Have you ever wanted to start your own business in the oil and gas sector in Tanzania?

If you answer yes, then it’s a wise decision to pursue.

Tanzania’s oil and gas sector is another name for wealth. To verify my words, plan a visit to the Oyster Plaza building in Masaki, Dar es Salaam, where there are a lot of oil and gas companies’ offices. You will be shocked once you see Mercedes Benzes, BMWs, and all kinds of expensive cars in the parking areas outside the buildings.

This is a living testimony that they make huge money from the oil and gas industry.

The simple truth is that oil and gas entrepreneurs are super busy. They have only two options: either to take a flight for a meeting abroad or to deal with clients. But if you are lucky to meeting them even for 10 minutes, you will be amazed at their lifestyle.

And the reasons they make that huge money is because oil and gas products are fast-moving commodities in the world. The demand for oil and gas end-product and by-products are huge in Tanzania and across the world.

Tanzania has discovered 57.25 trillion cubic feet of natural gas. But according to the US Geological Survey, the country still has potential natural gas reserves up to 441 trillion cubic feet solely in the coastal region, so more gas discovery might be forthcoming.

My friend, oil and gas resources are wealth. The oil and gas sector has turned ordinary and poor people into extraordinary, wealthy people.

The best part of this industry is, the earlier you start, the better. Don’t wait until 2020 to enter the market, because a lot of international guys and only a few groups of Tanzanians are smiling to the bank with money coming from the industry.

I am not saying this to impress, but I want you to start benefiting from the huge gas discovery in our land.

Instead of being proud that you are in the country blessed with huge natural gas resources, now you should know how to monetize these resources and reach your mountaintop.

But don’t get me wrong, this is not a get-rich-quick scheme. To make good money in this industry, it requires a long-term commitment and building a strong relationship with clients. And just like anything worth having, it takes effort.

Are you interested in starting business In Tanzania’s oil and gas? Here are the requirements:

1. Find A Niche

Tanzania oil and gas is huge, and there are multiple routes to break into this industry. So, the first things you should identify are business activities that you have proven capabilities and capacity to do well.

I meet a lot of entrepreneurs who want to do all trades in the industry. But that’s not for you. Because you won’t succeed if you want to engage in all the trades at once.

To succeed in this sector, you have to put 100% of your energy into one business activity. And once you are doing well in that business activity, that’s when you diversify.

Finding a niche starts by identifying products or services you want to render in the industry.

Here are some of the business activities you could decide to do in Tanzania’s oil and gas sector:

  1. Become an oil operator. You will set up a company that searches and extracts oil and gas resources out of the ground. You might hear it often called Exploration and Production Company. It is capital intensive because it requires advanced technology, equipment, machinery, and highly trained manpower with expertise and experience in extracting oil and gas resources. But it yields solid profit if you manage to go on it.
  2. Offering mechanical services (e.g. welding and fabrication services.)
  3. Catering services (e.g. feeding oil and gas workers or pipeline construction crew on the campsite.)
  4. Logistics and transportation services.
  5. Offering oil and gas tools and equipment (e.g. pipes, valves fittings, drilling bits, casing pipes, etc.)
  6. Selling drilling chemicals, corrosion inhibitors and oil and gas materials (e.g. barite, bentonite, sodium chloride, uniform, coveralls, safety boots, gloves, etc.)
  7. Finance and insurance services.
  8. Legal and IT services.
  9. Supply of office materials.
  10. Engineering procurement and construction management.
  11. Wireline services, direction drilling services, well drilling services, maintenance services, etc.

And the list goes on.

2. Register With The Business Registration And Licensing Agency (BRELA)

Once you have identified the services you want to render in the industry, the next step is register with BRELA.

This is imperative because no individual is allowed to bid in the oil and gas sector. It’s only for registered companies. So, do business in Tanzania without getting into a legal trouble. You should register a business name or limited liability company with BRELA.

