3 Major Challenges Affect Your Ability To Sell Into Oil and Gas And How To Overcome Them

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If you are struggling to attract clients into oil and gas, you’re not alone. because that’s happening, Not just to you. But to tons of entrepreneurs  in Tanzania and beyond.

But I have shocking truth for you today. The truth that prevents you from selling in the oil and gas.

The outlined are the truth:

                  

1. Availability of information
The Internet has changed everything. Your prospect has a smart phone, laptop or pad, whatever you call it. But it gives them access to the internet.
So information is at their fingertips. With a click, They can learn everything about your products, services, price, and specification.Even information about you and your business.

The sad reality is that, once they found things they don’t like. They  ignore you offering.

 

 2. Small wallet
Oil and gas companies and business have a small wallet.They cut cost and they want to spend more with less. The is because the economy is unstable right now. And crude oil price drop in the global market has added fuel to fire.  Most importantly, companies are burning with a loaded of tax today.

                

3.  The world is a single village
These days, your prospects can buy to any marketplace. Skype and video telephone has turned the world too small

In Tanzania, example. Many oil and gas companies buy products and services overseas.

So trying to compete in that game is the wastage of time.So how do you stand out?

Perhaps your marketing strategies relied on making more calls, send out a lot of emails. And have face to face presentation.

These approaches are effective.But in today’s oil and gas market, using these approaches you prospect might take longer to respond.

                        How To Overcome These Challenges

Great times of oil boom has gone. So things have changed now in the industry.
But the only thing that  remains  the same  in this sector is, we do business with people we like and trust

However, there’s the smart way. a method that can yield a greater return in the long term.That approach named DIGITAL MARKETING

Digital marketing is when you use the internet to promote your products and services to your high target market.

I often call digital marketing as help marketing. As you don’t do this to push clients to purchase your products and service. But you give them actionable advice about your offering. You show them how your products and service can benefit them.

This build trust and your clients will recognize you as an expert in your area. So if you are offering valves, writes an article about types of valves every engineer should know. If you are selling PPE’s demonstrate how they can benefit your clients. The same way if you offering engineering services.

The reasons this method is effective is, your clients, oil and gas professionals, highly decision makers are online

searching for the solution and valuable information about their business and personal matters. So why don’t you go where they are?

In reality, digital marketing is a new concept in oil and gas, but it increasingly popularity in the industry these days.

So, digital marketing cover everything from email marketing, video marketing, social media marketing.Your online presence

should be part of your sales team that increase your profit margin. But guess what. Having only company website, It won’t pay off.

Do you have an email list? Is your website rank higher when someone searches it on google? Do you provide valuable information about your offering that can help your clients?

if your online presence doesn’t result in you in revenue. Then it’s worthless to your business.

The common sense answer is to focus on getting clients and sales from your website visitors.

Who Else Want To Double Income and Make Large Profit Margin In Oil and Gas In Tanzania

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Are you want to double your earning in the next 12 months? Are you rack brain for perfect business opportunities in Tanzania?

If you answer yes to everything above, then why not make money oil and gas sector?

The oil and gas demand in Tanzania is growing at a quick rate. But a little professional knowledge about oil and gas sector. You can become on your way to a profitable oil and gas business.

No matter who you are or your status. The perfect opportunity is just waiting for you.

So you want to double your earning from oil and gas? Then sell something. The only way to make money in the oil and gas is to sell something. Got it?

And the only two things you can sell is a product and a service. Nothing more to those facts.

So what if you don’t have products to sell? Simple. Just sell someone product and earn a commission. Simple as that

Now I want to toss you is the idea that you can increase earning in the Tanzania Petroleum industry.

Become facilitator
Open your eyes and research items that are selling fast in Tanzania oil and gas sector.In this case, take Personal Protective Equipment (PPE) as an example.

Are these safety shoes, gloves are selling fast in Tanzania? If you discovered yes. Go online or even google whatever you want to do. And make a list of both local and international companies offering PPE.

Once you are done, Kickstart visit company offices and ask them to be representative of their products. Now after that go out, and use all marketing skills you can master to introduce your items to your highly target clients.

Make sure you agree with them to give you some percent for each purchase is made. Many international companies are keen to expand the market in Tanzania. With a good approach, you are smile to your bank

Still Confusing, Let me give one more example. Do you know Liquefied petroleum gas (LPG) also is called cooking gas (gas to cook your food) or simply GAS as everyone call it. Is one of the fast selling items in Tanzania.

So, if you don’t have start -up money to buy cylinders. Go and find a local dealer, negotiate a deal. You find a customer who needs to refill their cylinders. You deliver your customer with gas and earn a commission.

 

Read also:How-to-start-cooking-gas-distribution-business-In-Tanzania.

