictions,” Chief Financial Officer Simon Henry said. “Any agreement in fact is good news that would enable us to have that discussion about going ahead. It’s a positive step for us.”

Zanzibar, an archipelago including the main islands of Unguja and Pemba and at least 51 islets, is about 30 kilometers (19 miles) off the coast of Tanzania. The semi-autonomous Indian Ocean nation is in a political union with 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

®2012 BLOOMBERG L.P. ALL RIGHTS RESERVED.
http://www.bloomberg.com/news/print/...ploration.html

[Geza Ulole]

Print Back to story
Sinopec Group Said to Explore Bid for Maurel & Prom
By Cathy Chan, Fox Hu and Matthew Campbell - Nov 1, 2012
China Petrochemical Corp., the nation’s biggest refiner, is considering an acquisition of French oil explorer Etablissements Maurel (MAU) & Prom, three people with knowledge of the matter said.

China Petrochemical, also known as Sinopec Group, has held informal discussions with Maurel in the past year though hurdles to a deal remain, said two of the people, who asked not to be identified as the deliberations are private. A deal could value Maurel at more than $2 billion, the people said. Maurel shares rose the most in four months in Paris today.

Chinese refiners are seeking assets overseas as domestic earnings are depressed by state-controlled prices for processed fuels. Buying Maurel would allow Sinopec Group to boost oil production in African countries including Gabon, while avoiding the regulatory scrutiny that’s held up Chinese deals in the U.S. and Canada.

“It’s in the right kind of price range of a couple of billion dollars, not too small with rich international assets, while not too big that it attracts a lot of attention,” said Neil Beveridge, a Hong Kong-based energy analyst at Sanford C. Bernstein & Co. “Its oil and gas resources in Africa look attractive to Sinopec Group.”

Possible Partnership

Maurel Chief Executive Officer Jean-Francois Henin said in August the explorer isn’t big enough to remain independent and partnering with another company or being acquired would allow development of oil and natural-gas projects.

Two phone calls to Lv Dapeng, Sinopec’s Beijing-based spokesman, went unanswered. An official at Paris-based Maurel declined to comment.

At 1.3 billion euros ($1.7 billion) before today, Maurel’s market value is less than a 50th of that of Sinopec Group’s Hong Kong-listed unit. Maurel climbed 8.3 percent to 11.64 euros at the close of trading in Paris. Sinopec rose 2.1 percent in Hong Kong.

Maurel shares had fallen 9 percent in the past year before today, cutting its market value by more than 500 million euros. The explorer had been in acquisition talks with India Oil Corp. “on and off” for years, and failed to attract a reasonable offer for the entire company, said Henin, who owns 24 percent of Maurel.

Chinese Acquisitions

China’s state oil companies have spent more than $100 billion acquiring assets over the past decade to supply the world’s second-largest economy, which is also the biggest energy importer, according to data compiled by Bloomberg. Sinopec in January said it plans to produce 50 million metric tons of crude a year overseas by 2015, up from 22.9 million tons last year.

The company agreed in July to spend $1.5 billion for a 49 percent stake in Talisman Energy Inc. (TLM)’s U.K. unit, gaining access to oil and gas fields in the North Sea. The 2009 acquisition of Addax Petroleum Corp. for $8.8 billion brought Sinopec operations in Gabon.

Maurel has been in Gabon since 2004, and the country has been a “major growth engine,” according to its website. The company also has assets or operations in Congo, Tanzania and Mozambique.

Cnooc Ltd. (883), China’s biggest offshore oil and gas producer with no refining operations, has proposed the nation’s biggest overseas acquisition, offering $15.1 billion for Canada’s Nexen Inc. (NXY) Canadian and U.S. regulators are reviewing the takeover, which prime minister Stephen Harper has said raises “difficult policy questions” as members of his ruling Conservative Party criticize asset sales to state-owned entities.

Cnooc’s parent company, China National Offshore Oil Corp., yesterday said it agreed to buy interests in BG Group Plc (BG/)’s Queen Queensland Curtis LNG project in Australia for $1.9 billion.

