By Emeka Anaeto,
Nigerian Content Development and Monitoring Board, NCDMB, in conjunction with leading international oil companies, IOCs, has expressed confidence in the capacity of indigenous companies to deliver global standards in oil field engineering services.
This came with last week’s facility tour of a leading Nigerian integrated petroleum services company, Kaztec Engineering Limited, where the management disclosed that the company has established a world-class technology and business model that could drive costs in Nigeria’s upstream sector down by over 60 per cent.
Executive Secretary of NCDMB, Mr. Patrick Obah, stated that the tour was a remarkable experience that demonstrated the inherent capacities in Nigeria’s oil industry that competes favourably with other service providers globally.
He stated that with the facilities at the company’s fabrication yard it has the organisational capability and capacity to deliver large, complex offshore and onshore projects totally within Nigeria
He also expected the IOCs, both those at the tour and all others would take advantage of the cost-effective and high quality infrastructure to have their oil exploration and production activities delivered at cost-effective and efficient rate.
He expected the industry to evolve into a more domesticated operation that would create more economic value to the country.
On the issue of reluctance of most IOCs in patronizing indigenous engineering firms, he said that the challenge is not limited to just the IOCs but all other industries are expected to have the required local content in their operations.
Earlier the IOCs represented at the tour who, hitherto were not aware of the capacities at Kaztec, expressed satisfaction at the level and quality of activities at the Kaztec fabrication yard in Lagos, adding that the business model of the company was such that could enhance the operations of the IOCs in Nigeria.
According to them, the technology and business model of Kaztec were appropriate at present situation in the upstream oil and gas sector where low oil price was wiping out profit margins, thereby requiring technology and services that guarantee both quality and cost savings as well as shortest delivery time-lines.
Describing the Kaztec business model as “a game changer” they also noted that this would change the status quo of high cost, low performing service providers in Nigeria, particularly in a low oil price era, while encouraging competition.
Some of the IOCs represented at the facility tour include Addax Petroleum, Shell Petroleum, Chevron, Exxonmobil among others.
Speaking on the profile of Kaztec, the Chairman, Mr. Emeka Offor, stated that the company has invested over USD600 million in procuring one of the best equipment in the world of oil engineering, procurement, installation, construction, and management within the first phase of its project roll-outs adding that more investments are continuing in the subsequent phases of its development.
According to him over USD1.2 billion would eventually be invested in the subsequent phases, which is expected to create over 2000 direct employment while enhancing service delivery in the upstream oil industry.
Kaztec has operated in Nigeria for over seven years delivering projects for IOCs, mainly Shell Petroleum and Addax Petroleum, and has built competences through training, technology and knowledge transfer to Nigerians.
The Engineering manager, Mr. Mike Simpson, listed the capabilities of Kaztec to include, in-house capability to deliver projects from concept to commissioning with lead and senior process, piping, mechanical, subsea, structural, pipeline, electrical, instrumentation, controls, safety, yard construction, offshore construction and commissioning engineers.
They also lead and drive third party support engineering houses across the full integrated delivery chain and drive outcomes.
The company, according to him, develops all CTRs and EDRs to a point where it pre-assigns all document names, man-hours and scope.