Ten years ago, on the 2nd of April 2010, the Nigerian Local Content bill received presidential assent and thus became a law to provide for a framework that would guide indigenous content and participation in the Nigerian oil and gas industry. The law also provided for the establishment of the Nigerian Content Monitoring Board (NCMB), charged with the responsibility of managing the coordination, monitoring and implementation of the new local content law.
Why did Nigeria need a local content law? The quick answer is that the Nigerian oil and gas industry had matured with a thriving marginal field regime run by Nigerians and it was time for the service industry to open up to Nigerians as a means of further increasing indigenous participation in the sector by prescribing a minimum threshold for the use of local services and materials while promoting technology and skill transfer to Nigerians in the industry.
To put this in context, before the coming of the local content act, the oil services industry was almost the exclusive preserve of the top 3 – Schlumberger, Haliburton and Baker Hughes with a handful of Nigerian companies providing ancillary support services.
The act however states that “(1) Nigerian independent operators shall be given first consideration in the award of oil blocks, oil field licences, oil lifting licences and in all projects for which contract is to be awarded in the Nigerian oil and gas industry subject to the fulfilment of such conditions as may be specified by the Minister. (2) There shall be exclusive consideration to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute such work to bid on land and swamp operating areas of the Nigerian oil and gas industry for contracts and services contained in the Schedule to this Act.
Ten years after the signing into law of the act, a consideration of the oil services industry will indicate the emergence of thriving, technologically savvy and financially stable Nigerian companies treading where only foreign companies dared to tread many years before. These companies have become veritable local content champions and this piece focuses on the Top 6 in no particular order.
- AOS Orwell: The company has over 30 years’ experience in oil well construction, Process Automation, instrumentation & control; OCTG, Conductor Casing & Machine Shop Services in Nigeria. Formed in 2011 as a result of a merger between Africa Oilfield Services (AOS) and Orwell International Limited, the company has grown her capacity and is now offering numerous products and services. The company is able to deliver based on its unfettered access to the world’s best technology through long-standing relationships with world class OEM’s such as Emerson, Tercel, EATON, 3P, and others, as well as robust local content expertise gained through its investment in Nigeria.
- Tecon Oil Services: A wholly indigenous company, Tecon was originally set up in the Isle of Man as a company controlled by an American Investor group through Alliance Oil of Houston, Texas. Tecon became a 100% Nigerian Company through acquisition in 1991, whilst still retaining its Isle of Man identity. Tecon is a leader in the business of Oilfield Equipment Rentals and Provision of such specialized services as Oil Well Fishing, Casing and Tubing Running, Oil Well Snubbing/Hydraulic Work-over Services, Machine shop/Tool fabrication and Redressing e.t.c.
- Ciscon: Establishedin 1986, Ciscon now operates from offices in Port Harcourt, Warri, Lagos and Houston. The company provides geological, engineering, training and consulting services in addition to its core oilfield service lines. Ciscon’s Quality Management System conforms to ISO 9001:2008, ISO TS 29001, API Spec Ql having been duly certified by the American Petroleum Institute (API).
- Century Energy Services Limited (CESL) is Nigeria’s leading oil and gas service company and has operated in Nigeria and the West African sub-region, since 2002. CESL, a member of the Century Group is one of the largest providers of O&M services, executed in conjunction with partners in the Gulf of Guinea. CESL provides training and manpower services as well as community liaison and logistics support for FPSO operations and other IOCs operating in the Niger Delta.
A true Local Content Champion, Century Energy Services Limited is the only indigenous company in Nigeria that wholly owns two (2) FPSOs. CESL is expanding its operations beyond the West African Coast while carving a niche in the global market. The company offers a range of services to the oil and gas industry in Nigeria including: Operation and Maintenance (O&M) of offshore production and storage facilities including EPS, FPSO MOPU, FSO and Drilling Rigs/Jack up; Operation / Maintenance of Flow Stations; Drilling / Drilling Support Services; Field Development Solutions; Engineering, Procurement, Construction and Installation (EPCI) of Oil and gas facilities; Mooring and Installation; Chartering and Management of Offshore Support Vessels, Anchor Handling, Tug Supply Vessels, Platform Supply Vessels, Utility Vessels, Accommodation Barges, Fast Support Intervention Vessels, Crew boats, Procurement and Materials Supply services, Offshore and Onshore Logistics Support Services, Training and Manpower Development, Community Affairs, Bunkering Services and Tank Farm Operations.
- Hydroserve: This indigenous oil servicescompany began operations in the year 2000 in the oil rich Niger Delta area of Nigeria. The company was founded as a result of market demand for a nimble and innovative service provider capable of quality and superior service delivery to the oil and gas industry. Hydroserve has morphed from an indigenous company in Nigeria into an international company with subsidiaries in the West African region. Committed to the highest standards of safety, efficiency, ethics, and social responsibility, Hydroserve has demonstrated itself as a serious organization through its investment in personnel, equipment, facilities, as well as appropriate business operating systems, processes and procedures.
- Petrok Oil and Gas Services Limited: A project support company registered in 2012, Petrok Oil and Gas Services Limited focuses on reducing clients’ risks by providing Manpower Supply and Development, Equipment/Material Supply Services, Marine Vessel Supply and Offshore Operations, Heavy Duty Equipment Supply & Maintenance and Technical Consultancy Services. Petrok Oil and Gas Service Limited provides services to clients in the Oil & Gas industry, Energy, Engineering and others. Petrok Oil And Gas Services Limited focuses on ensuring that clients get value for their money by leveraging on their comparative advantage which enables them save money and time by outsourcing needs to a highly efficient and skilled team.