To contact the reporters on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net; Matthew Campbell in London at mcampbell39@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

®2012 BLOOMBERG L.P. ALL RIGHTS RESERVED.
http://www.bloomberg.com/news/print/...urel-prom.html

[mwinyi]

Al habib Geza Ulole sina cha kukupa zaidi ya kuwa leo siku ya Ijumaa nikiwa pale masjid Kichangani Magomeni mapipa nitakuombea Dua Allah akufanyie wepesi wa kila jambo na uendelee kutuletea nondo humu

[Geza Ulole]

Shukran al habib aka Ustaadh aka al-Watan

[NewComer98]

Its been a while since I've seen any recent discoveries what happened.

[Geza Ulole]

Tanzanite tycoon pledges to create local employment
Multi-million dollar project planned

By Adams Ihucha

The Global largest tanzanite buyer, Morris Gad, through his company, Diamonds International, intends to invest heavily in Tanzania's gemstone industry to create employment for locals.

Mr. Gad, who buys nearly 70 percent of tanzanite to sell in his more than 140 locations in the United States, Mexico, and the Caribbean, revealed this at the end his three-day business tour in Mererani and Arusha last week.

“In the next two or three months, I would announce a major investment plan in tanzanite industry in Tanzania, that would create a considerable number of employment to locals,” the billionaire told a press conference in Arusha.

Gad, Chairman and CEO of Diamonds International, the largest jewelry retailer in the Caribbean said his venture in tanzanite precious stone in the country would involve an investment of multi-million-dollars.


Gad, a philanthropist also donated $10,000 to Naisinyai and Mtakuja primary schools in Mererani, simanjiro district in Manyara region to purchase textbooks.

The gem businessman said the support was just a beginning, pledging to supply more textbooks to satisfy the knowledge hungry Maasai pupils.

“During our visit to these two schools, we had few text books. When we started giving them the books, every pupil raised a hand demanding a book, showing that these children are hungry for education,” he said.

His daughter, Sara Morris Gad who accompanied his father in Tanzania business trip said that she was eager to understand the story behind tanzanite gemstone so that she can be able to tell her customers.

“Customers have been asking the story behind the tanzanite, its origin. So this trip has enabled us to learn,” explained Sara who is currently championing the tanzanite ‘Safikilima’ brand roll-out in the world.

Managing director of Signature Gems firm, Sailesh Pandit, the host of Morris Gad, said that the Tanzanite Mogul has agreed to support the trade of tanzanite in Tanzania.

The Managing Director of New York based Inter Colour Company; Benjamin Hackman said the government plan to have all gemstone polished within the country was healthy for the local economy.

http://www.arushatimes.co.tz/front%20page_2.html

[Rain Drops]

Originally Posted by NewComer98

Its been a while since I've seen any recent discoveries what happened.

walistop maana waziri alitaka apitie mikataba yote inayohusika na madini

[Geza Ulole]

