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Oileserv proves local content is highly capable

Article - December 12, 2012
The oil and gas services firm has undertaken challenging projects which it has delivered on time and to client satisfaction
Since first setting up operations in 1992, Oilserv has enjoyed a steady and sustained rise to prominence as one of Nigeria’s leading oil and gas service sector companies.

Focusing its efforts on offering pipeline and facility services to both multinational companies and local oil and gas firms, the company’s ability to meet deadlines and offer a wide range of services has ensured demand has matched the firm’s high growth ambitions.

“Oilserv itself worked almost exclusively for Shell in the early years, handling a lot of their major projects,” explains Emeka Okwuosa, Managing Director of the company. “By 2000 we had already executed a 12-inch line for Shell, from Elelenwo West to Agbada 1. That was one of the first projects of its kind built by a Nigerian contractor.”

Today, the company has the capability to weld and lay oil and gas pipelines ranging from 2-inch diameters to 56-inch across all manner of terrain.

The firm recently constructed a 128km pipeline in southern Nigeria, in addition to a 13km-long 8-inch high density polyethylene (HDPE) pipeline for the Lagos State Government of Nigeria. From horizontal directional drilling (HDD) to the creation of an extensive welding and fabrication plant, the firm has positioned itself as an experienced operator with wide-ranging capabilities in all circumstances.

“From 1999 we maintained the entire Shell pipeline system, even at the height of militancy when there were bombings and sabotage,” adds Mr Okwuosa. “We were the only company with the capacity to move into the swamp with all of the facilities, build cofferdams, salvage a 28-inch pipeline within a few days, have oil flow again, and restore the production of 120,000 barrels of oil per day.

“We also built the biggest manifold station in Nigeria, a 36-inch TNP manifold in 2001. We have also built gas delivery lines in the swamp, like the one we built for Global Energy, which was a 26km pipeline to evacuate the products of their gas stripping system.”

Recent developments in the Nigerian oil and gas industry have seen a more pro-active attempt to attract local firms into business. As an established company, the implementation of the Local Content Act in 2010 – which aims to increase the participation of Nigerian companies in the oil and gas industry – had little impact on Oilserv, but Mr Okwuosa is confident that the Act will improve the sector and attract further investment from both Nigerian and multinational firms.

“It has been very positive, and it is something that the current administration of President Goodluck Jonathan has done well in trying to finally implement. It is very positive, and the right way to go in terms of building capacity.

“It is not just about empowering indigenous companies, but building the required capacity that is sustainable; the ability to have Nigerians coming into the service industry in a serious manner, and be able to offer credible and competitive services.”

The Act sets down a number of regulations, including a 1 per cent levy on contracts which is then invested in a development fund, while rules on the use of Nigerian-manufactured equipment have also been invoked. In addition, the imminent Petroleum Industry Bill (PIB) aims to further improve the relationship between international oil companies (IOCs) and indigenous companies, as Mr Okuwosa explains.

“The PIB is long overdue as far as the concept is concerned. All of us in the oil and gas industry in Nigeria know that the regulatory system and laws under which we operate are very much outdated, and does not accurately represent the true position of things.

“I understand if there is apprehension in the beginning, but obviously there will be a win-win situation for it to work. As far as I am concerned, the PIB is overdue for enactment and the earlier it is put in place, the better, to ensure the proper level of investment in the oil and gas industry.”

A direct example of Nigerian firms working together is the recent commission from Oando PLC – a Nigerian oil and gas company – for Oilserv to build the longest gas transmission pipeline in southern Nigeria.

And as Mr Okwuosa explains, the 128km pipeline is an example of the expertise on offer and of what can be achieved by working alongside local partners to increase output and improve the sector as a whole.

“It is a success story for us, as well as for Oando,” he says. “I want the oil and gas industry to be so well-developed thanks to the work done by ourselves and others that Nigerians are seen to be capable of setting up their own companies, building capacity, developing people and systems that deliver full support for the oil and gas industry.

“This will, in turn, be able to build up businesses around this profile that will improve and increase the business outlook in the oil and gas industry for Nigerians.”


Benson Udenwoke
27/06/2013  |  2:16
100% of 1

I feel elated and happy each day of my life for the management and staff of OILSERV AND WORLDFOLIO. The company's daily progress and sustained growth around the world has been great. The company has helped enormously to change lives and enriched the economy of the countries where it is operating. I wish the companies, its managing director, the entire work force as well as its representatives around God protections and long life.
Benson Udenwoke is an Uncle to Rex Udenwoke living in the UK