Agusto & Co.’s 2020 Oil and Gas Servicing Report is the most comprehensive and up-to-date report on oil field support services in Nigeria. The report provides an overview of the global oil and gas servicing industry, particularly as the COVID-19 pandemic has led to unquantifiable losses. In assessing this impact, the report provides an overview of other key dynamics in the global oil market including the OPEC/NOPEC alliance and geopolitics in the Middle East, as these also have a significant impact on oil field operations. The report also provides an in-depth assessment of the Nigerian Oil and Gas Servicing Industry, with a highlight of key trends and developments, key success factors, key risk areas and opportunities. The competitive landscape, pricing, regulatory environment and Industry economics are also provided.
Albeit dominated by foreign operators, Nigerian oil and gas servicing companies continue to build field support service capacity. A few foreign servicing firms are estimated to be engaged in close to 60% of oil and gas projects in Nigeria. Local firms currently dominate less complex field support services such as security, transportation and procurement, due to relatively low scalable technology compared to foreign counterparts. Security escort services are seemingly quite promising in view of militancy in Nigeria’s oil-producing region and growing level of piracy activities in the Gulf of Guinea. Although most projects still rely heavily on imported equipment, indigenous oil and gas field support companies have also scaled on fabrication capacity. However, due to the relatively low bankability – owing to relatively weak bargaining power amid a volatile oil market – the Nigerian Content Development and Monitoring Board (NCDMB), asides from enforcing the local content legislation, has launched intervention facilities to meet funding gaps.
The trajectory of the crude oil market in 2019 was expected to follow in 2020. However, the favourable crude oil regime resulted in increasing shale oil production, creating the 2014 – 2016 scenario. Unfortunately, due to COVID-19, the Industry is expected to witness a massive downturn. These are unprecedented times and therefore a specific time horizon as to a full recovery of oil field operations is quite uncertain.
Our Oil and Gas Servicing Industry Report answers questions on:
Agusto & Co’s 2020 Oil and Gas Servicing Industry Report:
