From: Abdalah Hamis
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(Reuters) - Tanzanian President Jakaya Kikwete has said his government will not tolerate any attempts by extremists to stoke religious tension following a spate of violent attacks on clerics.
The government has said rising religious tensions pose the biggest threat to peace in East Africa's No. 2 economy, which has enjoyed relative political stability since independence from Britain in 1961.
RELIGIOUS VIOLENCE
Two Christian leaders were violently killed in the predominantly Muslim islands of Zanzibar over the past month in separate attacks. The government has launched an investigation into the incidents and has vowed to prosecute those involved in the violence.
A separatist Islamic group in Zanzibar, Uamsho (Awakening), is pushing for the semi-autonomous island to exit from its 1964 union with mainland Tanzania, which is ruled as a secular country. Supporters of the group have engaged in running street battles with the police in the past, but authorities have not linked the group with the attacks on Christian clerics.
Rioters have also torched several churches in Zanzibar and Dar es Salaam, Tanzania's commercial capital, in recent months, and Kikwete warned about the rising religious tension in a televised state of the nation address at the end of February.
What to watch out for:
- Will a widespread flare-up of religious tensions occur?
PIPELINE POLITICS
Tanzania wants to become a regional energy hub following major discoveries of natural gasoffshore. But residents of a gas-rich region are threatening to block a major gas pipeline project until they see a bigger share of the benefits. The government has accused opposition leaders of inciting residents of the southern region of Mtwara to reject the pipeline.
The country's cash-strapped power utility, TANESCO, hopes the 532 km (330 mile) pipeline being constructed with a $1.2 billion Chinese loan will boost generation of cheap electricity and fix the country's chronic energy shortages.
What to watch Out for:
- Further demonstrations against the pipeline?
- Will the unrest derail gas investments?
OIL AND GAS SEARCH
Opposition politicians and activists have been calling for a halt to the issuance of new oil and gas exploration licences until Tanzania revamps laws regulating its fast-growing energy sector. The government has unveiled a draft national gas policy and plans to have new legislation in place this year.
Tanzania has called for an international mediator to resolve a long-standing territorial dispute over Lake Malawi. Tanzania claims the shared border runs down the centre of the lake, while Malawi says the border lies at the shores of the lake.
Tanzanian officials say any significant oil or gas finds in the lake could escalate the border issue.
What to watch out for:
- Will there be a delay in issuing more exploration blocks?
- What will happen if the border dispute talks fail?
RULING PARTY RIFTS
Tanzania's governing Chama Cha Mapinduzi (CCM) party has been split by a race to succeed Kikwete, who must step down in 2015 at the end of his second term in office.
The CCM party, in power for over 50 years, is grappling with infighting as rival politicians look to succeed the president, but the squabbles are not along religious or tribal lines. However, several senior ruling party members are jostling for the job, causing a rift in the party.
What to watch out for:
- Will divisions in the party weaken the government? (Editing by Catherine Evans)
http://uk.reuters.com/article/2013/03/14/tanzania-risks-idUKRISKTZ20130314
Writes Leo Odera Omolo
Kenya, an African nation whose economic mainstay has for many year depended largely on agriculture with no sign of mineral resources is now edged close to joining the league of the oil producing nations following the latest announcement made by the Tullow, the British oil exploration company that it has made more discovery of substantial oil deposits at a second well in the Northern part of the country.
Long regarded by the big explorers, as frontier market, the second discovery by Tullow is now expected to generate ever greater interest in oil exploration in the country-even as companies are expected to start drilling early next year.
Tullow said in a statement that the discovery was made following successful drilling of the new well to the intended depth of 3,250 meters.
According to the announcement the well also holds potential for more oil that will be established once the planned testing to determine the exact amounts of oil in the well is complete. The tests are scheduled to take place in the next two months.
The British oil firm announced that the Twiga South-1 exploration well has encountered 30 meters of neat oil pay with further potential to be assessed on test. A series of flow tests will now be conducted on the well over the 4-8 weeks’” read Tullow’s statement in part.
While making the announcement, the company also said that it will be going back to its first well,Ngamia-1 located on Block 10818 in Turkana County where it made its first discovery in March this year, f to carry out tests in order to establish the quantities of deposits at the well.
Drilling at the Ngamia-1 well was suspended mid this year following what the oil exploration firm Tullow PLC termed as an encounter with an unexpected rock, structure that prevented further drilling at the well.
At the time of the suspension, Tullow announced that it had encountered 143 meters of net oil pay at the well with data indicating that the well could be holding more potential should it b dug to the full depth.
So far Tullow Oil Plc has drilled three wells in Kenya including the Paipai well located on Block 10A whose results are expected by the end of the year. Of the three, two have ended up in discovery.
Since the March announcement that Kenya had struck oil, the country’s oil exploration space have generated interest from leading international oil exploration firms with the data from the Ministry of Energy showing that all the 47 blocks have already been licensed to the various exploration companies.
The demand for licenses to explore in the local oil blocks has also been accelerated by the announcement of a discovery of natural gas in Block 1.8 in Lamu Basin by Apache Corporation which operates the block jointly with Origin Energy Pan-continental Oil and Gas and Tullow Kenya B.V.
However, in just 24 hours after making the announcement, Apache Corp came under the spotlight following what the Energy Ministry termed as malpractice in making its discovery public by the failure to adequately brief the government of the natural gas find before making the announcement.
The announcement by Tullow earlier this week now placed Kenya closer to becoming an oil producing nation which is hoped to provide great relief to the strained current a count and ease fuel-based inflation that has thrived as a result of a huge oil import bill.
Meanwhile newspaper reports emerging from the Ugandan capital, Kampala say the future of Tullow Oil Plc in Uganda still hangs in the balance, as the Irish Oil prospecting firm is reported widely to be temporarily frustrated by the lack of progress on arriving at “a final investment decision” about whether to build an oil pipeline or a refinery.
As senior company official was last week quoted by the newspaper as saying “ Our program for appraisals is complete and the development mean we either pump crude oil or refine it, so there is currently not much work in the field.”
Despite the company’s overall spokesman George Casenove stating in an e-mail response that “Tullow is not planning to exit Uganda and has stated repeatedly that it is committed to Uganda for the longer term,” several well placed sources in the oil industry say the lack of movement on the issue is causing the company to internally consider its exit options, reported the influential Nairobi based weekly publication, the EASTAFRICAN.
‘This is informed by the protracted nature of the disagreement between the oil companies and the government of Uganda on whether crude of refined products are the best way to commercialise oil production in Uganda”, the paper adds.