» Print
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to colleagues, clients or customers, use the Reprints tool at the top of any article or visit: www.reutersreprints.com.
Uranium One sees building of Tanzania mine in 2013
Wed, Oct 24 2012
* Tanzania to become Africa's 3rd biggest uranium producer
* Govt wants mining sector to contribute more to GDP growth
By Fumbuka Ng'wanakilala
ARUSHA, Tanzania, Oct 24 (Reuters) - Uranium One's Tanzanian unit said it hoped to start building its Mkuju River uranium mine in 2013 and that, once completed, it would propel the east African country into the world's top ten uranium producers.
Mantra Tanzania's managing director Asa Mwaipopo said on Wednesday the Mkuju River project in southern Tanzania had an updated resource of 119.4 million pounds of uranium.
"It will take a two-year period for completing construction work before we start to produce uranium oxide. Tanzania will become number 3 in Africa in uranium production after Niger and Namibia," Mwaipopo told a mining and energy conference in the northern Tanzanian town of Arusha.
"We think we can be the first uranium mine in Tanzania and position Tanzania into the top 10 uranium producing countries globally."
Toronto-listed Uranium One is the operator of the Mkuju River project, which is owned by the Canadian uranium producer's majority shareholder, Russia's JSC Atomredmetzoloto (ARMZ).
ARMZ acquired the Mkuju River project when it bought Mantra Resources last year for around $1 billion. Uranium One has the option to purchase the project and the company aims to buy the asset by mid-2013.
"The project will provide direct and indirect cash flows in Tanzania in excess of $640 million and will provide foreign direct investment (FDI) in excess of $1 billion or equivalent to 4.76 percent of Tanzania's GDP," said Mwaipopo.
Mwaipopo said the project had been delayed by cumbersome regulatory licensing procedures.
Environmental groups had opposed the mine's construction in a world heritage game reserve. Tanzania received U.N. approval for the project to proceed in July.
The project is awaiting an environmental impact assessment certificate and final approval from Tanzania's ministry of energy and minerals.
Tanzania's ministry of natural resources and tourism is also still to give the nod for the proposed uranium mine to operate in the Selous game reserve, but Mwaipopo said the approval was expected soon.
Mantra said the company was also in talks with the Tanzanian government about provisions of the country's new mining legislation, which requires the state to own a stake in strategic mining projects.
He said the grade of the Tanzanian uranium resource was 297 parts per million, with the mine estimated to have a life of 12 years when constructed.
Tanzania's deputy energy and minerals minister, George Simbachawene, told the conference earlier on Wednesday the government wanted to increase the contribution of the mining sector to 10 percent of the GDP by 2025 from 3.3 percent last year.
Australian-based uranium exploration and development company, Uranex, is also prospecting for uranium in south-west Tanzania.
Tanzania, Africa's fourth-largest gold producer also has substantial deposits of coal, nickel, iron ore, diamond and gemstones.
http://www.reuters.com/assets/print?...8LOA4U20121024

[Geza Ulole]

Dar wins uranium battle Send to a friend
Tuesday, 03 July 2012 23:14

Environmentalists opposing the uranium project argue that changing the boundary of the World Heritage site have the planned uranium mine located outside the Reserve and thus make it acceptable for licensing, will not prevent radioactive contamination and toxic materials from entering the Park via surface waters, aquifers, and air etc., and will still endanger wildlife. The longevity of the radioactive elements poses a danger far beyond the time of operation of the mine, and will endanger the World Heritage site for many generations to come. who will have to deal with the problems - or leave the site to serious environmental degradation.

By Bernard James
The Citizen Reporter
Dar es Salaam. After months of intense lobbying, the Unesco World Heritage Committee has finally granted Tanzania’s request to hive off part of Selous Game Reserve to allow mining of uranium in one of the largest remaining wildernesses in Africa.

Monday’s decision comes as a great relief to the government, whose plan to alter the boundaries of Selous met strong opposition from environmentalists on the grounds that mining in the World Heritage Site would have disastrous consequences.They argued that mining of uranium had caused devastating environmental and health damage wherever it had been done.

But, at a meeting in St Petersburg in the Russian Federation from June 24 to 6 July 2012, the committee unanimously approved Tanzania’s request to modify the boundary of the game reserve by 0.8 per cent.
The decision means that some 19,793 hectares (nearly 200 square kilometres) to the south of the Selous, where uranium deposits are found, will also be excluded.

The deputy minister for Natural Resources and Tourism, Mr Lazaro Nyalandu, was quick to thank members of the World Heritage Committee, the International Union for the Conservation of Nature and the World Heritage Centre and all those who supported the country’s application.

He reiterated Tanzania’s commitment to conservation and added that the decision taken by the Committee gave the country an opportunity to address social and economic challenges and also acquire resources to further strengthen the management of the game reserve. Declared a World Heritage Site in 1982, Selous covers more than 50,000 square kilometres. It is home to the largest population of elephants on the continent.

According to Unesco, the five million-hectare game reserve also has large numbers of black rhinos, cheetahs, giraffes, hippos and crocodiles—along with grasslands and miombo forests. Its diverse landscape retains undisturbed biological and ecological processes. Tanzania applied for permission to alter the boundaries of Selous in January 2011, arguing that extracting uranium in the area was critical for funding development programmes and driving the economy.

