100%Money-Back Guaranteed High-Quality Base Oil For Your Blending Facility In Tanzania

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The lubricant market is getting more competitive in Tanzania. With the proliferation of new brands, producing quality lubricants using quality base oil is vital to staying competitive.

As you already know, Group 1 base oils are used in formulating various types of lubricants (engine, hydraulic, industrial, gear, etc…). It’s also used in grease manufacturing.

The high quality of oil plus its competitive price would be a great opportunity for your blending facility.

As an energy industry consultant, we have an extensive internal network with high-quality refined-based oil and relatively cheaper than virgin base oil.

Feel free to contact us can learn more about your formulation and the type of base oil you use.

Great Business Opportunities in Electric Vehicle/Car Sector In Tanzania.

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The electric vehicle(EV)is an open field in Tanzania. With more than two vehicles.

Tanzania has the most significant number of electric vehicles  than all-electric vehicles in East Africa combined.

The Tanzania market is attractive because there are few players and no market leader. Unlike other saturated sectors, Tanzania’s electric vehicle industry has no  competition.

Another reason the sector has generated interest among investors and entrepreneurs is that Tanzania has a large population and size in East Africa.

If you want to enter the market, here are potential opportunities and challenges in this emerging sector.

Business Opportunities.
Opportunities in the electric vehicle sector in Tanzania are abundant.

The most obvious opportunities are importing, distributing, and servicing vehicles.

As more people start adopting electric cars, the most
profitable opportunities will be building electric vehicle charging stations to ensure accessible charging to customers.

Challenges
Like any other sector, challenges are there in the electric vehicle sector.

1. Lack of consumer awareness.
The first issue is that electric vehicles is a new technology in Tanzania, so users, agents, and even policymakers need more awareness.

2.Funding. The other issue is that we don’t have our own funding mechanism.

3.Lack of Skilled human capital. The lack of technicians with specialized training to service electric vehicles is the most significant stumbling block holding back the sector.

What’s Next?

Dear business builder, building new electrical vehicle business takes work. And it takes work to get all answers by yourself. It’s easy to fall in love with your ideas and lunge ahead at full speed without in-depth evaluation.

That’s why many entrepreneurs, investors, and new proje fail. The solution is to conduct due diligence before investing. You will be able to judge your ideas so you can make decisions about whether to fix problems or drop the project and move on to something better

 

Exposed: Discover Four Ways How to Invest In Tanzania’s 40 Billion Town

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Some projects are ongoing, and many are coming streams. it’s no surprise that southern regions, particularly Lindi and Mtwara has been labeled as a boom town. 

For quite some years now, south of the country such as Lindi and Mtwara have been neglected by many investors. The popular misconception among investors is that the region’s return on investment is low.

With major business activities coming on stream -Mtwara and Lindi are promising regions. And I will explain.

Consider this:  

  • A final investment decision (FID) of the long-awaited liquefied natural gas(LNG)project is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID. The LNG will be developed in the Lindi, south of the country. Construction time will likely be five to six years, suggesting the large-scale project could come on-stream around 2030.
  • Also, there are high-margin graphite projects located in the Lindi region. The company developing the project Evolution Energy Minerals last year completed 5,440 meters of RC drilling over 44 drilling holes. Graphite is a critical component in Lithium-ion batteries that can be used in electric vehicles. As the world is racing to secure a new source of battery materials, Graphite  projects will fast-track in Tanzania.
  • There are ongoing natural gas productions activities in Songo Songo field and Mnazi Bay in Mtwara region. Furthermore there are coal operations.

 

Introducing…….

 Ways to Invest In Boom Towns.

 

1.Petrol stations: The number of vehicles is increasing in the regions. The region will be busy as transporters and corporations move people, machinery, and equipment. People need fuel which they can buy from your area.  

Choosing the right property before launch will be crucial to your petrol station’s success. Also, it is advisable to conduct comprehensive due diligence to estimate the expected return on investment and cost of developing your petrol station project.

2.Accommodation(Housing, apartment, camps): Have you ever considered where international companies’ employees will live? Accommodation is a major hassle for operation majors looking to provide their employees somewhere to live near the work sites.

