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How to Start a Lucrative Lubricant Oils Business in Tanzania and Africa: A No-Nonsense Guide

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Starting a business is not for the faint of heart, and if you think you’re going to waltz into the lubricant oils industry without doing your homework, you’re in for a rude awakening. But if you’re serious about making money—good money—by selling lubricant oils in Tanzania and Africa, then listen up. This is your no-nonsense guide to getting it done.

Why Lubricant Oils?

First things first: why the hell should you care about lubricant oils? Because it’s a damn good business, that’s why. The automotive industry is booming across Africa, and every vehicle, from motorcycles to heavy-duty trucks, needs lubricant oils.

But it doesn’t stop there. Industrial machinery, generators, and even agricultural equipment—all need lubricants to run smoothly. And guess what? Most people don’t even think about this. They’re too busy chasing after the latest tech startup or the next big thing. But here’s a golden nugget for you: lubricant oils are an evergreen product. That means steady demand, and you know what steady demand means? Steady cash flow.

Know the Market.

Before you even think about starting, you need to understand the market. If you don’t know who you’re selling to, then you’re just another idiot with a dream and no plan. In Tanzania and the broader African market, the lubricant oils sector is divided into two main segments: automotive and industrial.

  1. Automotive Lubricants:

– Engine Oils: Used in cars, trucks, motorcycles, and buses.

– Transmission Fluids: Essential for smooth gear shifts.

– Brake Fluids: A must-have for any vehicle with hydraulic brake systems.

  1. Industrial Lubricants:

– Hydraulic Oils: Critical for construction machinery and industrial equipment.

– Gear Oils:Used in heavy machinery across manufacturing sectors.

– Turbine Oils: Necessary for power generation equipment.

Identify Your Target Customers.

Let’s get this straight: everyone isn’t your customer. That’s a rookie mistake. If you try to sell to everyone, you end up selling to no one. Narrow it down. Who really needs what you’re selling? In Tanzania and Africa, your target market should include:

  1. Automobile Dealerships and Repair Shops:

These folks are always in need of quality lubricants to keep vehicles running. Build strong relationships with them, and they’ll keep coming back.

  1. Industrial Plants:

Factories and manufacturing plants require industrial lubricants to keep their machinery in top shape. This is a massive market if you play your cards right.

  1. Logistics and Transport Companies:

With fleets of vehicles, these companies need lubricant oils in bulk. A good deal with one of these can be a game-changer.

  1. Government and Municipalities:

Don’t overlook government contracts. They have huge fleets of vehicles and machinery. It’s a tough nut to crack, but once you’re in, you’re in for the long haul.

  1. Retailers and Wholesalers:

These guys are the middlemen. You supply to them, they sell to the end-users. Get a few of these on board, and you’re looking at consistent sales.

Get the Right Suppliers.

If you’re going to sell lubricant oils, you better make damn sure you’ve got a reliable supply chain. A lot of people screw this up by going for the cheapest option. Guess what happens then? You end up with crap products that nobody wants to buy.

Find reputable suppliers who can provide high-quality lubricant oils consistently. In Tanzania and Africa, you might want to look at both local manufacturers and international brands. But remember, reliability is key. If your supplier can’t deliver when you need them to, your business will tank faster than you can say “bankruptcy.”

Legal and Regulatory Compliance.

You can’t just jump into the lubricant oils business without crossing your t’s and dotting your i’s. Every country in Africa has its own set of regulations when it comes to selling oils and lubricants. In Tanzania, for example, the Tanzania Bureau of Standards (TBS) regulates the quality of lubricant oils sold in the market. Make sure you’re compliant with all local regulations, or you’ll find yourself out of business—and maybe even in jail.

Here’s what you need to check off:

  1. Business License: You need to be a registered business. No license, no business—end of story.
  2. Product Certification: Your lubricant oils must meet the required standards. Get them tested and certified by the relevant authorities.

 

  1. Importation Permits: If you’re bringing in lubricants from outside the country, you need the right permits. Don’t try to sneak anything past customs; it won’t end well.

 

  1. Environmental Compliance: Disposal of waste oil is a big deal. If you’re caught contaminating the environment, you’ll face heavy fines and your business reputation will be trashed.

Business Model: How Will You Make Money?

Let’s talk about making money—because that’s the whole point, right? There are a few different ways you can structure your lubricant oils business, depending on your goals, capital, and risk tolerance.

  1. Distribution:

   – Pros: Lower risk, steady income, easy to scale.