The project will be carried out by an Australian uranium mining firm called Mantra Resources at a cost of $400million.
Some environmentalists and politicians, including a handful of MPs, have consistently voiced strong criticism to the mining plan. They maintain that the project will have devastating consequences on the economic and social fronts and deal a major blow to the ecology.

German environmentalists and conservationists were in the forefront in the campaign, arguing that the country risked environmental degradation and significant pollution of land and water. They wrote to President Jakaya Kikwete, through the Tanzanian ambassador in Berlin, to complain that the project was being pursued irrespective of the potential damage to the environment and the country’s biodiversity.
The groups threatened to build a global alliance similar to the Stop the Serengeti Highway coalition which has spread around the globe.

Some environmentalists suggested that the decision to mine the uranium may have already been taken before an environmental assessment was done. The government is projected to earn $5 million (about Sh8 billion) a year from the mining while companies are projecting $200 million (about Sh320 billion) in annual earnings.

The Natural Resources and Tourism Minister then, Mr Ezekiel Maige, said the earnings would supplement the cost of managing the park and create jobs for about 1,600 Tanzanians.

Tanzania spends about $490,000 (about Sh780 million) a year to manage Selous.
The government believes the income from mining could also help pay for guards to stop poaching.
http://thecitizen.co.tz/editorial-an...um-battle.html

[Geza Ulole]

Tanzania: Schlumberger to Invest More Next Year
BY ORTON KIISHWEKO, 20 NOVEMBER 2012
SCHLUMBERGER'S local expenditure is to grow by US$ 6 million next year following the company's plans to increase it from $9m in 2012 to $15 m in 2013.

The company's official plans show they would set out to engage with companies that support local businesses, and in so doing, to make a worthwhile contribution to the economy.

"Building world class facilities has increased local expenditure significantly by 48 per cent in 2012," notes the document.

Briefing the Ophir Board last week, the Schlumberger Eastern and Southern Africa GeoMarket Manager Mr Eugene Toukam said the company has built a Kerawala base in Mtwara at the cost of $6m to the highest international standards.

"This is the only oilfield support facility in Tanzania that is built to six-sigma-concept lean standards," he noted. He said Tanzanians who have been taken across the world for training in various disciplines of the oil and gas sectors are performing competitively, noting that they are up to the challenge of working as global citizens.

He said Schlumberg has reacted quickly to support East Africa's emergence as one of the world's most prolific new frontiers for oil and gas exploration. In little over a year, they have created a new GeoMarket organization to cover the religion and built up a comprehensive operations infrastructure for Tanzania and Mozambique.

Field maintenance facilities have been constructed in Mtwara that will exceed North Sea Standard. He said since the formation of the Eastern and Southern Africa GeoMarket in August last year, Schlumberger has set out to develop the only world class facilities in the region.

Their ambition is to have a permanent oilfield services organization in Tanzania that marches their clients' expectations. Tanzania recently raised its estimate of recoverable natural gas reserves to 33 trillion cubic feet (tcf) from 28.74 tcf following recent big discoveries offshore.

According to the Deputy Energy and Minerals Minister, George Simbachawene, these discoveries are an indication that Tanzania is now becoming one of the natural gas hubs and a new frontier in oil and gas exploration in the east Africa region and the world at large. Gas strikes off east Africa's coast have led to predictions the region could become the world's third-largest exporter of natural gas.

The government said it hoped the gas finds would help to transform the country's economy, which largely depends on farming, mining and tourism. "The gas discoveries in Tanzania will not automatically be a blessing without challenges, and therefore we should not take things for granted," Simbachawene said.

"We must ... overcome impending challenges including, but not limited to, insufficient institutional and legal frameworks and insufficient human, financial, physical and related resources for the sub-sector." Tanzania plans to restructure its state-run petroleum regulator and have in place a gas policy and legislation before the end of the year to help regulate its vast natural gas discoveries.

