The African Nation That Can’t Get Its Energy Industry Off The Ground - EntornoInteligente /

Home Oil Prices Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Finance the Economy the Markets Investing & Trading Reports Commodities Gold Silver Breaking News Premium Articles Community My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 10 mins 33.99 +0.50 +1.49% Brent Crude • 10 mins 36.13 +0.38 +1.06% Natural Gas • 10 mins 1.729 -0.042 -2.37% Mars US • 20 hours 33.54 +1.38 +4.29% Opec Basket • 3 days 28.43 +0.22 +0.78% Urals • 2 days 33.55 -0.25 -0.74% Louisiana Light • 2 days 35.06 +1.26 +3.73% Louisiana Light • 2 days 35.06 +1.26 +3.73% Bonny Light • 2 days 34.09 +1.14 +3.46% Mexican Basket • 2 days 27.71 +1.16 +4.37% Natural Gas • 10 mins 1.729 -0.042 -2.37% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

Marine • 2 days 33.12 -0.27 -0.81% Murban • 2 days 33.12 -0.20 -0.60% Iran Heavy • 2 days 31.31 +1.63 +5.49% Basra Light • 2 days 37.65 +1.31 +3.60% Saharan Blend • 2 days 34.55 +1.58 +4.79% Bonny Light • 2 days 34.09 +1.14 +3.46% Bonny Light • 2 days 34.09 +1.14 +3.46% Girassol • 2 days 34.90 +1.21 +3.59% Opec Basket • 3 days 28.43 +0.22 +0.78% OPEC Members Monthly Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

Canadian Crude Index • 15 mins 23.39 +0.75 +3.31% Western Canadian Select • 14 hours 29.99 +1.53 +5.38% Canadian Condensate • 14 hours 32.49 +1.53 +4.94% Premium Synthetic • 14 hours 33.89 +1.53 +4.73% Sweet Crude • 14 hours 33.49 +1.53 +4.79% Peace Sour • 14 hours 28.49 +1.53 +5.68% Peace Sour • 14 hours 28.49 +1.53 +5.68% Light Sour Blend • 14 hours 28.99 +1.53 +5.57% Syncrude Sweet Premium • 14 hours 33.49 +1.53 +4.79% Central Alberta • 14 hours 28.49 +1.53 +5.68% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

Louisiana Light • 2 days 35.06 +1.26 +3.73% Domestic Swt. @ Cushing • 2 days 30.25 +1.00 +3.42% Giddings • 2 days 24.00 +1.00 +4.35% ANS West Coast • 3 days 31.90 -0.44 -1.36% West Texas Sour • 2 days 27.44 +0.99 +3.74% Eagle Ford • 2 days 31.39 +0.99 +3.26% Eagle Ford • 2 days 31.39 +0.99 +3.26% Oklahoma Sweet • 2 days 30.25 +1.00 +3.42% Kansas Common • 2 days 23.75 +1.00 +4.40% Buena Vista • 2 days 37.07 +0.99 +2.74% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