Registering with BRELA is fast, easy, and cheap, if you meet their qualifications. Here are the requirements to get registered with BRELA:

  1. Memorandum and article of associations.
  2. List of shareholders and directors (their names, address, and date of birth.)
  3. Share distribution.
  4. Share capital.
  5. Name of the company secretary.

3: Get Necessary Licenses And Permits

Now that you have registered your company with BRELA, and BRELA has given you a certificate of incorporation, the next requirement is getting licenses and permits.

But permits and licenses vary depending on the kind of oil and gas activity you intend to do.

If you want to be an oil operator; that is, you buy a gas block for extracting oil and gas resources, the agency responsible for such permit is Tanzania Petroleum Development Corporation (TPDC).

If you want to be a contractor (those who want to provide engineering, construction, mechanical services, and other technical jobs), you shouldyou’re your permit from the Contractor Registration Board (CRB).

For suppliers and consultant, get a permit from the Regional Trade Office.

Bonus: For entrepreneurs who want to setup a lubricant (engine oil) or petrol station business, get a license from the Energy Water and Utility Authority (EWURA).

4. Register With Oil And Gas Companies You Want To Work With

Now that you have a license to operate in Tanzania oil and gas sector, the next step is to register your name with international oil and gas companies as a vendor (contractor or supplier.)

5. Win Your First Contract

The most challenging task in the Tanzanian oil and gas industry is getting your first contract. This is because nobody wants to be the first customer. But sometimes you need only one customer to grow fast in the industry.

To grow fast in the industry, alliance, partnership, and joint venture across the country with experienced international oil and gas contractors is necessary.

Attend conference trade shows and join Tanzania oil and gas associations.

This will enable you to learn how to do business with large oil and gas companies in Tanzania and increase your contacts.

What Are You Waiting For?

Now you know the requirement to  start  the oil and gas business in Tanzania. If this interests you then it is time take all necessary steps to make this reality.  You can do this if you commit yourself to your own success.

Think back for a moment.

What do you imagine when someone mentions the oil and gas sector?

Businessmen worth billions? Oil barons? The government?

Let me also ask: what do you think it takes to succeed in the oil and gas sector in Tanzania?

I have some good news for you.

It’s not by having a huge capital, neither by offering the most perfect products, nor by even having a lot of contacts in the industry.

Sure, it does help, but not always.

Supposing you want to climb Mountain Kilimanjaro (the tallest mountain in Africa), would you go climbing yourself or get an experienced guide who would lead you to the summit?

It’s the same in the oil and gas sector, too.

To succeed in Tanzania’s oil and gas sector, you need to find experienced people who have succeeded in the sector, people who are willing to guide you.

Once you can do that, you can be sure that when you follow their steps, you’ll succeed.

There’s a catch, though.

A Guide For a Million Dollars

Yes, you heard me right.

That’s how much it takes to get an experienced person in the oil and gas sector to guide you.

Imagine consulting your mentor at $200 per hour. I’m just estimating low. Some will charge you $500 per hour. Some, a thousand dollars.

Imagine that. O-N-E T-H-O-U-S-A-N-D D-O-L-L-A-R-S.

Multiply that by a minimum of three hours per day.

Multiply that by a minimum of three times per week.

Multiply that by four weeks in a month.

(You would have learned much in a month, but still, you won’t be able to stand on your own yet. You need a minimum of six months to a year to learn all it takes.)

Multiply that by a minimum of six months.

Here’s the breakdown for a $500 per hour consultation lasting three hours for three times a week, and for six months:

$500 * 3 hours * 3 times per week * 4 weeks in a month * 6 months = $108,000

That’s a whooping sum of money. And you can bet your money that you’d have made ten times that amount in six months.

But can you afford it?

For you, that’s like a million dollars.

An Alternative Guide For a Few Bucks

But what if I told you that you can learn how to start an oil and gas supply and services business in Tanzania without annoying anybody?

