Oil And Gas

PROVIDING HAULAGE SERVICES IN THE OIL AND GAS INDUSTRY IN NIGERIA; THE OPPORTUNITY.

There exist an outstanding opportunity for those in the transportation business. It essentially involves investing in trucks and tankers and renting them out to major or independent petroleum product marketers to transport their products from depot to their various filling stations.

Haulage involves the transportation of goods. Since the collapse of the rail system in Nigeria, road haulage business has assumed a wider dimension and has become the most utilized way of intercity movement of goods and services.

It is very important to the socio-economic development of any nation and if the vision 20: 2020 of the present administration is to be achieved, the government would have to develop the transportation system.

An efficient transport system is an essential component in the production and distribution of refined petroleum products since most of the products are transport through our road networks.

Statistics have it that there are over six thousand {6,000} independent petroleum products marketers and six {6} major marketers of distributing and marketing petroleum products across the country, with each requiring haulage services.

Nigeria currently consumes an estimated sixty million {60,000,000} liters of refined petroleum products {PMS, DPK and AGO} per day and with population of over one hundred and sixty five million {165,000,000} people, growing at the rate of about 2.7% per annum with an estimated economic growth rate of 5.7% in the past five {5} years, the market for refined petroleum products in Nigeria, is established, growing and sustainable and by effect the market for haulage services.

Indeed, most major petroleum products marketing companies like Mobil, CONOIL, go into long term leasing agreement with truck and tanker hiring companies for the transportation of their products to their numerous filling stations across the nation.

There are three {3} basic way of entering the haulage market and they include

As an Independent Operator

As a contractor or Sub-contractor

Leasing of truck to Haulage companies

Independent Operator:

As an independent operator you operate your truck and seek for contract from the oil marketers and other interested parties on your own and get paid for deliveries made.

As an independent operator, you would do your own maintenance and repair, employ your own driver. You can decide to employ a manager who would scout for goods and also do the day to day running of the business.

As a Contractor or Sub- Contractor:

As a contractor with an oil marketing company, you place your trucks with the company and they would manage it for you, secure the driver and the maintenance and repair and pay you every month an agreed amount ranging between N400, 000 to N600, 000.

Of course, you have to be registered with the company.

As a sub-contractor, you are coming under a contractor in that company to register your fleets as their own and pay you an agreed sum after taking their commission.

It is important that before going into this agreement you study the terms and conditions of the contract with your lawyers.

Leasing of truck to Haulage Companies:

Leasing out the truck to a haulage company is same as being a contractor with an oil marketing company .The only difference is that this time you are going to the dealing with a haulage company instead of an oil marketing company though the terms and condition might not be different .

Again it is important to go with your lawyer.

A lot of haulage companies exist that wants to go into partnership with truck owners.

To participate in any of the above you have to register your truck with the National Union of Petroleum and Natural Gas Workers {NUPENG}.

Just like it would be difficult to place a fixed amount as the start-up requirement, it would be difficult also to state for sure how much to be made from the business because it depends on the method of management the enterprenuer wants to employ.

The amount of start-up requirement would depend on whether you are buying a brand new trailer, second hand popularly known as “TOKUNBO” or buying a trailer head and refurbishing the engine. The cost of a brand new ranges from N 15 Million to N20 Million depending on the brand and capacity while the cost of a second hand ranges from N6 Million to N7 Million.

However, since the enterprenuer would be buying the truck personally, the start-up capital would depend greatly on his/her negotiating skills.

The money to be made from the business depends greatly on the management style the enterprenuer wants to adopt.

If the enterprenuer choices to lease out the truck, he/she can be making N400, 000 –N600, 000 monthly after deducting expenses .If a trailer travels from Lagos to Kano, they charge between N180, 000 to N200, 000 per trip but if it within Lagos they charge between N40, 000 to N80, 000 depending on the distance and the product the truck is carrying.

Opportunities also exist in the haulage of gas.

You can order our detailed feasibility report on haulage business in the downstream sector of the Nigeria oil and gas industry by clicking on the link below.

