oil review africa 5 2014

Managing an oil andgas boom

South Africa’s gasprospects

Nigeria - plenty goingon but not enough

Environmentalrestoration in Ogoniland

Meeting training needs

New generation vessels

State-of-the-art seismictechnology

Securing flowassurance througheffective subseasampling

Industrial coatings

Data management

AfricaAfricaCovering Oil, Gas and Hydrocarbon Processing

Volume 9 Issue Five 2014

www.oilreviewafrica.com

Europe m10, Ghana CD18000, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

Diezani K. Alison-Madueke, Nigeria’s ministerof petroleum resources. See page 30.

Angola - The story beneath

CLOV first oil

� Geology - p46 � Gas - p48 � E&P - p50 � Technology - p58

Oil Review

Africa

- Issue Five 2014www.oilreview

africa.com

REGULAR FEATURES: � News � Contracts � Events Calendar � IT update � Company profiles � Products & Innovations

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Our business success is not only measured in barrels of oil and gas, but includes the socio-economic impact ouractivities have on people in our countries of operation. This is why we provide support for sustainable educationaland health development programmes for citizens of our host communities.

At SAPETRO, we do not only explore hydrocarbons, we care for the people.

South Atlantic PetroleumNIGERIA BENIN MADAGASCAR JUAN DE NOVA CAR

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Oil Review Africa Issue Five 2014 3

Editor’s noteDESPITE THE BLEAK headlines there is a lot going on in the Nigerian oil sector.The withdrawal of majors from Nigeria’s onshore and the Niger Delta shallowwater has allowed the entry of a very large number of independents, often withroots in Nigeria.

Further south, Angola seems set to return to upstream growth - in thechanging market environment its heavier crudes suddenly seem like aparticular blessing. With several large projects ramping up or scheduled to startduring the coming 12 month period, finally breaking the coveted two millionbpd output wall during 2015 seems within reach.

Meanwhile, following the recent gas discoveries in Mozambique andTanzania, major energy companies are turning their sights on South Africa,where the opportunities offered by a large and growing market are matched bythe scale of the country’s resource base.

Oil Review looks at some new technologies in this issue. State-of-the-artseismic technology is being used in the West Africa deep offshore area as part ofthe industry’s efforts to reveal the region’s sub-salt and pre-salt potential. Thenew generation vessels working in Africa’s offshore industry are smarter andmore powerful than ever, where engineers use a joystick and state-of-the-artmonitors to control often the most delicate of operations possibly miles offshore.

Accoustic sensing technology subsea: time versus depth waterfall showing DASrecording of in-flow at the production zone of a horizontal well.

ColumnsIndustry news and executives’ calendar 4

AnalysisManaging an oil and gas boom 10Africa is enjoying an unprecedented oil and gas boom but management of theseresources needs to be addressed.Awareness is key when tapping into South Africa’s energy renaissance.

Country FocusSouth Africa 18Driven by the recent gas discoveries in Namibia, Mozambique and Tanzania, majorenergy companies have turned their sights to South Africa.

Nigeria 22Despite the bleak headlines, there are also reasons for optimism.The challenges of market privatisation.Ogoniland - revving up environmental restoration work.

Angola 36Upstream growth to return to Angola following three tepid quarters.The story beneath CLOV first oil.

Training, Development and RecruitmentMeeting training needs 42Online is the way to go when seeking qualifications for a better technical position inoil and gas.The industry needs to collaborate more to tackle the skills shortage.

TechnologySubmersible efficiency 60Driving efficiency and safety across the industry.

Seismic technology 62How state of the art seismic technology is being used to boost hydrocarbonsexploration activities in Africa.

New generation vessels 66The new generation of vessels working Africa’s offshore industry are smarter and morepowerful than ever. It’s an evolution that’s likely to continue.

Flow assurance 68This focus on flow assurance is also being seen in the wide variety of flow assurancesolutions being adopted, such as well testing, corrosion monitoring solutions andcorrosion inhibitors, as well the large number of flow assurance employment positionsavailable in Africa today.

Paints and coatings 70More than just a lick of paint, the industrial coatings business is pioneering safety andasset integrity in Africa’s oil and gas industry

Subsea sensing 72The next step for acoustic sensing technology.

Data management 76The key to unparalleled efficiency and long-term profitability is world-class datamanagement.

At the heart of CLOV’s success hasbeen the development of local skillsand fabrication facilities.

Contents

AfricaAfricaCovering Oil, Gas and Hydrocarbon Processing


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4 Oil Review Africa Issue Five 2014

THE 21ST AFRICA Oil Week starting on 3 November in Cape Town will focus on leadingcorporate players in Africa, Africa's giant plays and opportunities, new frontier openings,foreign state oil companies, Africa's exploration potential containing governmentpresentations and road shows.The 21st Africa Oil Week expects 1,600 senior-level delegates, with 100 senior high-levelpresentations. Government delegations will be present with over 140 corporate/state speakerson the programme and over 160 exhibition booths displaying a wide range of growing serviceand supply industry operators found across Africa's oil and gas-LNG value chain.The Strategy Briefing 2014, held during the 21st Africa Oil Week 2014 will trackchanging competitor maps in Africa for oil and gas-LNG companies, providing seasonedinsights and interpretations on around 500 players. Key focus lies on minnows "born InAfrica", worldwide independents, super independents & super-majors and foreign-Africannational oil companies.

The 21st Africa Oil Week includes the following:

6 Special sessions on: "Hydrocarbon hardball" with leading thinkers and on Africa'sexploration technologies

6 Allied showcase components on corporate farmouts and government roadshows6 Young professionals in oil, gas & energy session6 Global Women Petroleum & Energy Club: Africa business breakfast6 21st Annual "Big Five" Board Awards (2014), and related awards6 The 66th PetroAfricanus dinner in Africa6 Numerous all-inclusive social and five-star dinner functions and official conference

receptions including the Grand Africa beach café annual braai-BBQ6 Canadian Government hosted breakfast meeting.

Breaking trends and critical upstream issuesaddressed at 21st Africa Oil Week

AOR GROUP, HEADQUARTERED in Singapore,has opened the company’s Africa head officebranch in Cape Town, from where thecompany will rent and sell DNV 2.7-1 and EN12079 certified offshore CCUs into the Eastand West Africa regions, both through itsown offices as well as through its partnersand territory representatives. Africa OffshoreRentals has appointed Ashley F Smith asgeneral manager, sub-Saharan Africa, andJohn Carinus as operations manager, sub-Saharan Africa to head up the new company.Eirik Ellingsen, CEO of AOR Group, stated “theopening of Africa Offshore Rentals in CapeTown represents an important step forwardfor the group’s expansion into key areasworldwide where our clients have expresseda demand for our equipment. Setting up ourhead office in Cape Town gives us theflexibility to service both the East and WestCoasts of Africa at short notice”.AOR Group is a leading provider of specialistoffshore DNV 2.7-1 and EN 12079 certifiedcargo-carrying and specialist units, and canprovide a wide range of standard andbespoke equipment on a rental or sales basisfrom our locations worldwide.

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Africa Offshore Rentalsopens in Cape Town


Executives’ Calendar 2014/2015OCTOBER 201424-26 Mozambique Continuous Education & Career Development Forum MAPUTO www.elliteic.net

28-29 Monetising Mature Fields 2014 DUBAI www.irn-international.com

28-30 Gulf of Guinea Gas ABUJA www.cwcgog.com

30-31 Nigeria Oil & Gas Trade and Investment Forum 2014 ONNE www.nigeriaoilandgasinvest.com

NOVEMBER 20143-7 Africa Oil Week CAPE TOWN www.petro21.com

4-6 Deepwater Operations GALVESTON www.deepwateroperations.com

9-13 NAPE-32nd Annual International Conference and Exhibition of the LAGOS www.nape.org.ng

Nigerian Association of Petroleum Explorationists10-13 ADIPEC ABU DHABI www.adipec.com

18-20 4th Practical Nigerian Content Forum YENAGOA www.ncipnc.com

24-25 Project Financing in Oil and Gas LONDON smi-online.co.uk

24-26 SAOGE DAMMAM www.saoge.org

28-30 Angola Recruitment Summit LONDON www.eliteic.net

DECEMBER 20142-4 Made in Ghana ACCRA www.maeinghanasummit.com

2-4 Valve World Expo DUSSELDORF www.valveworldexpo.com

2-5 2nd Mozambique Gas Summit MAPUTO www.mozambique-gas-summit.com

2015

JANUARY20-22 Offshore West Africa Conference & Exhibition LAGOS www.offshorewestafrica.com

FEBRUARY2-5 Nigeria Oil & Gas ABUJA www.cwcnog.com

9-10 East Africa Oil & Gas Summit 2015 DAR ES SALAAM www.eastafricaogs.com

MARCH25-27 OMC 2015 RAVENNA www.ies.co.it

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.

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WEST AFRICA IS a relatively mature market with a large number of existingoperational assets, deep-water projects, on-going development and a significantlevel of continuous drilling and exploration activity.

As a result, Nigerian candidates’ skills sets have been well developed andoil and gas professionals are well qualified. Operators, however, are challengedin retaining experienced professionals who may seek to leave Africa to better-paid regions around the world. Operators face further challenges as localcompliance laws and regulations demand companies must have a certainpercentage of nationals in their workforce. In Nigeria, for example, 80 per centof all types of engineering must be performed by nationals.

Angola faces similar challenges, where Portuguese-speaking locals aremigrating to Brazil’s burgeoning oil and gas sector. It is anticipated that lack oflocal candidates will increase in Angola over the coming years.

South Africa is no stranger to a chronic shortage of skilled workers. Themajority of the deficit exists in engineering, welding and pipefitting. Lack ofspecific oil and gas training programmes at university level further contributesto this problem. With more international companies positioning themselves inSouth Africa, more proactive action will be required by industry, governmentand educators.

Even though companies are implementing costly strategies to enticequalified professionals back to these regions the skills gap continues to widen.

oilcareers.com

COTE D’IVOIRE’S FOXTROT International will partner with GDF Suez and Côted’Ivoire’s national oil company, Petroci, to invest around US$1bn to boostoffshore production in the country, the company said.The investments will go towards drilling seven new wells and build a newgas platform in Foxtrot’s Marlin gas field, which is expected to go on-linenext year. According to Reuters, Côte d’Ivoire’s gas output was around220mn cfd last year. The government is targeting production of around250mn cfd this year.Foxtrot, partly owned by the French industrial group Bouygues, says it expectsto secure natural gas production for the next decade with a series of newoffshore wells it will begin drilling next year.Côte d’Ivoire, the largest economy among West African francophone countries,relies on thermal power stations fuelled by natural gas which, it is feared, maysoon fall short of supply. It has invested heavily to boost power production inorder to keep up with the rapid GDP growth that has accompanied its return tostability following a civil war in 2011.“The drilling will start in July and will last 400 days,” Reuters quoted ChristianSage, Foxtrot’s managing director. “We are currently producing 140mn cfd.With this investment, we will secure production for at least 10 years.”“We have large investments that will start to materialise in Côte d’Ivoire, forwhich we will bring in platforms that will begin to arrive in November,” saidBouygues Deputy CEO Olivier Bouygues.Côte d’Ivoire says it aims to boost power output by 80 per cent over six yearsto satisfy growing domestic and regional demand. It currently exportselectricity to Ghana, Burkina Faso, Benin, Togo and Mali with plans underwayto connect Liberia, Guinea and Sierra Leone to its grid as well.

Côte d’Ivoire’s oil sector gets investment boost

UGANDA HAS INVITED bids from consultants to advise the governmenton its next oil licensing round in early 2015, involving more than a dozenoil blocks, the East African nation’s first offer in eight years and itsbiggest in history.“The consultant will … arrange for international conferences in strategicparts of the world for [government] representatives to speak todistinguished audiences in the oil and gas industry,” the ministry stated.“Specifically, the consultant will assist government to put together datato establish the actual prospects of the blocks and liaise withinternational companies, as well as help in the pricing and monitoring ofthe accessed data”, the energy and minerals ministry said.Uganda aims to attract more investors in its fledging oil industry, whereoil companies have so far discovered at least 6.5bn barrels of crude oil,from less than 40 per cent of its oil region, rendering the country’scrude fields the third largest by reserves in sub-Saharan Africa afterNigeria and Angola.The blocks on offer, lie along Uganda’s western border with theDemocratic Republic of Congo and include at least four rich discoveries,relinquished by the existing oil companies earlier this year. Unlike the current operators who were licensed on a “first come, firstserved” basis, the next licensing round will be held under an opencompetitive bidding process, according to Ernest Rubondo, the head ofthe state-run petroleum exploration and production department.According to Mr. Rubondo, more than 60 international companies haveexpressed interest in the next licensing round.Uganda imposed a moratorium on new oil licensing in 2007, shortly afterexploration companies confirmed commercial oil reserves. Thegovernment has since been establishing a new regulatory framework forthe fledging sector. UK-based campaigner, Global Witness said in a recent report that Ugandahad succeeded in negotiating better financial deals in two most recentoil agreements with UK’s Tullow Oil, France’s Total and China’s Cnooc,compared with the older ones.

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Challenges to retain experiencedprofessionals

Uganda lays groundwork for biggest ever oil block sale


Upcoming Training Highlights for E&P Professionals

Visit www.hoteng.com for further information and registration.

Watch out for our 2015 training schedule at www.hoteng.com

Register online

now at

www.hoteng.com

Nov 17-21, 2014 – Vienna, AustriaBasin Analysis and Petroleum Systems (GEO12 Vienna)

Nov 24-28, 2014 – Vienna, AustriaAdvanced Drilling Technologies (DRI14)

Dec 1-4, 2014 – Vienna, AustriaPetroleum Economics and Business (PBM02)

Dec 1-5, 2014 – Istanbul, TurkeyThe Experienced Manager Programme (SSM41)

Dec 1-5, 2014 – Vienna, AustriaPore Pressure, Fracture Pressure and Wellbore Stability Management (GEO21)

Dec 14-18, 2014 – Doha, QatarBasin Analysis and Petroleum Systems (GEO12)

Feb 10-13, 2015 – Perth, AustraliaRock Typing - Reservoir Characterisation and Quality from Drill Cuttings (GEO33)

Mar 9-13, 2015 – Istanbul, TurkeyFoundations of Petrophysics (PPH01)

Mar 16-20, 2015 – Istanbul, TurkeyReservoir Engineering for Non-Reservoir Engineers (RES01)

Mar 22-26, 2015 – Abu Dhabi, UAEProduction Engineering (PRE12)


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FMC TECHNOLOGIES HAS signed an agreement which establishes a joint industry programmethat includes Anadarko Petroleum Corporation, BP, ConocoPhillips and Shell for the purposeof jointly developing a new generation of standardised subsea production equipment andsystems designed to meet the challenges of producing oil and gas from deepwater reservoirswith pressures of up to 20,000 psi and temperatures of 350°F at the mudline. FMCTechnologies brings four operators together to jointly develop subsea equipment and systemsthat will meet the technical challenges of high pressures and temperatures, and will serve toimprove overall deepwater development through the standardisation of materials, processes,and interfaces, as well as the enhancement of reliability and operability."This agreement is a clear illustration of how leading companies with a common interest cancome together to overcome the technological and economic challenges facing our deepwaterindustry," said John Gremp, FMC Technologies' chairman, president and CEO. "By workingtogether collaboratively, we will continue to achieve technological innovations that will enableus to safely develop some of the world's most promising fields and take a large step towardproviding new oil and natural gas resources to consumers and superior returns to stakeholders."FMC Technologies is a leading global provider of technology solutions for the energy industry. Itdesigns, manufactures and services technologically sophisticated systems and products such assubsea production and processing systems, surface wellhead systems, high pressure fluid controlequipment, measurement solutions, and marine loading systems for the oil and gas industry.

