Connection for New Natural gas Pipeline from Mtwra will Led To Electricity Blackout


MANY parts of the country connected to the national grid will experience electricity blackout on Monday as all gas-powered turbines will be switched-off to pave way for connection of the new natural gas pipeline from Mtwara.
The Tanzania Electric Supply Company Limited (Tanesco)’s Managing Director, Engineer Felchesmi Mramba, said the power interruptions will persist for the rest of the week though on smaller extent.
“For the whole of tomorrow (today), gas fired plants will be turned off to allow technicians to connect the new pipeline to new plants at Ubungo,” Engineer Mramba said after a brief tour at Kinyerezi 1 and Ubungo gas plants in Dar es Salaam.
The new plants to be supplied with gas from Mtwara include (Symbion 112MW) and Plant number 2, both at Ubungo area as well as Kinyerezi 1 (150MW).
Plants to be affected by the shut down tomorrow are those supplied with gas from Songo Songo and they include Songas (184MW), Ubungo Plant number 1 (100MW) and Tegeta plant (45MW).
The power-utility boss said the power interruptions are expected to last, though on smaller extent, until September 15, when installations work will be completed.
Natural gas discoveries in Tanzania stand at over 50 trillion cubic feet (tcf) and the resource produces over 40 per cent of power supplied to the national grid while hydro-power and diesel-fired plants account for the remaining percentage.
As the country focuses on gas for power generation, the Tanesco boss assured the public of reliable power and stable prices.
“I would like to apologise to our customers for the interruptions they will face during the next one week but, thereafter, the country will have reliable electricity,” Engineer Mramba noted.
Earlier, the Managing Director of the Tanzania Petroleum Development Corporation (TPDC), Dr James Mataragio, explained that as of yesterday, transportation of gas from Madimba Processing Plant in Mtwara has clocked 3 bars.
“For power generation to commence, we require between 50 and 55 bars of natural gas, which will be realised in the next one week since we are still pumping gas in the pipeline,” Dr Mataragio stated.
With the use of natural gas for power production, the country is expected to save almost one billion US dollars (about 2 trilion/-) which has been used to purchase fuel to operate diesel-powered generation plants.
Construction of the 532-kilometre gas pipeline from Mtwara to Dar es Salaam is expected to allow the country to double its power generation capacity to 3,000MW by next year and the government looks forward to boost the capacity to at least 10,000MW by 2025.

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See Why Discovery of Natural gas in Tanzania Could not bring Too Many Jobs To Tanzanians as they believe




Few weeks ago i got  the text from Tanzanian  who is studying Petroleum engineering in among  of university in China, He was curious to know  about the employment opportunity in natural gas sector in Tanzania? And this is why  i am writing this article.

You know many people believe the discovery of natural gas could give Tanzanians millions of job opportunities, they think, their sons, relatives or themselves can be  employed in  natural gas industry.This  is definetly  untrue. So to day, this article    will clear up  this  common misconception

Oil and gas sector is highly capital intensive industry with risky operations. And Due to the investment of high capital, the oil companies do not prefer to have a large number of employee in order  to make reasonable profit. In the currently findings released by Twaweza organization in a research brief tittled “Great expectation citizens views on the gas sector” shows that, average citizens expect four millon job opportunities from natural gas industry. Their expectation  is beyond of the real situation. Tanzanians can find an example of country like Norway, though of its massive discovery of natural resources,  they  have only 240,000  employee  in their  gas sector. 

You can imagine, Tanzanians expect four millions job in gas sector while Norwagians who currently employed in gas sector is only 240,000. I hope you will agree with me that, the perception of many Tanzanian citizen to get job in gas sector is unrealistic. 

MY FINAL WORDS
 Citizen might be be employed in this sector, but is not at large number  as many citizens believe, few people they could get employment and not many of them. This is the right time for Tanzanians to be aware on this particular matter.

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Ministry Of Energy To Set Up Special Local Content on Oil and Gas Sector




The Ministry of Energy and Minerals plans to set up a special local content on gas and oil unit to enable the public easily access information on various issues concerning the sector.
Senior Supplies Officer (Local Content) at the Ministry of Energy and Minerals, Ms Neema Lungangira made the revelation in Dar es Salaam during a seminar organised by Twaweza Organisation to present and discuss the report titled ‘Great Expectations On Gas Sector And Relevant Policies’.
“Government through the ministry is setting up various strategies to enable the citizens fully participate in the oil and gas sector and one of the strategies is the establishment of the special local content unit,” she said.
Among the issues to be tackled under the unit will include public awareness creation, providing knowledge of public participation in the sector.
The unit will be established under the local content policy and will focus on the providing information from the key document on the sector.
According to the report presented by Twaweza at the seminar, citizens do not have access to full information about Tanzania’s gas sector.
Presenting the report, Executive Director of Twaweza, Mr Aidan Eyakuze said that 53 per cent of citizens think that gas from the new offshore discoveries is already flowing with some thinking that both government and foreign companies are already earning revenues from the gas.
The report based on data from ‘Sauti za Wananchi’ Africa’s first nationally representative high frequency mobile survey also indicate that citizens expect four million jobs and 7.5m/- each from gas deposits.
The report which shows that citizens are significantly misinformed about the potential of the country’s deposits, show that 59 per cent of citizens think that natural gas deposits will improve their lives and a similar (58 per cent) expect government to invest gas revenue into public services.

