In this article, we will be looking at how to start an oil and gas company in Cameroon and ways to join the Oil and Gas Business in Cameroon with minimal capital.
Many entrepreneurs know that the Oil and Gas business is very lucrative in Cameroon, but they don’t have the money to start because they think it’s capital intensive.
The Oil and Gas Industry in Cameroon
The oil and gas sector is one of the most strictly regulated industries but probably the most profitable and risky. In fact, crude oil or petroleum and its derivatives are essential commodities that are consumed on a daily basis.
Despite the demands for the adoption of alternative renewable energy resources, oil still remains the number one because 99% of all vehicles and machines use either PMS (Petrol) or AGO (Diesel).
Business Ideas and Opportunities in the Oil and Gas Industry
Hence, the demand for petroleum products would still be on the increase even in the future, except if a different kind of renewable energy is invented. Starting a business in the oil and gas industry is a very profitable venture; many have made millions, and others have even become billionaires. There isn’t any need to become a resident of Cameroon, the USA, Saudi Arabia, or any other oil-producing country to take advantage of this opportunity.
You will not need to have big capital before you can be an oil merchant, as there are many profitable but low startup capital services that you can render in the oil and gas industry. What you need is the desire for success and the nitty-gritty of the business before starting. In Cameroon, you will have to scale the hurdles of getting licenses and approvals before you can venture into the oil and gas business.
Steps to Start an Oil and Gas Business in Cameroon (and Business Ideas/Opportunities)
1. Oil Drilling and Exploration
Starting with oil and gas exploration is the most risky but lucrative business in the petroleum industry. To start, you will need a large amount of capital, heavy machinery, a highly competent technical team, and approval from the government. In Cameroon, such approval is called an “Oil Prospecting License (OPL).” Companies operating at this level include Total, Tradex, etc.
2. Equipment Leasing
If you don’t have large capital to venture into oil exploration, you can still make money by setting up an equipment leasing company to serve the petroleum sector specifically.
3. Petroleum Refining
Another lucrative business in the oil and gas industry is petroleum refining. It is possible to set up your own small private refinery and compete with the big players in the industry since oil is a commodity that actually has no unique selling point.
For instance, with the deregulation of the downstream sector in Cameroon and the current upstream deregulation plus the planned subsidy removal, setting up a private refinery is the next business that will kick off in Cameroon.
4. Offshore Trading
Some oil shipping tankers don’t have permission to sail through the waterways of certain countries, so what they do is to sell their oil at the border to a merchant whose ship has the right to enter the country. If you have the capital and logistics to buy these products offshore at a bargain, you can make some profit from the deal.
5. Oil Farm or Depot
You can also set up a tank farm and sell petroleum products to distributors and retailers. In this case, you will need to build massive tank farms or reservoirs to store your products as you will either import your own products, source your products from the local refineries, or buy from the oil tankers.
6. Fuel Haulage and Logistics
If you want to avoid the stress of getting a license and the strict compliance associated with starting an oil company, then you can purchase trucks and haul petroleum products for marketers from the depots to their desired destinations.
7. Filling Stations
You can also set up a fuel station and retail petroleum products such as PMS (Petrol Motor Spirit), AGO (Diesel), and DPK (Kerosene) for domestic and commercial users.
10. Petrochemicals refining
You can start the production of petrochemicals such as Benzene, Ethylene, Ammonia, Toluene, etc.
11. Domestic DPK Retailing
These mini fuel stations are simply retailing Kerosene to households and domestic users. If you don’t have the funds to purchase motorized pump machines, you can start by using big barrels. But remember that you must be licensed before you can start this business.
12. Gas Wholesaling and Retailing
You can also set up a gas plant or a wholesaling point. Or better still, you can retail domestic gas like ethane and butane.
Suggested: Top Petroleum Companies in Cameroon.