1D 1M 3M 1Y All Charts Discussion Headlines 35 mins OPEC Producer Algeria Aims To Build $3.6B Solar Power Projects 3 hours Saudi Arabia Suspends Plans To Ship U.S. LNG 4 hours Tulsa Woos Tesla With Musk Statue 6 hours New Mexico Oil And Gas Lease Sale Postponed Without Notice 22 hours National Oil Companies Slash Exploration Budgets As Low Price Bites 1 day Ukraine’s Port Odessa Welcomes First U.S. WTI Crude Cargo 1 day Are Oil And Gas Drillers Still Interested In Lease Sales? 1 day Google Refuses To Assist Oil Companies Citing Ethic Concerns 1 day IEA: The Renewable Energy Boom Will Restart In 2021 1 day China Is Buying Up Canadian Crude Again 2 days Oil Jumps After API Reports Draw In Crude Oil Inventories 2 days Spain Targets Net Zero Emissions By 2050 2 days Saudi Aramco Shares Recover To Level Before Oil Crash 2 days U.S. Overtakes China As Most Attractive Destination For Renewables 2 days Most Oil Companies Aren’t Returning Coronavirus Emergency Loans 2 days PetroChina’s Biggest Refinery To Restart In June 2 days Tesla To Raise Price On Full Self-Driving Models 3 days EIA Predicts A Record Drop In U.S. Shale Oil Production 3 days Venezuela Could Lose Its Most-Prized Oil Asset Citgo  3 days California Fires Back At Elon Musk: Denies SpaceX Funding 3 days Iran Warns The U.S. Not To Interfere With Venezuelan Fuel Shipments 3 days Total Backs Out Of Buying Occidental Assets 3 days Oman’s Flagship Solar Project Got Liquidated Due To Low Oil Prices 3 days UK Oil Tanker Attacked By Pirates Off Yemen Coast 6 days China Backs Down, Pulls Survey Vessel From Malaysian Waters 6 days Kurdish Government May Close 250,000 Bpd Oil Deal With Iraq 6 days Oil Price Crash Leads To Large Drop In U.S. Fixed Investment 6 days Russia’s Oil Giant Rosneft Quits All Venezuelan Operations 6 days China Refinery Runs Jump As Nation Emerges From Lockdown 7 days Another 1,000 Texas Oil & Gas Jobs Vanish 7 days U.S. Fuel Import Prices Drop The Most On Record 7 days IEA: Oil Market Recovery Faces Two Major Uncertainties 7 days Oilfield Services Stocks Lose Half Their Value In 2020 7 days Renewable Energy Sector Sheds 600,000 Jobs In Pandemic 7 days Iran Sends Gasoline To Crisis-Stricken Venezuela 8 days FBI Probes More Firms Over Venezuelan Oil Deal 8 days Nigerian LNG Has Nowhere To Go As European Demand Crashes 8 days Asian LNG Prices Spike 20% As Demand Returns 8 days Chinese Natural Gas Seller: Prices Could Go Negative 8 days OPEC’s No.2 Cuts Oil Exports To Asia In Surprise Move 4 minutes Ten Years of Plunging Solar Prices 7 minutes Hydrogen Capable Natural Gas Turbines 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way 13 minutes Large gas belt discovered in China 18 mins US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China 4 hours So the President is on that Hydroxy 2 hours Payback Time: Republican Senators turn the tables on Democrats. The difference is the Republican investigations are legit. 20 hours “Fracked gas contains high amounts of methane.” 1 hour DEFIANCE – There are More of Us Than Them 18 mins Coronavirus hype biggest political hoax in history 11 hours Libya – UAE backed Haftar loses Airbase 2 hours Texas fears losing oil-rich lands in Chinese takeover of weakened energy companies 3 hours What Is Holding Back Geothermal Heating and Cooling? 24 hours Meet W.H.O.’s Goodwill Ambassador: Peng Liyuan, wife of Chinese President Xi Jinping 24 hours Gazprom fails to exempt Nord Stream-2 from EU market rules 5 hours Trumpe will win next election, hands down. 19 hours “Saudi Armada heading to U.S.”, “Dumping” is a WTO VIOLATION. 1 day Lexus Battery Million Kilometer Warranty Breaking News: OPEC Producer Algeria Aims To Build $3.6B Solar Power Projects

Find us on:

Will Shale Giant Chesapeake Go Bankrupt? U.S. shale gas pioneer Chesapeake…

Is This The End Of The LNG Boom? Several LNG cargoes got canceled…

Oil Majors Are Abandoning This Key Shale Basin Shell announced a sale of…

Home Energy Natural Gas Viktor Katona

Viktor Katona is an Group Physical Trader at MOL Group and Expert at the Russian International Affairs Council, currently based in Budapest. Disclaimer: views set…

More Info

Share Facebook Twitter Google + Linkedin Reddit Premium Content The African Nation That Can’t Get Its Energy Industry Off The Ground By Viktor Katona – May 21, 2020, 2:00 PM CDT Join Our Community The African continent witnessed different reactions to the ongoing period of depressed demand – mature producers like Nigeria and Angola are facing liquidity issues and struggle to keep their 2020 budget afloat, whilst up-and-coming oil-producing nations like Senegal or Ghana are expected to have a relatively cushioned blow thanks to the economic steam they’ve picked up in the past years. Yet for the long-term future of African oil production, sub-Saharan nations should proactively seek to attract international investors now, to reap future benefits when the price of crude rises back to commercially reasonable levels. The case of Tanzania, long mooted to become the star of the nascent East African oil bonanza, is a fitting example of why the coronavirus-triggered market impacts are so divergent.

