Tanzania: 6 Oil and Gas Business Opportunity in Tanzania

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The oil and gas business to most of Tanzanians is sound too big, Many of us  we believe is impossible for an average person or individual to venture into oil and gas business. This is absolutely wrong.

The problem is not financial capacity, because you may have a huge capital  but still you can fail to run  business.

What is needed to venture in oil and gas business are  interest and creativity. If you are very interesting in oil and gas business you are about to learn  a great stuffs.

The articles explore small-scale oil and gas business which you can start to-day with little money or no money,

No matter what is your pocket-size is, but in  this article   we shall see how  you can easily  run oil and gas business in Tanzania,

As capital  become popular obstacles and excuse for many of us to venture in Oil and gas business, i will show you where you can get capital so as to run oil and gas business.

Also we could see  in brief how oil and natural gas industry work so as you could have a clear picture of oil and gas business.

Before we move to the those oil and gas business ideas,lets see in brief how oil and natural gas sector works,?

Lets begin

Oil and natural gas industry  include three segments,upstream, mid stream and down stream,

Upstream it deals with getting oil and natural gas out the ground, in other words, we call exploration and production

Midstream means moving of oil and natural gas. It include Tankers, car, rail.

Downstream means refinery ,marketing and selling oil and natural gas products,  these products include kerosene diesel fertilizer, plastics etc.

.Now lets see 6 oil and gas investment opportunities in Tanzania.

1.Consulting in oil and gas

Are you really interested to offer advice? Here is the right oil and gas business  to start..

Recently, there  a lot of Tanzanians who are working with oil and gas industry, So if you have worked with these oil company for a long time, definitely you have gained a lot of skills and experience, you know how the industry works from upstream to downstream,you know well the challenges that face oil companies you can offer advices to  investors and entrepreneur who are fascinated with oil and gas business and they  will pay back to you.

2.Equipment lease,

Very interesting business, You can start a firm which will lease out equipment used in oil and natural gas sectors. And the good news is that we have some of Tanzanians who run this kind of business.

3.Information entrepreneurship,

You can make millions of moneys simply by sharing oil and gas news, explaining the trend and challenges of Natural gas industry in Tanzania, create magazine targeting  oil and gas industry etc.

The most Interesting thing in this business is that you can start with no money, if you have computer with good access of internet then you are ready to go. According to finding conducted by Twaweza organization, it show that 77 percent of citizens of Tanzania, believe that there is person who is responsible to give them information in oil and gas sector,  Why don’t you be responsible for them  and turning this challenge into opportunity,

4.Diesel Distribution business

If the  Tanzania economy is estimated to have  grown by  6.5 percent in the first quarter  of 2015, means the more energy will be needed to meet the demand, You can start make money by distributing  diesel to the company, hospitals universities and private organization etc

5.Establish filling  station

 Now this business it become popular in Tanzania, but demand of this business is also higher, as the economic of country  grows, number of average people who own cars and vehicle will mount, set up filling station and sell petroleum products like petrol diesel etc

6.Staffing and Training

Since we need a lot of local experts in Tanzanias’ natural gas sector, you can start firm that will train local  workers and  individuals so that they can perform their task at the level that meet the demand of oil and gas industry and society as whole.

 

  You can also read:Time is now to invest in oil and gas sector

Where to get the capital to start oil and gas business if you don’t have money

As i said  before, most of us we rely on capital as an excuse of not doing oil and gas business, Although not all  the business I mention above require capital to start. But if you still worry  about capital let’s go

  • From salary and wages

If you are an employee in oil and gas sector or any company, the simple way to raise your capital,is to save small amount of money until you raise you capital to go into oil and gas business.

  • Friends and family

You friend and family are already know you, they can be easily to take risk of you than investors or banks, talk to them dearly, you will raise you capital

  • Investors

There a lot of people outside there, who have a lot of money and they  look for people with interesting in doing business to invest in your oil and gas business and you will raise your capital.that why i say the problem is not money, there a lot of money in this world.

  • Apply loans

   This is very popular ,there is no need to go in details of these, Find the bank you interested in and apply for loans

  •      Use assets

Do  you have car, houses,land, why don’t you use those assets to raise your capital. The good news is that we are able to live without these assets. sell your car and raise the capital

My Final words

 Its very important to note that you should get permit  or licenses  to  run an authorized oil and gas business in Tanzania, Also you may consider the risk of each oil and gas investment opportunity before you start.

 Is all up to you.