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Tpdc has Awarded Ion A Contract For Seismic Survey in Ruvuma Delta Region


 ION Geophysical Corporation has announced that the TPDC has awarded ION a contract to acquire 4,058 km of 2D seismic, gravity and magnetic data over offshore blocks 4/1B and 4/1C in the Rovuma Delta region. The award follows an international tender, number PA/031/2014-15/W/06, for a 2D multi-client survey, to be known as 'TPDC Phase I 2015', that is planned to be acquired in fourth quarter 2015.
"We are very excited on the commencement of this program, which is part of a broader campaign aimed at adding value to all of TPDC assets, both onshore and offshore," Dr James Mataragio, Managing Director of TPDC, commented. "This survey and three other surveys carried onshore are 100% funded by TPDC. This marks an important step for TPDC, as a National Oil Company, to begin fully focusing on exploration, development and production. Blocks 4/1B and 4/1C are 100% owned and operated by TPDC, and this new seismic data will be used to assist TPDC with a competitive farmout process, details of which will be announced at a later date."
Joe Gagliardi, Senior Vice President of ION's Ventures group, added, "ION is delighted to have been awarded this contract, which represents a further phase of seismic acquisition, processing and interpretation services to be provided by ION in support of the government's hydrocarbon exploration strategy."

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See Why in Tanzania there is the biggest increases in Demand for Natural gas

      



The aboundance of natural gas reserves in Tanzania  attracts many investors , contractors, equipment suppliers  and consultant firms to offer business opportunities  in Tanzania.  This  implies that, natural gas will continue  to play an increasingly important role in meeting demand for energy in Tanzania.

       There are many reasons for the long term expected  increase in demand for natural gas in Tanzania, which include the following.
1.Increase  in the number of  New homes
New homes increase day after day, family size increase as well, as these new homes built, the consumption of natural gas mounts, and the number of families use natural gas to cook and heat them also increase.Therefore increase of new homes using natural gas is expected drive demand for Natural gas in Tanzania.

2.Expansion of gas based power generation
The largest addition to gas demand in Tanzania where the most of expansion of power are taking place.  forexample the construction of kinyerezi 1 gas fired power plants, they will be supplied gas from Mtwara through Mtwara-Dar es Salaam pipeline, So more gas will be needed to meet the demand as the result of natural gas demand increases.
3. Technological Advancements – Currently, the majority of energy used by the commercial sector is in the form of electricity. Similarly, many common household appliances can only run on electricity. The advancement of natural gas technology in the form of offering natural gas powered applications that may compete with these electric operated appliances may provide a huge increase in demand for natural gas. Natural gas cooling, combined heat and power, and distributed generation are expected to make inroads into those applications that have traditionally been served solely by electricity.

Transportation
Natural gas use in transportation are almost negligible.Although natural gas powered vehicles are very useful for reducing environment pollution compered to fuel powered vehicles. The demand for alternative vehicles fuel vehicles (Including natural gas vehicles) will increase demand in natural gas. Although to accomplish this, technology is required.

MY FINAL WORDS
This general increasing of natural gas demand in Tanzania can be expected to the general growth of economy of Tanzania and improving living standard of residents.

Dear readers we would love to hear your views on all of these



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Swala Concludes Agreement To Exist Zambia




Swala Energy Limited (“Swala” or “Company”) advises that, following a review of its assets and operations and as part of
its continuing cost reduction exercise, it has decided to exit from Zambia so that it can continue to focus on its core areas
of East Africa.
To facilitate this action it has entered into an agreement to relinquish control of Swala Energy (Zambia) Limited (“Swala
Zambia”) to local Zambian shareholders. On completion of the transfer of control, Swala shall be the beneficial owner of
less than 1% of Swala Zambia and will therefore have effectively relinquished its interest and control of the Block 44
license in Zambia.
Under the terms of the agreement, the only Swala director on the board of Swala Zambia will resign immediately upon
change of control and Swala Zambia will change its name.
Dr. David Mestres Ridge, Swala’s CEO, said: “Swala has taken this step as part of a strategic decision to exit Zambia and
to focus its resources and activities in its other highly prospective core areas of East Africa. By transferring control of the
company to local shareholders we are able to exit Zambia in a way that remains constructive and provides the local
shareholders with a foothold in the early stages of the oil exploration industry in their own country. We wish them every
success in their endeavours.”

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Low Crude Price Will Lead To The Shortage of Talents In Many Petroleum Companies



Oil companies have been doing recruiting in  local university. Where by graduates from these Universities have received jobs offer prior to their graduation date. Forexample In Tanzania, graduates from University of Dar es Salaam and Dar es Salaam Institute of Technology have received these job offer from oil companies.

In order to cope with this low level price ,oil companies has been  giving up  to work with local universities  since june last year. The truth is, Many oil companies will have scarcity of talents  they used to find  from  local universities. And when I say talents, I mean from operators, geologist engineers ,accountants, human resources people  and all who have background unrelated with oil and gas industry

MY FINAL THOUGHT
  Currently I am very anxious about this low crude price.If this  downturn will be  long slump,probably  it could affect graduates jobs prospect and oil companies can’t find the talents they need. But if the slump will be short, petroleum companies could find the talents they need and this will give graduate future they are trying to seek for.