   – Cons: Lower margins, heavy competition.

 – How It Works: You buy in bulk from manufacturers and sell to retailers or end users. Your profit comes from the difference between the buying price and the selling price.

  1. Wholesale:

– Pros: Higher margins, repeat customers, easier cash flow.

– Cons: Requires more capital, inventory management challenges.

   – How It Works: You purchase lubricant oils in large quantities and sell them to smaller retailers or directly to businesses in need. You’ll need a warehouse and a reliable distribution network.

  1. Retail:

   – Pros: Direct customer interaction, better control over pricing.

   – Cons: Higher overhead, slower growth.

   – How It Works: You open a shop, either online or brick-and-mortar, and sell lubricant oils directly to the end-users. You can also offer related services like oil changes to increase revenue.

  1. Private Labeling:

   – Pros: Brand control, high margins, customer loyalty.

   – Cons: Requires significant investment in branding and marketing.

– How It Works: You buy lubricant oils from manufacturers and rebrand them under your own label. This allows you to create a unique brand and potentially charge a premium.

Build a Kick-Ass Team.

You can’t do it all on your own—unless you’re planning on running yourself into the ground. You need a team, and not just any team. You need people who are as serious about this business as you are. Hire people who know the lubricant oils market, understand the technical details, and have a knack for sales.

– Sales Team: These guys need to be go-getters. If they’re not closing deals, they’re useless. Period.

– Logistics and Operations: You need someone who can handle the supply chain like a pro. If the logistics fall apart, so does your business.

– Customer Service: It’s not glamorous, but it’s essential. If your customers can’t reach you when they have a problem, they won’t be customers for long.

– Marketing: Don’t underestimate the power of good marketing. If nobody knows you exist, how are they supposed to buy from you?

Pricing Strategy: Don’t Undersell Yourself.

A lot of people think that the best way to get into a market is by undercutting the competition. They’re wrong. If you start a price war, you’ll just end up shooting yourself in the foot. Price your products according to the value they deliver. If you’re offering high-quality lubricants, you have every right to charge a premium.

That said, don’t be stupid about it. Do your research. Know what your competitors are charging and why. Your pricing should reflect your brand positioning. If you’re the budget option, that’s fine—but own it. If you’re the premium option, make sure your product quality and customer service back it up.

Marketing: Get the Word Out.

Now, let’s talk about marketing. It’s not enough to have a great product. You need people to know about it. Here’s the deal: in Tanzania and Africa, digital marketing is growing, but don’t ignore traditional channels. You need a mix of both to reach your target audience.

  1. Digital Marketing:

 – Social Media: Platforms like Facebook, Instagram, and LinkedIn are great for reaching both B2B and B2C customers.

   – Search Engine Optimization (SEO): Make sure your website is optimized for search engines so people can find you when they’re looking for lubricant oils.

   – Email Marketing: Build a list of prospects and customers and keep them informed about new products, promotions, and industry news.

  1. Traditional Marketing:

   – Radio and TV Ads: Depending on your target market, radio and TV ads can be highly effective in Africa.

 – Billboards and Posters: Don’t underestimate the power of visual advertising in high-traffic areas.

   – Networking and Trade Shows: Get out there and meet people. The lubricant oils industry is still very much a relationship-based business.

Distribution Channels: Get Your Product to Market 

If people can’t buy your product, they’re not going to buy your product. It’s that simple. You need a solid distribution strategy. Are you going to sell directly to consumers, or are you going to use distributors and wholesalers? Maybe a bit of both? Let’s break it down.

  1. Direct-to-Consumer (D2C):

   – Pros: Complete control over your brand, higher profit margins, direct customer feedback.

   – Cons: Requires a robust logistics network, customer acquisition can be costly.

   – How It Works: You sell your lubricant oils directly to consumers, either through your own physical store, online platform, or both. This strategy gives you full control over your pricing and branding, but you’ll need to handle all aspects of logistics and customer service.

  1. Wholesale Distribution:

   – Pros: Larger order volumes, access to a broader market, lower marketing costs.

   – Cons: Lower margins, less control over end-user pricing.

– How It Works:You sell your lubricant oils in bulk to wholesalers who then distribute them to retailers or directly to businesses. This allows you to move large quantities quickly but requires you to maintain strong relationships with your wholesale partners.

  1. Retail Partnerships:

 – Pros: Increased visibility, established customer base.

   – Cons: Margins are shared with retail partners, potential for brand dilution.

