Nigerian Oil Companies Prepare For Complete Down Sream Deregulation Policy, part (1)- Con Oil Plc
August 23rd, 2006 Ugonna Maduagufor || ugonna@stockmarketnigeria.com
by Ugonna Maduagufor
In view of the federal governments full blown deregulation programme and mandate to ensure a 100 percent capacity utilization from the refineries, major marketing companies in the down stream oil sector have no better option than to expand and evolve strategies that will enable them to remain relevant and of course dominate the petroleum product market.
Con Oil Plc(www.conoilplc.com)
Key products
Key business areas includes: Aviation fuel distribution in which she controls a 32percent share of the market; High quality brands of automotive engine oil- quarto brand with American Petroleum Institutes (API) seal of excellence, and Golden Super Motor (GSMD) oil; Liquefied Petroleum Gas (LPG), known as cooking gas; specialized products which includes bulk delivery of all petroleum products from fuel oil, solvents, bitumen e.t.c to industrial customers (Culled from B.D. August. 21, 2006)
Expansion Programme
Con Oil has concluded plans to invest #3.5 billion to expand the capacity of its petroleum products storage depots spread across the country within a five years period. The project involves expanding the storage capacity for Premium Motor Spirit(PMS), Automotive Gas Oil(AGD) and Dual Purpose Kerosene(DPK) at the company’s Apapa depot, while its AGO and Bitumen storage tank in Port Harcourt as well as the AGO depot in Warri would also be expanded. The project also involves the expansion of the company’s aviation fuel storage capacity at its service centers I in Ikeja, Abuja and Port Harcourt
A state – of the plant LPG plant in Lagos has been completed while a similar plant is being constructed in Abuja and Port Harcourt. A mega station have been built in Lagos, Abuja and Yola and the company plans to have a mega station in each capital of the 36 states of the federation.
Incentives For Investors
According to F.S. August 10, 2006, “ the company plans to increase share holders dividend by about 150 percent”.
Key Abbreviations:
F.S.: Financial Standard Newspaper
B.D.: Business Day Newspaper
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