{jcomments on}[A war of words between Uganda’s main presidential candidates escalated on Friday, sparking fears of Egypt-style street violence should the opposition say the poll was rigged. Uganda’s main opposition leader, Kizza Besigye, repeated a warning he made to Reuters last week that Ugandans may overthrow long-standing President Yoweri Museveni with mass public protests if a February 18 poll is not fair.]

BURUNDI :

Dryka’s Danyland Drills Burundi Nickel Deposits to Determine Viability

By Fred Ojambo – Feb 4, 2011 Danyland Ltd., a subsidiary of Dwyka Diamonds Ltd., started drilling nickel deposits in Burundi to establish their commercial viability after four years of surface exploration, the Energy and Minerals Ministry said.

Results of the drilling will determine whether the company embarks on commercial production, Damien Riragonya, an adviser to the Burundian energy and minerals ministers, said today in an interview in the Ugandan capital, Kampala.

“They have done surface exploration and now they want to evaluate the drill results and determine whether to go into mining,” he said.

Danyland is exploring for the metal in the Muremera area, close to Tanzania’s Kabanga project, one of the largest known undeveloped nickel deposits in Africa, he said.

Burundi’s nickel-ore reserves stretch from the south to the northeast of the country, he said. The government of the east- central African nation is considering road, rail and power projects to encourage mining if commercially-viable deposits are discovered, said Riragonya.

To contact the reporter on this story: Fred Ojambo in Kampala via Johannesburg at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Congo, Rwanda and Burundi advance energy sector development

under News February 4th, 2011 by IFandP Newsroom

The Democratic Republic Congo, Rwanda and Burundi are tackling their energy shortages by a number of projects, covering a diversity in energy sources.

In the latest move to progress its Grand Inga hydropower project, Congo has awarded AECOM and Electricité de France (EDF) the US$13.4m feasibility study for the Grand Inga site on the Congo river. The study, funded by the African Development Bank, will consider the development of the site and the associated interconnection transmission lines. It will be carried out over a period of two years under the direction of Société Nationale d’Électricité , the country’s power utility.

“AECOM is pleased to play an important role in the development of what has the potential to become one of the world’s largest hydroelectric power plants,” says AECOM President and CEO John M. Dionisio. “The Grand Inga feasibility study will be an important first step in the overall vision of developing a continent-wide power grid for Africa.”

The four associated interconnection transmission lines, which connect the plant to Nigeria, Egypt and South Africa (one through Zambia and one through Angola), will total more than 8000 miles.

In a separate development, more hydropower capacity is planned. Congo, Rwanda and Burundi will meet with potential investors next month to finance the construction of a US$500m power plant, said Gedeon Nizeye, director of geology at Burundi’s Ministry of Energy and Mines.

The three neighbouring countries will be equal partners in the construction of the 147MW Ruzizi 111 hydropower project along their common border with equal shares in the spoils. According to the director, work may start in 2013 with completion expected two years later.

“We have been united by the common problem of power shortage,” Nizeye said. Burundi has a current power demand of 300MW but only generates 65MW and has identified 10 sites for hydropower projects. If developed, the energy surplus created would help planned development in the nickel industry.

Meanwhile, Rwanda aims to increase its generating capacity by as much as 1000MW by 2017, according to Yussuf Uwamahoro of the Energy Ministry. It is seeking investors to generate power from not only hydropower but also from methane gas and peat. “Rwanda urgently needs power,” he said. “There are opportunities for investors.” The country plans to expand its national grid to cover half of its 10m people by 2017, a considerably leap from the present 110,000 connected. Its current generating capacity of 60MW could be supplemented by 295MW from hydropower, 300MW from methane gas found in Lake Kivu, 310MW from geothermal power and 100MW from peat, said Uwamahoro.

http://www.ifandp.com/article/009473.html

Surestream Plans Seismic Surveys in Search for Oil in Burundi

By Fred Ojambo – Feb 3, 2011 Surestream Petroleum Ltd., the closely held U.K.-based explorer searching for oil in Burundi, will begin seismic surveys of its two oil blocks in the East African country in June, a company official said.

Surestream has been exploring for oil for the past two years and is “almost” ready to start identifying locations for drilling, Ildephonse Rurimirije, director general of the company’s Burundian unit, said in an interview at a conference today in Kampala, capital of neighboring Uganda.

The company owns Block D in southern Burundi and Block B in the central region, each covering 700 square kilometers (270 square miles), he said.

Surestream’s other operations in Africa are in Mozambique, Malawi and the Democratic Republic of Congo, Rurimirije said.

Burundi’s remaining two oil blocks will be awarded “soon” after the Cabinet has completed analysis of bids, Damien Riragonya, an official in the Energy Ministry, said in a separate interview today. He didn’t identify the bidders.

To contact the reporter on this story: Fred Ojambo in Kampala via Johannesburg at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net.

RWANDA

Rwandan journalists on Umurabyo newspaper sent to jail

4 February 2011 /http://www.bbc.co.uk/news/world-africa-12370738

The women have been in custody since their arrest in July, a month before the presidential election

Two Rwandan journalists with the Umurabyo newspaper have been sentenced to long jail terms after being found guilty of stirring up ethnic divisions.

Editor Agnes Nkusi was sentenced to 17 years, while reporter Saidath Mukakibibi was imprisoned for seven.

Among several articles, the judge referred to one saying some Rwandans were unhappy with the country’s rulers.

Prosecutors said this was “meant to stir [up] hatred and fury against the government”.

President Paul Kagame came to power in 1994, ending the genocide in which some 800,000 ethnic Tutsis and moderate Hutus were slaughtered.

He has recently been accused of intolerance and harassing anyone who criticises him.

His government defends its tough media laws, pointing to the role of “hate media” ahead of the genocide.

The newspaper was suspended for six months last year, just ahead of elections which saw Mr Kagame re-elected by a landslide.

Nkusi was found guilty of disrupting state freedom, propagating ethnic division, genocide revisionism and libel.

Mukakibibi was convicted of disrupting state security.

Last month, four former top officials who have fallen out with Mr Kagame and gone into exile were sentenced in absentia to long jail terms for threatening state security and promoting ethnic divisions.

