You read the title right.
I am not talking about winning small contracts such as offering catering services, security services, or feeding pipeline workers in the site camp.
I will explain how to win huge jobs that have bigger rewards and will make you grow bigger. Sometimes overnight.
These include engineering construction jobs, welding and fabrication services, and the likes.
The simple truth is that winning big contracts in the oil and gas industry needs previous experiences of similar projects. Most importantly, it needs huge financial capacity. Sadly, many local service providers do not have these important requirements.
Let me ask you:
If Total E&P Company awards you a contract to provide construction services, do you have references that show experience in construction services in the pipeline project? How are you going to raise working capital when there is no mobilization money? Where will you find money to hire or purchase equipment and even pay engineers, technicians, and all employees who will help you execute the project?
If you think Tanzanian banks will borrow you money, do you know how to approach the local bank to finance your work? How long do local banks take to offer you a loan?
Remember: clients need quality services on time.
But what if I told you there’s a way you can win a major contract in this Uganda-Tanzania pipeline project? No matter how small your business is. No matter how little the experience you have in executing such project in the oil and gas sector.
What if I told you that you can win a contract in the pipeline project even if you have a limited finance?
The Best (The Easiest Way) For Local Oil and Gas Service Providers to Win Major Contracts in This Project)
To be completely transparent with you, there are strong local content policies that require these investors to give top considerations in the procurement of services and equipment to local businesses. But, Total will not hire your business if you don’t meet their qualification.
The CNOOC will never risk awarding you a contract when you don’t have any experience to be taken as references in those major contracts. Local contents work for those who meet reputable companies that meet required qualification.
And the reasons they are doing that is because, the oil and gas business is highly risky. International oil companies risk a lot to work with these small companies. So, they are eager to hire companies that meet the desired qualification.
But, for the local services providers to win major contracts in the East Africa oil pipeline, they should partner with international companies or experienced contractors that have experiences in similar projects.
Once you sign a partnership agreement, start bidding for the projects. That way, clients will be confident to award you a contract.
I am not saying this to make you feel that doing business and getting a contract in the oil and gas sector is extremely difficult.
Getting a contract in this industry is easy if you know how it works, and how oil and gas services providers raise money for their supplies and contracts.
If your goal is to become a service provider in Tanzania oil and gas sector and to reap a substantial reward in the oil and gas sector, I strongly recommend that you read the eBook How to Recognize Potential Business Opportunities in the Oil and Gas Sector in Tanzania.
You can find the rest of our eBooks here.