Tanzania’s fourth round of allocating oil and gas exploration to private companies will go ahead as planned next October despite strong opposition from the local private sector and politicians, says the Tanzanian Daily News.
Minister for energy and minerals Professor Sospeter Muhongo told Daily Newsthat those opposing the allocation on grounds that the country has no legal framework to regulate the sector wanted to confuse the public.
“Nothing has changed, the exploration blocks allocation schedule remains the same,” said Muhongo. He argued that the country has a 1960s law which established Tanzania Petroleum Development Corporation and a 1980 Petroleum Act that governs such oil and gas investments.
“We are improving the laws so that they can meet modern day demand. We cannot suspend the block allocation exercise because we are competing with others like Mozambique,” said the geologist turned politician who suspended the exercise last year soon after his appointment following opposition from lawmakers.
Mozambique has established it has almost 200 trillion cubic feet of natural gas reserves while Tanzania has so far managed 43 million cubic feet. “We have to continue allocating these blocks for exploration so that we can know our full potential,” the minister argued.
Wednesday, 11 September 2013
Turkana oil five times initial estimate
According to Africa Oil, the Canadian company prospecting for petroleum in northern Kenya, has raised the estimated deposits in the Lokichar basin to five times higher, affirming a recent report by British exploration firm Tullow Oil. Africa Oil's statement said Northern Kenya has commercially viable oil and gas reserves. Africa Oil is a joint exploration partner with Tullow Oil in some of the northern Kenya wells with fuel deposits.
The company has rights to exploration blocks in both Kenya and Ethiopia. It said Ethiopia has a potential to produce 155 million barrels. The explorer estimated that the gross prospective resources or the best case scenario of how much oil the basin carries is 20,1-billion barrels.
“Based on the drilling and testing programme over the past year we have confirmed the South Lokichar Basin contains gross contingent resources of 368 million barrels of oil, an increase of 557%,” said Africa Oil chief executive Keith Hill.
The company has rights to exploration blocks in both Kenya and Ethiopia. It said Ethiopia has a potential to produce 155 million barrels. The explorer estimated that the gross prospective resources or the best case scenario of how much oil the basin carries is 20,1-billion barrels.
Tullow comes up Empty Offshore Mozambique
Tullow Oil says the Buzio-1 exploration well in Area 2 offshore Mozambique has not encountered hydrocarbons and, following the completion of logging operations, has been plugged and abandoned.
The Buzio-1 well is the second deep water exploration well drilled in Area 2 and targeted stratigraphic traps in channel systems of Tertiary and Upper Cretaceous ages. Good-quality water-bearing reservoir sandstones were found in both targets. The Discoverer Americas dynamically positioned drill ship drilled Buzio-1 to a final depth of 3,333 metres (m) in water depths of 1,534 m.
Tullow has a 25% interest in Areas 2 and 5 in the Romuva Basin, offshore Mozambique. Statoil 40% are the operator while Inpex have a 25% non-operated interest. Empresa Nacional de Hidrocarbonetos has a 10% carried interest.
Angus McCoss, exploration director at Tullow Oil plc, commented: “Having encountered hydrocarbons with the Cachalote-1 well, we have acquired valuable information from the Buzio-1 dry hole. We will now combine the data from both offshore Mozambique wells with our extensive seismic in this licence area and determine our next steps”.
Saturday, 7 September 2013
Kenya Sets Framework to Manage New Petroleum Wealth
- Country-owned framework involves local communities in managing petroleum wealth
- New oil find in northern Kenya’s Turkana County could reduce poverty for over 900,000
- Transparent revenue-sharing, skills programs for youth essential to sustainable development
The country’s government, with the support of the World Bank, is reviewing petroleum sector laws and engaging stakeholders at national and local levels discussing, among others, how to share revenues between the central government and resource-rich county authorities.