“Unlike the two other oil companies in Uganda-France’s total and China’s CNOOC, both giants - Tullow does not have the financial resources to play out a prolonged waiting game. According to its interim management statement released on November 14, Tullow says together with its partners, it has presented ‘a joint development plan” to President Museveni. This plan was presented in July, almost four months ago. This plan emphasizes a crude-pipeline option while the Ugandan government prefers a medium sized refinery to begin with..
Consequently, no tangible agreement has been reached ‘We can’t agree on anything,” a senior official of Tullow Oil who requested for his anonymity said.
Other sources the Ugandan capital is a buzz with the word that the industry players have put together a rebuttal of the official document that the Uganda government is relying on in pursuing its refinery option.
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Writes Leo Odera Omolo.
The Uganda government has envisaged the plan for screening and vetting all foreigners seeking for jobs oil exploration and prospecting companies operating I the country.
The Daily Monitor has reported that the plans to have the expatriate workers vetted were disclosed to the member of Parliamentary Ad-Hoc committee investigating the oil sector.
The revelation was made by the Commissioner for Petroleum Exploration and Production in the Ministry of Energy, Mr Ernest Rubondo whose department is tasked with the responsibility on the running and management of the oil sector.
He stated that the aim was to ensure that Ugandans do not lose out on jobs to the expatriates. Rubondo was responding to the member of the committee who had questioned the government commitment to ensuring that Ugandans and local fully benefited from the oil sector.
“If a company does not find suitably qualified Ugandan, it will be allowed to have an expatriate to fill the job. But the firm will be compelled to employ a Ugandan on the same job to understudy the foreigner and gain the necessary experience and eventually take over from the expatriate so that more foreigners do not come here,”he said.
Rubondo, however, told the committee members that the biggest challenge for Ugandan companies was lack of capacity to provide goods and services due to lack of funds to enable them compete effectively with foreign firms.
Rubondo further stated,” I believe the companies we have here are improving.”There are 77 wells so far. But all the wells pads were constructed by local firms “There is also a consultancy firm we hired to design a strategy plan on how best to achieve local contents.”
The MPs have been complaining about the lack of local employment in the oil sector, arguing that most of the foreign employees earn higher salaries than the Ugandans on the same job specification.
But Tullouw Oil Company’s president and the chairperson of the Uganda Chamber of Mines and petroleum Mr Elly Karuhanga commented, “This has been the practice because the government has an agreement with foreign firms of hiring specific foreigners with specific expertise.
Karuhanga added,”it is good that the Ugandan are employed to understudy the foreigners, “There are many foreigners whose applications for work permits are still pending.’
He disclosed that Tullouw Oil Company has employed between 15 and 20 per cent foreigners out of it workforce of about 200. Some oil companies are too technical and they are always under pressure to fulfill the immigration requirement to complete heir jobs.
Ends
From: News Release - African Press Organization (APO)
19th Africa Oil Week held from October 29th until November 2nd in Cape Town
CAPE-TOWN, South-Africa, September 18, 2012/ -- With over 900 delegates from 75 countries and 85 presentations from leading speakers - representing super-majors, independents, national oil companies, governments, licensing agencies and banks - the 19th Africa Oil Week shall host the world’s leading deal-making and senior-level networking oil/gas industry in Africa, thus retaining its reputation as one of the top world-class conferences on the global calendar.
[ . . . ]
http://appablog.wordpress.com/2012/09/18/worlds-leading-oil-conference-reveals-african-future/
From: Yona Maro
The oil market has long been dominated by the Kingdom of Saudi Arabia because of its ability to produce and export large quantities of crude oil, a valuable globally traded commodity. Saudi Arabia’s role is further enhanced by its ability to maintain a surplus capacity that can act as a strategic cushion during times of market tightness, allowing production to be expanded in relatively short order. For that reason the kingdom has been crucial to the stability of the oil markets.
http://csis.org/files/publication/120831_Akhonbay_SaudiArabiaEnergy_Web.pdf
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News Analysis By Leo Odera Omolo
Reports emerging from both Dar E Salaam and Lilongwe says Malawi which is currently locked up in serious dispute with the neighboring Tanzania over the oil and gas exploration in Lake Nyansa has now withdrawn aero planes that were making aerial mapping of Lake Nyasa which is also known as lake Malawi, after Tanzania warned the exercise was in a violation of its territorial waters.
Tension has been building up in recent weeks over Malawian oil exploration in the lake, which is shared by the two countries as well as ferries and tourist boats ”intruding into Tanzanian waters.”
Malawi claims the entire lake as its own, but Tanzania insists the border between the two countries runs through the middle of the lake.
The matter has remained unresolved since the two neighboring nations gained political independence in early 1950s.
Local but impeccable sources from KASUMBU IN Kyela district – a bust dusty town which is located on the border has revealed in a telephone interview that the planes are no longer flying in the area.
‘Life here continues to be normal; all the talks about tension with Malawi emanates from Dar Es Salaam”, said one villager who is a resident in Lusungo who requested for his anonymity.
However, villagers’ of the Malawi side of the border are reported to have fled and abandoned their homes, fearing that war could break out at any time.
MeanwhileTanzania’s Minister for Foreign Affairs Benard Membe recently told hushed parliamentary session in the Central Tanzanian City of Dodoma that Malawi must cease oil and gas exploration on the disputed lake. All diplomatic channels could be exhausted in order to resolve the simmering border conflict, he said.
However, the former Tanzania’s Prime Minister Edward Lowassa who is now the chairman of his country’s Parliamentary committee on defense, security and foreign affairs was last week quoted by he local media as saying that Tanzania was ready to go to war if need be.
“We know the cost of war, because of our experience in Uganda. We urge the government, a the Foreign Affairs Minister said in parliament, that let’s exhaust all the diplomatic channels, but we are ready to defend our sovereignty at any cost”, said Lowassa.
Lowassa as speaking to newsmen after a briefing by senior Tanzania People Defense Forces officers who told his committee that the army is prepared for a military confrontation, should diplomacy fail.
“We are satisfied with progress being made by the government o the diplomatic front, but military preparations must also be made to make sure all options are available when it comes to making the final decision,’ the former Prime Minister said
Earlier Malawi had vowed to continue with oil and gas exploration in the lake, defiantly dismissing the demand by Tanzania to halt prospecting.
“We categorically put it to them that, said far as we are concerned, the entire lake belongs to Malawi,” Patrick Kalambe the Principal Secretary in Malawi’ Ministry 0f Foreign Affairs said I a recent statement. He said the saw no reason to stop the oil exploration project,”
A week ago Minister Membe said “exploration activities I the northeast part of the lake should be shelved to pave the way for dialogue to resolve the crisis.”
Malawi’s oil exploration affects villages in Kyela district that depend on fishing and farming along the eastern shore.
Lake Nyasa is the home to a variety or ornament fish, which are exported to Europe.
