A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Wholesale and Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited

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Our sample LPG  business plan helps business owners and entrepreneurs like you create a business plan in less time for investor funding, bank loan, compliance with government authorities and for self-learning. 

EXECUTIVE SUMMARY

Overview

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019. Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with our effective marketing and supply strategies, building close client relationship as well as providing complementary services, the newly-established LP Gas retailer like Quick Gas can still be profitable and assured of recovering its entire investment.

The Company

Quick Gas Limited will be a newly-established LPG (Liquefied Petroleum Gas) distributer/retailer in the Kasulu District of the Kigoma Region in Tanzania to cater to the booming LP Gas (cooking gas) demand.

Quick Gas Limited will be duly registered and will obtain a trade license to operate as a Liquefied Petroleum Gas (LPG; popularly known as cooking gas) distributor/retailer in Tanzania. Quick Gas Limited will be equipped with a strong team with both technical and business background in managing all aspects of an LP Gas business: organizing, financing, marketing, promoting products and services, and solving technical and organizational problems.

Products and Services:

Our products and services include:

  • LP Gas (cooking gas) in 6kg, 15kg, 30kg and many other volumes.
  • LPG cylinders of various sizes, colour and design.
  • Cookers and fittings such as pipes, gauges etc.
  • Site installation services.
  • Home delivery of products and services.

Customers/clients:

Quick Gas will deliver LP Gas to household, industrial and commercial customers in Kasulu District in the Kigoma Region and will expand to other location of the city after three years of services.

Competition

Quick Gas Limited will have both direct and indirect competitors but our competitive advantage is that majority of the population will opt for LP Gas rather than buy firewood or charcoal, and there are more customers to go round.

Financial Considerations

The financial projection of this business plan is attached as an spreadsheet file.

Objectives

The underlying objectives of QUICK GAS limited is stated as follows:

  • To be known as a top quality, safe and reliable LP Gas delivery service provider in Tanzania.
  • To achieve and preserve a high gross profit margin.
  • To expand to other location within the city after three years of service in the Kasulu district of Kigoma Region.
  • To achieve 25% of the market share within the first three years.
Form of Business: Limited Liability Company
State of Business: Start-up (new business)
Managing Director: Lawrence Mambo
Business Development Consultant: Hussein A. Boffu
Opening Hours: Mondays to Saturdays: 7 AM – 7 PM.

Sundays: 12 PM – 6 PM

Get the Full Version Now

In the full version, you will have access to the following table of contents:

EXECUTIVE SUMMARY

  • Overview
  • The Company
  • Products and Services
  • Customers/clients

BUSINESS DESCRIPTION

  • Mission
  • Vision
  • Objectives
  • Our Values
  • Keys to Success

PRODUCTS AND SERVICES

MANAGEMENT TEAM

MARKET ANALYSIS AND TRENDS

  • Market Research
  • LP Gas Import in Tanzania
  • LP Gas Industry Trends
  • LP Gas Industry Outlook
  • Our Target Market

COMPETITOR ANALYSIS

  • Direct Competition
  • Indirect Competition
  • Competitive Advantage

SALES AND MARKETING PLAN

OPERATIONAL PLAN

  • Opening Days/Hours
  • Location
  • Setup Cost
  • Machinery/Equipment Requirement

SWOT Analysis

PEST Analysis

FINANCIAL PLAN AND PROJECTION

 

For the complete business plan for starting and running a LP Cooking gas business in Tanzania, make a payment of $200 (or its equivalent in Tanzanian Shillings TZS 400,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com. The moment we receive your email or SMS and we confirm your payment, the plan will be delivered to your email address (in docx) within fifteen minutes.

You can then download it and read it on your smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

LP Gas Access To Power Growth In Africa

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Ahsif Ahamed , Sales manager, Hexagon Ragasco As.

Ahsif Ahamed the sales manager of Hexagon Ragasco, gives his thoughts on  LP Gas  market in Tanzania and Africa at large and how his company made a giant stride in the market.

