Managing Director Specialty Drilling Fluids Ltd (SDF)
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You have an extensive background in the Oil and Gas Industry having established SDF in 1991 as one of the first indigenous oil service companies in Nigeria. What is your background and in which way has it prepared you for your role as Managing Director of the SDF? What are your priorities and objectives for 2006?
I had a dream, which I manifested by the incorporation of Specialty Drilling Fluids Limited (SDF) after coming back from the USA in the 90s. At that time I was one of the first to establish an oil servicing company in Nigeria. I hold a B.S.c degree in Business Administration from Winthrop College, South Carolina in the U.S.A and a doctorate degree from Madonna University, Nigeria. With hard work and commitment to excellence I was exposed to the dos and don'ts of the oil and gas business and can proudly state that I have over twenty five (25) successful years of experience in the Oil field sector. The right management of both human and material resources had a positive impact on the growth of SDF. My priorities and objectives for this year is to improve our technology in waste management, encourage dedication to duty, which will enable Specialty Drilling Fluid Limited (SDF), become the foremost indigenous company in Oilfield Drilling Waste Management. As you know this segment of the industry still offers a lot of potentials, as through our services the main oil companies are able to recover a lot of oil that would ordinarily been completely wasted.
SDF was incorporated a number of years ago to provide advanced services in the areas of Waste Management Services, mud engineering services and supply of drilling and completion chemicals and has since developed itself into one of the foremost indigenous oil service companies. As the MD of SDF, Mr. Eze, please tell the readers of the Independent, what to your opinion have been the company's major achievements and the keys to the success?
The key to the success
of SDF has been the engagement of highly motivated and efficient manpower,
ability to work as a Team, the involvement of foreign technical consultants,
as well as the latest technology in Cuttings Reinjection (CR-I) and
drill cuttings treatment. All these made the company a highly reputable
competitor in the oil industry in Nigeria. We own the biggest warehouse
in Port Harcourt and one of the best equipped laboratories We place
a lot of importance to the quality of training members of our staff
are exposed to; this explains why we expend huge fund on the training
of most of our staff within and abroad. Our competitive advantage is
that we have been in the business for over a decade during which we
have put a lot of focus into conducting our operation in a legal, ethical,
efficient and responsive manner. Through the years we have developed
policies of commitment to employees, clients and partners. Such policies
include Environmental Protection Policy, Corporate Health Policy, and
Corporate Policy on Safety, Policy on Community Affairs and Relations,
and Security Policy. In addition to this we have been working with some
of the foremost oil companies within the country: SPDC, ELF, NAOC, Halliburton
and Chevron among others. All these have contributed to what we are
right now.
Over the years, SDF has built a reputation for sound technical ability and the use and provision of latest technology in the company's delivery of customized, cost-effective solutions in Waste Management Services, mud engineering services and supply of drilling and completion chemicals. Mr. Eze more specifically, what type of services and technology does SDF provide the Nigerian O&G industry? What are the competitive advantages over its competitors?
SDF is a 100% indigenous
Waste Management Company which specializes in the provision of professionally
high quality waste management handling services to the Nigerian Oil
and Gas Sectors, using the latest cutting edge technology at our operational
base at ONNE, Rivers State of Nigeria. Presently SDF carries out business
as dealers and agents in drillings fluids, drill cuttings re-injection,
drilling chemicals, mud cleaning, mud engineering analysis, chemical
refiners, rental of storage tanks, trucking, provision of marine spread.
Solids control and filtration services amongst others. We have one of
the biggest warehouses in Port Harcourt. Our base office space is vast
and has a well-equipped functional fabrication and machining workshops,
where skips, tanks and other equipments are fabricated and maintained.
We have expanded our facilities by the acquisition of a brand new plant,
The Thermal Oil Recovery Plant (THOR) which we located at ONNE on a
space expanse of 30,000sqm. The THOR system is the latest technology
in drill cuttings treatment and the first indirect thermal desorption
unit designed to remove hydrocarbons from drilled cuttings and recover
clean oil.
In line with our vision and goal to be a major player in the Nigerian
oil and gas sector, Specialty Drilling Fluid has recently almost concluded
arrangements to acquire over two Parker Drilling Rigs: they currently
work for Shell Petroleum Drilling Company of Nigeria limited.
What role does the company play in new product/service development?
One of our fundamental policy is to ensure that SDF is at pace with the latest technology and technical know-how. To achieve this we attend different conferences, seminars and trainings in different countries. For example we are very regular at the Offshore Technology Conference (O.T.C) in Houston, Texas. We compel our staff to attend workshops on Oil and Gas Exhibition which exposes them to modern technologies and quality service that give us an edge over our competitors.
SDF has built a strong name in the local and international industry through its achievements in a number of key projects executed for both international leaders such as SPDC, Elf, NAOC, Halliburton, Chevron, as well as NNPC related companies. Mr. Eze, please tell the readers of the Independent: what project is the company currently involved with in Nigeria and internationally? How is SDF looking for new projects in Nigeria and internationally?
Over the years we have efficiently
and successfully executed projects for the leading multinationals within
Nigeria without hitches of any sort. This exemplary track record has
sustained us and attracted a lot of contracts/projects to SDF from reputable
companies like SPDC, AGIP, Exxon Mobil, Chevron, Elf, Halliburton, Schlumberger,
Noble Drilling, Petro-Scan. More so we get third party introduction
from the multinational Companies we have satisfactorily worked for.
SDF has indeed set a good standard in the local and international industry
and this has earned us business relationships with some foreign firms
e.g. ENSCO Drilling Company, Parker Drilling International based in
America and an Aberdeen based company, Denholm.
