Value chain analysis of natural oil and gas in Tanzania identification of activities and critical success factors

Oil and gas are in numerous ways the lifeblood of the modern global economy. Natural oil and gas meets more than 50% of the world’s energy demand. But the oil and gas industry amongst others, have very complex and dynamic value chains. This study used a combination of desk study and field survey in Dar es Salaam region to identify and create a thorough inventory of the physical and financial activities carried out within the oil and gas industry in Tanzania. The sample was taken from six categories of oil and gas industry specialists. Data collected from the questionnaire was analysed using SPSS software package and the descriptive statistics used to draw conclusions on the same. The findings revealed that physical activities within the value chain could be classified as primary activities and collapsed into four main activities. Secondly, the findings also showed that regardless of the kind of firm, financial activities were deemed very important in the oil and gas value chain and would also be primary activities in the value chain. Thirdly, with no exception, the findings demonstrated that there were four key categories of critical success factors. From the findings of the study, a number of recommendations have been provided for researchers and academicians.