FMC helps establish joint industry programme

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WORTHINGTON GROUP WILL investUS$19.9mn in CPS Energy Resources plc,an oil and gas exploration company operatingin Africa, and will join forces with Africanoil and gas exploration company Oando. Under the new deal, Worthington willsubscribe for new CPS ordinary sharestotalling US$19.9mn, which equates to27.5 per cent of the agreed likely stockmarket value of CPS.According to Worthington, the principalasset of CPS is an 80.75 per cent interestin oil and gas block OPL 236 whichcovers more than 1,600 sq km. The blockis onshore within the oil rich Niger Deltaand is surrounded by oil and gas fields,including the Shell Imo River fieldswhich are Nigeria’s largest onshore fieldswith oil production rates of around25,000 bpd.“Oil and gas is an attractive investmentarea for us. We are hopeful that thistransaction and our new relationships inAfrica will lead to further oil and gasopportunities in the region over thecoming months. Nigeria has a thrivingeconomy, and is now receivinginternational recognition as an economicpowerhouse for the future,” commentedWRN CEO Doug Ware.

CAPSTONE TURBINE CORPORATION has received an order for two C1000 microturbines for an offshore oiland gas platform in Africa.

The two C1000s will run on flare gas to power artificial lift equipment, more specifically electricalsubmersible pumps that are used to increase oil production.

"We are delighted to see the further expansion of our footprint in the African oil and gas market," saidJim Crouse, executive vice president of sales and marketing at Capstone Turbine. "By leveraging ourdemonstrated success in oil and gas operations around the world, we are able to meet the demandingrequirements of oil and gas operators in challenging environments such as Africa."

According to the International Energy Agency (IEA), Africa is expected to consume 4.5mn bopd by theyear 2020, up 29 per cent from today.

This is more than twice the IEA's projection for Asia and nearly four times the worldwide rate. Also,according to KPMG Africa, Africa's proven oil reserves accounted for 10 per cent of the world in 2012, orroughly 130bn barrels. These facts highlight the large demand for, and production of, oil and gas in Africa.

The two C1000s will run on flare gas to power artificial lift equipment, more specifically electricalsubmersible pumps that are used to increase oil production. The artificial lift market was more thanUS$9.2bn in 2012 and is forecasted to grow to US$16bn in 2018.

Capstone wins microturbine order offshore

NIGER AND SAVANNAH Petroleum havesigned a production sharing contract (PSC)that will see the British firm invest US$90mnin an oil project in the West African countrynext year.According to the country’s Ministry of

Petroleum, the deal with SavannahPetroleum is seen as part of a drive to attracta broader range of investors into its nascentoil industry, Ventures Africa reported.Adolphe Gbadigui, a ministry

spokesperson, said that part of the moneywill be used to drill five exploration wells andconduct an environmental impact study atthe project, which is located in the southeastregion of the country.One of Africa’s newest oil producers, Niger

began pumping oil in 2011 as part of aUS$5bn deal with China National PetroleumCorporation (CNPC) to develop the AgademBlock. It is expected to export around 80,000bpd via a pipeline through neighbouring Chadand Cameroon from 2016.

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Worthington strengthensAfrican ties

Savannah to invest US$90mnin Niger’s oil project


2H OFFSHORE HAS been appointed by HeeremaMarine Contractors (HMC) to engineer hybridrisers for Total’s Kaombo Block 32 project.HMC, together with consortium partnerTechnip, were awarded the contract for theEPCI and pre-commissioning of the SURF scopefor the Kaombo development by Total. 2H Offshore has been pioneering riser analysis,design and engineering for more than 20 yearsand with this capability and experience, 2H willperform part of the detailed engineering of the18 single top tensioner risers (STTRs) selectedfor the Kaombo development. 2H will workclosely with HMC as a part of an integrateddesign team, with 2H responsible for theengineering of the buoyancy tank, upper riser

assembly and lower riser assembly packagestogether with global analysis and systemsengineering of the risers. The Kaombo development, located offshoreAngola in water depths extending from 1,425mto 1,925m, will include the Gindungo, Gengibre,Canela, Louro, Mostarda west and Caril fieldstied back to two turret-moored FPSOs. Theselected concept consists of a number ofproduction loops with one insulated productionriser and one non-insulated service riser perfield. Water injection risers will also be required.The project is currently in the detailedengineering stage with 2H also contracted tosupport HMC through the procurement,fabrication and installation phases.

2H Offshore secures riser engineering for Total’sKaombo block


Oil Review Africa Issue Five 2014

AAFEW YEARS ago it may have seemed that much of the focus at theannual Platts Global Crude Oil Summit in London was on areas likethe Middle East and the burgeoning US market, rather than Africa.However, Africa was exhaustively addressed in mid-May when no

fewer than three speakers at the seventh annual Platts Global Crude Oil Summit(http://events.platts.com/crude-oil-summit-2014), which took place in London,focused on some or all of the continent.

Of course, the northern part of the continent also came up when the MiddleEast was discussed. For example Amrita Sen, chief oil analyst of Energy Aspects,reminded us that despite US growth, oil prices had not responded at that time.This was in part due to the problems in Iraq — which have got worse since May— but also to those in Libya where warring groups are doing little for stability ofthe country in general and the oil industry in particular.

She noted that internal oil demand growth from the producing countries ofthe Middle East has been ‘phenomenal’ — which is something the region has incommon with Africa. That, however, is not necessarily a good thing. Growthreflects rising living standards, certainly, but is also fed in part by subsidies. “It’seasier to remove subsidies if you’re an oil importer,” said Sen, referring to Indiaand China in particular. In countries where cheap oil is perceived as a birthright,subsidy reform may not be so easy to address. Exports, therefore, will suffer. TheMiddle East is far from alone in having to address such problems. Africa too isexperiencing market distortions. Refining, for example, is suffering.

Nevertheless, in his talk, entitled African Downstream Developments,Anthony Ogbuigwe, whose CV includes stints as former group executive director,refineries & petrochemicals, NNPC and ex-president of the African RefinersAssociation, was upbeat to begin with. The economies of Africa are growing, hetold us, as is the population — overtaking China, on present trends, by 2025.

“As an African I’m concerned about the implications in terms of the ability tofeed all of those mouths,” he explained, “but it creates an interesting opportunityfor both the refining industry and the oil industry as a whole.”

However, he noted that across the continent as a whole there is a large levelof subsidy, which is deterring refinery investment. The high proportion of stateownership in the sub-Saharan region doesn't help either. “This has led toinefficiencies in the refining industry,” Ogbuigwe pointed out.

But a growing African population — and GDP —means growing demand forrefined products. That either means imports or a significant investment inrefining. Government investment faces the added difficulty that other sectors,like health, power generation, infrastructure and education, have their ownclaims on government money. Nevertheless, Ogbuigwe made the important pointthat “the refining industry has the potential to solve another problem… jobcreation”. High youth unemployment in particular could be tackled with greaterinvestment in refining. “[There is] so much opportunity,” he noted, “but you’relooking for the money.”

With over 120 refinery projects announced in 10 years and only four newrefineries built on stranded crude, things don’t seem to be improving. Could theprivate sector get involved? Dangote Industries may be the big hope here; it has

plans for a major refinery in 2016. Ogbuigwe suggested — wryly perhaps? — that“once that refinery gets built — if it gets built — government refineries will nevermaterialise”. That may not be a bad thing given the poor management of existingstate-owned refineries and the fact that right now they work well below installedcapacity.

Private sector entrants nevertheless need higher margins to make investmentworthwhile. The probable introduction of European-style environmental standardscould make this even more important. Government divestment and an end tosubsidies would be welcome to the private sector except that, as Ogbuigweremarked, “Nigeria has also seen the reaction when subsidies are removed”.Wariness of public hostility to subsidy reform does not bode well for the future ofrefining in many countries.

Ogbuigwe did note, however, that, continuing reliance on imports could,perversely, bring an opportunity: a need for more storage and distributionfacilities across the continent. Investment here could be helpful but he asked,“Who will invest?”

Ideally, though, as he said, “The refining industry must be more commerciallydriven… A dynamic downstream industry is emerging and is essential toeconomic growth in Africa. Targeted investments, environmental leadership andefficient management will separate the leaders from the rest.”

Ade Adeola, managing director and head energy & chemicals – Africa,Standard Chartered Bank had some interesting insights in his presentationentitled African E&P Growth Trends. Oil and gas in Africa is going through anunprecedented boom, he noted. He highlighted the discoveries in East Africa inparticular, calling them “a key story”, but pointed out that existing markets likeNigeria and Angola and newer ones like the West African Transform Margin arecontinuing to offer new discoveries. The pace of exploration is certainly pickingup. “Once a discovery is made,” Adeola explained, “it tends to de-risk the areaand then you find more participation in those regions”.

Equally encouraging is the fact that exploration success rates are high, led bysub-Saharan Africa in general and East Africa in particular. “The joke at themoment,” Adeola said, “is that almost every country in Africa has got somecommercial-scale-type opportunity”. Political instability makes North Africa moredifficult to call, though Adeola was more optimistic about the prospects for Libyathan some commentators.

The gas market in particular is seeing East Africa offer a huge counterbalancein gas to Nigerian and Algerian dominance, though attendees probably thoughtthe oil and gas chart for West Africa looked healthy enough — it even cited SãoTomé and Namibia as prospects.

The usual major corporate suspects, notably Total, are still in play but likeother speakers, Adeola noted the strength of the independents, some of themleading in discoveries in a few markets. Of course, that will probably meanconsolidation over time — rich pickings for the big names, perhaps — but, Adeolasaid, “the entrepreneurial zeal of the independents will continue to define thembeing able to enter some of the more difficult geographies.” He added, “Everytwo to three weeks we have one independent or other coming to talk to usabout funding opportunities.”

The refining industry must be morecommercially driven… A dynamic

downstream industry is emerging and isessential to economic growth in Africa.

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Africa is enjoying an unprecedented oil and gas boom — and that boom was a hot topicat the annual Platts Global Crude Oil Summit in London earlier this year. However, saysPhil Desmond, African management of these resources was also addressed — and notalways favourably.

Managing an oil andgas boom


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He also discussed the rise of local content,calling it, despite its impact on project cost andpotential for delaying projects, “a positivedevelopment — up to a point”. For example it canhelp major players to minimise risk and get morestakeholders in the community employed within theindustry. This means having more local skills to drawon. The only problem seems to be the growth ofbizarre local content legislation, some of whichseems to ring-fence each country, lose scale andpromote inefficiency. Better perhaps what Adeolacalled “doing it in a smart way” via a regionallocal content approach. This means, for example,

that a skillset in Kenya can be marketed to acountry that needs it.

“So,” he summarised, “the key thoughts toleave you with are: Africa is going through anunprecedented boom, the market is changing interms of the landscape, independents are thenames to watch.” However, he added, “Financing iscritical…you should look forward to much moreconsolidation because the market is hopelesslyfragmented at the moment, and subscale operatorsare not likely to survive.”

Dr Victor Adeniran, general manager, crude oilcommercial, Total E&P Nigeria, admitted that in histalk West African Growth from the Frontline hewould be touching on similar themes to Adeola.However, it was still startling to look at his chartsmapping the period from 1975, when there wereseven or fewer countries with reasonable oilreserves in Africa, to a producing area of more than25 countries by 2015. A country-by-country reviewof the major names in West Africa tended tounderline that, as he said, “Ghana is the vanguardof the new generation” in the west and thatactivities are moving from land and shallow waterto deepwater. Nigeria and Angola remain major oilpowers — in gas as well as oil, although Nigeriastill, it seems, needs to reduce gas flaring, whichcomes as something of a disappointment after theNigerian Gas Master Plan.

Dr Adeniran finished with a sort of wish listthat is probably shared by many of those involvedin the industry — one that called on stakeholderassistance to harmonize the management ofresources with financial and technical support.More specifically that support could includebuilding infrastructure (such as refinery andpipelines), pursuing transparency initiatives,combating corruption and promoting goodgovernance.

Fiscal probity, clearly, remains a concern, alongwith, legal uncertainty, lack of refinery capacity,lack of storage, poor development of local skills,too much subsidy and (in Nigeria) wasted gas.Problems in the north are unlikely to ease anytime soon. It certainly seems that there are a lot ofthings to worry about. However, finding more oiland gas doesn't appear to be one of them.

Despite questions about management of the oiland gas boom, there’s probably a lot more growthto come. It’s hard to believe therefore that Africawon’t be an even stronger focus at next year’sPlatts Global Crude Oil Summit. �


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SSO THE POLL has been held, and thevotes cast. On the 7th May 2014, SouthAfrica successfully held its first ‘bornfree’ election, with the result marking a

fifth successive victory for the ruling AfricanNational Congress (ANC) with upwards of 60 percent of the vote.

Energy policy has been a hot button topic forthe electorate during the recent electoralcampaign, and for good reason. The country ispoised to be a hotbed of activity for the industryover the next half-decade. Offshore, vast tractsalong the south and east coasts, as well as withinthe Orange River Basin, have been licensed forexploration by major players including Petro SA,Forest Oil, Tullow Oil and BHP Billiton.

Onshore, the nation is in prime position to reapthe benefits of the global shale revolution, giventhat South Africa is ranked highly in terms ofrecoverable shale gas reserves – estimated atapproximately 390 tcf. With numbers like this, it islittle wonder that many talk of South Africabecoming a net exporter of energy within the nextdecade. Few disagree that future prosperity andenergy security hinge on exploiting these abundantnatural resources, but with the election now over,the practical quandary of just how these loftyambitions can be met remains.