On top of its project partnerships with leading oil companies in Nigeria, SDF works in partnership with a number of international leaders in the development of Oil and Gas technology, services and most importantly training. Mr. Eze, could you tell the readers of the Independent: What do international partnerships bring to SDF and VICE VERSA? What competitive advantages does the company get from the partnerships it now has?
The international partnerships
have placed us above our competitors and we are exposed to their expertise
which our staff easily imbibes. Training of our personnel and transfer
of technical know-how are easier. Also these foreign Partners make the
purchase of equipments and spares less cumbersome.
However we provide safe landing for the foreign Partners to do business
in Nigeria. As much as we need the foreign Partners, they equally need
the local companies to operate effectively.
Over the years, SDF has not only established itself as oil services leader in Nigeria, but in the entire West African region. What type of presence does the company have in the regional O&G markets? What plans does SDF have for further expansion into the West African region? HOW is the COMPANY working with INTERNATIONAL PARTNERS in this REGARD?
The name Specialty Drilling Fluids Limited ring a bell in the West African region but as of now we are focusing on Nigeria, there are still so much untapped potentials in this country. But we are also looking at expanding into other African countries particularly Angola and Gabon. We are on the verge of extending our services to Angola because our survey revealed a fertile ground for our services.
With Gas production in the US and Europe on the decline, President Obasanjo has outlined a vision for Nigeria to be generating as much revenue from gas as from oil by 2010. How is SDF modifying or diversifying its business to play a role in the development of the local gas industry? What are your opinions on the developments of the gas industry?
The Gas sector in Nigeria is developing very fast, and will soon become more important than the oil sector. At the same time most of the activities in the gas and oil sector are interrelated. Therefore our services would be of much relevance in the gas sector. "Growth" is our watchword and we are prepared to diversify to accommodate the requirement of the gas industry.
President Obasanjo has described the oil and gas sector as "most vital to the Nigerian economy". However, local content has clearly been a big issue in the industry with figures, which were once as low as 3%, believed to now be around 15%. As an Indigenous Oil and Gas Services success story, how is SDF leading the way in local participation and capacity building in the oil and gas industry? What developments need to occur to increase the participation of Nigerians in the OIL AND GAS Industry? And finally as a member of PETAN, what do you think is the role the association is playing towards reaching this objective?
SDF as a 100% indigenous company has played the role of a local participator in some contracts/projects with some multinationals. We therefore advocate for awareness in the manufacture or fabrication of locally available materials and manpower to achieve goals. For example, SDF fabricates Skips, Tanks and some other equipment. This reduces the import of equipments and saves cost for the indigenous company.
Some of the indigenous companies are financially handicapped and we urge the Government to introduce a programme that will assist such companies financially and otherwise.
PETAN is an association of a group of Nigerians whose primary aim is to discuss common problems and proffer solutions. I am a foundation member and one of the strongest advocates of PETAN. We felt it was better for us to come together as a team to express our concern and at the same time present it to the government and to the multinationals. PETAN is neither politically motivated nor confrontational but an avenue to reach out to the Government and multinational companies and bring to light the capabilities and potentials of indigenous companies. If the indigenous companies succeed they can ease some of the problems of the government. No nation succeeds without a private sector. The business group is what actually drives any nation's economy.
The renewed focus on economic development in Nigeria has strengthened the commercial partnership between Nigeria and the UK. This is especially evident in the Upstream Sector of the O&G Industry where Indigenous Producers are forming partnerships with UK based multinationals such as Shell and British Gas. Dr. Eze, as the leader of a company with a strong international connections could you tell our readers: what do you think the Nigerian O&G industry represents to potential UK investors? How is SDF looking to partner with potential UK investors or operators in Nigeria and abroad?
Nigeria offers a lot of opportunities to foreign companies. There is so much to do in all sectors, and definitely the Oil and Gas sector is the one that should matter the most to British companies. As for us we are very interested in partnering with potential foreign operators. We have been able to attract the interest of some foreign operators in waste management which is our specialty, but in drilling we still welcome any partnership or collaboration with foreign companies.
As you know, Nigeria is still perceived as a "risk market" by international investors, due to the prospect, of corruption and security. We have been working very closely with the NSE to change this perception through the NSE International Investor Road show program, aimed at reaching out to potential international investors, in the large Nigerian Diaspora and otherwise, that may be interested in investing in the Nigerian Stock market. Mr. Eze, as a representative of both companies, please tell the readers of the Independent: what role can SDF as a Nigerian success story in the oil services sector, play in helping to improve Nigeria's international image? More generally, why should International Investors feel confident that Nigeria is no more a "risk market" than, other countries?
I have always said that it takes two to tango, and in the case of corruption there is always a giver as well a taker. Therefore blame should be apportioned appropriately. The Government of Nigeria however is implementing a strong and assiduous fight against corruption through the EFCC, the ICPC, and already fruits of these efforts are to being seen in daily newspapers. It is no longer easy as before to move money abroad. The system in place is ripping its fruit, we just hope it will last and the results will be seen in the years to come. On a general note, for an investor who wants to come in and take advantage of the enormous opportunities that exist in Nigeria, I would advise that they enter the country through the "right doors", meaning contacting the right institutions and not exposing themselves to the caprices of dubious people. There is need to undertake due diligence when you want to invest in a foreign country. The right institutions will guide and direct you to the right people and companies.
In Closing, What you would like your legacy to be from your time as MD, Mr. Eze?
I have contributed so much to SDF to make it become the foremost indigenous company in Oilfield Drilling Waste Management.
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