Kenya’s Ministry of Energy and Petroleum convened a high level stakeholders’ workshop to discuss a review of the legal, regulatory and fiscal framework of Kenya’s oil and gas sector development. Its goal was to align recent developments in Kenya’s petroleum sector with global best practices.
“We will put together an all-inclusive framework owned by Kenyans and endorsed by parliament to ensure that contracting is done properly and that the local communities are fully on board,” said Davis Chirchir, Kenya’s Cabinet Secretary in the Ministry of Energy and Petroleum.
A final report presented to a stakeholders’ workshop in Nairobi on July 11, 2013, gave participants an opportunity to make critical inputs on the management of the institutions and structures of the future oil and gas business.
Technical support from the World Bank is supporting Kenya as it seeks to develop the right governance and accountability systems to manage its future wealth and avoid the curse that has befallen some oil and gas producers in Africa, and elsewhere.
“The potentially substantial revenues from the oil and gas sector will come with significant challenges, that require careful management,” says Diarietou Gaye, World Bank Country Director for Kenya. “Kenya has a window of opportunity of a few years to take the right steps that will determine the shape of the oil and gas sector for decades to come.”
The Bank is working with the government to develop the country’s petroleum resources to support growth in public and private sectors, while proactively forestalling adverse macro-economic, social and environmental impacts. An effort is under way to channel anticipated resources to support growth in domestic businesses, increase employment across the country, develop infrastructure to support expanded economic activities, and expand access to training/education opportunities.
The consultative process is geared to avoid potential conflicts by creating awareness among local communities, who are demanding greater transparency in contracting arrangements between the government and oil prospectors.
The largest oil find is in Turkana County in semi-arid Northern Kenya. Here, Britain’s Tullow Oil has discovered significant oil reserves, prompting the company to raise its resource estimate for Kenya by 20%, to over 300 million barrels of oil equivalent. This find has transformative potential to reduce poverty, and expand health and education services in Turkana, currently among the country’s poorest counties. To realize this potential, however, mechanisms are needed to channel resource revenues for projects that fight poverty and improve people's lives.
Turkana Governor Josphat Nanok seeks a transparent framework for monitoring oil exploration and production costs, and a clearly defined arrangement of sharing benefits between the authorities and the communities. “I want our people to be well advised on the costs and benefits of oil business,” Nanok said.
With Turkana’s majority being nomadic pastoralists and peasant farmers, county leaders are championing land issues, culture and values of the local communities. “We want a transparent revenue sharing mechanism and a defined corporate social responsibility program which will ensure transfer of technical skills to our youth,” said Benjamin Cheboi, Governor of the Baringo County.
Local and international NGOs are active on the ground, advising local communities on how to negotiate the best deals when the revenue starts flowing, and lobbying for respect of human rights of the local communities and for the environment.
A critical issue is whether the local counties will have the capacity to manage their share of the oil and gas revenue.
“Depending on how much oil will be discovered, even a small percentage of revenue transfer to the local counties could be quite significant,” says Alexander Huurdeman, the Bank’s Senior Expert on Oil, Gas and Mining. “That’s why it is crucial to support the government on effective policy making and capacity building of local authorities and communities.”
For a country that has been prospecting for oil since 1937 without a discovery until last year, excitement is high with hopes that an oil boom could propel Kenya through the middle-income threshold much earlier than its Vision 2030 anticipated.
Source: World Bank
A final report presented to a stakeholders’ workshop in Nairobi on July 11, 2013, gave participants an opportunity to make critical inputs on the management of the institutions and structures of the future oil and gas business.
Technical support from the World Bank is supporting Kenya as it seeks to develop the right governance and accountability systems to manage its future wealth and avoid the curse that has befallen some oil and gas producers in Africa, and elsewhere.
“The potentially substantial revenues from the oil and gas sector will come with significant challenges, that require careful management,” says Diarietou Gaye, World Bank Country Director for Kenya. “Kenya has a window of opportunity of a few years to take the right steps that will determine the shape of the oil and gas sector for decades to come.”
