Can you provide an overview of Eunisell?

Our entry into the market in 1996 was motivated by the observation of a Nigerian chemical sector dominated by foreign entities, lacking in local content and growth potential. Anticipating market shifts, we foresaw the departure of these foreign players during challenging economic times, prompting us to act. We formed alliances with reputable OEMs, ensuring a steady supply of essential chemicals for the Nigerian market, whilst developing local competence to support local formulation of some of the chemistries to address peculiar local challenges in the industry. Eunisell has since become synonymous with providing comprehensive solutions in specialty chemicals, engineering services, and technical support, addressing industry needs while fostering local content development. Our commitment to building local capacity and expertise, along with strategic planning and stocking of key chemical products from our international technology partners (OEMs), has enabled us to weather global supply chain crises and remain a trusted partner in the industrial and oil and gas sectors for the past 28 years.

Which services have been driving growth for Eunisell?

Firstly, we excel at implementing just-in-time product stocking strategies, ensuring our clients have access to essential chemicals precisely when they need them. This is complemented by our robust technical services, where we provide just-in-time comprehensive support to our customers. We go beyond mere transactions by engaging in knowledge-sharing initiatives and educating manufacturers and end-users on how to tackle workplace challenges effectively. Additionally, our ability to navigate some of the key business challenges in the Nigerian market such as FX issues through a balanced income stream spread between Naira and USD.

How have FX challenges and supply chain issues affected Eunisell's operations in Nigeria?

This trend of currency instability is not new; it has been a persistent challenge dating back to the 1980s. To address this, we have strategically diversified our revenue streams to cover areas where the IOCs are predominant and 60-100% of payments are in dollars. We have also ventured into engineering solutions, where we help the E&P companies realize early cashflow in production of crude, thereby ensuring a more stable income stream in dollars. Importantly, our longstanding partnerships with OEMs have been instrumental in navigating these challenges. 

With the shift of IOCs from onshore to offshore operations, how has this impacted your business?

The gradual shift in focus to offshore assets and operations by the IOCs offers advantages such as reduced community-related challenges and greater control over production processes. This shift has resulted in increased business opportunities as onshore assets are sold to smaller companies, creating a more diversified market landscape. Previously, our focus was primarily on servicing IOCs, the emergence of national oil companies and indigenous companies has expanded our client base. The demand for offshore services is particularly high, with contracts spanning up to four years in a single term and offering substantial financial returns. 

How would you assess the current state of the Nigerian chemical sector?

The Nigerian chemical sector has witnessed significant progress in terms of local participation, largely driven by economic and industrial growth as well as legislative interventions. These policies have incentivized Indigenous companies to participate more actively in the sectors, fostering skills development and capacity building within the local workforce. However, government support remains critical for sustaining this momentum and fostering further growth. Initiatives aimed at improving infrastructure, reducing bureaucratic bottlenecks, and providing incentives for local manufacturing, would significantly enhance the sector's competitiveness and contribute to economic development.

How does Eunisell plan to remain a leading provider for the African oil and gas industry?

Eunisell is prioritizing strategic diversification and innovation. The challenges brought by the Covid pandemic further highlighted existing issues in the chemical sector, particularly disruptions in global supply chains. Recognizing the importance of adaptability, we are proactively repositioning our business strategy. Our aim is to retain and sustain our current chemical market share by offering unrivalled products and solutions to these key customers. Simultaneously, we are intensifying our focus on production solutions, recognizing the burgeoning opportunities in addressing production complexities like fast-track crude production, produced water management, flow assurances, sand management, well clean-up and gas conversion, etc. We hope to eventually participate directly in E&P, leveraging our existing expertise and resources to become asset owners.