This might be stressful as you start. But once your business starts growing. You will have tons of customers. You can do the same way and sell those petroleum products such as diesel, kerosene petrol, and even lubricant.

If you are starting out with minimal capital, This is the best way to earn excellent money without investing a cent.

2:Start with frustration
I’ve told you before, but I’m still going to tell you. You want people to give you their hard earned money. Although that is important, about their money. What do problem people have in oil and gas sector?

If you say to me the problem is employment. So what problem do people have finding a job in the oil and gas sector? Is it
that there’s no job? Or because their CV isn’t professional? Or that they lack work experience? What do problem oil and gas company face

List everything out on a piece of paper. Make a list of all problems. And brainstorm on the solutions toward that problem.
That’s all I have to say for now.

The question of the hour is:

What do you have to sell to them? What products or services do you sell? Leave your comment below.

Or just  email me at Hussein.boffu@tanzaniapetroleum.com.      I read all emails.

How To Start Your Own Oil and Gas Exploration Company In Tanzania.Practical Guide

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Perhaps you are drilling engineer and your friend is a geologist. Or someone you have been working in the oil and gas for quite sometimes now. You done a lot great job  for your employees.

Now you need flexibility, You don’t want to work for someone else. You want to make a big impact to the community while enjoying the flexibility and financial freedom.

In another word . You want to become your own boss. Perhaps you have been thinking of it since you started a career in oil and gas sector. But you have no idea how to get started.

 

Below you will find step by steps guide  that will help you start your own exploration and production company any time you ready.

 

Table of content

  • What oil  and gas exploration and production companies do
  • Two reasons why you should set up your  exploration and production companies in Tanzania
  • Three steps to start oil and gas exploration company

 

What’s  Exploration and Production Companies do

Before we go any further let me tell you  in a child language what the oil and gas exploration companies do.

Oil and gas exploration and production companies search for oil and gas resources and bring them to the surface so as can be processed and delivered to the consumers or end users.

The potential In Starting Your Oil and Gas Business In Tanzania

The reasons you need to start your own oil and gas exploration business in Tanzania is that Tanzanian is an emerging market. So many resources are untapped

1’Natural gas resources in Tanzania is abundant

Although Tanzanian has 57.27 trillion cubics of natural gas. But the US geological survey points out Tanzania has potential natural gas reserves up to 441 trillion cubic feet, solely in the coastal region.

So is the best opportunities to pursue new oil and gas reserves  and explore for these oil and gas resources. As  more natural gas discoveries might be forthcoming. If you set up your own oil and gas company in Tanzania

2:Strong administration
The new administration of president John Magufuli that Intend to tackle corruption in all sectors (including oil and gas sector) will give room for new investor to grow and gain access to permit and license that were made difficult to get.

How To Your oil and Gas Exploration and Production Company In Tanzania

 

Step 01:Funding  your start-up oil and gas exploration company.
The simple truth is oil and gas projects need money. A lot of it. But  limited  start-up money is not an excuse to achieve your goal of owning and operating exploration companies.

Because many and gas entrepreneurs , started their oil and gas business with limited capital.

You need to learn how oil and gas entrepreneurs raise money for their business and follow the path.

So if you are wondering how to find money for your start up. Here are an options available for the oil and gas entrepreneur to go into oil and gas business.

1:Equity
This is the means of raising money by providing a share of your business to the investors. The investor who raises some money for your business will become a shareholder of the company, so they will have to say in your business and take an ownership interest in your business. So if business make profit, they will receive part of it
This is the best way to finance your oil and gas startup because you don’t need to pay it back, also you tap into investors network which adds credibility to your business
2:Debt (borrowing)
Another option is to raise money for your oil and gas business is debt (borrowing) this is money you borrow to finance your business. Bank borrowing can be a little bit frustrating particularly when you are small business starting out. Although if you have a strong business plan you keep a good relationship with your local bank. Your bank will lend you money.

                                                   Step 02:   Hire The Talent

So you have money right now. Then you should hire the best people in your organization.

Despite the fact, there are a lot of talents available to hire out there but attracting the right person for the right job is harder than you think and should be done with carful planning.

Look for candidates that are problem solvers, flexible and passionate about the industry. You can also look for the retired professional who still has passion for bringing solution in the organization
.
                                                 Step 03:Get License and Permit
In Tanzania, the Tanzania development Corporation (TPDC) is the government organization that is grant licenses and enters will enter production sharing agreement (PSA)with you.

      Good Lucky To You

Now you are done. Work early, go and strike Gas. Solve energy challenge in Tanzania and turn these resources into high-profit margins.

