Nigerian logistics firm Caverton charts new course amid oil majors’ onshore exits

Caverton Offshore Support Group, the largest domestic aviation logistics provider to the Nigerian oil and gas industry, is recalibrating its business model amid the exodus of international oil companies (IOCs) from onshore and shallow-water assets.

The Lagos-listed company is betting on locally built electric ferries, strategic partnerships and cross-border expansion to reignite growth after years of financial turbulence.

Nigeria’s offshore oilfields rely heavily on helicopters to transport workers, equipment and emergency supplies. Air travel is also widely used for onshore assets in the Niger Delta, where swamps, poor infrastructure and security risks make road and water access difficult.

Speaking to The Africa Report, vice chairman and CEO Olabode Makanjuola says the IOC divestments to indigenous producers have reshaped the contracting environment. “It has changed a lot in terms of the contract type, contract size and the financing muscle behind a lot of them. For our helicopter operations, there are a lot more ad hoc and short-term contracts, as opposed to in the past, when they were with the big IOCs who had the budget to fund long-term contracts.”

He notes that although long-term contracts persist, the fragmentation of large oil assets among smaller operators has reduced the scale and duration of some contracts. A producer operating a smaller field may need helicopter support for six or 12 months rather than commit to a multi-year arrangement.

In response, the company has adjusted its strategy. “We’re looking more at services. We’re looking more at how we utilise or maximise our assets in terms of the infrastructure that we’ve built,” Makanjuola says. “We are looking more at strategic partnerships that help hedge our risk profile and exposure, so the financial burden isn’t really on us.”

The first wave of asset sales by oil majors occurred between 2010 and 2014. IOCs have accelerated their asset divestment, with fields, pipelines and joint-venture interests previously controlled by Shell, ENI, ExxonMobil and Equinor moving into Nigerian hands. Companies including Seplat Energy, Oando and Renaissance now control a significant share of national output.

Caverton emerged as a homegrown challenger to foreign companies such as Bristow Helicopters and CHC, which historically dominated Nigeria’s offshore helicopter and marine support sectors.

It began operations in 1999 with Caverton Marine, followed by Caverton Helicopters in 2002. The two businesses were consolidated into Caverton Offshore Support Group in 2008, and the company was listed on the stock exchange in 2014.

Through Caverton Helicopters, the group became a major indigenous provider of crew transport, medical evacuation and other aviation services to companies such as Shell and Chevron. Its marine division provides offshore support vessels and security boats, enabling the group to transport people and equipment by air and water in the Niger Delta.

Caverton also operates a helicopter maintenance, repair and overhaul facility and an aviation training centre with two flight simulators in Lagos.

Covid, currency devaluations hit earnings

Caverton’s financial performance deteriorated after pre-tax profit peaked at N7.24bn ($5.26m) in 2019. Profit fell to N1.26bn in 2020 as the Covid-19 pandemic disrupted aviation and energy operations. The group has recorded pre-tax losses since then.

With the currency devaluations in the eight months to February 2024 that saw the naira lose about 70% of its value against the dollar, the company’s loss before tax widened to N53.86bn that year from N5.16bn in 2023. Its loss before tax narrowed to N13.89bn in 2025, and the company reported a total comprehensive profit of N45.85bn.

“The foreign-exchange volatility and the devaluation of the naira have affected us significantly,” Makanjuola says. Helicopters, spare parts, batteries and specialist maintenance inputs are largely priced in dollars, while much of the company’s revenue is earned in naira.

New engines of growth

Caverton is actively pursuing partnerships to rebuild its contract pipeline and unlock new revenue streams. According to its latest annual financial statements, released in June, the company is in advanced discussions with NHV Group, headquartered in Belgium, about a partnership for helicopter operations in Nigeria. The proposed alliance is expected to help it regain contracts with major IOCs.

A planned equity injection by the Nigerian Content Development and Monitoring Board (NCDMB) is also expected to be completed in the second half of 2026, it said. “A lot of credit has to go to the NCDMB regarding local content development,” the CEO says, adding that the agency has been “extremely supportive”.

Last year, Caverton joined forces with the Nigerian National Petroleum Company (NNPC) and the Swedish shipping giant Stena Bulk to establish Unity Shipping Worldwide to pursue opportunities in crude-oil exports and the transport of petroleum products. Caverton expects the venture to reach full operational capacity by the third quarter of this year.

Electric ferries and expansion plan

Caverton’s most visible diversification effort is taking place on the waterways of the country’s commercial capital, Lagos, a megacity where many road commuters routinely endure long delays.

The company is developing inland-water transport and electric-vessel capabilities with Explomar, a Shanghai-based manufacturer of electric outboard engines and batteries. A prototype electric vessel is already operating, while Caverton plans to deliver 10 ferries for Lagos waterways in the fourth quarter of 2026.

“Our boat-building business is a reflection of our green credentials,” Makanjuola says. “We have developed the first all-electric ferry that runs on zero emissions.”

Caverton is also seeking growth outside Nigeria, with discussions under way in Ghana, Angola and Guinea. “We are already operating in Cameroon. On the ferry services side, we are expanding into Guinea-Conakry and Ghana. We have some meetings in Ghana regarding helicopter operations,” he says.

But expanding across Africa remains complicated by regulatory differences, cross-border restrictions and the limited integration of transport and service markets. “The ease of doing business across borders is something we still need to figure out in terms of how we trade and work together as Africans,” he says, adding that the appetite for intra-African commerce is strengthening.

Deepwater revival underway

With Shell and other majors now reviving deepwater projects, Makanjuola expects logistics demand to rise.

In December 2024, Shell made a final investment decision (FID) on the $5bn Bonga North project – a deep-water tie-back that will drill 16 wells, modify the Bonga Main floating production, storage and offloading vessel and add a new subsea kit. Last week, ExxonMobil announced the start of the execution of a $1bn project on the Usan deepwater field.

Other deepwater projects awaiting FID include TotalEnergies’ Preowei, Shell’s South West Aparo, ENI’s Zabazaba-Etan, Chevron’s Nsiko and ExxonMobil’s Bosi and Uge.

“We’re definitely seeing a ramp-up, and we’re very hopeful that once some financial decisions are taken on these assets, logistics will play a very key role,” Makanjuola says.

Research firm 6Wresearch estimated Nigeria’s helicopter market at $510m in 2025 and expects it to reach $724m by 2032, representing compound annual growth of 5.1% from 2026. It identifies oil and gas – particularly offshore activity – as the principal driver.

“Without logistics, there is no oil exploration,” Makanjuola says. “The only way to get offshore, especially deep offshore, is by helicopter.”

(The Africa Report)