How To Startup An Oil-Servicing Company- Beginners Guide

Hello friends, today, we will be looking at how you as a young employed or unemployed graduate can startup your own oil servicing company and grow it to become a major player in the Nigerian oil and gas sector with time.

Note, the tips I will be sharing with you here are not theoretical tips, but practical approach that I and a sibling used, and that which two close friends used to open up their own running oil service companies as we speak.

Sometimes when you hear- oil servicing company, your heart skip with fear, you start to imagine how they started, and how they got the big money they used in starting up the company, but I am here to let you know that it doesn’t really cost much if you know what you are doing, focused, determined and also know the right steps to take.


SAIPEM Contracting Nigeria limited, Expro Group, etc all started somewhere before becoming reputable. I am going to spare you long stories, but I have to let you know that you can start your own oil servicing company today and grow it to become a giant company in future to come, so don’t be afraid to start, just give it a try today and see.

Are you an engineering graduate still searching for job or already working? Do you want to own an oil servicing company from scratch? Do you have passion for oil and gas? Do you have passion, skill and talent in technical works? Can you weld perfectly, design good carpentry works, jig fix and render excellent technical support services? Do you have a rare skill in HVAC (Heating Ventilation Air-Conditioning and Cooling)? Can you troubleshoot faulty air-conditioning units, including industrial chillers and heaters? Can you carry out industrial air-conditioning piping and design? Can you design, draw, simulate with AutoCAD, autoplant, etc? Can you design industrial pipes and pipeline? Can you paint perfectly with special paints and additives? Can you work on rigs- casing, tool push, and even construct rig frames? If you can do at least two of the above, and you know a close friend, a course mate, a sibling, relation, neighbor, etc who can perform any of the aforementioned tasks perfectly, then you are qualified to startup an oil-servicing company.

What does oil servicing companies do for oil firms? They construct rigs for them, they design pipes and pipelines, they carry out most of their engineering, technical and construction works, ranging from mechanical, electrical, carpentry, to supplies.

Nigeria is amongst the top oil producing countries in the world today, and yet, we have very few indigenous oil companies in Nigeria today, that’s absurd if you must agree with me. Nigerians keep clamoring to get employed in top multinational oil and gas companies, forgetting that they can as well startup one and make it a giant company in future to come.

With oil status as one of the giant producers of crude oil, Nigerians are supposed to own a lot of firms rendering services to the oil and gas sector, but the case is different due to the fact that our graduates and youths in general believe only in working in an already established companies to the detriment of Nigeria’s future industrialization.

Must you startup a business all alone? Can’t you team up? Why is there partnership? Oh yes, I know your excuses- Nigerians are bad, corrupt, not trustworthy, blah, blah, blah…but remember that there is legal approach to incorporating and partnering in business to ensure equity? Must you do it by way of words? Why not get a professional lawyer to prepare a deed of partnership for you and your partners?

So many youths wants to startup a business or company today, but they have carried out their survey, and the cost of starting up the business stands at say, $10,000, and currently, they have only $4000, and in the process of trying to get a loan from bank or borrow from family and friends, they get frustrated because they don’t have collateral to secure loan from bank, and their family and friends aren’t taking them serious to lend them money or they might not have, or they might be afraid that he or she won’t pay back after they lend him or her the money, and in the process, their dream of starting up a business or opening up a company dies like that, just before their very own eyes.

In order words, you have a friend, a brother, a sister, a course mate, etc who is also dreaming to startup a business, but have only half of the startup capital, and you too can’t trust each other to partner to startup, and we keep complaining that the government is bad, how?

We the Nigerian youths must learn to partner in business if we must overcome this present unemployment in Nigeria- partnership is better than sole proprietorship in so many ways. Imagine when three people pull their resources, talents, skills, passions and connections together, imagine how far they would go? This is the case of westerners- they partner in most things they do; Julius Berger wasn’t a one-man business, SHELL isn’t, and so are so many other multinational companies we hear about daily. Most of them are group-owned; either group of friends, siblings or colleagues who share similar dreams of owning a giant company, so what are you waiting for?

You want to startup an oil servicing company from scratch?

The truth is that if you don’t have a lot of money to hire the best hands and setup a good structure, you may not achieve that goal, but if you can partner with your friends, colleagues, course mates, siblings, believe me, it will be easier for you. How?

Gather your friends or course mates who have good technical skills and talents in the areas I mentioned earlier, discuss with them on starting up an oil servicing company, and hear them out.

