Local content drive: How procurement firms in oil/gas are transforming to tech solutions companies

Local content drive: How procurement firms in oil/gas are transforming to tech solutions companies

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Read History Go to My Account Log Out Enhanced by Google BDSunday Local content drive: How procurement firms in oil/gas are transforming to tech solutions companies The Nigerian content drive launched since 2010 seems to achieve an unintended but sensitive outcome, a transformation from ‘componenting’ to

Listen to this article Share The Nigerian content drive launched since 2010 seems to achieve an unintended but sensitive outcome, a transformation from ‘componenting’ to breakdown or repairs technology. Experts explain this to mean a shift from wholesome replacement of components to breaking down faulty components and repairing them so as to re-install what looks as perfect as it was.

This has also led to the emergence of a hub of local tech companies that have transformed from procurement agents of foreign manufacturers to competent tech firms that now carry the weight of the hydrocarbon industry.

Early in the week, industry experts gathered at the Eliozu area of Port Harcourt to witness the unveiling of one such tech firm, Chesdon Engineering Limited, which actually operated as a procurement firm and agent for foreign manufacturers. It now specializes in repair of components and training of graduates to become ready for the industry, fit for purpose. Dakuku Peterside, management expert, who gave talks on ‘Growth’

The boost in the Nigerian content drive is said to have moved Nigeria’s local; content from below 5% to 61% in just 15 years. It shares destiny with other successful companies such as Solewant group that began as agent of foreign paint and coating manufacturers, now to leading producers for Nigeria and beyond.

The Nigerian Content Development and Monitoring Board (NCDMB) says it is achieving this by shifting attention to the midstream and downstream sectors as the next drivers of investment, industrialisation, job creation, and economic growth.

Nigeria’s oil and gas industry is now said to largely run on in-country technology and engineering resources.

This is said to have thrown up some initiatives and results from Nigerian companies who have dug deep to fashion out world class components and pieces that solve problems.

The most exciting aspect, according to experts that gathered on Tuesday, November 3, 2026, at Chesdon Engineering Centre, is the emergence of repair technology instead of the very expensive practice of imported replacement.

It was thus gathered at an unveiling of advanced centre for Chesdon Ltd in Port Harcourt that companies that have acquired the skills now hold the ace in the industry, handling repairs instead of replacement schemes, bring down costs of operation and facilitating faster turn-around-maintenance (TAM) in the industry.

The biggest benefit has been job creation especially for graduates in the oil region and creating deployability of graduates to fit into the industry, unlike before.

These were the major highlights at the unveiling of the services centre and head office of Chesdon Engineering Limited in the Eliozu area of Port Harcourt.

One the value the Chesdon initiative has brought to Nigeria and the local content question, Nnadozie Dunu, the CEO, mentioned deployability of Nigerian graduates. He called it creating industry-ready workforce through the world-class training system in Chesdon Engineering.

He harped on the ugly experience of the past when the industry hardly found any graduate suitable for immediate deployment, and said Nigeria has achieved the feat of having a reservoir of deployable graduates. He called it ‘responsiveness’ in the industry.

“One of the things that I pride myself with is that we have a team of very young engineers, and they’re all hungry to make a difference. I’ve read where somebody said that there is an employability gap. And the truth about is, does it exist? Yes. But, are they trainable? Yes, they are. So, what we always 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.”

On job creation as another value created by Chesdon, the CEO said: “We’re based in the Niger Delta. While I don’t make a fuss where anybody comes from, but unconsciously, I just realize that a lot of our team members are from around the area. So, that’s employment.

“In addition to that, we are now overwhelmed with requests for training. We now have young technicians doing on-the-field trainings and jobs. So, we expose them to turn-around-maintenance (TAM) works going on. We put them there, and that’s the best. You can’t take away experience. You can’t take away what you’ve learned.”

He said: “That’s why we’re going to mention the fact that more major projects can now rely on us.

“More oil and gas projects are relying on locally available tech and Nigerian engineers. So, with what we’ve exhibited, one company has given us the opportunity, but I’m sure you’ll see the excitement with all the others that came in. And we’re hoping that more companies will give us the opportunity to play in the asset integrity space.”

In his speech, he said: “With the trajectory we are on, we expect to outgrow this facility in a few short years and expand across multiple locations once again.

“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.”

He disclosed the secret, saying two major developments accelerated this shift: “First, Brook Crompton Motors—a 127-year-old global leader in electric motors—selected us as their strategic partner, not just for Nigeria, but across Sub-Saharan Africa.

“Second, Dixon Valves and Hose company a 110 -years old company designated us as their official partner in Nigeria.

“These high-level partnerships created a clear responsibility and hunger within us to build robust local capability, delivering world-class after-sales support for electric motors, valves, and bespoke hose assemblies.”

He said the market is shifting from expensive equipment replacement to high-reliability repairs—cutting both capital expenses (CAPEX) and operating (OPEX).

“What you see behind me is our answer to that market demand built with sustainability in mind. Our nearly 300sqm flat roof is covered with solar panels with tomorrow power demands in mind. All wireless access, cloud data storage.

