35+ Lucrative Oil & Gas Business Ideas And Opportunities in Nigeria And Africa
The oil and gas industry is one of the most glorified business sectors in Nigeria and Africa. It has created more billionaires than almost any other sector, and anyone who runs any type of business in it is largely perceived to be a millionaire or billionaire in their countries.
While the oil and gas industry is indeed very profitable, most people don’t know there are so many business roles they can play in it, no matter the amount of money they have to start up with.
If you’ve had a craving for starting a business in the oil and gas industry but don’t know how or what to start with, here are 35+ lucrative oil & gas business ideas in Nigeria or Africa:
1). Petroleum Products Procurement And Supplies:
This is one of the most basic oil and gas businesses to venture into. Here, you focus on supplying petroleum products like diesel, drilling chemicals, and a whole lot more to a client base that needs these items supplied on demand and on credit, to be repaid in 2 to 6 weeks.
You can leverage clients like government hospitals, large factories, drilling and exploration companies, and a whole lot more to build your supply chain network.
2). Petrochemical Refining:
Petrochemical products like Benzene, Ethylene, Ammonia, Toluene, and a whole lot more are used for a wide variety of purposes, and so, its large market base makes the manufacturing of petrochemical products a lucrative oil and gas business to venture into.
You could either sell them locally or export to neighboring countries.
3). Haulage And Logistics:
This involves the movement of goods and services in the oil and gas industry. If you have substantial capital, you can venture into this business by transporting petroleum products like AGO, DPK, and more with your tankers and other logistics vehicles you may have, on behalf of your clients .
With a wide network of suppliers and a standard charge per trip, you can start up an oil and gas haulage and logistics service.
4). Equipment Leasing:
With a large capital and a wide network, you can purchase equipment that are largely used in oil exploration, drilling, and a whole lot more, then lease them out to organisations who need them for short-term or long-term uses.
5). Oil Drilling And Exploration:
This is an oil and gas business for high net worth individuals. It is a risky venture, but can be extremely profitable. To venture into this, you’ll need an Oil Prospecting License (OPL), a very experienced and technical team, and high valued machinery to start with.
6). Fuel Importation:
Some petroleum marketers import refined petroleum products from refineries using their own vessels or the refinery’s vessels. When their petroleum products arrive, they’re stored in tank farms and then sold to local petroleum marketers like diesel suppliers, petrol stations, and a whole lot more.
These products are usually sold out fast to distributors because they are priced low.
If you have a large operating capital in the tune of $10 to $30 million dollars, you can venture into the importation of fuel for resale in Nigeria.
7). Oil Farm/Depot:
Imported fuel as stated above, are stored in tank farms. Most oil marketers don’t own tank farms, and as a result, always need to store their petroleum products in other tank farms.
With a large operating capital, you can construct a tank farm for the sole purpose of leasing it out to oil marketers who bring in petroleum products.
8). Crude Oil Exportation:
Crude oil exportation is another oil and gas business to venture into. To successfully start this, you’d need to get an LPO from a refinery locally or abroad, then you must have the minimum cash value of the crude oil volume you intend to export, in your bank account.
With this cash value stored, the NNPC can ship the volume of crude oil you need to your client and reimburse you with a 1% value of the crude oil exported as profit.
In this instance, you don’t entirely use your own cash to export it. Instead, you need the minimum to be in your bank account, which you could get with a bank loan as long as you have a valuable guarantor.
9). Offshore Trading:
If you don’t have the rights to sail through the water ways of a different country, you can sell your petroleum products to shippers who have the licence to do so. Now if you have the rights to ship, you could buy out another shipper’s merchandise at a fairly good price and complete the shipment yourself.
10). Oil And Gas Radio Talk Show:
Hosting a radio talk show that discusses the latest oil and gas trends, investment opportunities, job opportunities, and a lot more is another oil and gas business to venture into.