Let’s say you are able to organize five friends who have skills in- welding & fabrication, carpentry/civil engineering & architecture, AutoCAD/Autoplant/Piping design, and maybe another with a rare skill in HVAC, etc.

What next should you do?

1. First, mobilize your friends or the people that have the skills I mentioned to form a one united team with one goal.
2. pull your meager resources together, and then get a legal practitioner to prepare a deed of partnership for you guys based on individual contributions
3. form a company name, and get it registered with CAC
4. Get a DPR (department of petroleum resources) certificate to enable you participate in Nigeria’s oil and gas business sector, either as a vendor, contractor or a major player
5. You also need a tax clearance certificate for the year when applying for some contracts and a Tax Identification Number (TIN)
6. Value Added Tax (VAT) Certificate- optional for some contacts
7. You need a bank statement to secure certain contracts with top oil firms
8. get an office or workshop (as the case may be) to enable you guys have a place of identification
9. prepare solid proposals, tell friends, family and church members about your new company, start socializing and broadcasting your new company, you guys can run radio jingles if you have extra fund to foot the bill
10. Start with small projects- repair works for individuals to keep your running expenses while preparing for the main thing. We will come back to this later.

Now, how do you secure contracts with oil companies? It isn’t magic like most people do claim, all you need is believe in God, have faith and know what you are doing. Again, network as much as you can…and talk big about your company using all available strategies…but make sure you stay focused.

How to become a Contractor/Supplier with TOTAL (TEPENG)
Note: The processes for registration are:
A) Online Application
- You need to complete an online application form on Total Registration Website below:
www.ng.total.com/staging/04_total_nigeria_activities/0407_become_vendor.htm
- Applicant will be invited for Pre Qualification Interview on first in first serve basis
- Successful applicant receives and accepts Total General Terms and Conditions for Purchasing or/and Service
- Successful applicant registered as Vendor/contractor on Total Database by the
- Issuance of a vendor code number.

Alternatively

Visit Total Head Office, and request from User Department- User Department fills VMF (Vendor Master Form), and follow other necessary procedures.

In order not to overwhelm you, let’s stop here for now, we will be discussing how to become a vendor/contractor for other major oil companies- Mobil, Chevron, Adax Petroleum, SAIPEM, etc. Stay inspired, visit and subscribe to Ng Blog for more inspiring write-ups for free.


NOTE: You can also startup an oil and gas company of your own using this approach. You may need or not need a tanker truck for your supplies, anyway, we will be discussing that during the next edition of- starting up an oil business from scratch. You can always visit my blog shown on my nairaland profile to read more empowering and inspiring write-ups that will challenge you to dare for success in life. for now, stay blessed.

Hmmn.... good approach.. nice write-up

Good morning. Please can someone with HSE skills,knowledge and certifications start an oil servicing company

I need a Partner for PVT analysis with good softwares and also Reservoir simulation/well test preferably Eclipse/Sapphire stuff .
.
I'm into Nodal Analysis , mostly Prosper but along the line do get PVT data to analysis.
Should be based in PH

acidosis™:
Hmmn.... good approach.. nice write-up

Cheers

segsy85ek: Good morning. Please can someone with HSE skills,knowledge and certifications start an oil servicing company

SHE is not enough to render service to the oil firms. You will need to liaise with either your friends, schoolmates, siblings, colleagues, etc that you know quite well and trust, who also share similar dream with you and have good technical skills as narrated in the original post, to be able to startup a successful oil servicing company.

ITbomb: I need a Partner for PVT analysis with good softwares and also Reservoir simulation/well test preferably Eclipse/Sapphire stuff .
.
I'm into Nodal Analysis , mostly Prosper but along the line do get PVT data to analysis.
Should be based in PH

you have great skills needed in the oil sector. All you need now is to get down and start working on getting started (if you haven't already).

Like I said, liaise with people you know and can vouch for. Discuss this venture with them and hear their say. Meanwhile, let's hope this medium assists you to get networked with people with similar interest. Thank you for checking in.

Pls i got non destructive test certificates (NDT) and international rope access certificate anyone with same certificate or pipeline mentanance and welding can come lets reason together in setting up an oil servicing company. Thanks op for ur insight.

godello: Pls i got non destructive test certificates (NDT) and international rope access certificate anyone with same certificate or pipeline mentanance and welding can come lets reason together in setting up an oil servicing company. Thanks op for ur insight.

You are welcome. How I wish the mods can take it to the front page to assist you guys in meeting up with those around you with the required talents to startup a partnership.

