WATCH: Oil explorations & projects in Tanzania

WATCH: Oil explorations & projects in Tanzania

Energy: Tanzania to start drilling for oil

Wednesday, July 21st 2010

London-based oil and gas exploration and production company Ophir Energy is to start prospecting for oil off the coast of Tanzania in what will be the first ever deepwater drilling project in the country.

The company holds licences in three deepwater blocks, which together cover an area of 28,000 sqkm in the Mafia Deep Offshore Basin and the northern portion of the Ruvuma Basin.

The contract is scheduled to begin within the next two months and will take an estimated 100 days to complete. In the event of a commercial discovery the Tanzanian government has back-in rights of between 12 and 15 per cent. Ophir Energy is operating in a joint venture with the UK-based integrated gas company BG Group.

The search for oil and gas in Tanzania started in the 1950s and has gained pace in recent years, with at 17 companies currently operating in the country according to the website of the Tanzania Petroleum Development Corporation.

So far proven natural gas deposits of about 3.3 trillion cubic feet have been discovered, with commercial production under way at the Songo Songo field in Kilwa district, southern Tanzania. No oil has been produced to date although available data and geological information show the existence of an active petroleum system that the country is eager to tap.


MAFUTA TANZANIA........! MAFUTA ZANZIBAR?
 
10th October 2010

UK firm commits $8bn in oil exploration

Rodgers Luhwago

In what gives hopes about the possibility of discovering oil soon, a British-based oil exploration company is to spend a hefty $8(Sh12 trillion) billion in searching for black gold in Tanzania's offshore of Mtwara Region, The Guardian on Sunday has learnt.

The amount is two times what the entire mining industry has invested in Tanzania during the past decade, a move that shows serious commitment by the firm, The Guardian on Sunday has been tipped.

According to details gathered by The Guardian on Sunday and confirmed by the Minister for Energy and Minerals, William Ngeleja, Tanzania will soon join the league of oil producing countries around the globe.

"Though the exploration is still in the preliminary stages, the amount of money and resources invested by the company gives high hopes for the discovery of oil," the Minister told The Guardian on Sunday when reached for comments.

"When you see a multinational company like this one is ready to invest such a huge amount of money in exploration, it means there's something somewhere," the Minister said.

Reliable sources told The Guardian on Sunday that what has been reached so far is an advanced stage of oil and gas exploration ever undertaken in the country, this newspaper can confidently report.

The British-based firm, Ophir Energy, began its exploration early this week following the deployment of a specially-built offshore rig technically known as Deep-sea Scavenger – a special ship fixed with all oil and gas exploration equipment.

Minister Ngeleja confirmed to this newspaper yesterday when reached for comment following reports from locals in Mtwara that they have sighted a large ship in the exploration site mid this week.

"What locals saw in the site is quite correct. Ophir Energy has already brought its exploration ship in the country and it has begun drilling oil in the site," Ngeleja told The Guardian on Sunday over the phone.

But, Ngeleja cautioned the public against being over-joyous on the developments taking place in the site since Tanzania is yet to officially strike oil.

"Although what is taking place in Mtwara is an advanced stage of oil and gas exploration and it is highly encouraging, I would like to tell my fellow Tanzanians that we should not celebrate for now. Let's keep our fingers crossed since we have not officially struck oil in our land," he added.

According to Minister Ngeleja, the exploration ship that measures 180 metres in length and is 170 metres wide, has been on the exploration site for the second week now and is expected to carry out the exercise for three months.

Engineers state that the vessel has been designed with a focus towards low or zero environmental impact with features such as a clean drain system with controlled discharge to sea, low NOX emission engines, enclosed derrick and a capability for cuttings re-injection.

The minister explained that the agreement for oil and gas exploration between the government and Ophir Energy was signed on May 26 this year, whereby the latter would conduct exploration activities in deep water Blocks 1, 3 and 4.

Ophir Energy is carrying out the exploration activities in partnership with BG Group of UK and they have both planned to set up an investment worth $ 8 billion, an amount larger than the 2009/2010 Tanzania's total budget.

Ophir Energy plc (Ophir) is an international oil and gas exploration company with an extensive portfolio of interests spread across the continent of Africa.

The Company's headquarters are in London, England and its main operational office is in Perth, Australia. There are local offices in Malabo - Equatorial Guinea, Dar es Salaam and Mtwara - Tanzania and Dakar - Senegal.

The Minister said if gas and oil are discovered in the site, it will be an important milestone in the country's energy sector. According to Ngeleja, if gas is discovered, it will help in the establishment of cement and fertilizer factories.

He also added that, upon meeting the domestic requirements, a special arrangement will be worked out to export gas outside the country.

During the signing of the deal between the government and Ophir Energy and BG Group on May 26 this year, Ngeleja said the agreement was negotiated well taking into account the need to balance risks of both sides so as to obtain arrangements that constitute a win-win situation for the parties.

Some of the provisions in the agreement, according to the minister, require sponsors to commercialise gas both for export in the form of Liquefied Natural Gas (LNG) while meeting the domestic obligations of supplying gas to local market.

Also the agreement provides for the operator and its contractors to give preference to the purchase of Tanzanian goods, services and materials available in the right quantity, quality and that they are comparable to those obtained elsewhere.

Until May, Tanzania had 13 exploration companies which were Maurel and Prom of France exploring in Bigwa and Mafia, Dominion Oil and Gas of UK exploring in Mandawa, Kisangire Selous and Block 7 in deep sea, Ndovu Resources of UK exploring in Nyuni East of Songosongo and Ruvuma basin located in Mtwara and Lindi region and Petrodel Oil and Gas of UK exploring in Tanga, Dar es Salaam platform and Latham.

Other companies were Petrobras of Brazil exploring in the deepwater Blocks 5 and 6, Pan African Energy of UK producing gas at Songosongo Island, Artumas Group Inc. of Canada developing the Mnazi Bay gas field, RAK GAS exploring oil and gas at Pande East of Kilwa, Statoil of Norway exploring in Block 2 in the deep water, Dodsal of Dubai exploring the Ruvu basin and Ufunguo Petroleum exploring in West of the Songosongo gas field.

Is Tanzania prepared to handle the oil politics?

However considering how oil has created many conflicts as well as resources curse in many countries around the globe, in a country like Tanzania where management of minerals and other resources have in the past proved futile, any news about discovery of oil may not sound well to some people.

The wealth derived from natural resources can have a tremendous impact on the economics and politics of producing countries. In the last quarter century, we have seen the surprising and sobering consequences of this wealth, producing what is now known as the "resource curse."

Countries with large endowments of natural resources, such as oil and gas, often do worse than their poorer neighbours. Their resource wealth frequently leads to lower growth rates, greater volatility, more corruption, and, in extreme cases, devastating civil wars.

Oil is found in a variety of geological strata but much of the world's richest oil regions are also the most risky, either geologically or politically. While its role in history has changed through the decades, oil is never far from the front pages of the newspapers. Iraq's invasion of Kuwait in 1990 precipitated the Gulf War of 1991, and prompted furious debate about " war for oil."

By and large, oil is the world's most important commodity. It is the world's most widely used fuel, not least because most of us drive cars or rely on public transport that is powered by oil.

But it should also be noted that while oil still accounts for the largest share of world commercial fuel production 3.637 trillion mt in 2003, or 37.3 percent of world production of 9.741 trillion mt some 2 billion people still rely on the most basic fuel of all, wood and combustible waste products, for simple cooking and heating.1.


GUARDIAN ON SUNDAY
UK firm commits $8bn in oil exploration
 
kwenye mikataba yao sijui kama kuna vipengele vya kudeal na mambo ya majanga kama yale ya BP yaliyotokea kule Gulf of Mexico.
 
