Category Archives: Oil and Gas

Nigerians Can Now Sue Shell In The UK For Oil Pollution

Nigerians can sue Shell in English courts for damage to communities caused by oil spills in the Niger Delta, the UK’s Supreme Court said on Friday, allowing the communities to bring their claims for compensation and clean-up in UK courts.

The Supreme Court ruled in favor of the Ogale and Bille communities who have contended that Shell should be held liable for the oil spills under the supervision of its Nigerian subsidiary SPDC.

The UK Supreme Court overturned a split decision of the Court of Appeal and held that the two cases brought by the Ogale and Bille communities are arguable and can proceed in the English courts.

The Supreme Court ruling adds another precedent for oil companies who can be sued in their domicile for oil spills and other harm to communities in other countries.

Last month, The Hague Court of Appeal ordered Shell to compensate Nigerian farmers for two oil spills in the country 13 years ago, in the first lawsuit in which a company has been held liable in the Netherlands for its actions abroad.

Shell hasn’t argued that the oil spills did not happen, but has always said that the spills happened in communities with rampant oil theft and infrastructure sabotage.

“Regardless of the cause of a spill, SPDC cleans up and remediates. It also works hard to prevent these sabotage spills, by using technology, increasing surveillance and by promoting alternative livelihoods for those who might damage pipes and equipment. Unfortunately, such criminal acts remain the main sources of pollution across the Niger Delta today,” a spokesperson for Shell said, as carried by Sky News.

Persistent issues with theft and sabotage in the Niger Delta could prompt Shell to take a hard look at its operations onshore Nigeria, the supermajor’s chief executive Ben van Beurden said last week.

Daniel Leader, a partner with law firm Leigh Day representing the Nigerian communities, said, commenting on Friday’s ruling:

“This Supreme Court judgment gives real hope to the people of Ogale and Bille who have been asking Shell to clean up their oil for years. We hope that now, finally, Shell will act. But it also represents a watershed moment in the accountability of multinational companies.”

Militants attack shipyard in Akwa Ibom over failure to pay N20m settlement

Suspected militants on Monday attacked facilities at the new Norfin Offshore Shipyard located at the boundary shoreline of Ikot Ukpong in Oruk Anam Local Government Area of Akwa Ibom State.

This followed the company’s alleged inability to allegedly settle them with the sum of N20m.

The attacks, it was gathered, led to the postponement of the commissioning of the shipyard initially billed for January 23, 2021 to January 30, by the Governor Udom Emmanuel

The armed men reportedly arrived at the yard at about 5am, shot sporadically to scare off security workers around the site before unleashing their explosives into the multimillion naira dredging facility of the company.

Chairman of the facility, Engr. Iniekong Charles Udonwa, who briefed newsmen at the site, condemned the damage done to facilities at the shipyard by the suspected militant group from Ogoni part of Rivers State.

According to Udonwa, “they said we cannot start any business with the government of Akwa Ibom without settling them.

“They kept telling our staff to tell the government of Akwa Ibom to reach out to them since they are in charge of both Rivers and Akwa Ibom States. Where do they expect me to get N20m naira from to give them after destroying our machine worth N60 million?”

He said he felt discouraged and demoralised by the incident adding that he was contemplating taking his investment elsewhere.

“The investment was borne out of my desire to contribute to the development of the State by providing employment opportunities for her teeming youths.

“At the last count, over 100 staff are working at the Shipyard with 4 of them from neighbouring Rivers State.” He said.

Engr. Udonwa appealed for a prompt intervention from the State government to forestall a recurrence of the ugly incident.

He however said the decision to postpone the date of the launch was regrettable and apologize for the inconveniences.

$1.1bn deal: Elumelu’s firm buys Shell, Total, ENI stakes in oil block

Three international oil companies operating in Nigeria have sold their combined 45 per cent interest in Oil Mining Lease 17 and related assets in the Eastern Niger Delta to TNOG Oil and Gas Limited, an integrated energy company founded by Mr Tony Elumelu.

Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited assigned their interests of 30 per cent, 10 per cent, and five per cent respectively in the lease to TNOG Oil and Gas.

SPDC announced in a statement on Friday the completion of the sale of its 30 per cent interest in OML 17 and associated infrastructure to TNOG Oil and Gas for a consideration of $533m.

The oil major said the completion followed the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.

TNOG Oil and Gas is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, both of which have Elumelu as their chairman.

“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.

The company said it was committed to transfer OML 17 in an orderly and responsible manner to the new owner, which would help to provide a sustainable long-term plan to unlock its full potential.

