Oil And Gas

PROVIDING VESSEL HIRING AND CHARTER SERVICES IN THE OIL AND GAS INDUSTRY IN NIGERIA; THE OPPORTUNITY.

An estimated $8 billion is spent annually on outsourcing of services in the oil and gas industry in Nigeria in operations such as fabrication, engineering procurement, construction (EPC), Front End Engineering Design (FEED), conceptual designs and seismic studies. This figure is projected to hit $15 billion within the next few years (Business Day, 2008).

Regrettably, despite these huge sums of money spent in servicing the industry, only a very little proportion of the accruable profit is spent in Nigeria. Majority of the amounts are repatriated abroad, where most of the equipment is manufactured; and providing employment opportunities for citizens of other countries.

The major reason for this situation has been attributed to low local content (LC), which is a situation where most of the service contracts are awarded to foreign firms because local indigenous firms lack the requisite skills, technical expertise, manpower and production capacity and capability to compete favourably.

The passage and assent of the Nigerian Local Content Policy is an expression of the desire of the Federal Government of Nigeria to ensure that companies owned by Nigerians actively participate not only in the oil and gas trade of Nigeria but in all technical aspects of the Nigerian economy.

The entire essence of the new law is to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote the employment of Nigerian staff in the Industry.

Along with the Cabotage law in the maritime industry, which seeks to restrict the use of Foreign Vessels in Domestic Coastal trade to promote the development of indigenous tonnage and to establish a Cabotage vessel financing fund and for Related Matters, Nigerian investors can better harness the opportunity available in the oil and gas industry in Nigeria and perhaps start providing vessel, barge and tugboat leasing services required by the industry.

Haulage of crew and equipment is an essential part of an oil and gas operation which requires the use of barges, tugboats and vessels.

A Barge is a flat – bottomed boat built mainly for river and canal transport of heavy equipment’s. Some barges are not self-propelled and need to be towed or pushed by towboats. In the oil and gas industry, they are mostly used in swampy operation for the haulage of crew and equipment.

A tug boat is a boat that maneuvers vessel by pushing and towing them. They are usually used to tow barges.

A vessel is a craft for travelling and transporting goods on water and is usually larger than boats and barges.

Providing equipment leasing services in the oil and gas industry in Nigeria is surely a viable business but the investor needs to be armed with the right information to succeed in the business.
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You can order our detailed feasibility report on providing vessel hiring and charter services in the oil and gas industry in Nigeria by clicking on the link below

PROVIDING VESSEL HIRING AND CHARTER SERVICES IN THE OIL AND GAS INDUSTRY IN NIGERIA; THE OPPORTUNITY.

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.

ESTABLISHING A TANK FARM IN NIGERIA

Nigeria though the sixth largest exporter of crude oil in the world, remains one of the largest importers of refined petroleum product in Africa, consuming about 1.2 billion liters in 40 days due to vandalization of oil distribution pipeline and the poor state of our local refinery in the country has greatly affected the capacity of the local industry to meet the demands of consumers in terms of refined petroleum product like AGO, PMS and DPK.

In order to receive, store and re-distribute these products to the end users, tank farms are required to take the product from the vessel from there offshore position into the tank farms for temporary storage through pipes. These facilities are very good for companies buying products like AGO,PMS and DPK from offshore ,the facilities are well equipped to handle large volume of product pending when loading is done on trucks and tankers.

The oil and gas market in Nigeria is large, expanding and sustainable and the provision of tank farm services is one of the lucrative aspects of the industry.

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.

The provision of petroleum storage services cost as much as between N3 – N5 /liter per month. The investor can choose to build the tank farm from scratch or acquire the property from owners though this option is very rare. The investor can also lease the facility for a long period of time from the owners.

Some of these facility builders took loans from bank and are seeking for interested buyers willing to purchase the facilities from them so that they can clear-up there bank loan and make some profit in the process.

The facility are usually valued based on there location, storage capacity and the size of the land the facility is sitting on.

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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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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 pre- feasibility report on petroleum tank farm in Nigeria by clicking on the link below.

Report Title: PRE-FEASIBILITY ON PETROLEUM TANK FARM IN NIGERIA

Report Code: fora/8779937/01-23432

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.

INVESTMENT OPPORTUNITIES IN TRUCK TERMINAL OPERATIONS IN THE OIL AND GAS INDUSTRY IN NIGERIA.

A combination of factors like vandalization of oil distribution pipeline and the inability of the four {4} local refinery in Nigeria to meet the local demands of the country in terms of refined petroleum products has created the need for the importation of the these products and storage in tank farms for subsequent re-distribution to other parts of the country.

