WHO WE ARE IN BUSINESS
Top Crown Petroleum Limited was registered as a limited Liability Company to carry out business operations in the downstream sector of the Oil and gas industry.The business portfolio is focused on major key driver of the Nigeria’s economy , the oil and gas sector with structured operation in downstream trading activities,Storage,Marketing ,Supply and Distribution with retail foot prints.It’s no secret that in oil and gas downstream today, downstream activities such as sourcing, trading, logistics,marketing ,distribution and retail foot prints —are major value chain of the industry, while downstream value chain aimed at reducing costs and risks are emerging as the drivers of value creation and sources of competitive advantage in the sector .This is where TCPL has evolved and built a business structure using a simple approach to market performance in Trading -Storage ,Supply - Marketing,distribution and retail foot prints.
With over 20 years of organic growth and investments in Capital assets which has helped create value in our business-from financing- trading -operation-storage-marketing and distribution.Our business philosophy is anchored on efficiency and cost management.Our asset - based valuation is estimated to about =N=2B using income approach with current value of future earnings. And the groups operation over 2 decades has recorded a huge volume in trade running into billions of Naira with profit margins and increase in share capital of the group
SALES AND MARKETING STRATEGY
Our assets , infrastructure and market knowledge over the years have proven that our business shall continue to grow geometrically with new market trend and changes.The investments in the sector has given us competitive advantage to remain profitable and grow our trading margin per share.
This is evident in our annualized Turnover which is corresponding to our company’s residual earnings.Our Marketing Strategy is built into our business philosophy which is linear operation efficiency - consistency- cost reduction and increase in our market share margin ratio per litre. This Strategic approach has proven to be sustainable and also given our customers confidence on our capacity to deliver on our promises which in turn gives them ownership through margin trades as consumers and bulk buyers of our products. We have ruled out marketing and sales promotion through integrity , our private and public image both with our stakeholders,financial institutions and our numerous clients.
REFINING IN NIGERIA
Refining in Nigeria began a decade after oil was discovered in the oil-rich Niger Delta region in the 1950s. Initially starting out in 1965 with a refining capacity of 38,000 barrels per day (bpd), Nigeria's refining capacity has grown over the years and is considered the 4th largest in Africa.
The nameplate capacity of 445,000 bpd is housed by 4 refineries strategically located in various states around the country: Rivers, Delta and Kaduna. Despite having a nameplate capacity that should meet domestic demand, Nigeria still imports over 80% of refined products to meet its current needs. Unlike the production of crude, the production of refined products has been sub optimal and Nigeria has consistently struggled to keep its refineries functioning optimally.
The outlook for refining has been tainted with uncertainty due to the adverse effects of subsidies, poor maintenance, general operational failure and The Refining Opportunity 1965 refining capacity of 38,000 (bpd), 4th largest in Africa inconsistent supply of feedstock. As a case in point, Nigeria's per capita refining capacity is 0.002 bpd/capita, low even by Africa standards. Libya by comparison is 0.06 bpd/capita, and South Africa 0.01 bpd/capita. However, recent events such as advancement of the Nigerian National Petroleum Policy and the sustained depression in crude oil prices are ushering in fresh waves of optimism for the sector and we predict a paradigm shift from a “net imports” to “net exports” structure
MARKET SIZE AND DATA
Nigeria downstream oil & gas market has been estimated at USD 500 billion in 2015 and is projected to reach USD 800 billion by 2021, at a CAGR of 18% during the forecast period from 2016 to 2021. The downstream sector handles the final processing, marketing, production and distribution and thus completes the life cycle of the oil & gas market.
With the fall in the oil prices in 2015, the raw material buying power of these companies has increased. Availability of cheap crude oil has enabled huge profits for the companies by selling refined products to the industries. However, if the low oil prices continue to persist beyond a period, because of the oversupply, high inventories and slower demand growth from the countries in the region, there would be pressure on the margins made by the downstream companies.
Nigeria invested USD 500 billion in the downstream oil & gas sector between 2013 and 2015 and it is estimated that an additional USD 300 billion would flow in by 2021. The demand for petroleum products is expected to grow exponentially and reach 100 million metric tonnes by 2021. Nigeria has an installed refining capacity of 400,000 barrels. The internal trade for petroleum products is worth USD 200 billion.
An additional refining capacity of 1 million barrels is planned with an investment close to USD 80 billion. Furthermore, the current capacity of LNG terminals is XX mMT and an additional capacity of XX mMT is planned with an investment close to USD XX billion. Chipet International has taken the following into consideration for an informed market deliverables and key market performance indicators.
- Nigeria downstream oil & gas market analysis, with assessments and competition analysis on a regional scale
- Market definition along with the identification of key drivers and restraints
- Nigeria downstream oil & gas market report presents an overview of the main economic, political, environmental and regulatory aspects to consider when investing in the sector
- Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market
- Extensively researched competitive landscape section with profiles of major companies along with their market share
- Identification and analysis of the macro and micro factors that affect Nigeria downstream oil & gas market on both global and regional scale
- A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
- A wide-ranging knowledge and insights about the domestic and international players in this industry and the key strategies adopted by them to sustain and grow in the oil & gas market
RETAIL FOOT PRINTS
We ensure that our retail foot print is at every state in Nigeria , as we hope to drive competitiveness as well as create value for both our stakeholders and customers.
Our Clients:
- Heavy Industries - Manufacturing industries - Food processing industries
- Transportation and logistics sector - Industrial applications
- FMCGs - Energy and Power distribution companies and house hold users.