Hyde Energy is strategizing aggressively to control market in the Oil and Gas Industry.
Hyde Energy is an indigenous global petroleum trading company with a downstream network. Its expertise to deliver high quality products and services is unrivalled.
Speaking at a media parley organized by Hill+Knowlton Strategies (H+KS), the Chief Executive (CE) of Hyde Energy, Dimeji Edwards, noted that the indigenous company with a global outlook has over 40 employees with a combined management experience of more than seventy-five (75) years.
The company operates across the value chain of the energy industry. Hyde Energy Nigeria deals with the importation & distribution of petroleum products including Premium Motor Spirit (PMS), Gasoil, Dual Purpose Kerosene (DPK), Jet Fuel, Liquified Petroleum Gas (LPG), Lubricants and Naphtha.
Hyde Oil is the retail company which deals with regional distribution and has stations in major cities across Nigeria.
Edwards asserted that the company known as Hyde Petroleum is still at its embryo stage, “it hasn’t done anything at all at this point because of its focus only on the upstream sector of the industry and as you are aware the government recently announced a brand new marginal field bid round which we are participating in and hopefully we shall get the required amount of money to be able to secure at least one asset for Hyde Petroleum.”
The Chief Executive of Hyde Energy pointed out that one of the things the company is proud of is its lubricants. “A few years ago, we decided as a company to trade in products which we will give to our customers. They are quite happy with our services and if we have any additional product, we will offer them.”
This was how our range of products came into existence and this is one of the key things the company did to improve the quality of products available to the public in order to meet customer needs.
Hyde Energy has lubricants that cover the entire spectrum of the petroleum industry, comprising of diesel engines, generators, industrial lubricants, hydraulic oil, turbine oil among others.
He said the Luminor ZS9 synthetic engine oil is the company’s flagship product, it competes with some of the best lubricants in the globe. “It is the latest technology in synthetic fuels with chemicals appropriate for harsh environments, essentially a humid climate. Nigeria’s humidity is high with a temperature that makes it a bit intense.”
Being a media parley, Edwards responded to a question that Hyde Energy, even though Covid-19 pandemic has affected the downstream with complaints from the players about the tough environment in terms of low returns on investment and low margins on petroleum products, will use the opportunity it has as an organisation to reduce cost, rationalize its workforce and make it more effective. “Thankfully, we have not made anybody redundant but we have made our people more focused and see things differently to create value.”
The indigenous oil trading company strictly focused on customer service and was open throughout the lockdown supplying petroleum products to its customers. It supplied its customers consistently with Liquefied Petroleum Gas (LPG) for cooking. “This is what we are doing differently and we decided to focus on our customers to ensure they are satisfied; a happy customer makes us a happy company.”
On the aspect of deregulation of the downstream sector, sourcing of products and other sundry issues, Hyde Energy focuses on its customers while relying on its processes to be efficient in sales and distribution in order to survive and continue to remain relevant in the industry.
Edwards disclosed that Hyde Energy has filling stations across Nigeria in different parts of the country. The company’s lubricants are well known in key strategic markets especially in the South-East while maintaining its strength in Lagos and its environs. It is a major supplier of hydraulics and lubricants to some multinational companies in Nigeria.
LPG is another major business for Hyde Energy, supplying its stations and customers which are varied from bakeries, restaurants, food vendors to industrial users.
On gas utilization, Edwards submitted that the company will use the opportunity being presented by the government to invest in gas in Nigeria. Obviously, this is where the focus is because gas is the future of the industry. There will be gas penetration from Compressed Natural Gas (CNG), Liquified Natural Gas (LNG), LPG and Natural Gas. Hyde Energy will find its niche among these gases.
Edwards added that the government is doing its best to make the private sector thrive. “The Ministry of Petroleum is doing everything within its power to ensure that operators in the industry survive and we will stand and continue to support the Ministry in its push to ensure that gas is made available nationwide, we see that happening increasingly every day. We are at the forefront in supporting government in its initiatives.”
On the company’s expansion, the Chief Executive said, Hyde Energy will key into the Federal Government’s aggressive plan on gas since it has declared 2020 as the Year of Gas. The company will ensure that gas is taken to the entire spectrum of Nigeria. “We are encouraged by Government’s plans and enthusiasm including incentives they are putting in place. Hyde Energy is definitely at the forefront supporting the Government to assist and realize its goals and ambition.”
Responding to a question on the Petroleum Industry Bill (PIB) and how it will affect the industry, Edwards reacted that the bill if passed will be a welcome development for the country. He said the content will be good for the industry owing to the projections from the bill. As an indigenous company, Hyde Energy will leverage on the benefits that PIB has for local operators, “it is a great opportunity for all.”
Laying emphasis on diversification with Hyde Petroleum which is the upstream segment of the company, Edwards maintained that the company is aware of the enormous challenges. The upstream requires technical know-how with huge funding, notwithstanding it is equal to the task.
The company’s view long-term is to ultimately integrate its downstream with the upstream business. The technical expertise will be from indigenous Nigerians whohave knowledge of the upstream with significant years of experience in the industry.
Edwards revealed that the company will decide if it will partner with a foreign entity on the upstream project while depending on the banks that have deepened reserves in the last ten to fifteen years in the country. The banks have the ability to fund projects and have grown their reserves increasingly in Nigeria. “We have confidence in local financial institutions with indigenous technical people that have capacity of extracting hydro carbon.”
Deregulation has been an issue with Nigeria’s downstream sector as prices of petroleum products are regulated by the government. The government has made its intention known to allow market forces to drive the sector.
However, Edwards believes that deregulation opens a completely new vista for every operator to predetermine margins. But the status quo remains as it has been for the last twenty years. In his words, “we might not have a significant change in the industry.”
Hyde Energy seeks investment to develop its marginal field asset and it has ample confidence in the indigenous banks to support the process while also approaching other foreign financial and multilateral institutions for the project.
Reacting to a question at the media parley with journalists on how Hyde Energy intends to gain market share and improve its dominance in the lubricant space, the Regional Sales Manager and Head, Lubricants, Victor Nwakaku, said, pricing is a key challenge. Being an industry that is deregulated, products including recycled oil are imported into the country, but Hyde Energy came with a different narrative.
Nwakaku said the company is a reliable global petroleum trading company with value to create in the sector. The company has a mandate to demonstrate value to its customers.
“In this industry, we are not targeting everybody, we identify ourselves as top players competing with key International Oil Companies (IOCs) that have been playing big in the industry and we want to match them in terms of quality.”
Nwakaku made it known that Hyde Energy has identified pricing as a concern in the industry. It came with the mantra to change and put pricing in proper perspective. One of its core mandates is to provide its customers value for money and make sure that products are available through marketing activity by going to the grassroot.
The company has done market storms in some parts of the country educating auto mechanics on the use of its lubricants. “We are identifying with them so that they can know the value of our products in terms of quality and value proposition.”
Interestingly, Nwakaku exclaimed, “no one has used our products once that will not want to come back.” He said the prices of the company’s products are moderate and competitive to its customers. The products have been tested and proven to be good in the market. “What interests them most is the value of the product.”
The Hyde Energy Regional Sales Manager and Head, Lubricants, opined that at present in the downstream sector, the indigenous company is the only one playing across the entire value chain in the lubricant space. Its array of products includes: greases, gear oil, coolant, turbine and transformer oil. Most people use the SAE grade. Hyde Energy has gone ahead within the industry by supplying different grades of lubricant products which it gives to its numerous customers to their satisfaction.
Indeed, Hyde Energy is the new face of the Nigerian oil industry and as an indigenous concern, there is confidence of becoming a future champion