Rising costs, rolling blackoutsFor most, rising fuel prices are a particularconcern. Back in March, the cost of fuel wentabove US$1.3 (R14) per litre for the first time inhistory. Import prices also hit record highs at thestart of 2014, and remain far higher than theywere just two years ago.

There is also concern over the country’s abilityto maintain a stable supply of electricity. Avulnerable power supply means that for many,outages remain a reality. “Load shedding”, wherebyareas are taken off the power grid on a rotatingschedule in order to cope with an imbalance ofsupply and demand to prevent a total blackout, wasfirst introduced in January 2008 and continuedintermittently for several months. This resulted inserious disruption to both the economy andeveryday lives, with people temporarily unable tocook, travel safely, charge their phones, or usehousehold appliances. Since then, the fear of masspower cuts has remained.

Yet natural resources are not worth muchwithout human resources – an adequate supply ofthe skilled labour required to find, extract and

process the reserves. South Africa faces a criticalshortage of skilled labour in this area at present,let alone with regard to the additional workersthat will be needed to support the plannedexplosion of activity.

More than US$1bn is to be spent onexploration, with more than 10 companies havingbeen granted exploration licences over the courseof the last 18 months. ExxonMobil and Anadarkoacquired deepwater rights on the East Coast andBHP Billiton, Cairn India and Sunbird Energy onthe West Coast.

South Africa has also been estimated to havethe fifth-largest shale gas reserves in the world,and activity in this sector is ramping upsignificantly after the government lifted itsmoratorium on shale development in 2012. Thereis also the planned Mthombo crude oil refineryproject, which will be located in the CoegaIndustrial Development Zone near Port Elizabethin the Eastern Cape. Once complete, the refinerywill process 400,000bpd of crude oil and will bethe largest in the continent.

Plenty of reserves, not enoughexperienceThere is a global skills shortage within oil and gas– an acute worldwide lack of staff with 10 to 15years’ industry experience thanks to a generalfreeze on recruitment during the ‘80s oil glut.

However, South Africa faces an addedshortage given its status as an emerging marketfor oil and gas that has not yet had the time todevelop skills domestically. This is evidenced bythe relative lack of specific oil and gas trainingprogrammes at university level. And while theindustry certainly needs more highly skilledengineers, it also needs a lot more tool-pushers,welders, and pipe fitters. So it is clear that arethink of vocational training is necessary.

Idiosyncrasies in South African labour lawstend to exacerbate the issue. The constitutionaffords unions a large amount of power, andindustrial relations have historically been volatileand frayed. The oil and gas industry does nothave a union of its own at present (though this islikely to change) but the diversity of its supplychain means that it can easily be disrupted byindustrial action elsewhere.

Overcoming hiring restrictionsWhile the skills shortage in the oil and gas industry

South Africa has a limited pool of talent from which to draw, which is in part a symptom of a global skills shortagewithin oil and gas.

Natural resources are notworth much without human

resources.

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South Africa must raise the profile of its oil and gas industry if the true potential of itsmassive reserves is to be realised, says Petroplan’s Jaques Rautenbach.

Awareness key when tapping into South Africa’senergy renaissance



is a global concern, the biggest difficulties faced inSouth Africa stem from the restrictions our firmsface on hiring from abroad. The Black EmpowermentAct places strict quotas on companies requiringthem to hire from the domestic talent pool,specifically from groups considered to bedisadvantaged in terms of ethnicity or gender. Evenwhere a role is ultimately filled by, say, a Westernex-pat, the business must ensure they haveadvertised locally and that no local candidates aresuitable for the role in question.

This is a problem for the country’s oil and gasindustry for two reasons. Firstly, it has a modestpopulation (around 53mn) relative to its physicalsize and the scope of the exploration anddevelopment planned. Secondly, much of thisfuture development lies in deepwater drilling, inconditions similar to offshore fields in the NorthSea in Europe and in North America and Canadaspecifically. Much of the necessary technical skillsand expertise needed will ideally have to beimported from these regions. Knowledge transfer,ideally, should be a priority.

Fortunately, there are certain projects in theindustry where expats can be recruited, providedthat a local recruitment drive has been conductedfirst. So while black empowerment policies arebeing implemented and more previouslydisadvantaged nationals are being recruited intoroles, if expats have the necessary skills, they canbe used. In addition, there is more training beingprovided in-country, so this will be less of an issuein the future. For now however, this should beregarded as more of a five year strategy for thecountry and our firms, than a short-term fix for ouroil and gas industry.

The recently passed Mineral and PetroleumResources Development Amendment Bill is afurther consideration. While the intention behindthe law – to ensure that the benefits ofdevelopment filter through to the population atlarge – is noble and admirable, there is a dangerthat it will hamper foreign investment in the oiland gas industry at what is a critical juncture. Indoing so, it may only end up hurting the prospectsof the very citizens it is designed to protect.

Nevertheless, the Bill hasn’t yet been signedoff, and since it gives the state an automatic 20 percent stake in new oil and gas exploration andproduction ventures, as well as the right to acquirean unspecified additional share at an ‘agreed price’,

it could be a good Bill for South Africa’s nationals.

Finding a way forwardThe challenges faced by South Africa’s oil and gasindustry will need to be addressed if the countryis to have any realistic hope of fulfilling itsambitions. There is no magic bullet but reform oflabour laws aside, there are various things theGovernment and industry can do (and are doing)to mitigate the problem.

The first is to encourage more sideways hiringfrom sectors containing similar or related skills.As a nation, South Africa is uniquely positioned topursue this option thanks to its established, largeand prosperous mining sector, which has plentyof overlap with oil and gas in terms of roles (eg,heavy equipment specialists, hydraulicspecialists). This means there are a lot ofcandidates out there that can make the jumpacross with relatively minimal training (eg, anintensive three month programme as opposed toa two year one).

A potential barrier however, is that the oil andgas industry is not very well known in SouthAfrica, so it is important to build awareness of theopportunities on offer. Sideways hiring ishappening elsewhere, and is already happening inSouth Africa, so the more awareness the industrygets, the more sideways recruiting will happen –particularly as education and training picks up.Petroplan is seeing a gradual transfer of talentfrom the mining and engineering industries, andis continuing to encourage candidates to consider

roles in oil and gas based on skills it identifies asbeing transferable.

The second way to address the skills shortage isto focus on improving and expanding trainingopportunities, both at entry-level and to ‘fast-track’the development of existing junior workers.Progress has already been made on this front: theGovernment has made training a tax-deductibleexpense, and major companies are now recruiting100-200 graduates a year. Students are once againbeing encouraged to pursue trade skills, and severalSouth African universities are in talks with the UK’sRobert Gordon University with regards developingan oil and gas programme.

Furthermore, the South African Oil & GasAlliance (SAOGA) established recently isworking closely with businesses, schools,universities and Government to encouragetraining through its Skills Programme Office.This encompasses a variety of initiatives suchas providing stipends to students training aswelders, riggers, pipefitters, and other high-demand trade skills. It is also subsidisingcourses for those currently employed in theindustry, and working with colleges andauthorities to bring local qualification standardsin line with global industry standards. Inaddition, SAOGA is working to develop a‘training cluster’ in Cape Town, with a proposed‘Oil & Gas Academy’ intended to provide acomprehensive package of training options.

These are all positive steps, but will taketime to come into effect. In the meantime, oiland gas players looking to take advantage ofSouth Africa’s renaissance will need to leanmore heavily than usual on third-partyworkforce specialists able to draw on theirglobal network of industry contacts, whilesimilarly demonstrating a firm understanding ofthe local culture and labour market. �


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Much of the future development lies in deepwater drilling. Image: BBC

The second way to addressthe skills shortage is to focuson improving and expanding

training opportunities.


THIS BOOK IS not an easy five minute read but everybody, who does businessof any sort, in any part, of Africa, or in oil anywhere in the world, should read it.Not reading it would involve risk and for that there is one very simple reason.Behind everything every human does, there are three drivers; food, water andenergy. Oil dominates global energy and it involves more cash than anythingelse. Where there is money, there is corruption and this book credibly namesnames, even of the world’s most powerful politicians.

The big global oil companies have budgets bigger than most governmentsand have significant influence in the most inner corridors of power even in thesuper-powers. So how does this book help every business person everywhere?Firstly, it covers the use of “fixers” and that, in turn, raises the discussion ofwhere legitimate introductions and assistances begin to turn “grey” and get

into what might morally and/or legally be “bribery” or “corruption”. Thismatters because the USA, many of the countries of the EU, and others, haverules about companies which are based in those countries and do businessabroad, including Africa, and pay what might in law be called “bribes” whichcan carry heavy fines and even imprisonment.

This book covers everything oil affects from subsistence farming todictators and war involving the super-powers. Perhaps most remarkably and toadd credence to its story, it names individuals from fixers to heads of state,again including the super-powers.

The Secret World of Oil is written by Ken Silverstein, published by VersoBooks, ISBN 9781781681374.Bill Butterworth

Book review: The secret world of oil


S05�ORA�5�2014�-�South�Africa_Layout�1��20/10/2014��10:26��Page�17


MMODERN SEISMIC TECHNOLOGYhas indicated South Africanholdings of 390 tcf of technicallyrecoverable shale gas reserves

located in the Karoo basin and possibly a further60 tcf offshore making South Africa’s potentialgas reserves two and a half times greater thanNigeria’s. This summer heralded the start ofdrilling South Africa’s first offshore deep waterwell by French energy giant Total in theOuteniqua Basin, south of Mossel Bay off theWestern Cape, “in one of the few remainingunder-explored offshore regions in Africa,"reported Marc Blaizot, senior vice-president forexploration at Total in South Africa in July 2014.Currently, South African gas reserves are thoughtto be located in the Karoo Desert and off thesouth and west coasts as shown in Figure 1.

Whether South Africa could rival Nigeria’sgas output three decades from now remains anopen question. “However, if they are as lucky withdiscoveries as their northern neighbours -including Mozambique and Angola - have been,then anything is possible” said Christo Roux,industry lead, Oil & Gas Southern Africa KPMGServices (Pty) Ltd. But realistically, “it will takehuge amounts of investment in new fields andsupport services before South Africa can competewith its neighbours to the north” and as ChristoRoux warned,“it could take between seven andten years to develop a field both onshore andoffshore, if exploration proves successful”.

Why are the energy companiesinterested in South African gas?The prospect of huge under explored gas reservescombined with a large domestic market withgrowing power needs offer an enticingcombination of resource and economicopportunity for the energy majors and SouthAfrica’s power utilities. South Africa’s substantialmining industry, car makers, factories and small-and medium-sized businesses’ sector need astable electricity supply at a reasonable price inorder to grow. Moreover, one in five SouthAfricans does not have access to electricity and istherefore deemed to be in fuel poverty. The opportunities offered by a large and

growing market are matched by the scale ofSouth Africa’s resource base. It has beenestimated shale gas may generate US$100bn ofsales within three decades, reports StandardBank September 2014. As Christo Rouxexplained: “The South African onshore gas

exploration opportunities consist of coal bedmethane and shale gas, with the latter by farthe most significant opportunity of the two,whilst estimates for offshore reserves by thePetroleum Agency SA and EIA, areapproximately 60 tcf of gas.”

Government keen to develop gasSouth Africa needs economic growth of some sixper cent per annum to create jobs for a tenth ofthe eight million unemployed. The developmentof its gas reserves offers the South Africangovernment the prospect of essential furthereconomic development as well as an opportunityto tackle the unacceptably high unemploymentrate. Achieving energy security, reducing powershortages and providing electricity at areasonable price are dependent on South Africadeveloping its domestic gas reserves. In the lastlicensing round in 2009, the government awardedlicenses to 20 consortia, of which 12 were energysuper majors, for a total of 34 largelyconventional gas licenses.

Standard Bank estimates that exploiting even

half of the commercial gas potential thought toexist in South Africa, could add a whole 1.5percentage points to the country’s gross domesticproduct. Whilst, according to Johannesburg-basedeconomic consultancy Econometrix, if just 48.5tcf of shale gas was developed, the resultantcheap domestically produced gas could generatebetween 300,000 and 700,000 new jobs in thecountry over a 25-year period. Exploitation of itsgas reserves would enable South Africa to reduceits dependency on coal, which currently accountsfor 72 per cent of power generation. In additionthe strain on South Africa’s balance of paymentsfrom the import of 500,000 bpd of crude oil couldbe eased by increasing domestic gas production,as Christo Roux noted. “The negative impact thatoil importation has had on the balance ofpayments will further increase the desire to findour own source of fuel”.

Moreover, South Africa is anxious to reduceits carbon emissions in keeping with its Kyotoagreements. “Shale gas can provide a cleanersource of electricity and is about 30 per centmore energy efficient than coal,“ according toProfessor Tony Leiman, who was part of a SouthAfrican task team appointed by mineralresources minister Susan Shabangu. Drilling indeep water is novel to South Africa and willtherefore also bring with it avenues for skillstransfer in the deep-water exploration space,"mineral resources minister, Ngoako Ramatlhoditold Bloomberg in July 2014.

The opportunities offered bya large and growing marketare matched by the scale ofSouth Africa’s resource base.

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Driven by the recent gas discoveries in Namibia, Mozambique and Tanzania, major energycompanies have turned their sights to South Africa. Nicholas Newman reports.

South Africa’sgas prospects



Given the variety of potential benefits fromexploration and development of its on andoffshore gas reserves, the government hasraised the target for total contribution of gas inthe energy mix to five per cent by 2020, at atime of 3.4 per cent a year economic growth,reported the Petroleum Agency of South Africa,September 2014.

Is there a market for gas?“There is a growing market for gas in SouthAfrica, mainly for power generation and industrialpurposes such as turning gas into petroleum-derived products such as petrol, plastic,feedstocks and fertiliser,”stated Simon AshbyRudd, global head of oil & gas investmentbanking at Standard Bank. The power generationsector would be the major customer fordomestically produced gas. “Demand for gaswould primarily be from South Africa’s energygeneration industry”, affirmed Richard MichaelFichardt of the Department of Energyindependent power producer units. He added,“Gas is cheaper than new coal power or dieselpower plant” as seen in Figure 2.

