The Shocking Reasons Why Tanzanian Companies are not Getting Tenders In The Oil and Gas Sector

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Tanzania is well known natural gas hotspot. With government estimates over 57 trillion cubic feet of natural gas deposits. International individual and companies are moving in to tap business opportunities.

This living testimony that there’s great wealth in Tanzania’s oil and gas sector.

Government promotes local content policy.And require international oil and gas companies to procure goods and services rendered by local firms.

But the harsh truth is most of the local companies are not getting work from international oil and gas companies.

And they feel overwhelmed and frustrated when no any contract forthcoming

You might be wondering why does all this happen? That’s where I come in to enlighten you after digging deep in this industry

This article explains why these organizations fail and how to overcome such challenges. So as local services provider get more work in this industry and increase their company reputation

#1:Lack of financial and expertise to execute oil and gas projects and services

In fact, most oil and gas services require substantial capital to get things right.

For example, clients in the oil industry might contract Tanzania company to offer the safety boots that cost USD 600000.

But the problem is you need to pay supplier all that money before you send these products to clients. Because many local firms have a limited budget.

They found themselves  miss out the work from International company

#2:Shortage of skilled__Local workforce
The shortage of local manpower with skill and experiences in this industry is the substantial challenge keep down local content policy.

Read:     Why Most Tanzanians Struggling With Finding a Jobs In The Oil and Gas

The government realizes such obstacle by sending nationals abroad for oil and gas courses. For this reasons many Tanzanian oil and gas services providers do not win tender from the oil and gas companies.

To get work from international oil companies. You need to demonstrate your capabilities until they satisfied you are the right person for that project.

The local firm they are not able to demonstrate their capability on how they can render that services. Because international oil and gas companies want quality services.
#3:Overlooking tendering criteria in the oil and gas sector

I’m not writing this to make our local insiders feel stupid. But many local firms they do not win the tender in this industry because  do not study even understanding tendering process. This industry wants to offer tender in right way.

If the oil and gas tendering authority need you to submit two hard copies one electronic, one in color and in black. You need to do that.

The positive approach for Tanzanian Company To Win More Tender In Oil and Gas Industry

#1:Partnership with international suppliers is the way to go
To stand out, Tanzanian companies should go into partnership with foreign companies that have expertise and capital to get oil and gas projects done.

These foreign companies have been in the oil industry business for years and they have made a huge profit before.So they have the technical know-how and financial capacity to render such services.

This will help the local firm to make the most into oil and gas tender . Most importantly promote local content through skills transfer.

#2:Tanzania company must compete with the best world
Multinational oil company wants to procure quality products and services.They look for quality no matter where will find them in the world.

They will go and contract them. So the local company should not take advantage of local content. They should constantly demonstrate that are good as International competition.

They should concentrate on delivering quality products. Because local content does not mean awarding contract when you deliver low-grade products that do not meet international oil companies needs

#3:Concentrate on tendering criteria
For the local company to reach mountaintop must understand the tendering criteria. So if the oil and gas tendering authority want you to submit it on this date, in this format with this information. Do that, Otherwise, you’ll burst at the end

Stop Making Excuse Now
Now you’ve all reasons the local company does not win the tender in the oil and industry. Go out there and work on these.

I don’t want to baby you  you’ll make it overnight. But in the long term, you’ll stand out from many people that are whining that the government is not doing well to promote local content.

Hussein Boffu

Recent  Petroleum Geosceinece Graduate

Hussein.Boffu@Tanzaniapetroleum.com

0655 37 65 43

The Main Area Of Investment In Oil and Gas Sector In Tanzania

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If you look deep into Tanzania’s oil and gas sector, investment and business opportunities are immense. Sadly, most of us (Tanzanians) don’t know how to access such opportunities.

Is not our fault. The reasons might be this is  fresh industry  in our country.

So,In Today’s post, I expose you the 11 areas of Investment In Tanzanian oil and gas sector.And I don’t want to baby you. These are the capital intensive investment. But It yields strong return if you sustain. You can make billions of dollars net profit.

The main areas of investments within the oil and gas industry in Tanzania are

  1. Exploration drilling and production
  2. Construction and fabrication
  3. Engineering and research
  4. Installation piping and maintenance
  5. Drilling fluid and chemical supply
  6. Equipment supply
  7. Legal and legislation services
  8. Recruitment personnel services
  9. Training/health
  10. IT/communication services
  11. Environment and social training

 

Hussein Boffu

0655 37 6543

Hussein.Boffu@Tanzaniapetroleum.com

Solo Oil looks to Tanzania to deliver results

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Tanzania offers the best chance for Solo Oil to return value to the business the company said, as it reported a wider loss in 2015.

