Equinor writes off Tanzania liquefied natural gas project

[Don YF]

Feb 18, 2021 12:00 PM

State-owned Equinor ASA of Norway is writing off its $982 million liquefied natural gas project in Tanzania (TLNG), as overall economics have not improved sufficiently to justify keeping it on the balance sheet. This will be reflected in adjusted earnings for EPI division in fourth quarter 2020 results.

“Equinor will continue to engage Tanzania in negotiations on commercial, fiscal and legal frameworks that may provide a viable business case for TLNG in future,” said the firm’s senior vice president forinvestor relations Peter Hutton.

Equinor, formerly Statoil, has declared impairment of TLNG as a result of Tanzania delaying to approve the building of an onshore gas processing plant and export facility to enable commercial production for exploration firms to monetise the discovery.

“The TLNG project has an anticipated break-even price well above portfolio average for Equinor and is at this time not competitive within this portfolio,” said Mr Hutton in a briefing note issued the firm’s shareholders.

Impairment will be reversed if the firm successfully negotiates with Tanzania to make the project economically viable.

Equinor’s capital markets update in February 2020 showed oil and gas projects with expected start-up by 2026 having an average break-even below $35 per barrel based on today’s estimates.

“While progress has been made in recent years on the commercial framework for TLNG, overall project economics have not yet improved sufficiently to justify keeping it on the balance sheet,” the firm said.

Industry players said Equinor’s decision to write off value of TLNG was influenced by factors like global prices of natural gas dropping, and the environment for investing in Tanzania due to intention to change production sharing agreements.

Equinor has been in Tanzania since 2007, when it signed a production sharing agreement with Tanzania Petroleum Development Corporation.

Some $2.1 billion was invested between 2010 and 2017 in exploration of offshore Block 2 in the south eastern part of Tanzania.

Fifteen wells were drilled leading to nine discoveries of over 566 trillion cubic litres of gas.

theeastafrican.co.ke

 

[MK254]

Duh! Noma, mabeberu hawataki kabisa kuguswa kwenye "production sharing agreements"....busara itumike sio ubabe ubabe.

 

[nyakubonga]

Duh! Noma, mabeberu hawataki kabisa kuguswa kwenye "production sharing agreements"....busara itumike sio ubabe ubabe.

Wakaribisheni kwenu sisi hatutaki busara ya upande mmoja

kwamba sisi ndio tuwe na busara! vipi kuhusu wao?

 

[Bujibuji Simba Nyamaume]

Hatutaki wawekezaji

 

[MK254]

Wakaribisheni kwenu sisi hatutaki busara ya upande mmoja

kwamba sisi ndio tuwe na busara! vipi kuhusu wao?

Mikataba mlisaini wenyewe bila kumakinika, ukipewa limkataba lenye kurasa 800 na limeandikwa kwa kingereza unaomba wapi pa kutia saini tu, mnaishia kuliwa miaka yote hii, na hata mkiwehuka leo sioni kikubwa mtakachokifanya zaidi ya makelele, makinikia mlizungushana humu humu na leo sijui nini cha maana mlichokuza baada ya makelele yote hayo.

 

[kedekede]

Good thinking.

 

[nyakubonga]

Mikataba mlisaini wenyewe bila kumakinika, ukipewa limkataba lenye kurasa 800 na limeandikwa kwa kingereza unaomba wapi pa kutia saini tu, mnaishia kuliwa miaka yote hii, na hata mkiwehuka leo sioni kikubwa mtakachokifanya zaidi ya makelele, makinikia mlizungushana humu humu na leo sijui nini cha maana mlichokuza baada ya makelele yote hayo.

Sasa kama hujui cha maana kinachoendelea kwenye makinikia unapata wapi ujasiri wa kuongea hivi?

 

[Tony254]

The climate in Tanzania is not investor friendly.

 

[nyakubonga]

The climate in Tanzania is not investor friendly.