Mods, do us a favour and move this to the front page to assist people. This will sure help many, thanks.

i dont have any of the skills, but am willing to fund a partnership reasonably. any luck for me?

chyseth: i dont have any of the skills, but am willing to fund a partnership reasonably. any luck for me?

Sure you have a chance too. But I hope you are not just ready to fund, but also ready to effectively manage the business? If yes, then try this:

1. Choose a company name- e.g. Chyseth Drills, Chyseth Tech, Chyseth Oilserv, etc

2. Choose the kind of service you would love to render; you can research on this to ensure that you make the right choice

3. Talk some technicians you know if they can work for you on contract base. Talk to welders, good carpenters, architects, civil engineers, mechanical technicians with other good skills like- PDMS, AutoCAD, Autoplant, etc

4. you will need a legal person to act as your company secretary, and you will also need a smart lady, maybe one who studied business admin or any other financial management course.

5. You will need effective marketers, maybe you can utilize I.T students with time

6. register your company name with CAC, open a corporate account, and try working with microfinance banks, get the DPR certificate, and maybe start small, you can start with diesel supply within your vicinity and minor construction works to build your company profile and grow your bank account so it can be running and active to give you an edge when seeking for contracts

7. you can also get experienced hands from this forum....you can talk to seun on how to publicize your search for workers and partners.

Try the above first, and come back for more tips if necessary. or if you still need further details or whatsoever, I am at your service anytime any day. Good luck dear...

Good morning dailynews, u av taken me back to a company that is lying fallow. Pls i would really want us to talk on phone and email so that u can make a lot of things clear about the said company. My email is timkelly45@gmail.com and my number 07067666339, can i get urs so i can quickly contact u. Thank u 4 ur urgent response

Sir,
Pls what would you suggest for an oldie who retired from Total
He worked in the Tank farm (did lots of readings and analysis), worked as a depot supervisor and on to area. Anything that might not need much of physical strength. Any suggestions?

timoney45: Good morning dailynews, u av taken me back to a company that is lying fallow. Pls i would really want us to talk on phone and email so that u can make a lot of things clear about the said company. My email is timkelly45@gmail.com and my number 07067666339, can i get urs so i can quickly contact u. Thank u 4 ur urgent response

I sent u an email, check it.

lightheart: Sir,
Pls what would you suggest for an oldie who retired from Total
He worked in the Tank farm (did lots of readings and analysis), worked as a depot supervisor and on to area. Anything that might not need much of physical strength. Any suggestions?

Hello Mr. Lightheart, you even have a greater chance of making it in the industry becos u have grt experience on what is needed.

Have you considered opening an oil and gas firm like I recently heard that Don Jazzy and his brother did. There is no big deal about it, you will only need good marketing and strategy to get supply request, and again u will need to site your office at a place that requires this service.

I have a friend who started with nothing, but he is making good profit now. But then, if u must venture into oil n gas (diesel supply), u must make sure u have a targeted market like- lekki, victoria islands, etc becos those areas have more no of ppl who depend more on diesel generators for power supply. So u will stand a greater chance there.

Now, as one who has once worked at a Total tank farm, u ought to know how to get hold of diesel at good price to supply to ur customers. If u have such lead, then u have no issues, just let me know if I can link u to some diesel marketers/suppliers around to help put u through.

DailyNews: Hello Mr. Lightheart, you even have a greater chance of making it in the industry becos u have grt experience on what is needed.

Have you considered opening an oil and gas firm like I recently heard that Don Jazzy and his brother did. There is no big deal about it, you will only need good marketing and strategy to get supply request, and again u will need to site your office at a place that requires this service.

I have a friend who started with nothing, but he is making good profit now. But then, if u must venture into oil n gas (diesel supply), u must make sure u have a targeted market like- lekki, victoria islands, etc becos those areas have more no of ppl who depend more on diesel generators for power supply. So u will stand a greater chance there.

Now, as one who has once worked at a Total tank farm, u ought to know how to get hold of diesel at good price to supply to ur customers. If u have such lead, then u have no issues, just let me know if I can link u to some diesel marketers/suppliers around to help put u through.

Please do me a mail k.ugwunna (@) gmail . c o m.
Thank you

lightheart:

Please do me a mail k.ugwunna (@) gmail . c o m.
Thank you

What's your mail, is it:

k . ugwunna @ gmail . com ?

Yessir

Thank you Dailynews for this insightful post. I always look forward to reading more of your write-ups.