   – How It Works: Partner with existing retail outlets to sell your lubricants. This could be automotive shops, gas stations, or supermarkets. The benefit here is that these retailers already have an established customer base, which can drive your sales.

  1. Franchising:

   – Pros: Rapid expansion, consistent revenue from franchise fees.

   – Cons: Requires a proven business model, significant upfront legal and operational work.

   – How It Works: If you’ve built a strong brand and business model, consider franchising. This allows other entrepreneurs to operate under your brand in different regions, with you earning a cut of their revenue. It’s a great way to scale quickly, but you need to ensure your operations are watertight before taking this step.

Customer Retention: Keep Them Coming Back

Getting a customer is hard. Keeping a customer is even harder. If you want to succeed in the lubricant oils business, you need to focus on customer retention. Why? Because repeat customers are the lifeblood of any sustainable business. They’re easier to sell to, they spend more money, and they’re more likely to refer others to you.

  1. Quality Assurance:

If your product doesn’t perform, your customers won’t come back. Period. Ensure that every batch of lubricant oil meets the highest standards. Invest in quality control and don’t cut corners. In the long run, consistent quality will build trust and loyalty.

  1. Customer Service:

How you treat your customers matters. If they have a problem, you fix it—fast. Train your customer service team to be responsive, knowledgeable, and solution-oriented. A good experience with your customer service can turn a disgruntled customer into a loyal advocate.

  1. Loyalty Programs:

Implement a loyalty program to reward repeat customers. Whether it’s discounts, free products, or special deals, giving your customers a reason to stick with you will pay off in spades.

  1. Education and Support:

Offer your customers more than just a product—offer them knowledge. Create guides, tutorials, and workshops on how to get the most out of your lubricants. This not only adds value to your product but also positions you as an expert in the field, making customers more likely to return to you for advice and purchases.

Financial Management: Keep an Eye on the Numbers

Here’s where a lot of businesses screw up—they don’t keep an eye on their finances. If you’re not managing your money well, your business won’t last. It’s as simple as that.

  1. Budgeting:

Create a budget and stick to it. Know your fixed and variable costs, and make sure you have enough cash flow to cover them. Don’t blow all your money on fancy offices or unnecessary expenses—focus on what will actually make you money.

  1. Cash Flow Management:

Lubricant oils are a product that can tie up a lot of your cash in inventory. Be smart about how you manage your cash flow. Consider offering terms to reliable customers while negotiating favorable terms with your suppliers. Always keep enough cash on hand to deal with unexpected expenses.

  1. Pricing Strategies:

Your pricing needs to cover your costs and generate a profit, but it also needs to be competitive. Regularly review your pricing strategy to ensure you’re not leaving money on the table—or pricing yourself out of the market.

  1. Financial Reporting:

Keep detailed financial records. Regularly review your profit and loss statements, balance sheets, and cash flow statements. This will help you identify any issues early on and make informed decisions about where to invest, where to cut back, and how to grow.

Growing Your Business: When and How to Expand.

Once your lubricant oils business is up and running, it’s time to think about growth. But don’t rush into expansion without a plan. Here’s how to scale smartly.

  1. Market Penetration:

Before expanding into new markets, make sure you’ve fully penetrated your existing market. Increase your market share by improving your distribution, enhancing your marketing efforts, and offering new products that meet customer needs.

  1. Geographic Expansion:

Once you’ve dominated your local market, consider expanding to other regions within Tanzania or even to neighboring countries. This will require a deep understanding of new markets, including regulations, competition, and customer preferences.

  1. Product Line Expansion:

   Diversify your product offerings. If you’re only selling automotive lubricants, consider branching out into industrial lubricants or even specialty products like eco-friendly oils. This not only opens up new revenue streams but also helps you meet the needs of a broader customer base.

  1. Technology and Innovation:

Stay ahead of the curve by investing in technology and innovation. Whether it’s through improving your manufacturing processes, offering digital services, or developing new lubricant formulas, innovation will help you stay competitive and meet the evolving needs of your customers.

Challenges and Risks: Be Prepared.

Let’s not sugarcoat it—starting a lubricant oils business in Tanzania and Africa comes with its share of challenges and risks. But if you’re prepared, you can overcome them.

  1. Regulatory Hurdles:

Navigating the regulatory landscape in Africa can be tricky. Stay informed about changes in regulations and be proactive in ensuring compliance. A good relationship with local authorities can also help you avoid unnecessary headaches.

