Table of Content.

1. Why equipment leasing Is The Profitable Business In The EACOP
2. Steps How To Find Client For Equipment leasing In the EACOP-
3. 3.Conclusion.
   
   The construction of the East African crude oil pipeline creates immense business for the entrepreneurs seeking opportunities across various phase of the project. And one of the service you can render in the project is equipment leasing

Why equipment leasing Is The Profitable Business In The EACOP
With a lot of the construction works along the pipeline routes ranging from building new access roads and upgrading existing one. Contractors and subcontractors will need equipment to complete various projects.

Since contractors do not want to affect their working capital renting equipment will be their choice. Many contractors prefer equipment leasing because it helps them acquire needed equipment without affecting their operating budget and without an approval process.
There is a higher demand for the equipment leasing across various stage of the pipeline construction. Here are examples

During the “clearing” stage of the EACOP.
This phase involves removing all obstacles that can hinder construction process along the pipeline route. It consists cuttings, burning or removal of trees crops vegetations along the construction corridor. Once the area is well cleared, it easy to get construction equipment to the site

During “Grading” stage
The next activity in this construction of EACOP project is grading. This is the leveling of the ground so as to keep safe work and level surface operation for the pipeline construction crew and help heavy machine and huge construction equipment to smoothly operate along the pipeline route. Also since the EACOP passes via various topographies, leveling minimizes excessive pipes bending for example in the areas of steep slopes

During “Trenching” stage
The next stage of the EACOP construction process is digging the trench. The top of EACOP to be buried to a minimum of 1.2 meters below the ground surface. During this trenching operation, the crews will use excavators to remove material from the trench
To complete these activities contractors have to lease construction equipment ranging from excavators, bulldozers and so on.

3 Steps How To Find Client For Equipment leasing In the EACOP-

1.Decide the type equipment you want to offer in the EACOP
Many types of equipment leasing business you can offer in the project ranging from generator, excavators, bulldozers and other heavy machines

2.Have a good list of the contractors
Once you identify the type of equipment renting, the next steps are to find out the construction contractors and subcontractors in the project. Find out both local and international contractors that will participate in the construction of the project.
3.Market Your Business
Once you have a good list, you start to reach out to them one after the other with your offering. I suggest you focus on the local contractors who will involve in the project.

Conclusion.
Equipment leasing is the lucrative business not only in the EACOP project but across the various sector of the economy in Tanzania. If you want to give it a go but you don’t have enough money to purchase the equipment. I suggest you start as a broker and earn percent for each rental you make as result of your introduction. In regard to the East African pipeline project, the most in-demand equipment leasing businesses are construction equipment such as an excavator. But in another sector of economy office supply equipment, Farming equipment, generators, chairs rental and more.

What are your thoughts on how to start an equipment leasing business in The East African Pipeline Project? Let me know by leaving a comment below.

By Joe Watson Gakuo
Back in October 1962, a company by the name Phillips Petroleum applied for permission to the Norwegian government to explore for oil and gas in the North Sea. After a while and just before Christmas of 1969, the company announced the discovery of Ekofisk, which turned out to be the largest offshore oilfield ever discovered. This was when Norway’s success story started in earnest.

Norway is credited by having the largest sovereign wealth fund in the world, and with over $1 Trillion, this equates to $190,000 for each of the country’s 5.2 million citizens. To put it into perspective, each person in Norway would get Kshs.19 Million each were it to be dissolved and funds re-distributed.
A few years ago, the Presidential Task Force on Parastatal Reforms proposed the establishment of Kenya’s sovereign wealth fund. This report was presented to President Uhuru Kenyatta on October 2013.

In Kenya, and in line with this, the government through Treasury drafted the Kenya National Sovereign Wealth Fund (SWF) Bill whose main aim is to ensure that there is proper management of the proceeds from oil, gas and mining industries. This would lay the legal framework for managing the oil and gas wealth from the discovered resources. A seed capital of Kshs.10 billion was injected into the fund.
The bill proposes the establishment of three main funds within it; stabilization fund, infrastructure and development fund, and a future generation fund. Unfortunately, the bill is yet to be enacted into law.

The development of the upstream oil and gas industry, as well as mining sector requires forward thinking in terms of policy. I argue that the setting up of the oil and gas wealth fund by the East African countries is a step in the right direction, and I have three reasons for this;
Firstly, it would provide a clear way in which to invest the revenues from oil, gas and minerals both for the current and future generations. The setting up of a Stabilization Fund will work as a counter-cyclical economic stabilizer which will help in smoothening a country’s budget variations in income over a period of time.
Secondly, it will support the funding of infrastructure in the country. As growing and emerging economies, East Africa has major deficit in the requisite infrastructure. Availability of an Infrastructure and Development Fund will provide the financial resources required for huge infrastructural investments. For example, the region’s funding gap for the public-private partnership infrastructural projects alone is estimated at $100 billion over the next couple of years. The revenues from oil, gas and minerals can help in closing these gaps.

Thirdly, the fund will address the issues of intergenerational equity. It will make available a pool of savings or some level of a back-up for the future generations. This is very important because these resources are non-renewable.
The above benefits will cut across various sectors due to the multidimensional nature of the interventions that the wealth fund provides. The multiplier effect of this will be huge to the economy and every citizen will feel the benefits.

