How  To  Do  Business With Oil and Gas Companies In Tanzania

 

Oil and gas companies in Tanzania buys almost everything,  They buy food stuff, to feed their employees in the job site.They buy fuel, such as diesel and lubricants. They buy industrial products such as valves, safety equipment, HR services, Transportation services. So you can do business with these companies provided that you know what you’re doing.

So how can you do business with oil and gas companies in Tanzania?   How do you get infront of those people and do business with them. Here’s how

1.Assess Your   Business

Is the first step in starting working with these international oil and gas companies. So you know exactly what you really do?  You should be able to define what your business does in a single sentence. And be clear about the goals and objective of your business.

Read:How-to-recognize-potential-business-opportunities-in-Tanzanias-oil-and-gas-sector-5-steps

 

2.Find a Decision Maker

Up to this point, you knock on oil and gas companies offices and try to meet decision maker. This is a person who can say “yes” or  “no” to your products and services. And ask him to get you into supplier list

  1. Never accept “No” as a Final answer.

If they say “NO” today, doesn’t mean will say No again next month. Do a regular visit so you keep your face in their mind, that way, you build trust to the client . If you spend 80% of your time to have a presence with oil and gas companies. You stand a great chanc to get a business.Because you will be the only guy  in front of them.

4.Deliver On time

With all that strategies, now they should give you a work to test your performance. Please deliver on time and do your work in great performance. If you do your first job well, they will give you more. That’s way you increase reputation of your company,

 

 Final Words

You can make a handsome money in this industry if you’re ready to go an extra miles. Go beyond your comfort zone.No magic formula. The secret to doing business with oil and gas companies lies on hardworking, honesty and patiency.

 

How To Recognize Potential Business Opportunities In Tanzania’s Oil and Gas Sector…..5 Steps!

 

The major constraint that holds back many Tanzanians from grabbing the opportunity in the oil and gas sector is the lack of information about the current opportunities in this Industry.

Many local suppliers and services providers even job seekers don’t aware of the existing opportunity in this booming sector. This lack of information prevent many Tanzanian entrepreneurs from identifying project they might bid or the services they can offer.

But the simple  truth is, you can easily see opportunities in this industry if  you  know how oil and gas  really work,

Oil and  gas companies  will never knock on your door and tell you about coming opportunities

In reality,  oil and gas sector is the relationship industry. People in this industry they prefer to do business with people they know and like. And they are doing this because this is big dollar business, oil companies put a lot of risks to work or do business with people they don’t know. So you’ll never hear opportunities in this industry are advertised on the newspaper, radio or Tv stations.

And if you hear such kind of announcement perhaps would be the oil companies sell their share, so they want you to go  and buy their stock at Dar es salam Stock market.

Like what they did, An Australian based exploration and production company,  Swala Energy in  2013.When they announced to sell their share in Dar es salaam stock market. And Tanzanians flocked to buy.

So are you wondering how you can recognize oil and gas business opportunities in Tanzania?  Read on to find out.

1.Do your Homework

The first step of searching for oil and gas business opportunity in Tanzania is to find out what’s going on the regions where there are oil and gas activities in Tanzania such as Mtwara and Lindi.

Find out what are international oil and gas companies are there and what they are doing. Because each phase of oil and gas projects needs a certain kind of workforce and different types of products or services.  Are they search for oil and gas resources or the produced gas? Are they drilling or they are in the exploration phase.

Read:How-to-organize-oil-and-gas-event-in-Tanzania-and-make-millions

In fact, the kind of products and services required by oil and gas companies differ based on the stages of the oil and gas projects. Sound confusing, let me clarify

Example 01:Imagine an international oil and gas companies are doing seismic exploration on the southern part of our country. So here is an example of goods and services they will buy from you:

Drill bit                                       Foodstuff                             Dynamites and Caps

Fuel and Lubricants                   Freight transport                 Transporation

Parts and repairs service           Recording paper and magnetic tapes

Example two: If companies are drilling an exploration well. If you don’t know  an exploration well. Is well drilled to confirm if there’s sufficient oil and gas to be extracted

In this phase, they will need the following products and services

Drilling rig

Camp catering

Drilling bit

Drilling fluid supplies

Fuel etc

Example 03: If an oil and gas companies are production phase. That’s they bring oil and natural gas to the surface, they will  need to buy the following items and services:

Safety and consulting,

well drilling an testing,

electrical and mechanical installation and maintenance,

perforation, simulation, drill pipe and collars, safety equipment, wellhead equipment, boilers, oil field tools etc

So each stage of oil and gas projects offer different opportunities. So if you know who and what the oil and gas companies are in Mtwara there. You’ll equip yourself on what your business can do for them.