Hexagon Ragasco is one of the official sponsor   of the 6th Africa LP Gas summit holding 3-4 July 2019 in  Dar es salaam.

Hussein Boffu asked.

1. Describe your company’s recently milestone?

Hexagon Ragasco has sold as at this year 16 million composite LPG cylinders in over 80 countries. This is a milestone we are very proud of as it reinforces our global leadership position within composites.

2..According to Energy, Water and utilities Regulatory Authority (EWURA), Tanzania imported 120,961 MT of LPG as at December 2018. This is an increase of 13% compared to 107,0883MT imported in 2017.This is huge number and testimony that LPG marker is growing at rapid pace in Tanzania, what are some initiatives that Hexagon Ragasco has in place in order to meet the high demand of LPG in Tanzania ?
Our presence in Africa has become more important in the course of the past years and we wish to continue working with Tanzanian regional stakeholders and LPG users to spread the word about our innovative and safer technology along with the real advantages offered by our award-winning cylinder. The lighter weight, translucency and rust-free characteristics of our cylinders, combined with their increased safety can positively impact and change the way LPG is used in Tanzania.

3. LPG summit returns to Africa for the 6th time running, the summit is once again to be held in Dar es salaam on 3-4 July 2019 with Hexagon Ragasco fully supporting it as an official sponsor of the summit. What are you expectation for this important gathering.

The Summit gives attendants the opportunity to meet with and renew acquaintances with the movers and shakers of the industry and be informed of the new trends and happenings in the market. We are looking forward to meet with key influencers, decision makers in Tanzania and with key LPG distributors in Africa to renew and strengthen our partnerships. We are also excited about presenting our composite cylinders, our state of the art technology and welcoming visitors to our booth.

Prepare For The Oil and Gas Opportunities

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Innocent Urio Engineering and Maintenance Manger, Puma Energy Tanzania

 

Innocent Urio has built a lucrative career in the oil and gas industry. From working with one of the largest oil service company in the world (Schlumberger), he now works downstream (oil marketing company) with Puma Energy Tanzania as Engineering and Maintenance Manager.

His interesting story reflects that anyone can build and grow a career in the oil and gas industry, as long as he or she is willing to work hard and long hours.

In this exclusive chat, Innocent gives insight on his journey in the oil and gas industry: the challenges he faced and some initiatives he takes to ensure that he stays in this dynamic industry.

Hussein Boffu, asked.

1.How did you happen get started in the oil and gas industry?

My journey in the oil and gas industry started in early 2012 just after completing my final-year exams. I was given an offer to work with Schlumberger as Maintenance Engineer after passing series of interviews conducted during a career fair event organised by Schlumberger at College of Engineering and Technology, University of Dar es Salaam, Dar es Salaam.

2.Describe the main challenge you faced in your career?

The main challenge was during my first two years when you spend most of the time on the field, doing onshore and offshore drilling rigs. This is the time when you are supposed to acquire a lot of skills through on-job and in-class trainings and you are required to break out and become a standalone competent engineer. The condition for employment during this time was to pass all trainings, otherwise you will be dismissed.

3.What is your most memorable event in your career?

My most memorable event in my career occurred in 2015 when I was promoted to General Maintenance Engineer (GME) after passing all interviews and successfully delivering my project presentation in Congo Brazzaville, Pointe Noire. I delivered this presentation in front of Regional Management and it was a pass-or-fail event.

4.The long awaited oil and gas market is  recovering with new projects being approved. How does that impact your career?

The oil price is recovering already and has started to provide opportunities to many areas around the world. What is required is just for all stakeholders in industry to be ready to grasp these opportunities.

5.What does local content mean to you?

Local content, to me, means the provision of employment for locals and the use of local goods and services through development and participation of local human capital and business firms in the entire value chain of the oil and gas industry.