Up to now you have seen  how oil and gas industry works, you know oil and gas business opportunities in Tanzania, and where to get money to raise you capital, the rest is up to you, but your right time to start oil and gas business is now, start now and start where you are.

Tanzania Oil and Gas Market Insight and Outlook Report H2 2015 – 2025

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The Tanzania oil and gas report provides complete analysis and forecasts of Tanzania upstream, downstream and midstream sectors. The research work provides analysis of key opportunities and associated challenges facing Tanzania markets. Yearly production and consumption forecasts of oil, gas, LNG, LPG, gasoline, diesel and fuel oil from 2005 to 2025 are included in the report. Further, primary energy demand, GDP, population and vehicle production details are provided from 2005-2025.

All potential new business and investment opportunities in Tanzania oil and gas markets with feasibility of planned projects, expected start-up, and investments required are included. Further, asset-wise details of oil fields, gas fields, exploration blocks, LNG terminals, storage, pipeline and refineries operational in the country are analyzed.

Tanzania infrastructure, market conditions, investment climate and competitive landscape are analyzed through sophisticated tools and presented in a user-friendly manner through SWOT analysis, benchmarking and positioning matrix.

The report also details the business profiles of three key companies in the Tanzania oil and gas industry. Business operations, SWOT Analysis and financial performance of the companies are provided. All the latest developments in the Tanzania oil and gas industry and their impact on the industry are included in the report.

Key Topics Covered:

1 Tables & Figures

2 Tanzania Oil and Gas Market Analysis

3 Tanzania Oil and Gas Outlook to 2025

4 Investment Opportunities in Tanzania Oil and Gas Sector

5 Tanzania Macro-Economic and Demographic Analysis and Outlook to 2025

6 Tanzania Oil and Gas Companies and Market Competition Outlook

7 Tanzania Upstream Industry Analysis and Outlook

8 Tanzania LNG Industry Analysis and Outlook

9 Tanzania Refinery Industry Analysis and Outlook

10 Tanzania storage industry Analysis and Outlook

11 Tanzania pipeline industry Analysis and Outlook

12 Company Profiles of Oil and Gas Companies in Tanzania

13 Latest Tanzania oil and gas News Landscape

For more information visithttp://www.researchandmarkets.com/research/wkq49v/tanzania_oil_and.

Never Miss: This Free Online Oil and Gas Training

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IFP  school is going to conduct another Massive Open Online Course (MOOC) relating to oil and energy.

This training which IFP school offers is very important because it meet the needs of petroleum industry and demand of society

  Features of training

  •        Free training
  • It takes five weeks
  • It starts 2nd November 2015
  • 2-3 hours per week
  • Certificate of participation and achievement(you will receive certificate at the end of the course through your email,
  • A serious game as a case study.

Who can join the train?

All petroleum professionals who wants to updates their knowledge, students, graduates and  any one who are very interesting in oil and gas sector.Even if you have back ground unrelated to oil and gas industry  I recommend you to participate in this course, you will learn a lot and the good news is , at the end of the course you will get certificate  which you can increase value of your CV .

I have already participate their previous training on over view of oil and gas industry, there a lot of people who were participating but they didn’t have e background relating to petroleum industry, Why you should not try?

If petroleum industry is your passion you will join.

How  to register for this online course.

Registration is very easy, you  would be asked to fill  two boxes.

the first box you will write your first name and in the last box you will be required to add your email, the you will click “Sign up” button you are ready to go and enjoy the training.

to begin your free registration click here:http://mooc.sustainable-mobility.ifp-school.com

 After successful completing this course participants will be able to

  • Different energy sources , the importance of oil and how it used  in transport and its consequences regarding to the environment
  • Explain the operation of 4 stock engine
  • Explain the specification of gasoline and diesel and objectives of each unit during the crude refining process
  • Explain the engine’s efficiency, the power and the torque
  • Explain the formation of pollutant emissions, identify  techniques used to reduce emissions and consumption and finally identify the different after treatment systems
  • List the pros and cons of hybrids and explain how they work, list the various alternative fuel used, and finally describe possible solution for reducing dependency on petroleum  products eg car sharing or  ecodriving.

  Final Words

When we talk about IFP school, we don’t talk about Tanzania only, IFP school is about international level.

Never Miss,

Share with friends

 

Tanzania and Uganda Agree To Build Crude Oil Pipeline

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Uganda and Tanzania have signed an agreement to explore the possibility of building a crude oil pipeline between the two countries, Uganda’s Ministry of Energy and Mineral Development said on Monday.

“The (agreement) creates a working framework for the potential development of a crude export pipeline from Hoima to Tanga Port of Tanzania,” the ministry said in a statement.