Kuweka US $ 8 billion kwa kutafuta mafuta kwa nchi ambayo mapaka sasa haina mafuta
Sijawahi kusikia kitu kama hiki - ni pesa nyingi sana. Ama gazeti hili halikuandika sawa au kampuni hiyo haikusema ukweli
 
Kuweka US $ 8 billion kwa kutafuta mafuta kwa nchi ambayo mapaka sasa haina mafuta
Sijawahi kusikia kitu kama hiki - ni pesa nyingi sana. Ama gazeti hili halikuandika sawa au kampuni hiyo haikusema ukweli

Mkuu kwani hapo si ndio tunatiwa madole kila siku
Hizo zinakuwa kwenye investment book ilhali wanatumia $8 milion but will have to be recovered as $8bilion
Haiyumkiniki Barick kutumia $4 billion kujenga mine wakat mgodi ungeweza kutoa madini for just bringing equipment to mine
Huu ni ulimbukeni wa viongozi wete kupenda big figures kumbe ni upupu mtupu
 
Kuweka US $ 8 billion kwa kutafuta mafuta kwa nchi ambayo mapaka sasa haina mafuta
Sijawahi kusikia kitu kama hiki - ni pesa nyingi sana. Ama gazeti hili halikuandika sawa au kampuni hiyo haikusema ukweli

Agreed, i do not believe that number. $8 Billion just for exploration does not seem to make any sense. Even if you consider the seismic data etc it just seems way to high. Did these guys verify this number?

Oil exploration is an expensive, high-risk operation. Offshore and remote area exploration is generally only undertaken by very large corporations or national governments. Typical Shallow shelf oil wells (e.g. North sea) cost USD$10 - 30 Million, while deep water wells can cost up to USD$100 million plus. Hundreds of smaller companies search for onshore hydrocarbon deposits worldwide, with some wells costing as little as USD$100,000.

Hydrocarbon exploration - Wikipedia, the free encyclopedia

London, 25 June 2010 - Ophir Energy plc (Ophir) is pleased to announce that one of its operating subsidiaries has
signed a contract with Odfjell Invest for the use of the dynamically positioned ultra deepwater semi-submersible
Deepsea Stavanger on behalf of the Blocks 1, 3 and 4 joint ventures in Tanzania that it operates in partnership with
BG Group.
The Deepsea Stavanger will be used for Tanzania's first deep water drilling campaign. Delivery from the yard DMSE
South Korea is expected during July with the contract scheduled to commence during August. The contract duration
provides for two firm wells with the possibility for a third. The contract value is approximately US$50 million.

http://www.ophirenergy.com/UserDir/Documents/OEplc - Release re Deepsea Stavanger 2010-06-25.pdf
 
Huwezi invest dola billion 8 alafu useme hauna uhakika
Apa ni kupata viongozi wazalendo tuu hawa watu wabanwe kwenye mikataba.
Na iyo gas ikipatikana cement na fertilizwer vyaweza patikana cheaply
 
Interest

On 28 October 2005, the Group was awarded a 100% interest in Block 1, offshore Tanzania. The Government of the United Republic of Tanzania has back-in rights of 12% in the event of a commercial discovery. In 2006, the Group acquired a 100% interest in Blocks 3 and 4 which commenced on 19 June 2006. The Government has a back-in right of 15% in these two blocks.

On 26 May 2010 the Company announced that BG International Limited had entered into a farm in agreement whereby, subject to the satisfaction of certain earning obligations, it would earn a 60% interest in each of the PSCs.

MY TAKE
Mimi sio mtaalamu wa miakataba but izo asilimia mbona kama kampuni ya Tz inachimba mafuta UK
Mbaya zaidi kwenye iyo web yao hawajaweka iyo 8 billion dola akama invest package unaweza kuta changa</SPAN>
 
Wakuu biashara za kuchimba mafuta wananchi wa kawaida, makampuni yetu ya wazalendo, vyuo vyetu na taasisi nyingine wamejipanga vipi?

Tusitegemee mgao tu toka malighafi ya mafuta. Ni laana kama hatushiriki katika mchakato mzima.

Kwa uzoefu wangu katika shughuli hii ughaibuni washirika ni wengi kutoka nyanja mbali mbali. Ustawi wa nchi za South East Asia waliliona hilo. Msishangae jirani yetu Kenya akawa mnufaikaji mkubwa wa mafuta yetu kuliko sisi.
 
walete mikataba mizuri au mibaya, tunachotaka ni mafuta yaanze kuchimbwa haraka, hayo mambo mengine tutakamatanaga mbelekwambele..hii kuogopa kupigana au mikataba mibovu ndo kunakofanya mambo ya maendeleo yasifanyika haraka...Mungu ibariki tz
 
Posted on Mar 24th, 2011

Afren today announces that it has acquired a 74 per cent. operated working interest in the Tanga Block, located offshore Tanzania, from Petrodel who will retain a 26 per cent. interest in the block. In consideration for the acquisition of the interest, Afren has agreed to reimburse Petrodel a percentage of the back costs in relation to the block.

