A shortage of skills has denied
indigenous oil servicing companies a
significant share of the job
opportunities in the Nigerian oil and
gas industry through exploration and
production (E&P) activities, which have
been estimated at about $17.5 billion
annually.
Nigerian indigenous companies are
benefitting from only a fraction of this
amount because of lack of
competencies and capacities.
Analysts say for Nigerian independent
E&P companies and service providers
to be empowered to bid for such jobs,
they need to develop their capacities
and competencies with respect to
planned projects between now and
2025 in three key E&P areas –
engineering, procurement and services.
Oil and gas drives the Nigerian
economy and billions of dollars are
spent annually on servicing the entire
industry, with most of the spending
going to engineering-related
operations such as Front End
Engineering Design (FEED), Detailed
Engineering Design (DEED), Engineering
Procurement and Construction (EPC),
and other E&P services.
Because the equipment and services
for the above activities are domiciled
outside Nigeria, most of the spending
indirectly ends up outside the country
in the process of procuring the services
and equipment. This situation provides
employment and business
opportunities for citizens of other
countries, with only a small fraction of
the accruable profit spent in Nigeria.
Oluwole Oluleye, executive secretary,
Petroleum Development Trust Fund
(PDTF), says his organisation plans to
change this situation. He adds,
however, that in an attempt to change
it, there is a challenge that the change
agents might be confronted with,
which is empowering the independent
companies to improve on their
competencies and capabilities.
Oluleye says having identified the
needs of the indigenous companies,
the next thing is to avail them of
upgrading opportunities available in
the industry.
Further investigation revealed that
under the engineering aspect, there is
an appreciable $2 billion opportunity
every year, but a shortage of
indigenous skilled manpower to handle
FEED, DEED and conceptual design jobs
can be a challenge for indigenous
companies.
Under procurement, every year there is
an appreciable $11 billion opportunity
for procuring equipment components,
parts and accessories, but lack of
skilled manpower required to deliver
such jobs locally is also a challenge.
In the area of services, there is a $1
billion opportunity annually for drilling
services, which is also hindered by lack
of indigenous skilled manpower
required to execute drilling jobs.
There seems not to be adequate
indigenous crewmen and engineers
available to local service providers to
enable them bid for marine services.
Meanwhile, there is also an estimated
$3 billion opportunity annually in this
area.
Also there is a shortage of skilled
trainers with the capacity to provide
training services. It is also challenging
for indigenous companies to access
requisite projects to execute on-the-job
training, despite possible training
opportunities to the tune of about
$500 million annually.
Eddy Wikina, managing director,
Treasure Energy Resources, and former
external affairs manager for Shell
Nigeria Exploration and Production
(SNEPCO), says that if the investment
climate in the country is right, the
opportunities in the oil and gas
industry could be more.
“It could be as much as $20 billion if
there is the right atmosphere for
investment in the country,” he says.
According to him, if there are
construction works going on
simultaneously at various locations for
oil and gas activities, capacities would
be built in country.
Seye Fadahunsi, executive director,
Pillar Oil, says that even though he is
not sure of the figure, he believes there
is much more room for improvement
over the $17.5 billion, adding that if all
the marginal oil fields were given out,
there would be more activities in the
industry.
While the jobs are available from these
marginal oil fields, Nigeria can use that
opportunity to develop local capacity.

summary please?

Judging by the title and first paragraph alone, its a lie. The problem with oil companies is they're always willing to employ foreign workers over home-grown ones. The arrogance is what kills their business.