Govt to float MTN Rwanda stake this year

Friday, 4 February 2011/ http://www.telegeography.com/cu/article.php?article_id=36053&email=html

The government of Rwanda plans to list its shareholding in MTN Rwanda on the newly launched Rwanda Stock Exchange (RSE) by the end of this year, local news paper Business Times reports. The state holds a 10% stake in the telecoms operator, which is 55%-owned by South African company MTN Group, with Tristar Investments owning the remaining 35% stake. At the launch of the RSE earlier this week, Finance Minister John Rwangombwa said: ‘We are in the process of discussing with MTN South Africa; we have 10% of government shares and there is also another investor [Tristar] that wants to divest from this company, so we might have 45% shares from MTN coming on the market soon this year.’ The move forms part of the government’s broader strategy to privatise companies in to facilitate development of capital markets and increase alternative sources of long-term capital for businesses.

RDC –Congo

CHAN SOUDAN 2011-Football: Soudan-RD Congo

Les Léopards ce jeudi à Khartoum – C’est ce jeudi que la délégation de l’équipe nationale de football des locaux de la RDC, les « Léopards », quitte Kinshasa pour Khartoum, au Soudan, où se déroulera le tour final du 2ème Championnat d’Afrique des Nations. Acquis en mars 2009 à Abidjan au détriment du Ghana avec ses « Black Stars’, battu 2-0, en finale, la RDCongo débutera la défense de son titre, ce dimanche, face au Cameroun avec ses « Lions Indomptables ».

Elle enchaînera, le jeudi 10 février, contre la Côte d’Ivoire avec ses « Eléphants » pour terminer la phase de poules contre le Mali avec ses « Aigles », le lundi 14.

Ci-dessous, la liste des 23 fauves congolais retenus pour la campagne soudanaise :

Gardiens : Robert Kidiaba Muteba (TP Mazembe), Matampi Vumi Ley (DC Motema Pembe), Monga Ndala (Saint Eloi Lupopo) ; Défenseurs : Eric Nkulukuta Miala (TP Mazembe), Issama Mpeko ( AS V.Club), Patou Ebunga Simbi (AS V.Club), Jean Kasusula Kilitsho (TP Mazembe), Joël Kimwaki Mpela (TP Mazembe), Tshiani Mukinayi (TP Mazembe), Gladys Bokese (DC Motema Pembe), Thierry Kasereka (AS V.Club); Milieux : Pamphile Mihayo Kazembe (TP Mazembe), Walby Niemba Nkanu (AS V.Club), Bedi Mbenza (TP Mazembe), Tusilu Bazola (DC Motema Pembe), Kasongo Ngandu (TP Mazembe), Nkanu Mbiyavanga (DC Motema Pembe), Ngudikama Emmanuel (AS V.Club); Attaquants : Alain Kaluyitukadioko (TP Mazembe), Patou Kabangu Mulota (TP Mazembe), Trésor Mbangi Ndaya (AS V.Club), Trésor Salakiaku Matondo (DC Motema Pembe) et Déo Kanda-a-Mukok (TP Mazembe). / Le Phare/03/02/2011

RDC: un civil tué à l’aéroport de Lubumbashi, sous contrôle de l’armée

(AFP) – 4/2/2011 KINSHASA — Un agent de sécurité civil a été tué vendredi matin à l’aéroport de Lubumbashi dans le sud-est de la RD Congo, où des assaillants ont été repoussés par les forces armées congolaises après des échanges de tirs.

Le corps sans vie d’un agent de sécurité d’une compagnie minière privée a été retrouvé non loin du bâtiment principal de l’aéroport, où des éclats de vitres brisées jonchaient le sol, a-t-on constaté.

Un officier des Forces armées de la RDC (FARDC) a été blessé au cours des combats, d’après des sources militaires.

Un impressionnant détachement d’environ 500 soldats des FARDC était déployé autour du périmètre aéroportuaire, a rapporté un correspondant de l’AFP, qui a vu des passagers des premiers vols commerciaux intérieurs faire leur enregistrement.

Selon des témoins les assaillants ont baissé un drapeau de la Mission des Nations unies en RDC (Monusco), dont une base se trouve à l’aéroport et hissé le leur, de couleur rouge, en lieu et place. Ce drapeau n’était plus visible après les affrontements.

Très tôt vendredi matin, un groupe armé non identifié a tenté de prendre le contrôle de l’aéroport de Lubumbashi, chef-lieu de la province minière du Katanga.

Des sources aéroportuaires ont attribué l’attaque à un “groupe sécessionniste”, sans plus de précision.

L’aéroport de Lubumbashi est situé à une dizaine de kilomètres du centre-ville, où la situation semblait normale en fin de matinée, selon une habitante.

“Tout est calme dans la ville, mais les écoliers ont été renvoyés chez eux”, a affirmé cette source sous couvert d’anonymat. Des banques ont également fermé leurs guichets, selon cette source.

RD Congo: Le déraillement d’un train fait au moins 13 morts

Pana 03/02/2011 Kinshasa, RD Congo – Un train de marchandise a déraillé mercredi dans le centre-ouest de la République démocratique du Congo (RDC), faisant au moins 13 morts, dont cinq enfants, a-t-on appris à Kinshasa de sources concordantes. Selon des témoins, certaines autorités de la région se sont rendus sur les lieux du drame, tandis que la Police a ouvert une enquête pour déterminer les causes de l’accident.

Les catastrophes ferroviaires sont fréquentes en RDC à cause, entre autre, de la vétusté des voies ferrées et des locomotives.

En juillet 2009, un train desservant la même ligne avait déraillé, faisant six morts et une dizaine de blessés.

Un accident similaire s’était produit dans la même contrée en juillet 2007, faisant près de 90 morts.

La Société nationale de chemins de fer du Congo (SNCC), qui compte quelque 12.000 agents, exploite 3.641 km de voies ferrées à travers le pays.

DR Congo growth seen slightly higher in 2011-budget

Fri Feb 4, 2011 KINSHASA (Reuters) – Democratic Republic of Congo will see its economy grow 6.8 percent this year, the government said in its 2011 budget unveiled on Friday.

That is a small rise on the roughly six percent growth seen for 2010.

The 2011 budget also put annualised inflation at an average 9.9 percent through this year, broadly the same as the 9.6 percent year-on-year rate reached in December of last year.

UGANDA

Uganda election war of words stokes violence fears

04/2/2011 – By Barry Malone / KAMPALA (Reuters) – A war of words between Uganda’s main presidential candidates escalated on Friday, sparking fears of Egypt-style street violence should the opposition say the poll was rigged.

Uganda’s main opposition leader, Kizza Besigye, repeated a warning he made to Reuters last week that Ugandans may overthrow long-standing President Yoweri Museveni with mass public protests if a February 18 poll is not fair.

The once close ally of Museveni elaborated on Friday, saying he would appeal to the public and not to the Supreme Court if he suspected foul play.

“The struggle for change is not mine alone. It belongs to all our supporters across the country,” Besigye told a news conference in the capital Kampala.

