THE BUSINESS MANDATE
The company is licensed to engage in petroleum prospecting, producing, refining, transporting, shipping, storage, distribution and retail. WAPSCO is to carry on business as producers, manufacturers, suppliers and dealers in petrol, kerosene, diesel, lubricating oil, paraffin wax, asphalt, carbon black, insecticides, herbicides, pesticides and all kinds of chemical and petroleum products; and to do the same in respect of gas products, including but not limited to industrial, domestic and cooking gas. The company is also licensed to carry on business of construction,
installation, manufacture, repair, maintenance, supply and deal in all petrochemical products, plants and equipment.
WAPSCO is licensed to lay infrastructure, erect structures, install rigs, sink wells, construct refineries, build depots, lay pipelines, and provide all
things necessary or expedient to work on oil wells, petroleum and gas supplies, and to process, treat and refine the crude oil and gas thereof produced. The company is also licensed to supply, deal in or build oil barge s, tankers, tug boats, platforms and other floating static or moving structures used in the production, refining, storage and transportation of petroleum oil and
gas.
WAPSCO is committed to contributing to downstream oil sector development in Nigeria and to provide employment at grass root level for
ordinary people in local communities and build infrastructure such as roads, electricity and healthcare facilities that would benefit communities
in the neighborhood of its operation.
installation, manufacture, repair, maintenance, supply and deal in all petrochemical products, plants and equipment.
WAPSCO is licensed to lay infrastructure, erect structures, install rigs, sink wells, construct refineries, build depots, lay pipelines, and provide all
things necessary or expedient to work on oil wells, petroleum and gas supplies, and to process, treat and refine the crude oil and gas thereof produced. The company is also licensed to supply, deal in or build oil barge s, tankers, tug boats, platforms and other floating static or moving structures used in the production, refining, storage and transportation of petroleum oil and
gas.
WAPSCO is committed to contributing to downstream oil sector development in Nigeria and to provide employment at grass root level for
ordinary people in local communities and build infrastructure such as roads, electricity and healthcare facilities that would benefit communities
in the neighborhood of its operation.
BUSINESS OBJECTIVE
The main business objective of West Atlantic Petroleum and Shipping Company Ltd is to be a leading efficient and profitable operator in the
Downstream sector of the Nigerian Oil industry by acquiring petroleum products supply infrastructure (Depot and Jetty to be built in Lagos East
Atlantic coast) and becoming a major bulk supplier and distributor of Petroleum Products (PMS, DPK (ATK, HHK), AGO and LPG) by road trucks
and coastal vessels in Nigeria and other parts of West and Central Africa.
Downstream sector of the Nigerian Oil industry by acquiring petroleum products supply infrastructure (Depot and Jetty to be built in Lagos East
Atlantic coast) and becoming a major bulk supplier and distributor of Petroleum Products (PMS, DPK (ATK, HHK), AGO and LPG) by road trucks
and coastal vessels in Nigeria and other parts of West and Central Africa.
INDUSTRY BUSINESS MODEL
The key downstream oil industry services are:-Jetty operating capacity: To provide access to bulk ocean petroleum products ocean carriers to
discharge their cargo at target destination for further distribution services before getting to the ultimate consumer at the Forecourt or deliver to small capacity jetties by coastal vessels and barges.
Pipeline delivery manifold: To provide pipeline access for bulk transportation of petroleum products from far or near refinery source or Jetty discharge terminal to a target destination (depot) storage and distribution services to the Forecourt.
1.1.1 Pipeline delivery manifold: To provide pipeline access for bulk transportation of petroleum products from far or near refinery source or Jetty discharge terminal to a target destination (depot) storage and distribution services to the Forecourt.
1.1.2 Storage capacity: To provide safe, quality and quantity protection for bulk petroleum products before their owners get to either sell as bulk to distributors or choose to load by Road trucks for retail outlet destinations
1.1.3 Road Truck Loading Capacity: To provide truck loading facilities to major Retailers, independents and Dealers to supply and service their petrol stations.
discharge their cargo at target destination for further distribution services before getting to the ultimate consumer at the Forecourt or deliver to small capacity jetties by coastal vessels and barges.
Pipeline delivery manifold: To provide pipeline access for bulk transportation of petroleum products from far or near refinery source or Jetty discharge terminal to a target destination (depot) storage and distribution services to the Forecourt.
1.1.1 Pipeline delivery manifold: To provide pipeline access for bulk transportation of petroleum products from far or near refinery source or Jetty discharge terminal to a target destination (depot) storage and distribution services to the Forecourt.
1.1.2 Storage capacity: To provide safe, quality and quantity protection for bulk petroleum products before their owners get to either sell as bulk to distributors or choose to load by Road trucks for retail outlet destinations
1.1.3 Road Truck Loading Capacity: To provide truck loading facilities to major Retailers, independents and Dealers to supply and service their petrol stations.
WAPSCO'S BUSINESS PREFERENCE
The following opportunities are available to WAPSCO in the downstream business terrain in Nigeria drawing from industry availabilities:
(i) Jetty discharge throughput service
(ii) Product storage service
(iii) Truck loading service
(iv) Coastal and Barge supplies
(v) Retail Sales
(vi) Bulk Supplies (Trading)
After thorough studies and analysis it has been found expedient for WAPSCO at this beginning limit itself to the first four (4) activities where third party risks are limited and JV partnership engagement is easy to manage. The industry commercial Regulator; Petroleum Products Price Regulatory Agency (PPPRA) has clear charges and margin obtainable on each service function on its Pricing Template which is the industry
refere nce for all contracts and services. This to a large extent has promoted transparency and competition among the players.