The gas play extends north to Tanzanian waters, and here there have been three deepwater discoveries to date, Pweza-1, Chewa-1 and Chaza-1, with combined recoverable reserves in the range 3-4 tcf. All wells were drilled by BG International and Ophir Energy during 2010-11.

The same partnership has contracted the deepwater drillship MetroStar I for a second exploration campaign at the end of last year. Jodari-1, the first of the initial trio of planned wells, should be completed this month.

Ophir's concessions offshore Tanzania, minus the recent acquisition of block 7. Jodari-1 is in Tanzanian block 1, which Ophir was awarded in late 2005. The following year it also picked up adjoining blocks 3 and 4 -- the three concessions cover a total area of 20,853 sq km (8,051 sq miles) over the Mafia Deep offshore basin and the northern portion (45%) of the Rovuma basin, in water depths ranging from 100 m to over 3,000 m (328-9,842 ft).

Ophir commissioned infill 2D and 3D seismic surveys over all the blocks during 2006-08 which it used to build an inventory of drill- worthy prospects. In June 2010 BG farmed into 60% of each of the PSCs and in mid-2011 assumed operatorship from Ophir after completion of the three discovery wells.

Ophir, meanwhile, has extended it sholdings, taking a 70% operating interest last year from RAKgasTanzania in the 7,500-sq km (2,896-sq mi) East Pande block which overlaps the Mafia Deep offshore basin and the Mandawa sub-basin.
http://allafrica.com/stories/printab...211200242.html

[Geza Ulole]

Tanzania Releases First Draft of Natural Gas Policy
Monday, 19 November 2012
On 2 November 2012, Tanzania’s Ministry of Energy and Minerals (MEM) published the first draft of the long awaited Natural Gas Policy. The release will be followed by a 21-day stakeholder consultation to be completed on 20 November 2012.

These consultations are expected to include multilateral institutions like the World Bank, hte International Monetary Fund, the Africa Development Bank, bilateral partners, civil society organisations, academia, oil and gas companies, those directly affected by the oil and gas operations and the Tanzanian public. MEM is inviting comments through it website, although it plans to hold physical consultations with selected stakeholders. It is anticipated that the final policy will be published before the end of 2012.

As of June 2012, the country had discovered 33trn cubic feet of natural gas (equivalent to about 6bn barrels of oil), according to the document. Such significant reserves require a comprehensive plan for their utilisation and the policy is intended to act as a guide to the subsequent development of legislation, regulatory and institutional frameworks. Notably, it focuses on the midstream and downstream sectors of the natural gas industry, with the upstream to be catered for in the Petroleum Policy.

