GPPSL: Sound Corporate Governance Will Enhance Oil Service Companies

The Managing Director of Global Process and Pipeline Services (GPPS) Limited, Mr. Obi Uzu, has stressed the need to building sound corporate governance among operators in the Nigerian oil and gas exploration and production business.

Uzu specifically stated that the corporate governance structure guiding any oil operator could be a major confidence boost for oil service companies that render their services to oil and gas companies.

“One of the most important things you seek from an oil operator you intend to work for as a service company is good corporate governance structure, especially in terms of their ethics and commitments,” Uzu said.

The oil industry expert stated this during the panel session on ‘Pivoting Upstream Petroleum Regulation and Investment’, at the recently held 6th edition of Nigeria International Energy Summit (NIES), in Abuja.

According to the GPPSL chief executive, other factors apart from good corporate governance structure which oil operators can use to endear themselves to service companies, include reliable process systems and dependable risks hedging.

“Before you commit your resources as a service provider to work for an oil operator, part of your due diligence is to be sure that all your risks are well hedged be it financial, technical or non-technical risks either through bank guarantees, upfront payment or the perception that you will even be paid at the end of your service delivery,” he said.

While reiterating the key contributions by service providers, he said a lot of the innovations witnessed in the upstream oil and gas sector could be traced to the activities of service companies.

“Oilfield service providers play crucial roles in the upstream oil and gas industry as frontline provider of equipment and expertise for the largest national oil companies and the smallest of independents,” Uzu added.