15+ Lucrative Oil and Gas Business Opportunities And Ideas In Tanzania And East Africa
Oil and gas is the most rewarding sector across the globe. It has created many millionaires and billionaire than almost any other sector, Anybody who run any kind of oil and gas business is perceived as has a loaded of wealth.
But while the industry is lucrative most people are unsure where to begin and what type of business they can do and get a solid return.
So if you rack your brain to finding perfect business ideas, here are 15+ oil and gas business opportunities and ideas to exploit in Tanzania and East Africa.
1.Oil and Gas Exploration and Production:
This involves searching for areas where oil and gas resources might be, extract them and sell them at a profit.
To go into this venture, you should first lease land from the host government. If you strike oil or gas, you will have profit up to 10 times for what you invested.
Tanzania Petroleum Development Corporation (TPDC) are sole owner of all gas assets in Tanzania. You should approach them and negotiate Production sharing agreement (PSA)
The well estimated to produce gas for about 20 to 60 years. Meaning that you will be receiving the passive income from the sales of natural gas for over 20 years.
That’s is a main reasons, executives and investors operate gas producing firms in Tanzania such as shell, Statoil, Swala Energy the richest guys. Because they earn billion of dollars from the natural gas sales
But if you drill dry hole means you lose the money . That’s because you spend years to search for something that you’re unsure whether you’ll find. This is high risky venture, that is why such investment are by law, available only for investors with knowledge and a lot of money.
The preferred market for natural gas in Tanzania are the factories, government agencies like Tanzania Petroleum Development Corporation (TPDC), Tanzania Electric Supply Company Limited (TANESCO). Since the proportion of natural gas produced in Tanzania used for power generation.
The high demand of energy, create huge market for gas production in Tanzania. However, is capital-intensive , requires a lot of manpower and advanced technology, and it may take years to start seeing the return on the investment.
This might be regarded as a risk business, but if you have what I call 3 E’s (Education, experience and excess capital). I gurantee you are going to make it into this venture.
Read .How To Start Your Own Oil and Gas Exploration Company In Tanzania.Practical Guide
2.Oil and Gas Maintenance and Servicing
This is the profitable niche in Tanzania oil and gas sector. In Tanzania we have gas facilities, pipelines, oil storage facilities, a lot of oil wells which require regular maintenances and servicing. These are reccuring activities in the oil and gas industry and bring a lot of money on the table. If you are business start off in Tanzania I suggest you go to this venture because are the recurring activities in the industry and keep you afloat
However, going to provide these services you must have years of physical experiences in the industry. Because this kind of investment requires expertise and technical know how.
3.Sell oil and gas equipment:
Oil and gas companies involved in searching for and drilling oil and gas need a broad range of equipment and machine.
So by supplying drilling bits, casing pipes, drilling string, pipes valves, just to mention a few.. you stand much chance of reaping a good profit
4: Fuel importation:
Importation of fuel is a lucrative business in Tanzania. However, a solid infrastructure, fuel depot and permit and licenses from Ewura are necessary.
Also, you must be a member of Petroleum Importation Coordinator, which is the company responsible for coordinating petroleum products in the country. Also, they prepare periodic petroleum tender to get the winner of the tender.
5.Oil storage Facility/ Depot
Once the oil is imported, must be kept in the oil farms or storage tanks. The simple truth most of the oil marketers do not own storage facilities now is where they store fuel products to others oil tank farm if you have large operation capital you can build your own oil storage facility and rent it to oil marketing companies.
6.Start a petrol station:
This is a worthwhile investment in Tanzania that ensures a solid return. But it’s capital intensive. The profit margin for this business is mouth-watering. A
profit is not less than Tzs 210 per liter. If you sell 5,000 liters a day, you’ll be making a profit of Tzs210×5000liters= 1,050,000. And that is the lowest profit
you can make after all expenses. But if you land a wonderful major supplier who sells products at a reasonable price you’ll
earn beyond.This is lucrative venture that is why those who import fuel and deport owner they also own petrol stations to maximize profit.
