Experienced, Self-Driven & Results Orientated

More locals involved in energy

Indigenous piping specialist Damagix boosts local content in the oil & gas sector
by Lawrence J. Ireton

Endowed with estimated oil reserves of 37 billion barrels, the petroleum sector is a rich vein of income for Nigeria. Its oil sector provides 95% of the country’s foreign exchange earnings and around 80% of its budgetary revenues. Daily production of 2.2 million barrels puts Nigeria in 14th place among the world’s top oil producers. Exports of 2.1 million barrels per day also make it the fourth biggest exporter in the world.

Initiatives are under way to see more equitable benefits for Nigerians from the country’s immense oil wealth. To spur greater employment opportunities for the nation’s 155 million inhabitants and increased retention of “industry spend” in the country, in 2010 the government introduced the Nigerian Oil and Gas Industry Content Development (NOGICD) Act that specifies minimum levels of local content, and requires all foreign companies to partner with indigenous companies for investment in the oil industry.

“We have been part of local content development long before the new law came in and so we were ready for it,” says Dahiru Mohammed, Chairman and CEO of Damagix Nigeria and an active proponent of greater Nigerian content in oil and gas projects. “Local content has shown that Nigerian entrepreneurs are capable, and can do the task in hand provided that a few things are put into place, like financing.”

Damagix is 100% Nigerian and the leading indigenous supplier of casings, line pipes, and oil country tubular goods (OCTG) to all major operators in Nigeria’s oil and gas industry. This year it will begin the construction of the country’s first pipe mill.

The company also offers comprehensive engineering and consultancy services and has increased its capacity and expertise through strategic collaborations with technical partners overseas.

“Fifteen years back there were only a few Nigerian companies that could proudly say they had a million-dollar project in the oil and gas industry,” says Mr. Mohammed. “But not long after we started the campaign on local patronage [now ‘Nigerian content’] a Nigerian company won a $400 million project. Today, Damagix is proposing a $5 billion project, on a contractor-finance basis. This is huge growth in local content development.”