oil and gas industry - opaloman.org

oIL, gas & mInes afrIca 20172

ERITREA

ETHIOPIA

KENYAUGANDA

TANZANIA

COMOROS

RWANDA

BURUNDI

ZIMBABWE

ZAMBIA

MOZAMBIQUE

MAD

AGAS

CAR

MALAW

I

DJIBOUTI

SOMALIA

MAYOTTE

MAURITIUS

REUNION

SEYCHELLESOver the past decade, the average economic growth in the East African countries was consistently strong, and is seen to continue to perform strongly. Kenya, Tanzania, Uganda and Rwanda specially, have managed to keep their growth high despite global economic conditions.

According to the African Economic Outlook (AEO), East Africa recorded the fastest growth on the continent in 2015 (5.6%) and is expected to grow 6.7% in 2016. This is due to each country’s investment in positive institutional reforms and policies. This makes the region the most attractive on the continent compared to others.

AN OVERVIEW OF THE EAST AFRICA ECONOMY: DISCUSSINg DEVElOpMENTS, BUIlDINg ECONOMIC OppORTUNITIES

3oIL, gas & mInes afrIca 2017

EAST AFRICA’SOIl AND gAS INDUSTRY

ERITREA

ETHIOPIA

KENYAUGANDA

TAZMANIA

COMOROS

RWANDA

BURUNDI

ZIMBABWE

ZAMBIA

MOZAMBIQUE

MAD

AGAS

CAR

MALAW

I

DJIBOUTI

SOMALIA

MAYOTTE

MAURITIUS

REUNION

SEYCHELLES

Six of the top 10 oil and gas discoveries in 2013 were in Africa.

Africa holds some 130 billion barrels of crude oil and 502 trillion cubic feet of natural gas—each about 8% of the world’s proven oil and gas reserves, respectively.

Gas strikes off East Africa’s seaboard have led to predictions that the region will become the world’s third-largest exporter of natural gas over the long-term.

East Africa’s coastal region has potential reserves of up to 441 Tcf of natural gas.(United States Geological Survey)

Kenya is the only country in East Africa with an operating refinery and which holds the region’s largest port.

Uganda could be endowed with one of the largest onshore oil reserves in the sub-Saharan Africa.

FAST FACTS

ReCenT FindS

• Morethan600millionbarrelsofoilinKenya• 3.5billionbarrelsofcommerciallyviableoil reserves in Uganda• 125trillioncubicfeet(Tcf)ofgasinMozambique

• 7TcfofgasinTanzania• 60billioncubicmetersofmethanegasinRwanda• ReserveshavealsobeenuncoveredinSouth Sudan and Ethiopia

Amid the East Africa region’s foreseen continued economic growth, special focus is placed on its energy sector.SincethediscoveryofenormousoilreservesinUgandain2006,majoroilfindsinMozambique,Tanzania,Kenya,Sudan and Ethiopia have caught the attention of some of the largest independent global oil and gas exploration companies.

Over the last six years, international oil and gas majors from UK, China and India have entered the investment market; however, most investments are currently coming from the private sector.

These discoveries have sparked optimism among business experts and investors that East Africa will become a world oil hub. These are also “expected to drive billions of dollars in annual investments in the coming years as the world seeks to tap more fossil fuels.” (PriceWaterhouseCoopers-PWC, September 2014)

ogm east africaoIL, gas & mInes afrIca 20174

OGADEN BASIN

RIFT VALLEY BASIN

LAMU BASIN

RUVU BASIN

ROVUMA BASIN

Addis AbabaETHIOPIA

SOUTHERNRIFT BASIN

ALBERTINEBASIN

KENYA

TANZANIA

MOZAMBIQUE

UGANDA

Holma

Kampala

Dodoma

Nacala

NairobiLamu

Mombasa

Dar es SalaamSongo Songo

0 5 10 15 20 25 30 35 40

East africa's prospEctivE hotspots

activE Exploration blocks in East afrrica

kenya

Ethiopia

Madagascar

tanzania

Mozambique

south sudan

Uganda

sudan

36

33

26

24

14

8

4

3

The region could be producing 500,00 bpd by 2020.

