5-mistakes-new-oil-and-gas-company-make
Employ Staffs First: Many companies do this, the question what are you employing the staff to come and do? Sleep in the office, use the internet for Facebook, Play games with phones, and earn salaries. The oil and gas sector is regulated by regulatory bodies like DPR, NAPIMS, and NIMASA for Shipping Companies, etc. You must register and complete registration with all these regulatory bodies before you employ a staff except your running a charity organization fighting unemployment.
Using Sub-standard Labour: Due to falling in oil price IOCs cut down on numbers of Staffs, other company's do same, they can do that because they have good hands to cover for loose ones but as a new Company you need and experiences hand, who know how to bid for contracts on Portals, etc. this should not be compromised for new companies.
Ignore Regulatory Frame Work: We hear some CEO say forget I know someone there or I have the money. This statement has shut down so many companies as small as VAT is it cannot be ignored in Oil and gas sector, how much more registrations like DPR etc. Please for a new company make such you comply with all regulatory framework of the sector before using your connections and money.
Want to be a jack of all: Some CEOs want to bid for all contract, want to get all jobs with IOCs, they forget the need to pay so much to maintain their regulatory framework to be eligible to bid for that contract, that why you see some companies with 4 to 5 DPR which need to be renewed yearly. As a new oil and gas Company focus on a sector, make your impact felt, and know that anyone talking about that sector talk about you first.
Lack of knowledge of Target Market: as a company you need to understand your sector and know your target market or you will be wasting time and resource on vain things, the example you're a Ship manager and you earn all income from that, you will not want to manage vessels that are out of contract with ExxonMobil or Shell, etc. because after putting in your time, money, etc you will have issues with payment or end up in court. You should understand when to let some profit go, where to focus your marketing strength to.