The African focused exploration firm said costs rose compared to 2014 levels as it reported a pretax loss of £2.8million in 2015 compared to the £1.8million loss in the previous year as finance costs, provisions and impairments all increased. Solo Oil made no revenue in either year.

Impairments amounted to £875,000 in 2015, up from £400,000 in 2014, whilst finance costs increased to £386,000 from £84,000. Provisions against financial instruments were higher at £606,000, compared to £261,000.

“The company’s holdings in the Kiliwani North Development licence (KDNL) and its 25% stake in the Ruvuma PSA continue to represent the most significant investments the company has made and their further development is being actively pursued,” said Solo Chairman Neil Ritson. Appraisal drilling of the Ntorya gas condensate discovery will potentially unlock substantial additional value, whilst the KNDL gas production will lead to revenues in the coming months he added.

“The Horse Hill-1 well has added significant additional value to the company, containing both a commercial conventional Portland Sandstone discovery and a major new play in the Kimmeridge Limestones that has very significant potential,” he added.

Why Most Tanzanians Struggling With Finding a Jobs In The Oil and Gas

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Tanzania’s oil and gas is the hot talking point now. Why this petroleum sector so popular anyway?

Because landing a job in this field offer you high rewarding position that helps you make the most of your talents and life. That’s why many people are keen on dive into the sector.

In the recent trends shows that 2 out of 10 Tanzanians expect to get direct employment in the oil and gas. And 4 out 10 citizens hoping that major oil and gas companies will hire their sons or daughters.

This represents that Tanzanians expects oil and gas stands to create 4 million jobs

Most importantly, Tanzanians are flocking into local and foreign universities to get the oil and gas related courses.
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Many Tanzanians have been sent abroad for oil and gas related studies.

This living testimony many Tanzanians are keen on entering this amazingly, exciting oil and gas market

The simple truth is that people know the substantial reward of working in this booming industry you can’t find in any other specialization.

High salaries. Overseas trips. And is the best industry for career development as you get tons of training along the way.
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In fact, Tanzania’s oil and gas is increasingly crowded with the people who want to get in. And it’s indefensible that once competition intensifies will be more challenging to get started for them.

To stand out, most people want to join the oil and gas sector at alarming rates.

The sad reality is that most of these Tanzanians cannot find jobs in this industry. Oil companies they contacted take longer to respond. They are jobless and just wondering how the oil and gas impact their lives. Why does all that happen?

That’s the reason fueled me to write this article to enlighten many Tanzanians interesting in this industry?

This articles show you a roadmap and clear up misconception that most of us have about landing jobs in this sector.

That doesn’t mean I’m good at getting them. But I want to share my experiences and what I learn in such sector.

I know the feeling because I have been there. But this tips will change situation if you’re willing

Here’s the piece of pieces of advice for anybody interested in this lucrative industry. Let take them one by one.

Experiences count a lot than academic certificate
Inexperience is the major reasons Tanzanians never find jobs in the oil and gas sector. Like in any other sector employer want an employee with prior relevant experiences.

Especially in this tough economy no business want to hire someone with high academic qualification but zero work experience—-It cost them a huge cash to train you from scratch.

The situation gets even worse in Tanzania since we are in the early phase of development and major gas discoveries found deep water.

That means only specialized workforces are really needed to get things right. So there’re limited jobs opportunities for inexperienced personnel

The common misconception most of us (Tanzanians) is believing that academic certificate for oil and gas courses is the ticket for a job interview in this industry. That’s untrue.

This is widely myth for many Tanzanians that, to land the oil and gas jobs. Go to university. Take oil and gas related courses. And the oil and gas company will hire you.

The simple truth is that oil industry wants academic qualification plus experiences . No matter what degree you have, the oil and gas companies hire everyone—from welders, securities, engineer, IT human resources. Whatever the profession you have told them they find place best fit you.

Let me be totally clear.

If you have bachelors’ degree in petroleum engineering but you lack work experience. And somebody else with bachelor in electrical engineering but has some experiences.

And you apply for the same position. Sure,Oil companies pick up the guy with bachelor in electrical engineering

How do you get experiences In This industry
How Tanzanians gain experiences in this field when nobody want to hire them in the first place?

Is the popular question I get every now?

But listen up. Because here’s the path of less resistance

An easy route to gain experiences in this sector then tries internship. Oil companies have opportunities for interns.

