Richard Ginika Izuora
The Managing Director of Global Process & Pipeline Services (GPPS) Limited, Engr. Obi Uzu has said that the corporate governance structure guiding any oil operator can be a major confidence boost for oil services companies who render their services to oil and gas companies.
“One of the most important things you seek from an oil operator you intend to work for as a service company is good corporate governance structure especially in terms of their ethics and commitments”, said Obi Uzu, during the panel session on “Pivoting Upstream Petroleum Regulation and Investment” at the 6th edition of Nigeria International Energy Summit (N.I.E.S 2023) held recently in Abuja.
According to the GPPSL chief executive, other factors apart from good corporate governance structure which oil operators can use to endear themselves to service companies include reliable process systems and dependable risks hedging.
“Before you commit your resources as a service provider to work for an oil operator, part of your due diligence is to be sure that all your risks are well hedged be it financial, technical or non-technical risks either through bank guarantees, upfront payment or the perception that you will even be paid at the end of your service delivery”, Uzu said.
While reiterating the key contributions by service providers, Uzu said that a lot of the innovations witnessed in the upstream oil and gas sector can be traced to the activities of service companies.
“Oilfield service providers play crucial roles in the upstream oil and gas industry as frontline provider of equipment and expertise for the largest national oil companies and the smallest of independents”, he added.
The broad theme for the N.I.E.S 2023; “Global Perspectives for a Sustainable Energy Future” provided the opportunity for a wholistic x-ray of global energy industry and the trends that will shape the future. The summit also offered the in-coming administration a good roadmap to drive the Nigeria’s energy industry.
The summit’s exhibition was commissioned by Vice President Yemi Osinbajo, GCON, and he used the opportunity to interact with key industry players as he toured round some exhibition booths that included GPPSL, OPEC, NNPC, Ministry of Petroleum Resources amongst others.