  1. Competition:

The lubricant oils market is competitive, and you’ll need to differentiate yourself to stand out. Focus on quality, customer service, and brand reputation to set yourself apart from the competition.

  1. Supply Chain Disruptions:

Inconsistent supply can cripple your business. Mitigate this risk by diversifying your supplier base and building strong relationships with key suppliers. Having a contingency plan in place for disruptions is also critical.

  1. Economic Fluctuations:

Economic instability can affect demand for lubricant oils. Keep a close eye on economic indicators and be ready to adapt your business strategy to changing conditions. This might involve adjusting your pricing, focusing on more stable customer segments, or diversifying your product line.

 Final Thoughts: Get Off Your Ass and Get Started.

Starting a lubricant oils business in Tanzania and Africa isn’t for the lazy or the faint-hearted. It’s going to take hard work, determination, and a lot of grit. But if you follow the steps I’ve laid out, you’ll be well on your way to building a successful and profitable business. Don’t sit around waiting for the perfect moment—because it’ll never come. The perfect time to start is now.

So, what are you waiting for? Get off your ass, get out there, and start making things happen. The lubricant oils market is ripe for the taking, and there’s no reason why you can’t be the one to dominate it. But remember, success doesn’t come to those who wait—it comes to those who go out and grab it with both hands.

 

Now, go out there and make it happen!

WB urges Uganda to guard against volatile oil prices

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imagesThe World Bank has asked governments of Uganda, Kenya and Tanzania to develop insurance measures to guard against fluctuating oil prices as they prepare to begin production.

Prices of oil and gas usually affect the cost of goods and services at both national and international markets.
Uganda has both oil and gas deposits, Kenya has oil, while Tanzania has large deposits of gas and the three East African countries are preparing to begin producing for local and international markets.

Addressing participants at a regional conference on oil and gas in Entebbe recently, the World Bank Senior Economist Uganda country office, Dr Jean -Pascal Nganou, said oil and gas prices will always fluctuate and countries should be prepared to handle the consequences.

The conference was organised by Friedrich-Ebert-Stiftung.
He said in case of price dip by diversifying their by economies instead of aligning every development agenda to oil and gas revenue.

Also Read:7-ways-to-make-money-in-Tanzania-oil-and-natural-gas-industry

“Oil and gas prices will always fluctuate, consequently, oil and gas producers should develop by themselves and for themselves a good insurance mechanism against sudden drops in world prices,” Dr Nganou said.

He added: “Saving part of future oil revenue is the most adequate response to that type of problem. Several governments have opted for a variety of oil revenue saving mechanisms.
“Uganda, Tanzania and Kenya should review these mechanisms, analyse the results achieved, and make their own choices based on realistic assessment of their own situation, needs and risks.”

The World Bank produces periodic reports on world commodity price focus. In the latest report, the bank raises hope that there is going to be a pick-up in oil prices in the international market.

In this regard, Dr Nganou said: “Our commodity price specialists believe that the price of oil will rise again and most of the projections in Uganda are based on international crude oil price of $90 (Shs319,500) per barrel. We may be right, we may be wrong and this is one of the lessons for a good management of future oil revenue.”

Other challenges
Other than oil prices, East African countries are also faced with the problem of poor infrastructure, which affects the development of the private sector. The infrastructure includes power, roads, railways which East Africa must deal with to realise tangible development.

“Countries like Uganda, Kenya and Tanzania need to repair, and expand their economic infrastructure which at present is a major obstacle to private sector development,” the World Bank senior economist Uganda country office, Dr Jean -Pascal Nganou, said.

He said improved transport, power and water supply services are essential to stimulate urban and rural growth and improve the condition of the population.

The resident director Friedrich-Ebert-Stiftung, Ms Mareike Le Pelley, said oil and gas exploration is not an end in itself for the development process.

“The East African region has had high GDP growth rate but other social indicators like income distribution, unemployment and concept of inclusive development have not yet taken root in the region,” she said.

Natural Gas Does More than Generating Electricity and cook food 

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Natural gas has so many uses and benefits to people. The sad reality is that most of us we think natural gas has nothing to do with us than producing electricity and cook food

This article examines applications of natural gas in our daily life.

let meet them

Food companies
Food companies use natural gas to dry several products like chips and potato
Industrial uses
Uses natural gas to generate steam for run various operation
Fertilizer
Natural gas is used as raw materials to manufacture ammonia for agriculture fertilizer

Other natural products that depend natural gas on their making
Natural gas is comprised of chemical like ethane butane propane. So companies process ethane to make ethylene.

