Technical Assessment of In-Country Capabilities in the Oil and Gas Operations in Nigeria

Abstract

Building local capacity among indigenous oil and gas players is a non-negotiable mandate for the Nigerian Oil and Gas Industry. A technical evaluation was conducted to assess the capabilities of 33 indigenous companies rendering services ranging from Tubing Inspection Handling and Management Services, Slickline Operations and, Surface Well Testing Operations within the Warri and Port-Harcourt areas of the Niger Delta. The table top and facility inspection evaluations showed that, for the Tubing Inspection Services, 44% out of the 18 companies sampled scored the mandatory 60% minimum required to qualify technically. Surface well testing services showed 63% of the 8 companies scoring above 70% while Slickline services revealed 88% pass for the 8 companies sampled. Criteria used in the technical assessment of these companies include; equipment and materials availability, service delivery time, job experience, HSE standards, personnel, staff training and project management. This paper attempts to evaluate the technical capabilities of indigenous companies as well as highlight some of the challenges facing the local content initiative.