“If our victory is stolen, it is to the court of public opinion that I will appeal.”

Besigye told journalists Uganda had become a “ruthless dictatorship.”

Government spokespeople were unavailable to comment.

The 2001 and 2006 polls were judged flawed by the Supreme Court but it upheld Museveni’s win, saying that irregularities were not substantial enough to affect the overall result.

Museveni threatened twice in the last month to have Besigye arrested for alleging he had sold Lake Victoria to foreigners. Besigye was arrested during the last elections on charges of rape and treason.

“Besigye may find himself in prison over peddling lies. Election laws don’t allow this,” Museveni said. “Even if he wins an election based on such lies, the results can be cancelled especially if there is evidence to this effect presented to court.”

POPULAR PROTEST

Museveni is respected internationally for his shepherding of the economy, for stabilising a once chaotic country and for intervening in regional hotspots such as Somalia. Critics say he marries that with domestic repression.

Besigye said the situation in Uganda could not be compared directly to Tunisia or Egypt but that conditions were similarly ripe for public protest.

“But if the question is whether I would support a popular protest against an illegitimate decision of an election? Certainly,” he said.

Both Besigye and Museveni on Friday met with the United States’ top diplomat for Africa, Johnny Carson.

U.S. diplomatic cables, published in December by WikiLeaks, said the opposition were “fractured and politically immature” and that it was “by no means clear (they) would improve governance in Uganda in any way”.

Besigye dismissed U.S. opinion of one of its key allies in East Africa. Museveni’s troops make up the bulk of an African Union peacekeeping force that is the only thing protecting Somalia’s besieged government from falling to Islamist rebels.

“It’s their perfect right to form whatever opinion they form, whether it’s uncomplimentary to me or to our leadership,” Besigye said.

“But I am keenly aware the U.S. has made very many grave mistakes in their judgments, so I exercise my right to choose how I esteem their judgment.”

Kenya Petroleum Willing to Refine Uganda’s Oil, Reuters Says

By Mkhululi Mancotywa – Feb 4, 2011 – Kenya Petroleum Refineries Ltd. is willing to refine Uganda’s oil if the problem of supplying the crude to its coastal plant can be resolved, Reuters said, citing chief executive officer Bimal Mukherjee.

Uganda has no refinery, though it plans to build one to process the country’s estimated 2 billion barrels of newly discovered hydrocarbons, the news agency reported.

The Mombasa-based refinery, which serves Kenya and neighboring Uganda, Burundi and Rwanda, currently processes 1.6 million metric tons a year, or about 32,000 barrels per day, Reuters said.

To contact the reporter on this story: Mkhululi Mancotywa in Johannesburg at mmancotywa1@bloomberg.net.

To contact the editors responsible for this story: Amanda Jordan in London at ajordan11@bloomberg.net.

Uganda’s Sugar Output By Biggest Suppliers May Rise 20% in 2011

By Fred Ojambo /Feb. 4 (Bloomberg) — Sugar production at Uganda’s three biggest plants may rise 20 percent this year after expansions, the Uganda Sugar Cane Technologists Association said.

Output may climb to 350,000 metric tons from 292,052 tons last year, the association said in an e-mailed statement today. Production will be sufficient to meet domestic demand and provide a “significant” amount of exports, it said.

Supply at Kakira Sugar Works Ltd., the biggest producer and owned by Madhvani Group, will rise 9.2 percent to 165,000 tons, the agency said. Sugar Corp. of Uganda Ltd., the smallest, will produce 7.1 percent more at 54,000 tons and Kinyara Sugar Works Ltd. may produce 39 percent more at 126,000 tons. Kinyara is 51 percent-owned by Rai Group, a Kenyan and Mauritius-based agro- forest company.

Uganda imported 45,988 tons and exported 7,919 tons of sugar in 2009, according to the agency.

–Editors: Claudia Carpenter, John Deane

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.

LRA in call for free, fair Uganda vote

By Nation ReporterPosted Friday, February 4 2011 – With barely two weeks to Election Day in Uganda, calls for free and fair elections and a national democratic settlement have been made by a rebel group.

The Lord’s Resistance Army/Movement says there are indications that Uganda will go to the polls in “very constrained and difficult circumstances”.

LRA/M, whose leader Joseph Kony is wanted for war crimes and crimes against humanity by the International Criminal Court, is an armed rebellion based in northern Uganda.

Army state

In a statement sent to newsrooms on Friday, LRA/M acting peace team leader Justine Labeja Nyeko, said the movement fully supports the unending struggle for favourable election conditions in the country.

“Despite the ritual of elections, the army state in Uganda has not won political legitimacy,” Mr Nyeko said.

He also asked President Museveni to commit himself to a peace settlement with the LRA/M and other rebel groups to put an end to the disquiet in Uganda.

http://www.nation.co.ke/News/africa/LRA%20in%20call%20for%20free%20fair%20Uganda%20vote%20/-/1066/1101776/-/87gx2t/-/

Ugandan Coffee Shipments Slide 18% as Stocks Decline

By Fred Ojambo – Feb 4, 2011 Coffee exports from Uganda, Africa’s largest producer of the robusta variety of the crop, fell 18 percent in January, according to the Uganda Coffee Development Authority.

Shipments dropped to 215,180 60-kilogram (132-pound) bags from 263,014 bags a year earlier, the agency said in a draft report today. Exports were 9.5 percent lower than December and 10.3 percent below an earlier forecast, the organisation said.

Low stocks resulted from a smaller-than-expected crop as well as damage to plants, especially the robusta variety, from insects, the authority said.

Exports during the 2010-11 season, which runs through September, may rise 16 percent to 3.1 million bags because of better weather conditions, the agency said on Sept. 20.

Output in Uganda slumped from more than 4 million bags in 1996-97 after coffee wilt disease destroyed the crop, according to the authority. New planting and improving farm management may help the country boost production to 4.5 million bags by 2015, the authority has said.

Uganda is Africa’s second-largest coffee producer, after Ethiopia. Robusta accounts for about 85 percent of the East African country’s annual output.

To contact the reporter on this story: Fred Ojambo in Kampala via Johannesburg at pmrichardson@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

TANZANIA:

Aminex to raise stake in Tanzania gas block

Fri Feb 4, 2011 — DAR ES SALAAM (Reuters) – Irish oil and gas explorer Aminex Plc said on Friday it would increase its stake in a natural gas-bearing exploration block in Tanzania through an agreement with Australia’s Key Petroleum.

Aminex said it would raise its stake to 65 percent from 50 percent in the Nyuni Production Sharing Agreement. The agreement covers the Kiliwani North field, which is estimated to hold 45 billion cubic feet of gas.