Report Title: FEASIBILITY REPORT ON HAULAGE BUSINESS IN THE DOWNSTREAM SECTOR OF THE NIGERIAN OIL AND GAS INDUSTRY.

Report Code: FORA/2013/004/63452

Get our market research report on the following related topics by clicking on any of the titles below

1. HAULAGE OF MANUFACTURED GOODS IN NIGERIA THE FEASIBILITY REPORT.

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365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals. Visit www.365campaigner.com for more information.
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At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

Do you require one- on- one consultancy on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}
Mobile Number: +234 {0} 8033782777;+ 234 (0) 908 335 7733 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address: enquiries@foramfera.com
CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

DIESEL DISTRIBUTION AND MARKETING IN NIGERIA; THE OPPORTUNITY.

Popularly known in Nigeria as, Automated Gas Oil {AGO}, Diesel is one of the products in the fractional distillation of crude oil. Diesel is used to power heavy duty equipment and plays an important role in the transportation and distribution of other refined petroleum products.

There is no gain saying that the generation and distribution of electricity in Nigeria over two decades as been erratic and as a short term {or is it long term} palliative measures to the problem, businesses/individual have resorted to the use of diesel to power their heavy equipments and plants to generate the much needed electricity. Some of the sectors where diesel is used in Nigeria include manufacturing, shipping, banks, construction sites, hotels etc.

With a population of over one hundred and forty million {140,000,000} people ,growing at the average rate of 2.7% per annum and an economic growth rate of about 5.7 % in the past five years, the market for diesel distribution and marketing in Nigeria, established ,growing and sustainable.

In order to meet demands for their product and services , prospective diesel buyers are in constant need of the product to continue production because of the epileptic supply of electricity in the country and the entrepreneur is required to canvass for local purchase order {LPO} from prospective buyers and provided his/her price is relatively cheaper than other competitors, he would secure the supply contract.

One very important feature of the diesel distribution and marketing market in Nigeria is the price volatility. The price an hour ago might not be the present going price and at such before giving your final price, the entrepreneur should re-confirm the price.

To aid the smooth and efficient delivery of the product and also to mitigate the price volatility challenge, it is advisable the entrepreneur has his/her won delivery truck with a recommended capacity ranging from 10,000- 16,000 liters.

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365 Campaigner is a complete suite of social collaboration, communication and management tools for your team.

From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities. Tightly integrated.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals. Visit www.365campaigner.com for more information.
————————————————————————————————————————————————————–
At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

You can order our detailed feasibility report on the supply and distribution of automated gas oil {AGO} in Nigeria by clicking on the link below.

Report Title: DIESEL SUPPLY AND DISTRIBUTION IN NIGERIA, THE FEASIBILITY REPORT.

Report Code: FORA/2014/AGOSUPPLY/44455367

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}

Mobile Number: +234 {0} 8033782777 ;+ 234 (0) 908 335 7733 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

INVESTMENT OPPORTUNITIES IN THE DOWNSTREAM SECTOR OF THE OIL AND GAS INDUSTRY IN NIGERIA.

In the last decade or so, petroleum (oil) has claimed the top position in Nigeria’s export list, constituting a very fundamental change in the structure of the country’s international trade. Oil prospecting began in Nigeria as far back as 1908 but production and export started in 1958 in Shell’s field located at Oloibiri. Other companies joined soon after independence and the number of oil producing and exporting companies now stands at about 11.

The share of oil in total export value rose from less than 1 per cent in 1958 to a peak of 97 per cent in 1984 and has not been less than 90 per cent since then. In the first half of 1990, it accounted for over 95 per cent of total exports and its share of GDP has ranged between 25 and 30 per cent in recent years.

Nigeria produces about 2,000,000 million barrels per day and is the sixth largest oil producing country in the world.

The petroleum industry is usually divided into three {3} major components, upstream, midstream and downstream. Midstream operations are usually included in the downstream category.

The downstream oil sector is a term commonly used to refer to the refining of crude oil and the selling and distribution of natural gas and products derived from crude oil. It cuts across manufacturing, marketing, sales, distribution, transportation and haulage.