Policy Highlights
Competitive licensing: While previously exploration and production contracts in East Africa have so far been awarded opaquely usually at the minister’s discretion, the policy directs that the government move to a more competitive system: ‘Ensure competitiveness in the grant of petroleum licenses to promote productivity and maximise the country’s benefits from its natural gas resources unless under exceptional cases for national interest.’. Several parties had pushed for the postponement of a new licensing round of new blocks in September until the policy was released, but having no legal backing, even this directive may not be enough and the round may have to await the enactment of the Natural Gas Act.
Domestic use: The policy also gives first priority to the domestic market over exports. ‘The Government considers facilitating wide utilization of this indigenous resource domestically to minimize the use of foreign currency for importing petroleum products.’ The policy envisages domestic use in electricity production, industrial use, household use etc. Further, the policy also directs that the government consider regional markets when developing the natural gas infrastructure. For example, Tanzania and Kenya have already considered the idea of a gas pipeline to Mombasa for Kenya to develop a gas powered power plant in the coastal town.
Revenue management: The Policy suggests the establishment of a Natural Gas Revenue Fund that would be responsible for ‘collection, allocation and management of the natural gas revenue.’ The body is expected to effect revenue transfer to the government for strategic public expenditure and save part for future investment. Several countries have formed sovereign funds that ensure revenues from finite natural resources are shared with future generations.
Economic linkages and local content: The policy also encourages the gas industry be linked with other sectors of the economy, agriculture, transport, mineral, commercial and industry to avoid the so called Dutch disease. Additionally, the Policy’s drafters are keen to see the country benefit by gas companies procuring local goods and services, training and employment of local workforce and creation of support industries.
Regional co-ordination: The policy also opens the way for coordination in developing the gas industry with other countries: ‘The government shall promote cross border projects and investment to maximize benefits accruing from natural gas exploitation.’ Mozambique to the south has struck huge gas reserves while Kenya to the north has stepped up offshore exploration. All the three countries said to have similar geological makeup offshore and co-operation might reduce exploration costs.
Transparency and accountability: The Policy directs that relevant bodies should endeavour to make public all non-sensitive information on the natural gas industry to promote transparency and accountability and curb corruption tendencies. On the same, the policy recognises that Tanzania has joined the Extractive Industries Transparency Initiative (EITI). Tanzania is yet to fulfil all the requirements however and remains a candidate country, according to the EITI website.
PPP: The government is also looking at employing Public Private Partnerships (PPPs) in the natural gas industry and the policy advocates for a proper mechanism for risk sharing in natural gas PPPs investments to ensure mutual benefits for parties involved.
Legal and regulatory framework: The policy also mandates the government to develop the relevant legal and regulatory framework for the industry. This framework is expected to cater to the midstream to downstream activities (transportation, liquefaction, distribution, supply and trading of natural gas). The policy envisages a natural gas regulatory authority that will oversee tariff structure, rates and charges, quality and standards, healthy and safety issues among others.
TPCD: In Chapter 5, the policy directs a review of Tanzania Petroleum Development Corporation’s (TPDC) roles, functions and structure. Currently, TPDC carries out commercial and regulatory functions for the oil and gas industry, but the policy recognises the need for a separation of the commercial and regulation activities, calling these dual roles ‘not prudent industry practice.’ With the establishment of the regulatory authority, TPDCs role in the midstream and downstream gas industry will become of a more commercial nature, i.e. it will hold assets on behalf of the government, and aggregate and develop natural the gas market. However, it remains to be seen if the petroleum policy will also strip it of regulatory duties in the upstream sector of the oil and gas industry.
Next Steps?
In an article carried by Daily News, several economists have called for the policy to be aligned with poverty reduction initiatives. There have been suggestions that the greatest value from the gas industry will be derived from investing in infrastructure, the improvement of which has a direct correlation with a general economic improvement and reduction in poverty levels. Tanzania is primarily an agricultural economy with a poor transport network, both in roads and rails, and an improvement in this area could help open up markets to farmers. Investments in the chronically ailing power sector, both in generation and transmission, would also help to foster more growth in manufacturing and other economic activities. So far, the government has embarked on building a gas pipeline to Dar es Salaam for the construction of two 390MW gas-powered power plants. However, it is worth bearing in mind that one of the above investment priorities are new: these have been on Tanzania’s agenda for years, and donors have lent copious financial support to them.

While the Policy provides an oversight of the gas industry it is expected to lay the foundation for the upcoming legislation and guidelines, in particular the Gas Utilisation Master Plan and the Natural Gas Act. These are expected to fill in the flesh to the Policy’s broad statements by providing specific legal details. Additionally, the country is also working on a Petroleum Policy and a Bill to regulate the upstream sector.
http://www.ratio-magazine.com/index2...e=0&Itemid=104

[Geza Ulole]

Ruvuma presents "significant" opportunity for Solo Oil

Solo Oil (SOLO) confirmed that "substantial progress" had been made in both its Ruvuma petroleum sharing agreement (PSA) in Tanzania and in its investment in south-west Ontario, Canada.

In its annual report to June 2012, the group highlighted the discovery of gas in the Ntorya-1 well in Tanzania, at 20.1 million standard cubic feet per day (mmscfd) and 139 barrels of oil per day of condensate. Solo also increased its participating interest in the Ruvuma PSA to 25%.

In 2010, Solo made a CAN$1.65 million (0.63 million) participating loan to Reef Resources in order to finance the recommencement of oil and gas production at the Ausable Field in south-west Ontario. Over the year, there was a discovery of gas at the Airport North #1 well adjacent to the Ausable Field, with the commencement of gas injection into the Ausable reef to provide long-term pressure support.