 Workforce housing is the most significant investment opportunity in the region. Ranging from apartments, man camps, and hotels. However is crucial to know the requirements and housing standards of international energy companies.

These companies pay big dollars if you meet their safety and quality standards. This investment requires substantial initial capital. Again, conduct comprehensive due diligence before committing.

3.Break into property investment: With potential population growth, securing property in the region will help you to be part of some exciting development in Tanzania.    

4.Build small LPG refilling plants. 

In terms of LPG infrastructures, especially small LPG filling plants, only a few multinational energy investors have such facilities in other regions. Investors have neglected these regions. The gas cylinder refilling plant with a storage capacity of about 25MT may cost between USD 350,000 to USD500,000.

What’s Next?

Dear business builder, investing and building new business takes work. And it takes work to get all answers by yourself. It’s easy to fall in love with these ideas and lunge ahead at full speed without in-depth evaluation.

That’s why many entrepreneurs, investors, and new projects fail. The solution is to conduct due diligence before investing. You will be able to judge your ideas so you can make decisions about whether to fix problems or drop the project and move on to something better

 

Exploring the Potential of Renewable Resources in Mozambique

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Mozambique, a country located in Southeast Africa, has been making headlines in recent years due to its vast natural gas reserves. However, the nation’s energy market is not solely dependent on fossil fuels. With a growing population and increasing demand for electricity, Mozambique is also exploring the potential of renewable energy sources to diversify its energy mix and ensure a sustainable future.

The country’s renewable energy potential is immense, with solar, wind, hydro, and biomass resources all available in abundance. According to the World Bank, Mozambique has an estimated 23,000 MW of hydropower potential, 2,700 MW of wind power potential, and a solar irradiation of 2,100 kWh/m2/year, which is one of the highest in the region. Additionally, the country’s vast agricultural sector provides ample opportunities for biomass energy production.

The government of Mozambique has recognized the importance of harnessing these renewable energy sources and has set ambitious targets for their development. The National Energy Strategy (2018-2043) aims to increase the share of renewable energy in the country’s energy mix to 50% by 2030 and 100% by 2043. To achieve these goals, the government has introduced various policies and incentives to promote investment in the renewable energy sector.

One such initiative is the Renewable Energy Feed-in Tariff (REFIT) program, which was launched in 2014. The program offers guaranteed, long-term power purchase agreements (PPAs) to renewable energy producers at a fixed tariff, providing a stable revenue stream for investors. The REFIT program covers small-scale renewable energy projects with a capacity of up to 10 MW, including solar, wind, hydro, and biomass.

In addition to the REFIT program, the government has also established the Mozambique Energy Fund (FUNAE) to provide financial support for renewable energy projects. FUNAE offers grants, loans, and guarantees to both public and private sector entities involved in the development of renewable energy projects. The fund prioritizes projects that contribute to rural electrification and energy access for low-income households.

These initiatives have already started to bear fruit, with several renewable energy projects currently underway in Mozambique. One notable example is the Mocuba Solar Power Plant, which commenced operations in 2019. The 40 MW facility is the country’s first large-scale solar power plant and is expected to generate enough electricity to power approximately 175,000 households.

Another promising project is the Metoro Wind Farm, which is currently under development in the Cabo Delgado province. The 120 MW wind farm is expected to be operational by 2023 and will be the country’s first utility-scale wind power project. The project is being developed by a consortium of international and local partners, including the Africa Finance Corporation, Climate Fund Managers, and the Electricity of Mozambique (EDM).

While these projects represent significant progress in Mozambique’s renewable energy sector, there is still much work to be done to fully realize the country’s potential. Challenges such as limited grid infrastructure, lack of technical expertise, and difficulties in securing financing for projects remain barriers to the widespread adoption of renewable energy in Mozambique.

However, with continued government support and increasing interest from international investors, the future of renewable energy in Mozambique looks promising. By harnessing its abundant natural resources and investing in sustainable energy solutions, Mozambique can not only meet its growing energy demands but also contribute to global efforts to combat climate change and promote a greener future.

A Guide to Petrol Station Pumps Costs and Prices In Tanzania

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One of the crucial questions potential petrol station investors ask when they call us is: How much does a petrol station pump cost?

