By Sebastine Obasi

MOST oil servicing companies that invested in capacity building are under tremendous pressure due to reduced patronage, said the Chairman of Petrolog Group, Dr. Vincent Ebuh.

Speaking at the award ceremony of the Petroleum Technology Association of Nigeria, PETAN, in Lagos, Ebuh also said that indigenous oil servicing companies face the challenge of low prices for services rendered to the International Oil Companies, IOCs.

Ebuh, who received the pioneer industry award for his role in championing local content in the sector, aligned with PETAN’s position that indigenous companies must review their strategies to survive the present economic climate in the country.

Also speaking at the ceremony, Chairman of PETAN, Mr Bank Anthony, observed that the global trend of crude oil price coupled with local factors such as pipeline vandalism and the general insecurity in Niger Delta region have significantly unsettled the industry.

According to him, the oil industry is bleeding and many PETAN members are suffering at an unprecedented level.

He stated: “Many PETAN members cannot even service their loans or pay salaries as at when due.” He noted that it is sad to lose capacities that took several years for the members to build.