Aminex said it would fund a 20 percent share in the initial cost of the forthcoming Nyuni-2 exploration well in return for a 15 percent interest. Aminex, through its local subsidiary Ndovu Resources, is also Nyuni’s operator.

“Nyuni-2 is due to be spudded in April, and a rig contract is in the final stages of negotiations,” Aminex said in a statement.

The Key Petroleum share will fall to 5 percent under the terms of the farm-out, which is subject to Tanzanian government approval.

Other firms with shareholding in the Nyuni block are United Arab Emirates’ Ras Al Khaimah Gas Company (RAK Gas) with 25 percent and Australian Bounty Oil with 5 percent.

Besides Kiliwani North, other natural gas discoveries include Mnazi Bay in Mtwara in southeast Tanzania, Songo Songo off its eastern coast and Mkuranga near the commercial capital of Dar es Salaam.

Tanzania is already using the gas from Songo Songo to generate electricity and to power industries in Dar es Salaam.

Earlier on Friday, a senior official at state-run Tanzania Petroleum Development Corporation said the country would launch its fourth deep offshore bidding round in April.

Tanzania: Districts to Benefit From 1.9 Billion /- Water Wells Project

Deogratias Mushi 3 February 2011 / WEDNESDAY February 2, was not an ordinary day to the Minister for Water Professor Mark Mwandosya, because he ended up getting unexpected aid.

Soon after entering his office located at Ubungo area in the city, he picked a copy of Daily News, where he noticed something that caught his attention on page five. This was an advertorial that carried a headline titled ‘Declaration of Water wells’.

Sponsored by a prominent Dar es Salaam businessman Mr Mustapha Sabodo, the announcement illustrated that about 600 water wells would be constructed in all the districts of Tanzania, except Dar es Salaam districts. Money set aside for the project is 1.8bn/-.

Reading it between the lines, Professor Mwandosya found out that Sabodo had earned some funds outside the country that have been channelled into his bank account in Dar es Salaam.

“This is a good support to our endeavour to supply our people with water” said Professor Mwandosya, who is also Rungwe East Member of Parliament. The same morning the minister changed his busy schedule and decided to pay Mr Sabodo a courtesy call at his Upanga residence in the city, where some members of the fourth estate had also been invited to cover the event.

Mr Sabodo was so impressed by the minister’s visit, that he told the minister that he was going to support the construction of 100 wells just in Mbeya region, apart from his earlier promise of 600 countrywide.

To a politician like Professor Mwandosya, the assistance was “the shot in the arm”, because many people upcountry face water shortage. “I did not know the words ‘thank you’ could have created such a impact, because people in Mbeya will benefit from these 100 wells that Mr Sabodo has promised to construct in my region of origin,” said the minister.

The ministry of water has promised some technical assistance to Mr Sabodo’s committee that will supervise the construction of the wells, including water engineers needed to identify areas that have underground water reserves.

Sabodo himself is chairing the committee, assisted by John Msuya, son of former Prime Minister Cleopa David Msuya. Other members include M.H. Jaffer who is Executive Director, Kazzim Kermali and M.M Jaffer who are members to the committee.

Mr Sabodo’s assistance has come at a time when the government is struggling to supply water to its citizens, both in rural and urban areas. It is estimated that the Tanzania watershed generates about 89 cubic kilometres of renewable water resources annually, about 40 cubic kilometres of which is groundwater.

In total, this translates to an annual per capita amount of water of about 2,150 cubic metres of water by 2010 for an estimated population of 40 million people. Due to population growth, increase in water demand to meet requirements for various socio-economic activities, pollution and climate change this amount is going to decrease to about 1,500 cubic metres per capita per annum by 2025.

Tanzania would then be in a water stress situation. The process of drilling and water supply to the society was dominated by the government till 1997. It was since then the government decided to cooperate with the private sector. Individuals were now allowed to drill on their own cost and several companies were established purposely for drilling and water supply. Water can be gathered, or as some would say ‘harvested’, from below by digging or drilling boreholes to pump it up.

When speaking at a seminar in Dar es Salaam last year, Deputy Permanent Secretary in the Ministry of Water Engineer Mbogo Futakamba said groundwater was an important resource that has not been given the attention that it deserves in the social economic development. He said main reason was the traditional perception attached to surface water and the ease with which surface water can be developed and used.

“Groundwater contributes to human health and socio – economic development through low-cost, drought- secure and high quality for both rural, urban and irrigation water supplies,” he said.

The use of groundwater has been growing rapidly over recent decades as a result of advances in scientific and technical knowledge in exploration and water well drilling techniques. However, says Engineer Futakamba, the governance of groundwater has not kept pace with this growth in use. Groundwater has not featured prominently in water policy at local, national, regional on global level.

Heavy bias has been on surface water issues. Important opportunities are being lost for utilizing groundwater resources sustainably or strategically when the resource is not managed according to principles of integrated water resources management. This is an approach that includes conjunctive management with surface water, protection of recharge areas, and measures to prevent pollution of groundwater systems.

If not properly managed, groundwater resources represent an inefficient response to integrated water resources management, a major long-term threat to economic growth and stability, livelihoods, health, and environmental sustainability in many parts of the world, and a lost opportunity for strategic adaptation to climate change. For groundwater to make an impact in the water sector there is need for a global initiative.

According to engineer Futakamba, there are now 101 registered private water well drilling companies in Tanzania with permit to engage in groundwater drilling business in Tanzania Mainland.

Groundwater management is still in its infancy but great strides are being undertaken to put in place a robust monitoring network within the existing legal and institutional framework. Only about 12 % of the available groundwater resources potential in the country is being used, says Engineer Futakamba.

Major uses are domestic water supply, irrigation, industrial and mining and others such as livestock and dry land fishing. It is obvious that more effort is required to full development of groundwater for various uses.

Currently, besides domestic water supply, more prominence is being observed in sugarcane and horticulture irrigation especially in Kilimanjaro and Arusha . In addition, groundwater irrigation is emerging even in paddy and other cereal agriculture to the south of the country in Iringa region.

For domestic water supply, the towns of Dodoma, Singida, Babati, Arusha and Mtwara are to a large extent dependant on groundwater resources. Even some parts of Dar es Salaam City whose major supply is from surface water, Ruvu River, are supplied from groundwater sources. New groundwater sources are being developed at Kimbiji and Mpera to augment Dar es Salaam City water supply. In the rural areas, groundwater is the major source of water supply especially in the arid regions.