2.Knock on the door

Once you find what’s  going on the remote areas,  Then figure out what your business can do for the client.  As I told you earlier the oil and gas industry is the personal contact business, so never expect for the client to knock on your door so instead, you have to go for them. If you’re supply business approach their head office. Many oil and gas companies have their head office in Dar es salaam. Go try to sit down with purchasing manager and tell them what your business can do for them. Once you talk to procurement manager, be honest and never promise what you can’t deliver.

3.Visit  regions with oil and gas activities in Tanzania

To be honest with you,  Many oil and gas companies in Tanzania are in the exploration and production phase. So In this stage, many buying decision of products and services are made on the job site.

If you visit these companies several times you will easily get the information of what clients needs. Job site visits can also build the reputation of your business because oil companies believe that you can help them on emergency time and make delivery fast. So have a presence in Mtwara there and talk to field manager that you can help them with a particular  services or items

4.Follow Up

Never accept the “No” answer, If you visit your client today and respond that “ We have no business for you” never gives up. Thanks to him and tell him you will be back somedays.

This is important because the more you have face to face with your client, the more you build trust as result of making sales. Make follow up until you get sales or the client says “ You shouldn’t get back in our office again” otherwise you should get back to them. The oil and gas industry is a competitive industry.

To stand out in front of others you should  ensure constant presence  to the clients, This will enable you to know the existing situation  of your clients

5.Socialize with other oil and gas stakeholders In Tanzania

Here’s key on identifying opportunities in this industry.  Keep in touch with local employees who work with these multinational oil and gas members, join social groups for Tanzania’s oil and gas sector. Ask referrals for your friends. And attend oil and gas events in  Tanzania. And make sure you have high value interaction with  oil and gas stakeholders you meet.

There’s no magic formula, the business opportunity in the oil and gas sector are found through hard working,  preparation and honesty.  So if you really need  tap opportunities in the oil and gas sector in Tanzania,  you should stop doing what’s comfortable for you. And that’s staying  behind your computer screen, shooting an email to several clients and hoping  will gain a work from the oil and gas companies in Tanzania.

Instead, assess your business,go out there and meet as many  clients  as you can, follow up, and once you get a job, deliver early and on time.

        Hussein Boffu

Recent Petroleum Geoscience Graduate

Email:Hussein.Boffu@tanzaniapetroleum.com

Mobile+255655376543

 

Sababu 5 Kwanini Bei Ya Gesi Inapanda Wakati Inapatikana Nchini Na Hatua za Kuchukua Kuokoa Pesa Nyingi Kwa Kununua Gesi

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Hivi karibuni kumeibuka mjadala mkubwa kwenye mitandao ya kijamii watu wengi wakijadili swala la kupanda bei ya gesi ya  majumbani

Swala hili limepelekea kila mtanzania  kuongea kile ambacho anafikiri au  anavyojua. Kwa kuwa sekta ya mafuta na gesi asili bado ni changa hapa nchini watu wengi wamekuwa wakitoa taarifa ambazo sio sahihi kuhusu swala hili,

Kuna ambao wanaosema gesi ya kupikia tunayotumia sasa ni tofauti  kabisa na ile inayozalishwa  mtwara, kuna ambao wanaona ni bora warudi kutumia kwenye  matumizi ya nishati ya  mkaa na kuni ambazo ni hatari kwa mazingira na kiafya kuliko kuendelea kulipa gharama kubwa.

Kupitia makala hii  utajifunza  maana ya gesi tunayotumia kwa matumizi ya nyumbani,  chanzo chake na vitu gani vina sababisha bei ya gesi kupanda.

Tanzania Tuna gesi Ya Kutosha hadi Kuweza Kuanza kuiuza nchi za jirani

Ukweli ni kwamba Tanzania tumebarikiwa  gesi yenye ukubwa wa futi za ujazo trillion 57.27 . Kati ya hizo , Gesi iliyogunduliwa nchi kavu ina ukubwa wa futi za ujazo trilioni 10.17.

Gesi iliyogundulika kwenye kina kirefu cha bahari ina ukubwa wa futi za ujazo trilioni 47.08) na  utafiti bado unaendelea hivyo  kiwango hicho kinaweza kuongezeka muda wowote  ule.

Kwa afrika masharki Tunashika namba mbili tukiongozwa na Msumbiji ambao wana gesi yenye ukubwa wa futi za ujazo trillion 100

Soma Hii: How-to-start-petrol-filling-station-in-Tanzania-complete-guide

Hicho ni kiwango kikubwa cha gesi ambacho si tu kinaweza kutatatua mahitaji ya nishati nchini kama vile umeme, nishati safi ya kupikia, vile vile tunaweza kuuza nishati hii kwa nchi za jirani  hasa ukizingatia tunazungukwa na nchi ambazo zina mahitaji makubwa ya nishati kama Kenya Uganda  ambao hawana hata lita moja ya  rasilimali  gesi asilia.

