What have been the main developments for Oilserv over the past few years? 

EO: Oilserv was founded in 1992 and is a leading oil and gas EPCIC company providing innovative solutions to the Nigerian energy industry. Our project portfolio includes NNPC’s AKK Gas Pipeline Project, the longest gas pipeline in Nigeria at 614 km. Oilserv has the responsibility to deliver segment 1 of this project which comprises a 40-inch x 303.4 km main line, a 24-inch x 15 km spur line, 12 block valve stations, an intermediate pigging station, and two terminal gas stations. Oilserv was also the EPC contractor on the Assa North-Ohaji South 36-inch x 23.3 km gas pipeline project; the EPCIC contractor on the 12-inch x 27 km gas transmission pipeline system and gas treatment plant to efficiently supply metered gas to the GPAL Independent Power Plant at Osisioma, Abia State; and the 18-inch x 128 km South-South gas transmission pipeline system for Ukanafun in Akwa Ibom State to Unicem plant at Calabar, Cross River State. 

Can you give an overview of Frazimex Engineering and how it fits into the Oilserv Group? 

CE: Frazimex Engineering Limited is a strategic business unit specializing in engineering services ranging from concept design, basic design, front-end engineering design, and detailed engineering. Frazimex has performed these services for many Oilserv projects, and is strategically positioned to provide engineering services for other companies. 

What are the main challenges Oilserv has faced in Nigeria in 2024?

EO: Security is one of the main challenges we have to navigate as it can be dangerous to access certain areas without armed security personnel. Transmission line construction projects require significant funding and access to capital can be a great challenge. As part of our contribution to funding challenges, Oilserv has modified its business model to include EPCIC+F, Build-Operate-Transfer (BOT) and Build-Own-Operate-Transfer (BOOT). Innovation and diversification are also challenges as we need to continually embrace new technologies and acquire knowledge of these technologies. For example, the DPI (direct pipe installation) technology we are using on the AKK project at Kogi state to cross River Niger is only being deployed in Nigeria for the second time. Regulatory uncertainties are also a challenge.  

How can the government and industry players ensure that Nigeria’s pipeline infrastructure is robust? 

EO: To ensure the sustainability of gas infrastructure, the introduction of new technologies is critical, and we are deploying solutions such as fiber optic monitoring technologies to monitor lines and report any intrusions to the nearest control station. A quick response time to infringements is also critical to minimize losses. We are also deploying Horizontal Directional Drilling (HDD) technology to increase the depth of the pipeline to make it more difficult and less attractive for people to vandalize it. It is also critically important to foster good relationships with the communities, take care of their needs, and engage them in the projects so that they see themselves as contributing to the national development, and in return, they help to safeguard the facilities and infrastructure. 

Can you elaborate on the Riverside LNG project in collaboration with AA Holdings and GasInvest?

CE: Frazimex Engineering is currently performing the front-end engineering design (FEED) for the Riverside LNG project pipeline, where they are planning to build a small-scale, modular LNG export terminal. The terminal's gas supply will come from 2 sources, connected to a planned network of gas pipelines, which Frazimex is doing the engineering on.

Also, our subsidiary company, FrazEnergy Limited, is collaborating with the sponsors of Riverside LNG on a Build, Own, Operate model to develop the pipeline that will transport gas from the producers to the LNG plant. This initiative aligns with the new provisions of the Petroleum Industry Act (PIA), which grants a Gas Transport Licensee rights to establish and operate natural gas transportation pipelines along a defined route, based on a tariff system.

What are Oilserv’s priorities and growth strategy for the coming years? 

EO: Oilserv is aggressively developing our gas business under our subsidiary FrazEnergy, which specializes in gas-to-energy, gas-as-a-service, and flare capture and utilization. We are also expanding our operations with our subsidiary Crown Energy, which specializes in inspection services and non-destructive testing utilizing AUT (automated ultrasonic testing) technologies.