Over the last couple of years Tanzanian authorities seemed to do their utmost to scare off foreign investors. First, they have ran ashore with tightening upstream licensing terms in the 4 th Licensing Round by increasing the government’s total take to a whopping 94%. Second, it has tied all oil and gas-related arbitration to local courts via the Natural Wealth and Resources Act in 2017, rendering the engagement of international majors even more difficult. Against the background of waning interest, Tanzania has also stopped all negotiations with international oil companies on the review of PSA terms and conditions. The Tanzanian government claimed that it needs to suspend communication so as to be able to focus on a thorough review of gas-related PSAs.

As a consequence of all the above developments, Tanzania is compelled to postpone its 5 th upstream licensing round well into 2021-2022, despite initial promises to hold it as soon as 2017. All this only a couple of months after Tanzania stated its intention of reopening its hydrocarbon licensing activity after an almost 5-year hiatus. The licensing round would have included 8 deep-water blocks in water depths of 2-3000 meters with quite a remarkable drilling history: Blocks 1,2,3 and 4 have a total of seven gas discoveries yet were subsequently relinquished at different stages by Statoil, ExxonMobil, BG and Ophir. Tanzania’s hydrocarbon exploration story is essentially one that revolves around oil majors going deeper and deeper into the abyss of the Indian Ocean. Related: The World’s Most Controversial Oil Frontier Falls Out Of Favor With Big Banks

The first geological surveys in Tanzania’s shallow water deposits took place in the early 1950s – despite having discovered several fields, BP could not find any commercially viable assets. Then the Italian AGIP, now part of ENI, took over and spearheaded the Tanzanian surveying drive, however most of the activity took place in shallow water in water depths of 100-200 meters and yielded no breakthrough. After the 1 st licensing round was launched in 2000, many oil majors were tempted to try their luck in a new oil frontier – exploration activities led by Ophir, Petrobras and Shell garnered some 18-20 TCf in recoverable gas reserves, enough to feed a mid-range LNG terminal but not necessarily enough to satiate domestic gas demand.

Concurrently, the island of Zanzibar which has been seeking legislative and regulatory autonomy from the federal government in Dodoma, intends to hold a deep-water offshore licensing round in 2021. The standoff between Zanzibar and mainland Tanzania is by no means new – Shell has in fact clinched 4 offshore blocks in 2002 off Zanzibar’s coast and has been waiting all these years for the two parties to decide how the revenues should be distributed between the two. With Zanzibar retaining its own parliament and president ever since it joined mainland Tanganyika in 1964, the energy-related feud is closely intertwined with Tanzania’s political travails. In September 2019 Zanzibar has issued a tender for a 2D seismic survey in its deep-water offshore in water depths of 500-3500 metres.

The crux of the matter is that despite recent legislative advances in safeguarding Zanzibar’s sovereignty over the resources in its offshore zone – among others the 2016 Zanzibar Oil and Gas Act – the federal constitution supersedes all regional laws. As things stand now, the Constitution of Tanzania stipulates that all oil and gas-related issues are a union matter, which might be read in a way that should any Zanzibari drilling result in a substantial discovery, the federal government might revisit its light-handed upstream policy. Related: Oil Jumps After API Reports Draw In Crude Oil Inventories

Tanzania has also been very slow to advance the Tanzania LNG project. Having first discovered natural gas in the country’s offshore in 2010, constructing an LNG terminal in Lindi to supply the Asian market has been on the agenda for 6-7 years already and even under the most optimistic scenarios it is only in 2028 that it would be commissioned. That is a very sluggish pace for a project that has ExxonMobil, Royal Dutch Shell and Equinor onboard and that would add some 2% per year annual growth to Tanzania’s GDP. Part of the problem is a persisting sense of discontentment that the Tanzanian President has reportedly made clear to the project’s consortium, namely that they are seeking profits to the detriment of the government and asked for a reassessment of the project’s objectives.

Although discussion on the topic is generally scant, the fact that the government has been pushing for separate talks with each investor (instead of the previously held joint round talks) to conclude the host government agreement already insinuates a lack of progress on the topic. Were governmental interference or unrealistic demands to derail Tanzania LNG, both Tanzania’s and Zanzibar’s offshore licensing round would take a biting blow. There are always different ways of looking at things, of course, the adverse consequences of the oil price drop have some positive ramifications, too, for Tanzania – this African country of some 60 million has no refinery and currently imports unprecedently cheap products from the Middle East. But the larger picture needs a positive institutional boost so as to bring Tanzania back to the forefront of East Africa’s E&P developments.

By Viktor Katona for

Download The Free Oilprice App Today

Ir a Smart Reputation

Publicidad en Entorno

Allanamiento a las oficinas de EntornoInteligente


Smart Reputation