“It is concrete evidence of our commitment to marrying skilled local manpower with internationally accepted testing standards—giving operators a proven, cost-effective alternative to extend equipment lifespan without sacrificing quality.”

He revealed that core focus of the tech as Electric Motor Overhaul & Repair (up to 1000kW); Valve Repair & Recertification (across all classes); and Bespoke Hose Assembly & Testing (up to 8 inch hoses)

He declared: “Every spare part and repaired asset that leaves our workshop undergoes rigorous quality assurance. To my left, you’ll see our DNV-certified 10-foot test bench, ready for both onshore and offshore operations. In the workshop behind me, we have installed state-of-the-art calibration equipment for instruments, motors, and remote valve testing.”

Saying this is only phase one, he said their valves workshop has already been delivering results. “Since 2024, we’ve supported some of the largest indigenous producers in the region ramp up production.

To show the huge prospects that lie ahead in the industry for local tech players, Dunu said: “Just this past Monday (Oct 26th), I told my team that after many years, we have finally succeeded in bringing our entire business under one roof. But I also told them: don’t get too comfortable. With the trajectory we are on, we expect to outgrow this facility in a few short years and expand across multiple locations once again.

“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.”

He mentioned two major developments that accelerated the shift: “Brook Crompton Motors, said to be a 127-year-old global leader in electric motors—selected us as their strategic partner, not just for Nigeria, but across Sub-Saharan Africa. Next is Dixon Valves and Hose company, a 110-year old company which designated us as their official partner in Nigeria.

“These high-level partnerships created a clear responsibility and hunger within us to build robust local capability, delivering world-class after-sales support for electric motors, valves, and bespoke hose assemblies.

“At the same time, we paid close attention to the shifts in our operating environment. As international oil company (IOC) assets transitioned to Nigerian oil company (NOC) energy producers are under intense pressure to lower operating costs. The market is shifting from expensive equipment replacement to high-reliability repairs—cutting both capital expenses (CAPEX) and operating (OPEX).

“What you see behind me is our answer to that market demand built with sustainability in mind. Our nearly 300sqm flat roof is covered with solar panels with tomorrow power demands in mind. All wireless access, cloud data storage.

It is concrete evidence of our commitment to marrying skilled local manpower with internationally accepted testing standards—giving operators a proven, cost-effective alternative to extend equipment lifespan without sacrificing quality.”

He mentioned the core focus of Chesdon that rests on three pillars: Electric Motor Overhaul & Repair (up to 1000kW); Valve Repair & Recertification (across all classes); Bespoke Hose Assembly & Testing (up to 8 inch hoses)

“Every spare part and repaired asset that leaves our workshop undergoes rigorous quality assurance. To my left, you’ll see our DNV-certified 10-foot test bench, ready for both onshore and offshore operations. In the workshop behind me, we have installed state-of-the-art calibration equipment for instruments, motors, and remote valve testing.

“And this is only Phase One. In the coming days, we will take delivery of additional advanced testing equipment to further expand our electric motor division.

“Our valves workshop has already been delivering results. Since 2024, we’ve supported some of the largest indigenous producers in the region ramp up production.”

He particularly showered appreciation to the executive team from Heirs Energies; “For believing in us and entrusting us with such critical responsibility. In an environment where personal influence too often overrides merit, I am actually meeting some of these executives in person for the very first time today. You judged us strictly on our track record and commitment to excellence.”

Speaking on excellence, Dunu mentioned their team (a crop of young professionals, hungry to be change makers, you did it, on to the next); Dakuku Peterside, Chris Ugoh, his spiritual father, his nearly 80-year-old mother, to his family,

Earlier, some persons said to be committed friends of the venture spoke in testimony. Chris Ugo, head of the Just Assembly Church, spoke on leadership as what pulls all other things. He however tied it all to first finding Christ. “Nobody can do what Chesdon Engineering has done here except God be with you. The foundation ceremony was laid not up to one year now. If God’s mercy does not circle a city, enemies will overtake it. God’s presence brings favour, blessing, success, etc. See Joseph in the bible.”

On his own, Dakuku Peterside, economist, management expert, and one-time Director-General of NIMASA, harped on growth. “Growth is critical to life and existence, and we are here to celebrate growth.

“Everything in life flows from growth because even a baby begins to grow and then crawl, walk, run, excel, and even transit to heaven. If you don’t grow, the environment will move and leave you. Organisations are wired for growth; else, they die or be acquired. Chesdon is growing because people refer to them and demand for them”.

Industry experts and guests left the event with one thing in mind; that the facility marks an important milestone in the growth and expansion of Chesdon Engineering Limited and the tech industry in oil and gas.

Dunu said: “It reflects our continued commitment to building a stronger local platform for the delivery of quality engineering and industrial services.

“The Service Centre and Head Office will bring together our corporate, procurement and service operations, providing a more structured platform from which we can serve our clients and support businesses across various industries.

“The facility will also support manpower development and practical skills training, as part of our commitment to developing local talent and strengthening indigenous capacity. It also marks the takeoff of the next phase.”

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Reported by businessday.ng.

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