Engineer Futakamba says that major challenges facing groundwater in Tanzania include lack of knowledge on the available groundwater resources in the country, inadequate monitoring network, encroachment of human settlements into recharge areas and well fields. Others are pollution from human, industrial and mining wastes.

Tanzania: IBM Gives Dar College Huge Boost

Abdulwakil Saiboko 3 February 2011 / THE Dar es Salaam Institute of Technology (DIT) has received Information and Communication Technology (ICT) books worth over 273m/- from the International Business Machines (IBM).

The DIT Principal, Prof John Kondoro said in Dar es Salaam on Thursday that the support has come at a right time when the institute is now broadening its scope on ICT training.

The contribution comes hardly a week after the Vice President, Dr Mohammed Gharib Bilal was told at the institute’s fourth graduation ceremony last weekend that there was an acute shortage of teaching facilities including ICT books.

Prof Kondoro noted further that as the institute recently established an ICT centre of excellence, the contribution was vital in ensuring efficiency and effectiveness in teaching.

On his part, IBM Business Manager, Mr Daud Sawe noted that the contribution marks a start of a long term relationship and collaboration between the company and the institute.

The company also donated books to the Dar es Salaam and Dodoma universities recently.

Meanwhile, higher learning institutes and schools have been urged to report shortage of teaching equipment to the Tanzania Education Authority (TEA) for assistance.

This was said by TEA Director General, Ms Rosemary Lulabuka in Dar es Salaam on Thursday shortly after receiving a 12m/- contribution from Swissport Tanzania.

“Through our education fund, we have been assisting laboratory equipment to schools. However, in most cases, we have to look for them instead of being vice versa.

At times, we have to learn about the shortage through the media”, she said. Speaking earlier, Swissport Chief Executive Officer, Mr Gaudence Temu noted that they were impressed with the way the fund has been supporting schools in the country.

“This is part of our corporate social responsibility and the understanding of the challenges facing TEA in solving problems facing schools and other education institutes,” he said.

Tanzania Daily News (Dar es Salaam)

KENYA :

Kenya’s Mombasa Port Delays May Push Up Prices, Daily Reports

By Consolatah Lucas – Feb 4, 2011 Feb. 4 (Bloomberg) — Shipping companies operating in Kenya are threatening to raise charges on goods imported through the Mombasa port to compensate for delays in processing their cargos, the Business Daily reported.

The Kenya Shippers Council, an umbrella body for large- scale importers, said delays at the port are costing the shipping companies $400 to $600 per day for every 20-foot container, according to the Nairobi-based newspaper.

To contact the reporter on this story: Consolatah Lucas in Mombasa via the Johannesburg bureau at pmrichardson@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net.

AFRICA / AU :

Africa: Black (or White?) History Month

Chika Enzeanya 3 February 2011

http://allafrica.com/stories/201102040794.html

Black History Month ‘allows Africans to tell their “his-story” starting only from the period when they set foot on the enslaver’s soil and became subjected to his “civilising” efforts’, argues Chika Ezeanya.

February is widely celebrated as Black History Month in the United States. As with most things American, the celebration transcends the domestic shores of its country of origin to gain widespread recognition and media coverage in other Western and non-Western hemispherical nations. Although termed Black History Month, the celebration in conceptual clarity always focuses on the achievements of the erstwhile enslaved people of black Africa in the United States.

Dr Carter G. Woodson, the son of former slaves who went on to earn a doctorate degree from Harvard University, laid the foundation for the marking of Black History Month. After he noticed the absence of any form of history of black people in teaching and in academic discourse, Dr Carter made a case in 1926 for a Negro History Week, which later became the Black History Month.

The caption, Black History Month, is likely to confuse the historian out in search of authentic African history dating back millennia. However, it is commonly accepted in the United States that to utter the word ‘Black’ means strictly speaking, African-Americans. In essence, Black History Month celebrations are concerned with the exposition of the achievements of African-American former slaves within the ambit of their former colonial masters.

Outside the coast of the United States this interpretation and celebration of Black History can therefore be adjudged a misnomer. This is because Black to most people around the world means African, and African history means the story of the people who lived in the continent in times past.

It is disconcerting and somewhat disturbing that the history of ‘Blackness’ in the world’s intellectual and media capital, the United States is associated with white domination, oppression, repression and slavery. It is a history, dictated by the West, one that late Professor Hugh Trevor-Roper of Oxford University would validate with his statement in 1965 that there is no African history, but only the history of Europeans in Africa, ‘the rest is darkness… and darkness is not a subject for history.’

The celebration of Black History Month without laying the major emphasis on pre-slavery, pre-colonial Africa, and on the myriad achievements of continental Africans/Blacks of that era indicates that most Black scholars and historians are still submerged in the Western historical point of view of history. His-story: The story of the white Caucasian male as told by him or from his point of view. His-story of enslavement of the Africans and dragging them to his territory.

His-story of granting them freedom after only a certain number of years as slaves. His-story of the achievements he has so magnanimously allowed their most illustrious sons and daughters to accomplish, despite their lowly past. His-story of how the former slave has leveraged on the white man’s education to become the first ‘African-American’ to ride a car, a plane or train. In all, Black History Month allows Africans to tell their ‘his-story’ starting only from the period when they set foot on the enslaver’s soil and became subjected to his ‘civilising’ efforts.

Slavery was calculated to capture the memory of the enslaved, such that even after freedom has been granted, he is already inherently configured to think like a slave. The physical un-cuffing of chains did not in any way free the mind from the years of calculated and intense mental subjugation. Ng?g? wa Thiong’o, alluding to colonialism, captures this so succinctly, when he writes: ‘but cultural subjugation is more dangerous, because it is more subtle and its effects, long lasting.

Moreover, it can make a person who has lost his land, who feels the pangs of hunger, who carries flagellated flesh, to look at those experiences differently… he or she has been drained of historical memory of a different world.’ Rather than advancing the study of authentic Africa, Black History Month at the moment is bound by the myopia of African interaction with the West. Paulo Freire would argue that this form of history ‘is well suited to the purposes of the oppressors, whose tranquility rests on how well men fit the world the oppressors have created, and how little they question it.’

The same his-story is taught in African schools. Pupils in the Democratic Republic of Congo (DRC) are taught that Henry Morton Stanley was the first European to navigate the river’s length. Little is taught to the students about the powerful kingdom of the Kongo people, who lived, traded and travelled by the river for thousands of years before Henry Morton Stanley. DRC pupils know more about Belgium and King Leopold than the Manikongo and BaKongo. Such examples thrive all across formerly colonised black Africa.