“As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for over 60 years and remains committed to a long-term presence here,” said the Managing Director of SPDC and Country Chairman of Shell companies in Nigeria, Mr Osagie Okunbor.

Heirs Holdings said in a statement that TNOG Oil and Gas would have sole operatorship of the asset.

It described the transaction as one of the largest oil and gas financings in Africa in more than a decade, with a financing component of $1.1bn provided by a consortium of global and regional banks and investors.
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It said the deal also involved Schlumberger as a technical partner and the trading arm of Shell as an offtaker.

OML 17 has a current production capacity of 27,000 barrels of oil equivalent per day and, 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential, according to the statement.

The Chairman of Heirs Holdings, Elumelu, said, “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs.

“The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.

“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.”
Elumelu thanked Shell, Total and ENI for the professionalism of the process, the Federal Government, the Ministry of Petroleum Resources, and the NNPC for the confidence placed in the company.

‘Don’t provoke us by marginalising Edo indigenes in NDDC board appointments’-Edo Indigenes

Edo Progressive Indigenes Association (EPIA), otherwise known as Edo Indigenous Movement Worldwide (EIM) has warned the Niger Delta Development Commission (NDDC) against alleged plans to marginalise the state in its appointments.

EIM in a message said Edo indigenes deserve to get choice appointments, as a result of the state’s contributions to the oil sector.

The statement, signed by the Indigenous leader and founder of the group, Chief (Dr) Bishop Omogiade Enoyiogiere Edokpolo, said that Edo is an active member of the NDDC, having the largest gas reserve in West Africa, apart from its numerous crude oil reserves across the state.

He stated: “It will be tantamount to calumny if the stories we are hearing is true, that our Indigenes are being systematically begging denied positions we ordinarily deserve. For the records, Edo is an active member of the NDDC, having the largest gas reserve in West Africa, apart from its numerous crude oil reserves across the state. Edo people are therefore qualified to play a major role in the community development commission.

“No one should take us for granted because of our peace living nature, and try to take away our rights and give it to another. We will fight it, we will resist it, and we will get back what belongs to us.

” We have been marginalised by the NNPC, and the oil giants, and because of our demure nature, its given that we cannot act. That is far from the truth.

“The days of darkness is over. The days of marginalisation is over. The years of neglect of our communities and people, despite our numerous contributions to the wealth of the country is over.

“Those in charge must ensure that the right thing is done or else, expect our response in a way they will not like at all. Our peaceful nature must not be mistaken for cowardice”, Edokpolo said.

Illegal refinery: Gas explosion claims three lives in Bayelsa

Three teenagers have reportedly died at an illegal refinery camp located between Ibelebiri and Otuegue 2 communities in Ogia Local Government Area of Bayelsa State, following a gas explosion.

Several others were said to have suffered varying degrees of injury during the incident. The deceased were identified as Victory Friday, Endurance Glazio and James Abaye.

The incident, Vanguard learned occurred on Thursday at about 11 pm at the illegal refinery camp popularly known as Kpo-fire camp tucked away in the thickset of deep swamp.

The lads were said to be working at the usually risky venture when one of their colleagues providing security at the camp attempted to lit a cigarette which caused the explosion.

Saturday Vanguard recalled that no fewer than 50 persons were burnt to death in similar circumstances sometime last year at an illegal refining camp within the Ogbia axis of the state.

Incidentally, the area is host to one of the oil and gas logistics base owned by one of the oil majors with heavy military presence.

A community source who spoke anonymously said “the camp has been existing for about six years now. And it would surprise you to know that the camp is just by the Igbogene-Otuasega axis.

“There is a security post manned by police and after the camp, you have the Kolo Creek flow station which is also manned by soldiers yet these boys still operate freely.

“In fact, a day after the fire incident, the ones that escaped the fire went back to camp to continue cooking crude again when youths from Oruma community where one of the deceased comes from went there and stopped them.

“You know that in the process of refining, they only refine petroleum motor spirit, diesel and kerosene.

“Because their method of refining is crude, they leave a lot of gas in the air. So one of their colleagues providing security around the camp struck a match stick trying to lit a cigarette and the next thing was an explosion.”

When contacted, the state Police Public Relations Officer, Asinim Butswat, simply said there was “no report of such incident.”

Also attempts to reach the Public Relations Officer of the Nigerian Security and Civil Defence Corps(NSCDC), Solomon Ogbere for comments proved abortive as his mobile line was not going through.

Senator Dr Ifeanyi Ubah Has Nothing to Do With Workers Dispute in Capital Oil Last Week

Contrary to news making the rounds that the Senator representing Anambra South Senatorial District is somehow involved in the skirmishes amongst his former workers that occurred in the premises of the company last week.