Although this is a difficult question, I will explain some general pricing guidelines for fuel station pumps.

Fuel pumps are much like purchasing a car or Laptop. With so many options available, prices can range dramatically.

It is easier to know the costs once you figure out the type of fuel station pump you want.

The first factor you need to consider when purchasing a petrol station pump is to identify your actual needs.

Your supplier should focus on helping select petrol station pumps that are tailored to your unique needs rather than focusing on closing sales.

Before purchasing pumps, it is essential to determine what your specific needs are. For example, if your petrol station has a large distance (more than 25 meters) between pumps and storage tanks, purchasing submersible pumps rather than sanction pumps is advisable.

Read:Are You Clear and Very Specific About Costs and Requirements For Running Petrol Stations?

Also, if the type of traffic passing at your petrol station, large vehicles and long haul trucks mean you need a petrol station pump with high flow rates.

Suitable petrol station pumps for your site are flow rates of 250 liters per minute or 500 liters per minute.

Furthermore, suppose the vehicle passing at your petrol station location are mostly small vehicles and tricycles. In that case, the petrol station pumps with a flow rate of 40 liters/min or 70 liters per minute are recommended.

Also, it is helpful to know the number of products such as diesel and petrol and the number of nozzles. All these factors determine the price of fuel pumps.

What Are the Prices of Fuel Pumps in Tanzania?
Most reliable and durable pumps will cost Tsh 7millions to Tsh 25 million.

Unfortunately, some investors only focus on the initial prices of the pumps, intending to find the cheapest supplier, therefore sacrificing quality and warranties, which inevitably leads to regret,

It is advisable to conduct comprehensive due diligence before committing. This will help protect your capital and reputation.

Viable Opportunities in Off-Grid(Renewable) Solutions in Tanzania and East Africa.

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In Tanzania and Africa, we can only do with the issue of renewable because we have massive potential that we are not harnessing.

In some regions, those unconnected to electric power infrastructure present opportunities for off-grid(renewable) solutions.

Off-the-grid power is absolute, albeit in its infancy in East Africa. Some current opportunities include the following. Viable opportunities exist in solar installations, wind farms, geothermal units, biomass plants, and biofuel generators.

According to experts, solar energy will likely undergo the next significant expansion in energy development in Tanzania and Africa.

Are You Clear and Very Specific About Whether Your Land Is Viable For Petrol Station Business?

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Are you clear and specific about whether your site is a suitable petrol station?

One challenge investors face is identifying suitable land for their next petrol station.

The mistake of building a petrol station at a lousy site makes investors lie awake at night, crippled by the thought of their petrol station business going to bust.

Choosing a suitable land increases your chances of success so you can sleep at night without worrying about the future of your business.

Here is a step-by-step guide to knowing sites suitable for the petrol station business.

1. Traffic count. A good petrol station location is determined by checking the traffic count on the road before you. Determine the quantity and type of cars and vehicles passing on your site daily.

By collecting data, you will estimate the fuel volume you expect to sell in your trading areas and project the monthly fuel volume your location might sell. 

This will also identify whether there is an opportunity to achieve greater volume. It will also aid you in determining infrastructure requirements, such as the fuel storage tank’s capacity to buy for your new site.

Read also: Are You Clear and Very Specific About Costs and Requirements For Running Petrol Stations?  

2. Competition: It is crucial to understand who your closest competitors are in your trading areas and identify their strengths and weakness and what volume they are achieving.

If there are already other petrol stations existing in the same trade area. Identify their financials and what volume they are achieving. 

 Identify how did they achieve those financial? What strategies are they using, and who are their suppliers?

3. Visibility:  How easily can the motorist/customers see the location? Check visibility from the road time taken for drivers to slow down to enter the petrol station

4. Accessibility:  How easy is it for your customers to get to the location

5. Security  How safe is the location? This is critical to control theft. Ignore this and watch robbers flock in now and then.

Whether you are new to the fuel industry, add to your portfolio of fuel filling stations or look to buy the fuel stations that already exist in the market. Selecting the right location for your fuel station is crucial to maximizing profit and ensuring your business’s long-term success.

If you are considering opening a new petrol station, get comprehensive due diligence before setting up of petrol station.

