Relentech provides top-to-bottom services in the field, gaining the company a reputation for excellence.

The oil and gas industries are by far the most important part of Nigeria’s economy, together providing nearly 80 percent of the government’s revenue. Relentech Specialists Nigeria Ltd., a 100 percent Nigerian-owned oil field services supplier, is one of the many companies that is working to keep that oil wealth within the country, rather than have most of it go to foreign-owned businesses.
With proven crude oil reserves of 35.2 billion barrels and plans to increase that amount to 40 billion barrels by 2010 – according to the Nigerian National Petroleum Corporation (NNPC) – the industry has enormous further potential to enrich the country and provide more jobs and opportunities for Nigerians.

Three new refineries are expected to come online this year, and the government has issued 13 licenses to build new, private refineries. About $7 billion in new investments will be necessary to increase crude output to meet production targets, the NNPC says, providing companies such as Relentech with fertile ground for growth.

The natural-gas industry is another area that is overflowing with opportunities for companies that are positioned to provide services. Nigeria has gas reserves of 185 trillion cubic feet, and the NNPC estimates that $15 billion in investment will be needed to meet the goal of boosting revenue from natural gas to 50 percent of the level of revenue from oil by 2010.

Relentech can provide oil and gas producers with much of what they need to start or boost production, including installing casing and tubing in oil wells, electrical equipment installation and a series of training and consulting services. The company can work at sites on drilling platforms, in swamps and other onshore areas.

Relentech's emphasis on constant innovation is a big plus for its clients, says Sergius I.O. Oguns, the company’s chief executive officer and managing director.

“Our core business, which is casing and tubing running, is dogmatic – our competitors as well as the operators do not see the need for any new technology. As a company we have a policy of introducing a new technology once we have gained client acceptability. This usually gives a whole lot of comfort to our clients as our job is done safely and in less time.”

Sergius I. O. Oguns CEO and MD of Relentech

Nigeria is the eleventh-largest oil producer in the world, and the second biggest in Africa, and the world's biggest oil companies all have operations there. Relentech counts ExxonMobil Corp., the Shell Group, Chevron Corp. and Total (Elf) among its clients.

While plans to expand production will boost sales for Relentech, the Nigerian government's latest program to spur greater use of local providers by foreign operators will also help. The program was first proposed in 2005 and is currently nearing approval in the National Assembly.

The energy industry in Nigeria spends about $12 billion annually, with more than half – 54 percent – channeled into procurement. Another 26 percent is spent on fabrication and installation, and the remainder goes to engineering and construction. These are all areas where Relentech can offer its services, and the company is in fact already benefiting from the increased emphasis on local content.
“The Nigeria Local Content Policy is no doubt bearing fruit,” Oguns asserts. “With the advent of the Local Content Policy, where operators were required to advertise their services, we tendered for services and won and we are working for most of them today. The barrier that was hitherto present was lifted by the Local Content Policy.”

Even with the boost from the policy, Nigerian companies face various hurdles. One is a lack of qualified local workers. Relentech's solution to that problem is to provide extensive training programs in areas including basic well-engineering technology, well-casing design, drilling management, project management and, of course, advanced safety leadership.

Another difficulty is financial. As with businesses anywhere in the world, Nigerian companies need funding to expand, and with high domestic interest rates, that can be a problem, Oguns explains.
“I would say the greatest need of the domestic sector at the moment is operating capital. The interest rate stands at 17 percent per annum. Given that local companies do not have access to foreign funds, it becomes very difficult for firms to get a breakthrough as this is a barrier to growth.”

Nigeria's reputation as a country where it is difficult to do business also gets in the way. That reputation is undeserved, Oguns says, as there are already many businesses that are operating profitably in the country and that can use outside investment from around the world.

“There are so many companies in Nigeria doing legitimate business, these companies know that the world is a global village and that they cannot go it alone, so they are open to foreign investors,” Oguns says. “Nigeria, like any country in the world, has laws. If any genuine foreign investor takes the time to check the law relating to foreign investors before tying up with any legitimate existing business concern in Nigeria, 100 percent of the time it will be win-win.”

Companies such as Relentech, which are dedicated to excellence, are the proof of that statement. Since it was founded in 1989, it has gained a reputation for high-quality work, innovation and an openness to new ideas and methods that continue to gain it new clients and projects.

“At Relentech we do not claim to know it all, and we are always willing to learn,” Oguns states. “When the operators we service recognized that, despite our high standards, we are always willing to exceed their expectations, we get maximum co-operation in the field whenever we are called out to work.”