Uganda

Sudan

Kenya

Mozambique

Tanzania

nUMbEr of nEw blocks likEly to bE offErEd

gas

By 2020 in East Africa(incl. S.Sudan):

- 500,000 bpd of crude oil - 600 million cubic feet a day of gas -Exporting36million metric tonnes of lNg

The IndianOcean,off thecoastofMozambiqueandTanzania, isproving tobea richhuntingground fornaturalgasexploration.According toUSGeologicalSurveyestimates, thecombinedgas reservesofMozambiqueandTanzania couldbeashighas250 trillioncubic feet. InMozambiquealone,provengas reserveshave increaseddramaticallyfromamere4.6trillioncubicfeet in2013to98.8trillioncubicfeetasofmid-2015.Givencontinuedoffshore discoveries and the size of discoveries to date, continued growth in proven gas reserves is likely to continue into the foreseeable future.

5ogm east africa 5oIL, gas & mInes afrIca 2017

fast facts

EAST AFRICA'S pETROCHEMICAlS INDUSTRYFollowing the increasing exploration and production activities in the East African countries and the continued surge in downstream demand, the petrochemicals industry’s long-term prospects are bright, with the sector likely to become a major economic engine in the coming years. The increased demand for refined products in the region has spurred the need to fill the supply gap and improve its refining infrastructure. An approximate US$ 60 billion is projected to be spent on infrastructure developments, focusing on the northern East Africa trade corridor, where now current infrastructure is focused on the southern corridor. Thisboostisseentoadd3%toKenya’snominalGDPby2020.

ERITREA

ETHIOPIA

KENYAUGANDA

TANZANIA

COMOROS

RWANDA

BURUNDI

ZIMBABWE

ZAMBIA

MOZAMBIQUE

MAD

AGAS

CAR

MALAW

I

DJIBOUTI

SOMALIA

MAYOTTE

MAURITIUS

REUNION

SEYCHELLES

Gasoil will remain the key driver of product growth, accounting for about 47% of demand.

The demand for LPG in all EAC countries is seen to triple until 2025.

In 2013, the demand for refined products in the region totaled an estimated 7.8 million metric tons, equal to more than 200,000 bpd.

(Ecobank Research, 2013)

The regional refined products trade, which is dominated by Kenya, is currently reaching more than US$ 15 billion yearly.

Uganda and Rwanda are seen as growing re-export hubs.

The use of refined oil products in the region averaged 6% over the last five years, and is projected to reach 8% in 2016 due to rapid urbani-zation, population growth and demand for transport.

(The East African, January 2016)


pROjECTS

lokichar-laMU crUdE oil pipElinE proJEct

The construction of a crude oil pipeline from lokichar to lamu in Kenya that will transport 600 million barrels of crude oil from the lake Turkana Basin to lamu for export.

project Cost: US$ 31 million

laMU port and soUthErn sUdan-Ethiopia transport (lapssEt) corridor proJEct

A transport and infrastructure project that involves a port, a railway line, a road network, oil pipeline (cost: US$ 4 billion), an oil refinery expected to refine 120,000 bpd (cost: US$ 2.5 billion), three airports, and three resort cities.

project Cost: US$ 22 billion

Disclaimer: All images used in this material are for illustrative purposes only.

EldorEt-kaMpala-kigali pipElinE proJEct

Construction of a pipeline for refined petroleum products from Eldoret-Kampala-Kigali. Once completed, the three-leg pipeline is anticipated to significantly help facilitate Rwanda’s petroleum transportation from Nairobi, currently done by road oil tankers. The Kigali terminal will serve as the supply port to the Eastern part of DR Congo and Burundi.

kEnya lpg UptakE proMotion prograM

The promotion of liquefied petroleum gas (LPG) by the government ofKenya as the preferred alternative source of energy for cooking, replacing kerosene, charcoal and firewood. The program aims to increase the penetration of lpg to low-income households, targeting five million cylinders in three years.


bwana MkUbwa oil rEfinEry proJEct

The construction of an oil refinery in the Sub-Sahara gemstone Exchange Industrial park in Copperbelt, Ndole, Zambia, with an expected capacity to process about 5 million metric tons of oil annually. The project, seen to triple the current national crude oil supply, will be fed with crude oil through a new pipeline that will be built alongside the1,800-kilometerTazamapipeline.ItwillincludetwonewexportinglinestotheDRCongo and Tanzania to provide regional distribution of refined oil products.

project Cost: US$ 1.6 billion

Uganda oil rEfinEry

Construction of an oil refinery in Uganda’s Hoima district with the first phase expected tobe ready in2018.The initial phase is expected toproduce30,000

bpd, gradually increasing to 60,000 bpd.

project Cost: US$ 2.5 billion

oilMoz rEfinEry and indUstrial park proJEct

Expectedbecompletedby2018,theprojectinMozambiqueisseentohaveatotalcapacityof350,000bpd,withmainoutputsofJetA-1,petrol,dieselandasphalt. The industrial park is planned to be completed between 2020 and 2022.

