Oil and Gas opportunity: Start an Oil and Gas Operation and maintenance Servicing Company

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This is one of the oil and gas business opportunities you can start and flourish. Though, establishing oil and gas servicing company is demanding both in terms of skilled manpower and capital, but if you are well positioned and you know how to market your services, you will surely get huge returns on your investment.
In case you are looking towards starting a business in the oil and gas industry, a business that is profitable and thriving and one that requires engineering skills, then one of your options is to start an oil and gas servicing company. Oil and gas servicing firm is a lucrative business venture to go into if you have the capacity.
 Most important oil companies around the globe like Mobil, Shell, Agip, Chevron and Texaco, amongst others, rely on oil servicing companies such as Halliburton, Schlumberger and Transocean et al, for maintenance and servicing jobs.

Comprehensive, specialized activities involve
An operation and Maintenance service is a comprehensive, specialized activity that starts with understanding the plant and its operational processes, together with the objectives of the owner. Maintenance increases the ‘up-time’ of the facilities – the time the plant is available for production. Apart from increasing operating revenue, professional maintenance also extends the productive lifetime of the assets, resulting in a reduction in the clients’ capital expenditure as well as environmental risks. In operation and maintenance Services for Oil and Gas Production Facilities
You are to dedicate to planning and managing the operation and maintenance of oil and gas plants to ensure that safe operational performance is optimized, that availability is maximized and that cost of production is minimized.
You are to maintaining clients’ production facilities so that they operate while upholding the highest safety and environment standards in the industry.
Also, you can offer an integrated service that, by starting from the analysis phase, develops an on-site maintenance and management design capable to optimize plant production.

 Oil and Gas plant operation and maintenance activities include the following:

·        Global Maintenance Service
·        Integrated (Utilities, Power Plants)
·        Equipment Installation, Maintenance and Upgrade
·        Upgrading or Revamping Projects on existing systems
·        Technical Support and Assistance
·        Rotating Equipment Installation, Maintenance and Upgrade
·        Commissioning and Start-up Services
·        Maintenance Inspection and Engineering
·        Training
·        Technical Assistance

Having known the basics, then you can go ahead to start your own company. To provide products or services to the Nigerian oil and gas industry, you may follow the following steps.

            GUIDES TO START OIL AND GAS BUSINESS IN NIGERIA

 REGISTRATION OF COMPANY OR INCORPORATE
Registration of company or Incorporate of company in Nigeria is solely done by Corporate Affairs Commission (CAC). It takes a minimum of 4 – 14 days to complete.
 It could cost you Eighty Five Thousand Naira (₦85,000) or more to incorporate a company one (1) million share capitals.
Besides, it is advisable to increase your share capital to five (5) million share capital so as to fit in into major categories that may share capital.
You may need a lawyer in Nigeria. Read more about Incorporate of company in Nigeria.
OBTAIN DEPARTMENT OF PETROLEUM RESOURCES (DPR) PERMIT.
This is a permit that allows an organization to operate in Nigerian Oil and Gas industry. Application takes 4 – 14 working days to be completed.
For companies that want to go delivering goods and services on the Offshore will obtain “OFFSHORE SAFETY PERMIT”. Find out “How to apply for OFFSHORE SAFETY PERMIT.
 DPR permit are into 3 categories that you can use to operate in Nigerian Oil and Gas industry. They are “General Category”, Major Category” and “Special Category” DPR Permits.
Please read more on DPR Permits
OBTAIN TAX IDENTIFICATION NUMBER (TIN).
This would give you the opportunity to open a corporate company bank account for your company in with Nigerian banks. You can do this with Nigerian Federal Inland Revenue Service.

COMPANY’S TAX CLEARANCE CERTIFICATE
This is one of the requirements for obtaining DPR permit is company tax clearance. Whether you have not commenced business or newly registered, the certificate will indicate it.
OBTAIN NIGERIA SOCIAL INSURANCE TRUST FUND (NSITF)
It is one of the requirements to obtain your company DPR permit. Your fees depend on your staff salary assessment.   Read more about NSITF
SET UP AN OFFICE, TECHNOLOGY AND STAFF.
 As a beginner, location is very important, office location may be better located at Port Harcourt or Lagos State.  Nigerian Oil & Gas Free Zone could be a good place to rent office for your Oil & Gas business in Nigeria.
 You can start with one or two admin staff and one operational staff.
 REGISTER WITH NATIONAL PENSION COMMISSION (PENCOM).
PENCOM is for employee contribution and it is not compulsory for newly companies whose staff strength is below five or so. It mostly comes as a requirement to register with Nigerian Petroleum Exchange (NipeX), a division of NNPC.  .
  INDUSTRIAL TRAINING FUND (ITF) CERTIFICATE
Industrial Training Fund (ITF) Certificate is one of the documents that your company needs to provide for NiPex registration for oil and gas business in Nigeria.
REGISTER WITH NIGERIAN PETROLEUM EXCHANGE (NIPEX).
This is an arm of National Petroleum Investment Management Services (NAPIMS) is the online meeting place for purchasers (IOC, NOC) and suppliers (you).
You can do your Oil and Gas business in Nigeria for years without registering with NipeX. This is because, there many minor jobs and contracts in the Nigerian Oil and Gas industry that does not go through NipeX bidding system.
Read more about NipeX Registration.
SECURE TECHNICAL PARTNER MEMORANDUM OF AGREEMENT FOR YOUR BUSINESS.
This is not mandatory especially if you have in-house capability to provide service. However, you can to find a foreign supplier to strategically partner with.  Be sure to secure a Memorandum of Agreement NOT Understanding.
REGISTER WITH PRODUCTION COMPANIES IF YOU ARE A SERVICE PROVIDING COMPANY.
If you are a service delivering company, most of oil and gas production companies (multinationals) will want you to register with them before you can do business with them. Oil and Gas Companies like SHELL, NLNG, TOTAL E&P Limited etc.
 COMMENCE YOUR BUSINESS.
Start your business. Good marketing strategies are highly needed as a new business. Invitation to bid will also be coming from NipeX, NNPC and other organizations you registered with.

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