picture of gas pipes
INVESTMENT OVERVIEW: SOLO The Big Picture
More 3D siesmic may be on cards at Ruvuma

Solo Oil PLC (LON:SOLO) will focus on monetising its Ntorya gas prospect in Tanzania in the coming year, according to executive chairman Neil Ritson.

Speaking to Proactive Investors, he said this may also mean the Ntorya-3 appraisal well is delayed in favour of acquiring another batch of 3D seismic over the licence.

Ntorya-3 may not be in the best place

We would like to drill it, he said, but Ntorya-3 may not be the best place.

So we’d rather go down the 3D seismic acquisition route and know exactly where the next well should be drilled.

Read Also: (How To Turning Oil and Gas Business Opportunities Into Large Profit Margin

Watch: Solo Oil ‘at a very important point in its development’ – exec chairman Neil Ritson

Ritson also played down concerns over the flow rates seen from the recent Ntroya-2 appraisal well.

The reason these were below the flows seen previously were well-bore related he said, an issue that should be resolved as it moves to production.

“Everything looks good”.

The reservoir was 50m or twice as thick as the first well and In place, there is half a TCF (trillion cubic feet) of proven gas volume and it is clearly commercial.

The need now is to turn it into a 25 year development licence and agree the work programme and schedule.

Ritson added it is also working on a gas demand survey that will be published shortly to understand why demand for gas from the producing Kiliwani field, also in Tanzania, is lagging. He said it is getting paid and in US dollars.

But the focus is Ruvuma, where he said a read through from a broker note on partner Aminex plc (LON:AEX) pointed to a value of US$100mln.

He added Ruvuma was also a classic case study of how Solo operates.

“Get in early and put in money highly leveraged to value.”

“Now Ntorya is demonstrably going to be commercial, we are looking to take money off table and re-invest elsewhere – and in the short term this means the Helium One project also in Tanzania.”

Solo has taken a 10% stake in Heiium One but wants to double its to 20%, something Ritson admits he needs to explain to shareholders.

“It’s new for us so we need to get shareholders  to understand why we are doing it, why we are doing it now and our first mover advantage here.”

Helium is used for MRI imaging, industrial processes, and so on. World demand is 6Bcf per year and Solo’s asset contains 100Bcf, os it is a world class aseet he says.

Patience required at Horse Hill

Finally, Solo is also a 10% stakeholder in the Horse Hill exploration well in Sussex.

An application to carry out appraisal testing and further drilling is on the council’s agenda for July and he says the HH consortium is happy to be patient as they are confident the long term flow test results will confirm “what we saw on short term tests.”

What is it worth?

Shore Capital tweaked its price target higher following as assessment of the appraisal drill result at Ntorya.

It follows a similarly bullish assessment of Solo’s partner Aminex (LON:AEX) last week from the broker.

The Ntorya-2 result has increased discovery size and de-risked additional prospectivity, said Shore.

Meanwhile, the 10% stake (possibly rising to 20%) stake in Tanzania-based Helium One interest represents a highly accretive and complementary acquisition.

Issues over the flow rate are not materially detrimental according to the broker and the current value offers an attractive entry point in anticipation of further drilling, development licence award and finalisation of early production plans at the successfully de-risked Ntorya discovery.

Including Helium One’s Rukwa project; the risked NAV (net asset value) estimate is upgrade

If you are wondering what’s oil marketing companies?  These are companies that market sell and distribute product come from crude oil such as diesel , kerosene gasoline (petrol)

Lubricants,   cooking gas or liquefied petroleum gas (LPG) or simply gas as everyone call it .

These companies are in part of downstream segment of the oil and gas.

There are money oil marketing companies in Tanzania, But the outlined are due to the growth of  their market share.

1. PUMA Energy and
2. Oryx Energies
3. GBP
4. CAMEL OIL
5. Lake oil
6. ToTAL
7. MOIL
8. GAPCO
9. OIL COM
10. STAR OIL,
11. MOGAS,
12. ACER
13. MT. MERU
14. HASS,
15. PETROL FUELL
16. ENGEN,
17. PETRO
18. AFRICA DELTA

Read Also:  List of companies searching and extracting oil and gas resources in Tanzania

Are you want to double your earning in the next 12 months? Are you rack brain for perfect business opportunities in Tanzania?

If you answer yes to everything above, then why not make money oil and gas sector?

The oil and gas demand in Tanzania is growing at a quick rate. But a little professional knowledge about oil and gas sector. You can become on your way to a profitable oil and gas business.

No matter who you are or your status. The perfect opportunity is just waiting for you.

So you want to double your earning from oil and gas? Then sell something. The only way to make money in the oil and gas is to sell something. Got it?

