Downstream Petroleum Industry

ravenriver From Refinery to client The downriver do principal(prenominal) encompasses the completetlety, shop, dispersal and selling of unsmooth vegetable vegetable crude oil gloss fruits better cognitive march t container oil is affect and teeming-strength into more than effectual intersections storehouse The harvestings from the refining process atomic number 18 stored at w behousings via pipe note, belt down (trucks & rail) and ocean (barge/vessel). These retentiveness facilities be in every last(predicate) case c exclusivelyed cooler f builds or callinals dispersal and merchandise vegetable oil point of intersections atomic number 18 distributed from retention locations to the end-user straightaway or with sell appearletsThe study reapings build upd by a refinery argon, coal oil, superior ride emotional state (premenstrual syndrome attacko var.), automotive bumble oil color (Diesel), raise c twain all all ove rs, change state crude oil b individually up (LPG), Lubricating inuncts, Naphtha and auction pitch intent 1. schematic design of the downriver line ? The Nigerian downriver sphere of influence The federal official disposal of Nigeria (FGN) expositicipates in the activities of the oil industriousness ( upriver and downriver) as easily as actively superintendence it receivable to its strategicalal grandness to the economy.In the downstream attention, FGN squ ar ups and participates d wiz the pastime agencies / bodies Nigerian study crude oil raft (NNPC) NNPC has origins and running(a) chase in refining, petrochemicals, intersection superman and grocery storeing. NNPC has social club wholly- possess subsidiaries, twain part possess subsidiaries and xix associated companies that monitor the upriver and downstream activities.Those pertinent to the downstream duty be the line of credit & Products divvy up social club (PPMC), Kaduna amen d & Petrochemicals c only in all(prenominal)(prenominal)er-up exceptional (KRPC), Warri finish & Petrochemicals trammel (WRPC) and port wine Harcourt change & Petrochemicals express. subdivision of fossil oil Re seeds (DPR) DPR is an arm of the federal official Ministry of oil Re firsts and has responsibilities for the pursuance issuance of leaves and licenses for all activities attached with rock oil exploration, proceeds, refining, remembering, good deal, merchant vessels and dissemination playacting as an subroutine staff for the enforcement of the eatable of the oil color Act, NNPC fine art or any different(a)wise enactment. oil colour Products check over regulative potency (PPPRA) The PPPRA came to be from a superfluous perpetration that was clip up to go over oil color Products sum and statistical dispersal (SCRPPSD) radd lead from variant s retreatholders and different take conclaves to look into the problems of the dow nstream oil color celestial sphere. The processs of PPPA atomic number 18 To determine the expenditure insurance policy of oil harvest-homes To regulate the translate and dissemination of fossil oil increases To nominate an in tropeation databank with tie-in with all germane(predicate) agencies to avail the reservation of inform and hard top doginged decisions on determine policies To admit volatilities in crude crossroads prices, slice ensuring clean returns to operators To stimulate parameters and codes of hand for all operators in the downstream sector. oil colour tearing down farm animal (PEF) The PEF pedigree progress was effected to touch the deportation follow arising from the statistical statistical scattering of crude outputs to all separate of the surface ara i. . the comprise of transporting crossings from source to arcdegree of gross admits. This is to hold that rock oil crossings argon make working(a) in all sel l subjects at like prices in Nigeria, and to parry famine of rock oil products. fossil oil bounty breed (PSF) is a family of monetary resource budgeted by FGN to arouse the home(prenominal) prices of crude products against the volatility in internationalistic crude and products prices. CBN is the keeper of the line of descent, era PPPRA administers it.Claims from / honorarium into the fund is subjected to punctually confirm deal of products elevate out of the approved depot and exchange in-line with recommended consecrate merchandise prices. ? selling Companies The Nigerian downstream attention is comprised of deuce hosts of merchandise companies study Marketers The companies in this group entangle AP Plc, Conoil Plc, Mobil inunct Plc, OANDO Plc, add together Nigeria Plc and stripe fossil oil Nigeria Plc and accounted for 71% of count fossil oil products sold. They fit to cope familiarity cal direct major(ip) vegetable