Dear readers we would love to hear your views on all of these


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Swala Gets Extension to its Kilosa-Kilombero, Pangani Licenses in Tanzania


Swala Energy Limited (Swala or the Company) reported Monday that the Tanzanian Ministry of Energy and Mining (MEM) has agreed to extend the period within which an exploration well must be drilled in each of the Kilosa-Kilombero and Pangani licenses in Tanzania to Feb. 20, 2017. This one-year extension is to be deducted from the 4-year additional exploration extension period currently due to commence Feb. 20, 2016, resulting in the additional exploration period having a duration of three years.
Under the Production Sharing Agreements (PSAs) that govern activity on each of these two licenses, the Joint Venture (JV) was originally obliged to drill an exploration well in each license by Feb. 20,. 2016. The JV carried out a seismic survey that was completed in December 2014 and in the same month the JV and the Tanzanian Petroleum Development Corporation (TPDC) agreed to carry out the processing and interpretation of the seismic data during the first half of 2015. This left relatively little time in which to confirm drilling locations and secure long lead-time items, and the JV therefore requested TPDC and MEM to allow it to complete its exploration drilling obligations in the next exploration phase. Both entities have now consented to this modification.
Dr. David Mestres Ridge, Swala CEO, said: “The joint venture has been actively preparing to drill the two licenses and we are grateful to MEM and TPDC for their pragmatic flexibility in respect of the drilling timetable. In June, Swala Oil and Gas (Tanzania) plc appointed an Operations Manager with responsibility for the drilling campaign and it is in the process of engaging a consultant to carry out the Environmental Impact Assessments for the drill locations. In parallel, it has been further interpreting the seismic data so as to optimize those eventual drilling locations. The extension of the time limit for completing the exploration drilling allows the JV to continue its preparatory work with the comfort that all steps are being taken to maximise the chances of success and minimise costs whilst not compromising on either health, safety or environmental integrity.”


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Maurel & Prom Eyes Further Merger After MPI Deal To Cope With Low Oil Price

 French energy exploration and production company Maurel & Prom said it was reabsorbing its former Nigerian unit MPI as a first step towards tripling in size to cope with the impact of a plunge in the oil price.
Maurel & Prom said on Thursday it was buying MPI in a deal that would give MPI investors one Maurel & Prom share for two shares held. MPI would also pay a 0.45 euro exceptional cash dividend per share before the merger.





Chief Executive Jean-Francois Henin said on Friday that the group would work intensively in the coming weeks to secure another deal with a competitor of its stature.
"Companies the size of MPI, or MPI plus Maurel & Prom, are no longer big enough to remain independent," Henin said. "We can survive, but in terms of the future for our shareholders, it's 


absolutely necessary to build a larger, more diversified group."
Maurel & Prom and MPI face a tough macroeconomic environment following a 60 percent drop in oil prices in the last year. They see expansion as the route to better access to financing and greater opportunities for external growth.
"Everyone is talking to everyone, because everyone feels the same need," Henin said. "All players in the sector today are considering how to combine forces with someone else and what are the best possible combinations."
The world's top oilfield services provider, Schlumberger , said this week it would buy equipment maker Cameron International for $14.8 billion to offer a broader range of products at lower prices to oil companies slashing budgets.
Its rivals Halliburton and Baker Hughes announced a $35 billion tie-up last November.
Maurel & Prom said the MPI deal, due to be completed in December, would add Nigeria to its operations in Gabon and Tanzania, giving it presence in three key sub-Saharan oil and gas countries. MPI also had a "strong cash position" with no debt, it said.
The combined company would have an enterprise value close to $2 billion, the industry's fourth largest after Tullow Oil, Premier Oil and Genel Energy, or the fifth-biggest by market capitalisation, Maurel & Prom said.
The deal was unanimously approved by the boards of Maurel & Prom and MPI, and will be put to a shareholders' vote in December.

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Aminex reported a loss of $0.61 million for the six months ended 30 June 2015 - updated Tanzania operations




Aminex has announced its half-yearly report for the six months ended 30 June 2015 and provided an update on its operations in Tanzania. The loss for the period was $0.61 million compared with $4.74 million for the six month period ended 30 June 2014.

HIGHLIGHTS: 

FINANCIAL

$2.45 million (net of expenses) equity issue successfully completed
Completion of sale of 6.5% interest in Kiliwani North Development Licence for $3.5 million to Solo Oil plc
Corporate loan facility extended until 31 January 2016
Loss for period $606,000 (2014: $4.74 million)
Ongoing discussions with financial institution for provision of development capital for Ruvuma and restructuring current debt facility 

OPERATIONAL

Competent Persons Report assigns 98 BCF gross (70 BCF net) Contingent Resources to Kiliwani North-1 and Ntorya-1
Gas Sales Agreement expected to be signed with first gas from Kiliwani North in Q3 2015 
Ongoing planning for Ntorya-2 and Ntorya-3 appraisal drilling to deliver near term revenues
Nyuni Area PSA work programme varied and deferral of drilling obligations approved by Ministry of Energy and Mines
Sale of Egyptian interest into a royalty position in August 2015 

Aminex CEO Jay Bhattacherjee commented: 

'Aminex is looking forward to first gas production from Kiliwani North within the current quarter in line with the timetable issued by the Tanzanian authorities following the commencement of production into the new main gas pipeline in the south of the country. The signing of the Kiliwani North Gas Sales Agreement, expected in the near future, should also assist the acceleration of the Company’s other activities, particularly appraisal drilling at Ntorya. Your Board believes that the steps we are taking will be significant for the growth of the Company and underline its strategy to focus on key assets in Tanzania, ever seeking new production and development opportunities. We are grateful for the continuing support of our shareholders and we look forward to providing positive updates in due course.'

