Tenaris Global Services has invested about $10 million in upgrading its thermal insulation plant in Onne, Rivers State, as the oilfield services company marked 25 years of operations in Nigeria with the completion of pipe coating work for the Bonga North deepwater project.

The investment has brought into operation what the company described as the only five-layer thermal insulation plant in Sub-Saharan Africa, strengthening local capacity to execute technically demanding offshore oil and gas projects without relying on facilities outside the country.

The milestones were commemorated at the Federal Lighter Terminal, Oil and Gas Free Zone, Onne, alongside the commissioning of the upgraded facility operated by Pipe Coaters Nigeria Limited, a Tenaris subsidiary.

The Bonga North campaign involved three-layer polypropylene anti-corrosion coating and five-layer polypropylene thermal insulation coating.

According to the company, the work was completed on an accelerated schedule and on time in Nigeria, demonstrating the capacity to execute specialised deepwater project requirements locally.

Managing Director of Tenaris in Nigeria, Rosario Osobase, said the investment reflected the company’s long-term commitment to developing domestic capabilities.

“These achievements, including the commissioning of the only 5 Layer Thermal Insulation Plant in Sub Saharan Africa, reflect our long-term commitment to supporting the growth of Nigeria’s energy industry through investment, innovation and the development of local expertise,” she said.

She added that the Bonga North project leaves a legacy of technical capability and demonstrates the maturity of Nigeria’s industrial ecosystem.

The investment comes against the backdrop of reduced project activity and market uncertainty that forced several pipe companies and engineering, procurement and construction firms to exit Nigeria between 2014 and 2023.

Tenaris said it retained its oil country tubular goods (OCTG) threading facility in Onne during the downturn, maintained its coating capabilities and continued training its workforce through local and international assignments in anticipation of renewed demand.

Commercial Vice President for Sub-Saharan Africa, Europe and the Caspian Sea, Alessandro D’Angelo, said continuity of investment and project activity would be critical to expanding local value creation as new opportunities emerge.

“Reaching this milestone reflects our confidence in Nigeria’s long-term potential,” he said.

The company’s Nigerian operations include premium OCTG supply, accessories and coating technologies for well delivery and pipeline developments. Over the past decade, Tenaris said it had supplied more than 20,000 tonnes of OCTG for legacy Shell assets now operated by Renaissance Africa Energy Company.

Through Pipe Coaters Nigeria Limited, it has also supported strategic gas pipeline projects aimed at expanding gas availability for industrial and economic development.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, commended the company for maintaining its Nigerian operations during the industry downturn.

“Tenaris did not leave,” he said, recalling the period when several other companies withdrew from the market.

Lokpobiri, who chairs the Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB), said the investment demonstrated industrial capacity, skilled Nigerian employment and technology transfer. He stressed the need for consistent implementation of local content legislation to sustain businesses investing in domestic infrastructure and retain strategic capabilities in the country.