The Nation Newspaper

Tag: IADC

  • Oil rigs idle over theft

    Oil rigs idle over theft

    Many oil rigs in Nigeria are not operating optimally due to crude oil theft, pipeline vandalism and other malpractices, the President, International Association of Drilling Contractors (IADC) Nigerian Chapter, Mr. Sola Falodun, has said.

    Falodun said many of the 42 oil rigs are not being used properly, due to these challenges, lamenting that recouping investments made on rigs have been a difficult issue to their owners in recent times.

    He said: “Oil rigs are multi-million dollar assets, which their owners need to use often to make profits. However, that has not been the case in Nigeria where many of the oil rigs idle because there is no job for them.’’

    Falodun said the passage of the Nigerian Content Development Monitoring Board (NCDMB) would improve local participation in the oil and gas sector. According to him, the issue would make indigenous oil companies play better, and record good profit.

    He said: “With the passage of the Act, drillers and other operators in the sector would get more jobs. They would finance big-ticket transactions, hitherto the preserve of the International Oil Companies (IOCs). The divestment of shares by the IOCs and the subsequent interest shown by independents or local operators to buy into their assets is a good omen to the industry.”

    We hope the trend will continue in the sector.”

    Falodun said the passage of the Petroleum Industry Bill (PIB) is going to revolutionised the industry because operators would adopt and adapt to new technologies and practices.

  • Shell’s, others’ divestment: Contractors seek bidding review

    Shell’s, others’ divestment: Contractors seek bidding review

    In anticipation of the sale of Shell’s and other international companies’ marginal oil fields, drilling contractors are seeking a review of contract bidding to get more jobs.

    Speaking on the sideline at the second technical session of a conference by the International Association of Drilling Contractors (IADC), Nigerian chapter, in Lagos, its Chairman, Sola Falodun, said this became necessary to enable the contractors operate better as opportunities arise.

    He said the decisions of Shell, Chevron and others to sell their stakes had opened up opportunities for drilling firms, adding that a review of the bidding for contracts was necessary. In Falodun’s view, the period between the bidding and winning of a contract is long.

    He said: “The process of awarding contracts is long. Right now, it takes an average of about two and half years for a contract to be awarded from the bidding stage. This is not sustainable because firms have to wait for long before getting new jobs. It does not make the system effective and robust.

    “Another problem is that the contract is short-lived. It is a two-year plus one contract. The contract should be five-year term to enable the companies re-coup their investments, and to also provide them a window through which they would be able to meet their financial obligations without being choked up.’’

    The industry, Falodun said, has entered an era where drilling contractors, among other operators, would perform better, following the divestments of the multinational oil firms.

    “Though the Nigerian Content Development Monitoring Board (NCDMB) has directed that certain percentage of oil and gas business should be given to local operators to boost their participation in the industry, there is the need for drillers to take advantage of the opportunities unfolding in the sector. We have been able to handle some of the drilling projects undertaken by the foreign-owned companies. In areas where we are constrained, we synergise our operations by partnering with companies abroad,’’ he added.

    He said problems, such as funding and weaker commercial structure, were hindering the operations of drilling contractors, stressing that the development has prevented them from acquiring assets.
    Falodun said drilling contractors pay huge interest rates on facilities obtained from banks, noting that the issue has impacted negatively on their operations.

    “The interest we pay on facilities is higher than what obtains in other climes, as well as putting us in a disadvantage position. Based on this, the association is seeking a review of bidding processes to encourage growth. A lot of companies have rigs, but could not put them to productive use due to failure to get contracts. Political patronage has favoured some oil companies, while it has affected others,‘’ he said

    On oil rigs, he said the process of awarding contracts in the industry is discriminatory, noting that wrong people get most of the contracts, thus resulting in low utilisation of oil rigs and its attendant production hitches. The problem is going to have a cumulative effect on the entire production process, he warned.

    He said rigs oil rigs are multi-billion assets, noting that many of the 42 rigs in Nigeria are idle because there is no job for them.

    Also, the Chairman of Afren Plc, Mr Egbert Imomoh, emphasised the need to train workers in the oil drilling business well.
    Imomoh, who was guest speaker at the event, said the association has done well by inaugurating a study to look into the training gap in the industry.

  • Experts make case for skills devt centre

    The International Association of Drilling Contractors (IADC), Nigerian chapter, has called for the establishment of a training centre to enhance the acquisition of skills in the oil and gas industry.

