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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Mnazi Bay Gas Wells Deliver 1st Gas to Tanzania Pipeline


East Africa-focused junior producer Wentworth Resources announced Friday the first gas delivery from its Mnazi Bay Concession in southern Tanzania to the country's new transnational pipeline.
Wentworth said that two wells are now producing, with the three remaining wells expected to be put on production in the coming months. Initial production volumes will be used for commissioning purposes and to fill the pipeline, with production rates expected to increase to 70 million cubic feet per day by October this year and 80 MMcf/d by the end of 2015.
Wentworth added that the Mnazi Bay joint venture partners have agreed payment security terms with Tanzania Petroleum Development Corporation, the buyer of the gas, and various other parties.
Wentworth Managing Director Geoff Bury commented in a company statement:
"We are very pleased to announce that production from Mnazi Bay has now commenced and the Mnazi Bay joint venture is the first supplier to the new transnational pipeline in Tanzania. Concluding the payment guarantee and starting production in our Mnazi Bay gas fields are pivotal events for Wentworth and underpin the long-term viability of our operations in East Africa and our partnership with Maurel & Prom and TPDC.
"Wentworth is well positioned to become a significant gas producer in Tanzania, where supply and demand dynamics offer an opportunity which we and our partners are uniquely placed to realize. We expect to exit 2015 in a strong financial position."

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Mnazi Bay Gas Wells Deliver 1st Gas to Tanzania Pipeline




East Africa-focused junior producer Wentworth Resources announced Friday the first gas delivery from its Mnazi Bay Concession in southern Tanzania to the country's new transnational pipeline.
Wentworth said that two wells are now producing, with the three remaining wells expected to be put on production in the coming months. Initial production volumes will be used for commissioning purposes and to fill the pipeline, with production rates expected to increase to 70 million cubic feet per day by October this year and 80 MMcf/d by the end of 2015.
Wentworth added that the Mnazi Bay joint venture partners have agreed payment security terms with Tanzania Petroleum Development Corporation, the buyer of the gas, and various other parties.
Wentworth Managing Director Geoff Bury commented in a company statement:
"We are very pleased to announce that production from Mnazi Bay has now commenced and the Mnazi Bay joint venture is the first supplier to the new transnational pipeline in Tanzania. Concluding the payment guarantee and starting production in our Mnazi Bay gas fields are pivotal events for Wentworth and underpin the long-term viability of our operations in East Africa and our partnership with Maurel & Prom and TPDC.
"Wentworth is well positioned to become a significant gas producer in Tanzania, where supply and demand dynamics offer an opportunity which we and our partners are uniquely placed to realize. We expect to exit 2015 in a strong financial position."

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Paragon Offshore appoints ISS to drill in Tanzania Songo Songo Island

Paragon M826 can drill to depths of 20,000 ft
US company Paragon Offshore has appointed Inchcape Shipping Services (ISS) to provide marine and logistic services for a new drilling campaign off the Songo Songo Islands, Tanzania.
The Songo Songo project is the first new commercial drilling operation in Tanzania in a number of years. Paragon Offshore has been contracted by Tanzania’s first natural gas producer, PanAfrican Energy on a nine-month campaign.
“We are delighted by our first appointment by Paragon Offshore in East Africa,” said TS Mahesh, General Manager, ISS Tanzania.
“The opportunity to support this drilling campaign takes ISS to the next level in the oil and gas support service sector in Tanzania and boosts our future growth plans.”
The services ISS is providing for Paragon Offshore include full husbandry, crew logistics, visa assistance as well as arranging marine and air charters.
Paragon Offshore, a leading provider of standard specification offshore drilling services, is deploying jack-up rig M826, which was delivered to the field on board semi-submersible vessel, OHT Falcon, to be floated off and pinned to the drilling location.
M826 is expected to clear actively producing wells to enhance output and drill several new wells in the same field
.

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This is How You Can Invest In Natural Gas

Tanzania is a land of unlimited opportunities.And among of opportunity which has struck Tanzanians is the discovery of Natural gas.

 If you want to invest in Tanzania natural gas industry, you right time is now, dont say i will be starting to invest next month or next year, with these massive discovery of  potential natural gas reserves, there are lot of opportunities which can help you to move from where you are to where you want to be.
Today i will show you four ways to invest in Tanzania Natural gas industries.

1. Exploration
You can buy or lease land and invest money in drilling, if you strike  gas, the investment can pay off  10 times over. If not you may lose nearly everything you invested in particular projrct.This kind of investment are suited for those with very high tolerance for investment risk.This plays are highly speculative.

2.Developing.
This project drill near proven reserves, hoping to unlock further value,This are less speculative but there are never any guarantees that their efforts on any one plot of land will bear fruit.

3.Income
These projects involve the acquisition of plots of land, either through lease or purchase, over proven oil and gas reserves, and seek to create a steady stream of income over and above expenses. This is generally the safest way to get involved specifically in the drilling and extraction operations, and is more of an income play than a speculative play. The risk is that the oil or natural gas will run out faster than expected.
This investment is for those seeking a passive income stream but who can take on more risk than those investing in other traditional income generators, like investment grade bonds and annuities.


4. Services and Support

These companies provide a nearly unlimited menu of supporting services to the oil and gas 

industry. Examples include transportation, shipping and logistics companies, pipeline companies, construction and rigging companies, drilling and refining hardware and equipment manufacturers, refiners, and many others.Investing in these companies is similar to investing in any other company involved in B2B services, logistics, technology, and the like. Some of these investments don’t rely on increasing fuel prices to be profitable. For example, pipelines make money by charging a fee per barrel transported. They’ll make roughly the same amount regardless of whether fuel prices rise or fall, as long as demand remains consistent.  Final WordsOil and gas are volatile. When you become involved in these ventures, have a healthy respect for the potential risks and be honest with yourself about your own risk tolerance and investment horizons.

