How To Start oil and Gas Services Company In Tanzania with Little Money. Th Complete Guide

 

It’s a crazy idea, right? But you read the title correctly. I am talking to graduates, students, employee, recently laid off workers, Tanzanian youth and anybody with interest to start oil and gas business from scratch, but they have limited capital

I’m not the mind reader but I know you are thinking this is a crazy idea. You don’t want to believe that you can set up your own oil and gas services company and start to cut your cake in Tanzania’s oil and gas sector. You are not alone, this is a perception of many Tanzanians. We believe, starting oil and gas business require huge start up capital.

If you doubt me, go out there, and tell people you are into oil and gas business, They will immediately start to see you as you have loaded of wealth. And situation get worse when you hear about starting oil and service company, You start wondering where I could raise money to finance my startup oil and gas company?
But it takes courage to set up oil and gas business, instead of money

But you can start your own oil and gas services companies in Tanzania. I have said too much, let me jump in straight to our topic.

Are you graduate with any engineering program? Are you struggling to find a job in Tanzania?Are you are currently employed but you passionate about oil and gas business?

Do you have any technical skills like welding? pipeline pigging. Do you know how to fabricate, Are you aware of troubleshooting those A.C Do you have any engineering skills, Are you know how to design or drawing Auto card. If the answer to any of the above question is yes, Then this article is for you. So read this article all the way to the end. Never skip even a single sentence.

Tanzania is blessed with massive natural gas discoveries, approximately 57 .27 trillion cubic feet.But the shocking truth is there are few local oil and gas services companies. We(Tanzanians) flocking into applying for a job to this international oil and gas companies. And forgetting that we can start our start up and render services to these companies.

All the biggest oil and gas services companies in the world have started from the bottom before becoming a big player in the oil and gas industry. You can start small and grow your company day by day until you become the biggest players in Tanzanian oil and gas sector

What is the oil and gas services company?
These are companies provide supportive services to the oil and gas companies, such as welding, fabrication, pipeline pigging, construction, repair and maintenance

How To Start oil and gas services companies in Tanzania?
Many Tanzanian youths have a dream to start their oil and gas business. But a lack of money holding them back from turning their ideas into real business. So, this kills those good ideas.

And you know how is hard to get a loan from our banks in Tanzania, specifically for youth who have no any asset as security for a bank to borrow them money.And even if you get, It will come with high-interest rates.

And, Sometimes, It’s difficult to find friends, family or relatives to finance your ideas because they don’t take you seriously or they fear you can’t pay back their money as you idea will never work out.

Some Tanzanians found they have 200,000 Tanzanian shillings when it required 1,000,000 Tanzania shillings to register a company. All those stuff have been major obstacle to set up their own business

The Bet solution to set up your oil servicing company from scratch

The easy route to set up your oil and gas companies is to pull up resources from your course mates, colleagues, close friends.

In fact, you must have people surround you who also want to start a business, these people might be course mate, colleagues or close friends or even brother who have a dream to start a business.

So you reach to these people who have the same interest or talent and have a passion for oil and gas and you pull up resources such as talents, connection and money to set up your oil services companies. To avoid the conflict of interest in the future, find a lawyer to prepare a legal document for your agreement.

All big oil service company started the same way. Have started with two or more people (colleagues, course mate who found themselves have a common idea.

Consider the world major oil and gas services companies such as Schlumberger, When two brothers Marcel and Conrad set up their own oil and gas service company in the 1920s.

And today is a well-respected company in oil and gas sector. And have thousands employee all over the world including Tanzania. Imagine what would happen if some Tanzanian youth or graduates, could pull up resources, money, connection and talents. I bet, they could get far.

Now, Let us imagine you have you have reach out 5 people and you agreed to start oil servicing companies. Here are steps:
1. Brainstorm your company name. And get it registered with BRELA(An agency responsible for company registration in Tanzania
2. Get the tax clearance and register for VAT
3. Get it registered with CRB (Contractor engineering body)
4. Get offices (You should even rent small room, at the beginning to cut the cost)
4. Start with a small project: While you are working to get a contract to oil and gas companies you can find small projects like do repair work to individuals. This will help you to get a money for making daily end meet such as transportation, accommodation etc

How To get Contract From Oil and Gas Companies In Tanzania

Now you can conduct a legitimate trade. So how do you get a work from oil and gas companies? The knocking on the door is the first step to getting a contract from the oil and gas companies. You knock the door and meet with these procurement officers then you tell them what your business can do for them. Also, visit field sites and tell the field manager what your business can do for them.
As this is the persona contact use your network wisely and once you get a first contract give good services on time.

However, oil and gas industry is a business you can make a lot of money.But there’s no magic formula on
Getting a contract from oil and gas industry, rather than working long hours and risk taking. I am kind of person who telling you that you will make huge cash from the Tanzanians oil and gas sector overnight. The good money in the reward of giving good service

So What’s holding you back?
So will you find friends, course mate to partner with, or you’re still sitting, and blaming the government that doesn’t want to offer you a job?

I am done. The decision is yours

Hussein.Boffu@tanzaniapetroleum.com