Swali kubwa ambalo limekuwa likiwasumbua wengi kwa nini licha ya kuwa na gesi ya ukubwa wa futi za ujazo trillion 57  bado bei ya gesi ya majumbani bado inapanda bei. Endelea kuwa nami hadi mwisho wa makala hii utajua ni kwa nini  bei inapand na nini ufanye ili uepukane na adha hiyo

Chanzo cha Gesi ya Kupikia

Gesi ya kupikia  ambayo unatumia hapo nyumbani au hotelini,kwa lugha ya kitaalam inaitwa LIQUEFIED PETROLEUM GAS kwa kifupi tunaita LPG

Gesi ya kupikia  au LPG, huifdhiwa ikiwa katika  hali ya kimiminika  kwenye mitungi  ya ujazo tofauti ikiwa katika mgandamizo(pressure) kubwa

 

Njia Mbili Za Kutengeneza Gesi Ya Majumbani

1.Kusafisha mafuta mazito (crude oil)

Yani baada ya mafuta kuvunwa kutoka kwenye visima husafisha na  hapo tunaweza kupata diseli, petol, vilainishi(lubricant)  na  gesi ya kupikia (LPG)

Asilimi 40 tu ya gesi inayotumika majumbani hutengenezwa kwa njia hii

  1. Kusindika Gesi asilia

Karibu asilimia 60 ya gesi ya kupikia hutengenezwa kwa njia ya kusindika gesi asilia.

Kwa kuwa Tanzania tuna kiwango kidogo cha mafuta mazito (crude oil) maana yake hatujakuwa na uwezo bado wa kuzalisha gesi yetu ya kupikia kwa njia namba moja kama nilivoeleza hapo juu.

Lakini kwa kuwa tuna kiwango kikubwa cha gesi asilia maana yake tunaweza kuzalisha gesi yetu ya kupikia(LPG) nchini.

Lakini ili kuweza  kutengeneza gesi yetu ya kupikia  tunahitaji kuwa na teknologia za kisasa na pia ni gharama kubwa sana kuweza kutengeneza gesi ya kupikia kutoka kwenye gesi asilia.

Hivyo si kweli kuwa gesi  tunayotumia sasa ni tofauti na ile ya Mtwara. Kwa kuwa gesi ya mtwara ni gesi asilia ambayo huitwa METHANE, na gesi ya kupikia ni (BUTANE au PROPANE) ambyo hutengenezwa kutokana na gesi hii asilia ambayo tunayo ya kutosha hapa nchini

 

Kwnini bei gesi Inapanda Nchini

Kama ilivyo bei ya mafuta mazito (crudi oil) gesi ya kupikia majumbani(LPG) pia  hupanda au kushuka. Huu ni utaratibu wa kawaida kwenye sekta ya mafuta na gesi asilia. Yani bei ya gesi inaweza mwezi huu ikapanda baada ya mwezi mmoja ikasikia imeshuka. Kitu nachotaka uondoke nacho hapa ni kwamba,  hii si mara ya kwanza na wala haitokuwa mara ya mwisho kupanda kwa gesi ya kupikia. Huenda ikapanda zaidi ya hapa au kushuka kwa kuwa ndio nature ya sekta ya mafuta na gesi

Sababu 5 Kwanini Bei ya Mafuta Inapanda Nchini

  1. Mabadiliko ya Bei Ya Gesi kwenye soko la kimataifa

Kama wewe ni mfatiliaji mkubwa wa masuala ya gesi na mafuta hapa nchini utagundua kuwa kiwango kikubwa cha gesi asili  kama ile gesi ya pale visiwa vya songo songo, Lindi, na kule Mnazi bei Mtwara hutumika kwa kuzalishia umeme hapa nchni.

Kiwango kikubwa cha Gesi ya kupikia tunayotumia  kwa sasa huagizwa kutoka mataifa ya nje. Ambapo zabuni hutangazwa na makampuni ya mafuta nchini (oil marketing companies) hugombania zabuni izo na gesi ya kupikia huingia nchnini kwa mtindo wa kuagizwa kwa pamoja yani  Petroleum Bulk procurement….

Kwa kuwa gesi ya kupikia (LPG) ni bidhaa ya kimataifa hivyo kuna chombo maalum ambacho hupanga na kusimamia bei ya gesi ya kupikia dunia nzima. Hakuna nchi ambayo inaweza kwenda kinyume na prices zilizopangawa na chombo hicho hii ni Kwa sababu uwezo wetu wa kutengeneza gesi ya kupikia ni mdogo kuliko wao. Kwa sasa mamlaka ya kupanga bei ya  gesi ya kupikia (LPG) dunia nzima  inaitwa SAUDI ARMACO CONTRACT PRICE. Hivyo hawa wakipandisha bei ya gesi ya kupikia na Tanzania lazima bei iongezeke halikadhalika wakishusha bei.