On the other end of the spectrum are those who view having an SWF a bad idea, because they have a very poor record of return on investments. As a country, our current deficit is very high and so is our debt to GDP ratio which has averaged at 53.74 per cent from 1998 to 2017. We have huge number of our citizens, especially the youth in unemployment. This begs the question, is it morally right to save for the future as you starve today? For example, Nigeria which has an SWF with billions in it runs a budget deficit yet a majority of its people suffer. The country actually sometimes runs out of their petroleum products making people queue for days in petrol stations, yet they are an oil producing nation.

Kenya and East Africa in general must strike a balance between pressing social needs of today, and investing in the future.

Joe Watson Gakuo is the Chief Executive Officer at Upstream Oil & Gas Ltd. Email: jwatson@upstreamgrp.com.

Starting a petrol station business can the wise decision you can make as an entrepreneur.

To go into this line of business you need to do a proper research in the area you want to launch a petrol station, Is your land located on the highway with a sufficient number of cars passing every day or generally, you have a uncover an area where people travel far to buy fuel?

Also you need to know the startup cost for set up a petrol station. And the price of necessary machines and equipment required to run a petrol station.

Considering you will research on how to start a petrol station business in Tanzania, here are 5 reasons why you should seriously think to venture into the petrol station business

1.Tangible Investment.
Unlike other people who invest in the stock, forex market which exposes to higher financial risk. Your money can’t vaporize in the petrol station business because you know each break you put your money into.

So even you stop running your business you can lease or sell it to other investors and still something tangible to hold on.

2.Solid returns
The petrol station is another name of wealth, If doubt gets face time with petrol station owners, you will be shocked by their lifestyle.

Many petrol station owners are struggling with finances, this is because of solid return they generate from a petrol station.

3.Related Business Opportunities.
Petrol station owners make additional income by offering variety of products and services related to the principal business such as offering Soda, Water, Milk, Snack food and services like car wash, mechanics workshop etc

4.Really Recession Proof Business
Unlike other business which shut down in the recession, Petrol station thriving even bad economy. Regardless of the bad economy, people drive, transport vehicle will drop in your petrol station to consume your fuel.

5.Additional Revenue.
In your petrol station, you can make additional income through advertising and promotion like allow entrepreneurs to set up billboards on your petrol station.

6. Doesn’t require four-year university degree or high school diploma
Running petrol station does not require exquisite qualifications, like having business administration diploma, or master degree in marketing and selling.

As long as you have a smart mind to learn or get the training, then the journey will be convenient.

7.No loss Business
Even if you stop running your petrol station, selling the petrol station equipment, like dispensing pumps, land and office building can recover your investment.

So if you are thinking to start your petrol station business and you want to save months or even years of hassles on researching learning the requirement to start petrol station business in Tanzania. Here is a good news for you.

Because…

Introducing…

What if you could learn the requirements of starting a petrol station without wasting precious years? What if you could learn what it takes to run a filling station? What if you could do that without begging, bribing, or cajoling anybody? What if you could do that now?

This books answers all your questions concerning this subject. Below are some of what you’ll learn in the book:

•  Three ways to start a filling station business in Tanzania, and the easiest among them.
•         The steps and procedures to obtain licenses and permits to setup a petrol station.
•          The list of certificates you need to run a petrol station.
•          The cost of setting up a petrol station in Tanzania.
•          The equipment and machines you need to have a complete filling station, their prices, and where you can buy them.
• The factors determining the profit margin of petrol stations.
• Three ways to become a dealer of oil companies in Tanzania.
• How to setup a petrol station using the brand name of major oil companies in Tanzania such as Total, PUMA, etc.
• The marketing strategies you should employ for your station.
• How to control theft and avoid robbery in your station. (Ignore this and watch robbers flock in every now and then.)
• The challenges associated with running a petrol station.

The Complete Guide for Just a Token

Not TZS 200,000.

Not TZS 100,000.

Not even the regular TZS 50,000.

Get this guide now for a token of TZS 50,000.

To buy the book, make a payment of TZS 50,000 through Tgo pesa, M-pesa to any of these numbers

1. +255655376543
2. +255689955711

Once your payment is done, send an SMS to +255689955711 or +255655376543 with the following details:

• Your full name.
• Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com The moment we receive your email or SMS, and we confirm your payment, the eBook will be delivered to your email address (in PDF format) within ten minutes.

You can then download it and read it on your Smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Frequently Asked Questions

What kind of book will I receive?

The book will be in PDF format, delivered digitally via email. There are not physical copies of the book sold at this time.

What happens after payment?

Once a payment has been made, you will receive an  email,  with attachment of your purchased copy which you will  obtain a copy of the PDF book.

Meet the Author

Hello, my name is Hussein Boffu, and I’m the author of How to Start and Run a Profitable Petrol Station Business in Tanzania. I’m also the founder of TanzaniaPetroleum.com

I am an entrepreneur specializing in the oil-and-gas supply chain. For quite some time now, I’ve been consulting a lot of businesses, both local and international, regarding starting a business in Tanzania’s oil and gas sector.

