For more liquidity and sustainability, merger and acquisition has been recommended for drilling operators in the downstream sector of the oil and gas industry.
This advise was handed down by Rotimi Ashley Dejo at the Nigeria Chapter 2019 HSE Awards and Technical Session of the International Association Drilling Contractors , IADC which held in Lagos.
Ashley, a retired drilling engineer with 21 unbroken years with Chevron, now Chief Executive Girafit Venture, technically exposed the ills and challenges bedeviling in the area of personnel training, unfriendly regulation, pollution, well control and continuous rise in the development and implementation of new cutting edge technologies
“Many companies have their own internal WC policies and standards, which are often more stringent than the minimum regulatory stipulation? Some companies only meet the lowest requirement of the regulators (or their client) and if not adequately audited, will flout the minimum requirements routinely. How many companies validate their WC “battle readiness” as a matter of routine? For example, do you audit your shut-in readiness by conducting pit/trip drills?”He asked.
To address these challenges in an industry that has over 200 wells within the association that targets an increased membership to 32 by year end, Ashley advised merger as an option.
For instance, he explained that at one time, Chevron lost $104 million in drilling without result and asked “how can a local contractor cope with such expense? Local operators do not have money like the IOC, therefore coming together with strong financial muscle for accurate data collection and training can help to brace up with the hi tech challenges in the industry.”
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