How To Start Cooking Gas Distribution Business In Tanzania…..Detailed Reuirements

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LPG Gas Bottles. LPG plant

Cooking gas Image

Cooking gas becomes so popular fuel for cooking.  Have you ever wondered why is everyone using gas for cooking now?.   The answers are pretty simple.

The first thing first, cooking gas is environment-friendly, cook food faster. Best of all cooking gas is very affordable

Cooking gas is also called  Liquefied petroleum gas (LPG)  or simply   “GAS” as everyone calls it.    Cooking gas is made up during refining of crude oil or processing of natural gas.

I don’t want to go deeper into this subject of the formation of Cooking gas.  Let be the story of another day. The topic at hand is how you start, run and make good money selling cooking gas in Tanzania

The market for this product is growing at faster rates. To save forests, government encourage the use of this product. So even people in rural areas are switching from the use of firewood and charcoal.

This business has attracted a lot of entrepreneurs in Tanzania. And cooking gas retail shops are in every street corner.

I often wonder, how do they make a profit with this intense competition. But the best part is that, as the number of the household switch to this fuel,  demand increase and more customers arise.

    Start-Up Money

You don’t need all the money in the world to start up cooking gas business in Tanzania.  With 1,670,000TZSH  you are staring    mid-sized cooking  gas  business in Tanzania

So before we go any further      let look at  budget for starting this business

Gas cylinders (     15kg gas  and 6 kg.  about 20 pieces each size of cylinders) TZSH          1,140,000
Business license   TZSH              80,000
Fire certificate   TZSH          100,000
Hose pipe   TZSH           60,000
Dry powder fire extinguisher 6kg   TZSH           90,000
Miscellaneous   TZH             200,000
Total                                  TZSH          1,670,000      

Read:      How-to-start-video-production-business in Tanzania

How is profitable is Cooking Gas Business In Tanzania

The average profit you can make for selling   15kg cylinder is  TZSH 7000. You buy at a unit cost of  TZSH 47,000 and resell at TZSH 40,000. So if you sell 10   cylinders in a week will make  7000×10= Tzsh70,000. In a month it is possible to make TZSH 280,000

The profit you can make for supplying 6kg cylinder is TZSH  4000. So once you selling 10 cylinders in the week will make you  4,000×10=TZSH 40,000. In a month you will have  a profit margin  TZSH   160,000

That is just an average profit you can make. But I guarantee you 95% profit if you do a good marketing and you sell your item in a good location.

Tips  To Succeed In This Businesss

   

1:Do  home deliveries

Cooking gas is the constant pushing business, so staying back and hoping customers will knock on your door is not a plan. To stand out you should do home deliveries with no extra charges.

Considering you’re starting with limited fund,   so delivering cooking gas to the customer’s doorstep with no extra  costs. might be stressful. But using a cheaper alternative to supply gas can be easily solved the challenge. So  considering using bike instead of car


2:Pick  good marketing strategies

Cooking gas is the personal contact business. So the word of mouth will really work. Approach a friend and family members and tell about your business.  The location is everything. Locate your shop in the area accessible to your target Customers. If you are reliable and you deliver on your promise.  Customers will become a friend of your business.

  Challenges In s  Cooking  Business

1:Fire explosion

Cooking gas is  flammable in nature. That’s can catch fire easily. To stand out, observe gas leakage and fix a problem quickly. Most importantly get fire extinguisher in your store

2:Price volatility

Cooking gas business is the boom and bust business due to the prices fluctuation in the global cooking gas market.  So when the price of cooking gas in the global market drop. It affects the local price as well. This ruins your business as the many customers saves money on buying gas. This will  drop your sales and profit as well.

So,  go out there and make it happen. You will thank me later.

I would love to hear your thought. Leave your comment below.

How To Start Oil and Gas Business In Tanzania—–3 steps

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People reach out to me and ask, what it takes to set up oil and gas business in Tanzania.

So if you’re thinking and you’re passionate about starting any business in oil and gas sector. Follow these three steps

1:Find a niche
Now, you want to start an oil and gas business, pick a niche. Oil and gas sector is large and it divided into three areas.

Upstream portion of the oil and gas sector involves finding areas where oil and gas resources might be and bring them to the surface. It often called Exploration and production

Midstream part i involve transportation and storage of oil and gas from where is found the place where can be processed and refined

Downstream part this involve converting natural gas and crude oil into finished products such as diesel kerosene, gasoline, lubricant, plastics so as can be used by end user

So what’s your niche, if you pick upstream part of the sector your business might be supplying goods and tools to oil and gas companies, providing maintenance, mechanical and construction services, design pipes, welding and pipe fittings to oil and gas platforms

If you choose midstream as your niche, your business would be, selling gas storage tank, transportation of petroleum product through tankers, selling corrosion inhibitors etc

If you’re telling me your niche will be downstream, your business will be selling products made from oil and natural gas such as diesel, kerosene, cooking gas (LPG), gasoline

From business perception, you can’t serve everyone. You can’t say everyone is your customer. You should narrow your market and pick a specific niche.The more  you narrow your niche, the better you increase your winning chance.

