A number of leading local and international private equity and investment firms are said to be actively looking into potential investments in Nigeria’s oil services sector, with Century Energy Services Limited (CESL) at the top of list of firms the investors have indicated interest in.
Oil industry sources hinted at the weekend that the signing of the Local Content Act into law in 2010 has attracted the attention of global investment community in the Nigerian oil and gas sector. They noted that with local content still only in its infancy, the potential for further growth in the upstream, midstream and downstream arena is considerable.
CESL, an indigenous integrated energy company, which provides oil and gas services, has proven expertise in operation and maintenance of offshore production and storage facilities.
The company is wholly owned by Century Group, an industrial group operating in the energy and non-energy sectors. Although details of the proposed investment opportunity were not known at press time, a source said they are oil services jobs, CESL’s areas of specialisation. “It is clear that there is rapid growth and expansion in the oil services sector following the implementation of local content legislation”, he said.
Through its joint venture with Malaysian partners, Bumi Armada in Nigeria, CESL has built a significant presence locally, and has also acted as the catalyst for explosive growth at Bumi, which has grown into a US$10 billion global enterprise. The early partnership between Bumi and Century marked the Malaysian company’s early moves into the services sector and has become the base for their global success. “The firms involved are clearly keen to diversify their investment portfolio and the expected injection of capital will provide an additional boost for already-thriving Century to widen its scope of activity,” added the source.