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If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan. This is a Private Mini Crude Oil Refinery Business Plan in Nigeria. It’s a well-structured comprehensive business plan for this business.  Therefore, in addition to all the normal business plan features, we have in it other crude oil refinery development tutorials. So, you do not only have a business plan with construction, refine processes, marketing, financial analysis etc., you also have all the researchable concepts explained.

INTRODUCTION:

Why Start a Private Mini Crude Oil Refinery?

In Nigeria, it’s the federal that runs petroleum refinery. But in recent time, private investors are issued licenses to return into the industry.  Hence giving room to those that have an interest within the oil and gas industry to return in. Although it’d be pretty expensive running a typical petroleum refinery, but if you don’t have all the cash, you’ll still start an petroleum refinery business by venturing into the mini petroleum refinery business.

As a matter of fact, starting a mini petroleum business is indeed one among the means of owning a business portfolio within the oil and gas industry. It’s often needless to say one business that has made tons of individuals’ millionaires or maybe billionaires. It’s true that playing within the oil and gas industry might require a lot of funds, but within the end of the day it sure does pay.

The start-ups:

In fact, choosing to start out a mini petroleum refinery business also means you’ve got plans on how you plan to boost the startup capital. And, get the specified license and permits.  Compete within the market and make your business known to the people.

As a matter of fact, before launching this sort of business, it’ll pay you perform your marketing research, economic and price analysis and in fact feasibility studies. If you get things right before launching your mini petroleum refinery business, it’ll not take you long before you reach and begin smiling to the bank.

THE BUSINESS PLAN:

Our Products and Services

Our intention of starting Completefmc Oil & Gas, Ltd. is to make profits from the crude oil refinery industry cum oil and gas industry.  And we will do all that is permitted by the law in Nigeria to achieve our corporate aim and ambition.  Therefore, below are some of our products offerings;

  • Gasoline production
  • Kerosene production
  • Distillate fuel oil (diesel fuel) production
  • Aviation fuel production
  • Residual fuel oil production
  • Lubricant production
  • Production of byproducts – aliphatic and aromatic chemicals
  • Diesel fuel oil
  • Jet fuel
  • Liquefied petroleum gases
  • Residual fuel oil
  • Other refined petroleum products

Our Mission and Vision Statement:

Our vision as a crude oil refinery business is to build a highly profitable business that will have a strong global presence.

Therefore, our mission is to establish a standard and world class crude oil refinery business that in our own capacity will favorably compete with leaders in the industry. We want to build a crude oil refinery business that will be listed amongst the top 5 brands in Nigeria.

Our Business Structure:

Ordinarily, we would have succeeded in running our small scale crude oil refinery business with few employees, but as part of our plan to build a top flight crude oil refinery business in Kwali, FCT, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.

If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

The picture of the kind of crude oil refinery business we intend building and the business goals we want to achieve is what have informed the amount we are ready to spend to ensure that we build a business with dedicated workforce and a robust distribution network that cut across Nigeria, and the global market.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Completefmc Oil & Gas, Ltd.;

  • Chief Executive Officer (President)
  • Crude Oil Refinery Manager / Petroleum Engineer
  • Human Resources and Admin Manager
  • Sales and Marketing Officer
  • Accountants / Cashiers
  • Crude Oil Refinery Machine Operators
  • Tanker Drivers/Crude Oil Products Wholesale Distributors
  • Customer Service Executives

 Our Target Market:

When it comes to retailing petroleum products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who make use of any of the following gasoline; kerosene, distillate fuel oil (diesel fuel) and aviation fuel. Then, residual fuel oil, lubricant, aliphatic and aromatic chemicals. Others are diesel fuel oil, jet fuel, liquefied petroleum gases, residual fuel oil and other refined petroleum products..

One thing is certain; there are no restrictions to the demographic and psychographics composition of the target market for petroleum products in the world. This goes to show that the target market for petroleum products is wide and far reaching. In fact,  you can create your own make niche yourself to serve a specific purpose.

If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in retailing and wholesale distribution cum exporting of petroleum products to the following groups of people;

  • Cars cum automobile owners
  • Generators cum plant owners
  • Corporate organization
  • Households who make use of petroleum products
  • Industries that depends on raw materials from crude oil manufacturing industries to produce their products
  • Restaurants and canteens that make use of petroleum products
  • The shipping industries
  • The aviation industry

Prospects:

Modular refinery which is right for stranded production fields and remote locations might be sited within the riverine areas where accessibility to the petroleum products at the present seems to be very difficult, thanks to logistics. This may allow the dwellers in such areas to get the products at cheaper price than what’s obtainable there at the present. Modular refineries— are often put together within a brief time span of about 15 to twenty months for modular refinery of 20,000bpsd and may be established within a brief period of your time at different locations. This ultimately does away with the necessity for expensive transportation of petroleum through pipeline covering long distance, which more often than not, are vulnerable to vandalization as has been the case in several parts of the oil producing States in Nigeria.

In addition to promoting availability of petroleum products and helping to conserve exchange utilization for the importation of petroleum products, establishment of modular refineries in Nigeria will cause rapid production of feed-stocks for downstream petrochemical plants.

RESEARCHABLE CONCEPTS:

We had promised at the first paragraph of this article to present explanations for some of the researchable concepts.  We have decided to present them in the form of challenges for operating this business and its plans.  So, still read on.