11). Petrol Stations:
This is the retailing of petroleum products directly to motorists and several others. The margins here are a lot higher than selling the petroleum products at the depot to suppliers, and as a result, most petroleum marketers who import petroleum products also own tank farms and petrol stations, so they can maximise their profit margins. Alongside this the petrol stations can offer business fuel cards giving businesses special rates at the participating petrol stations, which in turn ensures loyalty from those businesses to only use those particular petrol stations. Offering the right discounts you have the potential to be the best fuel card program outshining the rest and with that popularity can only grow and the business will become even more lucrative.
12). Kerosene Retail:
Kerosene retail is another oil and gas business to venture into. You could either supply kerosenes to multiple small-scale retailers or you could have multiple locations where you sell the kerosenes directly to the end users.
13). Cooking Gas Wholesale And Retail:
Cooking gas is yet again another oil and gas business to venture into. Here, you could supply various small scale cooking gas retailers, or you can sell cooking gas directly by yourself.
14). Oil And Gas Brokerage:
By serving as an intermediary between two vendors in the oil and gas industry, you can earn a commission on every successful transaction executed. This is especially great if you don’t immediately have a large or substantial capital to venture into the industry.
15). Oil And Gas TV Show:
Just like a radio talk show, you can start up an oil and gas TV show that talks about the industry trends, business opportunities, and job opportunities.
16). Oil And Gas Magazine:
Oil and Gas magazines cover a lot more; including interviews, projections, opportunities, and many more information about running a business in the oil and gas industry.
If you have some experience in the industry and have great writing skills, you can start up an oil and gas magazine.
17). Oil And Gas Maintenance And Servicing:
Oil and gas servicing is a very profitable niche in the oil and gas industry. The primary role of organisations in this sector is help fix and maintain the facilities of other oil and gas businesses.
To start up this venture, you’re expected to have spent many years in the oil and gas servicing industry, learnt a whole lot about the building and maintenance process, and must have built a strong network before you venture out on your own.
18). Oil And Gas Blogging:
Oil and gas blogging is one way a freelance writer can venture into the industry from his or her bedroom. You could talk about what businesses in the industry are doing, small and large business ideas people can take advantage of in the industry, and how they can be successful.
By doing this, you’ll profile yourself as a professional and a consultant.
19). Oil And Gas Recruitment Agency:
The oil and gas industry is a large one, and as such, running a recruitment agency that has a large focus on the industry can turnout to be a profitable venture.
By leveraging the size of the industry, a recruitment firm started by an experienced HR personnel can be a great bet.
20). Oil And Gas Legal Services:
Some lawyers specialise largely on the oil and gas industry. These lawyers are majorly specialists, and build their careers around this industry.
If you’re lawyer, you can venture into the oil and gas industry by providing legal services.
21). Oil Spillage Cleaning:
Oil spillage happens a lot by accidents involving tankers, storage facilities, refineries, drilling rigs, pipelines, and barges. It can be caused by mistakes or by pure carelessness. As a result, the need for an oil spillage cleaning service is widespread in the industry.
If you’re a professional in this field or not, you could either work for an oil spillage cleaning company, then learn more about it at an institute, and could then go on to further start up a cleaning service.
There are a lot of risks involved in this, as well as large revenues, and as such, only highly experienced professionals are encouraged to venture into this business.
See Also: 5 Businesses You Can Start Tomorrow
22). Oil And Gas Consulting And Advisory:
To start an oil and gas consulting and advisory service, you’d need to have had a very wide experience in the industry with a good track record. After which you can then consult for new businesses who are just starting out in the industry to ease their startup and growth phase.
23). Petroleum Refinery:
This oil and gas business is largely executed by dollar billionaires and governments around the world. It could cost as much as $8 billion dollars to setup a refinery, and so, this venture is highly limited due to the capital requirements and political network the founder must have built.
25). Crude Oil Shipping Company:
Just as there are oil marketers who export crude oil based on an LPO received, there are also others who purchase large vessels and lease them to crude oil exporters. This business is very capital intensive as a vessel of this scale costs millions of dollars to purchase.
If you have a large cash backing or a potentially large asset finance support from a bank, and a wide network, you can venture into the crude oil shipping business.
