As the Federal Government steps up efforts to ensure that International Oil Companies (IOCs) and other major players in the oil and gas industry comply with its laws on local content, global technology and infrastructure company GE appears to have perfected a strategy of localisation and local content as an imperative for business rather than a mere compliance issue. In this exclusive chat with our correspondent BALA AUGIE, GE Nigeria Oil and Gas Chief operating Officer (COO) Uzo Nwagwu spoke of the manufacturing capabilities in GE’s Oil and Gas service facilities in Onne, River state, which he said is a precursor to the flagship manufacturing and assembly facility planned for Calabar.
In Nigeria, many people tend to think of GE as a power company rather than Oil and Gas one but it appears your operations in the Oil and Gas sector are probably just as robust. What is the true position?
You are right in your observation that GE Nigeria Oil & Gas is a significant player in the Oil and Gas industry. Indeed, beyond Nigeria GE is a world leader in advanced technologies and services for all segments of the Oil and Gas industry and, for the last 20 years, has played a crucial role in economic and industrial development across the continent. By maximizing efficiency, productivity and reliability, we help customers adapt to increasingly complex challenges at the same time as the local industry goes through unprecedented growth in terms of product demand, human resources, supply networks and infrastructure. GE Oil & Gas is committed to creating local employment, eliminating imports and ensuring sustainable long-term operations in Nigeria.
Do you have physical operations here or do you outsource your operations?
Our facility in Onne has been operating since 2002; this purpose-built facility is the first and only quayside facility of its calibre in Nigeria. It has an exceptional safety record, and is a cornerstone in GE’s commitment to the country’s Oil and Gas industry. With continually expanding capabilities, the site provides complete assembly, testing and lifecycle service for subsea tree systems, subsea control modules, specialty connectors and pipe. It also includes a dedicated on-site training center and offers broad business development opportunities for local suppliers. In fact we are glad to announce that after several years of capital investment, recruitment and training, we are launching the fabrication of subsea wellheads in Nigeria. This means that the manufacture of surface Wellhead systems used in drilling for Oil & Gas both on land and offshore can now be manufactured in Nigeria by GE. This is a major milestone and achievement for GE in Nigeria. What’s more, we have trained Nigerians to operate and service these equipments in Nigeria. It may interest you to know that nearly all our Field Service Engineers are indigenous Nigerians who have been trained over the years within and outside the country. Also, we committed to developing a pipeline of local leaders capable sustainably getting the job done. “It’s about localizing our people, localizing our capabilities, localizing our suppliers and localizing the human capital,
What is your total investment on this Onne plant?
Over the last 4 years we have invested not less than $7million dollars in expanding the capabilities of this facility in Onne. Beyond being in line with the Federal Government’s directives on local content, this move more than anything else surely validates our longstanding commitment to localisation and local content. As the industry continues to explore new sources of production, operations are increasing in complexity – this is driving significant demand for better technology in equipment and services. GE delivers expertise to Nigeria by being a “big business” that acts like a nimble, localized, “small” business. We do this by combining a deep understanding of local demands, challenges, and opportunities in the energy sector with GE’s global scale and R&D.
In terms of capabilities, will the planned manufacturing and assembly plant not amount to a duplication of the Onne facilities?
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The Calabar investment is not duplication but will clearly serve to enhance GE’s capabilities not just in the Oil and Gas industry alone but also in the Power industry. Nigeria’s economy remains heavily dependent on the export of primary commodities and the import of finished goods. The planned facility in Calabar provides a powerful example of how a company like GE can help the country move up the value chain. GE hopes that the facility, which will create 2,300 jobs, and become the supply hub for the local market and potentially the rest of the region.
How would you describe the business environment in Nigeria at the moment? What are the major benefits and barriers to expanding business in the country?
Nigeria has evolved over the years. The fundamentals of Nigeria represent huge opportunity for us as in GE – over 170 million people, which means a huge market for goods and services; abundant natural and human resources and more importantly, the government is creating the enabling environment for foreign direct investment. Ordinarily, infrastructural gaps will be seen as major barriers in doing business here but for us, these challenges represent opportunities for GE – whether it is Power, Healthcare, Transportation, Aviation or Oil & Gas. These are sectors where GE has built global pedigree and reputation. We are committed to increased investments here.
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