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TANZANIA TO START OIL AND GAS EXPLORATION IN LAKE TANGANYIKA AND ALSO TO BUILD A MULTIMILLION DOLLARS BUSINESS CENTER AROUND KILIMANJARO AIRPORT
Reports Leo Odera Omolo
Information emerging out of Dr Es Salaam says Tanzania now envisages three multimillion dollars ambitious development program which include the launching of oil exploration in Lake Tanganyika.
Dar seeks to join other East African Community partners nations like Kenya and Uganda, which of late have join the ranks of oil producing African nations.
Tanzania also plans to construct a city around its Kilimanjaro International Airport {KIA} to tap into tourism and business opportunities.
The government, says the report, has secured at least USD300 million to develop a state of the art commercial hub at Dar Es Salaam Port.
It has revealed that an Australian firm Beach Energy Limited has commenced 2D seismic acquisition over its Lake Tanganyika South concession in Tanzania.
The acquisition is being undertaken by Fugro Oceanseismica, and is expected to take approximately two months to acquire and seven months to process and interpret.
“Currently Beach Petroleum [Tanzania limited} has spent approximately USD 11million on its exploration efforts in Tanzania and by the end of 2012 it will be close to USD 18 million,” says Danny Burns, the company’s manager international and new ventures.
The ferry MV Mwongozo was upgraded into a seismic acquisition vessel with the necessary equipment with the on board to check the quality of the 2D seismic data after it is acquired.
Beach Energy through its contractor Fugro Oceansismica Oceansis mica SPA, has a lease agreemen with the owners of the ferry, MSCI, and has already spent more than USD one million refurbishing the vessel.
Burns was also quoted in the local media a saying that Lake Tanganyika is frontier oil and gas exploration area where little data had been collected before Beach Energy commenced exploring in 2010.
It has also been reported that Tanzania has secured at least UYSD 300 million {Tshs471.6 billion} to develop a sate of the art commercial hub at Dar E Salaam port.
The project is funded by Mara Group, a 15 year old Pan-African multi-sector business conglomerate with operations covering Information Technology, Business Process Outsourcing real estate development asset management infrastructure hospitality packaging and media. The group has a presence in 18 African countries and employs more than 4,000 people in its establishment.
The Chief Executive Officer of the Mara Group Mr Ashish Thakkar was quote last week as having said that the project will include the largest retail mall in East Africa, two internationally branded hotels, a modern convention center and a medical tourism hospital.\ The CEO said the facilities will include a modern business park, residential compound, police station and 500 residential units for the policemen.
The project consists of internationally branded hotels one five star and the other three star, and a huge convention centre,” he said adding that there will also be office blocks and service apartments.
According to the CEO Tanzania has a huge gap in the market for high quality integrated mixed use real estate developments?
The project located in Dar es Salaam will offer Tanzanians a modern environment to “live work and play”,and change the face of the City.
The contract for the construction project was signed by the Permanent secretary in the Ministry of Home Affairs Mbarak Abduwakil, Inspector General of police Said Ally Mwema and the directors of Mara Group Thakkar and Prashant Manek in Oystrabay suburb.
On the envisaged plan to construct a city around its Kilimanjaro International Airport,Tanzania ants to tap into tourism and business opportunities.
Kilimanjaro Airport Development Company {KADCO} is developing a five-year master plan to transform KIA into a modern tourist and duty-free shopping city.
The chairman of the KADCO board of directors Hassan Kibelloh said experts from the company are working on the plan, which will be ready in a few weeks to create a city that can compete with UAE’s Dubai.
He added that apart from the 41-year old air terminal, the KIA area, which lies at the meeting point of the Northern Zone regions of Arusha, Kilimanjaro and Manyara, is a wide stretch of unoccupied land.
“The location is to become a ‘city” at the center of Moshi and Arusha, where prospective investors will establish massive shopping centers, high class tourist hotels, duty free ports,
Export Processing Zones, educational institutions, custom bounded warehouses, curio shops, golf courses and large game ranch,” he said.
“We are now inviting potential investors to establish major ventures in the locality, all roads and international air routes will be leading to Kia, said the board acting managing director Bakari Mrusuri I a recent interview
Ends
Reports Leo Odera Omolo
Tension is building up following growing agitation for direct sharing in oil revenue by communities in Western Uganda oil wells regions are reportedly is casting a pall over the future prospects of the country’s political stability as it moves to the commencing of commercial oil production.
The traditional leaders of Bunyoro, the areas where the bulk of the oil reserves lies underneath, led the charge in late May his year, when they stormed parliament in the capital, Kampala demanding a 12.5 per cent royalty on oil revenue.
And last week another cultural institution in North Western Uganda joined the bandwagon. Although no figures are available to give an idea of exactly how much the Nebbi Cultural Institution would be expecting, experts say ,the development raises the prospect of possible wrangling as marginalized communities resource rich areas stand up for what they believe to be once in life time opportunity to improve their lot.
Fear persists, however, that these demands could take a direction of violent protest if a sense that they are not being adequately compensated for their land, employment or getting community development and broader social investments emerges.
“I communities begin demanding for higher percentage in shares, it will set a precedent where mineral sites may brig conflicts as they start fighting for their shares of royalties. Far from brining wealth and health, we may get ethnic politics,” said Ndebesa Mwbestya, a Makerere University don in the Department of History and Development studies.
Apparently the cultural institutions view their demands as a necessity for peaceful co-=existence with the oil companies operating in their localities. That is why mid June the Nebbi Cultural leader Rwoth Charles Umbidi spelt it out what hi flock expect from the oil companies- improved schools, hospitals and construction of cultural sites on top of jobs to appease the gods ‘ of our ancestors”. We do not want our gods to be annoyed with noise during exploration, so to appease them we must perform our rituals.” said Umbidi.
While it is a popular view that the communities hosting the mineral wealth got a share of revenues, Bunyoro’s demand is likely to escalate the tension between the Kingdom and the central government of President Yoweri Museveni, if government’s amendments to the Finance Bill is passed in its current form A district may, in consultation with the ministries responsible for culture and local governments, grant a share of the royalties due to the district, to a cultural or traditional institution, “reads the proposed law.
Ideally, this leaves the traditional leaders at the mercy of the local government which is expected to raise disagreements and political temperature.
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Writes Leo Odera Omolo
INFORMATION emerging from the Ugandan capital, Kampala reveals that the government has floated an international tender for consultancy service on the logistics for building a USD 2 billion oil refinery in Kabaale, Hoima district, some 420 kilometers South West of the capital, Kampala.
Officials at the state-owned Petroleum Exploration and Production {PEPD} at the Ministry of Energy confirmed this adding that they were also looking for a lead investor for the refinery, which will have an initial capacity of 60,000 barrels of crude oil per day.