Ethylene is used to manufacture plastic know as polyethylene which used to make several products Likes Toys, Housewares

Propane and butane as components of natural gas  also used to manufacture chemical building block
Transportation fuel
Many people are not aware that natural gas vehicle is already in many parts of the world since it has less environmental pollution compared to oil powered vehicle.

Natural gas is used to manufacture paper, clay, stones, and glass

Bonus: Natural gas also is used to dry clothes

Also Read:5-things-no-one-tells-you-about-Tanzania-oil-and-gas-workers

Final words
Recent days, due to environmental and economic and technological natural gas have become the fuel of choice for new power plants. Also operating costs for natural gas equipment are lower than those of energy sources

 

7 Ways To Make Money In Tanzania Oil and Natural Gas Industry

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Are you really looking for a way to make money in Tanzania oil and gas industry?

Fancy to join the league of oil and gas business  in Tanzania?

You are about to learn great stuff

Since 2010 several natural gas discoveries have been made in offshore southern Tanzania.

This led to a flock of numerous investors and companies to invest in oil and gas sector.

The natural gas discoveries have created new investment opportunities

The articles explore several opportunities to make money in Tanzania oil and gas industries by supplying services and products in this industry and also explains tips to succeed in this business

Let’s face them

1:Supply expandable equipment
Provide anything that oil and gas exploration companies need to get oil and natural gas out of the ground.
Example of products you can sell or supply to oil and gas companies include the following

Drilling bit is frequently needed to be replaced after boring rock for some miles. Also, you can supply

Drilling fluids are essential products needed by oil and gas companies, especially in drilling phase in order to transport rock cutting away from the well.
Also, you can supply to their pipes and drilling strings.

2:Accommodation services
Since most oil and gas reserves in Tanzania are found in remote sites, you can make money by providing, tents, catering equipment and kitchens to oil and gas companies

3:Logistics services
Is another way to make money in Tanzania oil and natural gas sectors. This can be done by ensuring there is land air or sea transport ,to move people from and to the sites.

4:Safety and health services
In Oil and gas industry health and safety continue to be significant, You job is to supply medicals and best safety personal protective equipment used in land and offshore field, including safety boot, element etc

5:Human resources- You can make money in Tanzania oil and gas industry by supply of permanent and temporary staff that work for oil and gas companies
6:Communication services
Is the another way to make money in Tanzania oil and gas industry, it include providing internet Tv and other recreational facilities to the remote sites
7:Engineering services,
It includes providing welding services water well drilling services. For those Tanzanians who own water well drilling companies, can deliver services to drilling water well to oil and gas companies.

Tips to succeed in these investment opportunities

Capitals
Capital is most popular excuses to many entrepreneurs, but for these investment opportunities start in the scale that is comfortable to you

Location
In order to succeed in this business, you should provide your services or product faster, well and at reasonable prices, It is better to decide the location where you will reach your customer easily, For Tanzania Mtwara is the better places since there a lot of natural gas discoveries.

Calculate risk
As you understand, every business has its risk. As oil and gas business is a very volatile due tendency of oil downturn It is better to know the risk of each business in order to know how you can avoid them.
Permit/licences
You should get a permit of driving your business from the concerning authorities in order to avoid unnecessary quarrels

Final words
There a lot interesting oil and gas business-opportunities-in-Tanzania , However, it can get very confusing if you don’t know where to look If you have read the article, I congratulate you! Since you have already discovered some of them

Dear readers we love to hear all of these from you

Tanzania Seafarers To Start Exploration of Oil and Gas in Deep and Shallow water

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THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

The move comes after the accomplishment of all legal procedures and fulfillment of sailor’s demands such as health insurance and working contracts to companies that they will be working with.

Speaking in Dar es Salaam, the TSC Chairman, Mr Frank Chuma said that they have reached agreement with the government on the fulfillment of important requirements that are needed by seafarers.

He said next process shall be signing contracts between the Community and Tanzania Petroleum and Gas Development Corporation (TPDC). “We are happy that everything went smoothly in accordance to expectations although it took three years until the accomplishment. We are now ready to work anywhere within and outside the country,” he said.

Also Read:     interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

“The TSC concern was to see local sailors benefit from opportunities that shall be found in their homeland,” he added. He said the move shall reduce unemployment rate for local seafarers who are about 5,000 country wide, as they are now going to be attached to both foreign and local companies that are associated to the oil and gas exploration sector.