There are significant investment opportunities in the downstream sector of the oil and gas industry in Nigeria. Statistics have it that there are over six thousand {6,000} independent petroleum products marketers and six {6} major marketers of distributing and marketing petroleum products across the country.

Nigeria currently consumes an estimated sixty million {60,000,000} liters of refined petroleum products {PMS, DPK and AGO} per day and with population of over one hundred and sixty five million {165,000,000} people, growing at the rate of about 2.7% per annum with an estimated economic growth rate of 5.7% in the past five {5} years, the market for refined petroleum products in Nigeria, is established, growing and sustainable.

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365 Campaigner is a complete suite of social collaboration, communication and management tools for your team.

From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities. Tightly integrated.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals. Visit www.365campaigner.com for more information.
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You can order our detailed feasibility report on the investment opportunities in the downstream sector of the oil and gas industry in Nigeria or offering brokerage services in the oil and gas industry in Nigeria by clicking on the link below.

Report Tile: FEASIBILITY REPORT ON DOWNSTREAM OIL BUSINESS NIGERIA.

Report Code: FORA/2013/300/1082/84637

Report Tile: FEASIBILITY REPORT ON BROKERAGE SERVICES IN THE DOWNSTREAM OIL AND GAS SECTOR IN NIGERIA.

Report Code: FORA/2013/300/1082/73524

Please feel free to use any of the methods below to get in touch with us.

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}

Mobile Number: +234 {0} 8033782777;+ 234 (0) 908 335 7733 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

KEROSENE DISTRIBUTION AND MARKETING IN NIGERIA; THE OPPORTUNITY.

The oil and gas industry in Nigeria would for a very long time to come remain a money spinner for savvy investors who can spot the emerging and existing investment opportunity in the sector and take full advantage of it.

Though the sixth largest exporter of crude oil in the world, Nigeria remains one of the major importers of refined petroleum products in the world, owning to the fact that our refining capacity is greatly undermined by the challenges being faced by the refineries in the country and the general lack of investment in the sector in the country over the years.

Statistics have it that there are over six thousand {6,000} independent petroleum products marketers and six {6} major marketers of distributing and marketing petroleum products across the country. Nigeria currently consumes an estimated sixty million {60,000,000} liters of refined petroleum products {PMS, DPK and AGO} per day and with population of over one hundred and forty million {140,000,000} people, growing at the rate of about 2.7% per annum with a estimated economic growth rate of 5.7% in the past five {5} years, the market for refined petroleum products in Nigeria, is established, growing and sustainable.

Dual purpose kerosene {DPK}, popularly known as kerosene in Nigeria, probably has the highest demand and per liter profit of the three {3} refined petroleum products, with an estimated 60% of the entire population of the country using the product for cooking and lighting.

With the addition of some chemicals, kerosene can be used as aviation fuel, which is much more expensive than kerosene and at such some marketers divert the product to the aviation industry leading to scarcity of the product.

If you are starting kerosene distribution and marketing business with an installed capacity of less than 10,000 liters, you are not required by law to have an operating license.

Basically, the business in two {2} levels namely

Operating a storage and sales facility
Purchase and trucking services
Operating a storage and sales facility involves the buying, storage and sales of the product to the retail market while providing purchase and trucking services involves the purchase and trucking of the product of the retailers. The recommended capacity of the delivery truck should range between 10,000 – 16,000 liters.

The profit potential for kerosene distribution and marketing in Nigeria is usually estimated per liter and the expected profit margin for kerosene supply is between N 10 – N 35 per liter.

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365 Campaigner is a complete suite of social collaboration, communication and management tools for your team.

From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities. Tightly integrated.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals. Visit www.365campaigner.com for more information.
————————————————————————————————————————————————————–
At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for beginners and exporters already in the commodity export market.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

You can order our detailed feasibility report on Kerosene distribution and retailing in Nigeria by clicking on the link below.

Report Title: KEROSENE (HHK) DISTRIBUTION AND RETAILING ( SURFACE TANKER) IN NIGERIA; THE FEASIBILITY REPORT.

Report Code: OilNG0100

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}

Mobile Number: +234 {0} 8033782777;+ 234 (0) 908 335 7733 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

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