By Ayobami Adedinni
Nigeria first began producing oil almost 60 years ago and is today one of the world’s largest oil producers.
But for most of these years, the industry had been dominated by International Oil Companies (IOCs) which were kept in monopolistic positions because they possessed the financial clout and technical expertise that limited the involvement of indigenous firms in Nigeria’s largest export.
In order to deliver more value and achieve the growth that has been delivered, indigenous companies have had to address two key deficits, specifically, the long-held lack of technical and financial expertise to deliver projects independently. That glass ceiling has been well and truly smashed in the last decade.
The signing of the Nigerian Content Act on April 22, 2010 by President Goodluck Jonathan marked the beginning of the turn around in the activities of indigenous contractors in the Nigerian Oil and Gas industry.
The implementation of the NCDMB, according to stakeholders, has increased the number of technology-driven workspaces and capacity building by indigenous contractors who originally could not compete with foreign contractors.
Indigenous firms are no longer content with being minority partners and have started to develop the financial resources and technical expertise to make them formidable forces within the industry – bolstered by their ability to own and operate their own assets independently or in favourable partnerships with international companies.
This shift has resulted in an over 100 percent jump in the percentage of Nigeria’s oil production which can be attributed to indigenous players and equally, significantly increasing the contribution that indigenous companies make to the national economy.
Indigenous companies have purchased billions worth of assets from firms such as Eni, Shell, Chevron and Total in the past decade.
Nigeria has the opportunity to establish one of the largest and most value-creating domestic upstream industries in the world if it can continue to domesticate the technical skill and the financial resources and expertise that have emerged over the last decade.
But the industry is fragile, and its emergence has come at a time of almost unprecedented volatility in global oil markets.
The skills gap in the oil and gas sector has been a major obstacle to its growth. It is this human capital that builds, maintains and services these assets and delivers value. Investing in the development of sector-specific skills is an essential component of sustainable growth and major steps forward have been taken over the last decade, success that must be built upon, and not reversed.
Hence , it is for this reason that the Petroleum Technology Association of Nigeria (PTAN) which is an association of indigenous oilfield service companies in the upstream and downstream sectors of the oil industry, have consistently attested to the contributions of the local content law in boosting capacity of indigenous operators for the growth of the sector.
During the 2018 event delegates had the opportunity to participate in business, technical and special focus sessions, and hear from prominent industry speakers and representatives from both the regional and international oil and gas community
WAIPEC 2017 was the largest petroleum event of its kind in West Africa, as the city of Lagos welcomed in thousands of key regional stakeholders – plus leading international E&P firms and partners – to develop and drive new business across the sector.
It featured in excess of 25 technical and strategic conference sessions, driven by an esteemed steering committee click here for full details.