Already there is one gas-fuelled 140MWpower plant at Sasolburg in South Africa, run bySASOL using Mozambique-sourced gas deliveredby a 865 km long pipeline with capacity of 4.7bncu m of gas a year. State power utility Eskom,plans to convert its diesel-fired power stations togas and its peaking plants could also use gas. TheSouth African Department of Energy’s GasUtilisation Master Plan, issued in June 2014,proposes that the so called gas-to-power plants,(171MW Acacia, 1338 MW Ankerlig, 750 MWGourikwa and 171MW Port Rex power stations),currently fuelled by diesel, should be fired by gasas originally designed. The plan is alsoconsidering the potential for converting the

diesel-fuelled open-cycle gas turbines, that areeither operational or under development, inSaldanha Bay, Mossel Bay, Coega in PortElizabeth, Durban and Richards Bay into closed-cycle gas turbines. In addition, since the 1990’sPetroSA has been exploiting gas from offshorefields near Mossel Bay and converting this intoliquid fuels – GTL production capacity is 45,000bpd but currently 10,000 bpd is being producedfor motorists. In addition Liquid Petroleum Gas(LPG) demand and supply stands at 600,000tonnes, reports the South African based FossilFuel Foundation, September 2014. See Figure 3. Moreover, the Mossgas gas-to-liquid plant

could buy gas, as could the industrialdevelopment zones on the coast. Longer term,gas could be used in the transport sector. Thegovernment expects imported gas to meet six percent of all new generation capacity and OCGTs tomeet eight per cent by 2020. “In March 2014South Africa’s first compressed natural gas publicfilling station was introduced, along with aninitiative to convert 1,000 taxis to the cleanerfuel alternative,” noted Christo Roux. There istherefore market demand for gas.

Current obstaclesWhilst offshore exploration drilling has continuedsince July, onshore exploration in the KarooDesert, has been delayed by the threat of legal

action by Green Groups as well as the delayedadoption of regulations meeting the AmericanPetroleum Institute Standards, reportedBloomberg, July 2014. Owing to industry disquietconcerning the proposal to allocate a 20 percent stake in new gas and oil exploration andproduction ventures to the state, under the semi-approved changes to the 2002 Mineral andPetroleum Resources Development Act, mineralresources, minister Ngoako Ramatlhodi hasrequested that President Jacob Zuma submit anamendment to Parliament that reflects morefairly the risks and rewards of gas exploration.The prospect of a large and growing market

for gas has encouraged optimism amongstprospective shale gas explorers including Irish oilindependent Falcon Oil & Gas Ltd, whose CEO,O’Quigley, expects to be awarded a permit to startexploration of its shale plot in the Karoo basinbefore the year’s end when the technicalregulations governing shale exploration are due.Lastly, and not least, are the costs ofconstruction of a national gas distributionnetwork, an essential prerequisite for exploitationof South Africa’s substantial gas reserves incoming years. It looks like South Africa is at the beginning

of an exciting long journey to develop its gasresources which should, perhaps, see it rival itsneighbour to the north. �


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There is a growing marketfor gas in South Africa,

mainly for power generationand industrial purposes.


Table 1Exploration and Gas Reserves Production Consumption Imports Exports Gas as part of appraisal wells From Mozambique total energy mix

South Africa 9 410 TCF 39 BCF 166 BCF 127 BCF N/A 3%Nigeria 142 159 TCF 1.2 TCF 5.4 TCF N/A 950 BCF 5%

Sources: BP Energy Outlook 2013, EIA 2014, SAPIA 2014, Baker Hughes, Woodmac.

THE SOUTH AFRICAN Oil & Gas Alliance (SAOGA) is an outgrowthof a provincial government sector development programmearound the oil and gas industry in the Western Cape Province ofSouth Africa (a region that includes Cape Town, Mossel Bay andSaldanha Bay). This programme was focused on a significantcluster of upstream supplier companies that developed in the

province in response to upstream growth in West Africa and thethe establishment of domestic production in Mossel Bay in thelate 1980s.SAOGA is dedicated to promoting the upstream and midstreamsectors of the oil and gas value chain, primarily in South Africaand regionally in southern Africa.

Supporting oil and gas business


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HHEADLINES REMAIN BLEAK regardingthe Nigerian oil industry, with oiltheft, instability and corruptiondominating. Yet, the fundamental

industry shift in the country continuesunabated, with large numbers of independentsinvesting in an onshore play still holding a lotof promise, filling the space vacated by majorsretreating to the safer deepwater.

On a macro level there is little reason tocelebrate the state of Nigeria’s oil sector. Justlisting some of the main problems affecting itrepresents a litany of systemic issues: Securityin its oil producing regions is as bad as ever,with oil and refined products theft from thecountry’s pipeline system being rife. Investmentappetite is low because of this and a continuingpiracy threat offshore. Uncertainty over thefundamental Petroleum Industry Bill (PIB),promising radical reform to, among other,taxation levels, but stuck in parliament foryears, also undermines industry confidence.Meanwhile, corruption engulfs much of theindustry and politics nexus, with, for example,juicy long-term supply contracts recently havingbeen awarded to domestic companies of littlemarket standing and experience, but allegedlywell-connected management interests.

The effects are on the whole easy to fathom.Crude output remains far below the highs of theprevious decade, lingering firmly below twomillion bpd (in August as low as 1.89mn bpd)throughout this year, according to theInternational Energy Agency (IEA).

A report from the Nigerian NationalPetroleum Corp (NNPC) in late-August revealedthat 3,561 product pipelines out of a total of6,000 in the country were pierced at some pointduring the previous year. Direct product lossesfrom theft amounted to around US$243mn. Thenumber of theft attacks on the product pipelinesystem jumped by 80 per cent in 2013,compared to 2012 and counted by value of thestolen products, the increase was of similar size.

Moreover, Nigeria’s refineries have operatedat an average of 15 per cent of installedprocessing capacity of 445,000 bpd, so far thisyear, according to NNPC. That is down from a 22per cent average utilisation rate during 2013.

In total, oil theft is estimated to cost thecountry somewhere between US$6.5-12bn peryear, depending on who is asked. The constantdamaging of infrastructure means that oilproduction suffers badly. Output capacity should

be much higher, with the official productiontarget for 2014 having been set to 2.39mn bpd,down from an equally unreachable 2.53mn bpdin 2013. To add further uncertainty, the industryis not only fearing a deteriorating fiscal termssituation when the PIB is passed, but alsoseeing what is widely regarded as an increasedpolitical steering in the award of crudemarketing contracts. In mid-April the NNPCawarded 28 companies 12-month contracts,with almost all the international tradingcompanies, which for many years successfullyhave undertaken this work, being replaced bylocal companies of little to no experience inlarge-scale trading. Those controversial awardsfollowed hot on the heels of central bankgovernor Sanusi Lamido Sanusi’s Februaryaccusation that the NNPC had failed to remitaround US$20bn of its US$67bn crude salesearnings to the state coffers between January2012 and July 2013.

Sector opening up in new waysYet a lot is going on in the Nigerian oil sectorwhich belies the picture of a sector in deepdecline and pessimism over the future. Thewithdrawal of majors from Nigeria’s onshoreand the Niger Delta shallow water because oftheir wish to lower their exposure to violence

and theft, as well as their unwillingness to takeon new risks with investments in enhanced oilrecovery (EOR) at increasingly mature fields, hasopened up the sector in new ways.

A retreat of majors has allowed the entry ofa very large number of independents, often withroots in Nigeria itself. These companies usetheir local knowledge and their comparativelysmall organisation to focus on one or moreassets, allowing them to redevelop and realiseotherwise hidden values.

They also undertake the construction ofmany more smaller pipelines to supplant areliance on often one large trunk pipeline forthe export of crude from a field to a processingfacility or an export terminal. As a policy it isprudent from a singular asset’s point-of-view. Itcontrasts, however, with a major’s way ofmanaging a host of oil fields, who will focus onalways seeking infrastructural synergies.

While no solution to the oil theft problem in

The withdrawal of majors from Nigeria’s onshore and the NigerDelta shallow water has opened up the sector in new ways.

A retreat of majors hasallowed the entry of a very

large number ofindependents, often withroots in Nigeria itself.

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Sam Ciszuk looks at the changes occurring in the Nigerian oil industry. Despite the bleakheadlines, there are also reasons for optimism.

Plenty going on, but not enough



itself, developing multiple crude field exportconnections is increasingly becoming a lead IOCstrategy to mitigate the exposure to the disruptionswhich tend to follow on the oil theft problem.

This boom in independents redevelopingNigeria’s maturing onshore fields does on onelevel not represent anything new in the oilindustry. It tends to be part of the business’ lifecycle that majors retreat in favour ofindependents in an oil play when the upsideexpected from a second or third wave ofupgrades is not deemed interesting enough fora large corporation.

Demanding too much and too scatteredproject management resources from a large

company again means the synergies andeconomies of scale are not found. For a smallindependent the opposite is the case, as itsorganisation often is ideal to the scale of one ora few of these projects. Indeed, the North Sea isone oil play where a similar trend has beenseen in the past 15 years.

Nigeria stands out, however, as the politicaland violence risk means that majors aredivesting assets at potentially an earlier stageand thus with a larger upside potential. Theprice can also be regarded as more attractivefor buyers, although ultimately it depends onthe independents’ ability to carry and workthrough the often physical risks associated withtheir projects.

Onshore output capacity is likely tocontinue rising in the years ahead, however sois continued high oil theft. Independents activein the mature Nigerian onshore are largelyplanning with recurring average levels of lossaround 10 per cent in their projects, even withdiversified field export infrastructure. While theindependent boom therefore rejuvenates the

Nigerian oil sector and is likely to finally speedup the indigenisation of the industry’s wholeworkforce, at all levels of expertise, it will notreally help raising the country’s overall oiloutput numbers. After all, the large-scaleproduction increases hoped for in the pastdecade from Nigeria’s deep water acreage arefailing to materialise. Majors might be holdingon to what producing assets they have gotthere, but with fiscal uncertainty abundant,there has been a fall in exploration anddevelopment.

The start of production at the Shell-operated40,000 bpd Bonga North West field inJuly/August represents good news, but actuallyremain a case in point. It is an add-ondevelopment on the 200,000 bpd Bonga projectonstream since 2005 and will essentially serveto lengthen the field’s total production plateau.

Stable and attractive PIB essentialThe lost decade for deepwater exploration anddevelopment could extend for several yearsmore unless a stable and attractive PIB ispassed. The key to that might however be thegrowth of a large domestic industry ofindependents, if it starts to claim its rightfulshare in the country’s political debate. Such agroup will, naturally, be able to lobby Nigeriangovernments from a very different angle and ata different political cost for the governments,than the international majors. It does, however,mean that new political lines will have todevelop before a changed PIB, with better toolsto further both onshore and offshoredevelopment, can be brought forward andpassed. That process is likely to take us at leastone or two years past the upcoming 2015election before it is completed and a new shiftin trends might start being seen in Nigeria. �


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Indigenous participation is key for oil industry development. Image:Telegraph.co.uk

The lost decade for deepwaterexploration and developmentcould extend for several years

more unless a stable andattractive PIB is passed.


INDICATIONS OF STEADY progress in the nation'soil and gas sector has emerged as Nigeria's waslisted for the first time among the highest payingcontract jobs in oil and gas sector worldwide.

This is coming as the nation advances in itsmove to increase local participation in the industrythrough the Nigerian content agenda of theFederal Government.

The latest release by Swift WorldwideResources, placed Nigeria third and fourthrespectively among the ten highest paid contractjobs, which was led by Australia in two differentcategories. According to the report, which wasobtained by The Guardian, a drilling manager inNigeria earns up to US$2,844 (about N455,040)per day and a project services director earns aboutUS$2,817 (N450,720) per day.

Swift Worldwide Resources however statedthat, "Nigeria is a new country on the list thatranks just below the returning leader," whileAustralia has always maintained the first position.

The list was compiled by analysing Swift's 250

contract positions in the oil and gas industry in 30locations across the globe, for a total of 7,500total jobs.

Countries that are represented for the first timeinclude Nigeria, Venezuela and Angola. No jobs inthe United States (US) cracked the list of highestpaying this year.

Chief executive officer, Swift, Tobias Read, said:"As a global staffing company, we are able to trackshifts in the way jobs are compensated in differentregions."

He said. "High project workloads and ashortage of skilled talent have kept compensationhigh in Australia. Both Iraq and Nigeria have seenunprecedented growth in industry activity, andworkers there are compensated for the risks thatcome with working in the more dangerous areas,accounting for the increase in salary ranges.Salaries in the US are climbing, but salaries inthese emerging markets are climbing faster."

Angola, another African major oil exportingcountry ranked ninth (drilling manager earning

US$631 per day); Australia was ranked first andsecond (completion manager earning US$3,075per day and drilling manager earning US$2,942 perday); Iraq came fifth with a drilling managerearning about US$2,766 per day.

A completion manager in Venezuela pushedthe country to the seventh position with aboutUS$2,715 per day, while Iraq's project manager inIraq comes home with about US$2,700 per day.Others include: Subsea manager in Australia(US$2,692 per day) and completion manager inIraq earning up to US$2,624 per day.

The report said countries aren't the only thingsto have changed on the list this year. Certain jobtitles, like completion manager and drillingmanager, are suddenly in demand and well-compensated due to increases in upstream anddrilling activity around the world.

Swift experts predict that as explorationbecomes more competitive across major oilcompanies, skilled workers in these positions willbe drawing even higher compensations.

Nigeria tops list of highest paying contract jobs in oil, gas sector



AAFRICA’S MOST POPULOUS nation,Nigeria, officially became thecontinent’s largest economy for thefirst time in April with the

announcement of rebased 2013 GDP figures. Nonetheless, for many years now, the country

has been faced with crippling power shortages thathave undermined economic growth. With state-owned utilities unable to meet the challenges ofproviding secure and sufficient electricity supplies,the Nigerian government has laid out a roadmap toestablish a fully privatised power sector. However,this process has recently hit some stumbling blocksthat could potentially undermine longer-terminvestor confidence.

Issues with NIPP privatisation processNigeria had planned to complete the privatisationof the 10 gas power plants, with a combinedcapacity of 4.8GW, being built under the NationalIntegrated Power Project (NIPP) by the end of Q22014. Having accepted bids totalling US$5.8bn forall 10 plants in March 2014 this seemed achievableif not somewhat optimistic.

However, the regulatory reforms and marketrules that are required to be in place as part of theplanned Transitional Electricity Market (TEM) haveyet to be fully instituted. TEM was originallyplanned to be in place by March 2014, but hasbeen delayed as many of the required conditionsthat would allow it to function as intended have yetto be satisfied. This delay has left investors andfinanciers reluctant to release the funds necessaryto complete the transactions.

Furthermore, with distribution companies(DisCos) still recording losses in excess of 50 percent as a result of insufficient tariff levels and

broader market issues, the interim rules designed tobe a bridge to TEM were revised in May. It is yet tobe seen if these measures will lead to TEM beinginstituted and the NIPP privatisation process beingcompleted before year-end, but the current state ofaffairs certainly begs the questions of howattractive Nigeria’s power market really is (orshould be) to investors and whether current projecteconomics and planned market structure are likelyto support the sustained levels of privateinvestment needed to underpin long-termeconomic growth.

