MARKETING OF PETROLEUM PRODUCT IN NIGERIA (CASE STUDY OF OANDO PETROLEUM PLC ILOIN DEPOT)
Petroleum product is an industrial product from which so many sub-products are been produced or manufactured. Such as Petrol chemical, petroleum, kerosine etc. Among these products, petroleum serve as form of national product because it being consumed by all Nigerian.
This project is sub-divided in to five chapters. Chapter one consists of introduction, historical background objective of the study, scope and limitation of the study, significant of the study etc. Chapter two consists of literature review, development of Nigeria oil industry, Nigeria government involvement in oil business etc. Chapter three consists of research methodology. Organization chapter, structure layout and administration machinery, nature, pattern and strategy of oil marketing in Oando petroleum PLC etc. Chapter four consist data analysis and interpretation, test of hypothesis. and Chapter five consists summary of findings, recommendation, conclusion and referenc
TABLE OF CONTENT
TABLE OF CONTENT
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE/SIGNIFICANCE OF THE STUDY
1.4 SCOPE AND LIMITATION OF THE STUDY
1.5 DEFINITION OF KEY TERMS
2.1 LITERATURE REVIEW
2.2 HISTORICAL BACKGROUND
2.3 ORGANIZATIONAL STRUCTURE OF OANDO PETROLEUM PLC
2.4 DEVELOPMENT OF NIGERIA OIL INDUSTRIES
2.5 NIGERIA GOVERNMENT INVOLUEMENT IN OIL INDUSTRY
2.6 DETERMINATION OF OFFICIAL SELLING PRICE
2.7 PHYSICAL DISTRIBUTION OF PETROLEUM PROJDUCT
2.8 PETROLEUM PRODUCTS PROMOTION
2.9 THE RISE OF INDEPENDENT MARKETER
2.10 ORGANIZATIONAL STRUCTURE LAYOUT
2.11 NATURE, PATTERN AND STRATEGY OF OIL
3.1 RESEARCH METHODOLOGY
3.2 SAMPLE SIZE
3.3 OANDO PETROLEUM RELATIONSHIP TO OTHER COMPANY
4.1 DATA ANALYSIS AND INTERPRETATION
5.1 SUMMARY OF FINDINGS
The discovery of petroleum has taken place for about one hundred and fifty years ago, that was 1859 when the first underground oil was drilled in the United State in Titusville and Pennsylvania.
Petroleum is different from other oils, because it is being manufactured from mineral source rather than animal and vegetable. The source from which petroleum comes from distinguish it from other kinds of oils, since it has been discovered as the valuable product in the world, there was modern technology on the consumerism of petroleum energy which made the product probably to become the most valuable.
Since petroleum is the most widely used source of energy in the world due to the industrialization development and also because a nation blessed with petroleum is economically well positioned because the product is very significant in the nations development. Petroleum is very important and popular base on the fact that, it produces energy in the operation of machines for the use of mankind.
The oil product is used in lubricating most machines in different industries to have long lifespan and it is also used to powered most form of transportation, like ship, train aero plane etc.
The work of exploration and exploitation of petroleum involve geologist who discovered the oil exploitation to be a risky business. The first oil well was only sixty percent (60%) deep, under normal circumstances a well must be drilled before the possibility of a settlement of oil at a particular location can become certainty.
The techniques used in drilling oil well is cable tool which is still the same as the one used for the first oil well in the year 1959, mean while, after the oil must have been ascertained to be in a particular oil well, it is passed to the storage tanks to be refined and later for marketing.
1.2 STATEMENT OF THE PROBLEM
Petroleum serves as form of natural product, but it could have not been discovered if not for the assistance of some geologists who worked on oil exploitation.
Moreover, the marketing of petroleum products serve great advantage to the nation most especially the Nigerians, because this product could have been of no advantage a benefit to the poor people if not because it has been introduced into the market and to be marketing in the best possible way in which people can obtain it easily for their use.
1.3 OBJECTIVES/ SIGNIFICANCE OF THE STUDY
The objective is to find out the importance of marketing of petroleum, products in Ilorin depot and to also study why Oando petroleum as an independent marketer finding it some how difficult to get its allocation from NNPC depot in Ilorin to its final consumers.
To get some basic information on how people choose to buy Oando petroleum product.
One have to analyze and conclude on the marketing of Oando petroleum product in Ilorin and also to find out why Oando petroleum have the largest market share in Ilorin town and factors responsible for it.
The choice of the topic marketing of petroleum product as a case study of Oando petroleum Ilorin depot, have made it from their major objective.
