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Sunday Okobi
Following a historic FlexSteel pipeline deployment that cut project timelines by 80 percent, the Chief Executive Officerof Kenyon International, Dr. Victor Ekpenyong, has disclosed how local innovation is filling the gap left by exiting international majors.
The Nigerian oil and gas industry is going through a massive structural shift. As legacy international oil companies (IOCs) sell off their onshore and shallow-water assets, homegrown Nigerian firms are doing much more than just keeping the lights on; they are modernising the entire operation.
A prime example of this shift is Kenyon International’s recent work at OML 123. The company successfully deployed Nigeria’s first FlexSteel unbonded flexible pipeline system, cutting the project execution timeline by 80 percent. For a country looking to maximise its mature assets quickly, this approach offers a faster, more cost-effective way to get resources out of the ground and into the market.
In celebration of Africa Day, we chattedwith Dr Ekpenyong on how composite pipeline technology changes the financial equation for operators, the reality behind the IOC divestments, and why Africa’s energy infrastructure is increasingly being built by local hands.
Seizing the Market: The Imperative of Speed
This technological leap is fundamentally about speed, which is a critical factor in a shifting global market. As Dr Ekpenyongsaid the urgency cannot be overstated: “In life, you always need to take advantage of opportunities that present themselves. Back in March 2022, the war in Ukraine broke out; all of a sudden, global energy demand shifted, and prices jumped. For operators in the Gulf of Guinea who have been able to meet their OPEC quota, this has translated into significant commercial value and a critical window for growth. Speed is essential because it allows our nation to earn vital foreign exchange during these market windows.”
For decades, operators managing mature assets from the 1950s and 1960s operated strictly on economic metrics, weighing the cost of halting production to replace an expired pipeline against patching it. But missing out on surging global oil prices is highly detrimental. To address the critical infrastructure deficits that delay production, Kenyon International partnered with a Houston-based company, FlexSteel, to bring Reinforced Thermoplastic Pipes (RTP) technology to Nigeria.
”We approached a customer who had thousands of barrels deferred and deployed this technology in less than 5 months,” Ekpenyong reveals. “This specific project has already boosted Nigerian production. If we aggressively deploy this to revamp the hundreds of kilometres of expired pipelines in our shallow waters and land swamps, Nigeria may not even need to drill more wells to hit two million barrels of oil per day.”
Rethinking the Cost-to-Benefit Ratio
Modern engineering is demanding faster, more resilient alternatives to traditional carbon steel, changing the cost-to-benefit ratio entirely. “If you want to lay a typical carbon steel pipeline, it takes an enormous amount of time and resources. You need to bring heavy equipment to the site, spend considerable time welding the pipes, and execute critical non-destructive testing (NDT) to ensure integrity. It is a long, arduous process,” Ekpenyong explained.
”This composite technology, however, is all about time. If we were to execute the project we just finished using conventional steel pipelines, it would have taken at least a year or more. We did it in less than 90 days. From shipment in Houston to deployment, the entire cycle took us less than a year, and the on-site execution was under 90 days. By working day and night, we saved the customer a massive amount of money.” He adds that RTP technology does not require continuous inspection, significantly reducing the risk of corrosion-induced leakages and preventing the costly deferments that plague legacy steel lines.
Closing the Maintenance Gap with Indigenous Hands
There is a lingering assumption that as Legacy International Oil Companies (IOCs) execute multi-billion-dollar exits from African shallow and onshore assets, a maintenance gap will swallow the industry. We should not be worried, because indigenous hands are more than capable.
According to Ekpenyong, “I can tell you that this project was done entirely by indigenous companies. The operator is indigenous, and we, the company that deployed the technology, are indigenous as well.
“Many local companies taking over these brownfield assets are investing heavily to revamp them, and they are utilisingcompanies like ours to do so.”
He noted that Nigeria is blessed with smart and technically sound people, adding: “I am a member of the Petroleum Technology Association of Nigeria (PETAN). Nigerian companies are now exporting technology and expertise to Kuwait, India, Uganda, and other African countries. We are helping them with local content and technology support. So, just because the IOCs are leaving does not mean the Nigerian oil and gas industry is going down. Nigerians are trained experts and are fully capable of manning and running this industry.”
The PIA Catalyst and Nigeria’s Gas Revolution
Historically, regulatory uncertainty stalled massive foreign investments. Today, the Petroleum Industry Act (PIA) is working aggressively to unlock global capital and ease concerns about regulation.
“You can see that it is,” Ekpenyongconfirms, adding: “Since the PIA was signed, we have seen many Final Investment Decisions (FIDs) enter the country. Major deepwater and gas monetisation projects that were held back for years are finally moving forward. The PIA has facilitated these developments.”
Nigeria holds over 30 billion barrels of oil reserves, but more importantly, it holds 210 trillion cubic feet of gas, making it a premier gas nation.
“Our gas reserve life index is about 92.7 years. Even if we start producing gas aggressively today, it would take us over 92 years to exhaust it. The PIA has unlocked these opportunities, allowing foreign investors to see Nigeria as a premier gas nation. The PIA is serving as the ultimate catalyst for the foreign direct investment currently flowing into the sector,” Ekpenyong stated.
However, unlocking these resources requires overcoming major infrastructure hurdles, as domestic utilisation remains at just 1.5 per cent.
On this, the CEO said: “The number one challenge is funding and investment, which the PIA has helped to attract. Moving forward, the physical infrastructure must be built out to catch up.
“We are already seeing major steps being taken. Just recently, the NNPC achieved a magnificent milestone by laying a river-crossing pipeline designed to bring gas to the domestic market. Because of the PIA, we are going to see a massive rollout of gas distribution projects aimed at achieving the Federal Government’s targets for domestic industrialisation. That is exactly where our flexible pipeline technology will play a major role, as it will allow us to transport that gas to domestic markets and industrial consumers much faster than legacy methods.”
Leading the Mega-Projects of Tomorrow
Ultimately, the goal of regional energy integration is within reach, and mega-projects are taking centre stage to monetise the continent’s resources. The Nigeria-Morocco gas pipeline is the perfect example.
”The Nigeria-Morocco gas pipeline cuts across about 14 West African countries. The main purpose is for Nigeria, which has the largest gas reserves in Africa, to export gas via 7,000 kilometres of pipeline to Morocco and ultimately supply Europe,” Ekpenyong explains.
Who will build this massive future? African firms will lead the infrastructure build-out. “These massive networks are usually built by Africans. Nigerian companies will be the ones to lead the Nigerian side of the project, while other African companies will tie in their respective ends before it moves into North Africa. This project plays a critical role in showcasing indigenous capability. It tells the world that massive infrastructure projects do not have to be done only by foreign multinationals; Nigerian companies and PETAN members can spearhead them.”
The message is unmistakable. By rewriting the playbook and relying on indigenous innovation, we are proving that the future of Africa is already being built by African hands.
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