The Shocking Reasons Why Tanzanian Companies are not Getting Tenders In The Oil and Gas Sector
Tanzania is well known natural gas hotspot. With government estimates over 57 trillion cubic feet of natural gas deposits. International individual and companies are moving in to tap business opportunities.
This living testimony that there’s great wealth in Tanzania’s oil and gas sector.
Government promotes local content policy.And require international oil and gas companies to procure goods and services rendered by local firms.
But the harsh truth is most of the local companies are not getting work from international oil and gas companies.
And they feel overwhelmed and frustrated when no any contract forthcoming
You might be wondering why does all this happen? That’s where I come in to enlighten you after digging deep in this industry
This article explains why these organizations fail and how to overcome such challenges. So as local services provider get more work in this industry and increase their company reputation
#1:Lack of financial and expertise to execute oil and gas projects and services
In fact, most oil and gas services require substantial capital to get things right.
For example, clients in the oil industry might contract Tanzania company to offer the safety boots that cost USD 600000.
But the problem is you need to pay supplier all that money before you send these products to clients. Because many local firms have a limited budget.
They found themselves miss out the work from International company
#2:Shortage of skilled__Local workforce
The shortage of local manpower with skill and experiences in this industry is the substantial challenge keep down local content policy.
Read: Why Most Tanzanians Struggling With Finding a Jobs In The Oil and Gas
The government realizes such obstacle by sending nationals abroad for oil and gas courses. For this reasons many Tanzanian oil and gas services providers do not win tender from the oil and gas companies.
To get work from international oil companies. You need to demonstrate your capabilities until they satisfied you are the right person for that project.
The local firm they are not able to demonstrate their capability on how they can render that services. Because international oil and gas companies want quality services.
#3:Overlooking tendering criteria in the oil and gas sector
I’m not writing this to make our local insiders feel stupid. But many local firms they do not win the tender in this industry because do not study even understanding tendering process. This industry wants to offer tender in right way.
If the oil and gas tendering authority need you to submit two hard copies one electronic, one in color and in black. You need to do that.
The positive approach for Tanzanian Company To Win More Tender In Oil and Gas Industry
#1:Partnership with international suppliers is the way to go
To stand out, Tanzanian companies should go into partnership with foreign companies that have expertise and capital to get oil and gas projects done.
These foreign companies have been in the oil industry business for years and they have made a huge profit before.So they have the technical know-how and financial capacity to render such services.
This will help the local firm to make the most into oil and gas tender . Most importantly promote local content through skills transfer.
#2:Tanzania company must compete with the best world
Multinational oil company wants to procure quality products and services.They look for quality no matter where will find them in the world.
They will go and contract them. So the local company should not take advantage of local content. They should constantly demonstrate that are good as International competition.
They should concentrate on delivering quality products. Because local content does not mean awarding contract when you deliver low-grade products that do not meet international oil companies needs
#3:Concentrate on tendering criteria
For the local company to reach mountaintop must understand the tendering criteria. So if the oil and gas tendering authority want you to submit it on this date, in this format with this information. Do that, Otherwise, you’ll burst at the end
Stop Making Excuse Now
Now you’ve all reasons the local company does not win the tender in the oil and industry. Go out there and work on these.
I don’t want to baby you you’ll make it overnight. But in the long term, you’ll stand out from many people that are whining that the government is not doing well to promote local content.
Hussein Boffu
Recent Petroleum Geosceinece Graduate
Hussein.Boffu@Tanzaniapetroleum.com
0655 37 65 43
