Operators in the drilling industry have been tasked to embrace innovation and efficiency as rising energy demand is expected to spur the number of active rigs in the country.
Chairman, of the Nigeria chapter of the International Association of Drilling Contractors (IADC), Chuks Enwereji, who harped on sustainability in business through efficiency and innovation, stated that there were 17 active rigs in Nigeria, as of May 2022, with more rigs on the verge of commencing operations in the months ahead.
Drawing an inference from Gary Lawrence’s definition of sustainability, which sees the concept as a political choice and not a technical one, Enwereji, at a conference, urged players in the drilling subsector to pursue innovative ways to sustain the business.
Enwereji pointed out that despite the global challenges associated with the pandemic, in which Nigeria is not insulated, oil fields continue to show signs of recovery from the pre-2014 era.
Themed ‘Catalyzing Improved Performance for the Drilling Industry,’ the conference drew participants from across the globe. It harped on the future of Africa and the essential need to harness natural resources and entrench a sound future for the young generation.
“In Nigeria, we are prepared to take full advantage of the emerging super cycle, which analysts have described as a season for strong demand for energy.
“We are engaging the government of Nigeria for business-friendly policies and legislations and we are optimistic that with more encouragement from the government, loss licenses will be recovered and more rigs will come on board,” he declared.
The chairman, however, threw that challenge at other players on the continent to brace up for the emerging opportunities, partly energized from the Russia-Ukraine war.
Specifically, Enwereji highlighted the unrelenting determination of the IADC Nigeria chapter to dwarf all obstacles and remain in business
Enwereji called on governments across Africa to address security challenges and multiple taxes, describing the trend as unfriendly to business growth.
“Insecurity for personnel and equipment is worrisome and of great concern for management. Multiple taxes and unstable exchange rates are mitigating growth. These are regulatory challenges to those in government which must be addressed as quickly as possible,” he advised.
Enwereji noted further that climate changes are real and drilling contractors must develop fresh strategies through cost-effective mechanisms and robust corporate governance structure as well as clinical legal texture. He added that Nigeria has the potential to lead the global market.
Ote Enaibe, during a panel session themed ‘Well Design, Well Construction, and Well Control’, pointed out the differential in the current model of the drilling business.
He explained that contract tenure has significantly reduced to 90 days as against two years in which contractors are likely to expend millions of dollars in Blowout Preventer, BOP.
“So, there is a need to think outside the box and be innovative,” Ote cautioned.
Abioye Shokoya- Eleshin, Business Development Specialist, Aviam Offshore Engineering Company, who moderated the ‘Well construction Real-Time Optimization’ panel sued for the deployment of technology to accrue more value to the organizational structure. She added that management should play a key role by leading by example in the digitalisation process.
In his opening address, Opoku Ahweneeh Danquah, Chief Executive Officer, Ghana National Petroleum Corporation, GNPC, who represented the Energy Ministry noted that the timing of the conference was auspicious in view of the emerging and rapid developments in the oil and gas sector.
He noted that IADC has recognized its crucial role as a catalyst of the needed innovations and efficiency for the industry.
Danquah added that he envisaged higher energy demands and that the industry must brace up to the challenges.
“IADC demonstrated tenacity during the pandemic,” he said.
“The industry has raised its standard across the globe. But the industry must recognize the development of its local community and develop local manpower.
“In Ghana, we share information, ideas, as well as collaborate in resource sharing. That has made us stronger. That is what we do in Ghana. We, therefore, call on investors to invest in Ghana.”