Am also in the field, the core aspect of oil % gas servicing both ofshore and onshore with over three decades working experience in international industries . Though just kickstarted, i must say it has been very challenging, it requires one's determination ,zeal and agility to follow up proceeds.

Also am ready to oblige with any level headed, and God fearing person who is willing to ''higher'' or partner with me in this venture.

My specializations are:-
#Fabricating/building of large petrol/kerosine Diesel, water and gas tanks.
#Building of tunnels, elavator, u-conveyors for wheat and oil&gas line, inspiration pipes, sheet metal works.
#Undertake lagging of steam pipes and alluminium cladding to check heat loss and required temperature protection.
#Oil and gas peline welding, co2 pipes, Power plant exhaust pipe lagging and body maintenance.
#Boiler lagging and maintenance, refractory, boiler cement and tube laggings.
#Pipeline supplies/Assessories such as flanges, gasket bolts and nuts tapping screws, hand tools, PPEs,rivet,plier, lazy tong etc.
#Supply of protective gadgets, security gates, metal tanks, factory cars safety device and allied works and more.
Also train company employees on the various specialties listed above.
U can always reach me through
08059739089, 08027021978
maurice

thank you, as you create this thread for us all.

fdigital: Thank you Dailynews for this insightful post. I always look forward to reading more of your write-ups.

Am also in the field, the core aspect of oil % gas servicing both ofshore and onshore with over three decades working experience in international industries . Though just kickstarted, i must say it has been very challenging, it requires one's determination ,zeal and agility to follow up proceeds.

Also am ready to oblige with any level headed, and God fearing person who is willing to ''higher'' or partner with me in this venture.

My specializations are:-
#Fabricating/building of large petrol/kerosine Diesel, water and gas tanks.
#Building of tunnels, elavator, u-conveyors for wheat and oil&gas line, inspiration pipes, sheet metal works.
#Undertake lagging of steam pipes and alluminium cladding to check heat loss and required temperature protection.
#Oil and gas peline welding, co2 pipes, Power plant exhaust pipe lagging and body maintenance.
#Boiler lagging and maintenance, refractory, boiler cement and tube laggings.
#Pipeline supplies/Assessories such as flanges, gasket bolts and nuts tapping screws, hand tools, PPEs,rivet,plier, lazy tong etc.
#Supply of protective gadgets, security gates, metal tanks, factory cars safety device and allied works and more.
Also train company employees on the various specialties listed above.
U can always reach me through
08059739089, 08027021978
maurice

Well, i think i will like to partner with you. I am very talented when it comes to technical jobs. I learn very fast and good on interpreting Engineering diagrams and little of Autocad skills but i can improve in a little or no time. I actually studied Electrical/electronics Engineering at the University of Benin.
I can be reached on 08184671466.

DailyNews: Sure you have a chance too. But I hope you are not just ready to fund, but also ready to effectively manage the business? If yes, then try this:

1. Choose a company name- e.g. Chyseth Drills, Chyseth Tech, Chyseth Oilserv, etc

2. Choose the kind of service you would love to render; you can research on this to ensure that you make the right choice

3. Talk some technicians you know if they can work for you on contract base. Talk to welders, good carpenters, architects, civil engineers, mechanical technicians with other good skills like- PDMS, AutoCAD, Autoplant, etc

4. you will need a legal person to act as your company secretary, and you will also need a smart lady, maybe one who studied business admin or any other financial management course.

5. You will need effective marketers, maybe you can utilize I.T students with time

6. register your company name with CAC, open a corporate account, and try working with microfinance banks, get the DPR certificate, and maybe start small, you can start with diesel supply within your vicinity and minor construction works to build your company profile and grow your bank account so it can be running and active to give you an edge when seeking for contracts

7. you can also get experienced hands from this forum....you can talk to seun on how to publicize your search for workers and partners.

Try the above first, and come back for more tips if necessary. or if you still need further details or whatsoever, I am at your service anytime any day. Good luck dear...

thanks for the reply. anyway, i just made some investments worth millions, i will need to recover and then consider it. i dont know about me managing the business, as am also involved in some other serious things that are taking my time too. once again thanks, i will seriously consider it.

lightheart: Yessir

ok lightheart.

fdigital: Thank you Dailynews for this insightful post. I always look forward to reading more of your write-ups.

Am also in the field, the core aspect of oil % gas servicing both ofshore and onshore with over three decades working experience in international industries . Though just kickstarted, i must say it has been very challenging, it requires one's determination ,zeal and agility to follow up proceeds.