Challenges to operating Modular Refinery in Nigeria:

Regulatory Uncertainties

The Nigerian oil and gas industry is heavily regulated by multiple regulators. These include the Ministry of Petroleum Resources (MPR), Department of Petroleum Resources (DPR) and even the Nigeria National Petroleum Corporation (NNPC). The effectiveness of those bodies within the refining sector has remained debatable. Recent refusal of President Buhari to assent to the passage of the Petroleum Industry Governance Bill (PIGB) and full deregulation of the downstream sector are a number of the factors which have dampened investor’s confidence.  Consistent with the Nigerian Extractive Industries Transparency Initiative (NEITI), Nigeria loses an estimated $15 billion yearly in foreign investments thanks to regulatory uncertainty. Uncertainties in regulations have discouraged various institutional and individual investors in fixing modular refineries in Nigeria.

Security

  • Industrial sabotage,
  • petroleum theft,
  • bunkering,
  • illegal refining operations,
  • pipeline vandalism
  • and piracy

Present significant challenges within the oil and gas industry. Modular refinery investors are often swayed by the safety conditions of the country. This is because investors would, more often than not, desire an environment. Where their investment isn’t only safe but also secured. The several initiatives to curb instability within the Niger Delta Region of the Nigerian government also as multinationals, notwithstanding. Security still mains a serious challenge. As a matter of fact, instability within the region has compelled some companies to declare act of God on oil shipments.

Infrastructure

Damaged pipelines, shallow channels. And therefore the absence of an efficient logistics backbone are some major infrastructural impediments that have constrained growth of refineries in Nigeria. For a short time now, damaged pipelines have impeded the availability of crude for refining operations. The rail system which may be a viable alternative for transporting huge product volumes, is very capital intensive and requires huge investment.

Furthermore, the inland waterways are too shallow to accommodate safe use of oil tankers to move petroleum. And refined products to the hinterlands. This has not been quite helped with the paucity of considerable investment in dredging and barges.

Feedstock Access

Furthermore, one of the most important challenges which local and new modular refineries are presumably getting to be faced with is the way to access feedstock supply on a daily basis. In fact, guaranteed feedstock access has not been aided by inadequate infrastructure, insecurity and unstable production.

Sanctity of contracts

Additionally is, inability to predict whether contractual terms are going to be honored. And not be deviated from pose an excellent challenge. Every investor cares about the performance of contracts and sometimes wary of contractual breach. Past antecedents of the Nigerian government in its disposition in a number of the venture contracts with a number of its International Oil Companies (IOC) partners sometimes leave tons to be desired.

Furthermore, while there’s some motivation that the govt is desirous of honoring contracts executed by its representatives, more efforts should do more to make sure that agreements entered into on its behalf are kept.

If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

MOTIVATION: If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

Motivational factors are also essential for Modular Refinery Operation in Nigeria.  These are researchable concepts in this regard for you to go through.

Establishment of Oil and Gas free port

Furthermore, Modular refineries proposal should accompany the establishment of oil and gas free zones altogether oil producing states as a way of diversifying the country’s economy. Siting modular refineries within the oil and gas free zones would cut investment cost. Modular refineries should be modelled after the U.S. export oriented refineries to supply special products like petroleum, aviation fuel and industrial raw materials

Incentives from Government

Availability of state incentives through a well-balanced legal and regulatory framework to market investments and guarantee returns on investments. Also, economic incentives like tax holiday and grants will encourage investors to return into the world in their droves.

Adequate Security

As a matter of fact, restoring security and safety would require a multi-faceted approach. That means, involving the utilization of varied pragmatic measures.  The govt has adopted various measures to stabilize and engender peace within the Niger Delta region.

These include:

  • implementation of the amnesty program,
  • the creation of the Ministry of Niger-Delta Affairs,
  • and therefore the establishment of the Niger-Delta Development Commission (NDDC).

However, these institutional arrangements haven’t delivered effective results and thus are being reconsidered & fine-tuned. Interventions got to be sustainable and address the agitations of the South-South communities; which range from developmental neglect to environmental degradation.

Furthermore, these plans are often more efficient and effective if delivered as a mixture of diplomacy and advanced counterintelligence measures

Friendly Regulations

Furthermore, effective Regulations are going to be a key driver for growth within the refining sector. And thus bold and decisive reforms are necessary. Regulations are pertinent to driving confidence within the refining sector and boosting attractiveness to potential investors. Policies which foster legal bunkering, access to feedstock for local refiners. And export of refined products into the West African sub-region also got to be established.

Summarizing: If you are Investing in a Private Mini Crude Oil Refinery: This Business Plan

In this article we have dealt with Private Mini Crude Oil Refinery business plan in Nigeria. All the components of the business plan were highlighted. We also dealt with certain industrial concept that you need to know. And, generated the challenges and motivation factors inherent in the oil refinery industry in Nigeria.

But now, was this article helpful? You can affirm that by clicking YES or NO.

Our Professional Business plan for this:

As a matter of fact, this business plan covers all that you went through in this article. It’s a well-researched scenario sensitive proposition. Our world-class auto-generated business plan templates must certainly give you value for your money. It will be good if you contact us through +235 8034347851 or cfmclimited@gmail.com

Finally, thanks for reading though. Now, we permit you to bookmark this page, copy for your professional and academic purposes. In fact, you are free to share to your friends, colleagues and contacts.

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