Read:11-solutions-to-turn-problems-facing-tanzanias-oil-and-gas-into-business-opportunities/

2:Plan
All business need plan, but oil and gas need it more because of the extremely ups and down of the sector. Your plan should define clearly what products and services you are going to offer, you should have a short description that describes what business you are going into. You plan should include your financial projection, market strategies etc. Developing waiting list is the stressful work for many entrepreneurs but if you discipline in doing it you will find it easier than you think. Your plan does not guarantee you success but not having one is the ticket to failure

3:Start-Up Money
Once you have already picked the market you want to focus and you have a plan, next step is to finance your start up. So how do you get money to finance your business? There are the various ways to finance your oil and gas start-up. This includes equity financing and debt financing. However, if you have a detailed plan, you are creative and determined fund will never be a challenge to you.

The simple truth is there are two ways to learn any business.
1. Trial and error—— you start your own business and you learn as you go from both mistakes and success. The disadvantages of this option it would take you longer to succeed and hit your target
2. Find a mentor——– someone who has already been in a business you are going into and gives you guidelines of such business. This is the effective method because you’ll reach your mountaintop faster than you have ever imagined possible. Because they will give you what works and what do not work out. And you get a mentor by books of the subject related to business or field you intend to start oil and gas business is like that

We have a write a book for you and will be released soon. In this book, you will discover

1. How to start oil and gas supply or services business in Tanzania (Including planning your business, market analysis etc)
2. How to be supplier or contractor in oil and gas in Tanzania(including license and permit you need to get started with your oil and gas supply or services business)
3. How To raise money for your oil and gas supply business
4. How to recognize and pursue potential business opportunities in oil and gas sector in Tanzania
5. How to arrange presentation of your goods and services to the oil and gas companies
6. How to register with various oil and gas companies as a VENDOR (supplier or contractor)
7. How to get deals (winning contract and supply) Including preparing and submit acceptable bid
8. How to raise money for your supply or contract
9. List of services and goods and tools you can start to supply in Tanzania oil and gas
10. Main area of business opportunities in the oil and gas sector in Tanzania
11. Tips to survive in Tanzania oil and gas sector
12. More interesting business opportunities in oil and gas sector

This is “must have” eBook, so if you will need this eBook, please bring your order right now so as we keep you on our “ waiting list” (People who waiting this book). The price of this eBook is 30,000tzsh

This price is 95 discount. And this discount will expire after 2 weeks from today. So keep your order today, another way you will pay more later.

You will never find anywhere in the world the oil and gas book is sold at a fair price like this. I could charge it higher, But I want this book to help more people. I want many people to benefit from the oil and gas sector in Tanzania.

To get into our waiting List
Send SMS at this +255689955711 or shoot me an email at Hussein.boffu@tanzaniapetroleum.com. with your full names and email and we will keep you into our waiting list

 

Solo Oil announces helium acquisition in Tanzania and Ruvuma gas progress

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Solo Oil has acquired a 10 per cent interest in Helium One Limited and announced plans to progress further with the Ruvuma gas field, increasing its presence in Tanzania

The Ruvuma region is ripe for gas development. (Image Credit: Egbert in donker Afrika/Flickr)

The Ruvuma region is ripe for gas development. (Image Credit: Egbert in donker Afrika/Flickr)

 

Helium One is Tanzania’s pure play helium exporter, and the helium is expected to become a bigger player in the African oil and gas industry in coming years. As well as the newly acquired 10 per cent interest, Solo has an additional call option to acquire a further 10 per cent interest within 90 days.

This second investment is expected to close on or before next month with a long stop date of 31 July 2017 in case of any delays in regulatory approval in Tanzania. It has been reduced in price from £4m (split equally between cash and shares) to £3m in cash. Once this has been issued, Solo will then have the right to subscribe for a quarter of a share in Helium One for every one share subscribed for under the call option.

This can be exercised until 31 December 2017 with a price of US$0.40 per share.

It was announced earlier this month that Helium One completed the acquisition of an airborne gravity and magnetics survey and has approved more soil and groundwater sampling surveys, following the successful results of the first phase of sampling work. It is expected that drilling will commence in the Rukwa project area in 2018, where it is estimated that approximately 99bcf of helium is present.

Current global demand for helium is at around 6bcf so this makes Rukwa an important strategic project for the future of the sector. New helium supplies coming onstream are limited and the US Federal helium reserve will be shut down in 2021, so this positions Tanzania as a potential major player in the world helium market.

