Oil And Gas

AUTOMATED GAS OIL {AGO} IMPORTATION AND SALES IN NIGERIA; HOW VIABLE?

Nigeria being an oil producing nation however still relies heavily on imported petroleum products for the servicing of the economy. Such petroleum products as Diesel (AGO) are products utilized by almost everybody on daily basis at and daily usage is still on the increase. Due to epileptic power supply, more Nigerians are carving for 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 gasoil in order to enjoy the usage of their generating sets and industrial plants.

Gasoil importation business involves the buying/sourcing of refined petroleum products from credible and genuine suppliers of refined petroleum products from named load ports which could be vessels or terminals loading them unto a vessel and for discharge to tank farms or named storages of your choice across the country. This type of business could also entail deliveries to other clients which could be in other parts of Africa and even other continents.

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. In –addition to this, a copy of the standard specification for automotive gasoil that is imported into Nigeria.

SPECIFICATIONS FOR AUTOMATIVE GASOIL
Appearnce:                 Clear and bright
Colour ASTM(Max):       3.0
Specific gravity:            0.820-0.870
Acidity:                         Nil
Total Acid No:                0.50
Distillation
a) % recovery 357           90
degrees centigrade
v/v( min)
b)Final Boiling point        385
degrees centigrade
mg KOH/g(max)
Flash point:                     66
Kinematic Viscosity:        1.6-5.5
@ 37.8 degrees
centigrade
Cloud point degrees:          4.4
centigrade(max)
Conradson Carbon :            0.15
Residue on 10% residue
wt. (max)
Ash %wt max:                   0.01
Copper strip corrosion:      Not worse than No.1
3h at 100 degrees
centigrade
Sediment % wt(max):       0.01
Total Sulphur % wt(max):   0.3
Water content% vol(max):  0.05
Diesel index(min) :             47

The epileptic and poor performance of our refineries has created a large vacuum in meeting the demand of consumers of refined gasoil in Nigeria. In this context, a large vacuum has been created. On this note the government and PPMC depend a lot on the major marketers association of Nigeria (MOMAN) and the independent marketers who also include private individuals like you who are ready to seize this lucrative opportunity to break into the world of gasoil importation.

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 nation’s production of crude oil as at today is 2,500, 000 barrels per day while her refinery capacity has been below 25% of the expected output for over the past ten years thus in this regards there is a serious need to augment this short fall by importing. Further-more coupled with pipeline vandalisation the only way to bridge sustainability and supply to the whole nation especially up country where there are very few depots in Abuja is simply by importation and distribution by trucks.

It is estimated there are over 5,000 petrol retailing station in Nigeria with the figure estimated to be growing by 2% annually due to the increasing demand for refined petroleum products fuelled by epileptic nature of power supply, which makes businesses and residential apartment in Nigeria rely more on generators for constant and uninterrupted power and so the need to bridge and enhance supplies of more refined products especially refined gasoil.

The return on investment on the trading of refined petroleum products ranges from 40% – 60% per transaction depending on the season and the application.

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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 detailed feasibility report on the importation of Automated Gas Oil into Nigeria by clicking on the link below.

Report Title: FEASIBILITY REPORT ON THE IMPORTATION OF REFINED AUTOMATIVE GASOIL {AGO} TO NIGERIA.

Report Code: FORA/010/2013/046

Do you require one- on- one consultancy and training 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.

UNDERSTANDING PETROLEUM PRODUCT SPECIFICATION AND CONVERSION RATE, AN INVALUABLE TOOL IN PETROLEUM PRODUCT TRADING IN NIGERIA.

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.

As it is a normal industry practice for all goods , commodities to meet certain standards for optimal and the general use of commodities in this regards organizations such as SON(standards organizations of Nigeria ) has been established by the government to monitor, regulate the nature of goods that come into Nigeria.

In this regards, all commodities be it rice, consumer goods, electronics, perishable and non perishable goods all alike have certain standards that goods must meet before they will be accepted into the country. In this same vain NAFDAC monitors all nature of consumables of food and drugs imported into the country.

All grades of crude oil have certain specifications that they meet likewise refined products that must meet certain specifications before they would be allowed entry into Nigeria. The same applies to even local supplies of refined products to companies in the country. As at today a lot of businessmen and participants in the oil industry do. not know the importance of knowing the standard acceptable specs of products in the country and which could be detrimental to one if one does not know.

It is like not understanding the standard application of BODMAS in mathematics and attempting to solve a whole lot of fraction questions!

This report highlights the different specifications of refined petroleum products that are permitted to be imported into Nigeria and standard grade of bonny light crude oil export grade from Nigeria.

In-addition to this, simple conversion rates of how you can convert from metric tonnes to liters and from litres back to tonnes it also includes the various conversion factors made simple so that you can easily do these computations on your own. These specs are in accordance to the acceptable world standards called ASTM (American standard test for materials)

In this material other coutries specifications such as of Benin Republic and Liberia are also included The importance of understanding specifications in oil trading cannot be overemphasized. One of the yard sticks to know the authenticity of either a buyer or seller in oil trade is their knowledge on specification. Included are the specs of

i.          Petrol (Premium Motor Spirit)

ii.         Diesel (Automotive Gas Oil)

iii.       Kerosene (Dual Purpose Kerosene)

In this write up the important qualities are taken into consideration

A good knowledge of product specifications in the oil and gas business is very important as this the back bone of trading it is also a very strong determinant in pricing of oil products of different kinds of varieties. Ignorance can lead to large trading losses and good knowledge. Can lead to price gains and hedge against losses.

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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 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

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.

SLUDGE TRADING IN NIGERIA; THE OPPORTUNITIES.