Afren will also fund all costs associated with the acquisition, processing and interpretation of an agreed seismic survey over the block amounting to 900 km of shallow and deeper water 2D coverage, after which, when supported by the seismic, Afren will carry Petrodel through the drilling of one shallow water exploration well subject to a cumulative cap on gross costs of US$40 million.

The Tanga Block lies northernmost coastal Tanzania, directly south of and adjoining Kenyan blocks L17 and L18 in which Afren holds a 100 per cent. interest. The licence includes onshore, shallow marine and deep marine areas. The block is covered by 200 km of legacy 2D seismic data, and 1,200 km of good quality new 2D seismic data covering mainly the deeper water area, which was acquired by Petrodel. The Tanga Block is well located as it includes a deep basin with a very thick sedimentary section that has the potential to host several source rock intervals and reservoir/seal pairings.

Potential petroleum plays recognised to date are Lower Cretaceous sands deposited in deltaic to shallow marine environments, Upper Cretaceous submarine fans, Eocene shelf sands and Miocene fluvial and deltaic sands. There are structures, particularly along the western flank of the basin, which are interpreted to form viable traps. Some of these lie in shallow water and could present relatively inexpensive drilling targets.

The Tanga block is also a possible source of charge into the southern parts of adjacent Kenya block L18. Oil seeps and shows encountered in previous wells drilled on the nearby Pemba Island attest to the oil potential of the block and surrounding area.

The prospects advanced to date have been defined on the existing 2D seismic grid.

Osman Shahenshah, Chief Executive of Afren plc commented:

"We are pleased to announce a farm-in to Petrodel's Tanga Block. The acquisition of an interest in the Tanga Block further consolidates our significant East African exploration exposure. The block represents an attractive opportunity to leverage our in-house knowledge and further explore along the same geological trends as blocks L17 and L18 that lie immediately to the north in Kenya, where Afren has a 100 per cent. operated interest."
 
Tue Apr 12, 2011

* Licensing round pushed to next year
* New blocks likely to be included
* Tanzania yet to strike oil but has discovered gas

By Fumbuka Ng'wanakilala

DAR ES SALAAM, April 12 (Reuters) - Tanzania's fourth deep offshore bidding round has been postponed to next year to allow it to offer new blocks discovered by a latest seismic survey, a state-run agency said on Tuesday.

The bidding round, which was initially scheduled for this month will now take place at a yet to be determined date next year, and include new blocks, the state-run Tanzania Petroleum Development Corporation (TPDC) said in a statement.

Tanzania has made significant commercial discoveries of natural gas, but is yet to strike oil.

"The government ... regrets to announce the postponement of the 4th deep offshore bidding round. The round was planned to be launched in April 2011.

"The round has been postponed to give more time for preparations. This will include proper demarcation of new blocks using additional new seismic data."

The government had intended to offer the bids for 13 deep offshore blocks located around 1,200 and 3,000 metres below sea, but the TPDC is now inviting bids for onshore exploration on the northern side of Lake Tanganyika, which Tanzania shares with three other African countries -- Burundi, Democratic Republic of the Congo (DRC) and Zambia.

The deadline for submission of bids for the Tanzanian side of the Lake Tanganyika north area is June 7, 2011, at 07:00 GMT.

"We are still collecting more data from deep-sea areas that's why we had to postpone the fourth round," George Ngwale, TPDC's acting Director of Explorations, told Reuters.

"Several other licences held by some companies are also scheduled to be released after the expiry of their four-year terms so these will also be offered to bidders," he said.

"The new round will be offered in 2012. I can't specify the exact date and number of blocks to be offered because we are currently compiling data on the available exploration areas."

