Oil field service companies

The Nigerian petroleum industry derived its roots from early exploration and production activities pioneered by the Nigerian German Butimen Company in 1908. Exploration and production entail various functions which require collaborative efforts of different companies. In practical terms oil and gas production requires the technical input of Oil Field Service Companies (OSCs) in the provision of an array of services in order to successfully develop and produce an oil field. In the early years of oil exploration and production the upstream sector may not have been distinctly defined. This is understandable because the industry was at the early stage of development and therefore unsophisticated. The tempo and scope of exploration and production activities have changed drastically thereby warranting advanced technological input from OSCs. In the case of Nigeria, one can posit that OSCs evolved at about the same time as the early exploration and production activities. The historical origins of these companies in Nigeria are not adequately captured. However, it can be assumed that some of the early OSCs in the Nigerian petroleum industry may have operated as units or affiliates of the pioneer oil companies. The rapid expansion of the industry and the escalation in the demand of petroleum products globally has warranted the introduction of high precision technology to produce oil and gas in a cost effective manner. In view of the various dimensions of oil and gas production, companies have segregated into areas of specialisation. The Nigerian oil and gas industry currently has multinational and indigenous OSCs providing different kinds of services to the major oil producing companies.