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WENTWORTH RESOURCES REPORTS $4.5 MILLION LOSS AS MNAZI BAY DEVELOPMENT CONTINUES


Wentworth Resources has reported a $4.5 million loss for the six months ended in June 30th 2015 as second quarter exploration dropped and development capital expenditures increased significantly to $2.31 million and $7.04 million, respectively, compared to $3.69 million and $0.30 million, respectively, in 2014.

The loss is also due to an increase in financing costs as the company raised funds for development in Tanzania including $4.36 million of a credit facility to fund operator cash calls for Mnazi Bay development expenditures

According to financial statements released in Wednesday the working capital is also down to $5.77 million compared to $15.84 million at December 31, 2014

On July 1, 2015 the company successfully completed a private placement and issued 15,412,269 new common shares for cash consideration of $0.50 per share for total gross proceeds of $7.64 million.

According to managing director Geoff Bury the new funds further secure the Company’s balance sheet in advance of generating cash flow once gas sales start in the coming weeks.

“The recent successful equity raise completed on July 1 demonstrates confidence in our long-term investment strategy in East Africa.  These new funds further secure the Company’s balance sheet in advance of generating cash flow from natural gas sales to the new government owned transnational pipeline in Tanzania. With discussion in regards to the payment guarantee agreement at an advanced stage, the Company looks forward to bringing gas on stream in the weeks ahead.  We wish to thank shareholders for their continued support during this exciting period in the Company’s history,” he said

Wentworth Resources has 39.925 percent participating interest in exploration and 31.94 percent in production while the operator Marel et Prom has 48.06 percent and 60.075 percent participating interest in exploration and production respectively. The Tanzania Petroleum Development Corporation will also acquire a 20% production interest during production.

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The oil giants are coming to Tanzania



International oil giants are bearing down on East Africa. Off the coast of Tanzania, the discovery of 46.5 trillion cubic feet of natural gas reserves has put the country on the world energy map. The number is expected to rise to 200 trillion cubic feet in the next two years, and eventually transform Tanzania into a middle-income country.

Companies like Exxon Mobil, BG Group and Norway´s Statoil are working with the Tanzanian Petroleum Development Corp (TPDC) in exploration, building infrastructure and construction. However, the real issue is the profit-sharing contracts currently being negotiated between the big oil companies and the government.

The Production-Sharing Agreements (PSA) between the international firms and the TPDC are confidential. However, the draft of a contract with Statoil has leaked. Instead of the expected 50-75%, Tanzania would only be getting 30-50% of the “profit gas.” The government has little to no leverage but everyone knows the country needs the investment big oil could bring.

With elections coming up this year, the oil and gas question is a hot topic. For a politician trying to gain traction it is heaven-sent. From independence until his retirement in 1985 the country was lead by the great Julius Nyerere, whose ideology was socialist and has been called communist. The communitarian mindset lead to many great things and is still tangible in political discourses. However, it also lends itself to misuse.

The pre-election debate on the natural gas question for instance is full of flaming protectionist rhetoric. Here-comes-the-imperialist-west-again-we-must-protect-our-interests-so-vote-for-me-ism seems popular, especially with ruling party CCM. It simplifies things nicely, takes the attention away from failing schools and hospitals and reminds everybody that the problem is, really, external.

In this spirit parliament has just approved the Non-Citizens Employment Regulation Bill making it much harder for foreigners to work in the country. Partnership with various multinational oil giants will certainly see an increase in the number of foreign workers, never-mind the Chinese. Actually, do mind the Chinese, but somebody else can write about that. Ensuring that the ordinary worker gets a piece of the sloppy oil cake is very important, although it remains debatable whether this bill is the most effective way to go about it. One could argue that it discourages investment and that it forces companies to weasel their way around state legislation. Another problem is the lack of skilled workers, especially for managerial positions. Statoil has some great academic exchange and partnership programs, for instance with the University of Dar es Salaam, but is it enough?

Then there is the issue of corruption and lack of transparency. New money is flooding in, especially to the largest city, Dar es Salaam. Although some money ends up in the right hands and is used for the right things there is a definite partiality in Dar to making money vanish. Valiant efforts have and are being made to fight corruption, but corruption penetrates nearly ever aspect of society at all levels. The ecosystem of corruption is deep and old, very old, so old it should have its own museum, celebrating a long, creative and colorful history of soda-buying, palm-greasing and generally being up to something.

Will we see the oil and gas turn Dar into another Lagos? A widening gap between rich and poor could lead to a more divided society, higher crime rates and more violent crimes, even violent conflict. There has already been violence in the Southern Mtwara district over the building of a pipe-line to Dar es Salaam.

I think it is safe to say that for East Africa as a region, the development of the oil sector cannot be seen as only a blessing or only a curse. But over the coming years there will be some pretty rude changes to the region’s geo-politics in which the discoveries of oil and natural gas are a major factor.

The important thing for us mortals is not to loose interest and to continue to apply pressure on the various actors involved. For instance, if oil giants like Statoil are serious about supporting sustainable long-term development they must invest heavily and whole-heartedly in training and succession programs, and they must assist with strong legal support for the governments they are negotiating with, fair fight, fair play. Similarly, politicians who are serious about protecting national interest must think beyond party-interest and short-term political gain in the things that they say and the papers they sign. The situation warrants an appeal to the highest sense of public duty.

As observers, both in the global South and North, it is our job to engage ourselves in the processes, blow whistles and put pressure on decision-makers. What happens in the next few years will determine the fate of the region for at least the next fifty if not beyond.

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