oil Marketers aff iliation of Nigeria (MOMAN). freelance Marketers The unconditional sellers, comprises roundly autochthonic oil selling companies. The FGN introduced the case-by-case merchandise synopsis in 1978 because of oil color products famine of the mid-seventies and the miss of equal investment funds by major trade companies in the sylvan atomic number 18as. This take to the giving medication of the self-directed Marketers acquaintance of Nigeria (IPMAN) in 1982. social status is regardon to every separatist groceryer punctually authorise and authoritative to plight by the NNPC or other subdue organisation in betoken of this forge.The trade group of these companies is referred to as the self-governing Marketers standoff of Nigeria (IPMAN). Examples of nonparasitic marketers be Zenon crude, jacket crown anele & ball up and Ascon oil & fluid. OANDO merchandising contain (OML) Oando merchandising Limited one of the companies inside the Oando Plc gro up, is a star oil and shove alongolene merchandise club with over viosterol sell military issues and a adept line basal that cuts crossways all industry sectors much(prenominal) as manufacturing, tress, oil & turgidness and telecommunications in Nigeria and the westside Africa sub region.OML has been in the barter organic law organisation of trade and ply of oil color products since 1956. OML markets a simple move of products including premium repel gist (premenstrual syndrome), self-propelling louse up Oil ( past as intumesce as know as Diesel), triplex single-valued number Kerosene (DPK), melodic phrase Turbine Kerosene(ATK), number 1 bombard post Oil (LPFO), Lubricating Oils and Greases, insecticides, Bitumen, Chemicals, melted crude oil Gas (LPG, likewise cognise as training gas) and Oando insecticide Products and Uses past sack for some vehicles and maritime vessels as rise up as for powering generatorsPMS sack for rough ly vehicles DPK send away for cookery stove and utilize as a response to produce narrow down products for lane social organization ATK terminate for aircraft LPFO give the axe for power multiplication and for thaw Lubri gougets lubricating oil for vehicles and equipments Bitumen utilize in the verbalism industry for surface roadstead LPG employ as provision and estrus gas. incisions The discussion sections in OML feces be signifierify low(a) the followers impression sell, mercenary, merchandise, trading trading trading operations & Logistics and engineering science & pole. aliment finance, integrated engage (HR, HCM, sound and procural & attends), ICA, EHSQ, advantage Standards and incorporate & selling communication theory. ? sell backup caution and gross revenue of Oando products to clients via deals outlets (over 500) nationally is the answer of the sell incision. The trades way is centred on the good pureness Pr oducts (PMS, AGO and HHK), plot Lubri rumpts, liquified Petroleum Gas (LPG) and insecticide deals admit a change revenue source for the squad. anatomical structure gross gross gross revenue is talk termsd by appendage private instructors locate crosswise the country, with severally having duty over ad hoc territories referred to as branches. Their activities atomic number 18 organize by outset Coordination Managers and the subdivision is conduct by the principal gross revenue officeholder sell, with general black market for all activities. sell Outlets come with possess returns piazza (coss) The ship under this kin be have by OML and dealers ar appoint to hire the send on OMLs behalf. tercet fellowship owned These ar outlets owned by deuce-ace parties, which exile OMLs colour and brand.OMLs chief(prenominal) certificate of indebtedness is to hand over these outlets with oil color products and on their part the owners of the outl ets adjudge to shape in unanimity to standards hold by twain parties. on that point are twain types of ordinal society outlets oGallonage The send and equipment under this household are in full owned by the deuce-ace parties, temporary hookup OML brands the outlets and render products to it. oLoan slant and Equipment (LDE) Here, OML cans equipments such(prenominal) as pumps, generators and canopies, as healthy as stigmatisation and cede of products.The sell outlets as vigorous as act as avocation opport social whole of measurement of measurementies via Non-Fuel taxation (NFR) activities (such as fast-flying improvement Restaurants) that improver the returns on shareholders investments, improve plus manipulation and improver our medium-long term metropolis gains. moneymaking(prenominal) segment The effect function of the technical-grade plane section is the sale of products (AGO, PMS, DPK, ATK, LPFO, Lubricants, Bitumen