To support a global oil industry heavily impacted by the drop in oil prices and the COVID-19 outbreak, SurplusHub has decided to offer industry players the opportunity to market their surplus oil and gas equipment for free at its global online equipment portal.
SurplusHub is a web-based, automated marketplace that connects buyers and sellers all over the world and enables them to negotiate and come to an agreement for buying and selling surplus oil and gas equipment.
“Selling surplus equipment helps oil industry players free up cash that is otherwise tied up in its balance sheets, while buyers can reduce their CAPEX requirements,” Per Kåre Liland, Founder and CEO of SurplusHub, said. “If we, through this initiative, can make a small contribution towards improving the situation for an oil industry under financial pressure, then it is worth it.”
“Many of our users have described it as an eBay for the oil industry,” Mr Liland added.
Several of the world’s largest oil services companies are utilizing the portal to divest redundant equipment and materials, thereby improving liquidity and unlocking tied-up values.
The initiative of allowing oil industry players to market their surplus equipment free of charge is valid until 31 August 2020. To ensure that all participants on the marketplace are serious and real, each company must go through a standard qualification process which includes credit approval through Dun & Bradstreet.
For SurplusHub, this initiative means that the company will take a financial loss on its subscription income in order to support the oil industry.
“Until end-August we will operate with a no cure, no pay-model, which means that we are in the same boat as the seller. We are both incentivized to try to sell the equipment, which will free up valuable liquidity for the seller and generate sales commission for SurplusHub,” Mr Liland said.