Project Cost: US$ 5-7 billion

port sUdan rEfinEry rEhabilitation proJEct

The rehabilitation of the port Sudan Refinery to meet the increasing demand for oil products and to upgrade it to refine imported and exported crude oil.

MoMbasa-nairobi oil pipElinE

Construction of a 450-kilometer oil pipeline from Mombasa to Nairobi, which will replace the existing14-inchpipeline that has servedKenya and the region for the last 37years. The pipeline’s capacity is expected to reach 1m litres per hour (lph), up from current levelsof730,000 lphandboost fuel transportcapacityby30%.Asofnow73percent of the work is completed and what is remaining is the construction and installation of new pump stations. The project is expected to be completed in October 2017.



Mining is one of the core sectors that drives growth in the East Africa region in terms of infrastructure and economy. Apart from bring a main contributor to gDp, it also serves as a growth catalyst in other industries such as construction, power and energy and industrialization.

East Africa, has, in the last few years, attracted a lot of interest from investors in the mining and oil and gas industries due to its mineral resources that are just being discovered. The East African Community (EAC) has several mineral belts that produce tanzanite and gold, with Tanzania being the biggest gold producer in the region. (KPMG, Mining in Africa Towards 2020, 2013)

Burundi has some gold reserves along with copper, cobalt, nickel and uranium deposits.

In recent years, exploration activity in western Kenya has significantly increased. Kenya contains viable quantities

of soda ash, fluor spar, titanium, niobium, and other rare earth elements, gold, coal, iron ore, limestone, manganese, diatomite, gemstones, gypsum and melted carbon dioxide.

Tanzania is the third largest gold producer among the African gold mining regions. Its mining industry is becoming a significant source of export revenues. Ninety per cent of its minerals have yet to be exploited. Currently, large-scale uranium exploration is being done.

Uganda boasts of a range of mineral resources such as iron, uranium, tin, nickel, copper, limestone, iron ore and gold across the country.

The emergence of strong economies in the Asian markets led by China and India has brought interest in the region’s diverse mining industry.

EAST AFRICA’S MININg INDUSTRY


CURRENT pROjECTS

tanzania Mining and powEr proJEct

The construction of a coal and iron mine and a 600-megawatt coal-fired power plant in the commercial capital of Dar es Salaam, Tanzania. The project, expected to be operational in 2018-2019, will increase Tanzania’s coal-fired powergeneration capacity and exports, exploiting its 5-billion tons of coal reserves.

project Cost: US$ 3 billion

MkUJU rivEr UraniUM proJEct

The mining of uranium in the Ruvuma region in Tanzania, 470 kilometers southwestofDaresSalaam.Theprojectsholds139,600tonsofmeasuredandindicated resources and artifacts. It has US$ 1 billion in foreign investment and seentogenerateaboutUS$630milliontodirectandindirectcashflows.

taita intErnational Mining & indUstrial city (tiMic)

Kenya’s flagship project in Taita Taveta County, seen to market Kenya as a mineral destination, will contain mineral processing industries, a dry port, a fuel depot, a golf course, a natural lake, and residential and commercial buildings. Theconceptfortheprojectarosefromthediscoveryof300billiontonsofironore, copper, titanium, manganese, nickel, limestone and gemstones.

kwalE MinEral sands proJEct (kMsp)

The completion of Kenya’s first large-scale modern mining undertaking. It is considered the largest potential capital projects in Kenya, and is expected to produceupto80,000tonsofrutileinadditionto330,000tonsofilmeniteand30,000tonsofzircon,andcontributeclosetoUS$1billiontothecountry’sGDP.

Direct investment: US$ 350 million

MUi basin coal proJEct

The exploration and production of coal in the Mui Basin, located about 180kilometers east of Nairobi in Kenya. The project involves developing two blocks in the concession area, each block is estimated to host more than 400 million tons of coal reserves valued at US$ 40 billion.

Investment: US$ 500 million

kEnya liMEstonE Mining plant proJEct

The construction of a limestone mining plant in the Ngaie, Kyuso district of Kenya, a projectresultingfromthediscoveryofmassivelimestonedeposits,goingtoadepthof90meters.ItisexpectedtoprovidethegovernmentwithUS$3millioninannualrevenue.


plANNED MEgA-pROjECT

Disclaimer: All images used in this material are for illustrative purposes only.