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TANZANIA’S KILIWANI NORTH GAS AGREEMENT TO BE SIGNED IN Q3 2015


Production from the Kiliwani North Field could start in 2015 with the Tanzanian authorities having advised that production should start within Q3 2015 now that the main pipeline has been pressure tested and with the Gas Agreement expected to be signed this quarter.

The completion of a Gas Sales Agreement (GSA) is subject to finalizing satisfactory payment protection guarantees and, following the recent start of production into the pipeline in the south of the country which Aminex says it believes that a GSA should be signed in time to achieve the near-term production timetable advised by the Tanzania Petroleum Development Corporation (TPDC).

According to the latest half year report released today the company also believes that the agreement will help increase the pace at Ntorya appraisal wells.

“Aminex is looking forward to first gas production from Kiliwani North within the current quarter in line with the timetable issued by the Tanzanian authorities following the commencement of production into the new main gas pipeline in the south of the country. The signing of the Kiliwani North Gas Sales Agreement, expected in the near future, should also assist the acceleration of the Company’s other activities, particularly appraisal drilling at Ntorya,” says Aminex CEO Jay Bhattacherjee.

Kiliwani North where Aminex holds 65% withholding interest through its Tanzania subsidiary Ndovu  Resources is close to the producing Songo-Songo gas field and new gas processing and transportation facilities and is only awaiting the signing of the gas sales agreement to sell gas to the market.

Other partners in the Joint Venture include Solo Oil which it recently offloaded to 6.5% of KNDL for $3.5 million having received formal approval from the Tanzanian Authorities to sell up to 13% of its interest in Kiliwani North Development Licence (KNDL) to the company.

As per the last a technical evaluation on the resources of Kiliwani North Development Licence by Senergy, an independent oil and gas consultancy firm the PSA PMean Gas Initially in Place (GIIP) of 44 BCF (gross) of which 28 BCF (gross) booked as Contingent Resources (Best Estimate, 2C)

 

As a result of the share placing in June 2015, the Company says ithas sufficient funding for the current level of operations.

