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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Efforts to Build Oil,Gas Local Content.

 

The  African Capacity Building Foundation(ACBF) has hailed current government efforts to build  a strong local content legal and policy framework to guide the oil and  gas sector.

Prof  Emmanuel Nnadozie  the Executive Secretary said the local content policies and legislations would ensure the local populace are active in the oil and gas value chain.

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See Where does Petroleum Come from

We are going to talk Origin of petroleum

But First  I will talk about the origin of the world itself, Rock outcrop at the surface of the earth have been producing oil for century and this oil was known as rock oil, Because at that period oil was seeping out the rock, But at the middle of 19 century some body called the word Petroleum, Petro is greak word meaning rock and leum is latin word meaning oil and they combine these two word called petroleum. Then become popular word and eventually the word adopted by industry itself and now is known as petroleum industry

 Where does petroleum come from?

 There are two theory about where petroleum come from

·         Organic theory :State that oil was developed over millions of years from organic materials from remains of animals and plants that were once alive, the proteins life floaded in the sea like plankton and algae then die and fed to the bottom of the ocean.

·         Inorganic theory In this teory the source of oil is from chemical reactions between minerals, In the laboratory scientists have been able to make methane gas by applying heat under high pressure to minerals even though a very small percentage of oil today may have developed from in organic chemical reactions between minerals the source of most our oil appear to be the result of organic decomposition.

These decomposition is the decay of the remains of animals and plants that died millions of years ago

                When am talking about animals that was died and generate oil am talking about tiny microscopic animals that live in the sea eg plankton and algae

    These animals die under special circumstances, and what do I mean by that?

         As you know when most animals die other animals and bacteria arrive to consumes the remains living nothing. In the shallow water where these animal live, sweep current come on and push these down to where there is no enough oxygen to live and so they die. These animals went from an aerobic environment where there is plenty of oxygen to an anaerobic environment where there is little oxygen where all die at the same time.

In an anaerobic there also not enough oxgen for most animals microbs or bacteria to come along and eat the remains of planktons and algae so the just lie there until the get buried by particles of silt and sand.

Over period of millions of years these layers of remains in sand and silt particles are buried and curved by more layer until first layer become very deep. All the way of these layer to press down and squeezed caused increased in pressure and temperature until the sedimentary layers are formed into shale, sediment change into rock, and little dead microbs get cooked into hydrocarbon.

These is the theory of how petroleum and coal is made.

Oil is made from animal like plankton

Coal is made from vegetation like plants

Gas is made from deeper formation where microbes are cooked longer

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CAG TO AUDIT OIL AND GAS COMPANIES

Dar es Salaam: The Controller and Auditor (CAG) will carry a special audit on oil and gas industry.

CAG Mussa Assad said citizens from areas with gas and oil should benefit from companies operating in their locales.

“This sector [oil and gas] is very crucial,” he said, adding “we will make sure they are controlled accordingly to give to the society what it really deserves.”
Assad said his office might fail to compete auditing in some offices following budget deficit.

Despite receive less from treasury; the CAG remains adamant that his office will execute its duties.

“With the little we have we will make sure we implement fruitful projects which will benefit citizen but we will not be able to finish all of projects.”

For this fiscal year the CAG office were scheduled to receive TZS 86 billion but only received TZS 76 an amount which will not be enough for all projects set for this year.

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The Ministry of Energy & Mineral Development has announced that the “Uganda International Oil & Gas Summit” (UIOGS) will be held in Kampala on 16-17 September 2015.
With a first-class conference programme led by Government, Public Sector and Private Sector industry leaders; the Summit marks an important point on the global calendar.
UIOGS is held under the Patronage of Eng. Irene Muloni,Minister of Energy and Mineral Development; and will be used by the Ministry as its official platform for meeting international companies and presentation of the multitude of energy projects presently ongoing or planned for in Uganda.
Uganda has much to offer the global oil and gas community and 2015 is an exciting year as the country moves towards commercial production. Uganda is blessed with its natural resources and now has an estimated 6.5 billion barrels of oil in place, a high drilling success rate of 85%, advanced refinery plans, vast acreage of underexplored areas rich in hydrocarbons and much to look forward to with the new licensing rounds.
The UOGS programme will provide an invaluable insight into all the major issues, challenges and opportunities including:

• Focus on the licensing rounds and new opportunities
• Update on existing fields and exploration success
• Financial and regulatory frameworks
• Uganda’s Refinery Project – 60,000 bpd by 2020
• Move to commercial production
• Supporting the oil and gas industry through a skilled workforce and local content
• Infrastructure developments to support oil & gas
• How can a successful oil industry support our drive towards rural electrification

The Ministry of Energy & Mineral Development will be using the UIOGS platform to actively engage with allits partners and suppliers from around the world. The services of the renowned market leaders for oil & gas conferences; Global Event Partners have been engaged to work alongside domestic experts Image Care to ensure that UIOGS is a first-class event that puts Uganda firmly on the global map.
UIOGS is a two day conference that will be held at the Kampala Serena Hotel on 16-17 September 2015. The programme will be opened by Hon. Eng Irene Muloni and will feature more than 30 Government officials, Company leaders and Industry experts gathered from Uganda, the region and throughout the world to give Uganda a truly global platform.

