The CEO of the Ghana Chamber of Bulk Oil Distributors has identified strong relationships across the oil and gas downstream value chain as a critical factor for success in the sector.

Senyo Hosi said this at the maiden webinar lecture series organised by the Client Coverage Unit of Stanbic Bank.

In giving insights into Ghana’s oil and gas downstream business, Senyo Hosi, admonished Bulk Distribution Companies (BDCs) to take strategic steps in order to be successful in the oil and gas business.

“BDCs need to build strong International Oil Trading Companies (IOTCs) relationships, have strong finances and have a captive hold on oil marketing companies (OMCs) through strong value propositions in order to stay afloat in the oil and gas downstream business,” Senyo Hosi said.

He further advised the OMCs to cultivate specialized markets for their operations especially because of the competitive nature of their market.

According to Senyo Hosi, “OMCs need to set themselves apart through branding, pricing and distribution outlets. They must also enhance their access to specialized markets for successful operations.

“The OMC sector is a fiercely competitive area and so OMCs will need to position themselves strategically in order to be successful.”

On her part, Head of Client Coverage at Stanbic Bank, Dinah Kaleo-Bioh, explained how critical it is for players within the sector to have adequate knowledge that allows them to navigate the challenges for effective business operations.

“Today’s business environment is a constantly changing one and it is important that businesspeople constantly learn and adapt to these changes for success. It is in understanding the nuances of the changing business environment that we can reliably deal with many different opportunities and circumstances within the environment.

“That is why engagements like these are a priority to us at Stanbic Bank. We are constantly looking for ways to enhance the operations of our customers and clients,” he said.

Senyo Hosi also asked banks to have in place better collaborative mechanisms in financing players within the oil and gas downstream industry.

This, he said, will help the banks spread the risks associated with the industry while at the same time providing adequate finances for an industry that is very capital intensive.

Ghana discovered oil and gas in commercial quantities in 2007 and commissioned the production of crude oil and natural gas in 2010.

Since then, the sector has been a significant contributor to the growth of the country’s economy.

According to the Ghana Statistical Service (2015), Ghana’s GDP recorded an increase in growth (14%) in 2011 from 4.8%) in 2009 after two years of exporting oil.

The session, moderated by Lionel Nuno, Head, Oil & Gas, Client Coverage, at Stanbic Bank, gave players within the industry insights into how to efficiently support players in the downstream petroleum sector and also structure financing that will allow positive growth within the sector.

Over the years, Stanbic Bank’s Client Coverage Unit services corporate clients with special financial needs across different sectors of Ghana.

The Unit offers specialized services to companies in the mining, oil and gas, telecommunications, agriculture and service sectors.