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East Africa is world's new energy frontier

Discussion in 'International Forum' started by R.B, Aug 11, 2012.

  1. R.B

    R.B JF-Expert Member

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    Aug 11, 2012
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    East coast of Africa was written off as a basket case. Now it's on the cusp of energy riches as the region becomes the world's hottest oil and natural gas zone and is likely to become a major gas exporter.

    "East Africa used to be regarded as an oil industry backwater, a poorer relative to the continent's resource-rich north and west," the Financial Times observed.

    "That's changed over the past 12 months as majors and independents invest hundreds of millions of dollars in exploration and compete to snap up licenses on the continent's last hydrocarbon frontier."

    Indeed, the region's energy boom's so great the main impediment is a shortage of deep-water rigs. This is due to a drilling boom and a downturn in production of new offshore rigs during the recession that began in 2008.

    Industry sources say 50 new rigs are planned but the shortage is expected to persist for some time with charter rates hitting $600,000 per day.

    Tullow Oil, a London wildcatter, and Britain's Heritage Oil got the ball rolling in 2006 when they struck oil in Uganda's sector of the 3,500-square-mile Lake Albert rift basin which extends into the Democratic Republic of Congo.

    They plan to extend exploration to the East African rift basins of Kenya, the region's biggest economy, and Ethiopia in 2013.
    The Lake Albert field contains an estimated 1 billion barrels of oil, making it the biggest onshore field found in sub-Saharan Africa in two decades.

    In March, Tullow sold one-third of its interest in its Uganda blocks to the China National Offshore Oil Corp. for $1.467 billion. CNOOC and France's Total plan to spend several billion dollars on developing the field over the next few years.

    But things got really turned around in February 2011 when Texas company Anadarko Petroleum Corp., one of the world's largest independent oil and gas outfits, and Cove Energy of London hit natural gas at their Windjammer well in the Indian Ocean off Mozambique, where exploration is most advanced.

    Two other strikes quickly followed, giving them an estimated 12 trillion cubic feet of gas, or 2.1 billion barrels of oil equivalent. The field could contain up to 30 tcf.

    Italy's Eni, lead partner in Mozambique's offshore Mamba Northeast field, announced a new giant gas discovery March 26 that boosted reserves there to at least 10 tcf.

    Eni says the field off Cape Delgado holds a potential 40 tcf of gas. The Financial Times said the Mozambique fields could contain up to 60 tcf.

    Anadarko and Cove are spending $150 million on exploration in Uganda over the next two years and looking to expand into Kenya, where oil was discovered this year in the northwestern Turkana region.

    These finds, spearheaded by Tullow and its Canadian partner Africa Oil Corp., showed strong indications the oil-bearing strata runs into Ethiopia, where exploration is getting under way.

    Africa Oil Corp recently hit pay dirt in Puntland. Australian explorer Jacka Resources has moved into the Habra Garhajis block in southwestern Somaliland, which declared its independence in 1991 and has enjoyed relative stability despite the Somalia bloodletting, to start exploration work.

    Norway's Statoil made a major gas find off Tanzania, Mozambique's northern neighbor, in February, with reserves estimated at 5 tcf. That's the biggest find so far in Tanzania, which will auction off 16 offshore oil exploration blocks in September, with the process due to close in 2013.

    Africa-focused Ophir Energy and the BG Group of Britain, the largest supplier of liquefied natural gas to the United States, have recently made significant gas finds off Tanzania. Meshack Kagya, top geologist with the state-run Tanzania Petroleum Development Corp., said the country's gas reserves stand at 10 tcf and are expected to grow.

    The gas finds are expected to establish the region as a key hub for supplying the energy-hungry Asian market, particularly China and India. LNG shipments will go directly across the India Ocean from Kenya's Mombasa and other ports that are expected to be constructed as the energy boom transforms East Africa's economies.