Much more than fighting for the independence of India from the British, Mahatma Gandhi insisted on the mental decolonisation of the Indian. In his seminal work, ‘Towards New Education’, Gandhi asserts that ‘the curriculum and pedagogic ideas which form the fabric of modern education (in India) were imported from Oxford and Cambridge, Edinburgh and London.

But they are essentially foreign, and till they are repudiated, there never can be national education.’ Education to be considered sound must be able to ensure continuity from one generation to another. No generation should, due to education, loose touch of the investments, knowledge bank and core values of its predecessors.

For Africa, decolonisation of the curriculum – with an emphasis on history – must be embarked upon. People of African descent, resident and in the diaspora must seek to know their age-old authentic history through conscientious research, archaeological excavations, cultural and linguistic analysis and a deconstruction of the his-story bequeathed by the racially motivated scholarship of the Victorian era.

As a matter of urgency, Black History Month, while duly acknowledging the innumerable contributions of people of African descent in the United States, must liberate itself from the territorial narrowness in which it is presently embedded. African history and contributions to ‘global civilisation’ – dating back as far as ancient Egypt – must be studied and disseminated to the rest of humanity.

Dreams, desires and innate expectations of men are founded on the memories they hold. The despicable political and economic situation of the black race – regardless of their place of abode – is founded on a lack of aspiration due to absence of positive consciousness. Ngà ©gÄ© wa Thiong’o sums it up so brilliantly; ‘Black consciousness then becomes the right of black peoples to draw an image of themselves that negates and transcends the image of themselves that was drawn by those who would weaken them in their fight for and assertion of their humanity… It seeks to draw the image of a possible world, different and transcending the one drawn by the West by reconnecting itself to a different historical memory and dreams…’

For progress of any measure to be recorded among people of African descent within and outside the continent, they must begin to research, disseminate and identify with the past of Africa. Africa’s past is not darkness, it is only dark to those who do not see it.

Creativity and innovation are products of a positive self-image, an attribute that the black man is inherently lacking. Positive self-image is an offshoot of knowledge. For Africans, knowledge of the positive, independent and unencumbered contributions of one’s forefathers to humanity, would definitely unleash the latent creative energies of the living protégés.

Chika Ezeanya is a PhD candidate in the Department of African Studies at Howard University in Washington DC. Her debut manuscript was shortlisted for the 2010 Penguin Publishers Prize for African Writing.

UN /ONU :

UN chief says new Myanmar government must open up

From: AFP February 05, 2011 – UN leader Ban Ki-moon called Friday on the Myanmar junta to use the naming of a new government to open up to opposition parties, his spokesman said.

The junta named a retired general, Thein Sein, as president on Friday after a new national assembly, dominated by allies of the ruling generals, sat for the first time this week.

Ban has “taken note” of the announcement of the election of the new president and vice presidents, said spokesman, Farhan Haq, in a statement.

“The secretary general hopes that this announcement marks the beginning of a change in the status quo. It represents an important opportunity for Myanmar.

“He hopes that it leads to the formation of a more inclusive civilian government that is broadly representative of all parties relevant to national reconciliation and more responsive to the aspirations of the people of Myanmar.”

Myanmar held elections in November which were widely criticized by Western nations and the opposition as a sham.

Thein Sein, a key ally of junta strongman Than Shwe, became a civilian to contest the election as head of the junta-backed Union Solidarity and Development Party (USDP), which claimed an overwhelming majority in the poll.

UN Evacuates Staff From Egypt

Nathan Morley | Nicosia February 03, 2011 / As the security situation in Egypt worsens, the United Nations has begun to withdraw its staff from Egypt, with around 600 personnel and their families being evacuated to Cyprus.

Those being evacuated represent U.N. agencies, including the World Health Organization, the U.N. Educational, Scientific and Cultural Organization, and the U.N. High Commissioner for Refugees.

Spokesman Rolando Gomez sai staff and their families had been given the option to fly either to Cyprus or Dubai.

“The U.N. in Cyprus has made arrangements to receive a number of U.N. staff and their family members who are based in Egypt, who will be temporarily relocated to Cyprus,” he said. “We have made preparations for up to four U.N. chartered flights to land at the Larnaca airport.

The first flight to Larnaca from Cairo arrived mid-afternoon Thursday, despite some calls from within Egypt for the United Nations to keep its presence there. However, the increasingly volatile situation led U.N. decision-makers to call for a pullout of “less essential” personnel.

A number of U.N. staff members are remaining behind in Egypt to carry out essential tasks, so this isn’t a full evacuation – it is a relocation of a number of staff who will be received by the UNFICYP (United Nations Force in Cyprus) members at the airport.

In a separate development, the United States says more than 1,900 Americans have been evacuated since Monday, with additional flights planned.

For those that had spent days of uncertainty at Cairo airport, the relief at finally touching down at so-called “safe haven” airports such as Cyprus is evident – and everyone has a different story to tell.

Reports suggest that around 5,200 passengers of various nationalities were at Cairo airport on Thursday, waiting for commercial or government-chartered flights.

An estimated 50,000 Americans live and work in Egypt, many of whom have been calling their embassy requesting assistance to leave.

The unrest is also harming the lucrative tourism industry, which attracts more than 10 million visitors a year and up to $11 billion in revenues.

USA :

T-Mobile USA & Clearwire May Be Close to a Deal

By Ron Haruni Feb 4, 2011 http://wallstreetpit.com/60503-t-mobile-usa-clearwire-may-be-close-to-a-deal

Clearwire Corp. (CLWR) pops to session highs on strong volume. Strength being attributed to a Bloomberg article that states Deutsche Telekom AG’s T-Mobile USA unit may be close to a deal to buy wireless spectrum from Clearwire Corporation. According to Bberg, T-Mobile USA, the fourth-largest mobile-phone operator in the U.S, is the only potential bidder and the sale of the spectrum could happen by the end of the first quarter.

T-Mobile said it may fund the spectrum purchase with proceeds from the sale of its U.S. telecommunications towers, valued at $2 billion by analysts.

Shares of CLWR are currently up 7.77% at $5.69. Volume of 3.6 million shares is already approaching the daily average volume of 4.4 million shares.

Clearwire Corporation, through its subsidiaries, builds and operates mobile broadband networks that provide high-speed residential and mobile Internet access services in the U.S. The co. is headquartered in Kirkland, Washington and operates as a subsidiary of Sprint HoldCo, LLC.

CANADA :

Reliable Canada oil supply may dominate Obama’s meetings with Harper

February 4, 2011

http://blogs.marketwatch.com/canada/2011/02/04/reliable-canada-oil-supply-may-dominate-obama-meeting-with-harper/

When Canadian Prime Minister Stephen Harper meets President Obama at the White House Friday, energy — especially the Alberta oilsands — will be high on the agenda. Along with Egypt, of course.