The cool things are that working as an intern makes you gain a lot of experiences that might benefit you in the long run.

Even they will not pay you. Go and work for free. In that manner, you stand many chances of landing jobs in this industry.

I’m not saying this to make you feel your academic certificate is useless. But in oil and gas, only experiences can create economic value and get paid for it.

I see many Tanzanians. Grab their academic certificate. walking about town, Knocking Oil companies doors. And they say “Hey I am looking for internship” Then, they go.

Technically speaking, that is not the best approach to ask for internship opportunities in this sector. Instead of saying “Hey I am looking for internship”

Tell them what exactly do you want? What are you really looking for? I argue you to do that because this sector wants to help people in the right way.

So the more clear you’re  about what you want the easier for them to find a place for you.

Take note the keyword in this article is EXPERIENCE. If you’re looking at career path in the oil and gas sector try to gain some experiences.

I want you to know that only one thing stands to help you immensely.

Are You Struggling With finding a Job in the Oil and Gas
I would suggest that you should do whatever it takes to gain some experience.

But also you should take a time to learn another segment of the industry like midstream where things like pipeline are hiring right now.

And be patience and know that it might take some times to get things right.

Total Acquires Major Oil and Gas Assets Across East Africa

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French oil supermajor Total SA (NYSE:TOT) has acquired oil and gas installations in east Africa for an undisclosed amount, covering assets in Kenya, Uganda and Tanzania.

The major acquisitions reportedly are in line with Total’s diversification policy, which focuses on building up logistics at a time when cost-profit equations have rendered extraction less attractive.

The deal to acquire assets belonging to Gulf Africa Petroleum (GAPCO) includes two logistical terminals, one in Mombasa, Kenya, and the other in Dar es Salaam, Tanzania. The deal also gives total a network of 100 gas stations in the region.

The deal still has to be approved by the authorities of Kenya, Tanzania and Uganda.

“This acquisition is in line with Total’s growth strategy for the distribution of petroleum products and services in Africa, which aims at expanding in fast-growing regions while maintaining high profitability,” Momar Nguer, president of Total Marketing & Services, was quoted as saying.

A company spokesperson also noted: “The acquisition of these assets, which are complementary to Total’s existing operations in Kenya, Uganda and Tanzania, will strengthen Total’s logistics in the region and significantly accelerate the growth of our service station network, particularly in Tanzania, while leveraging the Total brand.”

Gapco is a holding company incorporated in Mauritius with operating subsidiaries in Kenya, Uganda and Tanzania. Reliance Industries Ltd (RIL) has sold its 76% stake in GAPCO to Total. According to Reliance, GAPCO now operates 108 retail outlets and owns 260,000 kilo liters of storage capacity.

Total SA’s stock dropped 0.79% or $0.39 on 31 May, reaching $48.9 per share. The company’s shares are down 3.475 since October last year.

SOURCE

How Tanzanian oil and gas Entrepreneurs can make money and survive the Low Oil Prices

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In response to the oil and gas boom. Some Tanzanian entrepreneurs have built their business by offering products and services  __ such as human resources , safety equipment, supply, and logistics, accommodation , IT and telecommunication services__to the oil and gas companies  such as  Maurel et prom, Statoil  BG Group.

And they reaped a substantial reward,two years prior to declining in oil prices.

But times are hard now. The low oil price is biting. International Oil companies shut down projects . And there’s Slow down oil and gas activities in Tanzania and beyond. So, Fewer clients . Business is lower. And their profits are squeezed.
The drop in oil prices since June 2014 from over $100 barrel to $ 45 today is hurting many local businesses.
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The oil price going down the drain and this present one of the worst oil price downturn in the recent history

The harsh truth is that nobody knows exactly when the price picks up again. But most economists agree that the road to recovery will be longer and hard.

Read:Give Me 5 Minutes And I’ll Show You How To Make The Most In The Oil and Gas Opportunities In Tanzania

Feeling down because of the bad oil prices? Don’t panic . Oil price downturn comes and go. And that’s the part of the petroleum industry cycle.

Seriously, I know you love your business. And you don’t want to go back being restricted with month salary again.

So, how do local entrepreneurs keep their business alive during the low oil price? How do you survive the low oil prices? How do you make money?

Read on to find how?

Diversifying Business’s clients
The bad price has changed the entire oil and gas market at a frenetic pace. To reap incredible result, should respond to the market condition and service other industries.

If you were recruiting local workforce for oil and gas sector.