Market attractivenessAccording to Precergy’s recently released annualglobal power market attractiveness rankings,Nigeria has only the 62nd most attractive overallpower market and 44th most attractive gas powermarket. The respective scores of 45 out of 100 and55 out of 100 compares to scores of 93 and 94 forUSA, which is the market leader in both categories.

The broader macroeconomic and power sector outlook remains highlyattractive to investors. Soku Gas Plant, SPDC Nigeria

Measures can be (and are)taken to mitigate the risk offinancial losses....associatedwith investing in Nigeria.

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Adrian John, managing director at Precergy Ltd, looks at some of the manyissues that need to be tackled before the country is able to attract the levelsof private investment required to provide the secure power supplies it needsto drive long-term economic growth.

Africa rising: the challenges of powermarket privatisation



Some of the major factors that contribute to thisrelatively poor attractiveness performance includethe political and business risks associated withinvesting in Nigeria. Of course measures can be(and are) taken to mitigate the risk of financiallosses that could result from such political andregulatory risks; and the signing of power purchaseagreements (PPAs) and fuel supply agreements canlargely remove commercial risks.

In spite of such potential difficulties in investingin Nigeria, the broader macroeconomic and powersector outlook remains highly attractive toinvestors. For example, although Nigeria’s GDP ofUS$510bn is 38 per cent higher than South Africa’sUS$370bn, on a per capita basis this is still two anda half times smaller than South Africa’s –indicating large untapped growth potential.

Likewise in the power sector, according tofigures released in July by the Presidential TaskForce on Power, Nigeria had a peak generationcapacity of 3.5GW, which is entirely inadequate tomeet the estimated peak demand of 12.8GW. This.current demand shortfall and longer-term peakdemand growth expectations certainly offer a brightoutlook for power project investors.

Gas power project economicsWith so much current and planned power capacityexpected to make use of Nigeria’s extensive gasreserves, it is worth taking a closer look at how gassupplies and prices may impact the success orfailure of market privatisation.

Currently Nigeria’s domestic gas prices arepegged at US$2/mmBtu, as compared with the

US$6/mmBtu that current Nigerian LNG exportcontracts receive. This large price disparity has theeffect of making gas supplies for domestic use lesssecure, as international oil companies (IOCs), inparticular, seek to gain maximum returns throughgas exports. This situation, combined with thesignificant issue of pipeline vandalism, is currentlyleaving the NIPP projects with insufficient gassupplies, which is another sticking point in theprivatisation process.

In light of this, it’s inevitable that in the longer-term domestic gas prices will have to convergetowards export prices or alternatively will have tobe heavily subsidised by the Nigerian government.Without this, Nigeria will likely face issues ofunderinvestment in gas production for sale todomestic markets – a scenario that wouldultimately lead to reduced peak demand capacityavailability, with gas power plants unable tooperate at full capacity.

The chart below illustrates a number ofinteresting facets of gas power economics inNigeria. Firstly, although the cost for transmissionand distribution must also be accounted for fromthe end-user tariffs, it’s clear that at currentdomestic gas prices of US$2/mn Btu there aresubstantial profit margins available for both CCGTand OCGT gas projects operating at plant loadfactors of 70 per cent, regardless of end-userconsumer. However, at export gas prices ofUS$6/mn Btu these margins reduce dramatically– with residential tariffs too low to be profitable.Of course the much higher industrial consumertariffs are intended to provide cross-subsidisation

of electricity costs for poorer consumers. But withDisCos still making substantial losses, it’s fair toquestion whether this is truly having the intendedeffect. Unfortunately there is insufficient dataavailable to determine the root causes of this, butsuch policies of cross-subsidisation have failed inother countries too (eg, India) – largely becausethey actually incentivise industrial consumers toinvest in captive power plants, which offer thedual benefits of supply security and lowerelectricity costs.

OutlookPrivatisation of Nigeria’s power market is intendedto solve the major issues that state utilities simplycould not address. However, the reasons for therecent delays in completing the NIPP privatisationprocess and deeper analysis of gas power projecteconomics indicate that Nigeria still has manyissues to tackle before the country is able to attractthe levels of private investment required to providethe secure power supplies it needs to drive long-term economic growth. In this context, even highlyachievable installed capacity targets of 20GW by2020 may not be met. So, prospective projectinvestors will no doubt be keenly awaiting thecompletion of the NIPP privatisation deals and theimplementation of TEM before pressing ahead withtheir current project proposals.

Adrian John, managing director atPrecergy LtdAdrian has extensive experience within the energyindustry and has particular experience of strategicanalysis of power, oil & gas, and offshore andmarine vessel markets. He’s conducted manycommercial due diligence studies for investmentbanks and private equity firms, as well as carriedout commissioned bespoke research projects forclients throughout power and oil & gas valuechains. This has included many geographic areasworldwide, in upstream, midstream anddownstream sectors.

About PrecergyPrecergy is an independent energy businessconsultancy that provides advanced researchand analytics to assist clients with key strategicbusiness development and investmentdecisions. The company specialises in theprovision of business strategy, commercial &market due diligence, transaction support, andbespoke research and analysis services forglobal energy markets; and also produces awide range of published market studiesunderpinned by its comprehensive proprietaryglobal energy databases. Focussing on thepower and oil & gas sectors, the company hasextensive experience in geographic areasworldwide, working on upstream, midstream,and downstream related projects �

For further information or comment:Adrian JohnPrecergy1st Floor Holborn Gatewww.precergy.com


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One of the reasons for insufficient gas supplies is pipeline vandalism. Installing a pipeline in the Delta. Image: LJ Welding


0

20

40

60

80

100

120

140

160

CCGT (500MW) LCOE -$2/mmBtu

CCGT (500MW) LCOE -$6/mmBtu

GT (125MW) LCOE -$2/mmBtu

GT (125MW) LCOE -$6/mmBtu

$/M

Wh

Levelised Fuel Cost $/MWh

Levelised O&M Cost $/MWh

Levelised Cost of Capital $/MWh

MYTO II - Average Typical Redidential Consumer (R2) Tariff

MYTO II - Average Large Industrial Consumer (D3) Tariff

Gas Power Project LCOEs and Average End-User Tariffs


HERE, COMPETENCE MEETS SAFETY.

CementingDirectional DrillingWell CompletionWork OverCoiled TubingPumping and other Drilling Services

Mud Engineering ServicesProduction DrillingCasing/Tubing RunningMud logging servicesSurface well testingSlick line services

Remote Operated Vehicle

DredgingShore ProtectionCanalizationLand reclamation

Omega Maritime and Energy Ltd.

Plot 154, Off Joe Eboje Road, Trans Amadi Industrial LayoutPort HarcourtRiver StateNigeria

email: [email protected]

website: www.omegamaritime.comwww.omegamaritimeenergy.com

phone: +234 8099 284653+234 8034 597983

OMEGA MARTIME & ENERGY LIMITED

:secivreS eniraM:secivreS saG & liO

CementingDirectional DrillingWell CompletionWork OverCoiled TubingPumping and other Drilling Services

Mud Engineering ServicesProduction DrillingCasing/Tubing RunningMud logging servicesSurface well testingSlick line services

Remote Operated VehicleV

DredgingShore ProtectionCanalizationLand reclamation

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(ROVs for Deep Water Services)s

S07�ORA�5�2014�-�NNPC�Advertorial_Layout�1��20/10/2014��10:30��Page�29


TTHE ISSUE OF environmental degradation in Ogoniland has been aprotracted one. Their crusade for social justice appears to havemerely created an intractable stalemate.

It is indeed a protracted challenge dating back several administrations. ButI don't agree that it is an intractable challenge. As with many other longstanding unresolved issues, Mr President has demonstrated the requiredpolitical will and has put a road map of actions and engagements in place tomove the Ogoniland challenge out of a stalemate situation.

The challenges had been escalated by an initial break down in trust but wehave been able to create a broad base stakeholders’ involvement approach andhave put a structure in place which we are presently aggressively fine tuning forthe purpose of achieving remediation, restoration and reconciliation.

You may wish to recall that in July 2012, the President approved theestablishment of the Hydrocarbon Pollution Restoration Project (HYPREP) as aspecial unit under the Ministry Of Petroleum Resources. HYPREP is thevehicle for the implementation of the actionable recommendations of theUnited Nations Environment Program (UNEP) report on EnvironmentalRestoration in Ogoniland.

I have signed the draft gazette for the establishment of HYPREP and it hasbeen forwarded to the Ministry of Justice for publication. This document willprovide the rule of law guiding the implementation of the UNEP Report.

How is HYPREP different from other government efforts over the years?

The use of the word contraption may not reflect a grasp of how governmentworks but the principal differences in our own initiatives is our sincerity ofpurpose and the solution-focused political will of this administration.

Having said that, you also need to know that the HYPREP intervention isprivate-sector driven with funding from major oil-companies operating inNigeria. Government's involvement is to the extent of ensuring that fundsreleased are judiciously utilised to fully ensure a robust implementation of theUNEP recommendations.

What are the United Nations' pertinent recommendations for the short,medium and long term management of the Ogoniland environmental issue?

The report is in the public domain, I believe. For a start, there are clearsuggestions as to institutional structures that will be required to administerremedial actions. The recommendations spread across government, publichealth, environmental, operational and community issues that need to beaddressed. It's a holistic approach which brings the views of all the stakeholderson board.

In addition, the report suggested eight emergency measures that must betaken during the ‘Transition Phase’ while the institutional framework forimplementing the various recommendations is being put in place.

The UNEP initiated a survey of all drinking water wells around those wellswhere hydrocarbons were observed and arranged measures based on the results.Their recommendation includes: 6 Ensure that all drinking water wells where hydrocarbons were detected are

marked and that people are informed of the danger; 6 Provide adequate sources of drinking water to those households whose

drinking water supply is impacted; 6 People in Nsisioken Ogale who have been consuming water with benzene

over 900 times the WHO guideline are recorded on a medical registry andtheir health status assessed and followed up;

6 Post signs around all the sites identified as having contamination exceedingintervention values warning the community not to walk through or engage inany other activities at these sites;

6 Post signs in areas where hydrocarbons were observed on surface waterwarning people not to fish, swim or bathe in these areas;

6 Inform all families whose rainwater samples tested positive for hydrocarbonsand advise them not to consume the water; and

6 Mount a public awareness campaign to warn the individuals who areundertaking artisanal refining that such activity are damaging their health.

The approved HYPREP structure provides for seven Technical WorkingGroups (TWGs) which will operate under the supervision of a National Co-ordinator who shall in turn report to me. I provided overall leadership for therestoration project. Also, there is an advisory committee, chaired by mycolleague, the Honourable Minister of Environment composed ofministers/CEOs of stakeholder MDAs and members from other constituencies toguide and provide oversight to the activities of HYPREP. A monitoring andsustainability group in partnership with organisations from the United Nations(UNEP, UNDP, etc) will enforce compliance and sustainability.

Members of the TWGs are to be drawn from federal and state agencies,academia, the oil industry, and the communities. So you can see there isnothing ad hoc or like a contraption about our initiative. This is a seriouscommitment to resolve a serious issue in a sustainable way.

What is the funding structure and time line for implementation?

The UNEP report recommended an initial capital of US$1bn contributed by theoil industry operators with prevailing interests in Ogoniland and the government

Mrs Diezani Alison-Madueke.

I believe the time has come to inject fresh urgency into this process.

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The Honourable Minister of Petroleum Resources, Mrs Diezani Alison-Madueke speakson renewed moves by the Federal Government to rev up environmental restoration workin Ogoniland in a chat with journalists in Abuja.

Ogoniland - revving up environmentalrestoration work



to fund the remediation project. NNPC and the oil companies have agreed on asharing ratio which I have approved as follows: 6 Joint venture partners - 80 per cent;6 The refineries - five per cent; 6 Federal Government (through the 15 per cent Ecological intervention Fund)

As for timeline, environmental restoration is not an event. It is a processthat involves clean up, building of facilities and planting. Above all that, itinvolves engaging the communities and other stakeholders and gettingdisparate views into a sustainable alignment before we even get the freedom toimplement the remediation.

To this end, I wrote recently to Mr Erik Solheim, the UNEP appointed specialenvoy for Ogoni Land on the need for a multi-stakeholder workshop onenvironmental assessment of Ogoniland UNEP report.

I believe the time has come to inject fresh urgency into this process andaddress collaboratively and collectively, how this might be progressed as apriority, to restore these lands and waters and to give the Ogoni communitiesfresh hope and opportunity. We would like the UNEP to facilitate the workshop.We hope to draw on the expertise of the relevant national and internationalagencies and the communities to construct a robust roadmap to deliver a comprehensive remediation programme. Delivery and restitution will be the

focus of the workshop.

Are there any restoration programmes for other Niger Delta communitieswho have suffered similar ecological impacts?

Naturally, I am expecting that lessons from the Ogoni restoration work can beapplied elsewhere in the Niger-Delta and, indeed, other regions of the countrythat at any time face similar environmental degradation problems. I want allhands on deck. Please join us. We are counting on your support. �


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The Ogoni stakeholders


Above all [the process] involves engagingthe communities and other stakeholders and

getting disparate views into a sustainablealignment.



TTHE COMPANY’S CHAIRMAN and CEO, Dr.Kase Lawal, a native Nigerian, has aclear vision for developing this finalfrontier and has been active in the

African oil and gas space since 1990. Thecompany’s recent history has seen it transformfrom a non-operator, minority-interest partner inoffshore Nigerian oil exploration to an operatingcompany about to realise significant productionand reserves increases. CAMAC has amassed animpressive asset portfolio and is on the brink ofbecoming a major player in the African E&P space.The company’s assets consist of nine licensesacross four key African countries, covering 43,000sq km. This includes current production and otherprojects offshore Nigeria as well as explorationlicenses offshore Kenya, Ghana and Gambia, andonshore Kenya.The company has been advancing world-class

frontier exploration in West and East Africa withthe aim of making substantial additions to itsreserves base both near-term in Nigeria andGhana, and over the longer term in its frontierareas. To this end, CAMAC has worked tirelesslyto build a strong technical and operational team

to execute its robust work program.CAMAC’s diverse portfolio of assets allows it to

maximise shareholder value through carefulmanagement of high-return energy projects inAfrica, which offer both short- and long-term cashflow growth potential. CAMAC Energy, which islisted on the New York and Johannesburg StockExchanges, actively manages investments and on-going operations by limiting capital exposure andforming strategic local partnerships and alliances. CAMAC’s ambitious growth strategy is

reflected in its year-to-date activity, which saw thecompany close at US$270mn equity investment inFebruary from South Africa’s Public InvestmentCorporation (PIC), Africa’s largest money manager;close a substantial acquisition; successfully drillthe second of two high-impact development wells;

and close a new US$100mn credit facility.Dr Lawal commented, “The last twelve months

have been transformational for our company. Withthe Allied acquisition, the investment from thePIC, a secondary listing on the JSE and thesuccessful drilling of the Oyo-7 and Oyo-8 wells,we have transformed CAMAC into a significantgrowth platform. We are now a strongerorganisation with 100 per cent economicownership and full operatorship of our high-impact, deepwater offshore assets, and areworking towards increased production andreserves. We are confident in our work plan andwill continue to focus on improving productionand cash flow, while making measured progressdeveloping our world-class, high-impactexploration prospects.”

