Top 15+ Marketing Strategies that Differentiate Your Business in Oil and Gas Service Sector

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Like any other industry, the oil and gas energy sector has its own extreme ups and downs.

So, developing a solid business and marketing plan will do more to assure your long-term success. It will help you think honestly about various parts of your business and save you enormous time and energy.

When you are developing your marketing strategies, you need to consider factors that differentiate your business from others.

After having conversations with teams who are service providers in the oil and gas industry, I put together key points that will help differentiate your business.

  1. Don’t rely on referral marketing on new business:

Relationships are still important in the oil and gas industry. People in this industry prefer to do business with people they trust and like.

But in today’s oil and gas world, scouting, word of mouth and relationship are not enough. Oil and gas clients need facts to justify purchase for their business. So, build relationships by focusing on understanding your customer’s business and market.

  1. Complying with industry requirements keeps you competitive.

By highlighting some advantages such as how you comply with trade regulations, local content requirements and licences, you will be more competitive in the market place.

  1. Have targeted prospects and fully utilise data and information providers.

Grabbing opportunities in the highly competitive oil and gas industry, you need to allocate your marketing efforts towards companies with highest demands of your services.

You can achieve this by utilising information providers who will help you to identify high quality leads.

  1. Multi-tasking is crucial to survive in the industry.

The oil and gas industry is volatile and affected by oil price fluctuation in the global market. So, diversification is essential to surviving during the bad days in the industry.

Prepare to reach all three sub-sectors of the energy market: from upstream E&P, through storage and transportation to downstream utilization.

  1. Understand why you lost a bid.

If you bid unsuccessfully for a contract, it is imperative to ask why you were rejected. This will help resolve your weakness on the next opportunity to bid.

 

Related:How To Target The Best Business Prospects For Submitting Proposal For Services

  1. Provide good services on time or earlier.

To survive in this competitive industry, you should provide good services on time. Most of your coming opportunities in this industry will be determined on how you did your last job.

One of the key factors oil and gas companies consider when choosing a vendor is the vendor’s ability to respond quickly. So, do a good job, and they will give you more. Some operations in the oil and gas sector, such as drilling, are _fast-response_ businesses, so delaying, delivering poor supplies or rendering poor supplies will delay and ruin production and hence reduce their profit.

  1. Attend all sales meeting prepared.

To increase your chance of success, you should plan and prepare the presentation for your goods and services prior to meeting with industry clients.

That way, you will have a great presentation of your offer and this will make the decision makers have confidence that you are the right person to be given the project.

  1. Embrace changes.

Industry regulations may become stricter, so make sure you stay ahead of the changed and regulations in the industry and comply with them.

  1. Focus on the highest potential clients

Separating your business in the industry means being more targeted in your approach. You should target and allocate your resources to the business prospects who are likely to demand your services.

  1. Find out other projects unrelated to oil and gas in your area.

In your marketing strategy, make a list of the other project that are not related to the oil and gas sector which your business can be part of. If, for instance, you provide maintenance and repair services to the oil and gas companies, power plant projects might also need your services.

  1. Monitor regions that are growing to tap into new opportunities.                                                     Keeping track of the growing region like East Africa will help you take advantage of the oil and gas opportunities.

  1. Dig deep to understand which companies are likely to have projects and gain insight on the capacity of the projects.

  1. Expand your opportunities by entering new markets or establishing your business outside your geographical area.

  1. Monitor activities and trends in your targeted region. Identify the kind of oil and gas activities going on in your area.

  1. Have an online presence.                                                                                                               Your website is a key part of your marketing tools. After attending a meeting or exchange business cards with professionals at an industry conference, your website is the best place that clients and partners will go to gain high level overview of what you do. So, build a website that will establish your credibility and trust.

  1. Learn what your competitors do in the industry and what works well for them.

  1. Recruit, recruit, recruit.Always recruit even in the downturn.

The Era Of “Handshake” Deals In Oil and Gas Is Coming to an end

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The oil and gas sector is a personal contact industry. The sector has also been a word-of-mouth mode of advertising from the beginning.

It also trues that people in this industry prefer to do business with people they like and trust. Further more the best way to have a chance of winning deals in this huge sector is to target and build a relationship of trust with decision-makers.

The simple truth is that scouting, relationship and word of mouth  are not enough these days.

These days buyers in the oil and gas industry are more demanding  when selecting new suppliers. They demand lower costs. They are looking for better result at competitive prices and within a short period of time.

