₦airaland Forum

ninetiethcrown7:
Haha, drilling oil is not beans... after licensing you would still need a whole lot of funds in order to initiate. Please go and find out about the other indigenous oil exploration companies and how they are fairing because Walter Smith and seplat are not having it as good as you would think.

Also, research the work you need to put in in order to be an upstream player, that's why most people would rather sell their OML's than explore it. Or better yet enter a partnership with one of the big boys.

Forte oil is not part of the big boys, it's bettered they continue on their downstream than risk it on upstream, because it is very easy to lose it all in crude exploration. Ask Boris becker how he is fairing, I'm sure it isn't great.

The same downstream sector they are exiting in Ghana. Lol

ncoolsome:
The company, majority owned by billionaire, Femi Otedola, has also been in talks with a major refinery to form a strategic partnership for local refining of petroleum products.



Ur statement shows y the rich would always be rich...this guy knows importing fuel would soon go extinct with dangote refinery n co...so he has decided to partner n build than keep importing..

Morning, I just wanted to say that fuel importation is not going anywhere at the moment. What dangote's refinery is capable of producing is not going to dent the business because dangote refinery would produce about 65 mil litres of pms in a year and that amount is what we consume in two days. According to statistic Nigeria consumes about 35 million litres of pms a day.

So don't worry femi's downstream business is still secured. I believe the move he is making is the best. Less risk and more reward.

BedLam:
The same downstream sector they are exiting in Ghana. Lol

You have a point. Maybe ghana's profit is not holding up. Who knows.

I'll just say this, upstream oil exploration is a very dangerous game one mistake and thats the end. I'd advise they enter midstream first. Even dangote is not in upstream but in midstream, hence the refinery in lagos.

BedLam:
That is what happens when you are not innovative just like most other Nigerian businesses like Dangote and Globalcom. These guys just rake in analogue money with no innovation on their side. After many years, these people can't drill oil. We still use Foreign companies to drill our own oil. Meanwhile China the world's largest importer of oil has one of the biggest Oil companies in the world.

You hear of Gazprom of Russia, Saudi Aramco and you wonder what we are doing in this part of the world.

The future will tell. I'm sure one day, cement won't be tasting this sweet.

Drilling oil/moving upstream in the industry is a choice. Otedola has the money, I just don't think he intends delving into it. There's a lot of money in marketing if you don't know. This guy has hundreds of filling station, maybe thousands. Produces engine oil, markets PMS, AGO and Jet A, also has his own solar inverter brand, owns a shipping company, has investments in real estate and owns a power plant. How innovative do you want him to be again?

Otedola should've just stuck to his nokia 3310.

since the irresponsible cuppy made him buy android phones, things seem to have taken a dive.

BedLam:
That is what happens when you are not innovative just like most other Nigerian businesses like Dangote and Globalcom. These guys just rake in analogue money with no innovation on their side. After many years, these people can't drill oil. We still use Foreign companies to drill our own oil. Meanwhile China the world's largest importer of oil has one of the biggest Oil companies in the world.

You hear of Gazprom of Russia, Saudi Aramco and you wonder what we are doing in this part of the world.

The future will tell. I'm sure one day, cement won't be tasting this sweet.

Guy pls for your future sake, always listen to those that have better understanding of issue and refrain from talking on subject you know nothing about so that you can gain. You lack knowledge of big business management and the oil industry, yet, you keep disagreeing with people that are out to enlighten you.
First, there is what is called midstream in oil business, and refining and other oil business processes constitute what you have in that segment of the business, and that is what dangote is into.
Second, Downstream majorly petroleum products marketing is the core business of Forte oil, while E&P and power generation are non-core business, just like E&P is Conoil producing (Adenugas' company) core oil business and Conoil Plc (Adenugas' petroleum products marketing company) is allied or non-core oil business.
Selling off Ghana unit is as a result of it not yielding profit which the article attributed to the Cedis devaluation and other business environmental factors in that country. You can't also rule out the fact that Ghana is a foreign environment to Forte to their performance in that country.
In conclusion, the strategy is to leverage their industry knowledge in Nigeria downstream sector, divest their stake in non-core business (upstream) and non yielding Ghana business, grow and expand their marketing business in Nigeria in anticipation for the dangote refinery. By so doing they will be the biggest by leveraging Otedolas' relationship with Aliko to have constant supply and be the biggest marketer of dangote petroleum products (mutual benefit/symbiotic relationship), because dangote would be the biggest producer while Otedola would be the biggest marketer.
I hope you can understand the logic in the Fortes' repositioning/strategy better now. So it's purely business strategy and nothing to do with being lacking in innovation. Fortes' share price that fell then was as a result of fall of crude oil price and it affected ALL, I REPEAT ALL OIL COMPANIES THE WORLD OVER, INCLUDING EXXONMOBIL, SHELL, CHEVRON, BP, CONOCO PHILLIPS, SOUDI ARAMCO, PETROCHINA, PETROBRAS to mention but just a few.
Cc: kjhova, BedLam

Truth234:
Except all he said were wrong, Gazprom and Saudi Aramco are government owned. Still, battered by global oil glut just like every other oil business. Or why do you think Saudi is launching Aramco IPO? It is simply to curb the impact of global oil on its economy and broadly diversify the economy by opening it up.

If Forte is doing a similar thing to curtail effect of global oil on its revenue base like Shell did last year, Mobil, etc, how is that lack of innovation?

U miss the point. These companies have oil refineries. Ontop of that they are still effected by global ups and down. Compare them then to Forte oil that just does buying and selling. I mean what are we talking about.

babawella:
Guy pls for your future sake, always listen to those that have better understanding of issue and refrain from talking on subject you know nothing about so that you can gain. You lack knowledge of big business management and the oil industry, yet, you keep disagreeing with people that are out to enlighten you.
First, there is what is called midstream in oil business, and refining and other oil business processes constitute what you have in that segment of the business, and that is what dangote is into.
Second, Downstream majorly petroleum products marketing is the core business of Forte oil, while E&P and power generation are non-core business, just like E&P is Conoil producing (Adenugas' company) core oil business and Conoil Plc (Adenugas' petroleum products marketing company) is allied or non-core oil business.
Selling off Ghana unit is as a result of it not yielding profit which the article attributed to the Cedis devaluation and other business environmental factors in that country. You can't also rule out the fact that Ghana is a foreign environment to Forte to their performance in that country.
In conclusion, the strategy is to leverage their industry knowledge in Nigeria downstream sector, divest their stake in non-core business (upstream) and non yielding Ghana business, grow and expand their marketing business in Nigeria in anticipation for the dangote refinery. By so doing they will be the biggest by leveraging Otedolas' relationship with Aliko to have constant supply and be the biggest marketer of dangote petroleum products (mutual benefit/symbiotic relationship), because dangote would be the biggest producer while Otedola would be the biggest marketer.
I hope you can understand the logic in the Fortes' repositioning/strategy better now. So it's purely business strategy and nothing to do with being lacking in innovation. Fortes' share price that fell then was as a result of fall of crude oil price and it affected ALL, I REPEAT ALL OIL COMPANIES THE WORLD OVER, INCLUDING EXXONMOBIL, SHELL, CHEVRON, BP, CONOCO PHILLIPS, SOUDI ARAMCO, PETROCHINA, PETROBRAS to mention but just a few.
Cc: kjhova, BedLam

As all business men would do to maximize profit but remember business men are not good innovators