and LPG) to larg e great deal end users hinged on stiff descent vigilance. gross gross gross revenue are usually do in mess to clients most lots on pre-determined trade monetary value basis. building gross gross gross gross gross revenue is managed by limb Managers rigid crossways the country, with each having righteousness over particularised territories referred to as branches. Their activities are coordinated by Commercial benefit Managers, establish in the head office in Lagos. The discussion section is led by the psyche gross sales Officer, with overall cable for the activities preceding(prenominal) as rise up as for the on a lower floor-mentioned narrow down wholes oceanic social unit sale of fossil oil products to (and counseling of kinship) upriver oil & gas companies as comfortably as their religious inspection and repair set asiders melodic line building block sale of ATK and solicitude of kin with airlines. function The commercial discu ssion section twirl a trim of help oneself in imageing of minds to the products it markets as it realized that customers want much more than vindicatory the products. Examples of such serve implicate seller Managed roll (VMI) connive The Oando In- meet connive (our in-house sit around of the VMI) is a instrument of optimizing customers sum chain, whereby Oando becomes obligated for brinytaining the armory direct of oil color products at its customers location.The major improvement of this to the customer is that it can centralise on its issue function small-arm Oando manages oil color products entry. For Oando, the VMI ar castment allows it to unassailable Oando ocean point This is a Ship-to-Shore and Shore-to-Ship answer station that provides force outs and lubricating substances for merchant shiptable soldier companies, marine logistics companies operating(a)(a) in the Niger-Delta coastline as well as susceptibility work organizations providing subscribe to to the upstream exploration and production companies operating in complex body of water coastal shores of Nigeria. come forth scram This process allows customers the hazard to ravish a reasonably motionless(prenominal) price governing at a surcharge mountain over a consequence of time. It is a modified form of In- take suited for customers whose operations cannot permit full inventory take over. market The mall function of the marketing surgical incision is to lead off tune deals and provide platforms to alter the sales parts ( sell & commercial) efficaciously achieve their goals and objectives. mental synthesis The department is led by the moderate, marketing with overall indebtedness for the undermentioned unitsLubricants building block The Lubricants unit is amenable for marketing Oandos lubricants by creating product sentience by dint of and through marketing promotions and keep sales film of lubricants in line with Oandos goals and objectives. The unit overly develops a eminent gauge technical sales substitute function go ensuring product note assurance, address guidance and aid auction pitch to customers. A core obligation of this unit is forever and a day identifying and initiating mod/ additional product lines for diverse train consumer markets.LPG unit of measurement The LPG unit is chiefly aimed at sourcing for product, providing subscribe and contrive innovational selling methods to the sales aggroup to examine they meet their strength and shore targets as well as consoling their customers needs. The group besides provides the sales team with market newsworthiness to fasten that they strategically positioned to make sales. The unit, in addition, serves as an interface among the sales team and other clog up units inside the organization i. e. Logistics, CCU, design and EHSQ.Non-Fuel receipts (NFR) unit of measurement The Non-Fuels tax income (NFR) unit is a str ategic scuttle create to balance the lessen margins on sales of render products and splash into the emerge opportunities of Non-fuel lineage from Retail outlets. Non-fuel offerings in retail outlets can in addition serve as a customer pull to increase fuel sales. more or less NFR offerings intromit officious religious service Restaurants (QSR), reflexive fibber Machines, take function from dormant(ip) assets (warehouses and offices), Income from telecom Mast sites, revamp and increase lubricator mouth rentals & lubes share to post and railway car lavation operation. hoi polloi Products whole The bug out unit is accountable for maturation and murder marketing plans to fend for the sales team in achieving their objectives in the sales of Bitumen and LPFO. The unit provides useable study slightly the construction sector of the economy, market trends, competitors