But there is a common misconception when people talk about the need to build a relationship and trust with prospective clients.

Building a relationship based on trust does not mean you should arrange a dinner meeting and have cold beer or wine with clients to get them to do business with you.

In today’s uncertain economy, the company’s decision-makers focus on results. And they want to know the data backed benefits of working with you.

 

Traditionally, energy companies rely heavily on word-of-mouth to source goods and services. But this method is limited and unreliable.

With the price of crude oil is recovering gradually after going through a major slump in 2014-2016.

Oil, gas and energy supply chain and procurement professionals are continuing to review their supplier networks in greater details and evaluate offerings from new suppliers.

Despite an overall reluctancy to invest in new solutions, oil and gas operators and service companies are more likely to switch suppliers, particularly when they  feel the current vendor is adding inferior value.

If you can be completely transparent with them on how you comply with trade regulations and local content requirements  and be willing to offer them partnerships rather than procuring products and services ,there are opportunities for new suppliers to enter the market and bid on latest tenders

 

Visiting oil and gas company offices, have face-to-face meetings with your purchasers and ask the right questions to identify your client’s needs and make your presentation to address your client’s needs. This can be the best way to build trust..

To stand out in this competitive industry, vendors should be well informed about the best business prospects to target across the industry. They also need to able to monitor clients’ activities and what projects they are likely to execute in the future. That can help service providers to act faster and approach them before anyone else.

This can be frustrating, daunting and time-consuming to do this type of research. To save time and effort, work with a reliable partner who can help you monitor the oil and gas company activities in East Africa or Africa at large and receive an update on hot leads that will streamline your business.

How The East African Energy Industry Is Preparing For Growth In The Demand Of Liquefied Natural Gas (LNG).

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With substantial natural gas discoveries in the past ten years, East Africa has the potential to be a new source of global energy supply.

For example, Look at what is happening in Mozambique. The latest Final Investment Decision (FID) on the US led 20billion Mozambique LNG project is one of the largest to be sanctioned in Sub-Saharan Africa within the first nine months of the year.

Also, look at what is going on in Tanzania. The US led $30 billion LNG project is in it’s planning phase. The project will play an important role in the global LNG supply chain.

China’s Thirst For Gas

East Africa is next door to China’s gas market and China’s need for the alternative source of energy is much greater. Air pollution is a major issue in Chinese cities. The country wants to reduce its reliance on coal, and minimize carbon dioxide and other emissions.

 

Read.  Dodsal Group Prepares To Drill Three Wells On Shore Tanzania

Furthermore, China imports Gas by sea in the form of LNG from different parts of the world including Russia, Myanmar just to name a few.

According to the oil rush, China’s government expects a three-fold increase in gas demand within 15 years. China is struggling to meet its Gas demand and East Africa is in a great position to help meet them.

Furthermore, India consumes 22 million cubits of Liquefied Natural Gas a year. The rate is expected to increase in the next 5 years.

The chairman of Gail India Ltd pointed out that his company will buy more LNG in 2023 and 2024.

A new Stifel report says: “The Japanese have been very hesitant buyers of U.S. LNG recently, and seem to prefer Mozambique for their future needs as Japanese buyers are less interested in Henry Hub and do not want to risk dealing with a small development companies.

Given that a substantial increase in demand is expected, if East African would further their LNG projects, Asian buyers would no doubt be interested in buying.

Insider’s Tips On Doing Business With Large Oil & Gas, and Energy Companies

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Imran  Pishori, C.E.O, US based firm AP Central

Are you a supplier or diverse contractor trying to grow your business in the oil and gas sector?

Are you a service provider looking for potential deals within the oil and gas industry?    Or simply a trader looking to take capitalize on the $2 trillion oil and gas sector?

If the answer is “YES” to any of the above questions, then listen:

 

I have reached out to Imran Pishori, Chief executive officer of the US based firm, AP central. Imran Pishori has been in the industry for years and has supplied goods and services to many multinational oil and gas companies across the world, including Tanzania, Egypt, United States just to name a few.

 

In this exclusive interview, he gives insights on how oil and gas companies acquire goods and services, the best marketing approach, things to avoid with prospective and existing customers and many more.

 

Hussein Boffu brings the excerpts.

Q: Based on your previous experience how do oil and gas companies handle purchases?