And the only two things you can sell is a product and a service. Nothing more to those facts.

So what if you don’t have products to sell? Simple. Just sell someone product and earn a commission. Simple as that

Now I want to toss you is the idea that you can increase earning in the Tanzania Petroleum industry.

Become facilitator
Open your eyes and research items that are selling fast in Tanzania oil and gas sector.In this case, take Personal Protective Equipment (PPE) as an example.

Are these safety shoes, gloves are selling fast in Tanzania? If you discovered yes. Go online or even google whatever you want to do. And make a list of both local and international companies offering PPE.

Once you are done, Kickstart visit company offices and ask them to be representative of their products. Now after that go out, and use all marketing skills you can master to introduce your items to your highly target clients.

Make sure you agree with them to give you some percent for each purchase is made. Many international companies are keen to expand the market in Tanzania. With a good approach, you are smile to your bank

Still Confusing, Let me give one more example. Do you know Liquefied petroleum gas (LPG) also is called cooking gas (gas to cook your food) or simply GAS as everyone call it. Is one of the fast selling items in Tanzania.

So, if you don’t have start -up money to buy cylinders. Go and find a local dealer, negotiate a deal. You find a customer who needs to refill their cylinders. You deliver your customer with gas and earn a commission.

Read also:How-to-start-cooking-gas-distribution-business-In-Tanzania.

This might be stressful as you start. But once your business starts growing. You will have tons of customers. You can do the same way and sell those petroleum products such as diesel, kerosene petrol, and even lubricant.

If you are starting out with minimal capital, This is the best way to earn excellent money without investing a cent.

2:Start with frustration
I’ve told you before, but I’m still going to tell you. You want people to give you their hard earned money. Although that is important, about their money. What do problem people have in oil and gas sector?

If you say to me the problem is employment. So what problem do people have finding a job in the oil and gas sector? Is it
that there’s no job? Or because their CV isn’t professional? Or that they lack work experience? What do problem oil and gas company face

List everything out on a piece of paper. Make a list of all problems. And brainstorm on the solutions toward that problem.
That’s all I have to say for now.

The question of the hour is:

What do you have to sell to them? What products or services do you sell? Leave your comment below.

Or just  email me at Hussein.boffu@tanzaniapetroleum.com.      I read all emails.

People reach out to me and ask, what it takes to set up oil and gas business in Tanzania.

So if you’re thinking and you’re passionate about starting any business in oil and gas sector. Follow these three steps

1:Find a niche
Now, you want to start an oil and gas business, pick a niche. Oil and gas sector is large and it divided into three areas.

Upstream portion of the oil and gas sector involves finding areas where oil and gas resources might be and bring them to the surface. It often called Exploration and production

Midstream part i involve transportation and storage of oil and gas from where is found the place where can be processed and refined

Downstream part this involve converting natural gas and crude oil into finished products such as diesel kerosene, gasoline, lubricant, plastics so as can be used by end user

So what’s your niche, if you pick upstream part of the sector your business might be supplying goods and tools to oil and gas companies, providing maintenance, mechanical and construction services, design pipes, welding and pipe fittings to oil and gas platforms

If you choose midstream as your niche, your business would be, selling gas storage tank, transportation of petroleum product through tankers, selling corrosion inhibitors etc

If you’re telling me your niche will be downstream, your business will be selling products made from oil and natural gas such as diesel, kerosene, cooking gas (LPG), gasoline

From business perception, you can’t serve everyone. You can’t say everyone is your customer. You should narrow your market and pick a specific niche.The more  you narrow your niche, the better you increase your winning chance.

Read:11-solutions-to-turn-problems-facing-tanzanias-oil-and-gas-into-business-opportunities/

2:Plan
All business need plan, but oil and gas need it more because of the extremely ups and down of the sector. Your plan should define clearly what products and services you are going to offer, you should have a short description that describes what business you are going into. You plan should include your financial projection, market strategies etc. Developing waiting list is the stressful work for many entrepreneurs but if you discipline in doing it you will find it easier than you think. Your plan does not guarantee you success but not having one is the ticket to failure

3:Start-Up Money
Once you have already picked the market you want to focus and you have a plan, next step is to finance your start up. So how do you get money to finance your business? There are the various ways to finance your oil and gas start-up. This includes equity financing and debt financing. However, if you have a detailed plan, you are creative and determined fund will never be a challenge to you.

