A Review of the Nigerian Energy Industry

SPOG entrenches in Nigeria’s downstream oil industry

15 November 2011, Sweetcrude, Lagos – The speedy actualisation of SPOG Petrochemicals’ dream of becoming a dominant and preferred integrated energy solutions provider has made it a key player in the downstream oil and gas industry.

Established in 2005, the fully-capitalised energy and derivatives company operates two oil depots with a combined storage capacity of about 30,000 metric tonnes (MT) in Lagos.

According to the Managing Director, Mr. Adekunle Ajala, the acquisition of the depots was part of a strategic move to serve the domestic market through massive investment in expansive product storage capacity.

In addition, he revealed in a statement that, negotiations have reached an advanced stage for the acquisition of two more storage facilities with a combined depot capacity of 45,000 MT to be strategically located in other parts of the country.

“Ultimately, we envisage that as part of a sustained programme for technical infrastructure development, the company will command a total storage capacity of over a 100,000MT in the long-run,” Ajala said, adding that “our strategic goal of attaining the status of the preferred integrated energy solutions provider has compelled us to develop an optimum framework to harness and integrate the web of values and synergies available.”

He explained that, “the overall organisational structure is deliberately designed on the platform of optimum performance to satisfy growing customer satisfaction, and to achieve cost-effectiveness and incremental shareholder wealth regeneration.”

To sustain its dominant role in the sector by servicing its large market share adequately, the company said it also plans to retain a consistent stock of between 20,000MT and 30,000MT of all refined products at any point in time.

According to the statement, the demand pattern in the market provides strong indications that this volume of supplies is sustainable within the trading cycle.

Ajala also noted that the company concentrates on providing a defined range of select products and services to support and fulfill broad energy strategies and requirements.

“Our system is structured to provide each client with personalised and solution-oriented service and guarantee that our people are constantly available to follow through on emerging transactions. Our belief as an energy supply agent is that we should consistently add value to partnering organisations and make the ensuing business relationships mutually rewarding,” he said.

In line with Federal Government’s commitment to ensure that oil companies operate in environmental friendly manner, SPOG said it has adopted global best practices to provide and maintain a safe, pollution-free and healthy working environment by complying with all applicable statutory guidelines, regulations and laws.

According to its safety and environmental policy, all employees of the company are individually and collectively responsible for protecting the Environment, Health and Safety of workers, customers, contractors and the host communities. The policy is also applicable to all contractors, visitors and customers.

Incorporated in October 2005 as a private limited liability company, SPOG’s core operations cover energy marketing and consultancy comprising sourcing, procurement, importation, marketing, and distribution of petroleum products.

With eyes already set on the future, SPOG Petrochemicals has secured authourised dealership in the downstream sub-sector, in anticipation of full deregulation and liberalisation of the sector.

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