Intending Investor

1.   How to be an Oil Trader

A.   Intending investor-

                                     HAULAGE

Yes, investment in the oil sector can come in a form of either rendering transportation services (Haulage) i.e trucks, vessel etc. If you have a 33,000 or 22,000, or 11,000 litres truck, you can make up to 10naira per litre when you lease out your truck for a single delivery of either PMS (Premium Motor Spirit) otherwise known as PETROL  or AGO (Automated Gas Oil) otherwise known as diesel. If you have a 33,000litres truck,
calculate how much you would make if you lease out your truck for just one delivery. That’s about 330,000naira. Though every business comes with is challenges so you have to be very careful of the person you are hiring you truck to. At least with about 4.5million naira, you would get a truck and under 6months, you can recuperate your investment back.  All you need do is to market your trucks or place them at WARRI depot, APAPA, Kaduna refinery, Suleja depot e.t.c or you can simply market them to owners of petrol stations. Though what have written is substantial for you to start this business. But if you still need a comprehensive business plan on this and how to go about this business, you can contact me.

                                      STORAGE

Investment in the oil sector can also come in form of buying or constructing storages. YES STORAGES! In fact it’s almost like the easiest so far you construct you storage in a very good and strategic area. It’s almost like owning a fuel station. It is capital intensive though it’s a lifelong investment. You can start this business with what I have written. If you still need a comprehensive business plan and information on how to go about this business, contact me without hesitation.

                                   DELIVERY

You can make money from delivery if you are financial capable.  All you need is money. Look for petrol stations seeking to buy these products and make an offer to them. Some construction, manufacturing companies, Telecommunication companies also need this product too so you can write up proposals to them. The price you quote in the proposal as to be competitive knowing that other people as also tendered their proposal. If they accept you, they might issue you an LPO (Local purchase Offer) with quantity and quality of the products they are seeking to buy. Most times, the quality is usually NNPC specification for each product.  Major Buyer’s include Julius berger, Ashaka cement, Dangote, Flour mills, telecommunication companies i.e MTN, GLO, VISAFONE, ETISALAT. Pay is usually between 5-60 working days depending on the company.  Government agencies also make use of petroleum products to power their Generators. You can also write up proposals to them.  If you need a comprehensive business plan and Overview of this and how to write your proposal, where to submit it to and how to go about it, contact me at forseasoil@ymail.com NOTE: if you are not financially buoyant and you get an LPO you can sell your LPO at 5naira per litre times the amount of litres you are to deliver. So let’s say on the LPO, you are asked to deliver 20trucks of 33,000litres, calculate it. You’ve made almost 3,300,000million naira for yourself just by selling off your LPO.

                                 VESSEL

This is capital intensive. With about 100-500million naira, you can get as little as a 5,000-10,000 metric tons capacity vessel. You can also get a 50,000, 100,000metric tons capacity vessel. Have you ever thought about how petroleum products get to Lagos?  The roads are not that conducive and apart from that, how can marketers meet up with the demands of petroleum products? Most major marketers such as capital oil buy these products in large quantity and store in their respective tank farms. Apart from that, buyers come from neighboring countries to buy finished petroleum products or crude in Nigeria. Tanker vessels sail in and out of Nigeria everyday and if you own a vessel or you are preparing to buy a vessel, count yourself lucky. Since you are new in the business, the easiest way for you is to sign a contract with a company that manages vessel.  They would see to the maintenance and chartering of your vessel. All you have to do is to wait for money to hit your account after you must have signed the contract with them. It’s just like giving your house to an ESTATE AGENT to Market and collect & remit the house rent to you. Though you pay them a certain percentage from the money remitted to you. I hope I’m Clear on this?