When Alexander the Great died at the mere age of 32, the whole world save for the then Grecian empire would have been forgiven for celebrating all-night long. Before his death, it simply was a matter of when, not if, the young ruler would conquer the entire world. In fact, he was well on his way after conquering the then dominant Persian Empire after just 6 years as king. His success was hinged on his brilliant and systematic strategies along with a knack for forming the right alliances. He solidified his base, then moved his conquest outwards gradually until he was at the top.
Politically, there may not be another Alexander the Great. However, in the corporate world, there are still those few companies who through strategy, focus and alliance rise to the top of the ladder in what seems to be no time at all. This feature article looks into how one of the global leaders in oil and gas rose to the top using this philosophy.
The Sahara Group was created in 1996 with its focus on the trading of petroleum products. Considering the local situation at the time, the company shifted its trading base from Lagos to Geneva in 19998 in an attempt to protect what was then a fledgling enterprise. However, the transfer of its trading base to Geneva did not make the company lose its focus. Within the next 4 years, Sahara Group systematically established trading operations in West Africa through its operations in Ghana, Cote d’Ivoire and Nigeria, the most vibrant oil and gas markets in the region. This effectively made it one of the major players in the West African downstream sector.
After achieving this, the company did not rest on its oars, but rather, decided to attempt a repetition of its feat in the downstream sector in the upstream sector as well. Beginning with its acquisition of majority stake in the Tselekwu marginal fields, the company went on in 2014 to become the first to achieve oil production on the OML 148 block onshore Nigeria. However, the successes in production did not mean that the company had abandoned trading and distribution. In 2006, it became Nigeria’s first non-major independent aviation fuel marketer to local and international airlines in the country. And in 2009, it became an IATA certified Aviation Fuel Marketing company.
From the success in crude oil production and trading, what was next was the gas and power sector. After all, it is the oil and gas industry. In 2006, the company made huge inroads into the gas sector by acquiring equity in the OKLNG and BRASS liquefaction plants. This was followed by acquisition of equity in Egbin Power Plc and Ikeja Electric in 2013. With these acquisitions, it was clear that the Sahara Group was looking to both production and distribution of gas and power in the region. The same was happening in other West African countries as the company formed alliances with other local companies to increase its stake in the energy value chain.
The trend is clear. Become a major player in petroleum product distribution and the downstream sector, move to the upstream sector, then gas and power to follow. A systematic and gradual plan following the blueprint of a past conqueror.
The result? By 2012, Sahara Group had become a global leading energy and infrastructure conglomerate with global revenue in 11 digits. The next year, it could boast of over 4000 employees in 7 countries across 4 continents- a true global conqueror. Like Alexander, it has become the King of the Four Quarters of the Energy World.
So, there is no saying that you cannot be the next global leader. But you have to follow the rules. Dream big, start small. Have a target and create a road map to that target. Never bit more than you can chew. Sahara Group didn’t go into oil and gas simultaneously. Look for that niche of your industry you can succeed most and use it as your base. From there on, expand and explore. Follow your map carefully and you could be the next King of the Four Quarters of your industry.