Nafkiri hii ni furaha kwenu, wakaribisheni kwenu.

 

[tuusan]

Mikataba mlisaini wenyewe bila kumakinika, ukipewa limkataba lenye kurasa 800 na limeandikwa kwa kingereza unaomba wapi pa kutia saini tu, mnaishia kuliwa miaka yote hii, na hata mkiwehuka leo sioni kikubwa mtakachokifanya zaidi ya makelele, makinikia mlizungushana humu humu na leo sijui nini cha maana mlichokuza baada ya makelele yote hayo.

Unahisi kingereza ni maandiko matakatifu AU mbona unawaza kimburula sana?izo page 800 waziona nyingi kwa kigezo cha lugha? So unataka kusema watz hawajui kingereza? Nikupe mfano wa proff Kabudi ambae ni mwanasheria Sidhani kama anaweza sign pumba na ni mbobezi kwenye lugha sana

 

[BabuMkubwa]

566 trillion cubic LITRES of gas

 

[Buyaka]

Addition by subtraction. We are all the better for it.

Ravenous jack a's who were selling the country to line their pockets have been jackbooted out along with the foreign buyers.

Let the gas stay in the ground for future generations, for what it's worth.

 

[MK254]

Unahisi kingereza ni maandiko matakatifu AU mbona unawaza kimburula sana?izo page 800 waziona nyingi kwa kigezo cha lugha? So unataka kusema watz hawajui kingereza? Nikupe mfano wa proff Kabudi ambae ni mwanasheria Sidhani kama anaweza sign pumba na ni mbobezi kwenye lugha sana

Umeamka vibaya ila ndio ukweli huo, kingereza huwababaisha sana na kutia tia saini kwenye mikataba bila kushirikishaa ubongo.

 

[chongchung]

Umeamka vibaya ila ndio ukweli huo, kingereza huwababaisha sana na kutia tia saini kwenye mikataba bila kushirikishaa ubongo.

We mzee huwa hauna hoja mbadala tofauti na hii?

 

[tuusan]

Umeamka vibaya ila ndio ukweli huo, kingereza huwababaisha sana na kutia tia saini kwenye mikataba bila kushirikishaa ubongo.

Nimekupa facts ndio mbona nyie mnasign vitu kifalafala bila kuwaza mara 2 Huo mradi wenu wa expressway mkataba wa miaka 27 mradi wa km 27 kulipia toll fees

 

[MK254]

Nimekupa facts ndio mbona nyie mnasign vitu kifalafala bila kuwaza mara 2 Huo mradi wenu wa expressway mkataba wa miaka 27 mradi wa km 27 kulipia toll fees

Labda sijakusoma vizuri, facts zipi umenipa... eti yule huwa mnamuita prof Jalalani amesoma mikataba yote na anajua English. Bro njoo kivingine maana hapo sioni tukijadili chochote cha maana.
Halafu umehamia kwa Express yetu, hehehehe mbona inakupa tabu hivi, hii itapepea hadi raha na italipa sana maana sisi ni taifa la kibepari, hatutaki vya bure ila tunataka ufanisi.
Leo hii nikitaka nikutane na wateja watano kwa siku ambao wanaishi mitaa tofauti, aidha niwe na chopa yangu ya kuruka vinginevyo sitofaulu kukutana nao, hivyo mifumo ya usafiri ikiboreshwa na kuniwezesha kuwafikia wateja wangu wote kwa siku, sitojali gharama ya visenti hivyo vya juu.

Imenikuta sana Dar, kwamba najikuta nashuka stendi ya mabasi ya mwendo kasi baada ya kusubiri too much na hayaji, kisha naingia taxi, najikuta hata taxi yenyewe naitelekeza na kuchukua bodaboda maana nasubiriwa kikao Mikocheni, na hapo nikimaliza hicho nina kingine Tegeta na bado kuna wateja sijawapa uhakika wa kukutana nao, kwa hali kama hiyo wala sijali gharama ya usafiri, kimsingi shughuli zangu ziende, maana kila mteja ninayekutana naye ni bonge la dili.