6.What advice would you offer to young people looking to build a career in the oil and gas sector?

The most important thing is to try to be well-informed. Seek information and know what qualities most oil and gas companies are looking for. Also, it is very important to be connected in professional networks such as LinkedIn.

Ensure you have a well-crafted and updated CV. The professional network profile and the CV should portray your qualities. Some job sites are specific for oil and gas jobs. It is very important to visit these websites regularly.

 

Giving Locals Priority In East African Oil and Gas

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Sudesh Dewar, C.E.O , Demps Offshore

 

Oil and gas East African Network (OGEAN) had the opportunity to interview Sudesh Dewar who is a  Chief executive officer at DEMPOFSHORE. He talks about the company’s recent milestone and some strategies they will take to enhance local content development through hiring and developing the local workforce in the oil and gas sector in Tanzania and East Africa 

Hussein Boffu asked.

Can you tell us a little about Demps Offshore?

 Demps Offshore Services is a man management company from Navi Mumbai – India, catering mainly to the Oil & Gas industry. We also have our international presence in South Africa. We will be shortly opening our office in Dar es Salaam, Tanzania as well.

Over the period of just ten years we are in the position to provide host of offshore personnel for dredging projects, upstream, midstream & downstream.

Managing the entire HR aspects which includes shortlisting, client approval, documentation, medicals, insurances, travel formalities, maintaining required crew strength, crew rotation schedule, crew change, payroll, etc. on behalf of our clients has been the focal point of our services. Our concept / intention is to ease out the pressure of managing the required man power & give the client room for focusing on other important issues.

 What are the biggest projects Demps Offshore has handled & how many people did you hire for the project?

 The project handled by Demps Offshore are as follows:

PROJECT LOCATION YEAR TOTAL CREW PROVIDED FOR PROJECT
PRP Offshore pipeline replacement Mumbai High, India 2008 to 2011 20 to 45
Pipe Laying / Cable Laying /SBM / Top Side / Jacket Installation / South Pars, Iran 2010 to 2014 22
Dredging + LNG Terminal Construction Jafrabad, Gujarat, India 2017 to 2018 65
Offshore Drilling Kish Island 2017 to 2018 45
Dredging & LNG Terminal Construction Jafrabad, Gujarat, India 2018 (On going) 27+
Dredging Abu Dhabi, UAE. 2019 953 (Recruitment only)

 There are so many manpower companies out there, why should oil companies or their major contractors (EPC) choose your company instead of others?

 Demps Offshore has demonstrated their know how, understanding & expertise in providing & managing manpower for all segments of oil & gas & in addition dredging project. There is no other manpower company who are proficient in giving all mentioned services under one roof. We completely out class our competitors.

Like any other country when major projects such as pipeline construction or LNG come on stream, the government wants its citizen to benefit. As it concerned to pipeline welding project, it you are supposed to supply local workforce, how would you manage to supply welders & fitters from Tanzania.

 In any profession career starts at the lowest level which is called trainee to apprentice. This level is safe level for a fresher to understand the work profile & exploring correct working methods. In similar way we intend to hire locals & develop them gradually with periodical test & certification. By doing so we manage a “WIN WIN” situation to all (Local Tanzanian people, Government with respect to employment & revenue in the form of tax, Client for getting competitive labour cost, Contractor for providing competitive quote to the client due to the availability of local manpower). By tapping the local resources of manpower we up lift the human development index.

You mentioned  that you have presence in South Africa and  also you are  opening  Tanzania branch . Can you tell us why Tanzania?

There are several attributes to this questions namely, to qualify in getting contracts. It is only possible if you have a local company. Use the local man-force available thus cutting cost on employment visa & travel cost. Great potential in doing business in Tanzania.

Managing Work Stress And Make Your Job More Enjoyable

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Bhakti Shah, Managing Director, Impact Afya Ltd

Ms Bhakti Shah, Managing Director of Impact Afya ltd,  talks to  the Oil and Gas East African Network (OGEAN) about minimizing health risk  and increasing productivity  and improving performance of the employees at the oil and gas workplace. 