“The search for the lead investor will start next month through international bidding, according Mr Ernest Kubondo, the Commissioner in-charge of PEPD, the planned refinery will be operated under a public private partnership.
The Ministry of Energy is soon acquiring some 29 square kilometers of land from local communities as part of the preparatory phase for the refinery.
The successful consultant will conduct a route survey from the Kenya’s coastal port City of Mombasa to Kabaale to Kasese limitations for transport and recommend specific location of the site for the refinery and its boundaries. advise on shipment expected during construction and overall operation of the refinery,’ said Kabambe Kaliisa, the Permanent Secretary at the Ministry of Energy.
The PS said the interested consultants are required to obtain bid documents after paying USD 40 {Ushs 100,000}and submit them by June 21,2012.
Notice of he best bidder will be issued and published on July 11 and contract awards by the end of July in an exercise to be carried out under the Public Procurement and Disposal of Public Assets Act of 2003.
Uganda consumes about 550,000 cubic meters of refined fuel annually,85 per cent of which is imported through Kenya and 15 per cent through Tanzania.
Local production of crude oil has not started,
Tullow Oil PLC a British oil exploration firm, jointly with Total of France and China National Offshore Oil Corporation are currently working on details of refining 200,000 barrels per day of crude oil from Lake Albert basin by 2015.
“The parties are currently discussing how the investment in the project to build a refinery near Lake Albert will be shared,” the report quoted Elly Karuhanga, the chairman of the Uganda Chambers of Mines and Petroleum.
Major production from the Lake Albert basin is expected approximately 36 months after Ugandan government approves a plan for the development.
“Options are being weighed to allow the sale of small volumes of crude oil from well testing to industry as well testing as some small scale power projects,” said George Casenove who is in charge of Tullow’s media relations.
Uganda’s nascent oil and gas industry provides opportunities for both local and international investors to make money following the free-market policy adopted in the early 1990s.
“There are opportunities in the entire value chain from exploration,”said Energy Minister Irene Mukoni."
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Writes Leo Odera Omolo.
Encouraged and buoyed by its recent major discovery of massive oil deposits in the remotest Northern Kenyan district of Turkana, Tullow, the British oil exploration firm has now focused its attention to the Western Kenya region of Nyakach within the County of Kisumu in Nyanza Province.
Tullow is now set to begin a round of oil prospecting in Nyakach district following a visit to the region by its technicians.
The company team of experts were welcome to the area last week by he Nyakach District Commissioner Chaunga Mwachunga who was accompanied by the area MP Polyns Ochieng’ Daima.
In a joint address to members of the Hindu Council of Kenya said officials from Tullow have secured a certificate of exploration from the Ministry of Energy.
The MP said the Permanent Secretary in the Ministry o Energy had informed him of the potential for oil in the area and that he will take up the matter to Parliament to expedite the exploration.
He said the prospecting is part of the government efforts to explore mineral in the region, with Nyakach believed to have oil deposits.
Speaking in his office at Pap Onditi, the DC confirmed that he had received technical officers from Tullow who toured the area early last week with a promise to start putting up a drilling machine in the area b middle of June.
The government, He said, had already earmarked some regions for exploration of certain useful minerals and oil.”This region was marked and Tullow were awarded the certificate to carry out exploration activities for oil.
Tullow Oil general manager for Kenya Martin Mbogo confirmed that an advance team had visited the area to conduct a block assessment.”What we are doing is surveying the area and checking issues of infrastructure, security and community issues. We expect too start the prospecting around August,”Mbogo said.
The discovery of oil deposits in Nyakach could open up the area for development and raise the standard of living. The oil wells be the first to be sunk in the region, which is very close to Lake Victoria eastern shorelines.
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Writes Leo Odera Omolo
SEVERAL multinational oil exploration companies are expected to begin bidding for eight new offshore oil and gas exploration sites in Kenya I the coming weeks.
According to the reports appearing in the local media, this follows a move by the Ministry of Energy to publish an official gazette notice of eight new offshore sites.
While the government had indicated in March this year that it was marking out the eight blocks, delays in gazetting the sites meant the blocks could not be leased out.
The gazette notice brings the total number of exploration blocks in the country to a total of 46.Major natural gas finds in the past three years mainly in Tanzania and Mozambique have increased investors interest in Africa’s offshore blocks.
Meanwhile other report says that the Royal Dutch Shell has agreed to buy in cash-money, the exploration interests of London based Cove Energy Plc, East Africa for USD 1.8 billion.
The cash offer will enable Royal Dutch Shell to gain entry into the East African region, which is at the center of global interest due to the recent years.
“East Africa has seen a significant increase in exploration activity in recent years. Shell already has interests in Tanzania, and the acquisition of Cove would mark Shell entry into Kenya and Mozambique.
Shell’s latest offer is subject to receiving written consent from Mozambique’s mineral resources Minister. The Anglo-Dutch firm has a 50 per cent interest in offshore exploration areas five and six with a depth of 3,000 meters in Tanzania.
In February, Thailand state-owned PTT topped Exploration and Production {PTTEP} topped off Shell’s initial offer to buy Cover Energy, sparking a takeover battle for the acquisition of the London Stock Exchange listed company.
PTTEP announced it would offer USD 1.77 billion for Cove, which was a premium of some USD 200 million, to counter Shell’s earlier offer of USD 1.57 billion.
Cove Energy Plc has a 8.5 interest in Mozambique’s Ruvuma offshore area one; and a 10 per cent stake in Ruvuma offshore.
In Kenya, Cove Energy Plc has a 10 per cent in offshore area 1.5,10 per cent in 17;25 per cent in 1.10A;;15 per cent in1.10B and a 10 per cent in 1.11A.
“Shell will make an excellent partner in the Ruvuma liquefied natural gas project given its extensive project given its extensive project development experience,” said Cove’s executive chairman Michael Elaha.
In the case of the new scrambles for the new offshore blocks in Kenya experts believe there is a high probability of a gas find in Kenya because its coastline shares the same geological formation with some geological formation with some of the exploration blocks found in Tanzania.
Increased activity in the oil and gas exploration business is expected to come as good news to Kenya as the country seeks to reduce its fuel imports.
The firms are expected to negotiate with the government for rights to explore acreage in water depths of between 3,000 and 4,000 meters.
Interest in Kenya’s exploration blocks has raised since UK firm Tullow Oil announced the country’s first oil discovery in Turkana in March this year. The announcement resulted in firms listed on the New York and London stock exchanges such as Premier Oil and Apache Oil staking a claim in Kenya’s exploration business such as Cove Origin Oil, and Pan-continental heightened their exploration work.