As well as positive news for the Tanzanian helium sector, Solo is pursuing a 25-year development license for gas in the onshore Ruvuma petroleum sharing contract (PSC) from the country’s authorities.

This follows the drilling and successful testing of the Ntorya-2 appraisal well as part of the Ruvuma PSC. According to the appraisal results, there is most likely discovered gross gas of 466bcf in place. As well as seeking out the license, Solo is looking for a partner for its future involvement in the development. Solo owns a 25 per cent non-operating interest in the Ruvuma PSC and the Ntorya-1 and Ntorya-2 wels, which are operated by Aminex.

credit:http://www.oilreviewafrica.com

Purchasing and supply in oil and gas

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The oil and gas industry is divided into three areas the ‘upstream’  ‘midstream’ and ‘downstream’ operations.

Upstream involves finding areas where oil oil and gas might be and  bring it to the surface it safely.

The midstream involve transportation and storage of oil and gas .

The downstream part of the industry is concerned with refining,  processing distribution  so as can be used by end users.

The supply chain

The oil and gas industry has very long supply chains. Many companies may be involved in supplying the materials, components and services at different stages and across the various processes involved in extracting, refining and distributing oil and gas. Procurement becomes even more important in this type of global operation. A company such as BP sources services and supplies from many different countries. These include mechanical and electrical parts, to professional services such as project management or legal expertise for drawing up contracts.

Reliability is a crucial factor in supply, both of quality and timing. If supplies are of poor quality, delivered late or cost more than was agreed, this will affect productivity and profitability. If production is delayed or faulty products need to be scrapped, this can reduce profits. Poor quality inputs could also affect the safety of the process – a major consideration in the oil and gas industry.

For example, to help improve safety and quality of supply, BP is introducing safety performance indicators into contracts of suppliers involved in high-risk activities. Suppliers who do not meet these standards may be removed from contracts. As part of this safety focus, BP is also planning to reduce use of agency staff in procurement roles and boost its in-house expertise in supply chain management.

‘Make or buy’

An important decision for many businesses is whether to carry out a particular part of its process itself (‘make’) or buy in the components or expertise it needs. This decision might depend on, for example, whether the skills and capacity are available in-house; whether there is a need for high security of supply; or whether it is simply cheaper to outsource.

For example, an oil company could choose to rent or own an oil platform. If it rents, its costs are limited to the rental period, with repairs and maintenance the responsibility of the owner. Buying outright might cost more initially but the company has the benefit of the asset. However, it also has the issues and costs of maintenance and ultimately, disposal. Purchasing managers work with operational managers to consider these issues and find the most cost-effective and efficient solution for the business.

Sustainable procurement

Other key factors to consider when choosing a supplier include their ability to respond quickly to changing customer needs and how well they can help towards meeting a business’ sustainability goals.

Sustainable procurement is a high profile matter for businesses today. It can help to save money, reduce waste, improve competitiveness and build a business’ reputation. As part of their sustainability programmes, many oil companies have invested in local transportation networks or built schools. They provide jobs and by sourcing supplies locally help to develop the local economy. The global oil industry has a responsibility to the countries in which it operates to manage its operations in as sustainable way as possible. A purchasing manager might want to consider whether the supplier behaves responsibly, for example, adhering to ethical standards or sourcing raw materials in an ethical way.

For example, Shell is working with its existing suppliers to implement the Shell Supplier Principles. These set out the minimum standards which Shell suppliers need to meet. These include using energy and natural resources as efficiently as possible to minimise impact on the environment and covering health and safety issues.

Other aspects of sustainable business include managing waste effectively and reducing the company’s carbon footprint. This can be improved by choosing suppliers who also take their responsibilities towards environmental impact seriously.

11 Solutions To Turn Problems Facing Tanzania’s Oil and Gas Into Business Opportunities

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Oil and gas business opportunities are out there everywhere. And are available for everyone. But the simple truth is most people don’t know they go through every day missing these oil and gas opportunities.

And you are probably one of those people. You may not know it. But business opportunities is right your nose. Is knocking your door every single day. And if you let these opportunities to pass by.You are missing huge chance to make a significant amount of money.

Money is the reward after solving someone’s problems. If you want to make money in the oil and gas sector in Tanzania, fix a problem and help more people. It’s that simple.

Once you focus on solving a problem and rather than making money you will start to see many opportunities in the oil and gas industry in Tanzania.

As the oil and gas industry is the new in Tanzania, there are many problems to solve,make bigger impact in the community and  generate income  as well. The bigger problem you solve in this industry the more money you make.

