How a Freelance Online Marketer Built a Multimillion-Dollar Oil and Gas Empire Without Capital
Here's What We Do Better
Background
Our client, a freelance online marketer, had a dream of starting their own business in the oil and gas industry. However, they faced a number of challenges, including a lack of startup capital and industry experience. They approached us at World Trade Exchange as a countertrade expert and consultant, seeking our help in launching their business.
Problem
The client’s lack of startup capital and industry experience were major obstacles to launching their business. They had no collateral to secure traditional funding and had difficulty finding investors willing to take a chance on a new business in a highly regulated and capital-intensive industry. Additionally, the client had limited industry contacts and knowledge, making it difficult for them to secure contracts and generate revenue.
COUNTERTRADE SOLUTIONS
SOLUTION #1.
To overcome these challenges, we leveraged a combination of countertrade mechanisms to generate cash revenue for the client. First, we utilized a Counter-Purchase agreement with a large, established oil and gas company in the United States. Under this agreement, the client agreed to purchase a certain amount of oil and gas from the established company, while the established company agreed to invest a portion of the revenue generated from the sale of the oil and gas back into the client’s business. This provided the client with the capital they needed to obtain all the necessary licenses and permits, meet regulatory requirements and successfully launch their business.
SOLUTION #2.
Next, we set up a Joint Venture agreement with a major oil and gas company based in the United Kingdom. This agreement allowed the client to tap into the industry knowledge and contacts of the established company, while also providing them with a source of revenue through their share of the profits generated by the joint venture.
SOLUTON #3.
Finally, we also proposed to our client to use the Build, Lease, and operate (BLO) mechanism. This mechanism allows them to lease equipment, facilities, and technology that they need to operate their business from a third party and pay for it over a period of time. This also helps them get the facilities, equipment, and technology that they need without any initial investment.
Result
RESULT
The combination of these countertrade mechanisms allowed the client to launch their business successfully. They were able to secure contracts and generate substantial revenue through their Counter-Purchase and Joint Venture agreements. The build, lease, and operate (BLO) mechanism helped them have the facility, equipment, and technology that they need without any initial investment, which in turn allowed them to generate even more revenue.
RESULT
Within the first year of operation, the client’s business generated over $200 million in revenue, and they were able to secure multiple contracts with major oil and gas companies. Their success attracted other investors, and they started to receive multiple offers from big companies to buy their business.
HOW WE CAN HELP YOU
ACHIEVE SIMILAR RESULTS
FACING CHALLENGES?
We understand the challenges that come with launching a business in a highly regulated and capital-intensive industry like the oil and gas industry. That is why we offer our expertise and services as countertrade experts and consultants to help you achieve similar results as our client in the case study.
We can help you overcome the challenges of a lack of startup capital and industry experience by leveraging a combination of countertrade mechanisms that have been proven to generate cash revenue.
Counter-Purchase Agreements
We can help you establish a Counter-Purchase Agreement with a large, established oil and gas company. Under this agreement, you agree to purchase a certain amount of oil and gas from the established company in the future, while the established company agrees to invest a portion of the revenue generated from the future sale of the oil and gas back into your business now. This provides you with the capital you need to launch your business immediately.
Joint Venture Agreements
We can help you set up a Joint Venture agreement with a major oil and gas company based in the United States, United Kingdom, Australia, New Zealand, Canada, Singapore, South Africa, UAE, EU and 100+ countries. This agreement allows you to tap into the industry knowledge and contacts of the established company while also providing you with a source of revenue through your share of the profits generated by the joint venture.
Build, Lease, and Operate (BLO) Mechanism
We can also use the BLO mechanism to help you get the facility, equipment, and technology that you need to operate your business without any initial investment. This will allow you to lease the facility, equipment, and technology from a third party and pay for them when your business starts generating revenue over a period of time. You don’t pay a dime upfront before you start generating revenue.