The simple truth is there are two ways to learn any business.
1. Trial and error—— you start your own business and you learn as you go from both mistakes and success. The disadvantages of this option it would take you longer to succeed and hit your target
2. Find a mentor——– someone who has already been in a business you are going into and gives you guidelines of such business. This is the effective method because you’ll reach your mountaintop faster than you have ever imagined possible. Because they will give you what works and what do not work out. And you get a mentor by books of the subject related to business or field you intend to start oil and gas business is like that

We have a write a book for you and will be released soon. In this book, you will discover

1. How to start oil and gas supply or services business in Tanzania (Including planning your business, market analysis etc)
2. How to be supplier or contractor in oil and gas in Tanzania(including license and permit you need to get started with your oil and gas supply or services business)
3. How To raise money for your oil and gas supply business
4. How to recognize and pursue potential business opportunities in oil and gas sector in Tanzania
5. How to arrange presentation of your goods and services to the oil and gas companies
6. How to register with various oil and gas companies as a VENDOR (supplier or contractor)
7. How to get deals (winning contract and supply) Including preparing and submit acceptable bid
8. How to raise money for your supply or contract
9. List of services and goods and tools you can start to supply in Tanzania oil and gas
10. Main area of business opportunities in the oil and gas sector in Tanzania
11. Tips to survive in Tanzania oil and gas sector
12. More interesting business opportunities in oil and gas sector

This is “must have” eBook, so if you will need this eBook, please bring your order right now so as we keep you on our “ waiting list” (People who waiting this book). The price of this eBook is 30,000tzsh

This price is 95 discount. And this discount will expire after 2 weeks from today. So keep your order today, another way you will pay more later.

You will never find anywhere in the world the oil and gas book is sold at a fair price like this. I could charge it higher, But I want this book to help more people. I want many people to benefit from the oil and gas sector in Tanzania.

To get into our waiting List
Send SMS at this +255689955711 or shoot me an email at Hussein.boffu@tanzaniapetroleum.com. with your full names and email and we will keep you into our waiting list

The oil and gas industry is divided into three areas the ‘upstream’  ‘midstream’ and ‘downstream’ operations.

Upstream involves finding areas where oil oil and gas might be and  bring it to the surface it safely.

The midstream involve transportation and storage of oil and gas .

The downstream part of the industry is concerned with refining,  processing distribution  so as can be used by end users.

The supply chain

The oil and gas industry has very long supply chains. Many companies may be involved in supplying the materials, components and services at different stages and across the various processes involved in extracting, refining and distributing oil and gas. Procurement becomes even more important in this type of global operation. A company such as BP sources services and supplies from many different countries. These include mechanical and electrical parts, to professional services such as project management or legal expertise for drawing up contracts.

Reliability is a crucial factor in supply, both of quality and timing. If supplies are of poor quality, delivered late or cost more than was agreed, this will affect productivity and profitability. If production is delayed or faulty products need to be scrapped, this can reduce profits. Poor quality inputs could also affect the safety of the process – a major consideration in the oil and gas industry.

For example, to help improve safety and quality of supply, BP is introducing safety performance indicators into contracts of suppliers involved in high-risk activities. Suppliers who do not meet these standards may be removed from contracts. As part of this safety focus, BP is also planning to reduce use of agency staff in procurement roles and boost its in-house expertise in supply chain management.

‘Make or buy’

An important decision for many businesses is whether to carry out a particular part of its process itself (‘make’) or buy in the components or expertise it needs. This decision might depend on, for example, whether the skills and capacity are available in-house; whether there is a need for high security of supply; or whether it is simply cheaper to outsource.

For example, an oil company could choose to rent or own an oil platform. If it rents, its costs are limited to the rental period, with repairs and maintenance the responsibility of the owner. Buying outright might cost more initially but the company has the benefit of the asset. However, it also has the issues and costs of maintenance and ultimately, disposal. Purchasing managers work with operational managers to consider these issues and find the most cost-effective and efficient solution for the business.

Sustainable procurement

Other key factors to consider when choosing a supplier include their ability to respond quickly to changing customer needs and how well they can help towards meeting a business’ sustainability goals.

Sustainable procurement is a high profile matter for businesses today. It can help to save money, reduce waste, improve competitiveness and build a business’ reputation. As part of their sustainability programmes, many oil companies have invested in local transportation networks or built schools. They provide jobs and by sourcing supplies locally help to develop the local economy. The global oil industry has a responsibility to the countries in which it operates to manage its operations in as sustainable way as possible. A purchasing manager might want to consider whether the supplier behaves responsibly, for example, adhering to ethical standards or sourcing raw materials in an ethical way.

For example, Shell is working with its existing suppliers to implement the Shell Supplier Principles. These set out the minimum standards which Shell suppliers need to meet. These include using energy and natural resources as efficiently as possible to minimise impact on the environment and covering health and safety issues.

Other aspects of sustainable business include managing waste effectively and reducing the company’s carbon footprint. This can be improved by choosing suppliers who also take their responsibilities towards environmental impact seriously.