Nigeria’s Oil Sector Shifts to Local Repairs As Operators Seek Lower Costs, Cut Imports
Blessing Ibunge in Port Harcourt
Nigeria’s drive to reduce dependence on imported oil and gas equipment and lower operating costs is gaining momentum as indigenous engineering firms expand local capacity to repair and maintain critical equipment used across the industry.
The latest development is the inauguration of a new engineering service centre by Chesdon Engineering Limited in Port Harcourt, Rivers State, aimed at providing specialised equipment repair and testing services for onshore and offshore oil and gas operations.
The facility offers electric motor overhaul, valve repair and recertification, as well as specialised hose assembly and testing, providing operators with a local alternative to the costly replacement of damaged equipment.
Speaking at the official opening and dedication of the service centre and head office, Managing Director and Chief Executive Officer of Chesdon Engineering, Nnazoba Dunu, said the investment reflected the company’s transition from an equipment procurement business to an integrated engineering services provider.
“What you see behind me today is a major milestone in our strategic evolution, transitioning Chesdon Engineering from a pure procurement partner into an end-to-end service and solutions company,” Dunu said.
He said the changing ownership structure of oil and gas assets and growing pressure on indigenous operators to improve efficiency were creating new opportunities for local engineering companies.
According to him, the industry is increasingly moving away from expensive equipment replacement towards high-reliability repairs that can reduce both capital and operating expenditure.
“The market is shifting from expensive equipment replacement to high-reliability repairs, cutting both capital expenses (CAPEX) and operating expenses (OPEX),” he stated.
Dunu said despite significant progress in Nigerian content since the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010, substantial opportunities remained in equipment maintenance, technical services and engineering support.
“The facility can overhaul and repair electric motors of up to 1,000kW, undertake valve repairs and recertification across all classes, and assemble and test hoses of up to eight inches.
“It is also equipped with a DNV-certified 10-foot test bench for onshore and offshore applications, alongside specialised calibration equipment for instruments, motors and remote valve testing,” he said.
Dunu said the company had supported some major indigenous oil producers since 2024 and was investing further in testing equipment while expanding its technical workforce.
He stressed that developing Nigerian manpower was central to the investment.
“What we prefer to do is take up young graduates, train them and get them to do exactly that work that can be done anywhere outside this country.”
Chairman of the event and former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, described the investment as evidence of organisational growth and the ability of indigenous companies to respond to changing market demands.
“Organisations are wired for growth; else, they die or are acquired. Chesdon is growing because people refer to them and demand for them,” Peterside said.