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Exploration of Natural Gas

The practice of locating natural gas and petroleum deposits has been transformed dramatically in the last 20 years with the advent of extremely advanced, ingenious technology. In the early days of the industry, the only way of locating underground petroleum and natural gas deposits was to search for surface evidence of these underground formations. Those searching for natural gas deposits were forced to scour the earth, looking for seepages of oil or gas emitted from underground before they had any clue that there were deposits underneath. However, because such a low proportion of petroleum and natural gas deposits actually seep to the surface, this made for a very inefficient and difficult exploration process. As the demand for fossil fuel energy has increased dramatically over the past years, so has the necessity for more accurate methods of locating these deposits.
Sources of Data
Technology has allowed for a remarkable increase in the success rate of locating natural gas reservoirs. In this section, it will be outlined how geologists and geophysicists use technology and knowledge of the properties of underground natural gas deposits to gather data that can later be interpreted and used to make educated guesses as to where natural gas deposits exist. However, it must be remembered that the process of exploring for natural gas and petroleum deposits is characteristically an uncertain one, due to the complexity of searching for something that is often thousands of feet below ground.
Surface Geology Source: Anadarko Petroleum Corporation
Exploration for natural gas typically begins with geologists examining the surface structure of the earth, and determining areas where it is geologically likely that petroleum or gas deposits might exist. It was discovered in the mid 1800s that ‘anticlinal slopes’ had a particularly increased chance of containing petroleum or gas deposits. These anticlinal slopes are areas where the earth has folded up on itself, forming the dome shape that is characteristic of a great number of reservoirs. By surveying and mapping the surface and sub-surface characteristics of a certain area, the geologist can extrapolate which areas are most likely to contain a petroleum or natural gas reservoir. The geologist has many tools at his disposal to do so, from the outcroppings of rocks on the surface or in valleys and gorges, to the geologic information attained from the rock cuttings and samples obtained from the digging of irrigation ditches, water wells, and other oil and gas wells. This information is all combined to allow the geologist to make inferences as to the fluid content, porosity, permeability, age, and formation sequence of the rocks underneath the surface of a particular area. For example, in the picture shown, a geologist may study the outcroppings of rock to gain insight into the geology of the subsurface areas.
A Seismograph Source: U.S. Geological Survey
For more information on geology in general visit the United States Geological Survey. For more information on petroleum geology visit the American Association of Petroleum Geologists (AAPG).
Once the geologist has determined an area where it is geologically possible for a natural gas or petroleum formation to exist, further tests can be performed to gain more detailed data about the potential reservoir area. These tests allow for the more accurate mapping of underground formations, most notably those formations that are commonly associated with natural gas and petroleum reservoirs. These tests are commonly performed by a geophysicist, one who uses technology to find and map underground rock formations.
Arguably the biggest breakthrough in petroleum and natural gas exploration came through the use of basic seismology. Seismology refers to the study of how energy, in the form of seismic waves, moves through the Earth’s crust and interacts differently with various types of underground formations. In 1855, L. Palmiere developed the first ‘seismograph’, an instrument used to detect and record earthquakes. This device was able to pick up and record the vibrations of the earth that occur during an earthquake. However, it wasn’t until 1921 that this technology was applied to the petroleum industry and used to help locate underground fossil fuel formations.
Placing Geophones Source: API
The basic concept of seismology is quite simple. As the Earth’s crust is composed of different layers, each with its own properties, energy (in the form of seismic waves) traveling underground interacts differently with each of these layers. These seismic waves, emitted from a source, will travel through the earth, but also be reflected back toward the source by the different underground layers. Through seismology, geophysicists are able to artificially create vibrations on the surface and record how these vibrations are reflected back to the surface, revealing the properties of the geology beneath.
An analogy that makes intuitive sense is that of bouncing a rubber ball. A rubber ball that is dropped on concrete will bounce in a much different way than a rubber ball dropped on sand. In the same manner, seismic waves sent underground will reflect off dense layers of rock much differently than extremely porous layers of rock, allowing the geologist to infer from seismic data exactly what layers exist underground and at what depth. While the actual use of seismology in practice is quite a bit more complicated and technical, this basic concept still holds.
Here is a more detailed overview of seismic exploration.
Seismology in Practice Source: API
Onshore Seismology
In practice, using seismology for exploring onshore areas involves artificially creating seismic waves, the reflection of which are then picked up by sensitive pieces of equipment called ‘geophones’ that are embedded in the ground. The data picked up by these geophones is then transmitted to a seismic recording truck, which records the data for further interpretation by geophysicists and petroleum reservoir engineers. The drawing shows the basic components of a seismic crew. The source of seismic waves (in this case an underground explosion) creates that reflect off the different layers of the Earth, to be picked up by geophones on the surface and relayed to a seismic recording truck to be interpreted and logged.
Although the seismograph was originally developed to measure earthquakes, it was discovered that much the same sort of vibrations and seismic waves could be produced artificially and used to map underground geologic formations. In the early days of seismic exploration, seismic waves were
A Seismic Vibrator Truck Source: Natural Resources Canada
created using dynamite. These carefully planned, small explosions created the requisite seismic waves, which were then picked up by the geophones, generating data to be interpreted by geophysicists, geologists, and petroleum engineers.
Recently, due to environmental concerns and improved technology, it is often no longer necessary to use explosive charges to generate the needed seismic waves. Instead, most seismic crews use non-explosive seismic technology to generate the required data. This non-explosive technology usually consists of a large heavy-wheeled or tracked-vehicle carrying special equipment designed to create a large impact or series of vibrations. These impacts or vibrations create seismic waves similar to those created by dynamite. In the seismic truck shown, the large piston in the middle is used to create vibrations on the surface of the earth, sending seismic waves that are used to generate useful data.
Offshore Seismology
