Aviation
Undaunted by recent challenges to its operations, Caverton Offshore Support Group has unveiled a cocktail of measures to remain relevant in Nigeria’s oil and gas sector, Ugo Aliogo writes
Global and local companies operating in the oil and gas sector were hit by a double whammy in 2020. The global movement away from fossil fuels coincided with the global shutdown occasioned by the COVID-19 pandemic. This created a powerful headwind that negatively impacted the financial fortunes of oil and gas companies. Even with the steady and record rise in oil prices this year, most of these companies are yet to fully recover. As it is for the oil and gas companies, so it is for the companies that service them. The fortunes of a business can hardly be divorced from the outlook of its environment.
Caverton Offshore Support Group (COSG), a Nigerian company and leading provider of marine and aviation support to the oil and gas sector, has had to struggle with the recent volatility of its operating environment on one hand and the larger national and global economic challenges on the other. But the company has demonstrated its resilience not only in weathering its share of the recent storms but also by making quick adjustments, by being forward-looking, and by branching into new and better-insulated terrains of aviation training and maintenance and lately boat-building services. With its diversified portfolio, Caverton now has a more weatherproof operation and outlook.
As part of the measures to maintain its leadership position in aviation, its flagship business line, the company appointed Captain Ibrahim Chafe Bello, as the Managing Director of Caverton Helicopters with effect from 1st July 2022. The helicopter subsidiary had a bumpy ride in the first half of 2022. The appointment of Captain Bello, an experienced pilot and administrator, to lead the helicopter service from the first day of the second half of the year, signposts a strong desire by the group to gain a higher altitude.
According to a press statement signed by the Chief Executive Officer of COSG, Mr Olabode Makanjuola, the new helmsman has over 34 years of continuous experience in both military and civil aviation. Captain Bello joined the Nigerian Air Force in 1987, served in the Nigerian Presidential Fleet, and retired meritoriously as a Squadron Leader in 2004, after which he got his fixed-wing aviation certification from Delta Connection Academy in Florida, USA.
“Captain Bello holds the NCAA Aircraft Maintenance with various ratings and the ATPL Multi-Engine license from FAA and NCAA,” the statement said. “He holds a Bachelor of Science degree from the Nigerian Defence Academy. He has earned various medals for his military-civilian careers.”
The statement also revealed that Captain Bello joined Caverton Helicopters in September 2011 and has held various management positions in the company, including serving as the Base Managing Pilot, the Shell Contact Manager, and the Director of Operations of the helicopter subsidiary of COSG.
As part of the repositioning, COSG made two other senior appointments: Mr Rotimi Makanjuola as the Group Chief Operating Officer (COO) and Mrs Lolade Abiola as Executive Director of Training of Caverton Helicopters. According to the statement, Mr Makanjuola as COO will oversee the planning and the implementation of business strategies for the growth of the group. He holds a BSc. in Economics from the University of Bradford in the UK and a master’s in Auditing and Management from City Business School, London, UK. On her part, Mrs Abiola holds a BSc in Computer Science from Kings College, London, UK and an MSc in Air Transport Management from Cranfield University’s School of Aeronautical Engineering. Apart from her previous experience in Caverton, she recently served as a Technical Advisor in the Office of the Vice President of Nigeria.
These senior appointments are likely to reassure stakeholders that might be skittish about recent negative news about the company. Remarkably, the repositioning is coming after Caverton Helicopters restarted its previously suspended operations with Shell. According to sources familiar with the issue, Shell gave Caverton Helicopters the green light to recommence operations after a rigorous audit that x-rayed the company’s leadership, financial, safety and technical dimensions as well as its flight operation.
Caverton Helicopters restarted the Shell operations early this June. In a related vein, the dispute between Caverton Helicopters and Chevron over the summary cancellation of its contracts is being resolved by the lawyers, revealing a source who craved anonymity because of not being authorised to speak on the matter. If the ongoing efforts fall through, arbitration and litigation are both options, the source said.
However, Caverton’s strategic edge seems to be its penchant for diversification into new areas to take advantage of emerging opportunities. Its latest drive in this direction is commercial boat construction. The prototype of the Caverton Waterbus, a 12-meter, 40-passenger boat, will be unveiled at the Nigerian Oil and Gas Conference starting in Abuja tomorrow. The boat, which is powered by two 300-horsepower engines, was originally conceived to support water transportation in Lagos State. Orders have started pouring in not just from ferry operators and the Lagos State Government but also states in the Niger Delta and oil and gas companies.
The boats are wholly built from a Lagos factory, and almost all the materials are sourced locally. Apart from the master builder who is a Lebanese, the other builders are all Nigerians. Beyond the possibility of making the group more profitable and better insulated, this venture will also create new jobs and increase economic activity in the country. The boat business is a spinoff of Caverton Marine, the first subsidiary of COSG, which was incorporated in July 1999. Caverton Marine provides marine logistics services mainly to oil and gas companies. The passage of the Cabotage Act in 2004 gave the company the added impetus to become one of the major players in the marine space and to continue to raise the flag for Nigerian companies in this sector.
But by far, Caverton’s biggest diversification bet is its venture into the training of pilots and the maintenance of aircraft in its Lagos facility. Caverton has a 40, 000 square meter, state-of-the-art maintenance, repair and overhaul centre with a free trade zone status in Lagos. It is a one-stop-shop for aircraft maintenance and the first of its kind on the continent. It holds a $5m worth of stock of spare parts from original equipment manufacturers to ensure quick turn-around, which is further helped by its FTZ status.
“We handle maintenance here faster and at least 30% to 40% cheaper than abroad,” said Makanjuola, the CEO of COSG, recently. This facility not only handles the maintenance of Caverton Helicopters’ fleet of aircraft, resulting in substantial savings. It also handles third-party operations, including for the Nigerian Navy and the Presidential fleet of the Benin Republic.
Airline operators incur a lot of costs in the training of pilots. Caverton alone used to spend $ 3 million annually on the training of its pilots. Now the training is done in-house, resulting in savings not just in scarce foreign exchange but in time. Caverton has a full-service training facility in Lagos, complete with a simulator that can be configured for different aircraft and weather conditions. Caverton has trained pilots for the Amnesty Programme and is receiving interest from within and outside the continent.
The Caverton Group had many humble beginnings. Caverton Helicopters, the flagship of the group, started as an airport shuttle business in the early 2000s. The marine business started much earlier, but also as a marginal player. The company had its first breakthrough in 2010 when its helicopter arm won a major contract with Shell, displacing what had been a duopoly of two foreign companies in the sector.
Started as a family business by its chairman, Mr Aderemi Makanjuola, the company later went public. COSG was listed on the stock exchange on 6th February 2014. Buoyed by the foresight and ingenuity of its founder, board members and management team, supported by enabling laws like the cabotage and the local content laws, Caverton has been able to navigate the vicissitude of the challenging operating environment. It has stood out as a posterchild for Nigerian companies and resilience, the archetypal Nigerian spirit.