So here I will list  11 problems that facing the oil and gas sector and its solutions so as you can take advantage of it. So  read this article from start to finish and once you finish  take immediate action.

Problem 1: Limited oil and gas information

Information about oil and gas industry in Tanzania is held into the hands of few individual. So this prevent public participation in the oil and gas sector in Tanzania as the many people  unaware of opportunities available in the industry and how oil and gas really work.

Solution :  

  • Organize oil and gas events that people will discuss different opportunities available in the industry, and you will make money selling tickets to individual and companies
  • Launch oil and gas magazines that will address key issues and trend in the oil and gas sector
  • Oil and gas blog: If writing is interest you,  start oil and gas blog and share projection of the oil and gas.training ,jobs and business opportunities.If you were a good a content you will attract many visitors and make money through advertisement on your blog

Read also  (Opportunity-local-and-foreign-investors-are-invited-for-natural-gas-distribution-in-Tanzania)

 Problem 2: Shortage of talent
Tanzania’s oil and gas sector face a serious problem of local labor with requsite skills to execute oil and gas projects.

Solution: Establish training that teaches youth requisite skill that will get them into oil and gas workforce
Here are training you can offer to them:

  • welding, pipe fitting, and fabrication training
  • Repair and maintenance training
  •    Oil and gas Resume writing services
    If you are capable you can establish oil and gas training institute

Problem 03 :Poor Infrastructure
If you have visited today to the regions of oil and gas activities you will find poor infrastructure that needs frequent services. There’s  Natural gas   plants,    that must be serviced  every now.

Solution
Offer maintenance and repair services to the oil and gas platforms
Welding services

    Construction and mechanical services

Problem 04: Limited time to go the market to buy materials
Oil and gas companies in Tanzania are busy with projects on the job site, they are busy with searching areas with oil and gas resources, drilling or extraction of oil and gas. So they do not have time to go to the market to buy goods, tools, and equipment. As doing so will delay production which results to decrease its profitability

Solution:

Visit their head offices and tell them what your business can do for them
Products you can sell. Food, Stationary, and office supplies, Safety equipment, uniforms safety shoes, Fire Extinguishers, Valves pipe fittings paint etc.

If you are reliable and you will be able to deliver goods and tools early or on time, they will become friends of your business and  award  you more contract

Problem 05:Public relation: Good relationship between oil and gas companies and the communities in the areas they operate is vital for sustainable development of any oil and gas companies
Many oil and gas companies have made poor job in getting their message out

Solution: Organize oil and gas Television show
And you will be talking about various issues facing oil and gas sector in Tanzania, such as the effect of oil and gas activities in the environment, how communities can prevent themselves from the environment pollution result to oil and gas activities.You can also share various business opportunities and teach people why oil and gas sector is important for them and their next generation and gives them the basic of how oil and gas are extracted transported and use

Business model: Approach companies and organization to sponsor your show

Problem 06:Cost cutting: Oil and gas companies want to reduce budget by doing more wilt less, so any idea that will help them to reduce expenses in their day to day operation will make you big Cash

Solution: Technology
So anything that can drive efficiencies is in high demand.So look technology that can help companies do more with less. So In this case, Video Conference is an example

How? Oil and gas reserves and activities are conducted in remote areas. But always oil and gas executives spend more time in the head office. So with video Conference, oil and gas executives and manager can easily communicate with their team (engineer or operators ) on exploration site or construction site without being physically there. So this reduce travel cost when they buy ticket

If you are in IT or Telecommunication sector you can sell video conference system to the oil and gas companies in Tanzania
So anything that can drive efficiencies is in high demand.So look technology that can help companies do more with less

Problem 07:Clean Energy that does not Pollute households
Use of hazardous firewoods and charcoal is the major problems that face many households in Tanzania.
These kind of energy are expensive, pollute the environment and  carbon emission can result in the death of people, specifically women, and children.Also firewood and charcoal makes women spend a lot of time in the chicken. As  the government discourage deforestation,more clean energy and cooking facilities  that do not impact  our homes are in high demand.

Solution: Supply cooking gas to the homeowners, restaurant, hotels and even to the factories. If you are reliable and you deliver on time on their doorstep you will attract a lot of customers within a reasonable time from setting up
Problem 08:Safety: Safety is the slogan of oil and gas industry. Overlooking first in the oil and gas industry can lead to the immense challenge

Solution: Conduct oil and gas safety training and sale safety and personal protective equipment
Problem 09:Poor Power supply (electricity): Affordable and reliable power supply is the major constraint in Tanzania. So many business owners, companies have to generators so as to handle this challenges
Solution 1: Supply petroleum products such as diesel, gasoline, kerosene
Solution2: Sell solar panels, solar charges etc

Problem 10 Security: Security for the oil and gas companies assets and properties are very crucial in oil and gas industry. Also, oil and gas and pipeline are needed to be protected from threat. One of my friend who is procurement in one of the oil and gas companies. Ask me If I can help them to look for supplier of extinguishers because people have stolen their existing one

Solution: Provide security services for the oil and gas companies offices and on their site

 

 

Problem 11: Logistic and transportation: Transportation and logistic is the major challenge in the oil and gas. High specialized equipment, complex and remote location also constant fluctuating freight cost impact profit margin of many oil and gas companies
Solution: Providing transport services to move goods, equipment, and employee to the job site
I would love to hear thought,  if you know more problem that we can solve in oil and gas in Tanzania and make money from  it please share.

