OUR SERVICES
Commercial and Technical Structure HOGL’s business structure:  Commercial and Industrial
HOGL has continued to play a very significant role in marketing and distribution of white fuels and other petroleum products to industrial and commercial customers since its establishment. Specifically, over the years, HOGL has established itself as a major supplier of all types of fuel including: AGO, PMS, DPK, LPFO, HPFO & LPG to industries. Today, HOGL sells to well over two hundred industrial customers in different sectors of the economy. HOGL has a Bulk Purchase Agreement with the Nigerian National Petroleum Corporation (NNPC). This Agreement qualifies the Company for monthly allocation of petroleum products from Pipelines and Products Marketing Company (PPMC), an arm of NNPC. Products allocated are transported to HOGL’s storage facilities located at Apapa (Lagos) and Calabar in Nigeria. From these storages, products are distributed to industrial customers all over the country using both own or hired vessels and branded fleet of road tankers. HOGL also has a sizeable number of bulk buyers who purchase products either offshore or from the storages for resale to both industrial and retail customers. Apart from product allocation from PPMC, the Company also imports and buys imported cargoes of petroleum products. The Company holds a valid Import Permit issued by the Federal Government of Nigeria through its Department of Petroleum Resources (DPR). Gasoline and Diesel have been the predominant products imported or bought from importers in recent times.
Retail productsThe company commenced the process of retail station ownership in 2004. By the end of 2005, the company had over 100 branded retail outlets scattered across the country, but concentrated mostly in the eastern part of the country. Most of these stations were added through either lease or Retailer Owned Retailer Operated (RORO) arrangements. HOGL’s current strategy for sustainable retail business is to own a wide network of own stations and a few but profitable ROROs. Its preferred strategy for achieving this is to acquire an existing network of stations with a good geographical spread.
LubricantsHOGL engages in production and distribution of Honeywell branded lubricants. The Company had a franchise agreement with Exxon for the distribution of Esso branded products for a few years. With the merger with Mobil Oil, HOGL could no longer continue to sell Esso products and therefore had to commence blending in its own name. In the intervening period, many of the chemists and chemical engineers in HOGL attended many courses on modern blending technology and chemistry and became well versed in the science of lubricant blending. “Honeywell Lubricants” have in its short period of existence received commendable acceptance in the market. Currently, available statistics indicate that Honeywell’s brand of lubricants is one of the leading brands of lubricant consumed by industrial customers in Nigeria. The products are divided into five main groups: - Automotive Products
- Industrial Products
- Other Specialty Oils
The Company has established that there is a huge market for lubricants in Nigeria and the neighbouring African countries and is thus seeking to increase its production capacity. Therefore the Company plans to build or acquire a bigger and standard blending plant to increase its production capacity and hence revenue. The company is also seeking opportunity to acquire franchise of an international brand of lubricant to service its customers in areas of highly specialized operations with recommended OEM technical specifications. Logistic and Distribution Marine Operations and Coastal Transportation of Petroleum ProductsHoneywell Oil and Gas Limited was also one of the pioneer indigenous companies engaged in use of vessels for marine and coastal operations. The Company’s clientele comprises multinational oil companies and indigenous oil marketing companies. Supporting marine and coastal operations is a team of highly trained oil tanker managers who have been in the business of marine transportation and vessel administration for about two decades. The Company is also largely involved in coastal/ marine sale of petroleum products delivering bulk products to various customers, including oil & gas exploration and production companies; oil services companies and other independent marketers with bulk storage facilities. Terminal Operations and Fleet Management
HOGL has two tank farms (terminals) which it uses for storage of different petroleum products (white fuels) and eventual distributions to its sale outlets and other customers. Located at Apapa is a terminal with total storage capacity of 33MT and there is a plan to increase capacity by another 50MT. In Calabar, total available capacity is 10MT and it is being planned for upgrade to 30MT. The existing capacity is therefore planned to be increased to about 85MT. This will enable the company store large volume of products for distribution to a much wider network of selling points in Nigeria and other African countries. The distribution of products to the hinterland is complemented by a large fleet of road tankers transporting products from the terminals to all sale outlets in Nigeria. This fleet has been managed for over a decade with high standards of safety professionalism and customer service orientation. |