The same sort of process is used in offshore seismic exploration. When exploring for natural gas that may exist thousands of feet below the seabed floor, which may itself be thousands of feet below sea level, a slightly different method of seismic exploration is used. Instead of trucks and geophones, a ship is used to pick up the seismic data and hydrophones are used to pick up seismic waves underwater. These hydrophones are towed behind the ship in various configurations depending on the needs of the geophysicist. Instead of using dynamite or impacts on the seabed floor, the seismic ship uses a large air gun, which releases bursts of compressed air under the water, creating seismic waves that can travel through the Earth’s crust and generate the seismic reflections that are necessary.
offshore_seismic_exploration
Magnetometers
In addition to using seismology to gather data concerning the composition of the Earth’s crust, the magnetic properties of underground formations can be measured to generate geological and geophysical data. This is accomplished through the use of magnetometers, which are devices that can measure the small differences in the Earth’s magnetic field. In the early days of magnetometers, the devices were large and bulky, and only able to survey a small area at a time.
Gravimeters
In addition to using variances in the Earth’s magnetic field, geophysicists can also measure and record the difference in the Earth’s gravitational field to gain a better understanding of what is underground. Different underground formations and rock types all have a slightly different effect on the gravitational field that surrounds the Earth. By measuring these minute differences with very sensitive equipment, geophysicists are able to analyze underground formations and develop clearer insight into the types of formations that may lie below ground, and whether or not the formations have the potential for containing hydrocarbons like natural gas.
Exploratory Wells
The best way to gain a full understanding of subsurface geology and the potential for natural gas deposits to exist in a given area is to drill an exploratory well. This consists of digging into the Earth’s crust to allow geologists to study the composition of the underground rock layers in detail. In addition to looking for natural gas and petroleum deposits by drilling an exploratory well, geologists also examine the drill cuttings and fluids to gain a better understanding of the geologic features of the area. Logging, explained below, is another tool used in developed as well as exploratory wells. Drilling an exploratory well is an expensive, time consuming effort. Therefore, exploratory wells are only drilled in areas where other data has indicated a high probability of petroleum formations. For more information on the process of drilling natural gas wells, click here.
Logging
Logging refers to performing tests during or after the drilling process to allow geologists and drill operators to monitor the progress of the well drilling and to gain a clearer picture of subsurface formations. There are many different types of logging, in fact; over 100 different logging tests can be performed, but essentially they consist of a variety of tests that illuminate the true composition and characteristics of the different layers of rock that the well passes through. Logging is also essential during the drilling process. Monitoring logs can ensure that the correct drilling equipment is used and that drilling is not continued if unfavorable conditions develop.
It is beyond the scope of this website to get into detail concerning the various types of logging tests that can be performed. Various types of tests include standard, electric, acoustic, radioactivity, density, induction, caliper, directional and nuclear logging, to name but a few. Two of the most prolific and often performed tests include standard logging and electric logging.
Standard logging consists of examining and recording the physical aspects of a well. For example, the drill cuttings (pieces of rock displaced by the drilling of the well) are all examined and recorded, allowing geologists to physically examine the subsurface rock. Also, core samples are taken by lifting a sample of underground rock intact to the surface, allowing the various layers of rock and their thickness to be examined. These cuttings and cores are often examined using powerful microscopes that can magnify the rock up to 2,000 times. This allows the geologist to examine the porosity and fluid content of the subsurface rock, and to gain a better understanding of the earth in which the well is being drilled.
Electric logging consists of lowering a device used to measure the electric resistance of the rock layers in the ‘down hole’ portion of the well. This is done by running an electric current through the rock formation and measuring the resistance that it encounters along its way. This gives geologists an idea of the fluid content and characteristics. A newer version of electric logging, called induction electric logging, provides much the same types of readings, but is more easily performed and provides data that is more easily interpreted.
An Example of Well Log Data Source: U.S. Geological Survey
An example of the data obtained through various forms of logging is shown below. In this representation, the different columns indicate the results of different types of tests. The data is interpreted by an experienced geologist, geophysicist, or petroleum engineer, who is able to learn from what appear as ‘squiggly’ lines on the well data readout.
The drilling of an exploratory or developing well is the first contact that a geologist or petroleum engineer has with the actual contents of the subsurface geology. Logging, in its many forms, uses this opportunity to gain a fuller understanding of what actually lies beneath the surface. In addition to providing information specific to that particular well, vast archives of historical logs exist for geologists interested in the geologic features of a given or similar area.
To get more in-depth and technical information on well logging, click here.
Data Interpretation
There are many sources of data and information for the geologist and geophysicist to use in the exploration for hydrocarbons. However, this raw data alone would be useless without careful and methodical interpretation. Much like putting together a puzzle, the geophysicist uses all of the sources of data available to create a model, or educated guess, as to the structure of the layers of rock under the ground. Some techniques, including seismic exploration, lend themselves well to the construction of a hand- or computer-generated visual interpretation of an underground formation. Other sources of data, such as that obtained from core samples or logging, are taken into account by the geologist when determining the subsurface geological structures. Despite the amazing evolution of technology and exploration techniques, the only way of being sure that a petroleum or natural gas reservoir exists is to drill an exploratory well. Geologists and geophysicists can make their best guesses as to the location of reservoirs, but these are not infallible.
2-D Seismic Interpretation
Two-dimensional seismic imaging refers to geophysicists using the data collected from seismic exploration activities to develop a cross-sectional picture of the underground rock formations. The geophysicist interprets the seismic data obtained from the field, taking the vibration recordings of the seismograph and using them to develop a conceptual model of the composition and thickness of the various layers of rock underground. This process is normally used to map underground formations, and to make estimates based on the geologic structures to determine where it is likely that deposits may exist.