Total France is said to be negotiating with the government for Production Sharing Contract for one of the new blocks 1.22 Apache Corporation. Exxon Mobil and Anadarko Petroleum Corporation of the United States, Royal Dutch Shell, Statoil of Norway and Petronas of Brazil are among firms interested in exploring the new sites.
Kenya’s Petroleum Commissioner Martin Heya said discussions with prospecting firms seeking to be awarded new acreage will be on a first come first-serve basis.”We want to award acreage to firms that have technical muscle has seen smaller players like Cove, Origin Oil and Pan-continental either exit the scene or remain with monitoring interests through buyouts.
Kenya’s Ministry of Energy in December 2011asked the Director of Survey to expedite the survey work of new offshore areas to facilitate the publication of sites and award acreage to prospecting firms.
Total wants the 1.22 acreage to increase its presence in Kenya. Last year, the firm announced its acquisition of 40 per cent interest in areas 1.5, L.7,1.11A, 111B and 1.22 subject to approval by Kenya authorities.
Ends
Writes Leo Odera Omolo
Reports emerging from Dar Es Salaam says Tanzanian MPs are up in arms and seeking the mandate of the House Speaker to allow the House Committee on Energy and Minerals the authority to launch a full scale investigations into the alleged fraud and bribery involving the purchase of fuel for an independent power generating firm.
Sources alleged that millions of dollars paid to purchase fuel for the Independent Power Tanzania Limited {IPTL plant, which is located in Dar E Salaam could have been swindled,
Legislator Zito Kabwe the chairman of the Public Corporation Accounts Committee was quoted by the local media as saying that legislators want the committee to probe several oil supplying firms and government officials over the deal that forensic expert say could see the government losing more than USD 54 million for fuel that was never supplied to the plant.
According to Kabwe, there was allegations of fraud and corruption among officials of the Ministry of Energy and Mines.
The legislator said that there were also doubts regarding whether the tender procedure was followed according to the Public Procurement Act of 2004
The government in November2010 used the emergency tender system to allow two oil-supplying firms, Oryx Oil and Total, to import fuel for the generation of the IPTL plant, which is located on the outskirt of Dar Es Salaam.
The government was spending approximately Tshs 15 billion {USD 10 million} every month from November 2010 to February 2011 for the purchase of fuel meant for IPTL operations.
January Makamba, chairman of the Energy and Minerals Committee of Parliament who is an MP fro the ruling CCM party, said the committee is still waiting to hear from the Speaker. He said the committee would not be able to start investigations without the authorization of the House Speaker.
“There have been complaints concerning the tender, leading to suspicions of corruption among officials at the Ministry of Energy and Mineral, but we cant start investigation right now; as a procedure, we need to have permission fro the Speaker,” he added.
The government estimates that at least USD 54 million meant for the purchase of heavy fuel oil for IPTL may have been stolen.
The private firm’s multimillion-dollar 100MW power supplying contact with the Tanzania Electricity Supply Company, Tanesco, has dogged by controversy throughout.
A new audit report details wasteful procedures and overvaluation of supplies of heavy fuel from a local oil firm.
The Energy and Mineral Minister William Ngeleja said in parliament last that the government spent Tshs 46 billion {USD 28.7 million}to purchase oil for IPTL plant from November 2010 to February 2011.
The power crisis currently facing the country has compelled Tanesco to pay Tshs 19.2 billion {USD 12 million} to IPTL every month for production o 60mw instead of the initial production of 100mw.
In 1995,Tanesco signed agreement with IPTL, a joint venture between a Malaysian firm, Mechmar Corporation, and a local investor, VIP Engineering and Marketing Company Ltd for the purchase of 100mw of power from diesel generators for 20 years.
VIP Engineering owns 30 per cent equity while Mechmar Corporation of Malaysia owns 70 per cent.
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From: Yona Maro
Pastor 'Tunde Bakare delivered this expose on Fuel Subsidy at The Latter Rain Assembly a few hours ago. Please read, digest, and share with as many people as you can. ENOUGH IS ENOUGH!!!
1) DEFINITION
To subsidise is to sell a product below the cost of production. Since the federal government has been secretive about the state of our refineries and their production capacity, we will focus on importation rather than production. So, in essence, within the Nigerian Fuel Subsidy context, to subsidise is to sell petrol below the cost of importation.
2) THE UNSUBSTANTIATED CLAIMS OF THE FEDERAL GOVERNMENT
The Nigerian government claims that Nigerians consume 34 million litres of petrol per day. The government has also said publicly that N141 per litre is the unsubsidised pump price of petrol imported into Nigeria. (N131.70 kobo being the landing price and N9.30 kobo being profit.)
3) ANNUAL COST OF IMPORTATION
Daily Fuel Consumption: 34 million litres
Cost at Pump: N141.00
No. of days in a regular year: 365 days
Total cost of all petrol imported yearly into Nigeria:
Litres Naira Days
34m x 141 x 365
= N1.75 trillion
4) COST BORNE BY THE CONSUMERS
Nigerians have been paying N65 per litre for fuel, haven’t we? Therefore, cost borne by the consumers =
Litres Naira Days
34m x 65 x 365
= N807 billion
5) COST OF SUBSIDY BORNE BY THE GOVERNMENT
In 2011 alone, government claimed to have spent N1.3 trillion by October – the bill for the full year, assuming a constant rate of consumption is N1.56 trillion.
Consequently, the true cost of subsidy borne by the government is:
Total cost of importation minus total borne by consumers, i.e. N1.75 trillion minus N807 billion = N943 billion.
Unexplainable difference: N617 billion
The federal government of Nigeria cannot explain the difference between the amount actually disbursed for subsidy and the cost borne by Nigerians (N1.56 trillion minus N943 billion = N617 billion).
6) BOGUS CLAIM BY THE GOVERNMENT
A government official has claimed that the shortfall of N617 billion is what goes to subsidising our neighbours through smuggling. This is pathetic. But let us assume (assumption being the lowest level of knowledge) that the government is unable to protect our borders and checkmate the brisk smuggling going on. Even then, the figures still don’t add up. This is because even if 50% of the petrol consumed in each of our neighbouring countries is illegally exported from Nigeria, the figures are still inaccurate. Why?
WORLD BANK’S FIGURES: POPULATIONS OF WEST AFRICAN COUNTRIES
NIGERIA: 158.4 million
BENIN: 8.8 million
TOGO: 6 million
CAMEROUN: 19.2 million
NIGER: 15.5 million
CHAD: 11.2 million
GHANA: 24.4 million
The total population of all our six (6) neighbours is 85.5 million.