What if I told you, you can save a ton of time on getting a guide, on how to get deals, on how to prepare acceptable prices (quotation), and on winning contracts and supplies?

What if I told you can save a lot of money in discovering the main area of business opportunities in the oil and gas sector in Tanzania, the list of goods and tools you can start to supply, and how to register your business as a supplier or contractor with various oil and gas companies in Tanzania?

If you would like to sell products or offer services to the oil and gas sector and make a large profit margin, I encourage you to download our guide titled, “How to Recognize Potential Business Opportunities in the Oil and Gas Sector in Tanzania.”

In this guide, you will discover:

  • How to start an oil and gas supply and service business in Tanzania. Everything about planning your business, market analysis, and financing your business.
  • How to become a contractor or supplier, including licenses and permit you to need to get started with the oil and gas supply and services business.
  • A roadmap on how to recognize potential business opportunities and how to be noticed and considered by oil and gas firms.
  • How to present your goods and services to oil and gas companies.
  • How to get deals and win contracts. You will learn how to prepare and submit an acceptable bid or proposal.
  • How to raise money for your supply or contract.
  • A list of goods you can start to supply to oil and gas companies.
  • The main area of business opportunities in the oil and gas sector in Tanzania.
  • Tips to survive in Tanzania’s oil and gas sector.
  • More interesting businesses opportunities in Tanzania’s oil and gas sector.
  • List of oil and gas companies that are searching for oil and natural gas in Tanzania.

…and many more.

I’m not asking you for a million dollars. Not $10,000. In fact, I’m not even asking for $100.

Download this guide now for TZS 30,000 now.

To buy the book, make a payment of TZS 30,000 through Tgo pesa, M-pesa to any of these numbers:

+255689955711
+255655376543
+255653702878

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.

Meet the Author

Hello, my name is Hussein Boffu, and I’m the author of How to Recognize Potential Business Opportunities in the Oil and Gas Sector in Tanzania. I’m also 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.

The Complete Guide for Just a Token

To buy the book, make a payment of TZS 30,000 through Tgo pesa, M-pesa to any of these numbers:

+255689955711
+255655376543
+255653702878

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.

The East African oil pipeline (or the Uganda-Tanzania pipeline is the talk of the town now. Not only in East Africa but all over the globe.

The construction of this pipeline is officially on. Social and resettlement planning services have been undertaking it in Tanzania.

The sad reality is that people don’t know about the business opportunities available in the project.

More and more people keep wondering what the opportunities emerging in this project are and how they can be part of it.

“Do they offer equipment or provide services?” they ask themselves.

If you are among these people seeking to do business in this projects but have no idea how to get started, then no need to worry.

This article shows you some opportunities available in the project and how you can participate so that you can reap a substantial profit.

The Tanzania-Uganda Pipeline Opportunities

  1. Pipes and connection supplies: One of the opportunities in this project is to supply and manufacture seamless tubes and pipes (LSAW) and also supplying steel pipes.
  2. Chemical Supplies: For the construction of the pipelines, there are a lot of specialty chemicals needed, from corrosion inhibitors additives to scale remover to chemicals that reduce paraffin build up. You cannot run a pipeline without these things, and you can get them from China really cheap. Which means your profit margin may increase by 30-50 percent.
  3. Pipeline equipment supplies: These cover all materials that are required in the pipeline transportation system. It includes fittings, valves, scraper traps, insulating flanges, flow tee, pumping station, etc.
  4. Civil engineering works: These include building construction work, construction and maintenance of roads, construction and maintenance of drainage system, etc.
  5. Pipeline inspection services.
  6. Food supply.
  7. Security services.

Are you ready to utilize opportunities in this project? Here is how to grab the opportunities:

1. Identify the decision makers and influencers in this Uganda-Tanzania pipeline project.

The first step in pursuing opportunities in the Uganda-Tanzania pipeline is determining who the decision makers are.