It is imperative to set the records straight in order to avoid falling into the hands of political detractors who are hellbent on misleading the public.

The former workers of the company in the past few months has been involved in negotiations with the management of the company to find closure to their situation since the illegal actions by Amcon that affected their work , remuneration and welfare for some years.

In line with it’s resolution to pay off the workers, the company
had several meetings with its workers and reached an agreement with them on a six months severance package and has commenced making the payments to the workers that signed the resolution, while this was going on seamlessly , some junior workers started illegal collection of fees
(6k each) amongst the workers which gave rise to the fracas and the security agencies were quickly brought in to calm the situation and restore peace .

It was purely a dispute among the former workers and it is wrong for anyone to claim that Senator Ubah sent thugs to attack workers

What possible gain does the Senator stand to garner from a crisis amongst his former workers who were in the process of receiving their severance payments from the new management of the company since he stepped aside from direct management of the company to contest for Senate ?

The Distinguished Senator has since not been involved in the direct management of the company and one wonders why this politically induced attempt to associate him with the skirmishes that was immediately quelled as soon as it broke out by the company who brought in security operators and got the situation under control .

It is a known fact that the illegal intervention by Amcon in the company affected the day to day running of the company for years and in the process rendered many of these workers redundant and made them look elsewhere in search of daily bread

Suffices to put it on record that Senator Dr Ifeanyi Ubah is in court challenging the illegal actions taken against the company by the Asset Management Corporation of Nigeria

Those who are afraid of Ifeanyi Ubah will stop at nothing to pull him down .But as they continue to do their mischief the God Almighty has continued to lift him up.

Signed,
Kamen Chuks O
Head , Media and Strategic Communications to Senator Dr Patrick Ifeanyi Ubah

Oil spill: A’Ibom group demands N16.4bn compensation from NNPC

The Akwa Ibom Oil Producing Community Development Network has asked the Nigerian National Petroleum Corporation to pay the sum of N16.4bn being compensation for oil spills in some communities in the state.

The demand was contained in a letter addressed to NNPC Managing Director and signed by the organisation’s lawyer, Mr N. A. Williams.

The letter was copied Managing Director, Nigerian Petroleum Development Company Limited; the Managing Director, Sterling Oil Exploration & Energy Production Company Ltd; the Executive Secretary, National Human Rights Commission; the Manager, Cooperate Lands Management, and the Village Head, Ikot Ada Udo Community, Ikot Abasi.

According to the letter, the organisation for many years has been demanding compensation from Shell Petroleum Development Company and other oil companies due to the negative effects of hydrocarbon pollution (oil spills, gas flaring and toxic waste dumping by Exxon Mobil and gas leakages/emissions from corked and uncorked wells, especially those belonging to SPDC Ibibio I oil spill at Ikot Ada Udo and elsewhere in the state.

The letter recalled that “in the case of Ikot Ada Udo, SPDC Ibibio 1 oil spill incident first occurred in the year 1997. It re-occurred in 1999, 2004 and lasted till 2007 due to Ibibio 1 oil well head facility failure.

“The spills resulted in the discharge of remarkable quantity of crude oil into the majorly rural farmlands and water bodies in Ikot Ada Udo and adjoining villages in Ikpa Nung Asang Clan in Ikot Abasi L.G.A, Ibiaku/Ukpum Minya Clans in Mkpat Enin L.G.A and Abak Midim in Oruk Anam L.G.A.

“The spills drastically affected the ecosystem, wellbeing of the inhabitants and the environment.

“Sequel to this unfavorable development, the community Attorney consulted an Accredited Estate Surveyors and Valuers who carried out valuation of the damages caused by the said spill/gas emissions which is in the sum of N4,136,484,000.00 only for Ikot Ada Udo.

“The valuation for villages in Ikpa Nung Asang in Ikot Abasi L.G.A, Ukpum Minya/Ibiaku Clan in Mkpat Enin L.G.A and other SPDC’s host communities in Akwa Ibom State is N12,266,950,000.00 (Twelve Billion, Two Hundred and Sixty-Six Million, Nine Hundred and Fifty Thousand Naira) only, totaling N16,403,434,000.00.”

10 years of the Local Content Act: An operator’s appraisal – Ken Etete

The Nigerian Local Content bill received presidential assent on April 2, 2010.

The Act was to provide 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.

The Act states without equivocation that “(1) Nigerian independent operators shall be given first consideration in the award of oil blocks, oil field licenses, oil lifting licenses 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.”