Also am ready to oblige with any level headed, and God fearing person who is willing to ''higher'' or partner with me in this venture.

My specializations are:-
#Fabricating/building of large petrol/kerosine Diesel, water and gas tanks.
#Building of tunnels, elavator, u-conveyors for wheat and oil&gas line, inspiration pipes, sheet metal works.
#Undertake lagging of steam pipes and alluminium cladding to check heat loss and required temperature protection.
#Oil and gas peline welding, co2 pipes, Power plant exhaust pipe lagging and body maintenance.
#Boiler lagging and maintenance, refractory, boiler cement and tube laggings.
#Pipeline supplies/Assessories such as flanges, gasket bolts and nuts tapping screws, hand tools, PPEs,rivet,plier, lazy tong etc.
#Supply of protective gadgets, security gates, metal tanks, factory cars safety device and allied works and more.
Also train company employees on the various specialties listed above.
U can always reach me through
08059739089, 08027021978
maurice

I pray you meet more partners...if Nigerians can be honest with each other and partner, believe me, we can form a one-united giant company that will not only be known in Nigeria, but across borders. How I wish mods can see the need to take this to the front page for more exposure. anyway, they have the final say.

ticon4life: thank you, as you create this thread for us all.

Thank sir...I feel honored

chyseth:

thanks for the reply. anyway, i just made some investments worth millions, i will need to recover and then consider it. i dont know about me managing the business, as am also involved in some other serious things that are taking my time too. once again thanks, i will seriously consider it.

Now I understand, but do give it a try...

Did you send me a mail? The 'doubles' in ur mail add got me asking what I asked
I do apologise but I hope you understand why. Thank you

Neoviper147:

Well, i think i will like to partner with you. I am very talented when it comes to technical jobs. I learn very fast and good on interpreting Engineering diagrams and little of Autocad skills but i can improve in a little or no time. I actually studied Electrical/electronics Engineering at the University of Benin.
I can be reached on 08184671466

That will be a very good added advantage. I will like to know your years of experience in this field, location. can you be able to interprete metallurgical/mechanical structures diagramatically into computer base form.
i would love to partner with someone that has a little idea on the scope of the venture, manage it administratively, add more exposure, bringing more innovative ideas that will help improve the venture. Lastly someone that is ready to make sacrifice and also relate to as brother(s) with trust.

DailyNews:

I pray you meet more partners...if Nigerians can be honest with each other and partner, believe me, we can form a one-united giant company that will not only be known in Nigeria, but across borders. How I wish mods can see the need to take this to the front page for more exposure. anyway, they have the final say.

Thanks bro.
the bolded highlighted above has always been my fears indulging into partnership . But i realized that doing it alone will not get me that much perpencity to my meteor target . Thats why am seeking for a sincere joint partnership, not just anybody, but with person(s) that is willing to foster good ideas in moving the venture ahead.
From the series of jobs accomplished so far, i found out that my specialties is of a very high demand and very few are experienced on this , even some of the high paid graduates working with most oil servicing coys are novice to this aspect and somtimes get amazed how i troubleshoot factory turbulences.

fdigital:
Thanks bro.
the bolded highlighted above has always been my fears indulging into partnership . But i realized that doing it alone will not get me that much perpencity to my meteor target . Thats why am seeking for a sincere joint partnership, not just anybody, but with person(s) that is willing to foster good ideas in moving the venture ahead.
From the series of jobs accomplished so far, i found out that my specialties is of a very high demand and very few are experienced on this , even some of the high paid graduates working with most oil servicing coys are novice to this aspect and somtimes get amazed how i troubleshoot factory turbulences.

This is indeed a great news...pls hang on...will sure get back to you as soon as I am done with certain things...honesty like you said is just our problem in this nation. Most Nigerians lack integrity, we love reaping gains too fast even without much effort, and we love tramping on others to climb, and its bad cos it has not helped us.

We the upcoming Nigerians need a total change of orientation to see us through in this nation. thanks for stopping by fd

Very insightful thread.I just make up my mind to learn alot from an indegenious company,they specilize in tug boat building n machine tools owned by four siblings.my focus is to develop n equip my self for future purpose.now i can focus on my electrical skills n autocad.The salary cant pay my bills but alwalys happy with the job cos am learning alot from them.

I been trying to search for your blog, but cant find it. Can you put up link to the blog here. Thanks for a great job. Wud look forward to learning from you.

This is a really nice thread.