You can offer the same services to the telecommunication, marine perhaps aviation industries.

Flexibility is the mark of successful entrepreneurs. never be rigid.

Fix problems in the downstream segment of the industry
Most Tanzanians investors have been offering products and services to the upstream sector of the industry for some time now. Why? because they had all money.

But that’s not for you. Upstream operators have nothing to do with your products or services now.

The whole east Africa region possesses only two oil rigs. So what business will listen to your products or solution?
To stay in the business line, then solve the problem in the downstream sector__ Downstream operators are making huge cash access benefit weak oil prices.

To stand out in the oil and gas market, you products or services must fix an issue in the downstream.

Downstream operators represent things like transportation, marketing, and selling of oil and gas market. So   oil pipeline are booming now

Positive attitude is the critical to survive
In the oil price downturn, people loses jobs. People create jobs. Companies make a huge fortune. Companies go into bankrupt. All in the oil price slump.

So spending the whole day wondering how the prices affecting your business. You’re not helping yourself. Instead .you diminish your creativity and productivity. You must have a positive mindset.

The right attitude helps you to think on how to do to come out ahead. And enables you to fight, work hard and come up with awesome ideas that bring incredible result.

See the weak prices as opportunities and not a problem. In that manner, You’ll be amazing  with the positive result you get.

Surviving is all up to You

Are you going to pay attention and put to use information given to you in this article or you’re going out there and winning how the business is hard in the period of low oil prices.?  Surviving in the current atmosphere is easier than you think. Go out there and make It happen.You’ll thank me later.

 

Want to make the most in the opportunities in oil and gas in Tanzania? Enter your email in the above black box and  Grab our free guide report.

Hussein Boffu

0655 376543

Hussein.boffu@tanzaniapetroleum.com

Give Me 5 Minutes And I’ll Show You How To Make The Most In The Oil and Gas Opportunities In Tanzania

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Do you passionate about working in the industry that pays a starting salary ranges from Tzs 82,950,000 to Tzs 90,300,000 a year
Are you wondering how to start oil and gas business and make endless money annually? Uncertain where to go for oil and gas training in Tanzania.
Want to join the Tanzania’s oil and gas but unsure where to begin?

If the answer to any above questions is “yes”. then, listen up. Because this is important:

I’ve prepared a free ebook report that exposes you to the oil and opportunities in Tanzania.An Ebook that shows you a road map. And point you to make the most in both jobs and business opportunities in Tanzania’s petroleum industry.

No matter who you’re, your status/age, still you can reap many rewards from such booming industry. Even you’ve background unrelated to oil and gas sector. This ebook will enlighten you.

We live in the richest country Surrounded by abundant petroleum resources.Your job is to get your fair share.

Want to benefit from the oil and gas boom in Tanzania
If you’re sure you want to benefit from the oil and gas sector in Tanzania. Grab a free copy of our ebook. Enter your first name and email address  in the above black box . And Get an Ebook for free

Something In Pipeline- Who Would be the early birds In Uganda-Tanzania Oil Export Pipeline

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A few weeks ago , we heard lots of talks about the viable routes for Ugandan crude oil export pipeline. And it was the hot talking point in Tanzania’s petroleum industry, East Africa perhaps entire world.

Thankfully, Uganda picks Tanzania rather than Kenya. And I’ve strong feeling you’re happy with such achievement. Right?. Seriously,  I’m thrilled, too.

But the great question lingered in mind. Who will be the early birds in this project.?

Sound Confusing? Let me clarify.

Early birds are people who take early advantages of a situation. They have eagle eyes to notices opportunity even it’s kept under wrap. And grabs it at an alarming rate.

But wait.. Something in pipeline. Guess what? Jobs and business opportunities

Do You want to be the early bird? If so, Listen up. Here’s a deal ,for Investors and Job seekers

Investment In Oil Pipeline
            Participatory environmental and social monitoring.
This is an opportunity to inform local members about environmental and social management during pipeline construction
So what I’m talking about? Just keep reading you’ll find out

The easy route to make huge Cash In Tanzania’s gas industry simply fix problems
The 1120-km pipeline crosses various landscapes and ecosystem. Most importantly, the pipeline passes through remotely located areas in which Local communities are dependent on specific ecosystem and Culture.

The proposed pipeline moves through Biharamulo Games reserves, river Kagera in Uganda and Pangani river .Many affected communities depend heavily on fishing and agriculture.

Regarding instant changes and lack of awareness. Local member might feel that the project would ruin their live hood even contribute to the poverty.

