Maybe you are considering investing in the oil and gas business. In this guide, you’ll be provided with detailed information on how to start an oil and gas business in Ghana.
The oil and gas business in Ghana has been one of the lucrative businesses anyone can think of.
There has been a steady increase in the price of petroleum products over the years, and these products are in high demand because our vehicles and lives need them to function.
The oil and gas business is divided into two sectors, and they are;
1. The Upstream Sector – this sector refers to a local or multinational company that performs the activities of extraction and refining of crude oil. e.g., Tema Oil Refinery.
2. The Downstream Sector – this refers to oil marketing companies that perform the activities of marketing and distribution of petroleum products.
Over the years, the oil and gas business in Ghana has been run through small-scale to medium-scale operations.
Such operation involves the distribution and marketing of the end products of oil and gas.
In this article, we are going to focus more on the common business one can make out of oil and gas in Ghana, and these are;
1. Filling Station Operation – is a place where petroleum products are retailed.
2. Cooking Gas Retailer – is a place where liquefied petroleum gas (LPG), which is used to fuel vehicles and cooking, is retailed.
Requirement To Start Oil And Gas Business In Ghana
To start an oil and gas business, several requirements are to be met to enable the commencement of business operation, and some are;
1. Build a business plan that will cover your business strategy to business capital.
2. Your choice of location must be of a high patronizing station and environmentally friendly.
3. Register your business to gain a legal certificate that holds the official name of your company.
4. Obtain petroleum products marketing license to help market and distribute products.
5. Employ staff for the operation of your business.
6. Advertisement is key for clients to locate you for good products and services.
How Much Does It Cost To Start Oil And Gas Business In Ghana
Being a player in the oil and gas business in Ghana comes with a drilling cost from labor to equipment for operation.
Therefore, it is not a venture to play with, and investors have to be capital inclined to meet the business cost for operation.
How Profitable Is The Oil And Gas Business In Ghana
The oil and gas business in Ghana is very lucrative, and the profit that comes with it is overwhelming.
That is due to the high demand for oil and gas products. These products play a major role in our lives. Therefore, in their absence, many aspects of life cease.
So, running a successful oil and gas business in Ghana is very profitable and a lucrative business venture that has attracted many investors.
Best Places To Start The Business
The best place to set up an oil and gas business in Ghana is to choose a prone to vehicular traffic.
That is because products are mostly used on vehicles, and the right location for easy access by vehicle operators should be chosen.
How To Run A Successful Oil And Gas Business
To be a successful investor in the oil and gas business in Ghana, the measures below have to be considered in business operation:
1. A good customer relationship must be practiced
2. Establish good customer care
3. Provide quality goods and services to clients
4. Having good promotions for purchasing of products attract many clients
5. Stay reliable to customers
6. There is high competition with already established ones, but focus more on winning the competition to be a successful player in the business.
Challenges In Running Oil And Gas Industry
The following are the challenges that are faced by the oil and gas business in Ghana:
1. The choice of location is supposed to be environmentally friendly.
Therefore, many investors make the wrong choice of location that brings about fire outbreaks.
2. The start-up capital is high, and the cost of maintaining and running the business becomes a huge problem for investors.
Benefits Of Setting Up The Business
There are many benefits gained from setting up oil and gas business in Ghana, and some of these benefits include;
1. It promotes the quality lives of people in Ghana
2. The business develops revenue for the government
3. It has helped in the creation of employment in Ghana
That is the information we can provide on how to start an oil and gas business in Ghana.