Financially, the company made a loss of £1.02 million for the year.

"The board is confident that the two investments made by the company since it changed its investment strategy in July 2009 are both encouraging and potentially very rewarding," Solo said. "The Ruvuma PSA represents a very significant opportunity and will be pursued vigorously through a farm-out in 2013."
http://www.iii.co.uk/articles/61295/...l-and-gas-news

[Geza Ulole]

Wentworth Resources goes ahead with Mnazi Bay project
Tuesday, 13 November 2012 07:42

Wentworth Resources has begun construction of a pipeline offshore Tanzania connecting to Mnazi Bay to award a 3D seismic contract for the block
The 532km pipeline is set for completion and to be commissioned in an estimated 18 months.
"The start of construction of the Mnazi Bay to Dar es Salaam Gas Pipeline Project has ushered in a new era for the Mnazi Bay concession and its partners," said executive chairman, Bob McBean.
“We are preparing our existing gas wells for full production into the pipeline and we are committed to proving up or otherwise discovering additional resources for incremental production.
“Acquiring new 3D seismic offshore Mnazi Bay is a logical first step in identifying our next drilling targets and we look forward to reporting the results of this work."
The work to acquire new seismic data is expected to commence before the end of the year.
Jaykaya Kikwete, president of the Tanzania, laid the foundation stone at the Kinyerezi gas receiving station for construction of the Mnazi Bay to Dar es Salaam gas pipeline project to commence.
Wentworth and its Mnazi Bay partners are in the final stages of sealing a gas sales deal to supply 80 mmcf/day of gas to this pipeline and have been requested by TPDC to increase this amount to 200 mmcf/day.
http://oilreviewafrica.com/explorati...zi-bay-project

[Geza Ulole]

18JUL2012
$1.5 billion Methanol and Urea plant in Tanzania



Wentworth leads consortium with Cove Energy and Maurel & Prom
The Dubai-based Wentworth Resources (Wentworth) is an independent oil and gas company with natural gas production and a committed exploration program in the Rovuma Basin of southern Tanzania and northern Mozambique.
Wentworth and its concession partners Cove Energy (Cove) and Maurel & Prom own a gas processing plant, a gas receiving plant and a 27 km pipeline system in Mtwara, Tanzania.
Wentworth is an East African upstream and midstream oil and gas company with a high focus on the Rovuma Basin, offshore Tanzania and Mozambique coasts.
Mnazi Bay natural gas resources have been, for the most part, stranded in the ground since first discovered in 1982, but there is a natural monetization solution that fits well with the fertiliser requirements of Tanzania and its neighboring countries.



Wentworth,Cove and Maurel & Prom to leverage downstream their upstream assets
In late 2010 Wentworth mandated Nexant, in USA, to conduct a screening study of all possible gas monetisation solutions for Mnazi Bay gas.
Nexant selected methanol and ammonia/urea production as the most appropriate monetisation option because:
- The fertiliser value chain can be implemented on relatively small natural gas reserves
- Fertiliser is a good match with development objectives in Tanzania as the country is a large importer of urea fertiliser
- Methanol is attractive as it requires a relatively simple conversion process and has lower capital expenditure requirements for a similar sized investment
- The project would benefit from secure revenue streams from export of methanol to global markets.
In addition this methanol and Urea plant would benefit from:
- Wentworth experience developing large-scale gas monetisation projects including the production of methanol, MTBE, LNG, and other value-added natural gas products
- Local support as the project would provides infrastructure for incremental and ancillary economic growth, construction jobs, and highly-skilled permanent jobs
- The Mnazi Bay Concession partners have the unique opportunity to develop an integrated business model upstream-downstream inside a Production Sharing Agreement (PSA), which optimizes project profitability
- Financing through export credit agencies and carbon offsets (the project consumes CO2) available for projects of this nature.
Wentworth, with the support of the Tanzanian government, is pursuing the development of this project and expects a Final Investment Decision (FID) immediately after the outcome of new exploration and appraisal drilling is known and full feasibility study and the Front End Engineering & Design (FEED) package are completed.