 

 ImpactAfya Ltd is a Corporate Wellness Solutions Provider, based in Dar es Salaam.

Hussein Boffu asked,

1.As the country’s oil and gas expands, with new employees joining the oil and gas workplace for their first time. Do you think that is vital for oil and gas companies to develop wellness program relevant to new and local workforce?

 

Yes of course – working in the oil and gas sector is extremely demanding and this is substantiated by the fact that the utilization of wellness services in this sector is increasing rapidly around the world.

As the Oil and Gas industry expands in Tanzania, it will attract Tanzanians from across the country and expatriate staff.  Looking at the industry trends in other parts of the world, The prevalence of both physical and psychological stressors is expected to increase and will lead to numerous health risks, which in turn will negatively affect the productivity and performance

Research from the World Health Organization shows that one in five people worldwide are living with mental health issues.  Modern workplaces are increasingly challenging and personal lives in this sector experience isolation and loneliness.  Almost a quarter of adults are not physically active to prevent illness and one in three people are usually distracted at work by their financial situation.  This applies to Tanzania as well, where the Tanzania Demographic and Health Statistics has reported a 16% probability of dying in the economically productive age-group of 30-70 due to non-communicable diseases.

Employees and their dependents in the Oil and Gas sector need assistance with work-life issues, including family support services and substance abuse intervention, nutritional issues, including weight management and dietary consultation as it relates to disease prevention and management.  Family and relationship issues such as eldercare, childcare and addictions are also of concern in this sector due to the nature of work demands.

Employers in Oil and Gas industry must examine existing policies, practices and objectives as they relate to working conditions, retention and attraction, and socio-economic factors.  Risk management strategies, as they related to each of the issues, should be identified, as well as factors including a well thought out wellness program will contribute to organizational success in general.

 

2.What are the importance of collaboration among human resources, operational management and other departments within organizations in improving health and productivity of the employee at workplace?

With the rapidly changing business environment, oil and gas companies are transforming to being decentralized and agile.   As a result, human resources function has evolved from being purely administrative role to that of a strategic business partner that demands interaction across the organization for improved efficiencies and performance.

Workplace health and safety policies and programs are of critical concern where heavy industrial construction and technical competency are fundamental components of the work environment.   The Oil and Gas industry operates under very strict safety standards and government regulations to ensure the well-being of workforce…

The industry makes use of many different activities in all the sectors of the business cycle: from upstream to downstream. Health, safety and environment standards are applied at all levels of operations and therefore departments must collaborate together to implement programs that promote health, safety and resultant productivity.

 

3. According to IPIECA, fatigue  is the state of tiredness that is associated with long hours of work, prolonged periods without sleep and requirement to work when would normally be resting.  How can organizations manage fatigue risks especially in oil and gas operations that employ workers in geographyically remote areas?

 

The American Petroleum Institute defines fatigue as: “reduced mental and physical functioning caused by sleep deprivation and/or being awake during normal sleep hours.  This may result from extended work hours, insufficient opportunities for sleep, failure to use available sleep opportunities, or the effect of sleep disorders, medical conditions or pharmaceuticals, which reduce sleep or increase sleepiness”.

Fatigue is associated with shift work and overtime and links have been identified between fatigue and industrial disasters.  Fatigue is also associated with medical conditions such as diabetes, obesity and hypertension.

Fatigue is determined by a multitude of Work-related factors such as shift schedule design, overtime and on-call arrangements, commute, environmental conditions and access to food and water, type of work, task design, staffing levels, breaks within shifts, safety culture, pay structures, commitment to fatigue risk management, sleep environment and individual factors such as sleep environment, sleep disorders, health, domestic and social commitments, commute, commitment to fatigue risk management, sleep hygiene, age, secondary employment.