    Read more: East Africa is world's new energy frontier - UPI.com

     
  2. k

    kajima JF-Expert Member

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    Founded natural gas offshore and onshore Tanzania accounts to 30tcf
    Source: Internet and operators websites
     
  3. e

    emalau JF-Expert Member

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    Yes, but can the citizens of east Africa benefit from this resources like it the blessing to Arabs? Given the prevailing situation of corruption I'm skeptical as far as the discovery is concerned.
     
  4. a

    andreakalima JF-Expert Member

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    East Africa (Tanzania in particular) we are blessed with all resources u can mention but the problem is governance...systems in place to manage those resources & benefit all citizens even indirectly through provision of good social services (education,health, water,roads,railway lines etc) imagine at the moment TZ (of about 45 milions population) dont have CITI SCAN in any of its Public hospital, to complicate situation further, dont have national carrier though politicians claims tourism sector is number 2 forex earner. how do u expect more tourists to visit ur sites while u dont have national carrier to ferry them? u cant depend on ur neighbouring KQ, Rwandair& Ethiopian to bring tourist in ur country while on the other hand they look at u as a threat/competitor to their tourism business, they can use even "devil approach" to tarnish TZ image so that to attract those tourist to visit Kenya, Ethiopia,Rwanda instead of urs. The same applies to Gas&Oil discovery currently we dont hav structure in place for this Gas&petroleum discovery to benefit TZ. ask urself do we have mechanism to track these foreigners while they explore these valuable resources? what about local staff capacity? andreakalima@gmail.com
     
  5. a

    armanisankara JF-Expert Member

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    Aug 11, 2012
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    mafisadi wanafurahia habari kama hizi wanajua wataongeza account zao za nje.. wazee wa vijisenti wanacheka tu..
     
  6. N

    Nonda JF-Expert Member

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    Aug 12, 2012
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    Katika hili ni vyema kuanza kujitayarisha kwa vifo. Wenye mali wanaanza kupanga vita na kutupiga mabomu.
    Ndio umeona, Kenya ameshaingizwa vitani, Uganda msaada wa kumsaka Kony na sisi mazoezi ya kukabiliana na pirates. Dalili ya mvua ni mawingu.

    Zile balozi za US Nairobi na Dar hawakuziripua kwa bahati mbaya. Ni mkakati. Mkuu Mkandara amesema complex nyengine waliyoijenga ni kubwa kushinda zote katika ukanda huu. Afghanistan pia wamejenga complex kubwa ambayo itakuwa na wafanyakazi maelfu.

    Wameshasema watasaidia kujenga Northern corridor ili watakapoyagida kutoka hizo nchi nyengine iwe rahisi kuyasafirisha.

    Kwa hiyo, tukae mkao wa kuliwa sio kula.Tumeshazoea "kuliwa", wameanza madini sasa wanakuja kwenye wese!
     
  7. m

    mwathai Senior Member

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    Aug 13, 2012
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    why this hopelessness? Tanzania for sure has a problem getting things going. But it is strange to expect LNG processing plants or other facilities, while the resource is still be discovered. Discovery means just that. A baby cann't run before crawling.
    Even then we have to ensure that the people entrusted with the management of revenue from the resources do not steal it. But we must also stop asking them to steal and then complain.
     
  8. wehoodie

    wehoodie JF-Expert Member

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    Aug 13, 2012
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    ...Until one day when these resources will be converted into tangible benefits/development that the commoners enjoys, it means nothing to the majority:alien:...E.Africa should be watchful of Oil Curse, Nigeria is an example.....

    With all the Oil and Big economy Lagos is tough as hell...no power 24/7, traffic is hilarious...the fighting for resources/killing is shaking....EA (tz) need to align our priority well ahead and enact the relevant legislation...do we even have the Petroleum/Gas Act?
     
  9. rmashauri

    rmashauri JF-Expert Member

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    Aug 13, 2012
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    Halafu watakufa na kuziacha hukohuko nje ya nchi. Huu ulafi na ubinafsi wa viongozi wetu umepitiliza
     
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