And that’s where you come in and make huge cash through consultation and engagement program undertaken through.

  1. You inform community members about the potential benefit and impact of the projects .
  2.  consulting with local communities their environment concerns about oil pipeline operation and how they can overcome
  3. Ensuring Communities have clear understanding of the projects and how it’ll impacts their lives
  4. Ensuring locals get regular information on social and environment performance of the projects.

The cool thing is, even major Oil companies that are engaging in the projects are interesting with such good practices, as they impact their business. I assure you they’ll partner with you in addressing such challenges

As you involve the local community in overall environmental and social aspect of pipeline construction. You build trust with local members and you address the wrong perception on impact of the pipeline.

Oil Pipeline Construction Jobs opportunities
As many of you know, the oil price is going down drain. Upstream Oil companies are struggling.

They cut costs. Sadly, many Oil and gas employees are kicked out of the companies. And they’ve to find an alternative source of income. 

I know the feeling. And I’ve been there.

Even so, petroleum exploration companies would not listen to you right away. They’re hurting in response to oil price drop.

So, if you’re strategy career in Tanzania’s oil and gas industry. Petroleum pipeline industries are booming.
The oil pipeline projects will create over 15000 employees. But how do you find such jobs?

Here’re few tips
Stay up to dated with the latest news in oil and gas sector.
Information is a power of you’ve you informed. Otherwise, you deformed. Knowing the trend in the industries you stand much chance of making cut in the interview

Contacts
Find who to contact, Some oil and gas jobs are never advertised anywhere and is filled because someone who know someone else. Don’t underestimate the power of network.

The more people you know, the more you move closer towards the jobs.

If you’re wondering what kinds of jobs are in the oil pipeline. Here’re some of them.

Petroleum Pipeliner Jobs.

You’ll be responsible for maintenance, repair, and laying pipe

Line Walkers jobs.

Involve detecting leakage of oil in the section of pipes. It requires problem-solving capability
Pipeline Inspector jobs:

Your main duty will be inspecting drilling and casing pipe using optical equipment and locating cracks .
Pipeline supervisor :

You’ll be a coordinator of all workers in installation of pipe valves pipeline

Are you want to be the early bird in the oil and gas in Tanzania
If  so, what are you waiting for? Tanzania oil and gas is a money making  industry. Got out there.Make it happen and get your fair share.

I’d love to know your thought, write or call me and I’ll respond shortly

                               Hussein Boffu

                              Graduates In Petroleum Geosciences

                        0655 37 65 43

                                    Hussein.boffu@tanzaniapetroleum.com

Kijana Yunus Mtopa Ajinyakulia Kitita Cha Dola Elfu 5 Za Statoil Tanznia

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Mshindi wa Shindano la Mashujaa wa Kesho lilihusisha vijana wenye umri kati ya miaka 18 na 25 kutoka mikoa ya Mtwara na Lindi, Yunus Omary Mtopa, akionekana ni mwenye furaha sana baada ya kujinyakulia kitita cha dola elfu 5, kwa kuonekana wazo lake la Biashara ya Miwa kuwa bora zaidi ya wenzake. Hafla ya shindano hilo ilifanyika mwishoni mwa wiki iliyopita, katika Hoteli ya Hyatt Regency, Jijini Dar es salaam.
 
