Frequently Asked Question

Why have you choose the name “DALOL”?

The name “DALOL” is an Ethiopian name which clearly expressed our Brand Essence of being uniquely Ethiopian and that we are engaged in the energy business. Dalol is a source of energy. From branding point of view, the name is simple and easy to sink in the minds of customers. Besides, we also believe DALOL is a touristy place that should be promoted well.

Is Dalol Oil S.C. an exploration & production company?

Dalol Oil S.C. initially ventures into distribution of petroleum products, Fuels, Lubricants, LPG, Bitumen and other related products such as tyres, spare parts, car care products in Ethiopia. In its midterm plan, the company aspires to expand its presence into neighboring countries such as Sudan, Uganda & Kenya. In the long run, Dalol also aims to be engaged in the exploration and production of gas & petroleum in Ethiopia.

What is the size of demand for petroleum products such as fuels & Lubricants in Ethiopia?

Demand for petroleum products such as Fuels & lubricants is massively growing at an average rate of 10% over the last five years. As of 2009, the over all size of demand for fuels & lubricants amounts 2.5 billion liters and 25 millions liters respectively.

How many Oil Companies are currently operating in Ethiopia?

Currently, there are very few Oil Companies operating in Ethiopia. The current players are TOTAL,  National Oil Company (NOC), Oilibya, Yetebaberut Beherawi Petroleum S.C(YBP), Kobil Ethiopia, Nile Petroleum, Wadi Al Sundus (WAS) Petroleum Ethiopia, and TAF.  As compared to the neighboring countries, Ethiopia has less number of oil companies. A case in point is Uganda & Kenya where there are 30 Oil Companies in each country.

Why have major International Oil Companies such as SHELL, MOBIL & AGIP have left the Ethiopian Market?

There are two basic reasons why these multinational companies are leaving not only the Ethiopian market in Particular but also the African market. First reason is Safety. The stringent operational safety requirements such companies have has made their continual operation in the Africa market very difficult due to increased number of fatalities due to high degree of exposure and unsafe road conditions.

Second reason is “Shift in strategy” Most of the multi-national Oil Companies are engaged in both up-stream and down-stream business. When such companies compare exportation & production with the distribution business, the income from up-stream taker the lion’s share. Hence they have embarked on a strategy which they call “focus on upstream, profitable down-stream” As a result, they are divesting their resources from their down-stream business in Africa and expanding their investment into more profitable and emerging markets such as China, India, Indonesia etc.

What market Dalol unique from any other oil companies operating in Ethiopia?

There are two things that make Dalol unique from any other company operating in Ethiopia.
Dalol Oil is the first Ethiopian born Oil Company whose investment is open for the general public. What this means is Dalol is a unique company that is building massive & wide customer base upon its formation.

Dalol Oil is a company that would go way beyond the traditional distribution of fuel & lubricant products. The company would also be aggressively engaged in the distribution of non-fuels related products such as tyres, spare parts, car care products, car batteries etc.

I often hear the profit margin from fuels is very little. If so what’s the size of return on investment (ROI) from Dalol Oil S.C.? What is the pay back period?

Many get wrong when they look at the profit margin of fuels in isolation. Yes, the margin on fuels is little but Oil Companies are also engaged in distribution of other products such as lubricants, Bitumen, LPG & other highly profitable products. The company’s profitability as a whole encompasses income streams from all of the above product lines. As per the detailed financial feasibility, the average ROI from DALOL amount 30% without taking the income stream from other non fuels products such as tyre, spare parts, car care products, batteries etc. Pay back period for Dalol’s investment is approximately three years.

Land is expensive and scared resource in Addis Ababa. How is Dalol Oil going to find land for its fuel stations in Addis Ababa?

Dalol Oil has done a careful analysis on the location of its service stations. Dalol intends to build service stations along the five main exit roads from Addis Ababa.

In addition, the company also plans to build stations in strategic cities and towns where there is a significant amount of traffic flow.

The company is making lots of progress in securing all required plots to build it first phase stations.

What type (Brand) of lubricants is Dalol Oil considering to distribute in its network?

Dalol oil has carefully assessed different brand of lubricants in the international market.

What is the target date to officially resume operation of Dalol Oil S.C.?

The target date to officially resume operation is Sep - Oct 2011.

When is the closing date to finalize share offer’s made by Dalol Oil S.C.?

The closing date for Dalol Oil share offers is 31 Dec 2009.

Is investment on Dalol Oil S.C. limited to Ethiopia citizens?

No! Investment on Dalol Oil is open for both Ethiopian & Non Ethiopian Nationals.

What is the minimum requirement for Non-Ethiopia Citizens?

The minimum requirement for foreign investors in partnership with a domestic investor is USD 60,000.
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