 A: Oil and gas companies want to streamline their purchases and prefer to go through a direct supplier than having middlemen doing the purchasing for them. This has many advantages such as:

  1. One central point of contact.
  2. Companies don’t have to deal with Terms and Conditions and set up multiple vendors in their system once they are set up with you.
  3. Multiple items with numerous vendors can be combined in one purchase order saving overhead cost for the company.
  4. Expediting, shipping and consolation of the goods can be done by the supplier.

 

Q: How do you prepare for sales meetings with oil and gas industry prospects?

 

A: The first thing first is to find out what projects they currently have and what their needs are, then how you can help them. Be confident that you have a service/product that they need and you can help them.

 

Q: How do you research prospective companies before the meeting?

 

A: Go to their website and read their government fillings such as 10K to get an overview of the company, their financial situation, and possible new projects.

 

Q: How to make a persuasive presentation to oil and gas industry buyers?

 

A: Be prepared. Know who you are meeting and sell them how you can be a benefit to their company by the services you can provide.

 

Q: What not to do with prospective oil and gas industry buyers?

 

A: Please, never manipulate or push your clients to get sales. Nobody wants to be pushed to make a buying decision, and once you do so, your clients will notice. Instead, identify needs and ask questions to identify your client’s needs and make your presentation to address your clients‟ needs.

Your goal is not to push sales. Your goal is to solve your client’s problems with your product and services. Overcome objection wisely and be knowledgeable about your products or services.

 

Q: What is your best marketing strategy?

 

A: The oil and gas industry is built on relationships. This also includes word of mouth and personal contacts in the industry. So, relationships and networking are key to finding opportunities in the industry.

Mozambique’s Gas Projects Enter Implementation Phase

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With a second FID in just 2 years, Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come. The latest FID on the US$20 billion Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas. Described by His Excellency President Nyusi as “one of the most important and transformational projects in the country’s history”, Mozambique LNG is set to be a game-changer for this East African nation of 31 million people.

According to Wood Mac, from the early 2030s state revenue from Mozambique LNG alone will reach US$3 billion per annum, single-handedly doubling today’s revenue as calculated by the IMF and World Bank.

And this is not the only mega-LNG project on the drawing board. ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID. Meanwhile, Italy’s ENI is already moving ahead with its 3.4 million tpa floating LNG facility, which will draw on 5 TCF of gas in waters more than 2,000 metres deep with first gas due in mid-2022.

“With strong LNG demand growth out of Asia, now is Mozambique’s time,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.

Read also: Online Platform Connects Suppliers and Oil, Gas Companies Buyers

With FIDs signed, the projects are now moving from the planning into the implementation phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and services needed to build and develop the megaprojects.

More recently, on October 8th, Mozambique Rovuma Venture (MRV) Area 4 operator decided to move ahead with the midstream and upstream project activities of over US $500 million as initial investments. These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.

It makes this the ideal time to participate at the 6th Mozambique Gas Summit & Exhibition, in partnership with ENH, taking place on 13-14 November in Maputo. The event is the official platform to hear from key decision-makers in this fast-emerging LNG hotspot, including key Government figures, policy-makers and all the major project stakeholders who will be in attendance. This edition is taking place at a time of exciting change including; the construction of FLNG, the progress in drilling activities in Cabo Delgado and Angoche, and the infrastructure development in Pemba Logistics Base. The event is organised in partnership with ENH, with support from MIREME, INP and industry stakeholders ExxonMobil, Total Mozambique LNG, TechnipFMC, FNB, Sasol, Baker Hughes, Standard Bank and G4S.

More information at: https://www.mozambique-gas-summit.com/

New Online Platform Provide Destinations For Suppliers and Oil and Gas Companies to Connect

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I have had an in-depth discussion with some procurement and supply chain managers from oil and gas companies operating in Tanzania. And some of their key problems were to locating and communicating with suppliers of goods and services faster and easier.

Equipment and service providers, however, often struggle  to make themselves  visible to these oil and gas companies.

Therefore, oil and gas companies  and suppliers can’t find and locate each other on time.

That is terrible. Because suppliers are missing out on huge opportunities to increase revenue and grow their business in the energy industry. In turn, energy companies reduce efficiency in their business operations.  Because turnaround time in the procurement increases.

