Can you introduce GCA Energy to our audience?

GCA Energy is a registered Oil & Gas service company based in Nigeria and has been in operation for over 36 years. Our head office is in Victoria Island, Lagos, and we have branches in Ikeja, Lagos and Port Harcourt. Our services are segmented into three main areas: EPCIC (Engineering, Procurement, Construction, Installation & Commissioning), Technical services, and Procurement.

We have the capacity to deliver medium-sized EPCIC projects, providing comprehensive solutions for our clients for green and brownfield projects. Our technical services encompass maintenance services, calibration, metering services, inspection services, flare gas measurement systems, tank and vessel cleaning, helideck services, and after-sales support, among others. 

In procurement, we represent leading OEMs and suppliers globally, such as GE Electric Motors, SPX, Celeros, Petrovalves, etc.  

Our people are our strongest and most valued assets, so we target the best in the industry and continually upskill and develop them. We maintain a lean approach to resourcing with 33 full-time staff, comprising engineers, project managers, and business support personnel, scaling up as the need arises. Our commitment to excellence and customer satisfaction drives our mission, which is reflected in our longstanding presence and our partnerships within the industry. 

Can you discuss how recent changes in the Nigerian oil and gas sector have impacted demand for GCA Energy's services?

The onset of the Covid pandemic instigated a global economic downturn, affecting businesses across the world. Consequently, demand for our services slowed down in 2020 but began to pick up in 2021 and into 2022. 

Insecurity in the Niger Delta, crude oil theft, and the attendant oil spills have caused a significant reduction in production volumes for our clients, a key underlying cause for Nigeria not meeting its OPEC+ production targets in recent years. This reduces demand on us lower in the value chain generally. The IOCs and NOCs, faced with production instability and uncertainties, shifted their focus from large-scale investment projects to maintaining and optimizing existing production capabilities as well as fiscal metering. Consequently, we have witnessed a surge in demand for maintenance services aimed at sustaining and enhancing operational efficiency. These include fiscal meter calibration, tank cleaning utilizing automated systems, direct equipment replacements, etc. Factors such as the 2023 Nigerian elections further contributed to the uncertainties felt by IOCs as far as major projects are concerned. However, with the elections now concluded, we anticipate a resurgence in investment and project activities.

What are the main supply chain stresses that companies like GCA Energy are presently experiencing?

The war in Ukraine continues to create supply chain volatility. Suppliers are unable to provide timely and stable quotes, leading to shorter price validity periods and longer lead times.  Inflation and currency devaluation in Nigeria add serious pressure, making it difficult to maintain stable prices and finance orders. The fleeting exchange rates have impacted customs duties and disrupted port operations, leading to port congestion.  

How does GCA Energy approach CSR and promote local content?

We are fully aligned with the local content development laws and policies of the NCDMB. We contribute to the development fund and have invested in technology insourcing. We employ locals in the communities we operate in. All our staff are Nigerians, and through extensive training, including overseas programs, our Nigerian engineers are equipped to handle specialized tasks efficiently, resulting in cost savings and enhanced responsiveness to clients. We swiftly mobilize our staff within 72 hours, compared to weeks for an expat overseas. For CSR, we are deliberate and target our host communities. We built a clubhouse for the Borokiri community in Rivers State, rehabilitated Uokha Grammar School, and sponsored Rumuadaolu wrestling festival, to name a few.

Could you outline GCA Energy's strategy to become the dominant equipment supplier and service provider to Nigeria's oil and gas sector?

Over the past two years, we have undergone significant restructuring to enhance our business continuity. Our focus has shifted towards expanding our service portfolios, whilst our traditional procurement engine runs. We have invested heavily in improving the skills and competencies of our workforce and recruiting technical experts to bolster our services. Moving forward, we aim to continue this trajectory by setting up a workshop locally. We are actively seeking new partnerships to broaden our reach and offerings.