Kwa mfano sasa bei ya gesi Kwenye soko la duni imeongeze kwa  18%  na 22% hivyo imepelekea bei ya gesi ya kupikia  katika soko la ndani kuongezeka kwa 8% na 11%

2.Mabadiliko ya Kifedha

Kwa kawaida bei ya gesi ya kupikia (LPG) hupangwa kufuatana na dola ya kimarekani, yani huuzwa kwa dola ya kimarekani kwa kila Tani.

Hivyo Kama dola ya kimarekani itakuwa imepanda thamani nchini kwetu, itaathiri bei ya gesi ya kupikia kwa watumiaji, mfano kwa sasa dola ya marekani imongezeka thamani nchini kwa hiyo lazima bei ya gesi ya kupikia ipande pia.

3Gharama za usafirishaji wa ge.si ya kupikia

Gesi ya  majumbani (LPG)hupatikana kwenye  maeneo ya uchimbaji wa mafuta na gesi asilia kwa kuwa gesi  hii hupitia maeneo mbali mbali hadi kufikia nchini kwetu, gharama za usafirishaji husababisha ongezeko la bei ya gesi ya kupikia

4.Kodi

Lakini ongezeko la kodi pia huweze kusababisha bei ya gesi ya kupikia kupanda. Kama tunavyojua lengo la wafanya biashara ni kupata faida, unapomuongezea kodi hutafuta namna ya kuongeza thamani ili apate faida. Hivyo ongezeko la kodi linaweza kusababisha kupanda kwa bei ya gesi ya kupikia

Ufumbuzi wa Kupanda kwa bei ya gesi nchini na Nini ufanye ili Ukoe Pesa nyingi kwenye Kununua gesi ya Numbani

Pamoja na kupanda kwa bei ya gesi ya kupikia bado huwezi kukwepa kutumia gesi, yani lazima ununue gesi kwa sababu zifuatazo

  • Gesi ni rafiki wa mazingira kuliko nishati ya mkaa na kuni ambazo hutoa gesi chafu ya kaboni
  • Kukoa muda

Pia hutumia muda mchache kwenye kupika na kukufanya kuwa na muda wa kutosha wa kufanya shughuli nyingine.

Hivyo basi suluhisho hapa ni kujua jinsi gani unaweza kuokoa pesa nyingi  wakati wa kutumia gesi ya kupikia.

 1.Washa jiko lako pale tu ambapo upo tayari kupika

Unandaa kila kila kitu unachohitaji kupika unakiweka tayari. Na unapowasha jiko tu unaanza kupika, hii inaokoa gesi nyingi ambayo hupotea muda ambao unakuwa  umewasha jiko huku ukisubiri kuanza kupika kwa kuwa gesi hapa hufanya kazi moja tu ambayo ni kupika

2.Epuka kutumia maji mengi wakati wa kupika

Katika sufuria ya kawaida maji huchemka katika  digrii 100 za centigredi. Maji yanapokuwa mengi kwenye sufuria hutumia muda mwingi kuchemka kufikia  digrii za centrigredi 100 hali inayopelekea kupoteza gesi nyingi

 

3.Funika Sufuria ya kupikia wakati unapika

Unapokuwa unapika jitahidi kuweka kitu ambacho kitafunika sufuria ili kuzuia  joto ambalo linakuwa linasambazwa kwenye maji lisiweze kupotea kama mvuke. Kadri mvuke unavyopotea ndivyo gesi zaidi inahitajika ili kufanya maji yachemke au chakula kiive

Kama unaswali lolote au maoni niandikie katika Hussein.Boffu@tanzaniapetroleum.com au piga simu 0655 37 6543

Pia weka email yako na jina lako la kwanza hapo chini na ujipatie kitabu cha bure cha kingereza kinachooelezea fursa zilizopo sekta ya mafuta na gesi Tanzania

Hussein Boffu

 2015 Petroleum Geoscince Graduate

 

 

 

 

Amnex Proves More Tanzania Gas, Shares Fall

Aminex CEO Jay Bhattacherjee at the wellhead of Kiliwani North well 1 which has produced since April 2016 (Photo credit: Aminex)

Aminex CEO Jay Bhattacherjee at the wellhead of Kiliwani North well 1 which has produced since April 2016 (Photo credit: Aminex)

 

UK independent Aminex said March 8 that its Ntorya-2 appraisal well in southern Tanzania has “exceeded expectations” flowing dry high quality gas at average stable rate of 17mn ft3/d (2,833 barrels of oil equivalent per day). But its share price, and that of its partner, have fallen in early trading.