 In order to provide comprehensive protection from the impaired performance caused by fatigue, an organization should carry out a risk assessment and then institute fatigue risk management plan which gives consideration to all these factors. An effective fatigue risk management should recognize that fatigue is the joint responsibility of employers and employees and that communication, consultation and commitment on both parts are essential.

The fatigue risk management plan should take into account operational experience and practicalities and should be integrated into corporate safety and health management system.

4.Some offshore specialists routinely move from one installation to another and tend to have no fixed work and leave cycle how does that impact performance of the employee?

 

Most offshore personnel are employed long-term on one installation, where their work schedules form a regular pattern.  The schedule is usually planned months in advance.  However, specialist personnel working on ‘ad-hoc’ basis are required to travel to different installations where and when required to meet particular operational needs.  Consequently, these personnel are likely to work irregular and/or unpredictable schedules.

The working time arrangements operated in different areas worldwide depend largely on factors such as travel times and distances between the installation and the shore, employees’ home location, the mode of travel and prevailing weather conditions, along with local and national employment practices.  Most schedules are based on equal-time work/leave cycles for employees.  In general, specialists tend to work on longer rotations so as to reduce the time and costs involved.

Long work hours are an integral feature of offshore employment, irrespective of a particular work schedule.  Fatigue is potentially a serious problem for all offshore personnel.

Work on offshore installations involves potentially hazardous production and/or drilling operations.  The intensive work patterns, the nature of tasks involved, and the effect of fatigue, are potential sources of risk to the safety and well-being of personnel.  There is the operational risk of explosion, fire, structural failure, shut-down, reduced productivity resulting from human error and impaired performance, and risk to the physical and psychological well-being such as injury, illness, sleep disturbance, anxiety.  Moreover, the family problems resulting from the offshore lifestyle may indirectly on the well-being and work performance of the offshore specialist.  Long hours and fatigue may impair performance during the offshore work and may carry over into travel during and adjustment to, shore breaks.

On arrival offshore, workers need time to recover from travel fatigue, to adjust to work routine, and to become familiar with any operational changes that occurred while they were away.  This adjustment typically takes 2-3 days from the period of shore leave and during this time, work performance may be adversely affected.

 

Recovery from fatigue requires adequate rest to replenish mental and physical exhaustion.  A period of recovery makes people feel capable and ready for the next phase and prevents the accumulation of fatigue and the serious health consequences as a result.Rest and recovery does not necessarily mean doing nothing. Time spent on social and physical activities that are enjoyable facilitate recovery and well-being and performance on return to work.

5.What advice would you offer to Senior Management who would like to improve employee health outcomes and productivity?

 

Considering the occupational, physical and psychosocial stressors in this industry, employee wellness programs are a strategic imperative.  A pro-active approach promoting employee wellbeing through a variety of well thought out initiatives and interventions will drive employee productivity, engagement and retention and meet new social expectation.  Adopting a long-term strategic approach to employee health and well-being is key to ensuring that your organization and its people thrive.

Employee Well-Being in the Oil and Gas Sector

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Bhakti Shah, Managing Director, Impact Afya Ltd

While being an exciting sector of a country’s economy, the petroleum sector poses a number of challenges related to human resources, such as business uncertainty, offshore and remote work, shift work and accidents and other crisis.   As the Petroleum industry expands in Tanzania, the prevalence of occupational stressors will persist as determinants of employee health and wellbeing.  The employees also face socio-economic stressors related to relocating to project site, while maintaining the delicate balance of work and family commitments.  The manifestations of these stressors are both physiological and psychological, which invariably result in:

  • Isolation and the feeling of lack of support
  • Stress upon family
  • Distraction due to family issues, which may result in accidents
  • Workplace stress
  • Difficulty focusing and being productive
  • Effects on sleeping and eating
  • Difficulty in balancing family and work
  • Emotional impact of relocation and shift work
  • Addictions and substance abuse

Stress, anxiety, depression, physical conditions and other issues not only affect a person’s ability to perform their work at a high level, but can impact their life away from work as well.  Health and well-being issues are becoming increasingly prevalent in today’s society.  With such challenges, it can be very difficult for people to be at their most engaged and productive.  This obviously can have negative effects in terms of employee relations and retention, productivity and ultimately the bottom line.

