World Report

Partnering international oil companies has enabled indigenous services provider Pelfaco to develop its know-how.

lthough the indigenous oil sector has advanced considerably in recent years, the desire to learn, improve and grow remains strong among ambitious Nigerian firms and there is still room for international help in key areas.

Gesi Asamaowei, Managing Director of Pelfaco, a general services provider, believes British companies have led the way in the development of the gas industry in recent years, building fabrication tie-ups with local operators.

He sees strong potential for further links to improve skills training among Nigerian firms in this area and across the board. “It is a two-way thing,” he says. “UK companies stand to benefit as well as the locals. They have to partner with the right people and the earlier they come here and open shop, the better for them.”

Pelfaco already provides a wide range of services to the industry, though it is always keen to expand its reach. It offers land and swamp-based pipeline and flowline expertise, including construction of manifolds and support materials, fabrication of piping materials and general steel works, among other things. It also boasts a marine services fleet for pipeline and associated work in the oil-rich swamp areas, plus dredging works and offshore electrical and instrumentation works.

Gesi Asamaowei
Managing Director of Pelfaco

‘I do not know many companies that can raise $25million’

Among the larger projects it has provided are full turnkey civil engineering construction and project management, offshore facilities maintenance and jacket and deck installation. For customers, it offers base facilities and private jetty space for loading and stacking operations.

Mr Asamaowei says that partnering international firms has opened doors for Pelfaco – it has a strong relationship with Saipem, a division of Italy’s Agip – though the emphasis is on building its own strengths. “This has given us a tremendous opportunity to acquire know-how in a short period.” Although the company has dealings with some British firms, it is keen to see more contacts develop.

One of the main stumbling blocks holding back the indigenous oil sector is its lack of access to affordable financing. “I do not know many companies that can raise $25 million (£14 million).” says Mr Asamaowei.

This might sound a lot to the individual, but it is small fry for the energy business. Some of the proposed liquefied natural gas projects in Nigeria are likely to cost several billion dollars to build, effectively shutting the door on any large-scale input from Nigerian contractors. “It saddens one’s heart that a billion dollar contract is awarded and no more than $50 million (£28 million) will stay back in Nigeria.”