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8 Oil and Gas Investment Opportunities in Nigeria 2019

Gudtalent Chrisent

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oil and gas investment opportunities

How to Start Oil and Gas Business In Nigeria

Report has it that: Nigeria is one of the world’s biggest oil producers in the world and yet most of its people remain in absolute poverty since Nigeria has been rated the poorest country in the world.

Well, that will be a talk for another day. The thing here is Oil and gas investors in Nigeria are making millions of dollars every day and you could just be one of them if you take the step and invest in Nigeria’s Oil and Gas sector today.

I almost forgot to tell you about it being capital intensive and can as well be invested into on a small scale.

Nigerians always attribute wealth to the name; Oil and Gas’ that is to tell you there is money to be made in oil and gas business, seriously, you need to get close to some guys who are into oil business in Nigeria to understand what I am talking about. When I was still in Lagos, i used to visit my friend in his father’s office complex and I’ll do you will see Mercedes Benz cars of N80 million, Bentley of N100 million, Costly Range Rovers in different shapes models all over the place. Guess who own those cars?

Of course they are owned by Oil Investors occupying some of the offices in the complex! That tells you the extent of wealth in the business.

Its also good to see that investing into oil and gas business is diverse and is almost business for everyone, meaning that no matter who you are and your financial capacity you can still invest a decent amount in the oil and gas Industry and make your own mega buck.

In Part 1 of this article, I talked about oil and gas investment opportunities coming in two different forms, which are

  1. Upstream sector and
  2. Downstream sector

Majority of the investment activities in the Upstream oil and gas sector is capital intensive and meant for large business corporations with large sum of money to invest while most of the activities is at Downstream sector is where most of us can afford to invest.

So, I’m breaking this down so before you talk of investing, you need to know where to invest, the decision you make after this depends solely on your capacity. What I mean is: by the end of this article, you should be able to make a choice of either building a Refinery or a Kerosene Tank by the roadside. Whichever way you take, be sure you’re going to make good money.

This post also answers the these terms below

  • oil investment opportunities
  • how to invest in oil and gas in Nigeria
  • petrol investment opportunities
  • investment in oil and gas sector in Nigeria

The Oil And Gas Investment Opportunities – How To

  1. Oil Refinery

This is the most ambitious of all the investment opportunities in oil and gas and the heartbeat of the Upstream sector. It can cost as high as $5 billion to as much as $500 billion to build one oil refinery and take at least two years to complete. As you can see, this is not business for faint hearted Investors. Refinery requires huge deployment of fund, careful environmental and physical planning and technology.

In the Nigeria-Oil-and-gas sector, People are trying very hard to make me believe that building a refinery isn’t economically viable but I don’t believe them. Thank God someone like Dangote is doing this already at least as a service to Nigeria and Africa which will help in creating Job Opportunities for many.

If you can afford this or there is anyway you can pull together Investors who are ready to shell out huge fund go for this. You will be buying crude oil here in Nigeria, refine and sell locally to millions of Nigerian oil marketer and distributors, export to other African countries and even Europe, plus you make millions of dollars from other petroleum by-products.

You can imagine how much Dangote is going to be making from his refinery business.

  1. Fuel Importation

This is where most of the big men in Nigeria are falling over each other, making untold billions of legitimate and corrupt money at same time. You too can invest in fuel importation and make good and legitimate money doing the business. There is currently importation root from Niger Republic. One of the major requirement for fuel importation is having a Tank Farm or group of filling stations where the imported product can be stored.

Fuel importation is a big money business and heavy infrastructures are also required to start it. To be able to get the importation license and permit, you will need to have fuel depot and functional jetty among other things. Those who are into it are making double kill from the sale of products and Government subsidy money. This is what the like of Ifeanyi Uba (Capital oil), etc are doing that’s making them the Anambra Billionaires that we all know.

You can go into this on a very small scale and make good money.

  1. Oil Servicing Business

Cost of running a refinery and oil company equipments are high as they require constant maintenance and servicing. This is where the business of oil servicing companies comes in. It is one of the most essential aspect of the Upstream and Downstream sector of Oil and Gas Industry.

Huge money is flowing in Nigeria oil and gas sector. You and your group can grab part of it take the step and invest now. To be in this, you will need to put together the technology, equipment, and highly skilled personnel to handle the oil machines.

  1. Petrol Filling Station

Thousands of oil Investors across the country have been turning over billions of naira annually revenue from Petrol filling station business. It is one cool business, full of money for those who have the investment capital of setting up a filling station. It likely you know someone who owns a filling station and you can tell he/she is rich doing the business.