10 years after the enactment of the Act, it seems fitting to appraise the Act and its enforcement from the perspective of an operator.
To fully understand what the Local Content Act means to a Nigerian entrepreneur working in the oil and gas ecosystem, we must retrace our steps to decades before the bill became law in 2010.

Our historical excursion will take us back to 1990 to a medical doctor called Professor Jubril Aminu, whose foresight and deliberate policy directions presaged in many ways what would become the Local Content Act 2010.

How did this happen? In November, 1990, Professor Aminu awarded oil blocks to 11 Nigerian entrepreneurs on a discretionary basis. He was convinced that Nigerians had worked long enough with the IOCs and gained enough requisite experience to run their own affairs.

That discretionary bid round gave rise to Queens Petroleum (OPL 135); Cavendish Petroleum (OPL 453); Consolidated Oil (Conoil) (OPL 113); Express Oil and Gas (OPL 74); Summit Oil International (OPLs 205 & 206); International Petrol Energy Co (OPLs 229 & 202); Paclantic Oil Co. (OPL 204); Inko Petroleum (Oriental Energy) (OPL 224);Ultramar Energy (OPL 227); Solgas (Nig) Ltd (OPL 226) and Atlas Petroleum (OPL 75). Chief Lulu Briggs was subsequently awarded an oil license bringing the number to 12.

That bid round signaled the beginning of serious indigenous participation in the oil and gas industry because before then the only indigenous player was Dr. Itsueli’s Dubri Oil which had come into being when Dr. Itsueli as Managing Director of Phillips Oil bought over a small field that was producing about 1,000 bopd at that time. Phillips felt the field was not worth their while from a commercial standpoint, so they decided to sell it. Dr. Itsueli formed a company, left Phillips and bought the Giligili fields. That was how Dubri came on stream in 1987, 4 years before Professor Aminu’s indigenization exercise.

The success of that exercise as seen today, most notably in Conoil, led to another exercise in 1999 under the Obasanjo regime when marginal fields were awarded to Nigerian entrepreneurs.

With Nigerians showing enterprise and capacity to run oil and gas companies, it was only a matter of time before a deliberate policy that would provide a framework for oil servicing companies would be made; thus privileging indigenous oil servicing companies and giving them a part of the lucrative pie hitherto enjoyed by the big international companies like Schlumberger, Haliburton and Baker Hughes.

Once the Coastal and Inland Shipping (Cabotage) Act, 2003 was signed into law, it was only a matter of time before the Local Content Act would come into effect and the rest is now history.

But it was not so simple. A policy of indigenous participation was only one half of the equation. Nigerian oil servicing companies needed to step up to the plate and prove they had the capacity to play in the big league and it was a case of preparation meeting opportunity for those already in the fray. The oil servicing business demanded expertise and experience as well as financial capacity and political will to make it happen.

The political will was provided by the establishment of the (NCMB), which was charged with the responsibility of managing the coordination, monitoring and implementation of the new Local Content law.

Century Group, where I administer and execute strategy has been in operation since 2002, were thus in prime position to demonstrate capacity to play in the new dispensation. 10 years down the line, Century Energy Services Limited, a member of the Century Group and others like Tecon Oil Services, Delta Marine Oil Services Ltd, Damagix Nigeria Limited, Ciscon Services, Chrome Oil, Denca Services, AOS Orwell, Petrok Oil and Gas, Tricon, Maerlin Ltd, etc., has demonstrated that Nigerian companies can provide bespoke and world class oil servicing support to the industry.

A recent news report with the caption – “Nigeria saves $2bn on LNG Train 7 through Local Content development” and quoting Mr. Simbi Wabote, Executive Secretary, (NCDMB) was the trigger for this rumination. The piece noted that Nigeria has saved “$2 billion on Engineering Procurement and Construction (EPC) contract for Nigeria LNG Train 7 Project” through implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

This is great news for an industry that is creating job opportunities, fostering economic prosperity and halting capital flight as well as ample demonstration of the Nigerian spirit of enterprise.

The value creation and exchange that companies like Century Group, PFL Engineering, First Marine, IGPES Gas & Power have been able to contribute using local resources is phenomenal. The capacity, experience and aggregate assets that are now owned by indigenous companies proves how far the local content policy has come.

Ken Etete, Group CEO of Century Energy writes from Lagos.

Nigeria: Days of Crude Oil Are Numbered – Govt

STRONG indications emerged Monday that hardship looms in Nigeria following the nation’s over-reliance on oil as the Federal Government has raised the alarm that the days of crude oil are numbered.

According to the Federal Government, it has become imperative for Nigerians to start making effective utilization of its oil wealth when it matters most before the commodity becomes worthless.