The Bank is working with the government to develop the country’s petroleum resources to support growth in public and private sectors, while proactively forestalling adverse macro-economic, social and environmental impacts. An effort is under way to channel anticipated resources to support growth in domestic businesses, increase employment across the country, develop infrastructure to support expanded economic activities, and expand access to training/education opportunities.
The consultative process is geared to avoid potential conflicts by creating awareness among local communities, who are demanding greater transparency in contracting arrangements between the government and oil prospectors.
The largest oil find is in Turkana County in semi-arid Northern Kenya. Here, Britain’s Tullow Oil has discovered significant oil reserves, prompting the company to raise its resource estimate for Kenya by 20%, to over 300 million barrels of oil equivalent. This find has transformative potential to reduce poverty, and expand health and education services in Turkana, currently among the country’s poorest counties. To realize this potential, however, mechanisms are needed to channel resource revenues for projects that fight poverty and improve people's lives.
Turkana Governor Josphat Nanok seeks a transparent framework for monitoring oil exploration and production costs, and a clearly defined arrangement of sharing benefits between the authorities and the communities. “I want our people to be well advised on the costs and benefits of oil business,” Nanok said.
With Turkana’s majority being nomadic pastoralists and peasant farmers, county leaders are championing land issues, culture and values of the local communities. “We want a transparent revenue sharing mechanism and a defined corporate social responsibility program which will ensure transfer of technical skills to our youth,” said Benjamin Cheboi, Governor of the Baringo County.
Local and international NGOs are active on the ground, advising local communities on how to negotiate the best deals when the revenue starts flowing, and lobbying for respect of human rights of the local communities and for the environment.
A critical issue is whether the local counties will have the capacity to manage their share of the oil and gas revenue.
“Depending on how much oil will be discovered, even a small percentage of revenue transfer to the local counties could be quite significant,” says Alexander Huurdeman, the Bank’s Senior Expert on Oil, Gas and Mining. “That’s why it is crucial to support the government on effective policy making and capacity building of local authorities and communities.”
For a country that has been prospecting for oil since 1937 without a discovery until last year, excitement is high with hopes that an oil boom could propel Kenya through the middle-income threshold much earlier than its Vision 2030 anticipated.
Source: World Bank
Tuesday, 3 September 2013
East Africa Oil and Gas Summit II Press Launch in Nairobi
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Ministry of Energy and Petroleum, Kenya sets out plans to be a good example of hydrocarbons management in Kenya
The
East Africa Oil and Gas Summit (EAOGS) 2013 Press Launch took place on August
29th 2013 at the Sankara Hotel to promote the EAOGS Summit which takes
place on 29-30 October at the Intercontinental Nairobi.
The
EAOGS Press Launch featured presentations from the guest speaker Eng. Joseph
Njoroge, Principal Secretary, Ministry of Energy and Petroleum, Dr Mukhisa
Kituyi, General Secretary UNCTAD and Former Chairman, Global Event Partners (K)
Ltd, Elly Karuhanga, Chairman, Ugandan Chamber of Mines and Petroleum and Danny
Grogan, Managing Director of the organisers Global Event Partners (K) Ltd.
The
Principal Secretary spoke about the necessity to build up Kenya’s
infrastructure to ensure the successful development of the hydrocarbon industry
for the benefit of all parties: ‘’We want to be a good example of the hydrocarbons
in Kenya. I do know that one of the most important success factor of this
industry is setting up of the infrastructure so that by the time you are
extractive industry reaches its maturity stage, the infrastructure should be in
place to avoid wastage and to avoid pilferage, to ensure the industry itself
brings in the benefits to the investor, to the country and to the local
community. ‘’ said the Principal Secretary.