Sludge is a dark viscous heavy fluid with appearance like engine/lubricating oils having some combustible properties as observed in the fuel oils especially the low pour fuel oils. There is no standard specification for sludge as approved by DPR or any other petroleum regulatory authority or body. The product however, has a very sharp pungent smell as observed in esters (organic compounds produced from chemical reactions of organic acids and bases).

The dark fluid has a homogenous appearance when properly mixed and a heterogeneous when not properly mixed. There is no specific type of specification as some are much better than others in quality depending on their respective sources but the finer and smoother the appearance, the higher the price it will be sold for.

The quality of the sludge is what determines the price and a way of handling sludge transactions is to first require a sample from your seller which you will divide into three portions, the first will be taken to your buyer to agree on price with which you will draft your sales contract, the 2nd portion you will use do to an analysis or testing so that you can have the specs of what you are delivering and the third portion will be tagged and kept for yourself.

It will be also be imperative to keep a copy of the analytical report for your records like fuel oils sludge properties is very close and similar to them but most times the density is higher than that of fuel oil.

The quantity of sludge is also measured in liters as most liquids are.

The product can be sourced from only the Nigerian Ports Authority and its branch offices where all the ports exist. There are however, some fraudulent individuals who execute some blending processes to produce something quite near it but the quality is very poor.

It is advisable that if you want to trade in sludge the only approved organization is the NPA and its subsidiaries.

How to trade sludge in Nigeria

This is the easiest way to trade sludge in Nigeria is by buying loading it in and making the supply. The procedure is as follows

(1) Get registered with the Nigerian Ports Authority or with any accredited dealer with them that way it ensures that you are dealing with the right person. Once this is done make sure you get a sample from the seller

(2) Ensure you give the sample to the intending buyer and make sure you do the specification as analyzed above

(3) After determination of the quality you get your truck to get loaded ensure that you pay all the loading expenses and get programmed for loading. An idea of freight rates will also be an added advantage as many truck drivers would like to use this opportunity to reap of many new entrants into the business

(4) Once your truck is loaded you deliver to the buyer. The off takers and buyers for sludge are numerous even the Lagos market will be difficult to satisfy

(5) You have to ensure that your buyer signs the waybill for receipt of the product and invoice them always make sure that the days of payment is not too long eg 3 days after delivery, a post dated cheque or 75% of the payment of the product when the truck arrives and the balance 25% after 3days.

The return on investment on the trading of sludge ranges from 50% – 80% per transaction. This can be done with good understanding of the market, cheap source of sludge.

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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 sludge trading in Nigeria by clicking on the link below.

Report Title: SLUDGE TRADING IN NIGERIA; THE FEASIBILITY REPORT

Report Code: FORA/2013/3074841

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.

VESSEL CHANDLING BUSINESS IN NIGERIA;THE OPPORTUNITIES.

Chandling business in Nigeria is one of the easiest business that one could venture in. Unlike oil trading and other upstream and midstream businesses which requires expertise, chandling business is one that requires little or no expertise.

Due to increased vessel activities within sub-Saharan Africa and the poor turn around maintenance of vessels in sub-Saharan Africa has resulted to large amounts of demurrage being paid to the owners of these vessels but at the same time it has been able to create opportunities in the areas of chandling.

A ship chandler is a retail dealer who specializes in supplies or equipment for ships, known as ship’s stores. The job of a ship chandler is very unique because it caters specifically to only one line of business therefore allowing a complete exclusivity to both parties – the seller as well as the client. Because of this exclusivity and the nature of the profession, it so happens that each and every ship chandler is held in high esteem and regard.

Items that could be found in a chandlery might include: cornflakes, Fresh water, evaporated milk, butter, sausages, indomie noodles, cracker biscuits, eva water, canned drinks, sardines, fruit juice, tissue paper etc

A few of these services are stated below

(1) Supply of provisions to the crew members/vessels: on requisition by the crew members you will be hinted on a list of provisions such as drinks, biscuits, cigarettes, milk, sugar, sausages, bacon, cornflakes, bottled drinks, sardines, baked beans, ketchup. other items such as toothpastes, toiletries etc

(2) Provision of stationeries: where you will be requested to provide stationeries such as writing paper, biros, pens, pencils, markers, colours etc

(3) Provision of bunker fuel: in this aspect the captain and chief engineer of the vessel contacts you of the type of bunker (fuel) that they would require. They would also advise you on the time they would be ready for this. Once you have this information as the chandler it is your responsibility to get bunkering companies that will handle the process

(4) Provision of fresh water: this will be the responsibility of the chandler to provide once the crew members have made their requests in this regards. This fresh water does not refer to bottled water but water that is used on the vessel by the crew for washing, taking their bath and cooking this is one of the best opportunities that abounds in this area

(5) Adhoc requests: this will entail other various requests by members of the crew such as maybe medical services, protective agency, electrical and other forms of repair works that maybe required on the vessel

For the scope of this feasibility study we will restrict ourselves to the ones that have been mentioned above. The advantage here is that there are always demands to be made from this crew members and there is no complexity that comes servicing these orders which come in the form of purchase orders(POs) which will be sent to you via email from the vessels.

It depends on what structure that you intend having or putting in place as you can either execute these services yourself or you get other experienced hands to do so factoring your own commission into the orders. Also the area of concentration matters for example if you want to deal in supplies of provisions alone or maybe 3 aspects or if possible all aspects will determine how you would structure your business but if you intend to do a lot of them it means that you should be looking at having much more capital to trade with.

The return on investment on the business ranges from 20%- 50%per transaction. This can be done depending on your area of interest in which of the sector(s) that you want to be involved in.

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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 Vessel Chandling in Nigeria by clicking on the link below.

Report Title: VESSEL CHANDLING BUSINESS IN NIGERIA; THE FEASIBILITY REPORT.

Report Code: FORA/2013/3074841/08574

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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