Non-passage of PIB hurting indigenous service companies

The non-passage of the Petroleum Industry Bill (PIB) is hurting indigenous oil servicing companies as this has led to few jobs being available for them while many of them are contemplating laying off some of their staff.

International Oil Companies (IOCs), are holding onto investments because of the non-passage of the PIB. If this continues local oil servicing companies would not have jobs and consequently they might be forced to retrench their workers and this not good enough for a country wanting to develop in-country capacity and create jobs.

But reacting to this, Emi memebere-Otaji, managing director of ELSHCON Nigeria Limited said, the implication of the IOCs action is that local companies would have very few jobs to do.

“As an operators of oil service company, my company service the exploration and production (E & P) companies, adding that if they are not doing major investments because of the non-passage of the PIB, it simply means that his company or others will have fewer jobs.”

He said he believes that the national assembly would pass the PIB, stating that his company is investing more; buying more vessels; and bringing more equipment into its fabrication yards because he believes it would be passed.

“Look, few years ago, Nigeria was the only crude oil producing country in the whole of south of Sahara. Angola joined us later. But today, if you look at the map of Africa, almost every country bordering on the ocean is either producing oil or has hope to find oil even in East Africa – Kenya, Tanzania and others. What we are trying to say precisely is that it is obvious we have to compete now. We need the IOCs and they also need us.”

He said there will be a compromise and the PIB will be passed and investment will continue. But he however expressed worries that there are more competitors now as Angola is there; Ghana has come on stream; almost every country is there. Nigeria he explained have an advantage huge reserves, population and availability of infrastructure as a country which these countries do.

“So, while building capacity to take advantage of the opportunities that will be created by the imminent passage the PIB in Nigeria, are you also thinking beyond Nigeria in the nearest future.”

Already, most of the oil and gas service companies who mean business are already operating outside Nigeria. For example a vessel belonging to ELSHCON Nigeria Limited said is going to Angola to work in the next few weeks.

Many Nigerian companies are already operating in at least, the neighbouring West African countries.