Read also.[eBook] The Complete Guide to Starting a Petrol Station in Tanzania
7.Start petroleum product transportation:
Your job is transporting diesel, petrol, kerosene to various petrol stations, factories and firms across the country.
All you need to go into this business are trucks and drivers.You get petroleum products from the depots.You supply to the retailers on demand. You cash money.
And smile to the bank. Depending on the location product will be taken and the capacity of the tanker. But at the depot today, they will pay you Tzus 100 per liter from Dar es salaam to Mtwara.
For starters with a tank of 18,000 liters, he will get Tzs 1,800,000. And after all expenses, you’ll have a net profit of Tzs 1,000,000. If you get 4 trips in a month, you’ll make a profit of Tish 1,000,000×4 = Tzsh4,000,000. For those who have capitals to buy trucks,
8.Cooking gas wholesale and retail:
It’s a good business for a smart entrepreneur like you to venture into. Why? because we’re no longer in the Stone Age where people cook with logs of wood.
Now simply people buy cooking gas to prepare meals. You may feel the market is already saturated, but you can come in and give it a go. Because the demand increases as the more people become aware that cooking gas is cheap and do not pollute households.
9.Distribution of Lubricants:
The market for this business is huge as the vehicle owners and factories are seriously interested in it. To help their equipment and operation run smoothly, engine oil, automatic transmission fluid, brake fluid, and greases are top selling products in the lubricant market. The preferred market for this business in Tanzania are mechanics and petrol stations. Once you build a strong network of petrol station owners, you will be amazed at the high volume of sales you make.
10.Kerosene retail.
If you still wondering how to make money in the oil and gas you start selling kerosene to the end users. This business has high demand because of the high population of low income earners in Tanzania.
11. Equipment Leasing:
If you have large financial muscles and network, then leasing equipment used in the oil and gas activities are the way to go. Some oil and gas projects involve many construction wokr like pipeline construction. So you lease contruction equipment such as eacacvators,
12.Petrol Station Building And Construction:
You can break into oil and gas via building petrol stations to the people who want to start petrol station business.
13.Start recruitment agency:
On receipt of job orders, and sending oil clients several candidates, oil firms pay you a percentage of individual annual salary based on your agreement. It’s a lucrative business in the petroleum sector, as you serve millions to get into oil and gas companies.
14.Oil and gas consultancy and advisory services:
Do you like to meet new people? Have good communication skills? And oil and gas training? Then you ought to consider helping people in key issue related oil and gas sector. You can offer advisory services to the people who want to break into oil and gas business. Pick an area of your expertise and start consultation business. Also, oil firms want to improve sales too.
15.Run petroleum radio/tv show:
To raise awareness, we must inform Tanzanians about oil and gas industry. Launch your radio/tv show that addresses a key issue in Tanzanian gas. And you make money from oil and gas players who want to advertise their products and services.
16.Oil and gas magazines
If you have some experience in oil and gas and have a writing skills, you can start a magazine to cover the opportunities, projection , trend and out look of the industry and make a living through selling ads space to your magazine
17.Oil and Gas Blog
You can make money on the internet. Once you set up your blog and publish informative articles about the oil and gas sectors, you increase your reputation and position yourself as an oil and gas consultant.
18.Developing Oil and Gas software and application:
The rapid growth of technology industry has led to creating immense opportunities in the oil industry. Fortunately for you, in the petroleum industry, there’s room for improvement. You can either make the operation run safer or save time in operation. If you love computer programming (coding), start building and selling software that best fit the oil business. Are you capable of building software that helps oil and gas operation run safer? If yes, act now and make millions from gas the market.
What To Do Next
Pick one idea that make sense to your situation and personality and go out there make it happen.
Dear reader I would love to hear your thought on 15+ Lucrative Oil and Gas Business Opportunities and Ideas In Tanzania and East Africa. Let me know your thought by leaving your comment below.
Hussein.boffu@tanzaniapetroleum.com
+255655376543