 

Hussein.boffu@tanzaniapetroleum.com

Opportunity: Local And Foreign Investors Are Invited For Natural Gas Distribution In Tanzania

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Tanzania Petroleum Development Corporation (TPDC) has invited local and foreign investors to undertake natural gas distribution projects in the country’s commercial capital of Dar es Salaam and the emerging industrial zones in Coast Region.

TPDC’s Acting Managing Director, Engineer Kapuulya Musomba said these opportunities will result for the conclusion of the determined projects covering 65km, over 30,000 houses in surveyed areas in Dar es Salaam, Tanzania media reported.

It is reported that Musomba also emphasized that the 532km gas pipeline from Mtwara to Dar es Salaam provides huge opportunities for power generation and investments along the path.

According to media, there is an existing gas 50 km distribution network connecting homes in Dar es Salaam.

The gas distribution network are said to be in Mtwara and Lindi, the hosting regions for the big chunk of 57.25 trillion cubic feet, which have so far been discovered onshore and offshore the Indian Ocean.

in addition, in Mkuranga District, Coast Region, Musomba said the national oil company has acknowledged some 53 industries, which will need the energy for production.

“We have already linked a pipeline to the recently established tile making factory, Goodwill Tanzania at a capacity of between 7 and 10 million cubic feet; we are in deliberations with three other industries to be linked to the network,” he explained.

He added: “Plans are to increase the distribution network to Kibaha and Bagamoyo districts to prompt industrialisation in Coast Region.”

Musomba continued: “TPDC will obtain a consultant in June, this year, to review a viability study carried out last year; the revised assessment will offer us with efficient financial and technical requirement for the project in Dar es Salaam.”

He also noted that a viability study for Mtwara and Lindi regions was being concluded, after which it will be followed by environmental and social impact assessment. “Original approximate that the distribution networks in the two regions will cover 31 km of gas pipelines to homes, industries and filling stations for motor vehicles,” he said.

For areas which are far from Dar es Salaam, the TPDC says it will transport the energy in form of Compressed Natural Gas to Tanga, Morogoro and Dodoma, media reported.

Meet Tanzanian 36- Years Old Who Build 1 Billion Us Dollar Oil Company

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On a crisp late May afternoon in Dar es Salaam Ally Awadh, one of Tanzania’s most prominent businessmen, is waxing lyrical about a deal he has just concluded. Recently, the Competition Authority of Kenya gave his company, Lake Oil Group, the go-ahead to acquire all the fuel service stations of Hashi Energy, one of Kenya’s largest independent oil companies

“It’s a first step for us in our pursuit of regional domination,” says the 36-year-old mogul in lightly accented but supple english. “Once you conquer Kenya as a foreign company, then you shouldn’t really have much of a problem prospering in other East African countries.”

Dressed in a black T-shirt, jeans and handmade black loafers, Awadh’s look may be unpretentious. His ambitions are anything but. In less than a decade the young founder and CEO of Lake Oil Group has built his company into a $1 billion (revenues) integrated energy solutions provider, and he’s not resting just yet.

Lake Oil Group, which Ally Awadh founded in 2006, is one of East and Central Africa’s fastest growing energy trading and transportation conglomerates. The company is now one of the 5 largest distributors of petroleum products in Tanzania.

Ally Awadh

Lake Oil Group also distributes and trades fuel products in Zambia, DRC, Burundi and Rwanda; owns its own oil storage facilities in Tanzania and the Democratic Republic of Congo; manufactures lubes and Ready Mix Concrete Segment, and operates a fleet of more than 400 tankers. Lake Oil Group also has trading operations and gas stations in Rwanda, Burundi, Mozambique, Uganda, Canada and United Arab Emirates.

Ally Awadh was born in 1980 to a family of successful entrepreneurs. His father built a considerable fortune trading agricultural commodities in Tanzania, and as a result Awadh attended the prestigious and exclusive International School of Tanganyika for his High School studies before proceeding to Brock University, Canada, where he studied Business Administration.