Another technique using basic seismic data is known as ‘direct detection.’ In the mid-1970s, it was discovered that white bands, called ‘bright spots’, often appeared on seismic recording strips. These white bands could indicate deposits of hydrocarbons. The nature of porous rock that contains natural gas could often result in reflecting stronger seismic reflections than normal, water-filled rock. Therefore, in these circumstances, the actual natural gas reservoir could be detected directly from the seismic data. However, this does not hold universally. Many of these ‘bright spots’ do not contain hydrocarbons, and many deposits of hydrocarbons are not indicated by white strips on the seismic data. Therefore, although adding a new technique of locating petroleum and natural gas reservoirs, direct detection is not a completely reliable method.
Computer Assisted Exploration
One of the greatest innovations in the history of petroleum exploration is the use of computers to compile and assemble geologic data into a coherent ‘map’ of the underground. Use of this computer technology is referred to as ‘CAEX’, which is short for ‘computer assisted exploration’.
Geologist Using Interactive 3-D Seismic Source: BP
With the development of the microprocessor, it has become relatively easy to use computers to assemble seismic data that is collected from the field. This allows for the processing of very large amounts of data, increasing the reliability and informational content of the seismic model. There are three main types of computer-assisted exploration models: two-dimensional (2-D), three-dimensional (3-D), and most recently, four-dimensional (4-D). These imaging techniques, while relying mainly on seismic data acquired in the field, are becoming more and more sophisticated. Computer technology has advanced so far that it is now possible to incorporate the data obtained from different types of tests, such as logging, production information, and gravimetric testing, which can all be combined to create a ‘visualization’ of the underground formation. Thus geologists and geophysicists are able to combine all of their sources of data to compile one clear, complete image of subsurface geology. An example of this is shown where a geologist uses an interactive computer generated visualization of 3-D seismic data to explore the subsurface layers.
3-D Seismic Imaging
One of the biggest breakthroughs in computer-aided exploration was the development of three-dimensional (3-D) seismic imaging. Three-D imaging utilizes seismic field data to generate a three dimensional ‘picture’ of underground formations and geologic features. This, in essence, allows the geophysicist and geologist to see a clear picture of the composition of the Earth’s crust in a particular area. This is tremendously useful in allowing for the exploration of petroleum and natural gas, as an actual image could be used to estimate the probability of formations existing in a particular area, and the characteristics of that potential formation. This technology has been extremely successful in raising the success rate of exploration efforts. In fact, using 3-D seismic has been estimated to increase the likelihood of successful reservoir location by 50 percent.
An Example of 3-D Seismic Imaging Technology Source: BP
Although this technology is very useful, it is also very costly. Three-D seismic imaging can cost hundreds of thousands of dollars per square mile. The generation of 3-D images requires data to be collected from several thousand locations, as opposed to 2-D imaging, which only requires several hundred data points. As such, 3-D imaging is a much more involved and prolonged process. Therefore, it is usually used in conjunction with other exploration techniques. For example, a geophysicist may use traditional 2-D modeling and examination of geologic features to determine if there is a probability of the presence of natural gas. Once these basic techniques are used, 3-D seismic imaging may be used only in those areas that have a high probability of containing reservoirs.
Seismic Imaging in Practice Source: BP
In addition to broadly locating petroleum reservoirs, 3-D seismic imaging allows for the more accurate placement of wells to be drilled. This increases the productivity of successful wells, allowing for more petroleum and natural gas to be extracted from the ground. In fact, 3-D seismic can increase the recovery rates of productive wells to 40-50 percent, as opposed to 25-30 percent with traditional 2-D exploration techniques.
In addition to broadly locating petroleum reservoirs, 3-D seismic imaging allows for the more accurate placement of wells to be drilled. This increases the productivity of successful wells, allowing for more petroleum and natural gas to be extracted from the ground. In fact, 3-D seismic can increase the recovery rates of productive wells to 40 to 50 percent or greater, as opposed to 25 to 30 percent with traditional 2-D exploration techniques.
Three-D seismic imaging has become an extremely important tool in the search natural gas. By 1980, only 100 3-D seismic imaging tests had been performed. However, by the mid 1990s, 200 to 300 3-D seismic surveys were being performed each year. In 1996, in the Gulf of Mexico, one of the largest natural gas-producing areas in the U.S., nearly 80 percent of wells drilled in the Gulf were based on 3-D seismic data. In 1993, 75 percent of all onshore exploratory surveys conducted used 3-D seismic imaging.
2-D Seismic Imaging
Two-dimensional (2-D) computer-assisted exploration includes generating an image of subsurface geology much in the same manner as in normal 2-D data interpretation. However, with the aid of computer technology, it is possible to generate more detailed maps more quickly than by the traditional method. In addition, with 2-D CAEX it is possible to use color graphic displays generated by a computer to highlight geologic features that may not be apparent using traditional 2-D seismic imaging methods.
While 2-D seismic imaging is less complicated and less detailed than 3-D imaging, it must be noted that 3-D imaging techniques were developed prior to 2-D techniques. Thus, although it does not appear to be the logical progression of techniques, the simpler 2-D imaging techniques were actually an extension of 3-D techniques, not the other way around. Because it is simpler, 2-D imaging is much cheaper, and more easily and quickly performed, than 3-D imaging. Because of this, 2-D CAEX imaging may be used in areas that are somewhat likely to contain natural gas deposits, but not likely enough to justify the full cost and time commitment required by 3-D imaging.
4-D Seismic Imaging
Geologists and Geophysicists: Assembling Data Source: NGSA
One of the latest breakthroughs in seismic exploration and the modeling of underground rock formations has been the introduction of four-dimensional (4-D) seismic imaging. This type of imaging is an extension of 3-D imaging technology. However, instead of achieving a simple, static image of the underground, in 4-D imaging the changes in structures and properties of underground formations are observed over time. Since the fourth dimension in 4-D imaging is time, it is also referred to as 4-D ‘time lapse’ imaging.
Various seismic readings of a particular area are taken at different times, and this sequence of data is fed into a powerful computer. The different images are amalgamated to create a ‘movie’ of what is going on under the ground. By studying how seismic images change over time, geologists can gain a better understanding of many properties of the rock, including underground fluid flow, viscosity, temperature and saturation. Although very important in the exploration process, 4-D seismic images can also be used by petroleum geologists to evaluate the properties of a reservoir, including how it is expected to deplete once petroleum extraction has begun. Using 4-D imaging on a reservoir can increase recovery rates above what can be achieved using 2-D or 3-D imaging. Where the recovery rates using these two types of images are 25 to 30 percent and 40 to 50 percent respectively, the use of 4-D imaging can result in recovery rates of 65 to 70 percent.
Now that we have taken a look at how natural gas deposits are found, the next step in the natural gas line is the process of extraction