A lot goes into assessing the feasibility of a petrol station site. But no need to stress. 

Our team has worked with several investors like you to help them make informed investment decisions and protect their capital and reputation.

What to Look For In A Local Partner That Will Be Your First Choice In Your Energy Project?

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Doing business in Tanzania and Africa takes work. When the truth is complicated and hidden, finding what you need to know to make informed decisions in a business relationship is critical to the long-term success of your project

Whether you are looking for a consultant, equipment supplier, or subcontractor to support your energy project’s success in Tanzania, making an informed decision based on complete and accurate information will be your best protection against business loss.

Here are some characteristics to consider when looking for a local partner in Tanzania and Africa.

1.Exposure and experience in the market.

The energy industry is unique because our value chain has many players with different interests.

A person who knows this market and is versatile with relevant players will enhance your clarity and help asses risk and maximize opportunities.

Before committing, you must assess your prospective local partner’s experience level and track record.

Working with experienced local partners who understand the unique challenges of our industry and local business environment is critical to get outstanding results compared to “good enough.”

2.Trustworthiness and integrity.
Another essential trait to look for in your local partner is his ability to deliver as they promised. Testimonials and references from previous work can help you make the right decisions. Also, agreeing on the deal with a letter of agreement or contract is vital to avoid misunderstanding and dissatisfaction. It would be best if you insisted on getting everything in writing.

I hope this help.

Tanzania – A Gas Nation In Development.

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It took a long time until the first gas was produced at Songo Songo field in Tanzania in 2004. Since then, several developments both onshore and on land have been made in Tanzania

In 2004, Canada- based orca exploration under its subsidiary Mauritius –based firm Pan African Energy started producing gas at Songo Songo field.

Also in 2015, Pertamina-owned Maurel & Prom partnered with Alberta-based Wentworth Resources, and the state-owned oil company Tanzaniapetroleum development corporation started to produce gas at the Mnazi Bay field.

Furthermore, Shell and its joint venture partners, London-based Ophir Energy and Sinagapore-based Pavilion Energy operate block one and Block 4 offshore Tanzania and have discovered about 17 trillion cubic feet of gas in both blocks.

Meanwhile, the Norway-based firm partnered with Exxon Mobil and found 22 trillion cubic feet of natural gas in block two offshore Tanzania.

The Development of Tanzania LNG.

In March, Tanzania’s Ministry of Energy and Minerals announced an agreement with Anglo-Dutch major Shell and Norway’s Equinor to develop a long-awaited LNG project in the south of the country.

The ministry said negotiations had reached a successful conclusion, and a Host Government Agreement is now being drafted, alongside a production-sharing contract covering the offshore acreage involved.

A final investment decision (FID) is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID.
Construction time will likely be five to six years, suggesting the large-scale project could come on-stream around 2030.

A Brief History Of Oil and Gas Exploration in East Africa

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East Africa is the emerging hydrocarbon province of the 21st Century – but it is worth remembering that this success comes after six decades of unsuccessful exploration.
The exploration success in East Africa in recent years has been an exciting development and the resources discovered have the potential for great benefit to the countries involved.
So far three, maybe four billion barrels of oil have been discovered onshore in Uganda and Kenya and 200 (or more) Tcfg offshore Tanzania and Mozambique. Suddenly East Africa is on everyone’s radar. Let’s take a look at the history behind this apparently sudden success.

East Africa Exploration Time Line

A Map Guide to Exploration History in East Africa

Exploration in East Africa actually started early last century, beginning with Anglo-American’s Dudley Expedition to Abyssinia in 1920. The biggest effort was in Uganda and the Eritrean Red Sea where there was extensive shallow drilling around oil seeps. Systematic exploration did not commence until the 1950s, however, and it is there we’ll begin this review of the exploration activity in the region, decade by decade, looking at the pattern of exploration in the different countries, the companies involved, the objectives they pursued and what drove the fluctuating interest

Permits in East Africa 1950 – 2010

Showing wells drilled during each decade.