Decision makers are the people who can approve or disapprove your proposal.

No matter how big a company is, there are decision makers who can approve or disapprove documents.

This can be easily achieved by making a list of key players in the project and starting to build long term relationship with them.

2. Demonstrate your experience.

You should demonstrate that you are the right person to execute the project you’re proposing.

You should demonstrate your capability and your experiences in executing similar project.

“What if my business is small and new n the industry?” you may ask.

Well, the answer is pretty simple. You still have a chance to tap opportunities in the Uganda-Tanzania pipeline project.

If your business is small and new, and you don’t have any experience or working history to be taken as references to the service you want to render, you should consider going into a joint venture with an experienced contractor in the oil and gas industry in such bidding venture. However inexperienced, you still have a chance to participate in this work.

You have learned the opportunities in the East Africa pipeline project and you now know how to access them.

If you want to learn more about the opportunities in the Tanzanian oil and gas sector and how you can grab them, click here to know more.

 

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

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

The outlined are the truth:

                  

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

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

 

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

                

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

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

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

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

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

                        How To Overcome These Challenges

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

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

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

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

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

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

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

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

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

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

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

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

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

LPG Gas Bottles. LPG plant

Cooking gas Image

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

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

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

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

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

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

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

    Start-Up Money

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

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

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

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

How is profitable is Cooking Gas Business In Tanzania

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

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

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

Tips  To Succeed In This Businesss

   

1:Do  home deliveries

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

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


2:Pick  good marketing strategies

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

  Challenges In s  Cooking  Business

1:Fire explosion

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

2:Price volatility

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

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

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

Solo Oil has announced that it has agreed to acquire a 10% interest in Helium One Limited  for a total consideration of £2.55 million  and has also been granted a 90-day call option to increase its investment in the company by a further 10%, for an additional investment of £4 million, which would increase its stake to 20%.

The initial investment by Solo Oil is divided into £1.2 million (gross) raised by means of a Company arranged subscription with institutional and private investors and £1.35 million through issuing new Ordinary Shares.

The call option to increase interest in Helium One to 20% by a further investment of £4 million by way of £2 million in cash and £2 million through issuing new Ordinary Shares.

The Helium One’s Rukwa Project in Tanzania has independently estimated by Netherland, Sewell  and Associates Inc. (NSAI) to contain unrisked most likely prospective recoverable helium volumes close to 100 billion cubic feet.

The investment comes as the global helium market is anticipated to see a sharp drop in supply in the next five years as the US Strategic Reserve ceases sales, and with helium’s increasing use in modern life, such as MRI scanners, to lifting and electronic applications.

“Solo has successfully invested in bringing several gas projects to market in Tanzania which are now reaching maturity from an investment viewpoint. Given the related pricing of petroleum gas and helium, which is globally in short supply, Solo has for some time been investigating opportunities in the helium sector,” says  Solo’s Chairman Neil Ritson.

Solo adds it has identified Helium One’s world-class assets in Tanzania as a compelling and complementary investment for Solo’s portfolio of oil and gas investments.

“Helium One’s portfolio of prospective helium projects in Tanzania provide Solo with a unique early stage investment into a potentially world-scale helium resource. The Company believes that Rukwa, together with Helium One’s additional project areas at Eyasi and Balangida, represent an attractive strategic investment, especially given the helium market’s weak supply dynamics and continued demand growth.

Amnex-proves-more-tanzania-gas-shares-fall

Helium One is an independent specialist explorer focussed on being a major supplier into the global helium markets estimated to be worth approximately US$6 billion annually.  The company benefits from an experienced Board with extensive in-country and industry experience. Helium One holds twenty-three Helium Prospecting Licences in Tanzania, including licences over the Rukwa Project with a most likely unrisked prospective recoverable helium volume of 98.9 bcf (as reported by NSAI).”