Let’s do some more arithmetic:
a) Rate of Petrol Consumption in Nigeria: Total consumed divided by total population:
34 million litres divided by 158.8 million people = 0.21 litres per person per day.
b) Rate of Petrol Consumption in all our 6 neighbouring countries, assumed to be the same as Nigeria:
0.2 litres x 85.5 million people = 18.35 million litres per day
Now, if we assume that 50% of the petrol consumed in all the six neighbouring countries comes from Nigeria, this value come to 9.18 million litres per day.
7) PATHETIC ABSURDITY
There are two illogicalities flowing from this smuggling saga.
a) If 9.18 million litres of petrol is truly smuggled out of our borders per day, then ours is the most porous nation in the word. This is why: The biggest fuel tankers in Nigeria have a capacity of about 36,000 litres. To smuggle 9.18 million litres of fuel, you need 254 trucks. What our government is telling us is that 254 huge tankers pass through our borders every day and they cannot do anything about it. This is not just acute incompetence, but also a serious security challenge. For if the government cannot stop 254 tanker trailers from crossing the border daily, how can they stop importation of weapons or even invasion by a foreign country?
b) 2nd illogicality:
Even if we believe the government and assume that about 9.18 million litres is actually taken to our neighbours by way of smuggling every day, and all this is subsidised by the Nigerian government, the figures being touted as subsidy still don’t add up. This is why:
Difference between pump price before and after subsidy removal =
N141.00 – N65.00 = N76.00
Total spent on subsidizing petrol to our neighbours annually =
N76.00 x 9.18 million litres x 365 days = N255 billion
If you take the N255 billion away from the N617 billion shortfall that the government cannot explain, there is still a shortfall of N362 billion. The government still needs to tell us what/who is eating up this N362 billion ($2.26 billion USD).
ILLOGICAL ASSUMPTIONS
i) We have assumed that there are no working refineries in Nigeria and so no local petrol production whatsoever – yet, there is, even if the refineries are working below capacity.
ii) Nigeria actually consumes 34 million litres of petrol per day. Most experts disagree and give a figure between 20 and 25 million litres per day. Yet there is still an unexplainable shortfall even if we use the exaggerated figure of the government.
iii) Ghana, Togo, Benin, Cameroun, Niger, and Chad all consume the same rate as Nigeria and get 50% of their petrol illegally from Nigeria through smuggling.
These figures simply show the incompetence and insincerity of our government officials. This is pure banditry.
9) FACT 9: The simplest part of the fuel subsidy arithmetic will reveal one startling fact: That the government does not need to subsidise our petrol at all if we reject corruption and sleaze as a way of life. Check this out:
a) NNPC crude oil allocation for local consumption = 400,000 barrels per day (from a total of 2.450 million barrels per day).
b) If our refineries work at just 30%, 280,000 barrels can be sold on the international market, leaving the rest for local production.
c) Money accruing to the federal government through NNPC on the sale, using $80/bbl – a conservative figure as against the current price of $100/bbl – would be $22.4m per day. Annually this translates to $8.176bn or N1.3 trillion.
d) The government does not need to subsidise our petrol imports - at least not from the Federation Account. The same crude that should have been refined by NNPC is simply sold on the international market (since our refineries barely work) and the money is used to buy petrol. The 400,000 barrels per day given to NNPC for local consumption can either be refined by NNPC or sold to pay for imports. This absurdity called subsidy should be funded with this money, not the regular FGN budget.
If the FGN uses it regular budget for subsidising petrol, then what happens to the crude oil given to NNPC for local refining that gets sold on the international market?
10) TACTICAL BLUNDER
The federal government is making the deregulation issue a revenue problem. Nigerians are not against deregulation. We have seen deregulation in the telecom sector and Nigerians are better for it, as even the poor have access to telephones now right before the eyes of those who think it is not for them. What is happening presently is not deregulation but an all-time high fuel pump increase, unprecedented in the history of our nation by a government that has gone broke due to excessive and reckless spending largely on themselves. If the excesses of all the three tiers of government are seriously curbed, that would free enough money for infrastructural development without unduly punishing the poor citizens of this country.
Let me just cite, in closing, the example of National Assembly excesses and misplaced spending as contained in the 2012 budget proposal:
1.Number of Senators 109
2.Number of Members of the House of Representatives 360
3.Total Number of Legislators 469
4.2012 Budget Proposal for the National Assembly N150 billion
5.Average Cost of Maintaining Each Member N320 million
6.Average Cost of Maintaining Each Member in USD $2.1 million/year
Time has come for the citizens of this country to hold the government accountable and demand the prosecution of those bleeding our nation to death. Until this government downsizes, cuts down its profligacy and leads by example in modesty and moderation, the poor people of this country will not and must not subsidise the excesses of the oil sector fat cats and the immorality precipitate fiscal scandal of the self-centred and indulgent lifestyles of those in government.
Here is a hidden treasure of wisdom for those in power while there is still time to make amends:
PROVERBS 21:6&7
“Getting treasures by a lying tongue is the fleeting fantasy of those who seek death. The violence of the wicked will destroy them because they refuse to do just.”
A word of counsel for those who voted for such soulishly indulgent leadership:
“Never trust a man who once had no shoes, or you may end up losing your legs.”
This is the conclusion of the matter on subsidy removal:
i) “If a ruler pays attention to lies, all his servants become wicked.” (Proverbs 29:12)
ii) “The Righteous God wisely considers the house of the wicked, overthrowing the wicked for their wickedness. Whoever shuts his ears to the cry of the poor will also cry himself and will not be heard.” (Proverbs 21:12&13)
Thanks for your attention. God bless you all.
Pastor ‘Tunde Bakare
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Tembelea www.mwanabidii.com Kwa mijadala Moto Moto
Kujiondoa Tuma Email kwenda
from Yona Maro
The United States' relationship with Saudi Arabia has been one of the cornerstones of U.S. policy in the Middle East for decades. Despite their substantial differences in history, culture, and governance, the two countries have generally agreed on important political and economic issues and have often relied on each other to secure mutual aims. The 1990-91 Gulf War is perhaps the most obvious example, but their ongoing cooperation on maintaining regional stability, moderating the global oil market, and pursuing terrorists should not be downplayed.
http://i.cfr.org/content/publications/attachments/Saudi_Arabia_CSR63.pdf
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Kuchangia Wahanga wa Mvua DSM +255786 806028 Kwa Airtel Money na +255767806028 kwa Mpesa
from Judy Miriga
Folks,
Al-Bashir is playing riddle mischief with peoples lives, he fakes war to South Sudan with the help of Museveni, this is crimes against humanity.......it is unacceptable and this must stop immediately. It is because he wants full control of Oil and Gas on his terms. People of the world must stand together to help South Sudan stability against invasion of Al-Bashir through the help of Al-shabaab.
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com
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Sudan: Obama Renews Sanctions Against Khartoum
2 November 2010
document
President Barack Obama has renewed sanctions agains the Sudanese government in Khartoum.