  • 1950s: During the worldwide surge in exploration after WW2 the Horn of Africa was seen as a potential extension of the Arabian oil province. When Sinclair Oil commenced field work in Somalia and Ethiopia, their first activity, they reported, was to scan the region for other structures similar to Saudi Arabia’s legendary Ghawar. BP/Shell were prominent in the then British colonies of Kenya and Somaliland but large American companies such as Mobil and Sinclair were conspicuous too, as was the Italian AGIP. 36 wells were drilled in the ‘50s, with many being stratigraphic rather than structural tests, including wells on the seeps along the shore of Uganda’s Lake Albert. There were encouraging oil shows in Sinclair’s Galadi well in Ethiopia and Stanvac’s wells on the Daga Shebel seep in what was then British Somaliland.

  • 1960s: Exploration activity increased slightly in the 1960s but permit areas decreased in Ethiopia and northern Somalia. The number of large and small companies was about in balance, though the large companies were still the dominant players. 40 wells were drilled but, while reflection seismic surveys offered improved prospect selection, few wells had significant shows. The gas flow at Sinclair’s Agfoi-1 in Somalia was probably the high point of the decade onshore. In the Red Sea, Mobil’s C-1 gas blow-out pointed to gas potential.

  • The 70s brought an influx of major companies, primarily into Kenya and Ethiopia, with Chevron, Elf, Total, Burmah, Tenneco and Exxon all making their entry to the region. Conoco took the industry’s initial look at the Lake Albert Basin. The list of permitees in the 1970s has only a few small companies on it. I worked for one of them – Whitestone, a Dallas-based independent – in Ethiopia and Kenya. Over the decade, 27 wells were drilled. Tanzania enjoyed the Songo Songo gas discovery, while Tenneco’s Calub and Hilala gas discoveries and oil shows established Ethiopia’s western Ogaden as a potential new hydrocarbon province. Unfortunately the military coup and war with Somalia brought exploration there to an end. Kenya and Somalia yielded only minor gas flows.

  • Despite these disappointing results, the enthusiasm of the large companies for East Africa saw activity rise to a new peak in the 1980s, driven by the soaring oil price and encouraged by big discoveries nearby in Sudan and Yemen. This increase was largely in Somalia and in Kenya, where exploration moved into the Anza Graben. In Ethiopia the main activity was a Russian co-operative project in the Ogaden. Exploration commenced in the interior Karoo basins in Tanzania, and along the lake basins there and in Burundi. 58 wells were drilled, 42 wildcats and 16 appraisals. 8 of these were following up Tenneco’s Ethiopian Ogaden discoveries; 2 trying unsuccessfully to prove commerciality at the Agfoi gasfield in Somalia, and 5 confirming the Songo Songo gasfield in Tanzania, where a second gas discovery was made at Mnazi Bay.

  • The 90s were a different story. The oil price had collapsed in the late 80s and got worse through the 90s. Local problems exacerbated the situation. Promising exploration efforts in Somalia were aborted after the 1991 Somalia coup and the anarchy that followed, but not before Conoco’s Nogal well encountered oil shows in the Upper Cretaceous/Tertiary Nogal Rift. In Ethiopia, the civil war ended and Eritrea seceded. Only 4 wildcat wells were drilled, 3 in red Sea. The 5 wells in Tanzania yielded no significant shows. In Kenya, Shell’s Loperot well discovered an uncommercial oil accumulation in the Lokichar Basin near Lake Turkana, but a perceived lack of structure discouraged further activity.

  • In the 2000s the oil price hike saw a swarm of exploration companies across East Africa, but, for the first time, the larger oil companies were not part of the onshore scene. The main players were NOCs such as Petronas, proven explorers such as Lundin, and a plethora of small independents. This permitting frenzy did not lead everywhere to a boom in activity. Across Ethiopia, Kenya, and Somalia only 5 wells were drilled – all disappointingly dry. It was a different story in Uganda’s Lake Albert basin, however: the Turacao wells discovered gas and Hardman’s Mputa-1 oil discovery in 2006 changed the game. 25 of the next 28 wells drilled in the region were oil discoveries and Lake Albert was suddenly a giant oil province. In Tanzania’s coastal basin, a string of modest gas discoveries – Mnazi Bay re-visited, Kiliwani, others – were an omen of what was to come offshore.