From there offshore position to discharge these products from the vessel into the tank farms an harbor is required and this only means that the location of the tank farm would be close to a large body of water {sea/ocean}. These factor has limited the distribution and spread of tank farms in Nigeria with most of them located in Lagos, Port Harcourt, Warri and Cross River areas where large body of water exist with Lagos accounting for over 65% of the product distribution network in the country.

The northern states in Nigeria are usually land-locked in nature and at such to get the products to there areas , one would require the use of trucks especially since the collapse of the rail system in Nigeria.

The influx of trucks into the Lagos metropolis for the purpose of lifting and loading refined petroleum products has no doubt created a lot of traffic congestions for commuters especially in areas where these tank farms are stationed.

In order to mitigate these traffic problem as a result of trucks parking along the road,the Lagos state government established the Bola Ahmed Tinubu Truck Terminal at Orile-Iganmu with a capacity to accommodate 1000 trucks .Similarly,the neighboring Ogun state established a truck terminal in the state but inspite of all these investment ,more still needs to be done especially if you add to the fact the construction of the Lagos-Badagry expressway would take about 50% of the holding capacity of the Bola Ahmed Tinubu Truck Terminal at Orile-Iganmu.

These unconventional investment opportunity in the oil and gas industry in Nigeria is open to any savvy investor to take advantage of and make good returns .

Construction of truck terminals is one of those project that government is interested in partnering with interested investors to develop and can be seen as the real estate aspect of the oild gas industry and like you know ,real estate investment is one of the best investment windows in the world.Once the structure is on ground, it continues to make money for the investor.

Should you require a market research report on the above subject matter, please do contact us.

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

1. SETTING UP A HAULAGE BUSINESS IN NIGERIA; THE REPORT.

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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.

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.

PREMIUM MOTOR SPIRIT {PMS} SUPPLY TO LOCAL INDUSTRIES IN NIGERIA; HOW VIABLE?

Petroleum products are among the most valuable natural resources abundantly available in our country. Nigerians and people everywhere use petroleum products as a fuel in their automobiles, generating sets, industrial plants and for cooking purposes, thus making petroleum products an essential commodity that is needed for the daily operations of individual, industrial and national activities.

Nigeria being an oil producing nation however still relies on imported petroleum products for the servicing of the economy. Such petroleum products as Petrol (PMS), Diesel (AGO) and kerosene (DPK) are products utilized by almost everybody on daily basis at an average of 60 million litres daily usage. Due to increasing level of standard of living, more Nigerians are increasing the number of cars on the road, the need for constant power supply to aid uninterrupted production of goods and services and also for domestic use more Nigerians are increasing the demand for fuel in order to enjoy the usage of their generating sets and industrial plants.

This report highlights the financial viability of establishing a refined petroleum product supply business that seeks to source to the products from tank farms/ depot and supply same to local industries, telecommunication site, eateries, filling stations etc.

With a population of over one hundred and sixty five million { 165,000,000} 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 refined petroleum products in Nigeria, established ,growing and sustainable.

The nations demand for refined petroleum products currently stands at an estimated sixty million {80,000,000} liters for Premium Motor Spirit {PMS}, Dual Purpose Kerosene {DPK} and Automated Gas Oil {AGO} per day.

i. Petrol (Premium Motor Spirit) – 40,000,000 ltrs

ii. Diesel (Automotive Gas Oil) – 25, 000,000 -30, 000,000 ltrs

iii. Kerosene (Dual Purpose Kerosene) – 20, 000,000 ltrs

PMS: Premium Motor Spirit (Petrol)

Petrol is a complex mixture of hydrocarbon produced by mixing factions obtained from the distillation of crude oil with brand –specific additives to improve performance. Under normal conditions, it is a volatile liquid with a characteristic odour.

The product can be sourced from any of the tank farm/depot scattered across the country. Depot exists in Lagos, Warri, Port Harcourt and Calabar.

It is advisable that the investor sources the product from the point close to the point of discharge.

The growth and development of any community/nation/country is dependent on power. Self development sustenance and empowerment are all determined by power. A nation can only develop with power. However, the case is different in Nigeria as power is either epileptic or non-existent. This is what has caused many industries (which include: small, medium and large scale) to migrate to neighboring countries where they would be able to thrive well.

Hence the only solution is for companies to create their own source of energy production in order to keep in business. A lot of individuals have capitalized in this area and made so much money in this regards, making a good livelihood and Sustenance area for themselves

The return on investment on the trading of PMS ranges from 20% – 50% per transaction.

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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.
————————————————————————————————————————————————————–
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 refined petroleum products trading to local industries in Nigeria by clicking on the link below.

Report Title: HOW TO SECURE AND EXECUTE LOCAL PURCHASE ORDER {LPO} FOR THE SUPPLY OF REFINED PETROLEUM PRODUCTS.

Report Code: FORA/010/2012/060

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.

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