Success in the Oyo FieldLast year, the company announced it hadsuccessfully drilled the Oyo-7 well, the first ofmultiple planned offshore Nigeria developmentwells in Oil Mining Lease (OML) 120, andencountered better than expected oil and gasreserves in the Miocene and Pliocene formations.During 2014, CAMAC has continued its industry-leading success rate with the successful drilling ofthe Oyo-8 well, also in OML 120. The Oyo-8 welldiscovered four new oil and gas reservoirs with agross hydrocarbon thickness of 34 metres. The result of these successes in the Oyo field,

combined with CAMAC’s use of cutting-edgegeological and geophysical techniques, tools, andintellectual capital, is an inventory of six high-impact, fully-matured exploration prospects, which

target unrisked P50 resources of approximatelythree billion barrels of oil equivalent. In May of this year, CAMAC signed a

Petroleum Agreement relating to the ExpandedShallow Water Tano block in Ghana where threefields have already been discovered – South,North and West by Phillips Petroleum and DanaPetroleum. The company is operator and 30 percent interest owner of what is thought to be alow-risk development opportunity located just 15-35 km off the coast of Ghana. Further up the continent, the company is

continuing frontier exploration activities in TheGambia’s offshore “Transform Margin”. Currentwork includes a geological survey, with a 3Dseismic survey to follow. CAMAC is the operator,with a 100 per cent interest in the blocks.Across the continent in Kenya, CAMAC reports

extensive seismic and regional geophysical studyactivities in the Lamu Basin, where the companyis operator and 100 per cent interest owner of twoonshore and two offshore blocks. These activitiesare leading to the company’s first Kenya wellbeing drilled within the next few years.It all adds up to an impressive “value-creation

model”. Increases in daily production, revenues,cash flows, reserves and resources are beingmatched by exploration progress across thecontinent, contributing to the major expansion ofthe hydrocarbon assets of SSA as a whole. Thenext few years for CAMAC Energy should beexciting indeed. �

For more information about CAMAC Energy, visitwww.camacenergy.com or call +1 713 797 2940.

The FPSO Armada Perdana can process up to 40,000 bopd, with a storage capacity of one million barrels of oil.It currently supports CAMAC’s daily production of approximately 2,000 bbl of oil and 40 mmcf of natural gasfrom the Oyo Field offshore Nigeria in OML 120. Image Bumi Armada.

The last twelve months

have beentransformational for

our company.

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CAMAC Energy Inc, based in Houston, Texas, is focused onAfrican energy resources.

CAMAC Energy poised for significant growthin sub-Saharan Africa


S08�ORA�5�2014�-�Nigeria�Extra_Layout�1��20/10/2014��10:32��Page�32

PEM Offshore LimitedPlot 231, Trans-Amadi Industrial Layout, Port-Harcourt, NigeriaPhone: +234.(0)84.361.390 Mobile: +234.803.403.6935

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PEMPEM OffshoreDelivering Great Services

PEM OFFSHORE SIMULATION & INNOVATION CENTERComplete KONGSBERG World Class Offshore Simulation Training Center, 1st of its Kind in Africa, to be N.I (Nautical Institute) Approved!

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AFREN AND ITS partners have secured approval fortheir plan to develop the Aje field offshore Nigeria.The Nigerian Department of Petroleum

Resources has sanctioned development of theCenomanian oil reservoir with a first phase basedon two subsea production wells tied back to aleased FPSO. These wells will probably comprise arecompletion of the existing Aje-4 well and a newwell drilled close to the Aje-2 subsurface location.The partners are expected to make a final

investment decision soon. First oil should flow inlate 2015. Mid-case reserves are 32.4mn barrelsand analysis of new 3D seismic across the OPL310 and OML113 leases could lead toidentification of further prospects.At the Ebok field, oil production has been

averaging 29,300 bpd. This spring the partnersbegan drilling four additional North Fault Blockwells from the West Fault Block (WFB) platform,comprising three producers and one dual-zonewater injector. The programme is expected to becompleted this year.Production will flow through the existing

mobile offshore platform unit. The Central FaultBlock (CFB) Extension platform is due to beinstalled soon followed by the start ofdevelopment drilling, targeting additionalreservoirs in the CFB. Three producers should beonstream by year-end.In addition, the partners expect to spud the

Ebok deep exploration tail from the West FaultBlock (WFB) platform in Q4 to test deeper QuaIboe and Biafra targets below the producingreservoirs. The exploration tail will targetresources of 50 MMbbl.Among Afren’s other interests in the region is

the shallow-water Okwok field, where reserves areestimated at 46.6mn barrels. The developmentplan calls for installation of a dedicatedproduction facility and wellhead platform with anexport pipeline for stabilized crude oil tied backto, and sharing, the Ebok FSO, 13 km to the west.This year the partners are finalising detailed

reservoir models and detailed development wellplanning/optimisation. The wellhead jacket hasbeen fabricated and is in the Okwok field awaitinginstallation. This will be followed by the start ofdevelopment drilling.Once an ocean-bottom cable 3D seismic has

been completed over the entire Ebok/Okwok/OML115 area, Afren and partner Oriental will spud theAmeena East exploration well targeting resources of65 MMbbl. They are pursuing additional leads vianew seismic and advanced reprocessing projects.Afren expects front-end engineering and

design for the Okoro Further Field development toconclude soon and to secure project sanction. Thewellhead platform will likely be installed duringQ2 2015 followed again by development drilling.

AN INDIGENOUS OIL servicing company, PEMOffshore Limited began to test-run its offshoresimulation and innovation centre (POSAIC),said to be the first of its kind in West Africa.The first phase has been set up and when otherfacilities are put in place, the centre will havea full suite of offshore anchor handlingsimulation equipment, dynamic positioning,power management and crane simulationsystems and support the training of local andforeign offshore personnel involved in the oiland gas operations. It will also meet thegrowing demand for highly competent andqualified personnel for the highly sophisticatedand safety driven industry.Speaking at the opening of the centre, seniorvice president, PEM offshore group, PhilipsEze Matthew commended the NigerianContent Development and Monitoring Board(NCDMB) for stimulating investment in marinecrew training facilities through the marinevessel utilisation scheme. He alsoacknowledged the financing arrangement putin place by the Board under the NigerianContent Development Fund (NCDF) modelwhich provides 30 per cent guarantee onloans accessed and 50 per cent interest raterebate and elongated tenure for loan facilities.All these interventions by the Board made itpossible for the company to come to thislevel, he confirmed.Shedding more light on the operations ofPOSAIC, Matthew explained that the companyentered into an agreement with KongsbergMaritime - the original equipmentmanufacturer for the supply and technical

support of the simulation centre.He stated that “PEM Offshore has secured afive-year commitment from Chevron NigeriaLimited (CNL) and Agip Energy to utilisePOSAIC facility in actualising CNL and Agipannual scholarship award programme to trainNigerian seafarers.“The CNL and Agip programme is expected tocommit an annual sum of US$200,000 that willamount to US$1mn within the first five years.”The senior vice president divulged that thecompany was also in talks with several otherinternational operating oil companies, drillingfirms and the Nigerian Navy and was confidentthat they would patronise the company toreduce capital flight, sustain the local trainingfacility and stimulate more investment inestablishment of training centers ofexcellence.In his remarks, the executive secretary, ErnestNwapa lauded PEM Offshore for bringing theproject to fruition despite the challenges it

experienced while accessing funding fromNigerian financial institutions.He noted that such investments by Nigeriancompanies remove doubts about the capacityof Nigerians to own and operate key assets inthe oil and gas industry.Nwapa maintained that indigenous ownershipof key assets is the best guarantee that theimplementation of the Nigerian Content policywill endure, adding that when Nigerians ownassets, they would insist that provisions of theAct must be implemented with regards todomiciliation of industry work. “It will also beeasier to enforce manning of such assets byNigerians with the requisite skills,” he said.He promised that the Board would protectNigerians that invest in such facilities bygalvanising the industry to put work in suchfacilities.Nwapa also credited the successes recordedso far in implementing the Nigerian ContentAct to the courage and leadership provided bythe minister of petroleum resources, Mrs.Diezani Alison Madueke, and the support ofPresident Goodluck Jonathan to the NigerianContent agenda.On his part, the general manager, NigerianContent, Chevron Nigeria Limited, RaymondWilcox posited that Chevron supported theinitiative from the onset because of its totalcommitment to Nigerian Content agenda asimplemented by NCDMB. He assured thatChevron will rally round other internationaloperating companies in ensuring that thefacility operates optimally as the preferredcenter for training seafarers.

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Afren lines up FPSO for Aje

West Africa’s first offshore simulation centre opens in Lagos



Corporate Head Office5B, Rahman Adeboyejo Street, Lekki Phase1, Lagos, Nigeria

Tel: +234 1 7742304, +234 709 872 7105Email: [email protected]



AANGOLAN CRUDE OUTPUT surprisedmildly on the upside in earlySeptember, as August productionnumbers came in from market surveys,

as well as OPEC. While not delivering any blockbusting growth,

production rose to a healthy 1.75mn bpd accordingto September’s OPEC Monthly Oil Market Report(and according to their collection of estimates fromsecondary sources), after having lingered below1.70mn bpd this year and in May having fallen aslow as 1.46mn bpd. The supply-side weakness in thepast year has not come from any particular long-term problem or development, but rather from theconfluence of expansion work, heavy maintenanceand a significant dose of project delays.

Mature decline a significant challengeMature decline is a significant challenge inAngola, as is an old and dilapidated oil productionand transport infrastructure at many of thecountry’s older oilfields. Added to that, thegrowing part of its upstream sector is locatedalmost completely offshore and in increasingdeepwater. This has for years put a strain on thewar-torn country’s economy.

While providing it with necessary and well-needed funds, the necessary inflow of high-techmaterials and expertise has skewed the economybadly in places like the capital Luanda, making itone of the most expensive cities in the world formost of the past decade.

Likewise, project costs have soared denting thecountry’s attractiveness as an upstreaminvestment destination and making the industrytailor its needed support and supply functions verycarefully to its needs. Perhaps this has been toocarefully done, with several maintenance projectsin the country throughout the past year blamingdelays and overruns on lengthy waiting times atdocks and/or the low availability of maintenancevessels and equipment.

After all, the advanced technical level of muchof Angola’s oil production means that the countryremains dependent on foreign expertise, while thereliance on a large number of FPSO’s, subseainstallations and complex rigs, means thatrelatively few nearby support facilities can providemaintenance and that queues for maintenancecapacity are generally long. The solution - fullparticipation by an Angolan workforce at theupstream industry’s more skilled levels - remainselusive still, although much is being done to furtherlocal education and specialisation.

These challenges are fundamental to Angolahowever, and have been so since the upstreamindustry started its venture out into the country’soffshore, although the cost levels have also risen.Hence no one should be surprised.

Angola has officially targeted a two millionbpd output level for several years now, althoughproject delays and the scale of some of itsdeepwater and pre-salt challenges have marredthe realisation of that target. It could now beclose at hand. With many signs pointing to theend of an unusually heavy maintenance cyclecoming to a close and several key projectsnearing their start-up phase, a more decisiveoutpacing of Angola’s mature decline looks likelyin the second half of 2014 and during 2015.

Target of 2mn bpd likely in 2015Angolan Oil Minister Jose Maria Botelho deVasconcelos has told media that he expects hiscountry to produce on average two million bpd

during next year. As an average, it might be a targeton the optimistic side. Nevertheless, with projectslike Total’s 160,000 bpd Clov, Chevron’s 110,00bpd Mafumeira Sul and Eni’s 80,000 bpd WesternHub, ramping up or scheduled to start during thecoming 12 month period, finally breaking thecoveted two million bpd output wall during 2015seems within reach. This is particularly so givenAugust’s estimated production numbers.

Interestingly, Angola’s worries on the marketingside seem like they have started abating. Having,like Nigeria, been hit hard by the US shale oil boom,its market position is now being cushioned by itsbarrels being heavier than Nigeria’s or EquatorialGuinea’s. Exports to the US have fallen dramaticallyover the past few years, from a 2006 peak of around534,000 bpd, to only around 116,000 bpd in the firsthalf of 2014, according to Platts.

The 59 per cent decline seems to have stoppednow, contrary to the declined witnessed in Nigeria,where US-bound cargoes have fallen in the sameperiod with as much as 75 per cent. As late as2010, Nigerian exports to the US stood as high asaround one million bpd. Last year Nigerian exportsto the US averaged 281,000 bpd, according to theUS Energy Information Agency’s (EIA) data. Thisyear Nigerian crude imports into the US haveaveraged as little as 75,000 bpd.

During the same time span Angolan exports tothe US fell from 216,000 bpd to 116,000 bpd,

Angolan oil minister Jose Maria Botelho de Vasconcelos has told media that he expects his country to produce onaverage two million bpd during next year. Image: AFP

Full participation by anAngolan workforce at theupstream industry’s moreskilled levels remains an

elusive solution.

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Angola seems set to return to upstream growth following a period weighed down bymaintenance, project delays and operational snags and in the changing market environmentits heavier crudes suddenly seem like a particular blessing. Sam Ciszuk reports.

Upstream growth to return to Angola followingthree tepid quarters


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which apart from showing that Angola hasovertaken Nigeria in this regard seems to indicate aslowing pace of Angolan-US export decline.

Heavier crudes attractive blendstockHeavier Angolan crudes are an attractive blendstockfor US Light Tight Oil (LTO) from its shale plays,allowing more complex US refineries to run theblended cocktail when LTO on its own would have

been too light. In that way they too can benefitfrom the LTO’s attractive domestic pricing, since itcannot be exported.