  • There has been a massive surge in permitting since 2010 in response to the discoveries and almost all basin areas are under permit, save for most of Somalia where security remains a major problem – 95 wells were drilled to end 2013. In 2010, Pweza-1 discovered gas in deep-water Tanzania and numerous other major discoveries followed. In Kenya, Tullow discovered oil in Ngamia-1 in the Lokichar Basin, and have since made several more discoveries. In Uganda, there have been numerous new discoveries and successful appraisal on the Albertine oilfields. Conversely, much anticipated drilling in Ethiopia’s Omo Basin, on trend from Kenya’s Lokichar, was unsuccessful, as was drilling in northern Somalia.

Drilling Over the Decades

Explorers new to the region are often surprised to see that the main players historically in East Africa have been the large international companies; companies like Shell, AGIP, Conoco, Elf, Texaco, Amoco, Mobil, Exxon and Chevron. This is an impressive group, to say the least, and they have held East Africa in high regard for a long time. They lost interest in the 90s but many have been lured back by the scale of the recent discoveries.

Wells drilled in each country by decade showing discoveries. (Source: Peter Purcell)The chart of wells drilled in each country per decade shows how discoveries – and oil companies – have moved around the region. Somalia dominated the early decades leading to the Agfoi discovery, but otherwise has had only modest results, while Ethiopia had the Tenneco Calub and Hilala gas discoveries, but size and security problems have weighed against development. The Ogaden has an impressive pattern of good oil shows but no significant flow. Kenya had oil and gas shows in early drilling but the omen of good things to come was Shell’s small Loperot oil discovery in the 90s. Tanzania has the early onshore gas discoveries at Songo Songo and Mnazi Bay and then spectacular multi-Tcf gas discoveries as deep water drilling commenced in the 2000s. Uganda had early shows in stratigraphic wells in the 30s and 50s, and then nothing until the boom of the 2000s.

The trend has changed. From Kenya through Tanzania to Uganda, the chart is soaring. The potential for further discoveries is high. The potential economic benefits to these countries are many. So too are the challenges, both technical and social.

Lessons from History

There are a number of lessons we can learn from this history. For explorers, there is the always useful reminder that early results must be carefully considered, especially where there are seeps and shows involved. There is the encouragement, already taken up by many companies, that the other Tertiary rift basins of East Africa might also host large oilfields, perhaps especially the Western branch which is almost undrilled beyond Lake Albert. There is encouragement from the Lokichar discoveries that portions of the more volcanic Eastern Branch can also be petroliferous. There is also encouragement regarding the potential of offshore Somalia, along trend with the giant gas province to the south. However, we must also remember that the recent discoveries do not upgrade all the basins of East Africa, only those which are geologically analogous.

The history also offers some insights into the complex social and political situation now challenging our industry in these countries. Those decades of unsuccessful exploration bred intense economic frustration but that has been over-printed by the recent successes. Expectations are now very high, unrealistically high, both in terms of economic benefit and further discoveries. East Africa is seen by many as a vast oil province and huge discoveries are expected across the region. These views prevail at all levels of society, right up to the Ministerial offices.

This expectation is adding to social and political conflicts in the region, as groups – local, tribal, national – vie for control of land where they expect oil or gas will be found. Many of the issues are old, but the proximity or promise of oil or gas wealth is an added and complicating factor.

A summary of East African conflict zones. (Source: Peter Purcell)There are several international border disputes near the discoveries or areas of potential, real or imaginary. The Sudan/Kenya dispute over the Ilemi Triangle area, for example, is adjacent to the Lokichar discoveries. Uganda and Congo disagree over Lake Albert borders. Tanzania has disputes with both Malawi and Congo over lake-basin boundaries. Armed conflict in the Ethiopian Ogaden and between Somaliland and Puntland are both invigorated by the perceived promise of oil riches. Offshore, oil and gas potential is a factor in the Kenya/Somalia dispute over the maritime boundary and a contributor to increased tension between Tanzania and Zanzibar.

Where discoveries have been made in Uganda and Kenya, conflicts over entitlements and revenue sharing between local and national communities are already challenging the governments and companies involved. Similar challenges can be expected wherever new discoveries are made. Knowledge of the history of exploration in a region, and the role it has played in shaping community beliefs and expectations, may help companies to understand and manage the complex social and political demands that now confront them in this region.