This article explains the limitation of current strategies,  oil and gas companies and vendor use to find and connect each other and expose you to the powerful tool we have in  disposal that will connect oil companies and suppliers faster and easily

1.Via Supplier’s List
Oil and gas companies often keep a suppliers list, and they send bidding invitation to those who are registered in their database as a supplier or vendors. In reality, oil and gas companies are limited to their existing suppliers and are not capturing the cost and schedule benefits that variety and increased competition provide

2.Cold calling

This is another option for vendors to find customers in the oil and gas industry. Cold calling can be done by phone or door-to-door visits. Suppliers would visit oil and gas companies‟ head offices and use their marketing skills to promote the products and services they sell to procurement or supply chain managers. But the associated travel costs and the risk of not connecting with the right point of contact weaken this strategy as well.

3.Via Referral:

The oil and gas industry is considered as the very word of mouth or personal contact industry. So traditionally suppliers and oil companies have relied on word of mouth to locate each other. But this method is unreliable and time-consuming. Finding suppliers through referrals only recycles the vendors within a particular network and does not guarantee that an acceptable vendor will be found for a given project.

Many in the oil and gas industry have realized the limitations of word of mouth sourcing and have turned to conferences and expos to find partners. Industry events are beneficial in that they provide a common meeting place for companies to connect with new and existing partners, but there are significant drawbacks as well. Conferences cost thousands of dollars for exhibitors, travel fees can be substantial and there is no guarantee of new customers after an event.

4.Internet.

The other option oil and gas companies hope to connect and find each other is the internet. Oil and gas companies and suppliers go online to locate each other. They use search engines to google relevant key words to get names, emails or phone numbers. They also use social media networks such as LinkedIn to find each other. The internet can provide a lot of points but the simple truth is that the internet has not built for the energy industry. So most of the information oil and gas professionals are looking for are incomplete. Also, only a few local suppliers have online presences such as websites and social media networks. And those who have, they heavily rely on traditional marketing strategies that have a shorter cycle of influence. As a result, supplier missing out huge business opportunities because are not being noticed by the large oil and gas companies.

Limitation of other methods.

Supplier prequalification requirements:Another supplier sourcing problem is standard and evaluation criteria in finding the right vendors. Licenses, permits, certifications, equipment manpower are important criteria for oil and gas companies. The sad reality is that it takes longer to gather all this information. Consequently, qualified vendors miss out on opportunities simply because oil and gas companies do not have all the information.

Suppliers- buyers relationship. This is a huge challenge. Oil companies want to work with local suppliers effectively. So finding the right point of contact at the right office location is important and finding the project manager or procurement who will put his business name in the vendor’s list is important to suppliers. But this process is often not well organized. And purchasing -related communications between suppliers and vendors get mishandled.

Introducing  online Suppliers directory
Tanzania petroleum has created an online suppliers directory as part of its website to connect suppliers and oil and gas companies.

The low-cost tools is married with social media networks and available 24-7.

The suppliers’ directory enables suppliers and service providers to quickly easily create a business listing to promote their products, services and showcase their companies to oil and gas companies.

Suppliers can distinguish themselves by posting their logos. The online suppliers’ directory allows vendors to write a brief description of their business, posting their contact details including phone number, email address, office locations, and website links.

All suppliers are verified by collecting their detailed information such as the company profile before listed in the directory.

Interested to promote your services and products and be instantly found with buyers in the oil and gas industry. Here is link on the instruction on how to list your business on our online suppliers directory.Click here, Suppliers directory

INTERNATIONAL TechnipFMC, JGC and Fluor consortium awarded Mozambique contract

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TechnipFMC has announced that JFT – a consortium between JGC Corporation (JGC), Fluor and TechnipFMC has been awarded an Engineering, Procurement and Construction (EPC) contract by Mozambique Rovuma Venture S.p.A. (MRV) for the Rovuma LNG onshore LNG production complex project located in Cabo Delgado, Mozambique.

Read: Dodsal Group Prepares To Drill Three Wells On Shore Tanzania

MRV, a joint-venture composed of Eni, ExxonMobil and CNPC, holds a 70 per cent interest in the exploration and production concession of Area 4, with Galp, Kogas and Empresa Nacional de Hidrocarbonetos (ENH) each holding a 10 per cent interest.

The Rovuma LNG Project will produce, liquefy and market natural gas from three reservoirs of the Mamba complex located in the Area 4 block in the Offshore Rovuma Basin. It includes the construction of two natural gas liquefaction trains, with a total LNG nameplate capacity of 15.2 Mtpa, as well as associated onshore facilities.