“The objective is to select a route that will result in the lowest unit transportation cost that constitutes the most viable option for the crude export pipeline,” it said.

Also Read:Oil firms prefer Tanga pipeline route to Tamu 
This comes just one day after Tanzania initiated a $1.33 billion project to pipe natural gas to its commercial capital, Dar es Salaam, and help relieve chronic power shortages in the city, the president’s office said in a statement on Sunday.

The 532 km (330 mile) Mtwara-Dar es Salaam pipeline and gas processing plants, largely financed by a Chinese loan, is part of a plan to add about 2,000 megawatts of new gas-fired electricity generating power by 2018 to increase Tanzania’s generating capacity to 10,000 MW by 2025.

Most new plants will be gas-fired but Tanzania also wants to use coal reserves and renewable resources such as wind and geothermal.

“Tanzanian president Jakaya Kikwete inaugurated the pipeline and gas processing plants … ensuring availability of gas for electricity generation to power factories and for domestic use,” the presidency said in a statement.

The expanding capacity will help meet domestic demand as the government connects more people to the national grid beyond the 40 percent who are connected now, and offer the opportunity to export to neighbours.

Tanzania estimates it has about 55 trillion cubic feet (tcf) of recoverable natural gas reserves off its southern coastline. Discoveries in Tanzanian and Mozambican waters have led to predictions the region could become the world’s third-largest exporter of natural gas.

The government said it hopes by switching to gas-fired power plants to save around $1 billion a year in oil imports for electricity generation after the completion of the pipeline.

Kikwete also confirmed a project to build a new cement plant owned by Nigerian businessman Aliko Dangote in southern Tanzania close to its natural gas fields.

Kikwete said the factory would produce 3 million metric tonnes of cement a year, and cost $600 million to construct.

Tanzania:Hopes rise for Aminex gas deal in Tanzania

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The Kiliwani field is on the landward side of the Songo Songo island.

The Kiliwani field is on the landward side of the Songo Songo island.

 

The long awaited gas pipeline that runs from Mtwara to Tanzania’s capital , Dar es Salaam, was officially declared open last Saturday (October 10) amid great fanfare in Mtwara.

A clutch of ministers and officials from the TanzanianPetroleum Development Corporation (TPDC) heard President Jakaya Kikwete tell a large crowd and the country that he was optimistic that the current power outages will end.

He added he hoped the country will enjoy reliable power supply from now on by exploiting various sources of energy including natural gas that has been discovered onshore Tanzania.

Read:Aminex  Ceo “Tpdc investment great sign of support“

Foreign oil and gas companies, including Aminex (LON: AEX) and Solo Oil (LON:SOLO), will be quietly but fervently wishing that the opening of the pipeline will herald, at long last , the signing of a gas sales agreement (GSA).

Tanzania is not a rich country but as an emerging economy it is actually has economic growth rates that have been running at 7% a year.

There is a huge demand for energy. Estimated 2016 demand from existing and new power plants is around 120mln standard cubic feet of gas (mmscfd). Gas demand is expected to grow to 475mmscfd by 2018.

Some Tanzania business executives have argued that power shortages have acted as a brake on economic development .

A consortium, operated by Aminex (58.5% interest)) and in which Solo Oil (LON:SOLO) holds currently holds a 6.5% stake, has what the Tanzania government wants. It has discovered a lot of gas onshore.

The Kiliwani field is on the landward side of the Songo Songo island.

The KN-1 gas well tested at 40 mmscfd.  It has been completed and ready to produce for quite a while. The consortium could supply well over 20mmscfd, it is believed.
However, the pipeline (a spur from the main 540km, 36 inch Mnazi Bay to Dar es Salaam pipeline) together with processing facilities has now been completed with Chinese loan financing and is ready to be used.

The sales agreement has been sorted in just about every aspect, it seems. But it still has not been signed off.

A clue to why there have been such long delays in signing a GSA came in September when another foreign companyWentworth Resources (LON:WRL) managed to get a GSA signed.

The problem with these deals has been payment protection guarantees.

Orca, the company that runs the Songo Songo gas field, Tanzania’s only current producer, had outstanding payment issues with the TPDC.

Companies now, usually, want to ensure that some kind of third party, such as the World Bank, will underwrite payments from the TPDC.

Wentworth, together with operator, French group Maurel & Prom operates the Manzi Bay field in the south of Tanzania. It is the only other foreign consortium, apart from theAminex partnership, which has been ready to produce new gas for Tanzania internal consumption.

