Nigerian engineering firm eyes partnerships in Guyana’s oil & gas sector

…CEO emphasises importance of enforcing local content law in Guyana

Guyana continues to attract interest from countries and companies around the world, including Nigeria. Nestoil Plc, a Nigerian construction and engineering company with close ties to the oil and gas industry in that country, that has signaled its interest in available areas of collaboration in Guyana.
Nestoil Plc Chairman and Chief Executive Officer (CEO), Ernest Azudialu-Obiejesi, visited Guyana recently on a four-day fact finding mission. During an appearance on an energy podcast, he spoke about what his observations have been in Guyana so far and the scope for collaboration.

“My observation within the last four days, shows clearly that international oil companies that originate from countries that are producing oil, especially from Africa. From some of the countries that are highly developed are coming to Guyana and is very key at this point. That’s one of the reasons why we’re here.”

“(That’s) why I decided to come and see Guyana for myself. Working with such companies that have gone through what Guyana is going through now, or companies from countries that have had oil for some time now, its very important because there will be a transferal of technology, local technology,” he further said.
According to Azudialu-Obiejesi, there are many parallels between Guyana and Nigeria in the development of their respective oil and gas industries. And he also pointed out that Guyanese involved in the services sector in the oil and gas industry can also learn from those who have walked this path before.
“From where I see Guyana today, (it) shows exactly the type of thing we had in Nigeria many years ago. So, the whole support of Guyanese, to be part of the oil sector in a country to have companies like Nestoil work with them. To kind of hand hold them to start participating, gradually, from where they are today.”
“To support the international oil companies like Exxon, Chevron, that are coming from other markets, like Nigeria, to be able to understand the technology. The growth in services. That are just coming to Guyana. So, the cooperation is necessary,” the executive said.

Meanwhile, Azudialu-Obiejesi also emphasised the importance of the Government developing frameworks and putting systems in place to ensure that the wealth earned from the oil and gas sector will directly benefit the people of Guyana
He stressed that the Guyana government should examine other countries that were successful in the sector and use their stories to guide local frameworks to develop even more sophisticated systems and legislation.
Nestoil was incorporated in 1991 and is Nigeria’s largest indigenous Engineering, Procurement, Construction and Commissioning (EPCC) Company in the Oil and Gas sector. The company has been a significant contributor to local content in the industry and has recently begun its investment journey for the first time in the southern hemisphere by developing business relationships with Guyana.
There has been interest in the past from Nigerian companies looking for opportunities in Guyana. A few years ago, a delegation of potential investors, led by Benedict Peters, the Founder and Chief Executive Officer (CEO) of Nigeria’s largest oil production firm – Aiteo Group – had met with President Dr Irfaan Ali and team at State House.
President Ali was joined by the Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh; Foreign Affairs and International Cooperation Minister Hugh Todd and Agriculture Minister Zulfikar Mustapha.
Also present were Housing and Water Minister Collin Croal, Public Works Minister Juan Edghill, Natural Resources Minister Vickram Bharrat and Director of Projects at the Office of the President, Marcia Nadir-Sharma.
With its headquarters in Lagos, Nigeria, and offices in Abuja, Port Harcourt, Warri, London and Geneva, Aiteo is Nigeria’s largest oil company and one of Africa’s fastest-growing energy leaders.
It operates in the Niger Delta basin in West Africa’s offshore fields, and in the Benue Trough. Among its areas of expertise is exploration and production, bulk petroleum storage, refining of petroleum products, trading, marketing and supply, power generation and distribution.
The previous year, after months of bilateral engagements between Guyana and Ghana, particularly in the area of oil and gas and local content, President Ali and members of his Cabinet had also met with a visiting Ghanian delegation of private sector representatives. (G3)