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Maurel & Prom started production at the Mnazi Bay gas field in Tanzania

Maurel & Prom (operator, 48.06% interest) on Thursday opened the first two wells of the Mnazi Bay gas field that will deliver the Madimba processing centre (operated by GASCO, a subsidiary of TPDC), the entry point of the gas pipeline linking Mtwara to Dar es Salaam. 

This production output will initially be used solely for commissioning operations for the new TPDC/GASCO facilities, but is then expected to ramp up rapidly to 70 million cubic feet per day with the connection of two additional wells in October 2015. A production capacity of 80 million cubic feet per day is expected by the end of the year. In the next few months, Maurel & Prom will analyse how the production output and reservoirs are behaving, and given the encouraging results from the MB4 well drilled in the first half of 2015 would define an additional production capacity. 

Under the Gas Sales Agreement signed on 12 September 2014, for which financial guarantees are now in place, the sale price has been set at US$3.00 per million BTU, or around US$3.07 per thousand cubic feet, rising in line with the US CPI industrial index. 

Maurel & Prom went into Tanzania in July 2004 with the Bigwa-Rufiji-Mafia permit in which it holds a 60% interest. In 2009, it strengthened its position with the acquisition from Artumas of the Mnazi Bay permit, in which its operated interest is 48.06%. 

The Mnazi Bay permit is governed by a production sharing contract dating from 18 May 2004. The development licence was granted on 26 October 2006 for a 25-year term, renewable once for a further period of 20 years. Royalties are 12.5% and are covered by TPDC under the terms of the agreements in place. Cost Gas, the share of production output allocated to the recovery of past costs, is 60%. Unrecovered past costs for Maurel & Prom amounted to US$152 million as at 30 June 2015. Profit Gas payable to Maurel & Prom is 30% (% for a production over 10 MMcf/day). 

In 10 years, Maurel & Prom has built a strong reputation as an onshore oil operator with the Tanzanian authorities and local players. The Group is known for being a forerunner in an area that is thought to have very significant gas potential. This new contribution to the Group’s cash flow, a stable long-term addition to its income from Gabon, is a step in the implementation of Maurel & Prom’s growth strategy and cash flow source diversification.

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One Simple thing to Keep in Your Mind and It will help You To Work In Petroleum Industry

 Petroleum industries require personnel with diverse academic background, It involve  both technical personnel (such as enigineers , land survey, geomatics) and non technical personnel ( such as Lawyer, human resources accounting marketing environmental and safety, banker, transportation, security insurance and so on.)

You as a Lawyaer or accountant you might  be interesting to join or make career change into oil  and gas industry or for those with engineering background unrelated to oil and gas industries or no field experience but you  would like  to join into this industry. To day I will share with you one thing in order to help you join into petroleum industry.

Lets go,
           Generally, company  would  hire you and train you,  even though the company need people, it does not mean they  would like to start  completely from scratch. This applies to both technical and non technical personnel. The Company would need some who having understanding of petroleum field.  You should have a basic knowledge of petroleum industry.To increase chances to get your dream  job  in petroleum industry you must having a basic understanging of terminology of oil field such as a word HYDROCARBON and so on.

What you have To do?

As we have already seen above, for those with courses unrelated to oil and gas industries like  electrical engineers and accounting, they must have basic understanding of this petroleum industries in order to join the industry. May be you ask yourself. “How  i would manage to know all of these basic concepts in oil and gas industry. The answer is very straight forward. A great way for you to satand out is would be to learn that on your own time.With these information age  you can learn any thing you want to learn, you can know any thing you want to know. Now days every thing is on the internet, you can learn millions of things simply by touch your mouse or mobile device.
MY FINAL WORDS
If you don’t know where to start and you are willing to learn the basic of petroleum industries, you should contact me through Boffuhussein@gmail.com, and i am going to show you the area where you will find those stuff

Dear readers, We would love to hear your views on all of these

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Bad and Good News To All Graduates Who are Currently Looking For Job In Petroleum Industry



As I am writing this article  a number of employees  all over the  world including Tanzanians has lost their jobs  in different  petroleum companies like  schlumberger, baker Hughes and Halliburton as oil price fell from $ 100-per barrel high last year to near $ 40 this weak. On other sides, graduates from different universities in Tazanania, especially those who took petroleum engineering and petroleum geosciences are still looking for opportunity to begin their career in these oil and gas companies. Both graduates and those who has lost their jobs in these companies worry about their prospects as oil price remain below $ 50 per barrel. What the are going through their  mind , is this industry going to give them the opportunity that they are trying to seek?
If you are job seeker, or you want to make career change into petroleum industry, or you are graduate and you have passion for beginning your career in this industry, today I have bad and good news for you.


BAD NEWS
A newly  released analysis of hiring trend has revealed oil &gas companies has reduced their number of job posting.
Big oil companies have slowed down on hiring. World wide, layoffs in the oil &gas industries  have topped 176,000, according to swift world wide resources, oil and gas industry staffing firm that has been tracking the industry jobs cuts.

Big oil company company like CHEVRON recently  announced plans to slash 1500 jobs.Royal Dutch Shell, revealed that it’s axing more than 6500 jobs. The way i see things as layoff mount, graduates will face intense competition for fewer jobs.

 GOOD NEWS
Its very clear to every one that this petroleum industry is the one of the highest  paying industry, new graduates can make  as  much as $ 130,000  (U.S) a year, that why graduates are fighting  to be employed in this industry and others suffer from severe headache when lost their job in petroleum companies.
Even with this low crude price, Oil companies are not abandoning their recruiting effort, more engineers and more kind of technicians are still needed to address future challenges.So what you should do, you have to work hard and you are having to look for alternative. You should use your mind wisely to think on what to do with this current situation.

MY FINAL WORDS
Petroleum industry is very complex and volatile industry. If you are looking for career in this industry you must  prepare  to accept all challenges and risks that you might face. The industry does not have secure job. Since because you can lose your job abruptly.



Dear readers, We would love to hear your views on all of these.

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