The following is the text of a letter he sent to the Speaker of the U.S. House of Representatives and the President of the U.S. Senate, announcing his decision:
November 1, 2010
Dear Madam Speaker: (Dear Mr. President:)
Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date.
In accordance with this provision, I have sent to the Federal Register for publication the enclosed notice stating that the Sudan emergency is to continue in effect beyond November 3, 2010.
http://www.un.org/
The UN provides water to the displaced in south Darfur. Sanctions against Sudan have been renewed, apparently as part of efforts to stop the violence in Darfur.
The crisis constituted by the actions and policies of the Government of Sudan that led to the declaration of a national emergency in Executive Order 13067 of November 3, 1997, and the expansion of that emergency in Executive Order 13400 of April 26, 2006, and with respect to which additional steps were taken in Executive Order 13412 of October 13, 2006, has not been resolved.
These actions and policies are hostile to U.S. interests and pose a continuing unusual and extraordinary threat to the national security and foreign policy of the United States. Therefore, I have determined that it is necessary to continue the national emergency declared with respect to Sudan and maintain in force sanctions against Sudan to respond to this threat.
Sincerely,
BARACK OBAMA
Sudan: Bashir Urges Army to Crush All Rebellions
26 November 2011
Khartoum — The Sudanese president Omer Hassan al-Bashir has called on the armed forces to finish cleaning up all rebel pockets across the country particularly in Darfur, South Kordofan and Blue Nile.
Speaking before the National Congress Party (NCP) general conference Bashir said that rebellions broke out in these areas driven by mercenaries and foreign agents who put the country in crisis.
Sudan is battling forces from the Sudan People's Liberation Movement North (SPLM-N) in Blue Nile and South Kordofan, in conflicts that erupted this year.
Daily Nation
The SPLM-N used to be the northern sector of the South Sudan dominant party when the country was united.
Bashir again reiterated that Sudan will adopt Islamic Shari'a law but emphasized that this is not about penal code but establishing a "Quaranic society".
The Sudanese leader said that the entire world is undergoing changes and that people everywhere and not just in Sudan are looking for freedom.
"We want to free the will of the people from subordination and oppression....humanity needs [Prophet] Mohammad's guidance," Bashir said.
Sudan: Khartoum Suspends Southern Oil Exports
28 November 2011
Khartoum — Sudan suspended South Sudanese oil exports through its territory owing to dispute over transfer fees, the former's oil minister Ali Ahmad Osman announced on Monday.
Osman said that the exports had been halted since November 17. "The South Sudanese government has not paid $US727 mn, the pending amount since October," Osman said.
He added that Sudan will not allow any oil or petroleum to pass through unless they abided by the written agreement between the two states.
Sudan: UN - 60,000 Displaced in Blue Nile
25 November 2011
Damazin — The number of people fleeing from Sudan's southern Blue Nile state has reached 60,000 people, a report issued by the United Nations Office of Humanitarian Affairs (UNOHA) said on Friday.
The displacement comes as result of constant fighting between the Sudanese armed forces and the opposition Sudan People's Liberation Army (SPLA) in the state since September 1, 2011.
According to the report, the continued confrontations are still forcing civilians to flee and exposing them to serious damage. The latest air strikes launched by the Sudanese Air Force (SAF) on November 12 have left several dead and many wounded.
The UN High Commissioner for Refugees (UNHCR) said last week that about 1, 200 people had fled Blue Nile state to South Sudan's Upper Nile state.
from Judy Miriga
He he heeee.....!!!
What became of Kenya's Oil and Gas with Triton saga?
They better not touch Willy Mutunga and Nyachae.........!!!
It is getting juicy.......Cheers ....!!!
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com
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Uganda: Museveni's Oil Secrets Finally Coming Out
Andrea Bohnstedt
22 October 2011
Stick a hot-pink little umbrella in your drink, lean back and enjoy the show! That's at least what I felt when I followed the discussions in Uganda's parliament about the production-sharing agreements (PSA) with the oil firms.
President Museveni's government has always kept the PSAs carefully guarded. The people can't, mustn't know what's going on with this national resource. Security reasons, of course - 'It's like a war' â-' and really, no need to worry your pretty little heads anyway. It's best left in the hands of the president and his men who will know what to do with all that oil. And the president's son and his men were guarding it, so really, what's the worry?
This threw up a bit of an issue when the Ugandan government got into a fight with Heritage Oil over whether the company was liable to pay capital gains tax on the sale of its assets to Tullow Oil. Heritage said 'Oh no we aren't!', GoU said 'Oh yes you are!' - and for any outsider, it was difficult to assess because, well, the PSAs were secret.
But things got properly interesting when Uganda's MPs - pretty much across party lines - decided to ask their speaker to recall parliament to discuss the oil agreements and the overall oil sector, and then also insisted on seeing the PSAs. Parliament was eventually recalled, the request to see the PSAs was also eventually granted. But the restrictions placed on their access were ridiculous: No copies, no note taking, no taking away the documents, no talking about them. Not exactly conducive to analyzing very technical agreements.
And then it got more interesting - and murky: President Museveni was properly outraged that anyone - as suggested in a Wikileaks cable - should think that he'd take bribes. Yes, I laughed, too. But in this specific case, he might actually have had a point: If ENI indeed did pay him, they didn't get very much in return. So far, at least.
An MP then accused Tullow Oil of bribing various government officials, which Tullow also emphatically denied. The Ugandan Independent just published an interesting back story on Wednesday, describing how they had received documents showing bribes paid by Tullow to Foreign Minister Kutesa and then Energy Minister Hilary Onek. They tried several avenues of investigating the truth of these accusations, but could not find sufficient evidence.
Parliament resolved to investigate Prime Minister Amama Mbabazi, Foreign Minister Sam Kutesa and Internal Affairs Minister (and former Energy Minister) Onek. More aggravation for Kutesa -Museveni's son's father in law - who had already been taken to court alongside government chief whip John Nasasira and Minister of State for Labour Mwesigwa Rukutana for their alleged embezzlement of funds for the 2007 Commonwealth Heads of Government Meeting (CHOGM).
All three have 'stepped aside to clear their name', to use a time-honoured Kenyan phrase. And in contrast to fellow accused, former Vice President Gilbert Bukenya, they were not locked up, but let out on bail. Mbabazi and Onek are still clinging on by the seat of their pants: Onek says that he will resign 'when the parliamentary probe begins', but may well be forced out by a censure motion.
There are many interesting issues in this whole debate: In contrast to e.g. debates over car loans, MPs appeared less motivated by their own interests and, across party lines, actually pushed a sensible agenda that is of interest to all citizens. This is no doubt an encouraging development, and I wonder if they can keep this momentum.