• Automation,ProcessingEquipment&Services• CorrosionProtection&InsulationEquipment• DrillingandWellCompletion• ElectronicEquipment&Services• Engineering,Facilities,Construction• Geosciences• GovernmentDepartments,TradeOrganizations& professional Services • HealthSafetyandEnvironment• MarineEquipmentandServices• OilCompany(IOC/NOC)• Oil&GasEquipment• IntegratedOil&GasServices• Oil&GasTransportation• OilfieldServices• Pipelines,Construction,Technology,Maintenance and repairs • ProductionOperations• Refineries,PetrochemicalsandGasPlants• ReservoirEngineering• Valves,Controls,andInstrumentation

• ConveyingEquipment

• DrillingEquipment

• EnergySupply

• ExplorationTechnology

• Geologist

• InfrastructureSupportFacilitiesandEquipment

• MineralsProcessingEquipment

• Minerals

• MiningMachineryandEquipment

• SurfaceMiningEquipment

• VehiclesandEarthMobbingEquipment

exhibiToR PRoFile

ABOUT THE EVENT

leveraging the interest in the growing oil, gas and mining sectors in East Africa, the need for a dedicated event to help boost these sectors was in the offing.

ThefirstOil,Gas&MinesEastAfricaisaninternationaleventthatwillfeatureatwo-dayconferenceandassociatedtradeexhibition. It is aimed at providing a platform for professionals, companies and stakeholders to learn and understand the growth potentials of the countries in the East Africa region and showcase the newest products, services and technologies of companies in order to encourage business, improve their operations, and attract investment.

why yoU nEEd to Exhibit at oil, gas & MinEs africa (ogMa) • Learnaboutthecurrentoil,gasandminingprojectsinEastAfricafirsthand.• Beoneofthefirsttobenefitfromthefreshbusinessopportunitiespresentedbytheseprojects.• Gainknowledgeaboutthetrends,developments,andcurrentissuesinthesesectors.• Contributetothegrowthoftheemergingoil,gasandminingindustriesinEastAfricawhilepromotingyourcompany to markets beyond your region.• ObtainnewcontactsandestablishbusinessintheEastAfricamarkets.• Knowaboutyourcompetitors’newestproducts,servicesandtechnology.• Benefitfromtheexpertise,experienceandresourcesoftheorganizerswiththeirextensivemarketreach.


ABOUT THE CONFERENCEThe two-day conference will provide a venue for the industry as well as regulators to discuss various issues and challenges as well as to explore emerging opportunities and latest developments in East Africa’s Energy sector.

topic highlights

thE Most ExtEnsivE MEdia covEragEOil,Gas&MinesAfrica(OGMA)willbeaggressivelypromotedutilizingallmediachannelstoensureattractionofthelargest number of industry professionals and trade visitors possible.

• Heavyadplacementinlocalandinternationalmedia

• Advertisementsandeditorialcoverageintrade publications

• Regularpressreleasesinlocalandinternational newspapers, magazines, and websites

• EmailandFAXcampaignstargetedatindustry professionals

• SMSbroadcastsbeforeandduringtheevent

• Distributionofflyers,e-newslettersandpersonalized invitations

• PostsonsocialmediachannelssuchasTwitter, Facebook and linkedIn.

session on regional geology and Basin analysis

session on new Technologies for maximizing efficiency

session on challenges and solutions in exploration. special focus on rock Physics, geomechanics and seismic surveillance

• Petroleumprospectivityofoffshore Lamubasin,Kenya:DavieWalu FractureZone

• TectonicsoftheTriassic-Jurassic MandawaBasinofCoastalTanzania- ImplicationforGondwanaRiftingand Drifting

• DevelopmentofWaxyOilwithinEast AfricaBasedonDecisionTree Evaluation

• AirborneGravityforMiningandOilandGas Exploration• OptimizingWellLocationsinGreenFields UsingFastMarchingMethod-OptimizeWell LocationsforMillionsofCellsUsin• SimulationofAsphalteneDespositionDuring CO2Flooding-PhaseBehaviorCalculations, SimulationofAsphaltenePrecipita• Multi-propertymappingwithairborne geophysicsaspartofgeologicalmapping projects• IntegratingOilandGasProductionActivities withNature• HydrocarbonDominatedCluster-AGateway forRegionalDevelopment

• ReflectionofProcessesofNon- EquilibriumandTwo-Phasefiltration inOil-Saturatedplastichierarchic medium• CharacterizationofLaterally VaryingFractures,Representedas aNonweldedinterfacefromSeismic ReflectionResponse• UsingSeismicAttributesfor ReservoirCharacterization• TheUsageofUnconventionalTools inFormationEvaluation

oil and gas industry - opaloman.org

Documents