Security of the Oil Business in Nigeria

There are occasional episodes of security problems in the oil producing regions of Nigeria; and these episodes have dissuaded potential buyers of Bonny Light from purchasing their sweet crude oil from Nigeria. However, Nigeria continues to sell over 2.5 mission barrels of crude oil per day. Based on this daily magnitude of crude oil exports, it is obvious that the insecure environment is not as daunting as advertised and reported. There is no attempt here to gloss over the past reports of instability, kidnappings and violence; we are simply stating that the crude oil business is quite vibrant in Nigeria. What the Nigeria crude oil business needs are sincere business men and women who have sufficient trust to execute lucrative, repetitive business deals for the betterment of the participants. What is required essentially is a little trust by both the seller and the buyer companies to execute the first shipment of crude oil and thereafter it would be patently obvious that the buyer is dealing with a reputable, honest and trusted seller.


Our Requirements for Traders

To make business efficient and organized, we generated a set of requirements for both buyers and sellers. Because we acknowledge, and take seriously the risks placed by scammers , we do not encourage the transfer of bank instruments via intermediaries or via the internet. Rather, we get capable buyers to negotiate with real sellers after our set prerequisites/requirements have been met.

Buyers

1.) Standard company profile. Buyer must be searchable on

     Google. In the alternative, buyer must provide verifiable

     registration documents.

2.) Buyer must issue LOI to detail inquiry about product (Name &

     Origin of product, quantity, suggested price/discount, destination

     & payment method. LOI must be on buyer company letterhead.

     LOI must be dated, signed and sealed. File format: PDF or

     scanned copy - jpg (preferable).

3.) In the cases where the buyer is represented, mandate must

     accompany official affiliation document (mandate letter) with LOI

4.) Evidence of past/recent deals (documents like CPA, SGS report

     etc.) would be very helpful in boosting seller's confidence in

     buyer's capability.


Sellers

1.) Standard Company Profile. Seller must be searchable in Google. In

     the alternative, the seller must provide verifiable registration

     documents and evidence of recent deals in the seller name.

2.) Seller will present FIRM offer or authorization to sell which includes

     BULK allocation NO./Certificate and all the necessary details proving

     that product exist.

3.) Seller's name (on the offer) must tally with that on confirmation

     "screen" if verified. In the case where the seller is a representative,

     seller must provide official affiliation documents (mandate letter) from

     end seller.

4.) Offers must be a on a company letterhead; must be dated, signed and

     sealed.


Oil & Gas

Crude Oil

Petroleum or crude oil is a naturally occurring, flammable liquid found in rock formations in the Earth consisting of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds.

Crude Oil, Petroleum and Gas Business in Nigeria

Exploration, production and exportation of crude oil provide the major source of reveune in Nigeria. Nigeria  crude oil exportation is based on the authority of the Nigeria National Petroleum Corporation (NNPC). Since NNPC is a national oil comapany, it utilizes a business model for marketing crude oil, gas and refined products that relies on the use of agents and companies that are referred to as its "subsidiary" companies. Some of the companies operate mainly in the exploration and production sector. ExxonMobil, Shell, Agip and Oando are examples of companies that are operating exploration and production (E&P) business partnerships with NNPC.