 

Please see: how-to-register-your-foreign-business-in-Tanzania

Aminex CEO Jay Bhattacherjee said: “Due to a large gas influx in the reservoir section, the Ntorya-2 test clearly supports our belief that there is a considerable gas basin to be exploited in our Ruvuma onshore acreage which we are looking forward to developing.” The well, on Mtwara licence, part of the Ruvuma production sharing agreement, is being suspended for future production. Aminex is operator with 75%, alongside UK firm Solo Oil (25%).

Also Read:  5-steps-to-sell-to-oil-and-gas-companies-in-Tanzania

A month ago Aminex said the well had encountered a gross gas-bearing reservoir unit of some 51 metres with traces of oil. It now said pressure is much higher than expected. Aminex said it is updating its basin model to determine the optimal drilling depths for Ntorya-3 and for future development wells.

The Aminex-led Ruvuma PSA onshore Tanzania is near the border with northern Mozambique (Map credit: Aminex)

Despite the upbeat news, Aminex and Solo Oil’s share prices were 15-20% down on the day, with some investors arguing that Ntorya could have been in production by now. Bhattacherjee told NGW in mid-2016 he hoped that Ruvuma potentially might produce 100mn ft3/d by 2018-19. Aminex produced first gas from the Kiliwani North field further north on the Tanzanian coast in April 2016 but payments for some of its gas there were delayed.

 

Mark Smedley

3 Biggest Things Suppliers Should Do Before Going To Any Oil and gas Conference In Tanzania

 

No doubt that is rarely to stay in Tanzania for a month without hearing a single announcement about the oil and gas conferences.

As the oil and gas conferences is the best place to learn networking, meeting prospects, many suppliers are flocking to buy tickets.

As these events are expensive you need to get way more out of the oil and gas events and not waste your time. No matter what’s motivates you to attend the oil and gas conferences. But if you put the following into considerations, you’ll make connections that will help drive your business forward.

Also Read: how-to-organize-oil-and-gas-event-in-tanzania-and-make-millions

1.Do your homework

Researching the companies, that’s going to be there and decide which one you can add value.  You should know about the company, their operation. Be knowledgable about the companies that’re going to be there.

Figure out who they are and what they really do. Visit “about us page”, read their brochure and look at their latest news to see what’s new in their company. Also Find out who will be the keynote speakers

2.Make a target list

It has been said that the more you focus to serve everyone out there the more you the more miss out a ton of clients.

The biggest mistake you can ever make is to think that you should do business with all companies. But you should target a list of companies that you would like to work with. So narrow your target of about 4 to 5 companies and have meaningful interaction. This save you time and energy

3.High value Interaction

Once you meet with people in the industry events, show your passion about the industry and prove your expertise. Never go there exchange business card and leave.

Instead offer high value interactions. Why is this important? Because you want this person to remember you or even keep your face in their mind when next time you call for a meeting.

Have you attended any oil and gas conferences or events in Tanzania? Please comments below, the things you always do before going to such events.

How To Start Solar Power Business in Tanzania—-Complete Guide

 

In Tanzania as emerging market there are huge market for solar power business.

To be completely transparent, the reliable and affordable power supply is the biggest problem in Tanzania. With this mobile phone revolution in Tanzania.

Many people have a mobile phone but, they should walk long distance to charge their mobile phone. As I write this article at night, I am using power from the solar panel to run my laptop.

With the biggest power supply problem in Tanzania, Some small shops specifically in rural areas close so early because they don’t have electricity.

What if you start your solar business in Tanzania and help this people operate till night while you make big cash in return.

From business perspective, the business that depends on people’s need will grow by leap and bound. That’s why starting your own solar business is the wise decision.

Solar power is business for everybody, even if you don’t have a cent in your pocket right now, read this article all the way to the end and you will realize how easily solar power can be done in Tanzania.

Tanzania power supply is the substantial challenge
The market for this business seems to be endless in Tanzania because of serious electricity problem in our country.1.solar_power_business_2

Imagine this, Tanzanian population is approximately 50 millions. But only 42 percent of households have access to electricity with a wide gap, 40 percent in urban and only 2 percent of rural household have access to electricity.

According to the recently published report of Africa progress Panel that Kofi Annan a former Secretary-General of United nation is the chair of such panel reveals that, It would take average Tanzanian 8 years as much as electricity average American consumes in one month.

Even our government is selling this idea to people. Government wants all the health center dispensaries that are not connected to the grid country wide to be provided with solar power.

Also to make this more attractive option and affordable to citizens, the government has removed value added tax (VAT) and remove import tax to all solar components, so is the best time to start the business because when government now comes in, they will look for YOU

Why Solar Power Is The profitable business in Tanzania
In reality solar will remain to be lucrative business in Tanzania even in bad economy because of the following reasons

1.The Rising demand for electricity
The rising demand for electricity in Tanzania is growing at alarming rates, because of the increase in population, industrialization, and booming extractives activities of mineral and natural gas.

