In this post, we covered practical step-by-step guide on how to start an Oil and Gas (petroleum products) haulage service business whether a Bulk Haulage on the sea or truck haulage in Nigeria. We tried to remove most theories for academic purpose and make it a life practical steps, the requirements, cost of license/ permit and more.
There are several permits in the Nigerian Oil and Gas industry. Every company/ business organization that want to operate in the industry must have permit(s) that covers the area(s) of her operations.
It’s important to note that operating in the Nigerian Oil and Gas industry without an appropriate permit attract sanction(s). It’s important to make sure you have the right OGISP permit before starting your operation in the industry.
Read: Trading & Marketing Permit for Petroleum Products
Below steps will be of help for you:
Step 1: Have a registered Business/ Company in Nigeria. For new Business/ Company registration, you may need a business support service consultant to guild you on the best business objects
Step 2: Conduct a Feasibility Study. An experienced Oil and Gas consultant can be of help for the feasibility study.
Step 3: Obtain the Petroleum Products Haulage permit. To operate in Nigerian oil and gas industry, you need to meet the industry compliance. There few requirements that will enable you to obtain Petroleum Products Haulage permit and Oil and Gas Industry permits/ registrations.
Step 4: Get a Deal and Deliver. We joined marketing contract delivery together. Go for marketing and if you get a contract Petroleum Products Haulage, rent a truck if you don’t have one as a company and meet your contract terms in good time.
There are some advantages for hiring haulage truck as a beginner. Some of them are, an experience and safety trained driver from the company will drive the truck. Unionism issue will be off your neck, meeting truck papers/ permits more especially for delivery outside your domain could be big issue and many more.
Step 5: Employ Qualified Drivers and Conduct Regular Training where you own truck(s). You will need to employ qualified and experienced drivers to operate the petroleum tanker truck. It is important to conduct regular training for the drivers on safety measures, defensive driving, and product handling to ensure that they comply with the safety regulations set by the regulatory bodies and to avoid product theft.
Some of the Petroleum Products to Haulage
Crude Oil and Condensate
PMS stands for Premium Motor Spirits popularly known as Gasoline or Petrol.
AGO stands for Automotive Gas Oil, popularly called DEISEL.
DPK stands for Dual Purpose Kerosene.
HHK stands for Household Kerosene (HHK) used for household purposes.
ATK stands for Aviation Turbine Kerosene
LNG stands for Liquefied Natural Gas (LNG).
LPG stands for Liquified Petroleum Gas
Key Petroleum Products Haulage Permit Requirements
- CAC Documents
- Current Tax Clearance Certificate
- Nigeria Social Insurance Trust Fund (NSITF)
- NIMASA registration (for bulk haulage only)
It is important to know that there are two bodies that regulate Nigerian oil and gas industry operations. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is in charge of upstream oil and gas operations regulations while Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regulate midstream and downstream operations in the industry.