Mwaka huu shindano hili lilivutia vijana zaidi ya 400 ambao waliwasilisha mawazo ya biashara zao zinazolenga sekta mbalimbali za uchumi kama kilimo, ufugaji, mawasiliano, na biashara nyingine ndogondogo. Vijana waliruhusiwa kushiriki mmoja mmoja au hata kuunda vikundi vya watu wawili mpaka watatu.
Jaji Mkuu katika Shindano la Mashujaa wa Kesho lilihusisha vijana wenye umri kati ya miaka 18 na 25 kutoka mikoa ya Mtwara na Lindi, Dkt. Neema Muro, akitoa maelezo mafupi ya washiriki wa shindano hilo kabla ya kumtangaza mshindi.
Sehemu ya Wageni mbali mbali waliohudhulia hafla hiyo, wakiwa makini kumsikiliza jina la Mshindi wa Shindano la Mashujaa wa Kesho lilihusisha vijana wenye umri kati ya miaka 18 na 25 kutoka mikoa ya Mtwara na Lindi, katika hafla iliyofanyika mwishoni mwa wiki iliyopita, katika Hoteli ya Hyatt Regency, Jijini Dar es salaam.
Mgeni rasmi katika Hafla ya kumtangaza Mshindi wa Shindano la Mashujaa wa Kesho lilihusisha vijana wenye umri kati ya miaka 18 na 25 kutoka mikoa ya Mtwara na Lindi, Katibu Mtendaji wa Baraza la Taifa la Uwezeshaji Wananchi Kiuchumi (NEEC), Bengi Issa, akikabidhi mfano wa hundi kwa Mshindi wa Shindano hilo, Yunus Omary Mtopa.
Mgeni rasmi katika Hafla ya kumtangaza Mshindi wa Shindano la Mashujaa wa Kesho lilihusisha vijana wenye umri kati ya miaka 18 na 25 kutoka mikoa ya Mtwara na Lindi, Katibu Mtendaji wa Baraza la Taifa la Uwezeshaji Wananchi Kiuchumi (NEEC), Bengi Issa (wa nne kulia), Balozi wa Norway nchini Tanzania, Hanna-Marie Kaarstad (wa pili kushoto), Meneja Mkazi wa Kampuni ya Statoil Tanzania, Øystein Michelsen (shoto) wakiwa katika picha na washiriki wa shindano hilo.
Soma:      Statoil Yataja Vijana 5 Walioingia Fainali za Shindano La Mashujaa Wa Kesho
Source

How To Start Petroleum Products Supply Business In Tanzania,The Detail Requirements

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Petroleum products distribution is the business that ensures a steady profit . And taking within a reasonable period of time from setting up

If you rack brains to find perfect opportunity in Tanzania’s petroleum industry. Oil products supply is the better option.

Many investors interested in this business. And in this regard is a testimony it yields solid return.

You might feel a market is already saturated. But you can come in and make a go of it.

The fun thing is you don’t need to store or market products. You get products from the depot. You supply to retailers on demand. Cash your money. And smile to the bank.

Still doubt? Keep reading you’ll find out

The article exposes you some facts that’ll enable you to start the business anytime you ready. You’ll learn, the amount you need to invest in.  The profit margin you’ll be earning. Stumbling blocks along the way and how to overcome them.

The profit margin for this business is mouth-watering

We base our calculation per liter per truck. And let take Dar es salaam and Mtwara as a case study

Depending on where you supply products. But at the depots today, they pay Tzh 100 per liter from D ar es salaam to Mtwara.

If you load 18,000 liters in your truck you make 18,000 ×100= Tzs 1,800,000.And after all expenses, you’ve a profit of Tzs 1,000,000.

Imagine for a moment :that’s the profit for just one trip. And if you get 4 trips in a month, you earn  1,000,000×4= Tzs 4,000,000

And Industry insiders reveal that they realize all their capital after 1 to 2 years of services.

Read:How To Start Petrol Filling Station In Tanzania- Complete Guide

Why the demand for this business is huge in Tanzania
In fact, a business that’s dependent on people’s needs grows by leap and bound.

No matter how much is imported still extra needed to meet the Tanzanians’ needs and their works

Many oil marketing Companies in Tanzania like Oilcom, Total, Puma,Lake Oil have many petrol filling stations and clients in Tanzania and beyond
The problem is they have minimal trucks to transport petroleum products and satisfy all their clients

To come out ahead. They pull out people with their own trucks to help them distribute products locally.And is the point smart entrepreneurs (Like you), you make huge cash.

The requirement to start Petroleum products supplies business.
Acquire supply tanker/truck
To stand out, buy your own truck. And a fair truck costs at least Tzs 35,000,000

For starters, I recommend a truck of about 18,000-liter size minimum. To become a large scale supplier get 37,000 to 40,000-liter truck size.

Hire Driver.
You should be little careful when choosing a driver for your truck. Find experienced and qualified drivers. A simple mistake can cost a huge cash in an instant.

Risks In Petroleum products supply business
Every investment has its respective stumbling blocks. Here’re risks in oil products distribution business

Truck Fall because of the careless driving and rough roads. Hire a wise driver who put safety first.

Fire Outbreak.
The truck might catch fire because petroleum products have high flammability. So it is better to ensure a truck and petroleum products with a reputable insurance company.

Budget

Initial Investment TZS 35,000,000
Initial Salary for driver TZS      250,000
Pocket money for driver TZS      200,000
Misclleneous TZS  +  600,000
Total TZS =36,050,000

 

I’d love to   know your thought

Hussein Boffu

Graduate In Petroleum Geosciences

    Hussein.Boffu@tanzaniapetroleum.com

0655 37 65 43