The two subjects are closely related: Given the ongoing political upheaval in Egypt and the Middle East this past month, establishing Canada as a far more secure source of American oil has taken on added importance. But there’s a catch.

“The elephant in the Oval Office,” says Canadian press service Canada.com, “could be the ‘dirty energy’ from the Alberta oilsands that has — to the dismay of Canadian industry and government — become a subject of unrelenting, high-profile debate in Congress and throughout the Obama administration in recent weeks.” Both leaders promised a clean-energy agenda in their first meeting, in Ottawa, two years ago.

A major pipeline from Alberta to the U.S. Gulf Coast, TransCanada’s Keystone XL pipeline, is awaiting approval — after environmental review — from the U.S. State Department.

Most Americans have no idea that Canada is now the U.S.’ main supplier of energy, says a former U.S. Ambassador to Ottawa, David Wilkins.

In a letter to the Washington Post this week, South Carolina energy attorney Wilkins, George W. Bush’s Canada envoy, says:

“Most Americans are shocked to learn that Canada — and not the Middle East — is our country’s top foreign supplier of oil, natural gas and uranium,” he said in the letter, also included in his weekly dispatch, Carolina-Canada Connections.

Wilkins, who was Bush’s South Carolina campaign manager — and had only visited Canada once before he was appointed to the Ottawa post — said Canada is a perfect example of why the United States should aggressively pursue free-trade agreements “and reject the policies of protectionism that have been economically devastating to the United States.”

One report also says that Harper will use the Mideast crisis to push for a guarantee there won’t be a border tax on Canada’s oil sands.

Which direction will Alberta’s oil go?

Political arguments aside, all that Alberta oil is going to go somewhere, and Chinese officials want the tarsands oil to head west, toward proposed oil-shipping ports to be located in British Columbia.

“I would strongly hope oilsands and the pipeline are on the agenda” for the Obama-Harper meeting, Cindy Schild, refining issues manager for the American Petroleum Institute, said in an interview with the Canadian press service.

“That oil is going to go somewhere, and it just seems to make the most sense to keep it in North America.”

Environmental concerns are the big reason the pipeline to Texas across several U.S. states is being held up — as well as the one towards B.C. The oil industry is responding with environment clean-up programs:

Canadian Business Magazine is reporting that a recent agreement was reached by the seven oilsands mining companies to share technology for cleaning up tailings ponds It added that “the pact makes it likely that the 170 square kilometers of Alberta currently covered by toxic wastewater will shrink in the coming decades.”

Suncor Energy recently unveiled the first reclaimed tailings pond in Alberta’s bitumen belt, Canadian Business says, “transforming it into a firm meadowland” using a process called Tailings Reduction Operations (TRO).

You’ll be hearing this message often in the future: Besides being dictatorship-free, Canadian energy is also clean energy.

In fact, at first glance, Canadian energy-extraction company Suncor’s home page could be mistaken for that of the Sierra Club.

AUSTRALIA :

PTT to Keep Oil Licenses in Australia

FEBRUARY 4, 2011 / By ROSS KELLY / SYDNEY—PTT Exploration & Production PLC has satisfactorily responded to issues raised by Australian lawmakers following the Montara oil spill, and won’t have its oil licences revoked, Australia’s Energy Minister Martin Ferguson said Friday.

The decision will come as a relief to the Thai company, which has said that its business would be significantly affected if it had to stop operating in the country—and that it has already incurred more than $300 million in costs related to the August 2009 spill.

“The company has cooperated fully throughout the review process and demonstrated significant changes to improve its leadership, governance and operating practices,” Mr. Ferguson said in a statement.

The announcement spurred a jump in PTT E&P shares, which were up 6.6% at 179 Thai baht at the midday break, outpacing a 1.2% gain in Thailand’s SET Index.

“This is a positive step, as we can restore the Australian government’s confidence in our operating standard,” PTT Exploration’s Chief Executive Anon Sirisaengthaksin told Dow Jones Newswires. “It should also bolster our future investment prospects in Australia.”

Canberra’s decision to allow PTT Exploration to keep its license ensures that commercial operations at Montara will commence in the fourth quarter of this year as planned, he said.

The decision comes at a key time as Australia is poised to become the world’s second-biggest gas exporter after Qatar within a decade.

Following large onshore and offshore gas discoveries, companies like Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC are plowing billions of dollars into gas-export projects, triggering an employment boom in the states of Western Australia and Queensland.

Mr. Ferguson said the Thai government-owned company didn’t get off lightly, noting that it had picked up the full cost of the incident and ongoing environmental costs.

A “rigorous 18-month monitoring program” to be imposed on the company by lawmakers means that PTT “is in essence on notice,” he said.

The company in November said the incident had cost it US$320 million to date.

An independent report into the incident released last year found “widespread and systemic” shortcomings in PTT’s procedures were a direct cause of a loss of well control on the Montara platform, which also burst into flames.

Over two months, 20,000 barrels of crude were sent spewing into the Timor Sea off northeast Australia.

In response, Australia committed to a shake-up of its regulatory regime for offshore oil and gas drilling following what was one of its biggest oil spills, but stopped short of imposing onerous safety requirements on an industry that generates huge amounts of jobs and government revenue.

Consequently, many weren’t expecting the company to have its licences revoked, as long as it responded to improved operational and safety measures set out last year by lawmakers.

Indonesia is claiming billions in damages from PTT Exploration, which in December said it was still in talks with the Indonesian government to seek verifiable evidence proving any damage to its fishery and seaweed industries as a result of the incident.

“We and the Indonesian government have a better understanding now. But we’re still in the process of verifying relevant facts before we can start talking about compensation for the claimed damages,” Mr. Anon said.

PTT Exploration will soon sign an agreement with Germany’s Linde Group and SBM Offshore for the latter two firms to study a front-end engineering design for a floating liquefied-natural-gas project off northwest Australia, he said.

The study is expected to be completed by the third quarter—and if the project is determined to be feasible, PTT’s unit PTT FLNG will form a joint venture with Linde and SBM to develop the project.

PTT Exploration recently formed a joint venture with its parent PTT PCL to operate in the Australian FLNG project at the Cash & Maple field.

Ray Brindal in Canberra and Phisanu Phromchanya in Bangkok contributed to this article.

