Embed Size (px)
Citation preview
Sweat Your Asset ©2017 1
Nigeria's Downstream Oil and Gas Industry CEO Strategic Brief 2017-
2020
Sweat Your Asset ©2017 2
Strategic Growth Denominators and Game Changing Levers for the
Nigerian Downstream Oil & Gas (QAG) Sector
2017-2020
Sweat Your Asset ©2017
Content
3
Macro Operating Overview of the Downstream OAG sector 4
Strategic Growth Levers and Game Changers
The Chief Executive Strategic Execution Imperatives
8
14
The Chief Executive Strategic Execution Imperatives 17
Sweat Your Asset ©2017
Macro Operating Overview of the Downstream OAG sector
4
Sweat Your Asset ©2017
Overview of the Oil and Gas Value Chain
5
Sweat Your Asset ©2017
Primary Macro Factors that influenced the operating Outcomes of the Nigerian Downstream Oil and Gas sector
in the last 3 years
6
Topsy-turvy nature of the deregulation of the downstream oil &gas sector has critically shaped the operating outcomes of operators impacting on subsidy regime implementation, local pump pricing regimes & exerting significant topline/bottom line impacts on all operators.
The Global Oil Prices crash and the attendant effects on global crude oil supply glut massively changed the profitability operating narratives of all operators with concomitant recalibration of local petroleum products pricing regimes
Triple whammy for Nigeria as the Global Oil prices crash also triggered an intense economic recession cycle in Nigeria with attendant ripple effects on the exchange rate regime, cost of funds and ops predictably eliciting seismic macro and micro changes in the Downstream Oil & Gas sector
Sweat Your Asset ©2017
LPG- Strategic Operating Denominators and Imperatives (SODI’s) For Nigeria’s Downstream Oil &
Gas CEO’s in 2017-2020
7
Sweat Your Asset ©2017
Strategic Growth Levers and Game Changers
8
Sweat Your Asset ©2017
Global Oil Price in 2017 will set the tone for the downstream sector
*EIA warning: “The values of futures and options contracts indicate significant uncertainty in the price outlook.
9
Sweat Your Asset ©2017
Nigeria Downstream Oil & Gas Strategic Growth Facilitating Levers and Game Changers in 2017-2020
In addition to the unpredictability of global oil prices, the following are the strategic growth levers and game changing factors that every downstream oil and gas sector CEO must build capacity to take advantage of if they intend to stay in the game in the next 4 years.
10
Sweat Your Asset ©2017
Dangote Refinery- The Big Game Changer • 650,000 bpd capacity refinery planned for end 2018 will redefine the oil
and gas downstream sector in Nigeria• Massive opportunities exist across the value chain of the refining activity
11
Sweat Your Asset ©2017
LPG-Surging Demand Creates Strategic Growth Opportunity
12
Sweat Your Asset ©2017
Lubes- Offers Attractive curve for Strategic Business and Market Share Growth
13
Sweat Your Asset ©2017
Gas and Power- The Drivers of Nigeria’s industrialization
14
+ FGN Draft Document on Nigeria Power Sector Investment Opportunities and Guidelines 2016
The Gas and Power sub sector is the one with potentially the greatest growth Curve in the Downstream Oil and Gas Value chain
Sweat Your Asset ©2017
The Chief Executive Strategic Execution Imperatives
15
Sweat Your Asset ©2017
The 3 E’s representing the Critical Success Factors For the Downstream Oil and Gas Sector
2017-2020
16
Sweat Your Asset ©2017
To achieve the 3 E’s every operator requires a strong Corporate and
enterprise Performance; •Culture
•Capability•Systems
•M & E Mechanisms
17
Sweat Your Asset ©2017
What Next For Your Downstream Oil and Gas Organization in 2017?
18
Sweat Your Asset ©2017
Nigeria’s Key 2016 Social Economic KPI’s
19
Sweat Your Asset ©2017
OIL PRICE ($)
OIL OUTPUT
EXCHANGE RATE
INFLATION
GDP GROWTH
FISCAL DEFICIT - GDP
2016 Budget Dec 2016 Actual 2017 Budget
$38
2.2M/BPD
4.3%
2.14%
9.81%
$42.5
2.2M/BPD
2.5%
2.18%
15.74%
Nigeria 2016-2017 Key Budget Assumptions
20
Sweat Your Asset ©2017
Some Key Takeaways from the 2017 Budget
21
Sweat Your Asset ©2017 22
In the light of these and few more business landscaping factors arising from the macro and micro operating environment, what
strategic positioning should your organization adopt to stay ahead of the pack in 2017-2020?
Contact us for more Strategic Business support & SolutionsContact us for more Strategic Business support & Solutions
Dr. Olayiwola OladapoManaging Partner
Sweat Your Asset Derivative [email protected]
www.sweatyourassets.com