I doubt that Museveni can afford to sacrifice Kutesa, one of his key backers, and in the past, dragging high-ranking government members to court has hardly ever resulted in any credible prosecutions (undoubtedly a bit of a déjà vu for Kenyans). But there is certainly a whole lot of pressure on the president's entourage at the same time that support from his own party appears to be falling: NRM MPs joined opposition MPs in pushing for more transparency in the oil sector, and Museveni must be busy pondering how he can bring those unruly NRM kids back in line.
For Uganda's nascent oil sector, this latest development has been more than overdue: MPs want the legal and regulatory framework for the oil sector completed before any further decisions are made. This is something that Uganda's government had long, long dragged its feet on, despite a great many offers of support.
For Tullow, trailblazers in development of the country's oil sector, the news are not so good: at the very least, they face further delays in concluding the farm in of CNOOC and Total, partners that the exploration company needs to bring in both finances and technical expertise on oil production.
Government needs to authorise this deal, but Museveni refused to agree to the stabilisation clause that would protect them from legal and tax changes - a standard agreement without which it is impossible to borrow against assets and, therefore, invest. And this happened even before parliament got involved. They will certainly hope that Uganda doesn't renege on its contracts with them on a wider scale. And the beginning of oil production will be pushed back yet again.
The writer is an independent country risk analyst and publishes the online business magazine, www.ratio-magazine.com.
From: Tebiti Oisaboke
Strong man Sonko bin Mbuvi is on the headlines once again. This time clad in an all time boxing and fireman's gear ready for Kenya's highest boxing belt. He stormed into the KPL's offices demanding explanations about the reckless accident which has claimed 100+ lives. My heart and feelings goes to the families, relatives and friends of those who lost loved ones. Arap Sonko should have done the same with teacher's union when they demanded the recruitment of an additional staff members. Sonko, you are a national leader and not just an MP for Makadara.
TOI
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Sonko storms KPC offices over Sinai fire tragedy
http://www.ntv.co.ke
Three members of parliament and their supporters stormed the Kenya pipeline headquarters demanding an explanation on the fire tragedy that left a trail of destruction in the Sinai slum. The group led by Makadara Member of Parliament Gideon Mbuvi alias Mike Sonko and his Embakasi counterpart Ferdinand Waititu roughed up security officers at the entrance before forcing its way to the lift. The group was however unable to speak to the company management. The MPs are demanding full compensation for the victims and their families.
Reports Leo Odera Omolo
NEWS emerging from Kampala says that the London-based Tullow Oil has announced its discovery of two more oil wells in Western Uganda.
The Irish company says it has encountered oil line with pre-drilling expectations in Albertine basin.
The oil prospecting company said it had discovered hydrocarbon {oil and gas} bearing reservoirs in Jobi-East 1 and Mpyo-3 well sunk in exploration area EA-1 seismic in the Lake Albert Rift basin.
A gross one billion barrels of oil has been discovered to date in Uganda’s Albertine Rift. With many prospect still to be drilled, Tullow Oil Plc believes the basin has an additional 1.5 billion barrels of oil yet to be found.
“Jobi-East-I and Mpyo 3B well results mark an excellent start to the next phase of exploration and appraisal campaign in the basin to determine the total oil resource base, says Angus McCross, the Tullow’s exploration director.
The logging and sampling operations confirmed the presence of oil in two high quality reservoir zones. In addition, gas has also been logged and sampled with sands.
Tullow Oil has interest in EA-1 as well as exploration area 2 and 3A in Uganda. This firm gained a foothold in the landlocked country through the acquisition of Energy Africa in2004 and Hardman Resources in 2007.
“We look forward to more exciting wells as we endeavor to determine the total oil resources base, which will underpin the basin-wide development preparation in progress,” adds McCross.
At the same time Tullow CEO Aidan Heavy was also quoted as saying that plans to accelerate production stage of highly successful Uganda blocks are underway.
In the neighboring Kenya meanwhile, a Canadian oil exploration firm, Vanoil Energy, will spend USD 4.6 million on acquisition of seismic data in Block 3B in Northern Kenya in preparation for drilling of oil and gas wells.
The Canadian firm has contracted the Bureau of Geophysical Prospecting {BCP] to carry out the seismic survey to map out potential drilling sites.
Completion of the data acquisition is expected by the end of September 2011. Dal Brynalsen the Vanoil CEO said the objective of the 2011 seismic program me is to delineate more leads in Block 3B and upgrade three known leads to possible drillable target.”We are very pleasant to have executed a second agreement and look forward to engaging such a high quality organization to implement our seismic plans,” he said.
Evaluation is going on for 2010 seismic program which cost over USD 5 million Vanoil has executed another contract with BGP for USD 3.5 million involving acquisition of 373 kilometer data.
Additional costs will be incurred on technical equipment audit, quality assurance control, data reprocessing, interpretation and integration with other geophysical or geological data.
A crew is being mobilized to commence field operations as a sensitization grass roots resident in the area is ongoing.
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Reports Leo Odera Omolo
INFORMATION emerging from the EAC secretariat in Arusha says the EAC has agreed on the construction of the Dar Es Salaam-Tanga-Mombasa natural gas pipeline.
The pipeline will potentially reduce the cost of energy in the region as more opportunities for natural gas open up.
The Community’s Arusha based secretariat approved a feasibility study conducted by COWI consultancy firm from Denmark. The pipeline is expected to carry natural gas from the Songo Songo Island from the Mnazi Bay gas fields in Southern Tanzania near the border with the neighboring Mozambique.
Recent discoveries of natural gas off the coast of Tanzania have taken the East African nation’s total reserves 7.5 trillion cubic feet, sufficient to allow exports to the region.
African Development Bank under the New Partnership for African Development- Infrastructure Project Preparatory Facility is facilitating the construction of the pipeline with a grant of USD561,700 for the project.
Based on demand for gas the pipeline has been estimated to be a 24 –inch line from Ubungoin Dar Es Salaam to the Kenyan coastal port City of Mombasa.
There will be a metering/regulating station at Tanga and Arusha branch and another at the end of the line at Mombasa.
The pipeline is expected to significantly contribute to diversification of energy sources within the region thereby enhancing security of energy supply.
“Diversification will mitigate the challenges arising from reliance on a limited type of energy sources in the region”, the Permanent Secretary in the Kenyan Ministry of Energy, Patrick Nyoike said, adding that the pipeline will also contribute to the reduction of energy costs and shield power generation from variability of weather and international crude oil prices. The PS said the pipeline project will also support cement manufacturing in Tanga as well as supply power for tourism and industrial activities.
Demand for power is surging in Tanzania and the country is expected to save millions of dollars over the next 20 years using natural gas instead of oil imports.
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