A service provider in the oil and gas sector, Century Energy Services Limited has carved a niche for its brand through quality service provision to the big players. Group CEO Ken Etete gives an insight into the business terrain during 2010, and the company’s plans for 2011.
2010 saw the multifaceted evolution of Nigeria-based Century Energy Services Limited (CESL) from its position as a leading indigenous service company into a group. Most of CESL’s business units have grown into subsidiaries and the company is now extending its frontiers into other areas within the oil and gas industry. A fledging subsidiary, Century Exploration and Production Ltd (CEPL), has also been created.
In order to accommodate this growth and in anticipation of several new projects in the coming months, CESL has had to undertake major investment in several areas. “Human capital development topped the list, from technical to administrative, as we believe in constant development of our workforce to match the dynamic business environment,” explains group CEO Ken Etete. “We introduced new skills and employed more experienced hands who have extensive experience in the oil and gas industry. We also engaged a number of consultants to bring their professionalism on board. No doubt that will continue this year as well.”
One very significant and ongoing investment has been the setting up of CESL’s support base for all its logistics activities in Kidney Island, Port Harcourt, driven by one of its subsidiaries, Century Ports and Terminals Limited (CPTL). “We intend to expand that this year, so that all our new projects in the eastern region can be supported from there,” says Etete. “Moving forward, we plan to expand Kidney Island with the right drafts to bring an alternative to the existing infrastructure in the area: we want to make it a hub of activities for the industry and a major sea port that can serve other interests.
“We also want to provide opportunities for training, especially for locals who wish to enter the marine sector,” he continues. “We are the first to provide the facility for graduates in the field of marine engineering to have practical sea time.”
Internally, CESL has upgraded its IT system to support all these activities, and has improved on its structure to accommodate growth. “We acquired special software, intranet, ERP (enterprise resource planning), and GPS,” says Etete. “Simply put, 2010 was exciting and challenging, yet rewarding.”
A major challenge faced the company last November, however. “We came under the attack of some unknown gunmen in one of our client’s field of operation,” says Etete. “Some of the crew men were abducted. In the days that followed, we worked as a team with our partners, clients, government and community to secure the release of the abducted colleagues within a short period of time. The crisis actually revealed new ways in which to do a lot of things; but in the end, we were happy there were no casualties and that we were able to overcome it.”
Etete says that CESL’s philosophy is to see its customers as partners. “We study them extensively, anticipate their development and undertake informed investment in equipment and personnel that will meet their evolving needs as business growth continues.”
Another recent strategy has been the use of ‘Organizational CPR’—internal and external communication, participation, and recognition. Going forward, communication at CESL will be enhanced through monthly meetings, newsletters, email, suggestion boxes and a website review; and participation will be achieved through BPR and training development. Recognition will be accomplished through a community and employee recognition programme; and a periodic audit will be carried out with the company’s entire client base to seek ways to improve on its operations.
“As far as our partners are concerned, ours is a well-defined scope of business and our responsibility is to ensure that we get a good return for their investment,” says Etete. “Whatever category of stakeholders we work with, we ensure that contracts are fair. We know that if the partner is not successful, we are not going to be successful—so it falls on to us to ensure high integrity at all times.”
Supply chain management is an essential function of every company regardless of size, and this is where CESL adds value to new and existing clients, running its supply chain as an independent company within the company. It offers effective and efficient JIT supply chain solutions through use of an effective supply chain management system, a dedicated procurement team, dedicated freight forwarders and clearing agents, a strategic relationship with OEMs and warehousing and stockholding capabilities.
“An effective JIT supply chain solution plays a role within any organisation that is willing to break down functional silos and eliminate time through speed and process innovation,” says Etete. “This is a very basic approach, but hinges on analysis surrounding the vital three factors of people, process and the enabling technology. Wrapping the technology around a well-skilled team and simplified processes will yield the greatest technological advantages and best results. We rely 90 per cent on local suppliers and have built good relationships with our suppliers and sub-contractors over the years.”
CESL also has a strategic focus on its host communities, to empower them and to provide education. “In 2010, we dealt with more of that because we expanded our business and had to deal with more communities,” explains Etete. “Aside from this, we took on support projects for some widows in the Lagos areas and school support projects, built ICT centres for some people in rural areas and took on clean water provision projects for some communities. We also contributed towards the post-amnesty programme to support the skills acquisition projects for ex-militants, to enable them get income from their work in a peaceful environment.
“We worked to ensure we developed ways on how our host communities would remain productive and economically buoyant. We are now working out ways to take care of the immediate challenges of the communities who may not be getting good economic value for their produce,” he concludes.