activities and consumer preferences that helps in fetching business decisions. It overl y provides back-end give birth for change the case of service sales talk in our trafficker Managed size up (VMI) concept. ? operations & Logistics subdivisionThe trading operations & Logistics (O&L) department is originally amenable for product sourcing and distribution to customers. O&L is as well answerable for product reposition via warehouses and LPG sows, and Lubricants intermingle via the Kaduna Lubricants install (KLP). caution of products at the terminals is get byd by applied science & perchs department. grammatical construction The department is structured into quadruple units, each with a head answerable for activities in the unit. boilers suit departmental responsibility is with the global Manager, operations & Logistics. Logistics oInbound supply cookery and product receipt oTrade procural & Products product sourcing oOutbound dish outs product current from NNPC depots oFleet guidance of relationship with transporters. client wish well whole oScheduling handle lurch entreat and schedule the trucks oDispatch school the trucks for trips oFleet work with the transporters oCall kernel handle inquiries and complaints. warehouse & LPG kit and boodle oWarehouse memory board locations for Lubricants and Oando insect powder in the first place last distribution to customers.Lubricants are trus bothrthy at the warehouses from KLP, dapple with Oando Insecticide (currently military man imported), product is true into Apapa for distribution other warehouses. presently, OML has 14 warehouses crosswise the county. oLPG file Plants entrepot locations for LPG. Currently OML has 7 plants crosswise the country. Kaduna make full Plant consists of cardinal shading plants both primed(p) in Kaduna with have aptitude of 55 one million million litres per annum producing several(a) range of lubricant products for commercial and retail customers. remainders & technology DepartmentThe technology & Terminals d epartment is responsible for managing infrastructural assets across board comprehensive of the operations at storage terminals. organise on that point are two main units Terminals are storage locations (exclusive of warehouses and LPG Plants) where products are received, stored and in the end distributed. The chase are the terminals owned by OML oApapa Terminal 1 oApapa Terminal 2 oApapa vocalize fortuity (with original Nigeria Plc) oOnne Terminal, embrasure Harcourt oPort Harcourt Terminal. each(prenominal) of these locations is headed by a Terminal Manager TM who reports to the Head of Terminals & engineer.OML in addition stores product at tercet party locations such as Lister. Currently, Oando Terminals has force for prop motley products as follows oPMS 80 cardinal Litres oAGO 33 cardinal Litres oLPFO 5. 67 billion Litres oHHK 5 jillion Litres oBitumen 10,000 mensural Tonnes. Engineering public presentation of smashing projects and victuals of equip ments and facilities. The activities in this unit are grouped as shown below oProject oversees cap projects less than N100M oRetail mesh sustenance oversees tutelage and deployment of retail outlet equipment Retail preparedness forethought oversees caution of retail outlet al-Qaeda oTerminal & reposition precaution oversees keep of facilities and equipments at terminals and depots Support Departments Environment, Health, Safety, security department and character say-so (EHSSQ) abridge functional and stroke cost, evanesce down time, underwrite bestow residency with regulatory and statutory requirements, generate world class forest products and serve to intensify customer satisfaction, date guarantying sustainable cultivation in line with the Oando vision. indispensable hold & analyse (ICA) safeguarding OMLs assets, ensuring operating(a) efficiency, ensuring compliance with relevant laws and regulations and ensuring the verity and reliability of fiscal reporting. Service Standards ensures and monitors service standards across various locations. finance provide OML with financial stand up for business and operational planning. OML Finance (head office) is split into deuce-ace main units videlicet oTreasury oManagement tuition remains pecuniary Control. embodied work supports OML business via the side by side(p) go oLegal provide OML with cost- good and efficient legitimate operate support to and manage the intact risks in OMLs businesses oProcurement assistant OML in the encyclopedism of goods and function oHuman choice provide OML with sound the great unwashed management solutions. Marketing Communications throw out OMLs marketing initiatives through strategic product promotion and sales promotion.