The corporate governance structure guiding oil operators can lift the confidence of oil services companies that render service to them, according to Obi Uzu, the managing director of Global Process & Pipeline Services (GPPS) Limited.
Speaking during a panel session on ‘Pivoting Upstream Petroleum Regulation and Investment,’ at the sixth edition of Nigeria International Energy Summit (N.I.E.S 2023) held recently in Abuja, Uzu said that one of the most important things service firms seek from oil operators is good corporate governance structure, especially in ethics and commitments.
He pointed out that reliable process systems and dependable risk hedging is other factors that oil operators can use to endear themselves to service companies.
“Before a service firm commits resources to work for an oil operator, part of the due diligence is ensuring that all the risks are well hedged. It could be financial, technical or non-technical risks either through bank guarantees, upfront payment or the perception that the service companies will be paid after delivery service,” Uzu said.
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Uzu said a lot of the innovations witnessed in the upstream oil and gas sector can be traced to the activities of service companies.
“Oilfield service providers play crucial roles in the upstream oil and gas industry as a frontline provider of equipment and expertise for the largest national oil companies and the smallest of independents,” he added.
Themed ‘Global Perspectives for a Sustainable Energy Future,’ the N.I.E.S 2023 provided the opportunity for a holistic x-ray of the global energy industry and the trends that will shape the future. The summit also offered the incoming administration a good roadmap to drive Nigeria’s energy industry.
The summit’s exhibition was commissioned by Vice President Yemi Osinbajo, who used the opportunity to interact with key industry players while on a tour of exhibition booths including GPPSL, OPEC, NNPC, and Ministry of Petroleum Resources among others.