Tanzania’s total installation capacity is 1583 Megawatts, and the electrification rate is 15.5 percent a year, Tanzania aims to boost power generation capacity to 10,000 megawatts by 2025.

In reality, The transmission line  will never cover many areas in our country. So the cheap, efficient solar electrification plan should be introduced to lift Tanzanian from the darkness in the short period of time. That’s where you come in with your solar business and grabs this opportunity in Tanzania.
.

2.Solar power is the cost-effective plan and can reach many Tanzanian population in short amount of time

Technically speaking, Many rural household population spend more money in purchasing fuel like Charcoal, kerosene, diesel, as the many Tanzanian own mobile phones and they use it in regular basis for business purpose, to chat with friends, family, ,
But you they can save a lot of money because once the solar power unit is set up you can enjoy free electricity for a very long time.

3.The desire to clean energy that are environment friendly
In reality, most people still depend on the expensive and hazardous fuel such as diesel, Tanzania rural population relies on kerosene, firewood a charcoal which pollutes household air.

So unlikely fuels like Kerosene, firewood, solar electricity prove to be better options.It causes no pollution and doesn’t harm environment.

 Three Ways To Start Solar Power Business In Tanzania And Make Money
Anybody can start a solar business. Since there are multiple ways you can enter the solar market in Tanzania.
1.Become Solar Power Companies Associate In Tanzania
If you are keen to make Tanzanian go to solar but you have nothing to invest in this business, associate with solar companies is the way to go.

So you will introduce the solar products of the company you present to the  customers and get a commission for each purchase being made.

The good news is you don’t have to be a veteran technician to go into this business, even if you’ve  little knowledge about solar power, the company you present its products will give you all information to sell solar power solutions to people.

So approach solar power companies in Tanzania and get paid based on your agreement. To make more money, pick reputable companies that have quality solar products that customer will be confident to buy.
2.Become distributor
There a lot of manufacturer of solar products such as panel, solar batteries, charge controller and solar inverters, To go to this avenue it requires large start up capital, because you will need to import solar related items from major manufacturers abroad to Tanzania.
China is the among of greatest manufacture of solar products, you can buy direct from manufacture and resell products in Tanzania

3 Sell solar products
You buy solar related products from distributor and you resell them to final users. In this type of business model you don’t keep a stock because you buy small quantity of solar items. It doesn’t require large start up capital to get started. You can start with the amount you’re comfortable with, and grow your business day by day.
4 Become a solar a contractor
Your job will be installing solar power systems for homes, firms or business or even government agencies.
Also solar contractor earns money by doing maintenance on the solar system. Solar items last longer but repair and maintenance are vital after sometimes

Tips To Succeed In This Business In Tanzania.

Figure who will exactly Buy from You
Target the right customer is vital in the success of any business. In the solar power business in Tanzania, you can have 3 groups of customer. Here I will explain each one and you will find your fit

  • Tanzanian rural populations who have no access to electricity
  • Tanzanians who already connected to the grid but they’re unhappy with frequently cut off electricity that ruin their business and want to cut the cost of high electricity bills. Many cement industries in Tanzania want to reduce operation cost. So they will opt for cheap solar power supply.
  • Government agencies and NGO

These 3 groups of customer are happy to buy from because solar power saves them a lot of money and makes their life easier and fun.

Solar business will survive even in the recession or bad economy when every business goes into bankruptcy. Because nobody wants to stay in darkness, Nobody wants to walk longer distance to charge their mobile phones.

Can you do a favor? If you have any questions/suggestion shoot me an email at Hussein.boffu@tanzaniapetroleum.com. or  +255655376543

And I will be glad to answer you

Why It’s Important For Oil Companies To Do Reservoir Modelling and Simulation Part 3

 

RENATUS MAHUYU

Msc Oil and NaturalGas Engineering

China UNIVERSITY OF GEOSCIENCES-WUHAN CHINA.

raymahuyu@yahoo.com

Phone number /WhatsApp: +8613006172786

www.renatusmahuyu.blogspot.com

 

This article addresses the following topics

  • How a reservoir model is constructed
  • Why we carry out reservoirmodelling and simulation

 

How a reservoir model is Constructed

Different data such as 3D/4D seismic data, well logging data, structure map, well data, core analysis data, are gathered by different oil companies during exploration to production time and all this data are combined together to create a static 3D MODEL to get a deep understanding of the reservoir structure.