“In accordance with Tanzania shipping business laws, for a sailor to go to the sea he/she must have insurance. We therefore recommend the remarkable contribution by the finance ministry,” he said.

He added that the issue of employment is a major problem for sailors something which pushed them to have number of consultation meeting with different stakeholders including China embassy, Tanzania Ports Authority (TPA), TPDC and the Ministry of finance.

He said, the Chinese Embassy has agreed to cooperate with them in fishery, oil and gas as well as other related activities and they are ready to bring their gears to help revive the activities in the country.

For his part, the renowned maritime instructor Mr Charles Chagula, urged the sailors to work hard once being attached to the companies as a way to prove their capacity and morality.

“We have reached the ultimatum of what we have been fighting for the past three years, it is our turn now to work hard and ensure effective delivery of our profession to the public,” he said.

Oil production set to promote Tanzania

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Tanzania, with its oil seeps, seismic and other data shows strong hydrocarbon potential in its upstream oil industry sector. However, only 20 ‘wildcat’ exploration and eight development wells have been drilled so far in a 222,000 km2 area and therefore, the country could be classified as under-explored.

Also Read:2-reason-why-east-African-oil-and-gas-industry-could-change-global-energy-market

 It is therefore, telling that Dr David Mestres Ridge, the CEO of Swala Energy Tanzania noted in a key address to the company’s shareholders meeting held in Dar es Salaam recently that, “though Tanzania is currently poorly placed on the African and global map among the top oil and gas producers, the situation should change in a decade if the offshore gas is produced”.

The global oil production has tripled in 50 years with the biggest increase being in Europe and Eurasia and the Middle East. The bulk of oil production has been from the Middle East and the neighbouring countries, followed by North America and Europe and Eurasia (with most gas deposits and production being found in the Russian Federation).

The Middle East produces most oil but it’s third in gas production. Africa’s prospects, though comparatively mediocre in terms of oil/gas production, has been ably represented by Nigeria, Angola and Algeria but soon, as Dr Ridge noted, Tanzania might also stand out to be counted among the Africa’s greats in oil and gas production. Barely two decades ago, there was evidently little enthusiasm by oil exploration and production companies to venture into East Africa.

However, in recent years, there has been a new-found interest in the region’s oil sector-an interest that has sparked jostling for exploration ‘blocks’ by scores of potential investors in the industry. Among those investors is Swala Energy Tanzania, a locally-owned oil and gas company that has been listed on the Dar Es Salaam Stock Exchange (DSE). Swala’s current exploration blocks are in Pangani in the north-eastern coast of Tanzania and the Kilosa-Kilombero basin in Morogoro region, the latter of which the company will start drilling in 2016.

The attendant exploration activities have led to some new ‘finds’ within the region and has whetted further interest by oil companies to keep a keener eye in the region. Among the finds, Uganda leads the pack.

It recently discovered 4 billion barrels of oil, followed by Kenya with 600 million barrels, an admittedly sizable combined quantity in a region that had been neglected for a long time. Tanzania on the other hand, has held sway in gas production and boasts such vast deposits that, as Dr Ridge notes, “…if poured all over the country, they could cover the whole country to a height of 1.5 metres”!

Dr Ridge foresees a bright future for the oil sector in East Africa in general and in Tanzania in particular and the country could be a regional oil and gas powerhouse if the offshore gas is developed. The recurring unpredictably erratic oil prices have displayed a yellow light to the oil and gas companies, making the investment in the sector a potentially risk-prone undertaking.

The prices have been determined by overriding factors among which are: lower prices in North America due to abundance of shale gas, medium prices in Europe supplied mainly by gas from the Russian Federation and higher prices pushed by the Fukushima nuclear disaster in Japan a couple of years ago. The price slump climaxed between 2014 and 2015 with a drastic fall from over $120 per barrel to the current $ 50 per barrel.

“The implications of the collapse of the prices has meant less revenues from oil production and therefore, countries will have to tighten their belts while projects that were previously viable and competitive at lower prices will no longer be feasible,” says Dr Ridge. Though it might be cheaper to produce oil/gas in East Africa, Dr Ridge sees a major challenge in transportation to the market once the production starts.

This is because most of the closer markets are already being supplied by the existing producers for example Latin America is supplied by Bolivia, Nigeria supplies Europe, Brazil and Japan, Russia too send gas to Europe and it’s soon expanding to China and Japan. With the congested market, Dr Ridge sees East Africa’s option, as a late entrant to the fray, will have to send its commodity to Japan.

