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Drilling contractors see positive outlook for oil, gas

Crude oil prices continue to edge upward in hopes of stronger economic growth making the Nigerian chapter of the International Association of Drilling Contractors (IADC) see oil and gas businesses bouncing back.

Read Also: Oil ends week near $70 buoyed by strong US economic data

The COVID-19 pandemic led to the third price collapse of the oil and gas industry in 12 years.

It is particularly the worst shock amongst the three causes as there has been an unparalleled decline in the demand for oil as well as its derivatives, however, things are improving.

According to the International Energy Agency (IEA), oil demand is already outstripping supply and the shortfall is expected to widen even if Iran boosts exports as vaccinations against COVID-19 bolster the global economy.

For Africa’s biggest oil-producing country, IADC’s Nigerian head Chuks Enwereji and other stakeholders at the 2021 HSE Awards & Technical Session Webinar have shown high hopes and business recovery optimism in the country’s oil and gas industry.

While making his opening remarks, he disclosed that “IADC members in Nigeria have increased to 45. Some rigs have gone back to work,” adding that the chapter’s 10 rigs in February 2021 have increased to 12 in May, signaling a slight market recovery.

To take advantage of these opportunities, Enwereji urged members to prioritise spending training and retraining of its staff to meet industry standards.

He encouraged members to follow government guidelines and continue to put in place measures to ensure and protect the health and wellbeing of all employees, visitors, and third-party contractors.

Effiong Okon, executive director, Operations for Seplat advised operators to pay more attention to training. He also solicited more considerable efforts to improve planning, data analysis, hardware barriers, and oil well control failures which can allow the industry to shape the future better.

“Sometimes, some decisions are taken to cut costs, but it could end in great catastrophe if attention is not paid to adequate training and other key parameters to avoid loss,” Okon said.

He added that despite low productivity and fragmented market including capital inadequacies, opportunities abound in Nigeria’s oil and gas space

Hisham Zebian, IADC vice president, Eastern Hemisphere emphasised the importance of being happy on the job saying IADC is poised to keep members abreast of the latest innovations in the industry.

He explained how the global drilling association has included more technologies like high movement, artificial intelligence, and face recognition, among others in its training programmes.

Valentine Iheasirim, IADC Nigeria Chapter vice-chairman noted that the essence of sharing knowledge through the webinar is to “sustain and build a culture of safety given that drilling operations cut across the land, swamp, shallow and deep waters.”

He explained that the year 2020 was challenging but some members weathered the storm and operated safely and successfully.

Following the award criteria and the independent committee’s report, Shelf Drilling Nigeria Limited posted the best safety performance and emerged as the winner in the 2020 Incident Statistics Program (ISP).

IADC Nigeria Chapter also recognised individuals for the Exemplary Service Awards, which included the awardees as listed – Augustine Avuru of SEPLAT; Olanrewaju Ojo-Aromokudu of Chevron; Omolola Ani of ExxonMobil; Effiong (Effy) Okon of SEPLAT; Emmanuel Ogagarue of AITEO Group and John Dada of Aviam Offshore Engineering Services Limited.

The awardees were recognised for their outstanding contributions to the IADC Nigeria Chapter and their commitment to improving and enhancing the safety, training, and advancement of technology throughout the Oil & Gas industry.

 

For sponsorship of the event, SKLD Integrated Services Limited, a multi-sector company, providing industrial garments, safety boots, fire-resistant work wares, school uniforms, and procurement services at wholesale and distribution levels, was also recognised.

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