Hii Expressway itaongeza sana ufanisi kwenye shughuli, nikiwaza namna huwa nateleza kwenye superhighway ya Thika road, mjini nafika ndani ya dk 15, yaani shughuli zangu zinakamilika bila bughudha.

 

[tuusan]

Labda sijakusoma vizuri, facts zipi umenipa... eti yule huwa mnamuita prof Jalalani amesoma mikataba yote na anajua English. Bro njoo kivingine maana hapo sioni tukijadili chochote cha maana.
Halafu umehamia kwa Express yetu, hehehehe mbona inakupa tabu hivi, hii itapepea hadi raha na italipa sana maana sisi ni taifa la kibepari, hatutaki vya bure ila tunataka ufanisi.
Leo hii nikitaka nikutane na wateja watano kwa siku ambao wanaishi mitaa tofauti, aidha niwe na chopa yangu ya kuruka vinginevyo sitofaulu kukutana nao, hivyo mifumo ya usafiri ikiboreshwa na kuniwezesha kuwafikia wateja wangu wote kwa siku, sitojali gharama ya visenti hivyo vya juu.

Imenikuta sana Dar, kwamba najikuta nashuka stendi ya mabasi ya mwendo kasi baada ya kusubiri too much na hayaji, kisha naingia taxi, najikuta hata taxi yenyewe naitelekeza na kuchukua bodaboda maana nasubiriwa kikao Mikocheni, na hapo nikimaliza hicho nina kingine Tegeta na bado kuna wateja sijawapa uhakika wa kukutana nao, kwa hali kama hiyo wala sijali gharama ya usafiri, kimsingi shughuli zangu ziende, maana kila mteja ninayekutana naye ni bonge la dili.

Hii Expressway itaongeza sana ufanisi kwenye shughuli, nikiwaza namna huwa nateleza kwenye superhighway ya Thika road, mjini nafika ndani ya dk 15, yaani shughuli zangu zinakamilika bila bughudha.

Point yangu ilikua kingereza isiwe hoja,
Kuteleza mtateleza lakini huo mataba umekaa kinyonyaji sana!!uzalendo ndio Hamna

Sent from my SM-J200H using JamiiForums mobile app

 

[Tony254]

Point yangu ilikua kingereza isiwe hoja,
Kuteleza mtateleza lakini huo mataba umekaa kinyonyaji sana!!uzalendo ndio Hamna

Sent from my SM-J200H using JamiiForums mobile app

Wewe mwenyewe ndio juzi ulisema kwamba nchi haiwezi kuendelea ikiwa itategemea serikali pekee yake kujenga barabara. Ulisema kwamba serikali lazima iruhusu private sector kujenga barabara. Sasa itakuwaje tena PPP imekuwa ya kinyonyaji. Hata Italy wana barabara za PPP na wanalipa toll fees. Na muda wa mkataba ni 30 years hata huko.

 

[MK254]

Point yangu ilikua kingereza isiwe hoja,
Kuteleza mtateleza lakini huo mataba umekaa kinyonyaji sana!!uzalendo ndio Hamna

Sent from my SM-J200H using JamiiForums mobile app

Hata huko huko kwenye kingereza pia kina umuhimu ukitaka tukomae nacho, nilikua najaribu kutafuta nini haswa kinakusibu, maana unaparamia vyote hadi sikuelewi ipi ndio hoja yako.
Suala la Expressway usihoji chochote naisubiri kwa hamu sana, kazi zitafanyika sasa, nchi tunaingiza hasara sana kwa haya mafoleni, yaani maelfu ya watu wanaganda barabarani hawazalishi.

 

[shamimuodd]

Duh! Noma, mabeberu hawataki kabisa kuguswa kwenye "production sharing agreements"....busara itumike sio ubabe ubabe.

Waziri wetu na timu yake wanaweza kuwa na shida