“It’s probably going to be cheaper to produce oil and gas in East Africa but its distance from the markets will mean more expensive transportation costs,” notes Dr Ridge and adds that besides the distance, there will still be competition particularly from Australia, Qatar and Russia.

See Life Condition for offshore Oil Workers (Including Food, Accommodation, Working Hours, Fun and sports, Salaries)

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Would you like to know the life in oil and gas industry?

Are you very curious to know what oil and gas workers eat at their workplace, how they sleep, how long they work?

 it is  allowed for oil and gas employees to use the mobile phone at their working place?

You are about to learn excellent stuff
Articles examine the life condition  of   Oil and gas workers at their working places in offshore field.

From the time, they start to work, their food until they go to bed. Since the majority of Tanzania Natural gas discovered on the deep sea(Offshore) The article explains offshore lifestyle of oil and gas workers .

Okay let’s go
Food
Most of the oil and gas rig have restaurant –type where various kinds of food are offered to oil and gas workers.imgres

Food and fruits delivered to the rig by helicopter or supply boat. So breakfast covers porridge fruits and other foods.

You will never use your pocket money to buy food. All expenses of food are provided by the company. And the good news is that there is a team of the kitchen who prepares food.

Due to the nature of oil and gas jobs, employers are very careful to ensure that, oil and gas employee are getting well-balanced food so as they can do the job properly.

Also Read:3-surprising-benefits and-disadvantages-of-working-in-oil-and-gas-industry

Fun and hobbies
In the offshore platform, there are many places for entertainment, stuff like a pool table, for those who are often exercised there is a gym. Also rooms with TVs, DVDsimages

Working hours
Offshore oil and gas employees work in shift, usually day or night, shift takes 12 hours followed by 12 hours of rest

Salaries
Salaries for oil and gas workers differs from one person to another it depend on your role and company

Medical test
Medical care is the fundamental issue in the oil and gas companies, during an interview and before you go for working you should prepare for a medical test.

Accommodation

Accommodation in the offshore life vary from one company to another but most common accommodation is a single room with facilities like TV, toilet also is available that are shared by shifted staffs.Spaces are issued on offshore lifeimages

The use of mobile phone for offshore oil workers is prohibited for safety purpose,

Although public’ card phones and the massive production platforms have broadband internet access which means that you can send and receive e-mails, instant messages and even Skype.

Final words
Life condition on offshore platform is not easy, however, many oil companies make sure time you spent on platform is really enjoyable, For example, employees may find themselves live in places that meet 3  or 5-star hotels, despite the fact that you are in the middle of the ocean.

Check Out How oil and gas are Formed—-3 Easy Steps

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Everyone in his daily life are in contact with objects that depend on oil or natural gas on their making. For example In order for you are car to run it must be filled with oil, Most of you use gas for cooking.

Have you ever asked yourself where do this oil and natural gas come from?

Without using technical words, the article explains how oil and natural gas are formed with three easy steps. If a reader lack prior knowledge of oil and gas industry, do not worry the article uses simple language in order to give you a better understanding.

 

Note: Oil and natural gas are related products often found in tandem, so their process of formation is similar

Okay let’s see how oil and natural gas formed

Stage 1 – All of the oil and gas we use today began as microscopic plants and animals living in the ocean millions of years ago.. In the shallow water where these animals lived, sweep current comes on and pushes these animals down where there is not sufficient oxygen to live and so they die.

Over millions of years, these layers of sands and animals are burned and covered by more layers until the first layer get very deep.

Stage 2 – as they became buried ever deeper, heat and pressure began to rise. The amount of pressure and the degree of heat, along with the type of biomass, determined if the material became oil or natural gas.

 

Bonus:

 

In an area where more shallow and organic materials were buried in a short time we get heavy oil

In area where organic materials were buried very deep over 2,000 meters for long time we get only we get lighter oil

If organic materials buried more than 6, 000 meter deep and for a long time we get only  natural  gas

 

Stage 3 – after oil and natural gas was formed. They tended to migrate through microscopic pores in the surrounding rock.

Some oil and natural gas migrated all the way to the surface and ran away. Other oil and natural gas deposits migrated until they were caught under impermeable layers of rock or clay where they were trapped.

These trapped deposits are the reason why we find oil and natural gas today.