Write to Ross Kelly at ross.kelly@dowjones.com

EUROPE :

E.U. Leaders Seek Common Energy Negotiations

By JAMES KANTER / February 4, 2011 / BRUSSELS — Leaders of the European Union agreed on Friday to give unprecedented leeway to the bloc’s executive agency to take part in negotiating contracts with energy exporters like Russia in an effort to improve security of supplies and safeguard investment.

There is “a need for better coordination” among E.U. countries and for more coherence in “relations with key producer, transit and consumer countries,” the leaders said in a statement at the close of a one-day summit meeting in Brussels.

The meeting was originally dedicated entirely to energy issues and to bolstering innovation. But that focus was overshadowed by the continuing sovereign debt crisis in the euro zone and developments in Egypt.

Negotiations over energy supply and prices are now left to individual member states. But energy deals are a concern for the entire European Union, which has 27 members and imports more than half of its energy, with about 40 percent of its natural gas coming from Russia.

Dealing more effectively with Russia became a priority after a dispute between Ukraine and Russia blocked gas supplies to a number of E.U. countries during the depths of winter two years ago.

Last year, the E.U. authorities struggled to ensure that an agreement between Poland and Russia on a natural gas pipeline between Siberia and Germany that is partly owned by the Russian state-controlled company Gazprom would give other gas operators access to the Polish section of the pipeline.

There are also tensions between the European Union and Russia over an E.U.-backed pipeline called Nabucco that would start delivering gas by around 2015 from the Caspian Sea region, bypassing Russia and Ukraine.

Russia has backed a separate project called South Stream, which would take Russian natural gas under the Black Sea to Europe.

Under the agreement reached Friday, the E.U. energy commissioner, Günther Oettinger, is expected to present a formal proposal in June giving the European Commission, the E.U.’s executive arm, the power to help member states reach contracts with Russia and other governments if the deals are significant enough to affect the bloc’s energy security.

Mr. Oettinger’s mandate would also extend to other sources of energy, like electricity from renewable sources. That would give European companies investing in solar projects in countries like Morocco and Tunisia added security because the commission could impose trade sanctions on those countries if there were any attempt to confiscate facilities in the event of political instability.

Giving the commission a role in such negotiations would also allow it to make sure such agreements mandate common standards for technologies of the future, so that electricity from solar farms outside the bloc can easily be integrated into a European grid.

That could increase the willingness of banks and utilities to invest in a project called Desertec, which would harvest the sun’s energy using a method known as concentrating solar power, or C.S.P., from the vast North African desert and deliver it as electricity, via high-voltage transmission lines, to markets in Europe.

But Mr. Oettinger’s proposal will probably face tough scrutiny by E.U. governments that are wary of giving more power to the bloc’s central authority. The British government was already concerned about “competence creep,” said a British diplomat who spoke on the condition of anonymity, as is customary at E.U. summit meetings.

European leaders also agreed to back an earlier appeal by Mr. Oettinger to direct E.U. funds to Europe’s electricity grids and pipelines, in part to encourage private investment in the sector. The moves are part of an effort to enhance energy security and help integrate renewable sources of power into the bloc’s future energy mix.

Last year, Mr. Oettinger called on E.U. nations and industry to spend up to €1 trillion, or $1.36 trillion, over the next 10 years on energy, with around €200 billion of that dedicated to infrastructure for transmission systems.

Marlene Holzner, a spokeswoman for Mr. Oettinger, said he was likely to offer a list of infrastructure projects and suggestions to pay for them in June. Those could include E.U.-backed loan guarantees, to make it less expensive for companies to raise capital, and E.U.-backed bonds.

A version of this article appeared in print on February 5, 2011, in The International Herald Tribune.

CHINA :

US companies want share of China’s new year sales

THE ASSOCIATED PRESS February 3, 2011- A growing number of U.S. companies have discovered an antidote for post-holiday sales blues: China’s huge, gift-laden celebration of its new year.

The Year of the Rabbit starts Thursday, and with it the 15-day Spring Festival celebration. It’s China’s biggest holiday and a time to gather with relatives, feast and give gifts. Food, clothing and money are traditional presents, but more Chinese — especially the booming middle class — are choosing gifts from overseas.

Since November, U.S. companies have been loading millions of pounds of goods into containers to arrive in time for the winter shopping season. Nearly all is food or drink — including candy, fruit and liquor — marketed as premium products, often with an air of glamour.

INDIA :

BRASIL:

Brazil’s Petrobras to invest $4.5 billion in research

By Brian Ellsworth / RIO DE JANEIRO, Feb 4 (Reuters) – Brazilian state energy company Petrobras (PETR4.SA) plans to invest as much as $4.5 billion in research and development over the next five years, with a focus on advancing technologies for ultra-deepwater oil production.

The company’s research center is working with Brazilian universities to tackle technical challenges to producing oil that is buried deep below the ocean’s surface under a thick layer of salt.

“To drill through 2 kilometers (1.2 miles) of salt is not a very easy task,” said Carlos Fraga, executive manager of research and development for Petrobras. “It requires specific technology. The strategy is to have one of the most important research and development centers for oil and gas worldwide.”

Innovations from Petrobras research include the development of materials that can resist corrosion under the heavy pressure of ultra-deep waters and new methods for interpreting seismic data needed for the offshore region known as the subsalt, which Brazil hopes will turn it into a major oil exporter.

Government regulations require oil companies to invest 1 percent of gross revenues from high-productivity fields in research and development.

Petrobras expects it will invest between $800 million and $900 million per year over the next five years.

Companies including International Business Machines Corp (IBM.N), Schlumberger Ltd (SLB.N) and General Electric Co (GE.N) have announced plans to open research facilities in Brazil to develop technology for the oil and gas industry. Petrobras last year inaugurated a $700 million expansion of its Cenpes research facility.

University research facilities in Brazil are helping Petrobras understand how ocean waves and currents affect operations of floating platforms that extract oil from under the sea while anchored hundreds of kilometers from the coast.

Engineers at a research lab at the Federal University of Rio de Janeiro test model platforms in a wave pool that simulate the motion of ships under different conditions.

“Nobody knows what can happen when you have waves and current together,” said Paulo Esperanca, a naval engineer with COPPE’s ocean lab. “The best way to get close to reality is to do tests. If you’re going to spend $1 billion to develop an oil field, you have to be confident about design.”

A similar project at a research facility at the University of Sao Paulo uses massive computing capacity to create virtual models of ocean conditions.

Brazil hopes to speed up its pace of technological innovation, which lags behind emerging market rivals. Both India and China generally file a considerably greater number of international patents than Brazil. (Reporting by Brian Ellsworth; Editing by Lisa Von Ahn)

EN BREF, CE 4 février 2011… AGNEWS /DAM, NY,04/02/2011

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