Can you introduce Telmek Global Resources?

Telmek Global Resources (TGR) was established in 2017 with a primary focus on procurement. Initially, we catered to a single client, Agip, gradually expanding our services to include more clients and a broader range of offerings. We have diversified into more technical services such as engineering, construction of flow lines, procurement and installation of specialized products, and facility maintenance. Our activities also encompass the operation and maintenance of clients' facilities. 

What are the main services that are driving growth for TGR in 2024?

In 2024 our focus has shifted towards operation and maintenance services. We are constantly enhancing our technical competence by undertaking new service opportunities. Also, with the divestments taking place, we are looking at offshore opportunities.

How can local companies attract and nurture strong partnerships with foreign companies?

Securing partnerships in this industry demands strategic selection and a focused approach. Our success lies in demonstrating value to potential partners. For instance, when establishing a partnership for vapor recovery units, we did not approach the company with mere intentions; instead, there was an existing work and demand that necessitated their expertise. This approach coupled with local content policies, which require international companies to engage local partners, facilitated these strong partnerships. Our proven track record and client base also played a significant role in attracting partners seeking to expand their market presence.

Have you faced any supply chain stresses recently in light of recent global events?
 
While we are aware of the challenges, we have not been heavily impacted because our procurement activities have been limited, primarily focusing on service-oriented work since the Covid pandemic. 

How have currency fluctuations affected your business operations?
 
Currency fluctuations have indeed affected everyone. Initially, we thought having income primarily in dollars would shield us, but it has had knock-on effects and increased OpEx and the cost of doing business. With inflation, banks naturally increase interest rates, affecting our cost of funding. This puts us at a disadvantage against larger, more established competitors who have built reserves over the years. Additionally, operational costs such as diesel, labor, and gas have increased, which also had an impact on our sister company, Telmek Energy Solutions, a gas-to-power solution provider. Although we pay for our gas in naira, it is converted ‘as-at’ to USD, so the elevated gas prices are still a challenge.

How do you think the Nigerian government can support indigenous service providers like TGR?
 
I believe the government is already taking steps in the right direction. Despite some policies not directly benefiting us, there are ripple effects that can be advantageous. For instance, the recent directive on fiscal incentives for gas companies and investments in non-associated gas is encouraging. This will hopefully attract more investments into the gas sector, leading to more projects that benefit indigenous service providers like TGR. Additionally, initiatives like the ‘Decade of Gas’ and local content requirements are positive steps in the right direction. However, it is crucial for the government to focus not only on introducing policies but also on effective implementation. This ensures that benefits trickle down to companies like ours. Also worth noting is the bold step this new government has been taking to increase oil and gas production, which will benefit service providers like ourselves. 

What is TGR’s approach to Diversity, Equity and Inclusion (DEI)?
 
DEI is a top priority for us. We have a dedicated HR focus on DEI and integrate it into our recruitment process in which we prioritize talent and efficiency over age or gender. We work to ensure that all employees feel valued, respected, and supported. This includes implementing anti-discriminatory policies, diversity recruitment policies, etc. We also create an environment conducive to growth where individuals can progress from entry-level to executive roles. Many of our team members have grown with us, transitioning from various roles to higher positions and developing new skills.

What are TGR’s goals for the future, and how do you plan to achieve them?
 
I am ambitious about our growth, aiming for a 40% year-on-year increase by building a niche for ourselves. We are focusing on investing in internal capabilities, leveraging local content, and expanding into new areas like gas, given its significance in Nigeria's energy transition. Our goal is to solidify TGR’s position as a leader in our field.