Prospectors are studying east Africa afresh as insecurity in other parts of the continent and increasing energy nationalism elsewhere push them to seek new sources.

Gas discoveries in Tanzania, and oil discoveries on the border between Uganda and Congo have peaked interest in the region, which had been largely overlooked.

Tanzania has licensed at least 17 international companies exploring for both offshore and onshore energy sources in the country, the region's second-largest economy.

Among the firms that hold exploration blocks in Tanzania are Oslo-listed Artumas Group Inc (AGI), France's Maurel & Prom, Norway's Statoil, Royal Dutch Shell and Ras al-Khaimah Gas Commission of United Arab Emirates.
 
From OilVoice
Wednesday, April 13, 2011


Aminex PLC announces that The Minister for Energy & Minerals of Tanzania, the Hon. William Ngeleja, has signed a Development Licence with the Company's Tanzanian subsidiary, Ndovu Resources Ltd., ('Ndovu') for the Kiliwani North Gas Field in Tanzania. This is a major step in bringing the Kiliwani North Field on to production.

The Development Licence represents an area carved out of the Nyuni East Songo-Songo Production Sharing Agreement ('Nyuni PSA') which includes the mapped area of the Kiliwani North gas field. The Kiliwani North-1 well flowed gas at a rate of 40 million cubic feet per day (equivalent to 6,700 barrels of oil per day) under full production test conditions. Ndovu manages the Nyuni PSA and the Kiliwani North gas field as operating partner for a four-company consortium.

East Africa has become the subject of high industry interest recently, following successful drilling by large companies operating in deep water, both in Tanzania and in neighbouring northern Mozambique. The Kiliwani North Development Licence is the first new Development Licence granted in Tanzania as a consequence of exploration drilling carried out in recent times and is a significant milestone in the commercialisation of Tanzanian gas.

Kiliwani North has been independently estimated to contain 45 billion cubic feet ('BCF') gas in place on a Pmean Contingent Resources basis, equivalent to 7.5 million barrels of oil. Gas from Kiliwani North will be available to assist in countering current energy shortages in Tanzania.

Another prospect which lies within the development area, known as Fanjove North, but which has yet to be drilled, has been independently estimated to contain in excess of 200 BCF gas in place, equivalent to approximately 30 million barrels of oil, on a Pmean Prospective Resources basis and, subject to the outcome of a planned transition zone seismic survey, may be drilled in due course.

The Kiliwani North wellhead is situated on the southern tip of Songo-Songo island off the coast of Tanzania and is less than 3 kilometres from the nearest access point to the process facilities (being upgraded) at the input end of the Songas common-user pipeline which delivers gas from the neighbouring Songo-Songo field to the city of Dar es Salaam. Ndovu has already negotiated a memorandum of understanding for the future sale of gas to industrial users in the Dar es Salaam area and expects to be able to deliver first gas within 12 months.

Partners in the Development Licence are:
Ndovu (Aminex) 65%
RAK Gas Commission 25%
Key Petroleum 5%
Bounty Oil 5%

Aminex chairman Brian Hall commented: 'We are very pleased to have been granted this Development licence, which represents a major landmark in our Tanzanian operations. The Development Licence will also benefit Tanzania, paving the way for a further energy source in a market with high and urgent demand.

Kiliwani North is well situated, close to a major pipeline, and the Development Licence will now enable us to negotiate agreements to access processing and transportation facilities. The existing pipeline has limited capacity but we may expect development of new pipeline infrastructure as a consequence of recent deep water gas discoveries.

The new Development Licence is a significant step for Aminex in commercialising its Tanzanian operations. Within two months we expect to start new exploration drilling at nearby Nyuni Island, targeting a large gas prospect within the Nyuni PSA. Negotiations are being satisfactorily concluded with the Tanzanian authorities for a new, enlarged Nyuni PSA which will replace the existing Nyuni PSA upon its expiry this year. This will be the first-ever renewal of an expired PSA in Tanzania. In the event that the Nyuni-2 well has not been concluded by the expiry of the current PSA, the Tanzanian authorities have indicated that they will provide an extension to the existing PSA to enable the Nyuni-2 well to be completed.
 
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