(i) Jetty discharge throughput service
(ii) Product storage service
(iii) Truck loading service
(iv) Coastal and Barge supplies
(v) Retail Sales
(vi) Bulk Supplies (Trading)
After thorough studies and analysis it has been found expedient for WAPSCO at this beginning limit itself to the first four (4) activities where third party risks are limited and JV partnership engagement is easy to manage. The industry commercial Regulator; Petroleum Products Price Regulatory Agency (PPPRA) has clear charges and margin obtainable on each service function on its Pricing Template which is the industry
refere nce for all contracts and services. This to a large extent has promoted transparency and competition among the players.
METERIOLOGICAL GUIDE TO JETTY OPERATION
Mooring operations, hose connection, and the operation of marine terminal support for vessel and jetty are weather dependent. The proposed Jetty is to be situated on the open sea, exposed to the complex mix of strong waves, currents, wind, and…
OPERATIONS MANAGEMENT AND MANAGEMENT TEAM
WAPSCO is anticipating the possibility of its eventual partnership with a reputable and experienced JV company that will bring to bear its established operations scheme and management philosophy which essentially has to be before the commencement of construction so that…
DEPOT OPERATION
Depot operation comprising of cargo receipt, stock transfer, stock focalization and reconciliation, truck inspection, loading, ullaging and dispatch, sales documentation, authorization, accounting and reconciliation, safety checks and general depot administration are to be guided by standard procedure publication that will…
SAFETY PHILLOSOPHY IN OPERATION
The safety and well-being of employees, customers, and all other stakeholders and the protection of the natural environment shall be of utmost importance to WAPSCO Depot and Jetty operations.
JETTY OPERATION SNAPSHOT
The Jetty shall be operable as an independently functional unit with full compliments of a well experienced Jetty Operations Manager, expatriate or Nigerian responsible for loading and unloading petroleum products.
Conclave
Additional Storage and Jetty operation (Terminaling service) opportunity has been identified by the feasibility study commissioned by WAPSCO both Technical and commercial viability have been established in studies carried out by WAPSCO’s clients.
An investment of about US113 million in 145,000 cubic meters (115,000 mt) storage capacity with 400 road trucks daily (13 million liters per day) loading capacity and 38,000 dwt (max) product receiving jetty is expected to result in profitability of 50% IRR (internal rate of return), US$500 million NPV (net present value) and Payback Period of 3 years.
On the appropriate recommendation from the studies, land has been acquired, cleared, de-flooded, linked to the major city road and kept safe for commencement of construction. Ernest & Young Dubai was hired to arrange foreign debt and equity while a private company is to organize private placement for local equity. Competitive Tender for EPC contractor for both Depot and Jetty have been conducted, contract award is waiting for the emergence of a serious lender.
WAPSCO is still in search of suitable JV partners and additional Fund Finder to speed up commencement of construction. Provisional (budget) cost of the project has been established, funding is being conversed. The leverage favoured by the principal promoters is 60% Debt and 40% equity. The remaining part of the equity is being proposed on offer in this document, debt component is being sourced from abroad.
This Business model has been expressed in terms of the generalized concept of Men, Materials, Money, Market, Technology and Enterprise. It is assumed that the complete profile of an operable business has been detailed, this document and many others culminating in this are expected to form the basis of execution of this project and the platform on which operation will commence.
WAPSCO’s plan for the future is to become a user of the Depot and Jetty Facility by establishing retail outlets (Forecourt) across the country and
importing it own petroleum products cargoes for distribution. This eventually is expected to lead to upgrading the Depot to a complete Crude
Oil Refining facility when the market has been fully deregulated and the company achieves full scale down stream integration.
An investment of about US113 million in 145,000 cubic meters (115,000 mt) storage capacity with 400 road trucks daily (13 million liters per day) loading capacity and 38,000 dwt (max) product receiving jetty is expected to result in profitability of 50% IRR (internal rate of return), US$500 million NPV (net present value) and Payback Period of 3 years.
On the appropriate recommendation from the studies, land has been acquired, cleared, de-flooded, linked to the major city road and kept safe for commencement of construction. Ernest & Young Dubai was hired to arrange foreign debt and equity while a private company is to organize private placement for local equity. Competitive Tender for EPC contractor for both Depot and Jetty have been conducted, contract award is waiting for the emergence of a serious lender.
WAPSCO is still in search of suitable JV partners and additional Fund Finder to speed up commencement of construction. Provisional (budget) cost of the project has been established, funding is being conversed. The leverage favoured by the principal promoters is 60% Debt and 40% equity. The remaining part of the equity is being proposed on offer in this document, debt component is being sourced from abroad.
This Business model has been expressed in terms of the generalized concept of Men, Materials, Money, Market, Technology and Enterprise. It is assumed that the complete profile of an operable business has been detailed, this document and many others culminating in this are expected to form the basis of execution of this project and the platform on which operation will commence.
WAPSCO’s plan for the future is to become a user of the Depot and Jetty Facility by establishing retail outlets (Forecourt) across the country and
importing it own petroleum products cargoes for distribution. This eventually is expected to lead to upgrading the Depot to a complete Crude
Oil Refining facility when the market has been fully deregulated and the company achieves full scale down stream integration.