 

READ:why-its-important-for-oil-companies-to-do-reservoir-modeling-and-simulation-part1

 

A 3D static model is then converted to a 3D dynamic model to allow fluid flow in a porous medium for simulation purpose to predict future behavior of the reservoir.

 

Seismic to simulation

Constructing a reservoir models is done from seismic to simulation. the model should accurately reflect seismic data, well data, well log data and production data.

Key techniques used in the process include integrated petrophysics and rock physics to determine the range of lithotypes and rock properties,

 

READ ALSO: Why-its-important-for-oil-companies-to-do-reservoir-modelling-and-simulation-part-2

Whyreservoir modelling and simulation

Petroleum experts need to know how the formation (rocks) are rearranged so as to be able to know where to drill a well for production or injection for the purpose of monitoring and managing production.

 

Hence Reservoir Engineers uses Simulationsbecause: Itis an experimental tool that allows conduction of many experimental test without exposure to risk, it allows assumptions by imitation of the few real worlds factors. We use simulation if the real system being designed does not exist or its very hard to engage.

As we have seen in the exploration stage most exploration companies invest a lot of funds just to find oil and gas.

 

We use reservoir modelling and simulation because for the informationobtained from a newly discovered field are very few compared to the fieldsize.

So, the information obtained from the drilled well, seismic data, and logging of the few drilled wells has to be integrated accurately in order to construct a global picture of the reservoir.

 

A reservoir simulation model built with this few information, will be improved with time as field development proceeds since more information will be obtained as the field is developed. Such information will continue to improve the model’s accuracy by carrying out processes like historical matching.

 

Once a model is accurate enough, A reservoir Engineer will be able to run different numerical simulation scenarios to optimize the reservoir performance, field plan and reservoir management

 

In summary, Uses/Advantages of doing modelling and simulation

  • It helps to point out a best location to place a well to avoid risk of drilling well randomly,

so, a reserve model is built and run to give assumption of the area where is best to drill a Well, this is done through algorithmic methods called Stochastic method and Deterministic methods (which will be discussed later on another article to come)

  • Reservoir modelling and simulation helps to forecast production, which helps a company to know life time of a reservoir, plan time for secondary or tertiary recovery method only if the remained oil/gas is economical.
  • Its helps to know and calculate the remained oil or gas in place, this will also give a company a power to decide on how to manage production. So, without reservoir simulation, it is easy for the oil company to abandon a reservoir without knowing if there is still economical oil or gas left in the reservoir.
  • Reservoir simulation and modelling makes it simple to calculate the economic viability of oil/gas reserves by forecasting the cumulative oil or gas recovery processes over time and calculating it with the NPV of oil/Gas at a particular time.

 

Reservoir modelling and simulation studies turned out to be a powerful tool whichacts as alaboratory designed for the purpose of conducting different experiment tests on different scenarios set by a reservoir engineer.

From theseconclusive definitions and explanations, we see the essence of reservoir models and simulators to oil companies.

Reservoir modelling and simulation answers all of the below questions.

How do they know if discovered oil/gas is economical or not?

How much is it there?

For how long will it be produced?

How sure are oil companies on where to drill in a field?

How do the oil companies reduce risk from guessing where to drill?

How to Forecast oil/gas price?

 

It is therefore an essential tool for oil companies for reservoir management.

 

 

Thank you

For further enquire, questions and suggestion please feel free to contact me through provided contacts and on my blog page www.renatusmahuyu.blogspot.com

 

 

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3 Ways Oil and Gas Companies In Tanzania Can Save Millions In their Current Operations

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Times are hard now. Not only in Tanzania but all over the world, oil prices drop are burning oil and gas companies. The shortest route for oil and gas operators to deal with a decline in oil price is cutting operational cost by doing the following.

  • Shut down the projects
  • Cutting staff
  • Selling assets

But guess what? there are more options that can help these oil and gas companies save millions when purchasing, valves, drilling chemicals, safety materials, pipes, fittings or any other supplies

1.Involve your employees
With your ideal procurement department, you can easily bypass the users in the field, so let’s consider you look for Pipes, instead of relying solely on your procurement department, involve and get the input from the users or engineers on the field as well, because their input on quality and prices can help you to get the right and at the good rates. Because some of your employees might have experience in pipe sector so can be resourceful in the sourcing process.
2.Give top consideration on durability of the materials
As cutting cost is your ultimate goal, so you can be tempted with Gloves or safety boats that come with great discounts. While these save short term financial challenges but result to long-term financial pain, because after a short period of time you have to order another item. And you can resolve these problems by working with reputable oilfield equipment suppliers in Tanzania.

3.Work with Local dealers
This is not only will help your meet the local content goals but save you a lot of money than sourcing oilfield equipment from international dealers that can charge you higher because of the increasing shipping costs. There a lot a manufacture of pipes, valves, and other oil and gas field supplies in Tanzania that meet international standard. So no needs to look far when you can satisfy all of your supplies needs in Tanzania while you save a huge cash.