Final words
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Tanzania: TPDC hints at grand ambitions for Natural Gas Master Plan

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 developments appear to be on hold for now, our East Africa Politics & Security report points out that Tanzania still appears to have some ambitious plans for the country’s gas future.

With the slowing interest from oil companies, the Tanzania Petroleum Development Corporation (TPDC) appears to be taking the lead in the sector, but there are still issues which need to be resolved in the industry to help build confidence that the ambitions can be fulfilled.

TPDC has spoken of its extensive ambitions for the use of natural gas, serving domestic and regional markets, yet in the absence of any firm plans the ambitions do not create any greater certainty. Regionally,

Tanzania sees natural gas markets in most of its neighbouring countries. Addressing the Kenyan parliament on 6 October during an official visit, President Jakaya Kikwete said that Tanzania and Kenya are ‘discussing ways to extend the natural gas pipeline to Kenya’.

Speaking to the state daily newspaper Habari Leo the following week, TPDC’s Director of Gas Processing, Transport and Distribution, Wellington Hudson spoke of serving markets in the Democratic Republic of Congo, Rwanda, Burundi and Uganda, as well as Kenya.

Also Read:interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

He further told Habari Leo that an investor has agreed to finance a pipeline to Bagamoyo, to service tourist hotels, with the possibility of an extension to Tanga in the north, and Mwanza in the north-west.

The prospect of a natural gas pipeline running parallel to a crude oil export pipeline from Uganda is also enticing to TPDC, which confirmed to Habari Leo that it is in talks with Total to develop such a project. Exploiting Tanzania’s deep sea gas resources will depend on having a feasible Natural Gas Utilisation Master Plan (NGUMP) in place.

Also Read:Top-3-places-on-the-internet-where-evey-tanzanian-can-learn-about-oil-and-gas-sector-for-free

The document has been in preparation since at least 2011, with no sign of it being finalised soon. The NGUMP is critical to allow investors to make a final decision to invest on the LNG plant, as it will determine the domestic market obligation to be demanded by government.

Currently the Statoil Production Sharing Agreement stipulates that 10% be reserved for domestic use, a figure which is also likely to be found in the BG agreement. BG in particular has argued strongly over the past two years that realistic domestic needs can be served by onshore and near shore reserves. They also argue that the feasibility of the LNG plant will be strengthened if their domestic obligation is set at zero.

Kenya undeterred by plan to build oil pipeline through Tanzania

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Kenya has shrugged off fears over a decision by neighbouring Uganda to consider building a crude oil pipeline through Tanzania.

Kenya brushed aside concerns that Uganda’s plan, if it proves cheaper than the alternatives, would scuttle its infrastructural plans for its own oil pipeline.

Acting Transport Cabinet Secretary James Macharia told the Nation on Wednesday that while Kenya is “keenly keeping a close watch on the unfolding events in Uganda”, it would go ahead with its own infrastructural plans “undeterred”.

“We are going according to our own plans. Nothing has changed,” said Mr Macharia in Nairobi.

Last month, it emerged that Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route.

Uganda, Tanzania, the Tanzania Petroleum Development Corporation and Total E&P Uganda signed a memorandum of understanding (MoU) outlining new pipeline arrangements.

The MoU also invited other interested parties, such as Kenya, to assess and develop the Tanga route, creating a base for developing a crude export pipeline from Hoima to Tanzania’s Tanga port.

If Uganda goes ahead to construct the pipeline through Tanzania, it will deal a major blow to Kenya’s Lamu Port-South Sudan-Ethiopia Transport corridor (Lapsset) project.

“We are simply evaluating the least-cost pipeline route through the East African coast, our plans focus on ensuring our crude oil has value,” Uganda’s Ministry of Energy and Mineral Development Permanent Secretary Fred Kabagambe-Kaliisa was quoted as saying in Ugandan media.

But in Nairobi, Mr Macharia said while Kenya was keenly awaiting the decision from planned talks between President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni on the way forward, Kenya’s plans would not be derailed.

“In the last summit which was a few weeks ago, the matter was discussed and what was decided was that the two head of states (Mr Uhuru and Mr Museveni) would hold bilateral talks and chart the way forward.

“Either way we are looking into options which will protect our national interests. There is no cause for concern,” said Mr Macharia.

During his presidential visit to Uganda in August, President Kenyatta said Kenya and Uganda had settled on the northern route for the Sh400 billion crude oil pipeline that would transport oil from Albertine to Lokichar in Turkana County.