He
also spoke of his commitment to the EAOGS programme and the importance of knowledge
transfer so Kenya is ready to develop the hydrocarbon sector: ‘’I have been
assured by the team from Global Event Partners that this Summit is one of a
difference. Global Event Partners are ready to engage the stakeholders
including our Ministry so that they can identify the gaps in awareness and
focus more in their summit in filling those gaps. ‘’
Dr
Mukhisa Kituyi, General Secretary UNCTAD and Former Chairman, Global Event
Partners (K) Ltd spoke about his excitement at the latest developments in the
sector: ‘‘I’m particularly happy to notice the new found attention that’s been
given to shared experiences and shared thinking
among the leaders of East Africa on the way forward for the Petroleum
Industry,’’ he continued: ‘’It’s very important for us that the intelligencia
starts appreciating the importance of priming up the hydrocarbons sector as a
driver of wealth creation and regional integration.’’ Dr Kituyi also gave his
farewell speech as the Chairman of Global Event Partners (K) Ltd as he leaves
to take up his position as the General Secretary of the United Nations
Conference on Trade and Development (UNCTAD) becoming Kenya’s highest ranking
diplomat.
Elly
Karuhanga, Chairman, Ugandan Chamber of Mines and Minerals spoke of the huge potential
East Africa has for the development of its resources: ‘‘East Africa has reigned
in a new dawn; a completely new phenomenon of resource exploration and
findings. We are now sitting here right from Mozambique to Tanzania to Kenya to
Rwanda to Burundi to Uganda to Southern Sudan to Djibouti to Ethiopia and
Somalia as a new province, a great, great province of the world’s resources and
we are probably number 1 and therefore we are the focus of world attention’’
said Mr Karuhanga.
Danny Grogan, Managing Director
of the organisers Global Event Partners (K) Ltd thanked the EAOGS Platinum
Sponsors Afren and Ernst and Young and spoke of his gratitude of the many eaogs
partners and supporters which have contributed to much to the its success: ‘’With
the continued support and guidance from the Ministry of Energy and Petroleum and
the National Oil Company Kenya as well as many domestic and international
players; the East Africa Oil and Gas Summit has gathered increasing momentum
and we are delighted that EAOGS now has a world-class panel of speakers
confirmed providing a value-adding programme that will address the key issues.’’
And Grogan concluded: ‘’EAOGS looks set
to break new ground and attract 500 domestic and international participants to
the event this October.’’
EAOGS is the event of choice of both
sponsors and supporting organisations. Afren and Ernst and Young have signed up
as Platinum Sponsors, Africa Oil, ABS and Barclays as Gold Sponsors, Aggreko,
Simba Energy, SMTS, DAC Aviation and Tenaris as Bronze Sponsors and Afex Group
as Associate Sponsor. EAOGS is also supported by leading industry and
government associations including The Eastern Africa Chambers of Commerce,
UKTI, Delegation of German Industry and Commerce in Kenya, Kenya National
Chamber of Commerce & Industry Mombasa County, Business Council for Africa,
Danish Trade Council and the US Commercial Service.
The
latest programme and speakers list and transcripts of the EAOGS press launch
presentations can be found at www.eaogs.com
under the Media Centre
Press contact
Rosie
Topp, Global Event Partners Ltdrtopp@gep-events.com
UK Direct line: +44 20 3488 1193
UK Mobile: +44 7581 130130
---------------------------------------------------------------
Organisers:
EAOGS is organised by Global Event
Partners (K) Ltd, a specialist international event organiser in the oil and
gas, infrastructure and financial sectors. Our team at Global Event Partners
has more than 40 years’ experience in organising leading industry conferences
and exhibitions around the world.
Global Event Partners
is affiliated to the dmg::events network. dmg::events are the organisers of
world renowned oil and gas events including Gastech, ADIPEC, the Global
Petroleum Show and the World Heavy Oil
Congress and are a subsidiary of the Daily Mail and General Trust plc, one of
the largest media companies in the UK. www.gep-events.com
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