By Sebastine Obasi

Service providers in the oil and gas industry should learn how to cut costs in the face of dwindling resources in the sector, if they desire to remain afloat.This is as the Nigerian National Petroleum Corporation, NNPC, said it is committed to promoting local capacity in the sector. The Group Executive Director, Engineering and Technology, NNPC, Mr. Adebayo Ibirogba, who said this during a facility tour of Kaztec Engineering Limited fabrication yard, at the Snake Island, Lagos, added the measure became necessary to enable oil companies get maximum value for funds utilised in funding projects.

.

“The prices of goods and services have to be reviewed downwards. This will enable only very competent service providers to compete for projects,” he said. He noted that there was a great need for companies to make judicious use of resources, especially because of the poor state of the international oil market. Ibirogba stated that Kaztec Engineering is one of the indigenous clients of the Corporation, stressing that the fabrication yard of the company is a model of excellence.

The GED also said that the Nigerian Content Act of the Federal Government provides a veritable platform for indigenous companies to operate on a level playing field with other International Oil Companies, IOCs, in Nigeria. According to him, the NNPC has been at the forefront of those supporting and encouraging the attainment of the local content target for the industry as it has done in other sectors.

Ibirogba said investing in local content would give some advantage to local fabricators, adding that the Federal Government would ensure total encouragement of potential investors who want to invest locally. He said the Petroleum Industry Bill, PIB, before the National Assembly, when passed into law, would further promote the growth of indigenous participation in the petroleum sector.

Conducting the NNPC delegation round the premises of the yard, the Managing Director of Kaztec Engineering, Mr. John Niezner, said the company operates wholly in line with the Nigerian Content Act by engaging majority of Nigerians in all its welding and fabrication operations. He said most of the engineering designs and materials are locally sourced adding that the company’s operations contribute enormously to the country’s Gross Domestic Product, GDP.