Global demand for helium is growing at a rate that is outstripping supply, which presents a significant pricing opportunity for future producers.

Helium supply is concentrated in only a few markets globally, mainly Algeria, Australia, Russia, Qatar and the USA.  Tanzania has been identified as a key country for helium exploration based on the evidence of surface gas seeps in the geological rift valleys adjacent to the Tanzanian Craton, as well as its strategic location for global exports through its deep-water port at Dar es Salaam.

 

Deep down you know it’s true. How’s difficult to gain oil and gas information in this country. Some people will require you to pay them big cash to teach you how to make money in this industry. Because I love you,  I’m giving you all this information for free. So no matter who you are. If you put to the use what I am going to share with you.

You’re not to be the same way again. You will be doing business with many oil and gas companies in Tanzania and make  you smile to your bank account.

Read also:The main Area-of-investment-in-oil-and-gas-sector-in Tanzania

But I want to be totally honest with you. I don’t want to baby you that you will make it overnight. These works once you have a good preparation,  being ready to work late hours and commitment to risk taking.

Do you want to learn how making  money in the oil and gas sector in Tanzania? So check these out:

  1. Find a decision maker- These are people who can say “yes”  or no to your offer.
  2. Get to a supplier list
  3. This is a personal industry contact never advertise on Newspaper
  4. For a Tanzanians, put a philosophy of local supply and services first
  5. Spend 80% of your time visit oil companies offices and rig sites and tell them what you can do for them
  6. Provide now or they will get from someone else
  7. Be honest. When you sit with client never promise what you can’t deliver
  8. Never say negative about your competitors products or services. Because you’re not expert of your competitor products and services
  9. Deliver on time or early
  10. Give good service, they will give more job
  11. Never argue with your client
  12. Have a presence of rigs sites and camps, as many oil and gas companies in Tanzania are exploration and production phase.So many buying decision made on field.
  13. Never give up. Keep on follow up. Regular visit will help you identify your clients need
  1. I prefer to work with oil companies than their drilling contractor because they pay with in 30 days
  2. Socialize with other oil and gas stake holder in Tanzania.Join our local chamber of commerce, attend industry events. Go and play with them golf, football and gain their trust
  3. Use your network wisely
  4. Keep updated with what’s going on

So what are you waiting for

Now, go out there and make it happen. Trust me, you will get back here with successful story.

If you found this information useful, leave a comment

    Hussein.Boffu

Email:Hussein.boffu@tanzaniapetroleum.com

Mobile +255655376543

 

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.

 

 

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

 

 

By

RENATUS MAHUYU

Msc Oil and NaturalGas Engineering

China UNIVERSITY OF GEOSCIENCES-WUHAN CHINA.

raymahuyu@yahoo.com

Phone number /WhatsApp: +8613006172786

www.renatusmahuyu.blogspot.com

renatus

 

From our previous article, we discussed about how geologists go about when finding oil and gas in the exploration stage.

Read: Why It’s Important For Oil Companies To do Reservoir Modeling and Simulation( Part1)

In this article, we will discuss;

  • The life cycle of an oil field,
  • The meaning of reservoir modelling and simulation,
  • Data used to construct reservoir models,
  • Reservoir engineering software’s for modelling and simulation

 

The life cycle of an oil field

There five phases in the life cycle of an oil field, they include;

  1. Exploration/Discovery Phase

In this phase, thegeologists and geophysicists main activity is to search and locate the hydrocarbons beneath the earth’s surface using seismic surveys. Once the geologists and geophysicists agree on the existence of hydrocarbons in a particular area, exploration wells are drill to confirm. Exploration wells are typically not very deep

 

 

  1. Appraisal Phase

Successful exploration drilling of oil or gas leads exploration companies to go for next stage which is appraisal phase.

This phase focuses on reducing uncertainty about the quantity and qualities of the discoverable oil and gas reserve and its properties.