Wentworth appointed Nexant for feasibility study
From the first conclusions of the feasibility study performed by Nexant, Wentworth and its partners Cove Energy and Maurel & Prom are planning to start constructing the methanol and urea plants in two years time.
The construction project will take 40 months.
With an estimated capital expenditure of $1.5 billion the methanol/urea plant is designed to produce:
- 1 million t/y methanol
- 0.8 million t/y urea.
Available data indicate that Tanzania demands 400,000 t/y of urea.
The plant will be the first in East and Central Africa and it is hoped that urea produced from the site will serve all the member states of the East African Community (EAC).
In addition to this methanol and urea project, Wentworth and it partners and Chinese investors are also planning to monetize the natural gas from their Mnazi Bay concession with a:
- 300 MW power plant
- High Voltage Direct Current (HVDC) overhead transmission line from Mtwara to Singida in central Tanzania and HVDC converter stations and connections to the national grid.
Wentworth, Cove Energy and Maurel & Prom expect the methanol and urea plant to be completed for commercial operation by 2015.
Wentworth in brief
Based in Dubai, Wentworth Resources is an East African upstream and midstream oil and gas company with a high focus on the Rovuma Basin, offshore Tanzania and Mozambique coasts.
Wentworth key activities are concentrated on:
- Producing contingent and prospective natural gas resources
- Gas processing and pipeline assets
- Multiple large-scale gas monetisation projects
- High impact exploration and appraisal drilling program
Wentworth Resources is publicly-traded on the Alternative Investment Market of the London Stock Exchange and the Oslo Stock Exchange.
Maurel & Prom in brief
As a mid-size oil and gas company listed on the Paris market (in €), Maurel & Prom has proven experience as an oil operator with a presence inAfrica and latin America.
In 10 years, Maurel & Prom has designed oil systems, drilled more than 100 exploration wells will a success rate of more than 46% and discovered major fields at minimum cost.
Currently working in 10 countries on 4 continents, Maurel & Prom is extremely focused on exploration and maximisation of the value of its acreage.
Maurel & Prom is the operator in Mnazi Bay concesssion.
With this methanol and urea plant, Wentworth, Cove Energy and Maurel & Prom expect, with the support from Nexant, to meet or exceed several different targets, monetize their Mnazi Bay natural gas field, leverage downstream their capital expenditure and provide a major contribution to the Tanzania trading balance sheet in fertilisers.
For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer
http://www.2b1stconsulting.com/1-5-b...t-in-tanzania/

[Geza Ulole]

BG Tanzania - drilling update


BG Group recently made its sixth consecutive natural gas discovery off-shore Tanzania with the Papa-1 well, extending an already remarkable run of exploration success in one of the world’s fast emerging oil and gas provinces. Following this discovery our gross recoverable resources now stand close to 10 trillion cubic feet.

BG Group became one of the first companies to enter Tanzania when in 2010 it acquired interests in off-shore exploration acreage covering more than 25 000 square kilometres.

The next year, in mid 2011, BG Group became operator of the project, introducing the state-of-the-art drill ship Deepsea Metro-1, opening a new office in Dar Es Salaam and upgrading an offshore supply port at Mtwara. In parallel with the exploration campaign, BG Group has started screening potential sites for a two-train LNG plant.

BG Group Country Manager Matt Wilks said: “BG Group has created a significant opportunity within Tanzania, right at the heart of the very exciting East African oil and gas province.”

Deepsea Metro-1

BG Group has two key competitive advantages operating in Tanzania: the quality of its workforce and the state-of-the-art drill ship Deepsea Metro-1.

Built in Korea in 2011 and specially equipped to BG Group’s specifications, the Gusto-designed DSM-1 is one of the most advanced vessels of its kind, featuring remote-operated equipment for safety and highly-efficient dual derricks each capable of lifting loads of up to 2000 tonnes.

The vessel is longer than two football pitches placed end to end, has onboard accommodation for more than 200 people and is capable of operating in water depths of up to 3000 metres.


http://www.bg-group.com/TanzaniaUpda...iaUpdate1.aspx