Speaking Monday in Abuja at an interactive meeting with the leadership of the National Assembly, Minister of State for Petroleum, Timipre Sylva cautioned that based on a forecast in the global oil industry, oil will in the next 20 years become less relevant in the global energy mix as the world looks beyond oil and seeks alternative sources.

The meeting, which was presided over by the President of the Senate, Senator Ahmad Lawan, with the Speaker, House of Representatives, Femi Gbajabiamila and other leaders of the National Assembly in attendance is aimed at discussing the details of a draft copy of the Petroleum Industry Bill(PIB).

Sylva who pleaded that Nigeria should make use of the best of the remaining days of the relevance of petroleum in the global market, however, sought the cooperation of the National Assembly for speedy passage of the Petroleum Industry Bill ( PIB) forwarded to both the Senate and the House of Representatives.

The Minister who spoke on the intendment of the bill said that having wasted 20 years in putting in place required laws for the regulation of the oil industry, the country needs to quickly pass the PIB to make the best of investments from the sector before 2040, already forecasted for 50 per cent loss of relevance of crude oil in the global market.

The Minister said: “It is quite unfortunate that since the year 2000 when attempts were made to come up with a draft copy of PIB, to 2007, 2009 and 2012 when draft bills were submitted to different sessions of the National Assembly by the executive arm of government without passage, up till 2018 when the legislators came up with one; that we are yet to put on the ground required laws for effective regulation of the oil industry.

“Twenty years have been wasted in putting the laws in place for a sector that has 20 more years of full relevance going by forecasts already made.

“Forecasts in oil industry circles indicate that oil will play less and less role in the global economy.

“Specifically, by the year 2040 which is 20 years away, the relevance of oil in the global economy will reduce by 50 per cent”

According to Sylva, the PIB as drafted and passed to both Chambers of the National Assembly, if expeditiously considered and passed, will serve as the foundation of investments, adding that one of the central aims of the bill, is to make Nigeria an attractive investment destination.

He warned saying, “The days of oil are numbered; deposits of coal did not run out before the world moved away from it. Today the world is talking about alternative energy and we should also move we should take advantage of making hay while the sun shines.”

Earlier in his opening remarks, the President of the Senate, Ahmad Lawan, said that though the PIB seemed to be jinxed since 2007 and 2019, the fresh effort will surely see the light of the day, adding that it is difficult to put a time frame on when the jinx would be broken through the passage of the bill because details of its contents must be understood and thoroughness applied in its consideration.

Lawan who disclosed that President Muhammadu Buhari’s communication will be read today said that the Ministry must be around to educate the National Assembly on the content of the Bill, adding, “the essence of this meeting between the leadership of the National Assembly and officials of the Ministry of Petroleum and NNPC is to discuss the essence and focus of the Petroleum Industry Bill that has been sent to the National Assembly about two weeks ago.

“We announce that the Bill is now in the National Assembly even though it is not before the National Assembly. By tomorrow when the letter of transmission is read on the floor of the Senate and House of Representatives, we will know what it is the Bill.

“The essence of this meeting is for us to understand what is in the Bill. That is the essence and purpose of the meeting.

This is just for us to interact with you on the content of the Bill so that we have some first-hand information, understanding, and idea of what is in there and of course from there the interaction will continue maybe at another level with our committees for the processing of the Bill by the National Assembly leading to its eventual passage by the grace of God.

“The PIB is said to be jinxed. Actually for a long time, roughly from 2007 to 2019, it was either the Bill was sponsored by the executive and not passed by the legislature as was the case in 2007 and 2011 in the 6th and 7th Assembly.

“In the 8th Assembly, the legislature sponsored the Bill by breaking it into three Bills which were passed but there was no assent.

Now the Bill is an executive Bill sent to the National Assembly. The two chambers promised even during our campaigns that we want to break that jinx.

We want to see an oil industry in Nigeria that is properly regulated and that does not only sustains the investments we have but attract even more investments. We want to see an oil industry that is very competitive and oil resources that are beneficial to Nigerians.”

Speaking in the same vein, the Speaker of the House of Representatives, Hon Femi Gbajabiamila, said that though the bill will be considered and passed speedily, thoroughness will not be sacrificed.

Gbajabiamila said, “Oil represents the livewire of our Nigeria’s economy, making the PIB the most important piece of legislation that will come out of the 9th National Assembly in months or years to come.

“We will pass the bill speedily, but not sacrifice thoroughness at the altar of speed. We have assembled a crack team of legislators who are versed in the workings of the industry.”

Vanguard

6 top oil servicing companies in Nigeria. Number 4 will shock you!

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.

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:
Established in 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 services company 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.