Can you introduce Craigwal Petroshore Limited?

I founded Craigwal Petroshore Limited (CPL) in 2016. Recognizing the industry-wide struggle with alternative evacuation, storage systems and custody transfer due to transport line disruptions, CPL seized the opportunity to innovate and provide companies with a technologically advanced method of alternative evacuation and storage system. Leveraging relationships with entities like the Department of Petroleum Resources (as it was then known), we identified gaps and devised solutions. Our focus on offshore operations and strategic modifications enabled us to maintain productivity even during challenging times. However, as the economic landscape shifted, we realized that we needed to redirect our objectives. With a background spanning drilling, production, facility/asset management, and crude oil sales, CPL aims to excel in various segments of the value chain. Despite financial constraints, we seek to excel through innovative approaches to alternative evacuation and storage systems through minimized direct competition.

Can you describe how you overcame challenges in entering the industry?

One of the most notable challenges was the scarcity and poor quality of essential equipment, such as LACT units, metering skids, flowmeters, hoses, etc. This hindered our initial efforts to implement alternative evacuation solutions effectively. To overcome this obstacle, we adopted a multi-faceted approach. We leveraged our engineering expertise to innovate and develop solutions that circumvented the limitations posed by inadequate equipment. Additionally, we forged strategic partnerships with reliable suppliers to ensure a steady and reliable supply chain. 

What was a pivotal moment that validated your approach and propelled your company forward?

Securing a US$6 million contract within just three months was undeniably a pivotal moment for our company. This significant contract not only served as validation of our alternative evacuation strategy but also propelled us forward in the industry. Moreover, it garnered attention and trust from key stakeholders, opening doors to further opportunities.

How are you managing the current currency fluctuations?

A falling domestic currency can create uncertainty regarding future raw material import costs, which makes financial planning complex. For us at CPL, diversifying suppliers by sourcing raw materials, products, and spares from countries with more stable currencies reduced the exposure of our business to exchange rate fluctuations. Furthermore, we partnered with an integration company in the US that provides us with excellent technical support, making it easier to source money from the US market to start a LACT unit job while local companies raise funds to pay us. We ensure almost all our transactions are priced in a more stable globally acceptable currency. 

What steps can the Nigerian government take to support Indigenous service providers?

I believe that collaboration between the government and major industry players is crucial in enhancing competitiveness in Nigeria's oil and gas sector. Measures such as ensuring stable pricing mechanisms and currency stability can significantly support service providers like us by providing a conducive business environment for planning and investment. Additionally, initiatives aimed at promoting local content development, technological advancement, and infrastructure improvement can further bolster the industry's competitiveness and support service providers in delivering efficient and reliable services.

Additionally, the government should step up the implementation of the Nigerian Upstream Petroleum Measurement Regulations, 2023, in line with the Petroleum Industry Act, 2021, which amongst other objectives, seeks to ensure accurate measurement of hydrocarbons as a basis of the calculation of petroleum revenue accruable to the Government.

Nowadays the geopolitical landscape surrounding energy diversification and security has a significant impact. The new focus on gas has increased interest in flare gas reduction, benefiting industries like electricity production and fertilizer manufacturing, which rely on gas as their feedstock

The challenge lies in the existing pipeline infrastructure, which was built long ago. Implementing a clamp-off system introduces a margin of error. Companies are now incorporating bypass lines for alternative evacuation and offshore storage before expanding their metering units to mitigate this. New locations will necessitate new technology, and that is where we are focusing our efforts. 

Do you have a final message?

The Nigeria Extractive Industries Transparency Initiative (NEITI) report revealed that Nigeria lost 42.25 million barrels of crude oil valued at US$2.77 billion to oil theft in 2019. We emphasize the importance of crude oil measurement and accounting, while ensuring oil is efficiently transferred. This ensures shareholder value and maintains environmental sustainability and market stability.