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Friday, January 20, 2012

PETROPLUS and NIGERIA to team up - downstream meeting upstream - to the benefit of everybody

posted by
Author Thomas Ramseyer
Facts
1) Outstanding strategy to develope economy
Nigerian Jonathan Goodluck Administration has developed a serious and reasonable middle to longterm strategy for developing Nigeria's domestic economy.

2) Lack of oil export leading to lack of money
Because of lack of oil export, Nigerian government wants to raise the necessary funds by levying tax on the most needed good; the petrol. As a lot of Nigerians heavily depend on transport the price augmentation really hurts them. A lot of them are striving but for a square meal for their families.

Nigeria lacks positive cashflow due to the fact that Brent has been trading at levels of USD 10 to USD 20 above Arab Crude.

3) Lot of vessels waiting outside Bonny Island
Off shore Bonny Island twenty to thirty vessels crammed up to their brims are desparatly looking for buyers as to relieve them.

Nigeria's lacking Bonny-light oil export, merely is running out of cash thus being not in a position to buy the desperatly needed Oil-derivatives such as petrol for the filling stations.

Whatever the price of petrol is, the filling stations' storage space is empty. Petrol sales are done in the street by hookers at prices well above NGN 65 per liter.

4) Strike will not be finished at a given level of NGN 97/liter
The government's offered NGN 97 price per one liter has not yet been approved by the Labour Union.

The strike only has been postponed meaning that it will going to be picked up again.

The matter is also getting out of hands of the aforesaid Labour Union.

5) Just like Obama, Jonathan Goodluck is permanently being blocked by his parliament
Jonathan Goodluck and his administration is permanently blocked by the senators. Similar is happening to Obama right now. It is evident: certain forces are keen on getting rid of both: in Nigeria Goodluck, in the US Obama.

6) Bonny light really has nothing in common with Brent
Bonny light in fact has nothing in common with Brent but for the chemical composition which is similar.

Brent is about to vanish because it is about to run out. Platforms are being removed from the sea. The oilbusiness (up- as well as downstream) in the north of the UK is about to severly being restructured.

Irish and Scots are up to a huge task; they have to change their economy and thus their skills from scratch. If not the region will end up without people.

7) The of Bonny light to Brent is a fatal mistake - correct this
Brent is traided on the Chicago Board of Trade (CBOT). Its prices are fixed by some bonus-hot greedy youngster lingering about Chicago. In a flicker of a second those people have starve populations overseas by merely manipulating the quotes. (maybe Saudi Arabia is rolling Brent-contracts just for the sake of the spread to Arab crude thus empower the desperatly looking for money Arab countries.

8) Leaving the OPEC is more then overdue
Given that Nigeria - member of the OPEC - is restrictet totally by the fact of Bonny-light's prices, the Arab countries use Nigeria's quota as well.

Suggestion and advice
1) Untag Bonny-light from Brent. (Trade Bonny light on a seperate line. NNPC fixes offering price)

2) Establish an ECOWAS board of trade. E.g. Lagos board of Trade (LBOT) or/and Abuja board of Trade (ABOT) to trade not only African Oil but all other goods produced in West-Africa.

3) Sell Bonny at prices slightly below Arab Crude for crowding out the Arab crude.

4) Anybody in need of Bonny-light has to use LBOT or ABOT. Same is valid for Cacao and other african resources.

5) Attract Downstream activity and join them (50%/50% or 49%/51%)

6) Have a company (preferredly Petroplus with sole downstream activity) found a daughter company in Nigeria. E.g. Petroplus Nigeria.

7) The primary liberation is totally taken on the books of Petroplus Switzerland.

8) The ground zero balance sheet is not to be heavily loaded with cash or real-goods.

9) Create about 170 Billion shares of Petroplus Nigeria.

10) Sell them publicly as secondary offerings to private investors mainly having them become shareholders of a company building up infrastructure in Nigeria. (People own the infrastructure not being at the mercy of some government)

11) Sell shares against payment only. A papertrail compulsorarily is needed. No cash in the street involved. 419 (advanced fee fraud) thus is not possible.

12) Do veritable rollouts when preparing secondary offerings. Bring full transparency to people throughout the whole Nigeria. All states' citizens are to be involved and given the opportunity to participate in the builup of infrastructure. By doing this everybody will profit from Oil up- and downstream activity.

13) Because the channels now are short - the oil does not travel to the USA then travelling back as refined goods to be sold at the expense of Nigerian citizens - locally produced refined goods are very competitive versus USA. Also Refinery activity is done in Nigeria furnishing its economy with jobs thus money which is going to boost the economy through consumption creating even more jobs. Also the finance sector is going to aggravate. It again will be recognized on a world wide level because of being the number one center for Bonny-light. (Nigeria's proven reserves are big enough to rank them number six)

14) As everybody - politicians, senators, bankers, lobbyists and their connections - has the opportunity to participate on a state of the art level, no corruption is needed to push Bonny-light's tag removal through the senat. It will be a joint will for the benefit of not only all Nigerians but all ECOWAS members' citizens as well.

15) Buying activity shall be started just now. It will be very useful to buy PETROPLUS Switzerland AG's shares right from today. CHF 1.50 (total market valueof this fine entreprise is roughly CHF 160 Million) is considered a twinkle in a hooker's corner of an eye. Buying 1000 shares can be afforded by almost everybody. Also this money will not be at stake. This money never will be lost. Supposedly a takeover offer will emerge out of the blue by the date of 2012's general meeting.

16) It is important, that the share owners do not give the voting right away to some obedient bankers. If any they may choose some locals to represent them on the date of that general meeting to come.

17) Be prepared to put at least one smart person on seat at the board of directors in Switzerland.

18) Maybe the exchange of some of the directors is appropriate.

19) As two members of the board also sit with IMPLENIA (Swiss state of the art high way  constructers) and SIKA (Swiss state of the art real estate constructor) wanted transfer of experienced knowledge, skills and science will take place. Not forget to mention Nigerian government's will to retrofit Nigerias Railways (SBB-workers could be involved as well). Hospitals are to be built, also a lot of other infrastructure. (The raising of funds can easily be effected in the same way as for Petroplus Nigeria)

Remarks
Swiss small and middle sized enterprises can meet the market they desparatly were looking for. All needed is but a portion of guts as to throw overboard all prejudices about and towards Nigeria.

Final advice for immedate action to be taken
Just start it at any level, success is granted; it will be worthwile.

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