I have been approaching and talking to executives, and have been selling goods and equipment to various oil-and-gas companies in Tanzania.

What Others Are Saying About Me

“I was amazed when I first found his informative article on the internet. My reaction? Wow. It was the absolute best anyone could offer the petroleum industry. So, I emailed him for a face-to-face interview. And we met. Seriously, I have a strongly feeling about him. Hussein Boffu enlightens people who are passionate about doing business in the oil and gas sector in Tanzania.” –Mussa J. Mlindwa, Commercial Assistant, American Embassy, Tanzania.

“I have found Hussein to be a veritable fountain of information with a vast and useful network of senior contacts when I first sought information about the Tanzania’s oil and gas industry. Also, Hussein has a newsletter and website that is arguably one of the international community’s first stops when considering investment into Tanzania.” –Daniel R. Butler, Consultant and CEO of MelbourneSRO, The Czech Republic.

Solo Oil  has   announced  today the results of the recently completed Competent Persons Report (“CPR”) conducted independently by RPS Energy Consultants Limited (“RPS”) which results in a significant resource upgrade of the Ntorya gas discovery in the Ruvuma Petroleum Sharing Agreement (“Ruvuma PSA”) where Solo holds a 25% working interest. ‘

Aminex plc (“Aminex”), the operator of the Ruvuma PSA, has also confirmed that, when taken together with the Ntorya Gas Commercialisation Study prepared by io oil & gas consulting (“io consulting”) last year, these resources indicate the commercial feasibility of a proposed development at Ntorya.  RPS, a subsidiary of RPS Group, is an internationally-recognised resource reporting firm and io oil & gas consulting is a joint venture between Baker Hughes, a GE company, and McDermott.

Highlights

• ·     Ntorya 2C contingent resource estimate increased to gross 763 billion cubic feet (“bcf”), an increase of over 10-fold from the 2015 CPR;

• ·     Ntorya Pmean gross gas initially in place (“GIIP”) upgraded to 1.87 trillion cubic feet (“tcf”), which is an increase of 44% on previous management estimate of 1.34 tcf and an increase of approximately 12-fold from the previous CPR (pre-drilling of Ntorya-2) in 2015;
• ·     io consulting has confirmed that the Ntorya gas development project could be sanctioned with three wells producing into a raw-gas pipeline to the Madimba gas plant approximately 33 kilometres away.

Based on this independent report undertaken by an industry leading consultancy, Solo now holds net resources of approximately 467 bcf Pmean GIIP, resulting in excess of 190 bcf (over 30 million barrels oil equivalent (“mmboe”)) of most likely contingent resources net to its 25% interest.

Neil Ritson, Solo’s Executive Chairman, commented:

“A further significant and material resource upgrade made independently by RPS supports the Company’s view that Ntorya is a major gas field within the regional market, thereby underpinning our development plans. 

The independent verification of our net interest equivalent to over 30 mmboe underlines the significant value of Ntorya within our portfolio. 

When taken with the results of the io consulting commercial feasibility study, we are now confident that Ntorya can be economically produced with limited further major capital expenditure. 

 This gives us line of sight to additional revenues and strengthens our ability to monetise our interest at the appropriate time.

 We now look forward to the confirmation that a rig has been secured for the drilling of appraisal well Ntorya-3, and to continued progress on the award of a 25-year development licence for the field.”

Ntorya Development

At Ntorya in the Ruvuma PSA, where the Company has participated in the drilling of two successful wells, Ntorya-1 and Ntroya-2, the gross 2C contingent resource estimate has been increased by RPS to 763 bcf, which is an increase of nearly 11 times over the previous 2015 CPR.

Pmean GIIP has also been upgraded for the third time since the drilling of the Ntorya-2 well to gross 1.87 tcf, up from the operator’s initial post-drilling estimate of gross 466 bcf and then gross 1.34 tcf in September 2017 which was based on a fully updated post-drilling basin model.

Encouragingly, io consulting’s work has also confirmed that the Ntorya gas development could be sanctioned with three wells; Ntorya-1, Ntorya-2 and, the yet to be drilled Ntorya-3 well, and that an early production scheme (“EPS”) would limit upfront capital expenditure and enable the main field development to be funded from future cash-flow.

Kiliwani North Development Area

At Kiliwani North, where Solo holds a 7.55% working interest and where approximately gross 6.4 bcf has been produced to date, RPS estimates gross 1.94 bcf of 2P reserves remain with a gross Pmean GIIP of 30.8 bcf.

It is planned to install compression at Kiliwani North-1 in order to increase recovery of the resources.  In addition, a new prospect has been identified within the Kiliwani North Development Licence (“KNDL”) at Kiliwani South with an additional estimated gross 57 bcf prospective Pmean GIIP.  As the KNDL was originally granted for 25 years (expiring in 2036), the operator is now conducting further technical work to assess the feasibility of further drilling which could lead to additional production into the Songo Songo Island gas processing plant.

Qualified Person’s Statement:  

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil plc, who has over 40 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (BGS).

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.   

For further information: