VURIN Redefines Progress in Local Content Terms
“Success is better depicted when solutions are innovatively created and subsequently curated around perennial challenges; thereby enabling collective capturing of value within an ecosystem, that ultimately results in forward momentum for the industry.” _ Ude
Victor Ude, the Group Chief Executive Officer of VURIN, a leading Nigerian oil and gas services company in this interview with JEROME ONOJA, after a session he moderated at the just-concluded NOG conference in Abuja, speaks on the company’s overarching objectives of providing Oilfield procurement, Installation, Maintenance and repair services, anchored on consultative guidance, just as he advocated for the local content law, as well as the need for compliance and enforcement in the oil and gas industry. Excerpts:
Could you please give us highlights of the panel that you moderated earlier today?
The panel provided industry players the opportunity to get a front row seat as to the thinking of key enabling agencies, both NCDMB and NIMASA, as it relates to compliance and enforcement within the oil and gas industry value chain. The panel also focused on capacity deficit and how both agencies were bridging the gap either through special intervention funds and/or through training of seafarers, the judiciary and other means. The need to simplify administrative engagement by simplifying processes was also discussed at length. We also examined the concept of the carrot and stick approach to get a pulse check and determine which arguably works more effectively.
Earlier in the day, we listened to the Deputy Managing Director of TOTAL, Mr. Ahmadu-Kida Musa, sharing Total’s remarkable achievements from embracing and advocating the benefits of local content on the Egina project and the perception I got from that is, it didn’t take enforcement to motivate Total, it took vision, a seismic shift in mindset within Total, that was based on sound economic principles, with pay not necessarily being immediate but anchored on a longer term horizon. It is these sorts of results that make local content seem less academic to skeptics and help bring more converts to the fold for systemic gain.
As an investor in the industry, what are some challenges that may not have been looked at?
Challenges vary from one vested player to the other; each player has different personae and as such motivated differently. For example, both the regulator and the producer seek different outcomes from the prevailing fiscal regime and as such will support contrasting regime application. However, common to all will remain challenges to lower production costs and efficiencies, accelerate contracting cycle and execution times, improve security and relations with host communities, amongst several others. Given the importance of host communities and the need to sustain operational stability, it might be necessary for NCDMB, as part of its capacity development initiatives, to include the compliance and enforcements of global MOU’s executed with host communities, as part of its overarching responsibilities, which should enhance trust and confidence within host communities. Nonetheless, the assent of the PIGB will hopefully minimize the uncertainties emanating from all of these challenges.
What’s the next big thing we should be expecting from Vurin?
We are strategic thinkers. We are innovative. We are also plumbers that have found some interesting leaks, which we are currently working on plugging; upon completion will generate cohesive and sustainable value for the industry.