Any questions or suggestion? If you’ve any questions or suggestions do not hesitate to write me at Hussein.boffu@tanzaniapetroleum.com and I will be glad to answer you.

2 Factors To Consider Before Buying Oil and Gas Equipment and Materials in Tanzania

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There are certain things in life that cannot be compromised such as the quality of oil and gas tools, equipment and material particularly in our country(Tanzania) where this is fresh industry. Negligence in this aspect can result in irreversible damage. Therefore pay full attention to the quality of  the items. Here are 3 aspects to consider when buying oil and gas equipment, tools and materials

Purchase from trusted supplier

Oil and gas equipments must be purchased from a standard supplier. The reputation  of supplier  determines the quality of the  materials and items

Avoid buying based from price.

The lower the cost, the poorer the quality. Investing in crucial products is not waste of money. The internet is also a useful tool in locating quality supplier in Tanzania. Also ensure the supplier is registered with BRELA(An agency responsible for business and company registration in Tanzania. And they licensed for the trade.

Hussein Boffu

Founder  Tanzania oil and gas procurement/logistic/supply chain Network

Email: Hussein.boffu@tanzaniapetroleum .com

Mobile+255655376543

How To Organize Oil and Gas Event In Tanzania and Make Millions

Oil and gas event is the profitable business in Tanzania. Despite the solid return this business generates, only one local entrepreneur have been participating in organizing oil and gas event in Tanzania.

The lowest price of the last oil and gas event I attended in Tanzania was Usd 300 per ticket.

If you’re running oil and gas events in Tanzania You’re confident to make millions of shillings when you’re going to charge your event at 200Usd, 300usd 400 Usd 500 usd 600usd per ticket

Even international oil companies sponsors may be willing to support your event if they can get good publicity and generate goodwill.

Why Hosting Oil and Gas Event Is The Fantastic Business In Tanzania
To be completely transparent, our industry is operating in challenging business environment, the local content development, capacity building to local suppliers, small business owner and participation of our inexperienced youth to work in the oil and gas industry is substantial challenges that require serious discussion with stakeholders in the industry.Not to mention f fall and rise of crude oil price in the global market can lead new opportunity and challenge as well. This makes the high demand of oil and gas event business because people need to be aware of the current trend in Tanzania’s oil and gas and share their views.

But no doubt, the oil, and gas sector is infancy stage in Tanzania, In this regards, many Tanzanians are keen to keep updated about all the on-going in the oil and gas industry. In reality, it can be a little bit frustrating to gather oil and gas information by oneself. Because It’s time taking some time is difficult to get some important oil and gas information on your own.

 

Also, they value connections they get by attending oil and gas events. Because many of these industry events are open to all industry professionals and stakeholders
They attend to uncover opportunities emerging in the Tanzania’s oil and gas sectors, some people attend to make new contact for making career change

But also, Tanzanians, international individuals, and companies believe oil and gas events are ideal to meet new clients, vendors, and partners.

So you can organize your oil and gas event in Tanzania and make handsome money as well.
Oil and gas event is the big dollar business and can make one billionaire if you plan well your event and you know how to play your game very smart.

So hosting oil and gas events is your chance to make real money from the oil and gas sector in Tanzania even in bad economy. But it needs a lot more preparation.So you can sell more tickets if you do it in right way. But it is not one man thing as it needs to be carefully planned.

Would you love to run your own oil and gas event for people in Tanzania? Here are the tips.
TIPS TO ORGANIZE PROFITABLE OIL AND GAS EVENTS IN TANZANIA

1.Find the right venue
The location plays important role when choosing the venue. It must be easily reachable, It should have sufficient car parking and easy access by public transport.In other words, location should be attractive and prestigious to attendees.

2.Timing
Schedule your oil and gas event when most people will be able to attend.The best time to host your oil and gas event is at the early months of the year or towards the end of the year because at this time people are free to spend their money.

3.Pick great industry speakers
Look for the popularity of the speakers, are they have physical experience in the oil and gas industry? The professional speakers will increase the reputation of your events and get more participants.

4.Budget
Plan the budget for hosting your event including entry fee, drinks food, advert company sponsorship etc

Final Words
Even in the bad economy where many businesses fail, an employee gets fired. But still Tanzanian individual and company needs to network, grab new opportunities in this industry, get clients, partners or even make career change into oil and gas industry

You can lose money and ruin your reputation in running unsuccessful event but well-organized oil and gas event raise you billions of shillings beyond your expectation

 

 

 

Hussein Boffu,

Graduate Petroleum Geoscience
Mobile: +255655376543 Email: Hussein.Boffu@tanzaniapetroleum.com