26). Refinery And Tank Farm Construction Company:
This is another highly specialised oil and gas business opportunity, as only a person who’s worked in this industry or has links to companies who can build this, can venture into the construction of refineries and tank farms for prospective clients.
But none-the-less, it is an extremely profitable venture.
27). Lubricant Production:
Lubricants are widely purchased and used in their thousands on a daily basis. Mechanics use them everyday, and at several intervals, you’d have to purchase one for your vehicle.
You can venture into the production of lubricants, grow a reputable brand name, and preferably market them through a network of petrol stations and mechanics.
To play it even safer, you can approach popular petrol stations that sell their own lubricants and offer to manufacture for them at an even reduced cost. This way, you can have everyone as your client, instead of trying to build a brand name that may fail.
28). Procurement, Production, And Supply Of Gas Pipelines:
The procurement, production, and supply of oil and natural gas pipelines is another oil and gas business opportunity. It is reserved for individuals who have adequate capital and a wide network to venture into.
29). Natural Gas Marketing:
First, you’d need to acquire a licence just as several other oil and gas business opportunities require. Then you can serve as a middle man between the natural gas producers and the market that wants it delivered.
30). Sale Of Petroleum Tankers:
Buying and selling petroleum tankers is another oil and gas business opportunity to venture into. Several oil marketers go on to eventually purchase their own petroleum tankers, so they can stop losing part of their profits to leasing tankers for their supplies.
You can venture into this business if you have a wide network of petroleum marketers who are looking to purchase their own tankers in the near future.
31). Manufacturing And Sale Of Cooking Gas Cylinders:
So many homes use cooking gas instead of kerosene to prepare their meals, and as such, are always using cooking gas cylinders for this purpose. The number of households that don’t use it remains in millions, and so, shows the potential opportunity in the industry.
You could start a cooking gas cylinder manufacturing and/or retail business and market them to the populace or distribute to other smaller retailers.
32). Oil And Gas Pipeline Security:
Pipeline vandalization is a huge problem not only in Nigeria, but in many other parts of the world. You could setup a pipeline security company that monitors pipelines on a 24/7 basis to ensure they remain intact, thereby greatly reducing the damages done to them within the area your contract stipulates.
33). Petrol Station Building And Construction:
Just as building tank farms can be a lucrative venture, building petrol stations for clients is equally another opportunity.
34). Oil And Gas Enterprise Software Application:
Technology companies are equally not left out as they can build tech solutions specifically targeting the oil and gas industry, and license the softwares to companies in the sector.
35). Offshore Boat And Helicopter Transportation:
Going offshore usually requires the services of a boat or helicopter service. While some oil and gas companies own their own boats, others don’t or are under-stocked, and as such, opens up a business opportunity for any individual with a lot of money and a wide network of companies needing more affordable offshore transportation services.
36). Offshore Medical Services:
Accidents and other unforeseen events occur a lot offshore, and as such, a company called the “Flying Doctors” was founded by Dr Ola Orekunrin to address these issues, thereby proving there was a great opportunity in this sector. Today, this firm is growing exponentially, has been in existence for over 5 years, and continues to serve the industry.
If you’re a trained medical practitioner, you can venture into this business opportunity too.
37). Manufacturing And Supply Of Barrels Or Drums:
Barrels are used in measuring crude oil, and as such, an abundant market exists for it. You could go into the manufacturing or supply of barrels as a way to start up in the oil and gas industry.
38). Manufacturing And Sale Of Oil And Gas Equipment:
During the setup phase of any oil and gas facility, a lot of equipment are used in the process, and as such, a Request For Proposals (RFP) is usually sent out for a public bid on the project.
You could go into the supply of oil and gas equipment for organisations who are into large scale facility constructions.
39). Oil And Gas Training Institute:
Lastly, if you’ve been in the industry for a long time, you could put all the knowledge you’ve acquired into action by setting up an oil and gas training institute.
You could advertise your services on the newspapers and also let your network and clients you’ve previously served know you can train and retrain their staffs to become world class engineers and employees.