While safety is an operational imperative for the oil and gas industry, there are more subtle aspects of the physical and mental stresses resulting in a number of health risks for the employees and their families.

A pro-active approach promoting healthy body and mind through a variety of well thought out initiatives and interventions will drive employee productivity, engagement and retention and meet new social expectations. Adopting a long-term strategic approach to employee health and wellbeing is key to ensuring that people and organizations thrive.

Reply back to bhakti@impactafya.comor call +255 754 694 643 with your feedback. We welcome your suggestions for corporate wellness tips you’d like to see covered in our future columns.

6th Africa LPG Summit 3-4 July 2019: Developing Key Success Factors for a Sustainable LPG Business in Tanzania and in East Africa

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Dar Es Salaam – As LPG Summit returns to Africa for the 6th time running, the Summit is once again going to be held in Dar Es Salaam. The conference and exhibition include a vibrant exhibition of 80 companies and a dynamic conference agenda focusing on the region over two days.

As LPG is proving itself to not only be a healthier and more environmentally friendly fuel, it is also now proving itself to be a cheaper and more economic fuel than charcoal at almost 5 times cheaper.

This two-day event is endorsed by Petroleum Bulk Procurement Agency (PBPA) and World LPG Association (WLPGA).

Key sponsors include Oryx Energies and Hexagon Ragasco.

Government officials from the Ministry of Energy and Environment have been invited.

Key themes that will be discussed: 

— Driving Economic Growth Through LPG Skill Transfer, Knowledge Sharing For All Stakeholders And The Empowerment Of Women

— How can we enhance further the opportunities needed within our communities to ensure a sustainable business and a successful community?

— A tough financial environment can create opportunity – Ensuring the market quality and sustainability in Tanzania and East Africa through key success factors

— Innovative uses of LPG in Tanzania and East Africa

— Technology as a means to boost safety and access to LPG in Tanzania and East Africa

A special Cooking for Life workshop will be led  by Michael Kelly, Deputy Director of World LPG Association (WLPGA).

Cooking for Life is the association’s flagship initiative in terms of development. The goal is to convert 1 billion people from cooking with biomass to cooking with LPG by 2030.

“ I think it is timely for LPG Summit to go back to Dar Es Salaam to help promote the benefits of clean burning LPG for environmental  and health reasons. Communities, government, the global and local LPG industry working together to ensure viable economic growth is the key to growing the industry and promoting the benefits of using this exceptional fuel” said Michael Kelly.

The Summit seeks to proliferate the use of LPG at a time when it has become economically sensible for the majority of users who are still using traditional fuels to switch over to LPG. The benefits of using LPG has far reaching implications and has the potential to save the lives of millions and improve the quality of life of many millions more causing ripples that will benefit future generations like few other lifestyle changes can.

LPG Summit seeks to promote the use of fuel for cooking, heating and power generation. LPG is the fuel of choice in emerging markets and LPG Summit is the platform that will bring the people, the government and the businesses together as Africa enters a new phase of development like never before.

The 6th African LPG Summit will be held at the Mlimani City Conference Center on July 3-4, 2019 (http://www.lpgsummit.com/africa2019/) and about 80 international companies will participate in the summit.