  1. Petroleum Haulage

Petroleum Haulage as an investment opportunity in oil and gas is a service that involves the transportation of petroleum products from one location to another. One Petrol Tanker is enough for you to start this business and it is very lucrative. From one tanker, you can expand to build fleet of Tankers and huge Haulage company.

Tanker owners charge about N180,000 to transport product from Lagos to Kaduna. According to insiders information, the transportation of petroleum products from places like the Port Harcourt refinery to other various parts of the country is indeed good business and worth trying out if you have enough capital to start with at least 1 trailer. The head of Mark engine costs about 8-12 million naira, then get local fabricators to construct the tank for you for about 1.2-3-5 million. So, with 10-15 million naira, you should have Tokumbo trailers for Petrol haulage and logistics business.

The price for haulage services ranges from N20, 000 to N200,000 per trip, depending on the location the product will be taken to and the capacity of the tanker.

Most tanker measure about 25,000 to 33,000 litres.

  1. Diesel Supply

Many guys are going into this one now and my company (Gudtalent & Co Nig Ltd) is considering joining the deal. Diesel Supply Business from my findings is a mega million-naira business to try out.

  1. Kerosene Business

One thing most people don’t know about Kerosene is that the product is actually gotten so cheap from NNPC. From NNPC you can land the product at unit cost of N60 per litre and sell for N120-N150 per litre. That is what filling station owners and other dealers do.

If you lift 10,000 litres and gain at least N50 per litre, you will gain N50 x 10,000 = N500,000.

  1. Cooking Gas Refilling Business

The main problem I have with Kerosene business these days is that is fast becoming a rural business and not thriving well in cities anymore as Gas cooker is fast taking over homes and making the demand for kerosene to drop drastically.

So, you might as well consider starting a Gas business refilling business.

Let me know what you think in the comment section.

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Top 50 Oil and Gas Companies in Nigeria

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Are you curious as to which oil and gas companies make the top 24 list in Nigeria? I might be the only one feeling this way, but I think that everybody aims to find their spot in the Nigerian oil and gas industry.

Have you thought of where you’d like to work after graduation? Did the oil and gas sector just flash through your mind? If it did, I totally agree with you! This sector is one of the highest paying sectors, if not the highest.

I know you can imagine yourself getting a well-paying job freshly out of school if you are reading this as a student. If you are done schooling, you may consider working in an oil company in Nigeria because of the lucrative compensation packages.

Dear reader, money is an important part of life. A lot of it even, even better. Wealthier people are known, regarded and respected even in our religious institutions.

Oil and Gas companies in Nigeria.

Oil and Gas companies in Nigeria

Oil and gas companies in Nigeria contribute greatly to federal government revenue because it’s Nigeria’s largest export.  Let me now review the top 50 Oil and Gas companies in Nigeria.

The Top 50 Oil and Gas Companies in Nigeria  

It is my hope that you find the following list of the top 24 oil and gas companies in Nigeria useful.

  1. Shell

Shell has for many years led Nigeria’s oil and gas sector. This company was the first to discover a commercial oil field in Oloibiri, Delta State.

Shell is owned by the Royal Dutch Shell, and is responsible for over 21% of the total petroleum produced in Nigeria. That is approximately 629,000 barrels daily sourced from over   80 fields.

  1. Chevron

With its over five decades of operation in Nigeria, Chevron is in tough competition for the place of the most popular oil and gas company in Nigeria.

It produces hundreds of thousands of barrels of crude oil and several millions of cubic feet of natural gas every day.

Chevron deals in about every phase of oil and gas, including natural gas, exploration and production of hydrocarbon, geothermal energy industries, manufacturing and sales of chemicals, refining, transportation and marketing of end products.

  1. Total Nigeria Plc.

Total is an international energy company actively functioning in over 130 countries. It has for more than 50 years, provided oil and gas services in Nigeria, and is one of the leading companies in this sector.

  1. Exxon Mobil Oil

Exxon Mobil, with a net worth of over $400 billion, is another big player in this industry. This company is involved in the exploration and production of crude oil and natural gas.

Exxon Mobil isn’t just concerned with oil and gas. It has spread its tentacles to various other business ventures, such as deep water production, and so on.

  1. Addax Petroleum

Addax Petroleum came into being in Nigeria in 1998, by the signing of two Production Sharing Contracts (PSCs) with the Nigerian National Petroleum Corporation (NNPC). It currently runs with more than 100 oil wells in Nigeria.

  1. Nigerian National Petroleum Corporation (NNPC)

The Nigerian National Petroleum Corporation (NNPC) was the result of the merger of the Nigerian Petroleum Corporation and the Nigerian Federal Ministry of Mines and Steel on the 1st of April, 1977.