Nello Uccelletti, president Onshore/Offshore at TechnipFMC, commented: “We are extremely honored to have been awarded by MRV this new prestigious LNG project along with our long-time partners, JGC and Fluor. This award confirms the market recognition of TechnipFMC’s expertise and track record in gas monetisation and, in particular, in the LNG industry. It also reinforces the Company’s positioning in the energy transition journey.”

How To Become a Supplier/Vendor To Songas

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              Brief Information About Songas

• Songas started operations in year 2004 under PPA

• Shareholders of Songas are: Globeleq, TPDC, TANESCO and TDFL

• Songas operates six gas turbines at UPP: 2 SGT600 + 4 GE LM6000 PC gas turbines

• The gas turbines use natural gas to generate electricity.Songas generates about 180MW of electricity or 25% of electricity supply in the country.

The natural gas is transported by pipeline over 225 kms from Songosongo island to Dar es Salaam. Songas is responsible for maintenance of the gas pipeline wayleave. Excess gas is used by over 28 factories in Dar es Salaam

Related:New Online Platform Connects Suppliers And Oil and Gas Companies Buyers In Tanzania

Songas Procurement Policy and Procedures

  • Songas purchases is guided by the procurement policy and purchasing procedures:
  • Provide guidelines on the procurement authority
  • Competitive bidding and its exceptions
  • Integrity
  • Health and safety
  • Compliance requirements
  • Against Corruption and unauthorized payments
  • Fairness
  • Supplier registration
  • Bid evaluation etc
  • Songas purchases goods and services under competitive bidding with minimum of three quotations
  • Exceptions to competitive bidding are:
  • Original equipment manufacturer (OEM)
  • Emergency purchases
  • Consultancy services or sole supplier

 

What Songas Buys- Services

Songas sources following services

  • Catering services
  • Freight clearing and forwarding
  • Car hire
  • Air ticketing
  • Cleaning services and security
  • Consultancy in various services: HR matters, legal, taxation,
  • Civil services
  • Soil erosion control on wayleave of gas pipeline
  • HSE services
  • Internet supply
  • Banking services
  • Waste disposal and collection
  • Civil, construction and engineering service
  • Repair services
  • Insurance services
  • Hotel services etc

 

What Songas Buys- Services

Songas sources following goods

Inventory Items:

  • Consumable parts and materials of different types
  • Mechanical parts, spares, machinery, equipments
  • Safety items
  • ICT items
  • Chemicals of different types and categorie
  • Electronics
  • Electrical parts, spares and equipments

 

  • Non-Inventory Purchases:
  • Capital goods
  • Vehicles
  • Spares, machinery and equipments
  • Building materials
  • Various materials
  • Cable
  • Etc

          How To Become  a Supplier or Vendor To Songas

  • Supplier/Vendor must be able to quote competitive rates, correct specifications and quality and timely delivery
  • Supplier/Vendor should provide warranty for:
  • goods supplied an
  • services supplied
  • Supplier/Vendor must be able to communicate online using email, internet etc. As all inquiries are sent via email
  • Supplier/vendors must be a legal entity; with registration documents like BRELA registration, TIN, VAT, business licence, clearance certificate, banking details
  • Understand Health, safety and Environment Protection
  • Must not entertain corruption practices, unauthorized payments and must have high integrity
  • Must have skills, capabilities and resources to fulfil the orders
  • Consider HSE (health, safety & environment) issues in all orders and activities

Dodsal Group Prepares To Drill Three Wells On Shore Tanzania

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Despite the downturn in the global Oil and Gas markets, Dodsal has remained active in Tanzania. It has exceeded the requirements of the PSA and is fully committed to developing the Ruvu Block. Mobilisation of the rig and associated services are under way in preparation for drilling three exploratory wells starting in the 4th Quarter of 2019.

 

 

The UAE based Dodsal Group is one of only four Platinum Sponsors at the 3rd Tanzania Oil and Gas Congress being held in Dar es Salaam on the 2nd and 3rd of October 2019. The Congress, which attracts industry professionals from across the entire global value chain, is a platform for strategic networking and opportunities to develop and expand business partnerships.