About LP Gas Summit

The LP GAS SUMMIT is the preferred regional platform bringing together stakeholders from the government, refineries, LPG plants, LPG distribution companies, technology providers and investors to bring the industry forward.

www.lpgsummit.com/africa2019

About PBPA

Petroleum Bulk Procurement Agency ( PBPA ) is a government agency established under the Executive Agencies Act Cap. 245 vested with mandates of coordinating and managing efficient procurement of petroleum products through bulk procurement system.

www.pbpa.go.tz

About WLPGA

The World LPG Association (WLPGA) is the authoritative global voice for the liquefied petroleum gas (LPG) industry and the worldwide industry association which represents the interests of the LPG industry globally. The WLPGA promotes the use of LPG to foster a cleaner, healthier and more prosperous world.

www.wlpga.org

Press contacts

— Chloe Lee, Marketing Manager, LPG Summit, +6588125131 chloe@lpgsummit.com

— Yolanda Engels Anderson, Managing Director, Yolanda Tavares PR, +254 722 511073,yolanda@ytpr.co.ke

Aminex Current Status On Drilling Projects In Tanzania

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Uk- based exploration and production firm, Aminex, has answered the most frequently asked questions. The company released some answers on the status of its drilling programs in Tanzania. Some of the questions include.

What is the status of drilling CH-1?

The Company has finalised the Chikumbi-1 executive drilling and completions programmes, has identified and selected the service companies required to operate all aspects of drilling and, based on a competitive tender process, has selected Sakson Drilling and Oil Services DMCC to drill the Chikumbi-1 well.

What is the current status of Kiliwani?

The Company engaged Schlumberger SEACO Inc. (“Schlumberger”) to remediate and troubleshoot a faulty sub surface safety valve (“SSSV”) on its Kiliwani North-1 well. Schlumberger were mobilised to location and the SSSV was repaired. During the operation the well was fully opened and test gas flowed to the plant for a short period. The Company believes that there is a fluid column in the well and is analysing the operational and testing data.

Marketing In Oil and Gas: Gain Competitive Edge Using Publicity

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In today’s competitive environment, maintain your company visibility is important to economic survival.

It helps you communicate an unspoken message about your company. The message is “ We are doing fine, we are surviving and we are here for you because we have products and services that are in demand even in a down economy”.

Recognizing that people in the oil and gas industry prefer to do business with companies they know or  heard of with a good reputation.

Favorable publicity helps establishes credibility and maximize your company’s visibility. In turn, visibility establishes trustworthiness which is worth money in the bank.

Three main reasons publicity gives you a competitive edge include:

1.Enabling to reinforce a message who you are and what you do: You may think everyone knows who you are and type of products or services you offer, but chances are, there many people who never heard of you or are not sure exactly what you do. Getting your story into different media communications or publications help people know who you are and what you do, these generate inquiries and maximize your company visibility

2.Inform the industry you are active. Knowing you exist and remembering you when your services are required are entirely two different things. Keep your name in industry publications, reminds people and keep your name in front of them, so when they need products or services they know whom to call.
Enhance your company’s image and reputation across the whole industry: This is the key benefit of positive publicity. People tend to think about your company as a successful organization when they see your name regularly in respected industry publications.

 

3.Enhance your company’s image and reputation across the whole industry: This is the key benefit of positive publicity. People tend to think about your company as a successful organization when they see your name regularly in respected industry publications.

 

Related: Marketing for Oil and Gas: Defining Your Unique Competitive Advantage

Five Powerful Ways To Gain Competitive Edge Using Publicity 

Now you know why publicity is vital for your business survival in today’s competitive economy, let expose some ways to generate positive publicity that gives you a competitive edge.

1.Feature articles: A feature article is an article written and submitted to publications by corporation or business or entrepreneurs. The main goal for a feature article is to gain publicity and exposure for the company, its products or services.
Placing feature articles with appropriate industry publications is one of the most powerful and effective of all marketing technique:

  • Your message has far more credibility as editorial than as a sponsored advertisement. Because readers view advertising with skepticism
  • The publication of the article results in the credibility of the company.

