Can you provide a brief overview of Oilserv and its role in the Nigerian oil and gas industry?

Oilserv is an EPC (Engineering, Procurement, and Construction) company that manages infrastructure projects from inception to completion. Our comprehensive range of services includes concept design, front-end engineering design, detailed engineering design, procurement, construction, installation, and commercialization. We have established strong partnerships with international oil companies such as Shell, Total, Agip, and NLNG. Additionally, we provide vendors and contractors to NNPC (Nigerian National Petroleum Corporation), making us the leading EPC company for pipelines and facilities within the organization. We have also undertaken projects for downstream players, such as the construction and commissioning of Oando Gas and Power’s 128 km x 18-inch gas transmission system, which stands as the single longest pipeline in the country.

To what extent is Nigeria tapping into its vast gas resources?

Nigeria possesses immense potential to diversify its economy beyond crude oil, with its gas resources ranking among the top 10 globally. However, the country has faced challenges in fully exploiting these resources. Efforts to commercialize gas began under the NLNG (Nigeria Liquified Natural Gas) act. Over the years, there has been a growing push from the government to promote domestic consumption of gas resources. However, the lack of infrastructure for processing and transporting gas throughout the country remains a significant obstacle. Approximately a decade ago, the Nigerian government introduced the Gas Master Plan, aiming to enhance the availability of gas as a power source within the country. A crucial component of this plan is the development of strategic pipelines, such as OB3 (Obiafu-Obrikom-Oben) and AKK (Ajaokuta-Kaduna-Kano).

The Gas Master Plan strives to reach resource-rich areas and transport the gas to a central hub, from where it can be dispatched to areas with demand. The OB3 pipeline, for example, is a 48-inch gas transmission system with an associated gas treatment plant capable of handling up to 2 billion standard cubic feet of gas per day. Oilserv has been entrusted with building phase B of the OB3 pipeline system, and we have already achieved mechanical completion, currently progressing through the pre-commissioning stage.

Another significant project is the AKK pipeline, a 614 km transmission system. Oilserv has been selected to execute the first segment of the pipeline, approximately 304 km long, spanning from Ajaokuta to Abuja. We are currently in the engineering phase, and our involvement as an indigenous company highlights the substantial strides we have made in a domain previously dominated by multinational corporations.

Can you provide insights into Oilserv’s performance and growth over the years?

Oilserv initially started as a spare part player, primarily focused on emergency pipeline repairs. However, we quickly transformed into a construction and the first indigenous EPC player in the market. Our growth strategy is founded on integrating ourselves across the value chain and investing in human capacity development.

We recognize the significance of our workforce and take pride in developing human potential. Through our Graduate Training Scheme, students undergo an intensive training program and gain exposure to various operational areas. Another crucial element contributing to our growth is the adoption of technologies. Over the years, we have prioritized the deployment of technology to enhance our work performance. Traditional pipeline construction methods often rely on manual welding, resulting in lengthy project completion times. Oilserv has been at the forefront of introducing automatic welding systems to the country. By leveraging technology, we can lay pipelines at depths inaccessible to vandals or thieves, significantly improving efficiency and lead times.

What are Oilserv’s objectives moving forward?

Oilserv is committed to innovation and delivering exceptional results to our clients. We will continue to embrace and deploy technologies that enhance efficiency and maintain our competitive edge. As the market leader in our area of operation, we aim to sustain our success and further expand our market share. Within the next three years, we envision an even more diversified Oilserv, integrated across the value chain to a greater extent than today. Each signature project we undertake propels us to the next level of industry capacity, laying the foundation for our ongoing transition. Additionally, we anticipate becoming increasingly active beyond the borders of Nigeria in the years to come.