NNPC is a state-owned corporation saddled with the responsibility of managing the country’s oil and gas resources, and presently runs many depots across Nigeria.

The company has refineries in Kaduna, Warri, and many others.

  1. Nigeria Liquefied Natural Gas Limited (NLNG)

Nigeria Liquefied Natural Gas Limited, a world-class oil and gas company, was formed in 1989. It has since then helped in shaping Nigeria’s oil and gas sector.

The company deals majorly in natural gas and geothermal energy.

  1. Equinor Oil and Gas Nigeria

Formerly known as Statoil, Equinor has been operating in Nigeria since 19(what?) and has attained great feats since then.

Equinor is known for its role in the exploration of Agbani Oilfield in the Niger Delta region.

  1. Petrobas

Petrobas is a Brazil state-owned oil and gas company that has made its name in the Nigerian oil and gas sector. Despite its popularity in Brazil, Petrobas decided to venture into the African market and make a name for it. The company focuses on oil, gas and alternative energy resources.

  1. Nexen Inc.

Nexen Energy ULC is an independent subsidiary of CNOOC Ltd. Nexen Inc. is one of several Chinese companies under CNOOC Ltd. that has come to become notable businesses in the oil and gas sector.

Its major assets in Africa are offshore projects that started in 2012 in Nigeria, and deep water explorations.

  1. Hardy Oil and Gas Nigeria Plc

This is one company that is interested in breaking into the Nigerian market. Its financial interest is presently in onshore assets in Ataka and Oza.

Together with Bayelsa Oil Company Limited and Millenium Oil and Gas Company, it is one of the best oil fields explorers.

Hardy Oil and Gas Nigeria has a 20% interest in Atala and Oza, and a net worth of over £67 million.

  1. Conoil Nigeria

Conoil Plc, another big player in the industry, is a petroleum products marketer, producer and marketer of lubricants, household and liquified petroleum gas for home and industrial use.

The company, formally known as National Oil and Chemical Marketing Plc, was incorporated as a private limited liability company in 1960. It became a public company in 1989.

Conoil is the first bulk marketer of petroleum products in Nigeria.

  1. Eni (Saipem)

Eni Saipem is another big name in the Nigerian oil and gas sector. It deals mainly in gas and global oil.

This oil and gas company is operational in 71 countries across the globe, and has a 33,000 manpower base.

  1. Oando Plc.

Oando is named Africa’s largest independently-owned oil trading compay, dealing in a wide range of refined petroleum and crude oil products.

This company was born in 1956 when ESSO (what does it stand for?) started operating as a petroleum marketing company in Nigeria.

Wale Tinubu, the nephew of Bola Tinubu is the Chief Executive Officer (CEO) of Oando.

  1. Sahara Energy

Sahara Energy Resource Ltd. is another big player in the industry. It is located in Victoria Island, Lagos, and is well-known for its role in oil production, marketing and trading.

Sahara Energy is very active in the downstream, midstream, upstream, infrastructure and power sectors.

  1. Nestoil

In 1991, Nestoil started as the oil and gas arm of Obijackson Group. At that time, participation of local companies in the oil and gas sector was minimal.

Nestoil has beaten expectations by completing and delivering top-notch services on time. This successful company now boasts of more than 1,500 employees.

  1. Seplat Petroleum

Seplat came into being in June 2009, through the collaboration of Platform Petroleum Joint Ventures Limited and Sheba Petroleum Development Company Limited.

Their primary focus is to pursue opportunities in the upstream oil and gas sector, and divestment opportunities arising from major IOC’s portfolios.

  1. Halliburton

Halliburn came to Nigeria in 1959 and the company specializes in mostly oil field services. This company is doubtless one of the largest providers of oilfield services in the country presently

  1. Intels

Intels Nigeria Limited was formed in 1984,  and has become a  top producer of oil and gas in Nigeria.

Intels Nigeria markets refined petroleum products, manufactures and markets lubricants, household and liquified petroleum gas for domestic and industrial use.

  1. Forte Oil Plc.

Forte Oil Plc was founded on the 11th of December, 1964 as British Petroleum Nigeria Limited. Fourteen years later, the company changed to a public liability company.

Forte Oil is chaired by Femi Otedola, a Nigerian businessman, fuel products importer and philanthropist.

  1. Schlumberger Oilfield Services

Schlumberger Limited is a world-class oilfield services organisation providing technology, data and information solutions and integrated project management, thereby maximising reservoir performance for customers in the oil and gas industry.

  1. Amazon Energy

Amazon Energy is one of Nigeria’s major diversified energy services providers, that builds infrastructure to support the oil and gas, and power sectors.