2.Case history: This is a company, products or services success story. It tells how services were used to solve the problem, improve operation, increase productivity, save money or time. Example story ideas for case history include an outstanding story, customer success story, etc

3:Press release: The press release is a prepared news story that contains useful information about your company, products or services send to the press or industry publications. It uses to tell the media about your story or business in the hope the media will tell the public. The best way to benefit from the press release is to ensure you create a newsworthy event that has some interest to your target audience and the industry publication as well.

4.Newsletter: Another way to generate publicity is to publish newsletters and distribute for free to prospective clients, employees, shareholders and other people who might be interested in company activities products or services. The primary goal of the newsletter is to establish an image, credibility keep in touch with prospect employees, shareholder partners.

5.Take ownership of the industry events.Participating in the industry event can be a powerful tool to market and promote your company or even products in the oil and gas industry.

More than two oil and gas industry events are held each year in Tanzania. And these can be a good place to network, build new contacts for business development.
All you need to do is to find out the industry event that fit your budget and participate as delegates or sponsor.

Coming Up With Case Story, Feature Articles, Newsletter, and Special Report Ideas.
Here are ten story ideas you can apply in your organization to generate positive publicity:

1.Announcement of the new branch, announcement of new workshop or training or events.
2.Advice from an expert in your company. For example, your health and safety manager can comment on the way to reduce an accident in the workplace.
3.A view of high ranking women in your organization on the woman in the workplace
4.Story of volunteer recruited in your company
5.A tip sheet on how our customer can get the most or benefit from your services
6.Feature articles can people will benefit from joining the industry association
7.An employee who help young people in your company.
8.Interview with the company’s key executives, engineers
9.Oversea activities such as branch products, new facilities, etc
10.Productivity story such as new methods to increase productivity
11.The new joint venture, merger, and acquisitions.
.
You Should Use Publicity as your marketing If
You want to build an image.
You want to increase sales.
You are struggling to attract the best employees.
You want to generate new sales leads.
You want to expand your operation into the new market.
You want to increase awareness of your company, product or services.

Your Turn

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How Not to be Left Behind in the Current Rehiring in Major Oil and Gas Projects in Tanzania and East Africa

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The year 2019 is the year of achievement in the East African oil and gas industry. Chances are that many projects are coming on stream.

Already, there is the East African Crude Oil Pipeline (EACOP) project. The Ugandan-Tilenga project will soon kickstart.

I read a good news on the East African media outlet last week. The media pointed out that the Tanzanian government will start negotiation this month with major oil and gas companies to define terms on commercial aspects of the US $30 billion projects. And they expect to conclude that by September this year.

 

All these projects present huge opportunities to individuals and business suppliers. But how do you stand out from the crowd? How do you capitalize on the opportunities in the major oil and gas projects?

Stick with me and you will find out:

 

There is a saying that information is power. This statement holds true, and that is why I want to give you this information to power up your business and career.

The more information you have about what is going on in the industry, the more you stand a chance to secure great opportunities.

 

The oil and gas industry is full of rumours. So, keep your ears on rail. If you maintain awareness in the industry, you will make informed career and business decisions.

 

But there is a lot of wrong information spreading out there. If you feed yourself with wrong information, you will end up making bad decisions. To stand out, always check the source.

Deploy Different Marketing Tools

 

Why do a job with only one screwdriver when you can have a toolbox? In the oil and gas business, it can be a little bit tough if you rely on a single marketing tool. It is the combination of marketing tools that makes you stand out. So, deploy different marketing strategies, ranging from direct email, publicity, networking to event sponsorship

 

Form Partnership with Prestigious Companies

If you think that you are too small to participate in supplying goods or providing services, go into partnership with prestigious partners for broader service offers and increased capacity.

 

Final Words

 

Oil and gas industry is a personal-contact industry. People in this industry prefer to work with and do business with company they know, have heard of or know are good company with good reputation. Any factor more than those are unproven and risky. So, attend networking events, join associates, and join oil and gas groups to keep yourself up to date.