oil and gas

Ramping Up In-country Capabilities in Oilfield Services Sector

July 12, 2022

Nigerian companies are increasingly proving their competences and capabilities in delivering highly technical projects to support the operations of the oil and gas industry owing to the enactment and robust implementation of the Nigerian Content Act. This has resulted in the rise of the number of indigenous companies participating actively in the nation’s oilfield services, writes Peter Uzoho.

u2028u2028There is no better way to explain the gains of the Nigerian Local Content Act and its implementation than to look at the rate at which indigenous Nigerian companies are speedily winning project awards, timely execution of those projects and the level of quality job delivery.u2028u2028Aside that, the volume of direct and indirect jobs created in the course of projects’ delivery is also a major indicator of the many wins of the Act. u2028u2028Decades ago, total retention of oil and gas projects in Nigeria accounted for a paltry 5 per cent, and this resulted to massive capital flight running into billions of dollars, deprivation of opportunities for local firms and sundry other costs.

But today, with the advent of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in 2010, followed by the robust implementation of the Act, the story is gradually changing for the better.

Total jobs retention in-country now stands at 42 per cent and the Local Content agency has set its sight on increasing the total in-country retention to 77 per cent by the year 2027, five years from today.

However, the latest pointer to the growth of the capacity and capabilities of indigenous oilfield services firms is the recent delivery of the high pressure fuel gas treatment skid fabrication contract for the Shell’s part of the Assa-North-Ohaji-South (ANOH) Gas Processing Plant in Ohaji/Egbema Local Government Area of Imo State, by Nivafer Engineering and Construction Limited.

u2028THE ANOH PROJECTu2028u2028Recently, Nivafer showcased such rising competences and capacities amongst the indigenous firms in the oil services sector when it successfully delivered the high pressure fuel gas treatment skid for the Shell’s part of the ANOH Gas project. u2028u2028The contract was awarded to the company by the Shell Petroleum Development Company (SPDC) Limited, which is jointly building the two-sided gas development project with Seplat Energy -Nigeria’s only oil and gas company quoted on both the Nigerian and the London Stock Exchange.

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