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New petroleum producers survey policy options in wake of oil price slump

Countries seeking to develop newly-discovered petroleum resources are facing a fall in global oil prices, with competition from the ‘shale gas revolution’ in the United States, as well as renewable energy sources.

At a New Petroleum Producers Discussion Group in Tanzania, organised by Chatham House and co-sponsored by the Commonwealth Secretariat, authorities from more than 20 countries met this week to find solutions to these and other shared challenges.

The four-day forum from 30 June to 2 July, at which a set of Guidelines on Good Governance for Emerging Oil and Gas Producers was released, was attended by government ministries and national oil companies from Belize, Guyana, Kenya, Mauritius, Mozambique, Jamaica, Seychelles, Trinidad and Tobago, Tanzania, and Uganda, among other nations.

“In the midst of the oil crisis there is less capital available for investment,” commented Michael Mwanda, Chairman of the Tanzania Petroleum Development Corporation, which hosted the meeting in Dar es Salaam. “Some projects which were pegged on a high oil price are now becoming uneconomic and difficult to operate.

“We need to learn from each other and share experiences on how to reduce costs, operate efficiently and become more competitive,” Mr Mwanda said.

Addressing the forum, Ekpen Omonbude, Natural Resources Adviser at the Commonwealth Secretariat, remarked: “This price decline has necessitated a critical look at strategies to manage petroleum resources, from development programmes to responsible wealth management, to ensure benefits for future generations.”

Dr Omonbude stressed that while the slump in the price of oil – from over US$100 a barrel in 2014 to around US$60 today – presents immediate challenges, these can be mitigated through the adoption of flexible fiscal regimes, increased economic diversification, the development of good governance regimes and revenue transparency.

“Our mission is clear – to help position our member countries to realise the potential of their resource wealth as a driver of sustainable development and economic prosperity,” the Commonwealth representative said.

The New Petroleum Producers Discussion Group was established in 2012 to help countries think critically about policy options available either during the first steps of exploration and development or when restructuring governance arrangements. Options include setting up regulatory institutions and drafting regulations and laws that encourage investment, while balancing the needs of society and environmental protections.

This week marked the first time the discussion group has met outside London and included a final-day national seminar for representatives of Tanzania’s oil and gas sector. Co-sponsors of the initiative include the Natural Resource Governance Institute and the Africa Governance Initiative.

The Guidelines for Good Governance in Emerging Oil and Gas Producers, a synthesis of proposals put forward at each discussion group, seek to guide national authorities to pursue policies which follow good practices, but which also respond to national contexts.

Dr Valérie Marcel, Associate Fellow at Chatham House, principal author of the guidelines, said: “The emergence of shale oil and new renewable technologies offer opportunities and challenges. How the emerging producer is affected and will respond is what we have been debating. One of the main issues is how to adjust to a low price environment, asking what impact is this going to have on licensing terms and the ambitions of national oil companies.”

She added: “Emerging producers are thirsty to learn from their peers about what has worked elsewhere and what advice to give. More established producers want to know whether they are doing things right and what pitfalls they should avoid. This is a really important learning process.”

During the forum, participants exchanged experiences on how to attract investment while preserving long-term national interests, managing expenditure plans as well as ways to guard against abuses and fraud in contracts and licensing. Training sessions focused on involving local suppliers in supply chains, the design of fiscal systems and new information tools.

Eddy Belle, Chief Executive of PetroSeychelles, the national oil company of Seychelles, said: “[Petroleum] is a very dynamic business – there is new technology coming in and new ways of doing things. What Chatham House is doing with the help of the Commonwealth Secretariat is getting people together so you have the chance to learn from the mistakes as well as the successes of others.”

Bashir Hangi, Communications Officer for Uganda’s Petroleum Exploration and Production Department, commented: “Such a forum helps us a lot as emerging producers. We peer review ourselves, and our people go home with a lot of advice. One piece of advice I would share is that you cannot ignore your stakeholders – civil society, academia and communities where there are operations. They should not be taken for granted; they should be brought on board and be involved in the management of the resource.”

Anthony Paul, Managing Director of the Association of Caribbean Energy Specialists, said: “Oil and gas resources give opportunities to deepen industrialisaton, providing power and access to better lighting, heating and cooking facilities as well as petrochemicals and fertilisers. There are also benefits from developing the services industry. What strikes me most is that all countries want the same thing: they want the resource to benefit their citizens.”

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Orca contracts shallow-water rig for Songo Songo offshore Tanzania

DAR ES SALAAM, Tanzania – Orca Exploration Group has started the first phase of the Songo Songo development program offshore Tanzania.
This follows World Bank’s approval for International Finance Corp.’s (IFC) investment.
Orca has entered into a drilling contract with Paragon Offshore for the use of its M826 mobile drilling workover rig and associated services for the offshore phase of the Songo Songo gas field program.
The rig can operate in the shallow water operating environment around Songo Songo Island, which Orca describes as “somewhat unique.”  However, the company still needs to obtain certain regulatory and contractual approvals related to certain aspects of the development program.
Drilling should start between Aug. 1 and Sept. 21. The contract has a minimum 90-day duration.
Operations will likely include workovers (removal and replacement of production tubing strings) on the existing SS‑5, SS-7 and SS-9 wells, and drilling of one new well, SS-J. Orca has the option to drill a further two wells, pending the outcome of the workovers.

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