 

Read also:New Online Platform Connect Suppliers and Oil and Gas Companies Buyers In Tanzania

The Dodsal Group, which was founded in India in 1948 by the Kilachand family, transformed from a family trading enterprise into a multi-billion-dollar organization under the stewardship of the current Chairman Dr Rajen A. Kilachand. The Group, which has served customers in Africa, the Middle East, Asia and Europe, has a long association with Tanzania which dates back to the 1970’s when Dodsal carried out construction work on the Tazama Crude Oil Pipeline, and the TIPER Refinery Extension in Dar es Salaam.

 

After expanding into the Oil and Gas Exploration and Production sector the Group signed a Product Sharing Agreement (PSA) with the Ministry of Energy and Minerals and the Tanzania Petroleum Development Corporation (TPDC) in 2007. As part of the acquisition Dodsal inherited legacy data, before acquiring multi-fold 2D seismic data which provided a blueprint to drill three exploratory wells. The campaign proved successful and gas was discovered in the concession known as the Ruvu Block. Independent third-party expert analysis estimates that the block’s hydrocarbon resources range from 5.5 to 7.5 trillion cubic feet of mainly Methane with little impurities.

 

Twelve years on, Dodsal is embarking on the next round of drilling and appraisal. Despite the downturn in the global Oil and Gas markets, Dodsal has remained active in Tanzania. It has exceeded the requirements of the PSA and is fully committed to developing the Ruvu Block. Mobilisation of the rig and associated services are under way in preparation for drilling three exploratory wells starting in the 4th Quarter of 2019.

 

“We are very grateful to the Government of Tanzania and its Honourable Ministers for giving us this opportunity, and for the unstinting support we have received from our partners PURA, TPDC and other stakeholders.  We are very committed to the development of the Ruvu Block project and in moving it forwards we will apply Oil and Gas best industry practice throughout our operations, ensuring that we perform to the highest level of health, safety, environmental and social standards.” Dr Rajen A. Kilachand, Chairman of the Dodsal Group said.

 

Read also:      Aminex See Significant Progress In Its Tanzania Assest

 

Dodsal are committed to continuing the positive impact they’ve already made in Tanzania. They will continue to offer career opportunities to Tanzanian nationals in areas of geology and drilling, as well as other semi-skilled professions.

 

“We will continue to improve the lives of the those living in local communities and ensure we leave behind a legacy of improved services and infrastructure.” Dr Kilachand said, adding that “Since 2007 we have taken great pride in constructing roads and railway crossings, and making improvements to schools, medical and emergency services.”

 

During the forthcoming campaign Dodsal will aim to materially establish commercial gas volumes and are expecting to be ready for production of the first gas in 2020. Dodsal is fully committed to delivering sustainable energy for local consumption for Power Generation and Industrial requirements, and for further exportation of gas to neighbouring countries.

 

For further information on the Dodsal Group and their activities in the Ruvu Block visit them at the Tanzania Oil and Gas Congress 2019.

 

 

Aminex See Significant Progress In Its Tanzania Assest

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UK-based Aminex Oil and Gas Production and Development Company, says there is now firm evidence of a gradual unlocking of the approvals processes in Tanzania – its main area of focus.

“We are encouraged that the delays the company has experienced over the past 18 months in being able to pursue our operations programme in Tanzania appear to be finally coming to an end,” chief executive Tom Mackay said.

“We continue to see significant potential in our assets in Tanzania and look forward to being in a position to deliver value for shareholders,” Mr Mackay added.

His comments came as the company reported a loss of $2.19m (€2m) for the six months to June 30, down from a loss of $2.36m in the same period last year.

Read also: Total closes Anadarko’s Mozambique LNG acquisition for $3.9 bln

The group reduced its administrative expenses by 20pc over the period, according to its interim results. Revenues from continuing operations amounted to $140,000, down from $340,000 last year.

The turnover during the first six months of 2019 related to the provision of technical and administrative services to joint venture operations, as there was no production from its Kiliwani North-1 site in Tanzania.

Meanwhile, Dublin-listed Ormonde Mining reported a loss after tax of €1.1m in the six months to end-June, an increase on the loss of €411,000 in the same period last year.

Of this, €1m related to its associate investment in the Barruecopardo tungsten mine in Spain, according to interim results from the company.

The group has a 30pc joint venture interest in the mine.

The loss represents the start-up period for the mine, from which first concentrate shipments are expected shortly.

Elsewhere, PetroNeft Resources reported a loss of $2m in the six months to June 30.

This was an increase on the loss of $1.2m seen in the same period of 2018.