Tough times for Nigerian oil & gas companies

The oil and gas industry in Nigeria has faced challenging times in recent years, with the decline in global crude oil prices impacting both international and local companies operating in the country. Local oil and gas companies have had to navigate through these tough economic conditions, facing various hurdles and seeking support to weather the storm. In a recent interview with CNBC Africa, Taofik Adegbite, CEO of Marine Platforms Limited, shed light on the challenges faced by Nigerian companies and discussed potential support measures that could aid their survival in the industry. Adegbite highlighted the resilience of Nigerian companies and the importance of building a strong foundation based on safety, corporate governance, and quality. The key theme of the conversation was the need for support and collaboration between indigenous companies and international oil companies (IOCs) to overcome the current challenges and ensure the sustainability of the industry. Adegbite emphasized the significance of reducing operational costs, retaining skilled manpower, and upholding safety standards without compromising quality. He stressed the importance of long-term relationships built on trust and integrity, which have enabled Nigerian companies to navigate difficult times with the understanding and support of their stakeholders. Adegbite acknowledged the role of Nigerian banks and government interventions in providing relief to companies with dollar exposure and loan repayments. He advocated for partial guarantees on loans and assets, as well as support from agencies like NIMASA to cushion the financial burden on local companies. Adegbite proposed increased advocacy and engagement between local service providers and IOCs to foster a conducive environment for collaboration and mutual growth. While acknowledging the severity of the current challenges, Adegbite expressed optimism that companies with strong foundations and a commitment to excellence will emerge stronger and contribute to the realignment of the industry. The road ahead may be bumpy, but the resilience and determination of Nigerian oil and gas companies pave the way for a brighter future in the sector.