Solo’s chief executive Neil Ritson told Proactive that his company could end up signing the long awaited gas sales agreement before the Tanzanian general election in two weeks’ time. This could mean for first gas for the partners, which are in the right place at the right time.

Getting KN-1 into production is very important for Solo because it would establish first output for the company and therefore first meaningful revenue.

Also, a GSA would unlock a further investment from Solo which has said it would pay US$3.5mln for a further 6.5% stake in the Kiliwani concession. 

Not only would this help alleviate the company’s debt burden, which has been such a drag on the  share price these last two years, it would also allow progress on another of Aminex’s Tanzania assets, the Ruvuma production sharing agreement (PSA), which could be company-making.

Tanzania: Swala Oil Selects Tanzania Drilling Site

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Swala Oil & Gas (Tanzania) plc has selected a drilling location for the 2016 exploration well that shall be drilled on the Kito prospect in the Kilosa-Kilombero licence.

The technical review of the Kilombero Basin has shown the Kito prospect to be robust and has given promising indications of the potential prospectivity within the basin,” Dr David Ridge, the firm’s CEO said last week.

According to a company release, re-interpretation of the 2013 and 2014 seismic data have resulted in improved understanding of the Kito prospect.

Analysis of the available seismic has identified a number of additional structures along the Kito basin bounding fault.

Ridge said that the reinterpretation of data over Kito has resulted in a slight increase in the size of the mapped structure whilst early review of the additional structures has given the Company a better appreciation of the potential upside within the Kilombero basin.

Un-risked recoverable resources, mmbbls, net to the Company on the basis of a 25% equity interest post farm-in and the leads and prospects of the Kilombero basin he said, adding that recovery factor used 27%.

       Read: Swala energy complete farm out of Tanzanias kilosa -kilombero and Pangani licences interest to Tpl

 
 
“He added that the Company is in the process of completing an EIA over the selected drilling area and of selecting drilling contractors for the Kito exploration well in 2016.

Swala is an affiliated company to Swala Energy Limited, a company in turn listed on the Australian Stock Exchange (ASX) with ticker “SWE”.

It holds assets in the world-class East African Rift System with a total net land package in excess of 17,500km2.

New discoveries have been announced by industry participants in a number of licences along this trend, including Ngamia and Twigga, which extend the multi-billion barrel Albert Graben play so successfully developed by Tullow Oil into the eastern arm of the rift.

Swala has an active operational and business development programme to continue to grow its presence in the hydrocarbon provinces of East Africa.

Tanzania launches project to pipe natural gas to capital

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Tanzania has initiated a $1.33 billion project to pipe natural gas to its commercial capital, Dar es Salaam, and help relieve chronic power shortages in the city, the president’s office said in a statement on Sunday.

The 532 km (330 mile) Mtwara-Dar es Salaam pipeline and gas processing plants, largely financed by a Chinese loan, is part of a plan to add about 2,000 megawatts of new gas-fired electricity generating power by 2018 to increase Tanzania’s generating capacity to 10,000 MW by 2025.

Most new plants will be gas-fired but Tanzania also wants to use coal reserves and renewable resources such as wind and geothermal.

“Tanzanian president Jakaya Kikwete inaugurated the pipeline and gas processing plants … ensuring availability of gas for electricity generation to power factories and for domestic use,” the presidency said in a statement.

The expanding capacity will help meet domestic demand as the government connects more people to the national grid beyond the 40 percent who are connected now, and offer the opportunity to export to neighbours.

Tanzania estimates it has about 55 trillion cubic feet (tcf) of recoverable natural gas reserves off its southern coastline. Discoveries in Tanzanian and Mozambican waters have led to predictions the region could become the world’s third-largest exporter of natural gas.

The government said it hopes by switching to gas-fired power plants to save around $1 billion a year in oil imports for electricity generation after the completion of the pipeline.

You can also read:Fes launched Tanzania oil and gas almanac

Kikwete also confirmed a project to build a new cement plant owned by Nigerian businessman Aliko Dangote in southern Tanzania close to its natural gas fields.

Kikwete said the factory would produce 3 million metric tonnes of cement a year, and cost $600 million to construct. (Reporting by Fumbuka Ng’wanakilala; Editing by Edith Honan and Greg Mahlich)

 

See Important Job Sites For Petroleum Jobs

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This weekend i have fun time to visit various internet forum relating  to petroleum industry ,  The most interesting thing  I found from one of  forum was some people were claiming with text like that” I have forward my Cv  to many  jobs sites but i didn’t see any response”.  These people might be the use wrong strategies or they use wrong jobs sites to apply for petroleum jobs.  One important thing to keep in mind is that Before you begin to send Cv to these jobs site you should know that  not all jobs sites are  good place for you to submit your resumes. One most common mistake many job seeker do is  to send their resume in any jobs site they see in the internet. I recommend you not doing so.

Okay, let’s go

Now days, when you go through  internet you may encounter a lot of sites where they  publish oil and gas jobs, But most of these jobs site are not keep in touch with employee, recruiters or recruiting agency who are  key people to give you opportunity in petroleum company.

companies.  Below i mention very important jobs site offer  petroleum jobs . These job sites are important,because they are used  for both employee and recruiting agency, These site release jobs announcement from different Location, including petroleum jobs in Tanzania. Also these sites have options where you can forward your  Cv and feed your information as much as you want. These sites include the following

 

My Final Words

Although these are important jobs sites for oil and gas jobs, i cant guarantee you that hundred percent if you use these jobs you will get jobs in petroleum companies, but you have a greater chances to increase your probability

 

 

East Africa getting cold feet on Uganda oil refinery

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EA-PIPE

East African governments are dithering on funding the planned oil refinery in Hoima, Uganda, leaving the future of the multibillion-dollar project in doubt.

However, the Ugandan government says it is ready to go ahead with implementation of the project without the participation of the other East African Community member states.

Energy Minister Irene Muloni said the government is finalising discussions with the lead consortium and the contract is likely to be signed before the end of this month, paving the way for the construction. She said Uganda would take up all the shares not taken up by Tanzania, Rwanda, Burundi and Kenya.

The five EAC member states were allocated a combined 40 per cent shareholding in the facility — translating into a eight per cent stake for each — with the remainder of the shares reserved for private investors.

The deadline for confirmation of shareholding had been set for last November in order to allow Uganda to start negotiating with other strategic investors.

Kenya took up a 2.5 per cent stake worth $13 million last year, although the money is yet to be paid. Treasury Cabinet Secretary Henry Rotich however said the country will not take up more.

“Why should we take more shares in the refinery?” Mr Rotich asked. “They have not even started the construction. We have other strategic interests.”

Meanwhile, Tanzania, Rwanda and Burundi are yet to commit themselves to the $4.3 billion facility. But now, Uganda, which initiated the project, has said it is ready to bear the burden of building the refinery on its own.

“The stakes that will not be taken up by the member states will be taken up by the government of Uganda,” said Ms Muloni.

Peter Kinuthia, the EAC’s senior energy officer, said the way forward is for Uganda to continue negotiating with private investors knowing that the EAC member states have a 40 per cent stake.

“If other member states don’t come in, Uganda will have to carry the burden itself,” he said.

The window for the EAC member states to participate in the project is swiftly closing with the proposed refinery expected to come on steam by 2018. The refinery, which is expected to process an estimated 60,000 barrels of oil per day, will initially output half of that capacity in 2018.

At a meeting of the EAC Sectoral Council on Energy last year, Tanzania and Burundi requested Uganda for more details about the project before making a decision. But although the Ugandan government furnished the two countries with the commercial reports on the feasibility of the project, they are yet to make a decision.

Not confirmed shareholding

These Are Three Types Of Oil Companies

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As you pursue a career in petroleum industry either you want to do  business in oil and gas sector or  you would like to get the job in petroleum companies, it is better to know these three types of petroleum companies and it well help you know  where you can start  so as to reach your dreams in petroleum industry.

Well ,let us begin

There are three types of oil Companies

1.International Oil company (IOC)  Which also is non state-owned or privately owned. An Ioc is an international super major  oil company like

  • Exxon Mobil,
  • Royal Dutch Shell, BP,
  • Chevron,
  • Conoco Philips

IOC are available  in most countries where oil and natural gas exploration and production occur.

2.National Oil Company (NOC) or state-owned company of an oil-producing host country, example

  • Tpdc in Tanzania
  • Adnoc in Abu Dhahabi
  • PEMEX in Mexico,
  • Statoil in Norway. Together all NOC currently control 88% Of oil reserves.

Unlike the independent or IOC they rarely work outside the  country borders.

3.Independent Oil and gas company

This privately owned company are non integrated which means they receive all revenue from  oil and natural  gas production at the wellhead. The are  exclusively in the exploration and production segment of the industry and are found world-wide.

My Final Words

Your role as graduate, students or entrepreneurs is to understand all above mentioned petroleum companies and analyze and evaluate  each types of company  and then  decide where is an i deal place to begin your career.