1) To make this project is also significant to the oil company in the sense that apart from Oando petroleum, other oils companies such as National oil, Chevron, Exton Scan also find the research useful in their business.
2) The study is also significant in the sense that Oando petroleum may find the findings recommendations and suggestions made in the study useful in its future operation.
3) This project is also significant in the sense that it highlights the implementation process of attaining high standard of living of marketing of petroleum product. In Nigeria and how government implements could be removed by the process of marketing research which will generally lead to high standard of petroleum product and thus result to the growth of the Nigeria’s oil industry which is basically the backbone of Nigerian economy.
4) To pursue my academic alternative that is in partial fulfillment for the Award of Higher National Diploma in Purchasing and supply.
1.4 SCOPE AND LIMTATION OF THE STUDY
For the purpose of accuracy and easy collection of data, this research is restricted to the operations of Oando petroleum Ilorin Depot.
The study course the concepts of marketing of petroleum product in Ilorin, concerted efforts are made on the study concerning the marketing of Oando petroleum within Ilorin in order to know all their activities and operations also to study how they market their product and equally know their location.
Also, the intentions of the product critically examine, analyze and appraise the operation fat Oando petroleum PLC, Ilorin depot, with the view to generating an oil product marketing in Ilorin and their contribution towards the development of Ilorin town.
Furthermore, the project will be of immense important to petroleum product marketers and the generality.
LIMITATION OF THE STUDY
One of the major limitations of the study is collection of primary data such as Observation, interview and questionnaire as an instrument of concrete records. The other includes validity of secondary data which were used in the writing of the research project. The manual analysis of data collection for the research project is another limitation concerning marketing of petroleum product In Nigeria.
1.5 DEFINITION OF KEY TERMS
Marketing: Human activities directed toward satisfaction and want through
Market: The set of all activities and potential buyers of product and
Product: Is a set of tangible and intangible attributes including packaging,
colour, size, price manufactures and retailers which the buyer may accept as offering want satisfaction.
Industrial goods: These are goods meant for the further production and
Consumer Goods: These are goods that are made specially for final
Marketing Strategy: This means the regenerating of company in terms of
its product life cycle, the promotion strategy for any product that
are influenced by product life cycle.
Marketing research: The systematic problem analysis model building and
fact finding for the purposes of completing the research.
Secondary Data: It is the data which already exist somewhere having
obtaining it through books, trade journals, magazines subjects,
publication, trade fairs, seminars. etc.
2.1 LITERATURE REVIEW
According to this project topic which is marketing of petroleum product, marketing is not complete until when transferring of ownership has been carried out and after the consumers have received some satisfactions from the use of product.
KINDS OF PRODUCT
Since Oando petroleum is considered to be the target of most leading oil marketing in Nigeria. The company major products are refined from petroleum such as Petrol, Diesel, Lubrication type aviation fine gasoline. Other specialized chemical products include industries chemical especially for domestic consumption such as air fresher.
2.2 HISTORICAL BACKGROUND OF THE ORGANIZATION
The historical evolution of Oando petroleum PLC, back to 1954 when the then British Petroleum company on the West Oando Coast in 1964. The British Petroleum limited was incorporated in Nigeria as an associates of the world wide British Petroleum group, it marked British Petroleum product throughout the federal republic of Nigeria.
In 1979, the company changed from a private company to public one, when 40% share were sold to Nigeria citizen in compliance with provision of the Nigeria enterprises promotion Decree of 1977.
On 31st July, 1979 the federal government acquired the remaining 60% which was owned by British Petroleum, thus making the company entirely Nigerian company. As a result of this, the name of the company was changed from British Petroleum to Oando Petroleum limited in November 5th 1979. Subsequently 20% of the federal government’s 60% shares in Oando petroleum were put to sales to the public in March 1989 fulfillment of the privatization policy.
The shares were over subscribed during the exercise; this increased the number of share holders fro about 15,000 to 144, 000 which is the largest in the country. The company currently has share capital of 72 million Naira.
Oando petroleum is one of the eight major marketers of refines petroleum in Nigeria. In physical terms the present 1-15 million metric tone valued at over 1.26 million, the company procures and distributes such as Petrol, Diesel, kerosine the company also produces and markets wide range of lubricant mostly African petroleum branded grades to some of Nigeria motorist in order to ensure that great country operate in four marketing areas.
The sources of the companies main products is NNPC through it’s network of strategic depot and refineries. The company has its own depot for lubricating oil which rely mainly on, the company has plant in Apapa with a production capacity of 50,000 metric tones..