  1. MRS Oil Nigeria Plc

MRS is an oil marketing company with its headquarters situated in Lagos, Nigeria. It started marketing petroleum products in Nigeria in 1913 under the brand name Texaco.

Their major operations are wholesale and retail of petroleum, aviation fuel and blending lubricants.

  1. Chibeco Oil and Gas

Chibeco is also a big name in Nigeria’s oil and gas sector. The company is committed to providing high quality petroleum products to customers promptly, and at reasonable prices.

Besides the 24 oil and gas companies in Nigeria listed and discussed above, there are more oil and gas companies in Nigeria and they are:

  1. Ariosh Limited

  2. Ascon

  3. Cakasa (Nigera Company Ltd)

  4. Capital Oil Plc

  5. Crestville Engineering and Technology Company Limited

  6. DeltaAfrik Engineering Limited (Deltatek/WorlyParsons)

  7. Denver Petroleum Services

  8. Elf Marketing Nig Ltd

  9. Fabrico Oil and Gas Limited

  10. Gaslink Nigeria Limited

  11. Geolynx Ltd

  12. Honeywell Oil and Gas Limited

  13. Linkso Engineering Design and Consultancy

  14. Lonadek Oil & Gas Consultants

  15. Lordmart Nig Limited

  16. Lubcon Limited Oil and Gas

  17. National Engineering & Technical Co. Ltd. (NETCO)

  18. Nigeria Agip Oil Company Limited

  19. Point Engineering Ltd

  20. Sigmund Engineering Company Limited

  21. Texaco Nigeria Ltd

  22. Tudaka Petroleum & Gas Co Ltd

  23. Weltek Nigeria Limited

  24. Zenon Petroleum and Gas

Conclusion

The Oil and Gas sector is Nigeria’s largest source of internally-generated revenue. The oil and gas sector comprises multi-billion naira companies and a large employee base.

Of course, the industry is the big money place. If you doubt my statement, Google information about the CEOs of oil and gas companies/firms and see their net worth. I can’t imagine anyone leaving a company as pocket-filling as that.

Oil and Gas companies are still thriving, even though some people have seen it as the cause of Nigeria’s lack of economic diversification. If this post has been beneficial to you, please like, share, and leave a comment.

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Oil and Gas

Investment Opportunities In Nigerian Oil and Gas Sector 2020 – Part 1

Gudtalent Chrisent

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Crude Oil Business oil and gas investment opportunity

Oil and Gas Investment Opportunities In Nigeria

 Business Opportunities In The Oil And Gas Sector

in the oil and gas sector, foreign and domestic investors are being encouraged through improved fiscal incentives. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors making it a good investment opportunity in the oil and gas sector.

  1. Upstream Activities
  2. Petroleum Exploration and Exploitation.
  3. Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
  • Search for development of a local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, drilling mud, bits fittings, drilling cements, etc.
  1. Other areas in the services sector of the upstream are:
    1. Construction and Installation
    2. Maintenance
    3. Pipelines
    4. Well Services and
    5. Transportation Support Services.

Related: Top 16 owners of oil blocks in Nigeria

  1. Downstream Activities:
  2. Domestic Production and marketing of Liquefied Petroleum Gas (LPG)
  3. Manufacturing of LPG cylinders, valves and regulators, installation of filling plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.
  • Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.
  1. Establishment of processing plants and industries for:The production of refined mineral oil, petroleum jelly and grease. The manufacture of bituminous-based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. The building of asphalt storage, packaging and blending plants to handle the product for export.
  2. Development of Phase II (Phase III to join later) of Nigeria Petrochemical Programmed.
  3. Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.
  • Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.
  • Establishment of small scale industries to produce chemicals and Solvents, for example Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.
  1. Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery to refine the crude. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products. However, business opportunities exist for the construction of a petroleum refinery in bonded environment with adequate export facilities for dedication to the petroleum export market. Companies in Nigeria with the technological know-how can undertake turn-around maintenance of refineries. Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuous supply at competitive prices in the market. Other investment opportunities in the oil and gas sector is contingent upon refining and ancillary activities that manufacture of special products such as:- Insecticides

– Industrial and food grade solvents
– Cosmetics
– Mineral Oil, petroleum jelly grease

– Asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined product surplus also exists as an opportunity in refining.
– Bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc., and

Related: Profitable crude businesses in Nigeria

  1. Products Marketing: Petroleum Product Marketing as an investment opportunity in the oil and gas sector would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.

While indeed those investment opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers.

Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc. in part 2 of this article, we will talk more about all this.

The nation’s pipeline and depot network consist of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breathe of the country. The petroleum system, therefore; must be maintained in a healthy state for the effective and efficient distribution of products within and outside the country.

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