The stabilisation in Angolan exports to the UScomes at a very opportune time, when global oilprices have come down under what seems to be asituation with a growing supply overhang, cloudedfurther by very sluggish demand data from Europe.The recent improvement in Libyan production

might, given the country’s seemingly inherentpolitical instabilities, make Saudi Arabiaparticularly reluctant to react aggressively enoughwith production cuts to defend a US$100/b crudeprice. After all, much of these increments,especially in Libya, could vanish overnight. Thatsets the stage for some increased competition overAsian market shares, a game in which relativelydistant Angola is not the most advantaged player.Not having to place cargoes being backed out ofthe US in Asia during such a period would nodoubt be a relief. This is particularly so asproduction, in any case, is poised to show organicgrowth in the year ahead. �


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The growing part of Angola’s upstream sector is located almost completely offshore and in increasing deepwater.FPSO Greater Plutonio in Block 18.

Heavier Angolan crudes arean attractive blendstock forUS Light Tight Oil (LTO) from

its shale plays.


FES INTERNATIONAL, A global providerof fluid transfer systems, hascompleted a US$4mn project to designand manufacture 19 diverless bendstiffener connectors (DBSCs) forNOV/Subsea 7. They are to be installedon the CLOV FPSO unit in Block 17.The project formed part of thepreparations for drilling whichcommenced in 2012. As part of theproject, latching mechanisms on theDBSCs were tailored and manufacturedto fit CLOV project specifications. Thesolution provided an automaticintervention which offers safer and more reliable connections.Managing director of FES International, Rob Anderson said: “We’ve along-standing relationship with NOV and this is a great example of usdelivering yet another smooth and successful project.“Usually DBSCs are designed with what’s called ‘female’ latching,however in this instance, we had to amend the design andmanufacture the industry’s first ‘male’ latch DBSC. We know onesolution doesn’t fit all and this underlines our commitment todesigning flexible solutions to suit the needs of different projects.”

BUREAU VERITAS HAS been awarded a contract by Saipem to provideclassification and certification services for the two Kaombo FPSOs for serviceoff Angola. The US$4bn project for the FPSOs was awarded to Saipem by Totalfor the engineering, procurement, installation and commissioning of twoconverted turret-moored FPSO units for the Kaombo Field development project,located in Block 32, offshore Angola. Bureau Veritas will oversee theconversion of the vessels and class the floaters in service, while certifying thetopsides and turret assemblies.Marie-Francoise Renard, offshore sales and marketing director, Bureau Veritas,said, “Saipem entrusted Bureau Veritas with this important contract because wecould meet their three key needs. They sought a third party company withsufficient FPSO experience to deal with a challenging first conversion project forTotal; the third party had to have sufficient resources in South East Asia for thefollow-up of the conversion of two large FPSOs more or less in parallel andcrucially, they needed to work with a company that has the capacity to work inAngola for local content issues during the EPC and in service phases for at least15 years. Bureau Veritas is able to match those needs with major teams alreadyin Asian yards and a strong track record in Angola, especially with local content.”Two VLCCs will be converted into FPSOs in Singapore. Each will have an oiltreating capacity of 115,000 bpd, a water injection capacity of 200,000 bpd, a100mn scfd gas compression capacity and a storage capacity of 1.7mn bbls ofoil. Part of the activities related to engineering, procurement, topsides modulesfabrication and integration as well as commissioning onshore and offshoreworks will be carried out in Angola.

Bureau Veritas wins FPSO work from SaipemFES International completes DBSC project

GETECH, GEOSCIENCE DATA provider to oil, gas and miningexploration sectors, has been awarded a contract worth US$5mn bySonangol in Angola.Touted to be the UK-based company’s single largest contract to date,the aim of the project is to generate structural and relatedinterpretations for the geological basins of Angola, which includesgravity and magnetic data interpretation, structural mapping, platemodelling, depositional modelling, palaeogeographic reconstructionand palaeodrainage analysis.The project will also require the integration of large datasetsincluding seismic and well data in order to generate a well-founded

and comprehensive interpretation and framework for futureexploration across the region, Getech added.The work is due to start immediately and the company anticipates thatmost of the income will be recognised in the current financial year.Raymond Wolfson, chief executive of Getech, said, “This contractrepresents our largest proprietary project to date. Such contractsare only feasible because we have built a large team ofgeoscientists, many of whom are specialists in the particulardisciplines required and who can integrate their disciplines into ourglobe exploration platform. This new contract is an illustration ofour future ambitions.”

Getech secures contract worth US$5mn in Angola



THE SUCCESSFUL START-UP of Total’s vastCLOV Project, a major development locatedin Angola’s ‘golden’ Block 17, 140 kmoffshore Luanda, represents a landmark

achievement for the deep offshore industry. One ofthe most innovative and complex deep waterdevelopments seen in West Africa to date, CLOVepitomises the industry’s move towards deeper,larger and more unconventional subseainfrastructure, supported by increasing levels oflocal engineering and fabrication.

From the outset, Subsea 7 chose to tacklethese issues head on, building on existingproprietary Hybrid Riser Tower technology andmore than 40-year experience as an establishedpresence in Angola.

The scale of the challengeLocated in the northern part of Angola’s Block 17,approximately 40 km north/north-west of Total’sexisting Girassol Development, CLOVencompasses four reservoirs Cravo (C), Lirio (L),Orquidea (O) and Violeta (V) in water depthsranging from 1,050 to 1,410m.

One of the project’s unique challenges lay inthe nature of the oil being produced: two distinctoils produced from the oligocene reservoirs and themore viscous miocene reservoirs. The resulting twosubsea production loops – the Cravo-Lirio loop tothe west and Orquidea-Violeta loop to the east –were both tied into the CLOV FPSO, together withwater injection lines, via two Hybrid Riser Towers.

A four-year engineering project led to the

design, procurement, fabrication and installation of130 km of pipelines including, 40 km of pipe-in-pipe production lines, 60 km of water injectionlines and 32 km of gas export lines.

In addition to the two hybrid riser towers,Subsea 7 also engineered, fabricated and installed asingle hybrid riser (SHR) at the end of the gasexport line. Featuring a 150 tonne suction pileconnected to a 1,200m-long 10-inch riser that risestowards a 150 tonnes buoyancy tank, theinstallation of the SHR required the development ofan ingenuous heave compensation system to safelylock and hold the upper riser assembly in placewhile connection to the buoyancy tank was made.

Further conventional work also encompassedthe design, fabrication and installation of 80 km ofsubsea umbilicals, 37 spools and 15 jumpers,manifolds, flowline end terminations (FLETs), inlinetees (ILTs) and injection valves.

Innovative engineering solutions The hybrid riser towers (HRTs) themselves, weighingin at close to 2,700 tonnes each and eachstretching more than 1,100m in length werefabricated in Sonamet’s Lobito fabrication yard – ajoint venture between Sonangol, Subsea 7 and a

number of smaller stakeholders. Significant re-engineering of Subsea 7’s HRT technology,including the use of polyurethane guiding frames inthe tower itself, helped to simplify the fabricationprocess and reduce the weight of the structures bymore than 400 tonnes of steel and the sameweight in ballast foam.

New investment at the Sonamet yard helped toexpand capacity, add additional workshops anddevelop local skills – all tailored towards thecompletion of these vast structures, which werethen stored in Lobito Bay prior to installation.

To help protect the structures from marinegrowth during wet storage, a new recyclable anti-fouling wrap was developed, eliminating the needfor expensive chemical treatments in anenvironmentally sensitive area.

Deepwater flowlinesThe project’s flowlines were also fabricated locallyin Angola. Encompassing 53 structures, including25 different types of subsea infrastructure andweighing in excess of 1,800 tonnes, CLOV’sflowline package represented a sizeable challenge.

Early procurement and fabrication wasrequired at the outset. The first batch of steel forthe pipe-in-pipe flowline fabrication was orderedjust a few months after design work began andprior to having any visibility on the final design ofsubsea structures.

It was here that the lift capabilities of theSeven Borealis came into their own wheninstalling the heavy pipe-in-pipe production

CLOV Seven Borealis at work offshore Angola.

One of the project’s uniquechallenges lay in the natureof the oil being produced.

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On 12 June 2014, there was cause for celebration in West Africa with first oil achievedon Total’s CLOV Project. For Subsea 7, it signalled the safe, on time delivery of the group’slargest ever project award.

The story beneathCLOV first oil



flowlines. Following modifications of the vessel’sJ-lay tower, including the extension of the towerby 1.5m to accommodate the length of CLOV’spipe-in-pipe section, the Seven Borealis wastasked with installing 11 separate productionflowline totaling 38.9 km in length in waterdepths of up 1,400m. With a maximum toptension of close to 1,000 tonnes, the SevenBorealis was ideally suited to this type of work.

However, despite requiring a top tension inexcess of 500 tonnes, the installation still requiredan innovative solution to safely manage theimmense weight of the flowline in such deep water.By using an elegantly engineered solution thatutilised the vessel’s S-lay abandonment andrecovery winch, the J-lay tower lowered theflowline catenary to a depth of 200m whereupontension was taken up by the A&R winch for finaltouchdown on the seabed. The result was thesuccessful installation of the heaviest pipe-in-pipeflowlines ever installed by a Subsea 7.

Safety firstOne of the most remarkable achievements ofSubsea 7’s project delivery was an exemplary safetyrecord across both onshore and offshore campaigns.Close partnership working with Total, including thecreation of a safety leadership team, ensured sitesafety visits were enshrined as part of any site visit,with observations helping to support a culture ofcontinuous improvement and vigilance.

Together, these achievements underlined thecommitment and dedication of everyone involvedboth onshore and offshore, as well as betweenclient and contractor.

Offshore operationsWith fabrication well underway, offshore activitycommenced in late 2012. CLOV’s requirement for1,280 days of vessel support, commencing in mid-November 2012 and stretching until mid-July 2014,

resulted in 600 days of offshore operations fromSubsea 7’s fleet. Eight construction vessels wereused to deliver the project, six of which were drawnfrom the Group’s own fleet supplemented by twoadditional chartered tugs.

The nature of the SURF workscope on CLOVmeant the project proved the ideal stage for Subsea7’s newest heavy lift/pipelay vessel, SevenBorealis, to make her full operational debut.

Local development At the heart of CLOV’s success has been thedevelopment of local skills and fabrication facilities.Employing 2,000 local people over a two-yearperiod, no project in Angola’s history demonstratesthe industry’s commitment to developing localskills and capability more than CLOV.

In total, more than 10mn project manhourswere delivered by Angolan workers on CLOV, fourmillion manhours of which were directly involved inthe safe delivery of Subsea 7’s contract throughSonamet’s Lobito fabrication yard.

During the two years of onshore fabrication, theLobito Yard manufactured more than 40,000tonnes of pipeline products as well as 10,000tonnes of subsea structures, a feat which requiredthe total focus of everyone involved. CLOV alsomarked the first time pipe-in-pipe flowlines hadbeen manufactured in Lobito. This newdevelopment required the yard to develop newwelding procedures capable of meeting the client’sexacting standards. A new automated ultrasonicpipeline matching system was used to categoriseand optimise the welding order and rotation ofeach pipe section offshore. This new innovation notonly accelerated the offshore welding process, butalso delivered significant improvements in finalweld quality.

The direct transpooling of umbilicals to thequayside at Lobito was also the first time this delicateoperation had been completed in Africa, requiring thecreation of the world’s longest transpooling path.

In addition, further support was provided fromneighbouring Gabon, where Subsea 7’s logisticsbase at T’Nchengué was instrumental in preparingcargo barge spreads and supporting vesselmobilisations, as well as fabricating installation aidsin advance of offshore operations commencing.

A precursor for the futureMore than anything, CLOV epitomises the pace ofchange in deep offshore production asdevelopments move into ever deeper waters andincrease in both size and complexity.

The ability of the industry to not only safelydeliver such projects, but also to do so on time,using increasing levels of local content to engineer,design and fabricate new innovative solutions, isone of CLOV’s greatest legacies. �


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HRT bundle in Lobito bay.

CLOV epitomises the pace ofchange in deep offshore

production as developmentsmove into ever deeper

waters and increase in bothsize and complexity.


At the heart of CLOV’s success has been the development of local skills and fabrication facilities.



MMOST READERS FIND local training facilities adequate to meettheir certification needs. If not under the wing of an NOC orindependent operator then specialist institutions likeGennesaret Resources and SGS Nigeria can often help. But

sometimes it’s necessary to seek a new qualification overseas. Number-one choice throughout Africa is often the USA because of access

and international acceptability. There a key resource is the American PetroleumInstitute in Washington, DC (www.api.org). Specifically orientated to themanpower needs of the US industry, of course, the API has a wide involvementin all aspects of training for careers in the energy industries.

Other major training institutions headquartered in what is still the world’sall-forms energy centre include the Petroleum Institute for ContinuingEducation, the Petroleum Safety & Technology Center, ATEC Training &Certification Services and the Well Control School. Links to all these and morecan be found on the Institute’s special skills-development website listed below.

Another major source of internationally-recognised energy training andcertification is Germany’s TUV technical university, located in Munich. “How canwe make more efficient use of the energy we generate and position ourselvesfor the challenges of the future?” is the question it invitingly poses on its mainEnglish-language website (www.tuev-sued.de/home_en).

Oil Review readers in the South can search for the answer to this on thespecial South African site maintained by the university at www.tuv-sud.co.zafrom its headquarters in the ExecuJet Business Centre at Cape Town’sinternational airport. From elsewhere enquiries are usually handled by theMiddle East and Africa office in Dubai (www.tuvsudme.com). Take care with thekeying in as the German ü comes and goes on TUV’s various URLs!

And a third overseas resource worth investigating thoroughly is the OffshorePetroleum Industry Training Organisation. Just two months ago OPITOInternational, the UK oil and gas industry’s global training standards body,agreed to provide more than US$1.27mn over five years to the internationaldevelopment division of the Open University, an all-forms distance-learninginstitution that is well known in Africa. This builds on an earlier successful butmore limited funding scheme.

The OU’s Danni Nti says: “We work where our expertise can have the mostimpact and where our programmes help build sustainable, social and economicdevelopment … entirely reliant on the generosity and foresight of funders anddonors like OPITO to enable us to take distance education to countries whichface enormous challenges.

“With OPITO’s support we can uncover new solutions, support local partnersand deliver effective programmes which really meet local needs.”

And adds group chief executive David Doig: “Increasingly we are beingasked by governments to develop plans to provide their people with the skillsand competence necessary in oil and gas.”

Funded by the industry itself OPITO leads the drive for common globaltraining standards to improve safety in all oil and gas operations.

The Organisation’s international division works with governments, regulatorsand the industry in more than 40 countries to deliver training standards whichimprove safety and help develop necessary skills and competencies. �

OPITO can be contacted via its main website at www.opito.com

Maersk Training launched a new offshore emergency courses the OPITO HelideckEmergency Response Team Member Training earlier this year.