During appraisal, more wells are drilled to collect information and samples from the reservoir. Another seismic survey might also be acquired in order to better the image of the reservoir.

The activities take several years and cost around $10 to $100 million.

Upon successful completion of this stage, companies can then move to the next stage of development.

 

  1. Development Planning

The development stage takes place after successful appraisal and before full-scale production. It is done for the following reasons;

  • To form a plan on how many wells need to be drilled to produce the oil or gas (geologists, geophysicists and reservoir engineers)
  • To decide the best design for the production wells (drilling engineers)
  • To decide what production facilities are required to process the oil/gas before it is sent to a refinery or customer (facilities engineers)
  • To decide what the best export route might be for the oil and gas (logistics engineers)

 

  1. Production Phase

This is the process of extracting the hydrocarbons. The primary activity conducted during this phase is pumping hydrocarbons to the surface. Sometimes, more wells may be drilled within the development area to enhance hydrocarbon recovery. Once the fluid starts flowing, it must be separated into its components (oil, gas, and water). Other activities that occur during production phase include production enhancement, well servicing (routine maintenance such as replacing worn or malfunctioning equipment), and well workover (a more extensive equipment repair). The production phase may last for a number of decades. During this phase, wells and associated facilities are routinely monitored.

 

  1. Abandonment/Cessation of Production(CoP)

When production wells no longer economically produce enough oil, the wells are plugged and the site restored by dismantling facilities such as platforms, putting the wells in a safe state, preserving the field’s residual hydrocarbon reserves of the field, and cleaning, depolluting and rehabilitating the site.

 

What does Reservoir modelling and Simulation mean?

Let us first define the meaning of the key terms: reservoir, reservoir modelling, simulation and reservoir simulationin the petroleum field

 

Reservoir; a porous medium that contains (Oil/Gas) hydrocarbons.

Simulation; a process of imitating or mimicking an actual or assumed real world conditions over time, for the purpose of forecasting performance of the system by the use of a created model

 

Reservoir simulation;a process of predicting future reservoir performance and finding ways andmeans of optimizing hydrocarbon recovery under various operatingconditions.

 

A reservoir model represents the physical space of the reservoir by an array of discrete cells, delineated by a grid which may be regular or irregular. The array of cells is usually three-dimensional, although 1D and 2D models are sometimes used.”

 

Reservoir models are divided into two categories:

 

RESERVOIR MODELLING AND SIMULATION STAGES

DATA Geology study   Reservoir simulation (Dynamic Model)  
Well data, well tops

 

Geo-Physic(Seismic)

 

Reservoir, Geometry correction Sensitivity Analysis  
Drilling (Cutting) Fault modeling Static model History matching  
Petro-Physic(well logs data)

Core

Fluid sample (surface-Bottom Hole)

Zonation Prediction
Lithological modeling
Scenario definition
Economic Analysis
Property modeling
Reservoir Management

 

Reservoir Engineering Software for Modelling and Simulation.

There a lot of commercial software used by Geologist and Reservoir engineers in modelling and simulation process.

Software’s

  1. ECLIPSE Schlumberger
  2. Petre software
  3. INTERSECT
  4. ExcSim
  5. Computer Modelling Group LTD -CMG software
  6. SKUA-GOCAD High Resolution Reservoir Modelling

 

The uses of these software and its advantages.

  • To do numerical simulation, from black oil and compositional to thermal recovery of heavy oil resources.
  • creating 3-D reservoir model.
  • To provide uncertainty quantification, field management, history matching
  • To reduce risk, maximize recovery of oil and gas reserves as well as enhance field economics.
  • Maximize the value of your well tests with optimized designs that honor the geological model

 


For those who need to practice and learn/practically on how to use this software you can communicate with us THROUGH CONTACT PROVIDED.

 

Next Discussion will be on How a reservoir model is Constructed and Why modelling and simulation

 

Thank you

For further enquire, questions and suggestion please feel free to contact me through provided contacts