In the face of a relentless global recession, nations across the world find themselves in an endless pursuit of solutions to counter the recession’s harsh impact on global economies. From the boardrooms of multinational corporations to the vibrant markets of the informal sector nestled in rural towns, the quest to foster opportunities, both direct and indirect, has become paramount.
Shefa Engineering Limited, an engineering company with interests in the upstream sector of Nigeria’s oil and gas sector, is a company driven by a vision to become a leading engineering entity in Nigeria and West Africa. The company aims to achieve this by leveraging innovative solutions and a world-class service delivery method that, in turn, drives job creation and economic prosperity.
Shefa Engineering has become a significant contributor to the Gross Domestic Product (GDP) of several oil-producing countries across West Africa through its broad range of services provided to stakeholders in the oil and gas sector. These services include but are not limited to deep water and marine solutions, well optimisation and downhole services, as well as engineering construction and pipeline solutions.
Notably, the energy sector is a highly competitive space with a unique set of opportunities and challenges. To create the most impact in the value chain, ensuring profitability for stakeholders and resulting in measurable outcomes in the economy, Shefa Engineering banks on a set of principles shaped by the best ethical standards that prioritise the safety of people and their immediate environment during its exploration and production of crude oil. The company achieves this through its proactive measure of recruiting the best professionals and Implementing efficient systems.
Over the years, the engineering company has achieved a marked impact in the area of job creation. Aside from personnel that make up Shefa Engineering’s staff directory, its operations also create demand for supporting industries such as original equipment manufacturers (OEMs) and logistics companies. The influx of these professionals into a region, in turn, creates demand for local services such as housing, schools, healthcare, retail, restaurants, and other amenities.
As is the case in Nigeria, the exploits of the oil and gas industry have proven to be directly linked to the development of remote communities that sit atop swathes of unexploited crude oil reserves. The 2021 Petroleum Industrial Act (PIA) mandates that 3% of the operating expenditure of oil and gas companies should be allocated to the development of the host communities in which they operate. The fund in the trust will be allocated as follows: 75% for capital projects in the communities, 20% will be deposited to the reserve fund for future use, and a maximum of 5% to oversee administrative costs. Failure of any company operating in Nigeria to adhere to this will result in the revocation of the company’s operating licence.
The PIA is intended to promote social development and reduce tensions in oil-producing regions. With a rise in the number of indigenous energy companies and their contribution to local content development, more and more oil-rich communities benefit from this statutory requirement.
As of 2021, the oil and gas sector contributed 6.25% to the national GDP (as reported by The World Bank). The same sector also accounted for 95% of Nigeria’s foreign exchange earnings and 80% of its budget revenues, proving that the efforts of energy companies go a long way in providing economic prosperity for all.
Furthermore, Shefa Engineering has significantly contributed to economic growth through its active corporate social responsibility (CSR) projects in host communities. These initiatives involve employing individuals with the relevant skills for specific projects, providing training to community members and equipping them with essential skills that lead to economic gains.
With oil and gas as the primary energy source globally, there is immense pressure to keep up with demands. The process of exploration and production of crude oil at the upstream level is a highly complex one that requires capital-intensive infrastructure to run smoothly. At this stage, drilling rigs, drill bits, drilling fluid, and various other tools are essential for successful operations. Shefa Engineering offers the relevant infrastructure to support and initiate operations in the upstream sector. This stimulates not only economic activity but also attracts additional investment. However, its most significant role lies in assisting oil-producing countries in generating revenue through oil exports by ensuring sufficient supply.
In the past, oil exploration and production earned a notorious environmental reputation, mainly due to crude equipment used in the upstream sector. This is changing. To extract crude oil effectively and efficiently from its natural reserves, state-of-the-art technology plays a crucial part in reducing adverse environmental impacts such as water and air pollution, soil contamination, and climate change.
On Shefa Engineering’s part, the company has introduced advanced technologies and expertise across its different portfolios that cover well construction and production services, as well as integrated services, to tackle these environmental issues while serving as a vessel for knowledge transfer and skill development among the local workforce. Through this avenue, technology introduced by the engineering company can spill over into other industries, contributing to overall economic diversification and growth.
Driven by its core values of Service, Honesty, Excellence, Flexibility, and Accountability (SHEFA), the industry-respected engineering entity acknowledges the role collaboration plays in identifying challenges within its purview and providing veritable solutions. Its strategic collaborations with National Energy Services Reunited (NESR), an oilfield service provider in the Middle East, North Africa, and Asia (MENA) region, for well production services; and ADES International Holding Limited, an oil and gas drilling contractor in the Middle East and Africa, to provide drilling services in Nigeria, has been proven highly successful.
Over time, Shefa Engineering’s emerging journey will stand as a testament to the power of ingenuity, dedication, and unwavering commitment to progress. Through its relentless pursuit of excellence, it has not only contributed to job creation and economic prosperity but has also become an emblem of hope for a nation forging its path towards greatness. With each new project, Shefa Engineering Limited reaffirms its place as a driving force behind Nigeria’s economic growth and prosperity.