While studying for his undergraduate degree at Brock University, Canada, Awadh once reached out to his father, demanding an additional allowance. His slightly irritated father chided the young Awadh and asked him to start earning income on his own.

“My father basically got tired of me always calling him to ask for more money, so one day he bluntly told me on the phone that I was an adult, and if I wanted any money, I needed to start working for it. It was a reality check for me,” Awadh recalls.

Awadh soon got a job flipping burgers at McDonalds after study hours. “This was a turning point for me,” he muses. “For the first time, I was having to serve people. I was taking orders, handing people their food with a smile, building up on my people skills and just learning how to connect with customers. But more importantly, I was earning my own income, saving and building a nest egg for the future.”

After completing his studies in Canada, Awadh started importing used clothes from Canada to sell in Tanzania. Before long, his second-hand clothing business, which is popularly referred to in Swahili as ‘Mitumba Biashara’ prospered.

“I doubled my money on the first consignment, and I kept replicating it over a period of time. That’s how we built up capital in the business. Before long, I had accumulated a very substantial amount of money, and I was only 23 at the time,” Awadh says.

To consolidate, Awadh soon ventured into the importation of used and refurbished Trucks to Tanzania from the United Kingdom. Simultaneously, he started a milk processing facility which he subsequently sold. By the time he was 25  Awadh had already become a millionaire in American dollars.

At the age of 26, Awadh approached the Petroleum Bulk Procurement Agency (PBPA) in Tanzania and applied for a license to import refined petroleum products. He laughs when he recollects his encounter with an employee at the agency.

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“I was clearly very young and so when I went to the PBPA and asked them to give me a license, this particular guy sized me up and told me I was not serious. He could not believe that someone so young wanted to get involved in the bulk oil import business. But then he looked at our balance sheet and our track record in business, and we clearly had the capacity to play in this business.”

In 2006 Lake Oil Group was born. Awadh assembled a team and began importing fuel products to Tanzania, distributing to gas stations. As he built up his balance sheet, he was able to raise loans from local and international banks which he used to build up oil storage terminals across Tanzania. He also started buying up retail stations and setting up new ones across rural regions in Tanzania.

“As much as possible, we try to focus on constructing our retail stations in up-country areas, rather than focusing only on the urban areas. It has been an extremely successful model for our business. While most companies are looking to have fuel stations in the city centers and the more bustling urban parts of Tanzania, we’ve decided to take the road less taken. We are now also developing fuel stations in Rwanda, Burundi, DRC, Zambia, Malawi and Zimbabwe.”

Awadh is also a major player in Tanzania’s transport sector. Lake Trans, his transportation subsidiary, is one of the largest trucking and haulage companies in Tanzania. “Our venturing into transportation was born out of necessity.

We figured out early on that if we wanted to distribute our products to every nook and cranny of Tanzania, we had to invest in our own distribution. So over time, we have acquired a fleet of more than 400 trucks.” While Lake Trans primarily services the needs of Awadh’s primary businesses, Lake Oil leases it on occasion to other businesses.

Today, Lake Group plays an important function in the lives of many Tanzanians. The company is widely credited for popularizing cooking gas among Tanzania’s rural population. Its cooking gas subsidiary, Lake Gas, is the undisputed market leader in Tanzania and is breaking into to Uganda, Zambia, DRC and Rwanda. Lake Gas recently completed a state of art Gas storage terminal in Tanga, Coastal Town of North Tanzania.

Ally Awadh has built Lake Oil Group into a stunning African success story, but he is quick to attribute his success to his employees. “A company is only as good as its people,” he says. Awadh makes it a point to personally interview every managerial-level employee at his company, and he allows any manager have access to him at any time.

Ally Awadh is still as ambitious as ever. Despite building the most successful indigenous oil marketing company in Tanzania, he still has his sights set on new ventures. Lake Oil Group has established Middle East Ready Mix LLC, a company that produces durable and non-durable concrete that is used for piling, foundations and structures. The company has plants in Dubai AND Tanzania.

Lake Group is also working to establish a Truck assembly yard together with a foreign partner on a Joint Venture basis, and Awadh has recently invested in a Steel Plant at Kibaha, Tanzania and it will be commissioned before the end of 2017. He is also looking to expand his business tentacles into agriculture, farming and Agro process industries in the near future.

The young businessman is one of Tanzania’s biggest philanthropists. Through the Lake Oil Foundation, Awadh spends hundreds of thousands of dollars every year granting scholarships to impoverished Tanzanians and rehabilitating schools and Hospitals.

“My idea is to build Lake Group into a Pan-African diversified conglomerate by the year 2025, employing more than 15,000 people. I believe it’s possible, and as long as God lives, I am unstoppable,” Ally Awadh says.

Source: Forbes