Sopuruchi Onwuka
Indigenous oilfield services contractors in the upstream petroleum industry have in the in 2025 collectively invested significant $10 million or N225 billion inbuilding capacity for fast and efficient execution of industry jobs.
Chairman of the contractors known as the Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya, said the invested funds went into equipment and asset capacity as part of efforts to strengthen local participation in the oil and gas industry.
Engr Ogunsanya who addressed delegated at a seminar hosted by the Nigerian Content Development and Monitoring Board (NCDMB) at the ongoing 2026 Nigerian International Energy Summit (NIES) said the investments were focused on building local technical and operational capacity and ensuring that Nigerian service companies are better positioned to deliver on industry projects.
He restated the commitment of PETAN to remain strongly steadfast on human capital development, noting that the association is working closely with the NCDMB and industry operators such as Shell, Renaissance, Seplat and Chevron.
According to him, PETAN is also currently implementing a two-year graduate internship program across 120 member companies to help develop a steady pipeline of skilled Nigerian professionals for the sector.
Engr Ogunsanya acknowledged that contracting activities have increased since the fourth quarter of 2024, with more expressions of interest, tenders, pre-qualification exercises and technical and commercial evaluations taking place.
He however pointed at disturbing trend of inefficiency in the contracting process, decrying continued patronage of middlemen parading as service companies while fronting for foreign companies. He warned that continued existence of briefcase companies acting as commission agents build cost on projects in direct defiance to President Tinubu’s mandate on the industry to cut cost.
He also emphasized the urgent need to weed out fake companies in the system by closely monitoring the contracting process under the Presidential Directive to ensure that contracts are not only awarded but executed within approved timelines.
Engr Ogunsanya said a recent PETAN study showed that the pace of contracting is not yet in line with the Presidential Directive, which requires contracts to be executed within six months of award over an initial five-year period, with an option for a two-year renewal.
He identified prolonged internal approval processes, delayed final investment decisions, slow commercial negotiations, extended regulatory procedures, and funding challenges as key factors slowing down project execution.
The PETAN chairman also stressed the need for policy and regulatory stability to support investment in the industry, adding that while reforms are ongoing, investors need consistency and predictability in policies, approvals and institutional leadership to make long-term commitments.
According to him, frequent policy or regulatory changes increase investment risk and can cause investors to delay or reduce capital deployment, while stable conditions allow approved funds to be released and applied effectively, leading to timely project execution and measurable results.