    The training centre is expected to serve as an avenue where operators and service providers would acquire relevant skills that would help them advance the technology required in the industry and to further harness the local content development initiative.

    The Nigerian chapter has also set up a committee to exchange ideas on the modalities, location of the institute, people to be involved, the kind of training that would be offered in the place, cost and the expected time to realize the project. The committee is to report back to the management of the IADC Nigeria, which would then bring it to the general body.

    Speaking with The Nation during the IADC technical session in Lagos, the Operations Manager, Oando Energy Services, Mr. Valentine Iheasirim, said establishment of such training centre has become necessary because the current school curriculum does not fully prepare those who are trained to be petroleum, electrical, mechanical engineers and other similar fields of study to deal with the challenges of the drilling industry.

    He said building such institutions would provide opportunity for the young university graduates to obtain in-depth knowledge that would make them to be relevant in the sector.

    Mr Iheasirim also said the Petroleum Training Institute (PTI) set up in Effurun, Delta State, decades ago, has failed to attain the purpose for which it was established. This, he noted, account for the reason there is huge knowledge gap in the industry.

    He said as drilling contractors, the training institution will help to foster competency in the individuals to manage key positions in the sector.

    He said: “We can set up a training school that would specifically address certain areas such that the young man who comes out of the university can enrol in the training school and maybe within two or three months, get the necessary skills, which can make us use of in the field. It gives him a faster head start.”

    The expert said membership of IADC is not only for drilling contractors, but also for service companies and operator companies, such as Shell, ExxonMobil, Chevron, Agip, Total and Addax.

    Iheasirim said the IADC forum gives members the opportunity to thrash out problems, challenges and brighten ideas on how to resolve them.

    He called for the cooperation of the operators and regulators, including the Department of Petroleum Resources (DPR), National Petroleum Investment Management Services (NAPIMS), Nigerian Content Development and Monitoring Board (NCDMB) and other relevant agencies in the country.

  • Group makes case for skills devt centre

    The International Association of Drilling Contractors (IADC), Nigerian chapter, has called for the establishment of a training centre to enhance the acquisition of skills in the oil and gas industry.

    The centre is expected to serve as an avenue where operators and service providers would acquire relevant skills that would help them advance the technology required in the industry and to further harness the local content development initiative.

    The chapter has also set up a committee to exchange ideas on the modalities, location of the institute, people to be involved, the kind of training that would be offered in the place, cost and the expected time to realise the project. The committee is to report to the management of the IADC Nigeria, which would then bring it to the general body.

    The Operations Manager, Oando Energy Services, Mr Valentine Iheasirim, said establishment of the centre has become necessary because the school curriculum does not prepare those who are trained to be petroleum, electrical, mechanical engineers and other similar fields of study to deal with the challenges of the drilling industry.

    He said building such institution would provide opportunity for the young university graduates to obtain in-depth knowledge that would make them to be relevant in the sector.

    Mr Iheasirim also said the Petroleum Training Institute (PTI), Effurun in Delta State, decades ago, has failed to attain the purpose for which it was established. This, he noted, accounts for the reason there is huge knowledge gap in the industry. He said as drilling contractors, the training institution will help to foster competency in the individuals to manage key positions in the sector.

    He said: “We can set up a training school that would specifically address certain areas such that the young man who comes out of the university can enrol in the training school and maybe within two or three months, get the necessary skills, which can make us use of in the field. It gives him a faster head start.”

    The expert said membership of IADC is not only for drilling contractors, but also for service companies and operator companies, such as Shell, ExxonMobil, Chevron, Agip, Total and Addax.

    Iheasirim said the IADC forum gives members the opportunity to thrash out problems. He called for the cooperation of the operators and regulators, including the Department of Petroleum Resources (DPR), National Petroleum Investment Management Services (NAPIMS), Nigerian Content Development and Monitoring Board (NCDMB) and other relevant agencies in the country.

    “The NCDMB’s idea of pushing for local content and indigenisation of some activities is the right way to go, but we also need to support that with competency. Through IADC, we are driving strongly to see if affected members including international oil companies, drilling contractors, regulators, can come together and identify the problem and fashion out ways to solve it,” he added.

    He said that Oando has acquired three drilling rigs that are actively working, adding that the fourth rig is in the pipeline.