Funded by the industry itself OPITO leads thedrive for common global training standards to

improve safety in all oil and gas operations.

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Online is the way to go when seeking qualifications for a better technical position in oiland gas. We look at some of the services provided by overseas institutions.

Meetingtraining needs


IN JUNE THE American Petroleum Institute, the US national tradeassociation (see main text), launched a new website –www.oilgasworkforce.com – that provides information to anyoneinterested in careers, training or certification within this key industry.Said API vice president John Modine: “The website is another toolbuilding on API’s world leadership in standards, training andcertification to strengthen the next generation of oil and natural gasdevelopment and the industry workforce.“Our goal is to create a resource to help meet our nation’s ever-growingneed for a workforce that can help us realise our energy potential forthe future.”A recent report from the consultancy IHS predicts an additional 1.3mn

new career opportunities in the USA’s domestic industries by 2030; astudy from the US’s Energy Information Administration estimated thatjob growth so far has been as much as 40 times higher in the energyindustries as in the US economy as a whole. This is almost certainly aresult of the holding on to its position as the largest oil and gas(combined) player anywhere in the world, “On track to become thelargest producer of crude within a few years,” according to Mr Modine.Pay levels are “significantly higher than the national average.”The new resource builds on existing recruitment initiatives by theInstitute and by member companies to tap new categories of suitablehuman resources, including labour unions and general rather thanspecialised tertiary training colleges.

New API campaign to recruit next-generation workforce

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Oil Review Africa Issue Five 2014www.oilreviewafrica.com 43

MORE AND MORE companies in Africa are demanding crane systemsproduced in accordance with European standards. In order to satisfylocal customers' demands, in collaboration with Künzelsauspecialists, Stahl’s partner Fawel Engineering Services Ltd in Nigeriahas developed a concept to enable cranes produced in Europe to betransported to Africa at reasonable cost. The first order on the "Cranein a box" principle comprised two double girder overhead travellingcranes with spans of 20 m and 22 m and lifting capacities of 10 t and16 t. They are in use in the production plant of Eleganza IndustriesLtd. in Lagos, where plastic injection moulded components such asplastic chairs, dustbins or hard-top cases are manufactured.

Each of the four crane beams consists of three segments whichare connected by high-tensile bolt joints. On the basis of this designby Fawel Engineering, crane builders can ship an entire crane in a 40foot container, saving space with just a few steps. The containers forEleganza Industries were transported overland to Antwerp inBelgium, transported by ship to Port Apapa in Lagos and then by lorryto the erection site. When the containers arrived there, FawelEngineering staff were able to erect the cranes within just a few days- delighting the astounded customer.

The cranes were produced on behalf of and following thedrawings of Fawel Engineering. The crane technology - CraneKitswith SHR 6 (16 t) and SH 5 (10 t) wire rope hoists - was supplied byStahl CraneSystems. Apart from this, the German crane technologyexperts helped their Nigerian sales partner to co-ordinatemanufacture in Europe.

Fawel Engineering is at present working on producing simplesingle-girder overhead travelling cranes directly in Africa in thenear future. However producing ultra-modern crane systems inNigeria is a distant prospect. The "crane in a box" principle isbasically suitable for all double girder overhead travelling craneswith lifting capacities up to around 50 t. For Fawel Engineering thesuccessful completion of the project for Eleganza Industries is agreat success which the Nigerian is looking forward to building on:two more of his "crane in a box" projects will be completed shortly.Other partners in Africa have already expressed interest in this idea.

“Unpack, plug’n play-”:Fawel Engineering's staffneeded just a few days to erect the cranes.

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European crane systems for Nigeria - in a box


A shrinking pool of talent


“ I“ IF WE ARE going to see a real and positive change in the skillsgap, the industry as a whole must work together on thedevelopment of education, training and local contentinitiatives,” said OilCareers former managing director Mark

Guest. While three quarters of respondents confirmed that their organisationoffered internal training, 29 per cent of these admitted there was not a fullselection of training available.

Also highlighted in the survey is the on-going challenge surroundingstaff retention as an anticipated increase in project activity in the MiddleEast, North America, East Africa and Australia begin to filter through. AirEnergi CEO, Duncan Gregson said, “The oil and gas industry is powered bya highly mobile and skilled workforce. Experienced professionals arehighly sought after, highly remunerated and offered excellent benefits.The critical issue for the industry in 2014 will be retaining staff, which isone of the key factors in budget overspend and schedule delays.”

Other findings of the survey include 58 per cent of respondentsconfirming they expect salaries to rise in 2014 and 50 per cent predictingthat hiring rates will increase. 69 per cent of those questioned believemore should be done to promote the opportunities within the industry toyounger generations. According to the survey, engineers are the scarcestcommodity followed by project managers, drilling, contract administratorsand geologists.

Meanwhile, a growing number of experienced professionals are movingfrom IOCs and national oil companies (NOCs) to smaller, more agileplayers that have lower overheads and can therefore offer higher salaries.They are also relocating to other regions where better rates and salariesare available.

For example, while Australasia is a key player in the global LNGmarket, there is the added pressure on companies to focus their retentionstrategies, with Australia being seen as a key talent pool of highly-skilledLNG professionals for future developments in North America and EastAfrica.

Training and talentRetention is also becoming more challenging at organisations servingIOCs and NOCs. Mid-tier service companies and EPCs have traditionallyfound it difficult to attract professionals given that IOCs and NOCs areable to offer more attractive opportunities for training and careerdevelopment. Although they too have training programmes in place,service companies and EPCs continue to see a natural migration of talentto IOCs and NOCs over time.

According to OPITO, the oil and gas industry skills body, education iskey to unpicking many of the problems faced. OPITO’s David Doig warnsthat the industry has already gone beyond the skills shortage to a skillscrisis and that more companies need to wake up to the fact thatcooperation on training is badly needed.

The African situationThe migration away from West Africa to more lucrative projects iscompounding the skills shortage and although many companies areimplementing strategies to attract locals back into the region, this can beexpensive as they have to offer them higher salaries and contract rates todo so. Nevertheless, the substantial level of activity around training andsponsored qualifications in the region should mean that the skills gapwon’t be quite as wide as it has been in the past.

Moreover, there are candidates coming through the university systemto fill the gaps left by professionals that are emigrating. In developingcountries however, the skills shortage is going to be an issue. Thoseapproaching graduation currently do not have a great deal of knowledgeand experience relevant to the oil and gas industry.

Project impactsDespite the progress being made in developed markets to increase thelevel of qualified candidates available, production deadlines are still beingimpacted by a lack of available local talent. High labour costs are havingan impact too. Whereas previously, companies would have anticipated aspecific cost associated with having local candidates, the fact that theyhave to offer higher salaries and rates to attract expats has had an impactin terms of cost, as well as schedule for current development projects.Where there is no local expertise available, it is a case of importing moreexpensive expats to fill the skills gap while companies bring the localpopulation up to speed over a period of years – especially since therehasn’t been any relaxation of local content laws. There are, however, someinitiatives to reduce withholding tax in emerging regions to incentiviseforeign companies to invest.

In Mozambique, for example, the government has reduced withholdingtax to 10 per cent for certain projects.

Although there are going to be significant infrastructure issues andlocal content difficulties, the outlook for future development projects isextremely positive. East Africa in particular is seen as an untappedresource, and the opportunity in terms of assets is huge. There are majorprojects planned – particularly LNG projects in Mozambique and Tanzania– and there are major international players involved, so any issues withinfrastructure and local content are unlikely to impact on the sanctioningof planned projects.

Historically, Africa has been a volatile region and there are on-goingconflicts in Sudan and South Sudan currently. This is having an impact onboth the price of oil and the opportunity to develop oil and gas projects.Indeed, oil prices will remain high as those countries that are oil rich butvolatile politically will not be attractive to outside investors until there isan improved level of stability. Conversely, Tanzania is proving particularlyattractive to foreign investors, due to the ease of doing business andability to repatriate funds. �

The global LNG market is still exceptionally busy, and within the region itself, thenational operators have very similar sourcing strategies, which impact on retention.

Although there are going to be significantinfrastructure issues and local content

difficulties, the outlook for futuredevelopment projects is extremely positive.

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The need for the oil and gas industry to collaborate more to tackle the skills shortage isa key theme of the latest Global Oil & Gas Workforce Survey by Air Energi, the leadingworkforce solutions provider, and OilCareers.com. The survey documents the views ofmore than 500 professionals from across the world.



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BAHARI AND DISCOVER have completed the acquisition of anadditional 2,330 km of 2D seismic data over their license areaoffshore the Union of the Comoros. The license area, comprisingblocks 35 - 36 - 37 and totalling circa 18,000 sq km, is located inthe western part of the Comoros and is outboard of MozambiqueAreas 1 and 4, where giant natural gas accumulations (estimated at175 TCF of recoverable resources) were discovered by AnadarkoPetroleum Corporation, Eni SpA and partners, Discover’smanagement team, through its previous company Cove Energy plc,was involved in these discoveries in Mozambique Area 1.This new 2D seismic survey, shot by ION Geoventures, follows theratification of Bahari and Discover’s Production Sharing Contract bythe National Assembly of the Comoros in March 2014 and theearlier acquisition of 1,570 km of ION’s East AfricaSPAN 2D seismicsurvey. The total 2D seismic data acquired by Bahari and Discover isnow in excess of 3,900 km. Interpretation of the data suggeststhat the reservoir play fairway, which hosts the large gas depositsin Mozambique Areas 1 and 4, extends into the license area inthe Comoros.Peter Wakeling, CEO of Bahari Resources, commented:“The completion of this seismic survey is an important step in theexploration of the offshore Rovuma delta. The data acquired by IONis of excellent quality and the initial interpretation is veryencouraging. We are on track to exceed our total work commitmentwithin the first year of our initial four-year exploration period and tohave set the stage for a 3D seismic and drilling campaign. We lookforward to continuing to work with the government of the Comorosto demonstrate the hydrocarbon potential within our license area.”

CGG HAS SIGNED anexclusive multi-clientdata agreement with theMinistère du Petrole etdes Hydrocarbures of theRepublic of Gabon.

As a result of thisagreement, CGG islaunching a new multi-client survey programmeto acquire 35,000 sq kmof BroadSeis 3D data overthe latest available and awarded deepwater blocks offshore Gabon and 9,900 kmof 2D data over the country’s ultra-deep water offshore area. The programme,which has already received support from the industry, will be implemented inassociation with the Direction Générale des Hydrocarbures (DGH).

The first phase of the programme covering almost 24,000 sq km will startin the fourth quarter of 2014 and is scheduled to last seven months. Twohigh-end vessels will be assigned to the project to ensure timely delivery ofthe data. The depth imaging of the seismic data will be performed in CGG’sCrawley centre in the UK.

Jean-Georges Malcor, CEO, CGG, said: “This exclusive agreement follows onfrom the support CGG gave the DGH back in 2009 to promote the potential ofthe deep water offshore Gabon. Now, with the low-frequency enhancementmade possible by BroadSeis, our true broadband solution, this new surveyprogramme will enable better imaging of Gabon’s highly prospective pre-saltplays; it will therefore allow oil companies to better de-risk this exciting newexploration arena and accelerate development of the country’s resources."

DOLPHIN GEOPHYSICAL HAS formally been awarded the acquisition andprocessing of a 7,000 sq km SHarp Broadband 3D survey offshore Senegal byKosmos Energy.The Dolphin high-capacity 3D vessel, Polar Duchess has commencedoperations and it will take approximately four months to complete. Dolphin'sOpenCPS software will be utilised both onboard the vessel to produce aPostSTM Fast-Track dataset and then for the final PSTM volume at Dolphin'sUK Processing Centre.Atle Jacobsen, Dolphin's CEO commented "We are very pleased to have beenawarded this large SHarp 3D acquisition and processing contract from KosmosEnergy, one of the leading acreage holders in North West Africa. This is our firstseismic project for Kosmos and Dolphin's fifth survey in Senegal.”�This contract is included in the Q2 2014 backlog, previously announced by Dolphin.

Dolphin begins seismic survey in Senegal

NORWAY'S TGS-NOPEC Geophysical is to expand its 3D seismic datalibrary off Sierra Leone by about 16 per cent through a fresh multi-client, industry funding-supported survey.TGS senior vice president for the eastern hemisphere Stein OveIsaksen said that the shoot would extend the contractor's coverage ofan "important and prospective area"."TGS has been active in acquiring data over the West Africa TransformMargin for the past decade and we are pleased with the level ofcustomer support to continue our investment in this region," Isaksensaid. The Asker, Norway-headquartered geosciences player haschartered the 12-streamer seismic vessel Polarcus Alima for thesurvey, with the vessel listed on its charter books for late Augustthrough to mid-September.The Polarcus Alima will gather an additional 1000 sq km in the SierraLeone block 4A Extension survey to add to the seismic contractor'sexisting 6268-sq km data bank for the West African state.TGS is to process the survey data which will be available to clients inthe first quarter of next year.

Geo

log

y

CGG bags Gabon survey work

TGS-Nopec to boost efforts in Sierra LeoneAcquisition completed for 2D seismicdata offshore Comoros


The Dolphin high-capacity 3D vessel,Polar Duchess has begun operations.

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CIRCLE OIL HAS confirmedanother successfuldiscovery in the Seboupermit, onshore Morocco.Circle said gas shows atwell CGD-12 - which wereconfirmed by wire logging- were encountered atdifferent levels within theGuebbas and Hoot sands.The well is located withinthe western central area ofthe Sebou permit, about four kilometres to thesouth of the main gas gathering station. Thewell was spud on 25 August and drilled to a TDof 1,232 metres MD.The total net gas pay encountered in thewell from wireline log analysis is 9.7 metres.The seven inch liner was run and cementedand the first test over the secondary targetIntra Hoot sands flowed at a sustained rateof 2.21 MMscf/d on a 18/64" choke. Thesecond test over the main target Main Hoot

sands flowed at asustained rate of 4.62MMscfd on a 24/64-inchchoke. The well will becompleted for futureproduction and the UpperHoot and Guebbas sandswill be available forproduction at a later date.The rig will now be movedto drill KSR-12, the thirdwell of the Sebou

campaign. Further updates will be providedin due course.Chief executive Prof Chris Green said: "Weare very pleased to have another successfuldiscovery in our Sebou permit and haveproven additional reserves for potential gasproduction. This is the second well of a sixwell programme to be drilled with ourpartner ONHYM in the Sebou permit and iscoupled with another six well programme inthe Lalla Mimouna permit."

OPHIR ENERGY HAS made a new gas discovery inthe Silenus East-1 well in Block R, Equatorial Guinea.

The well was deepened to test a secondaryhigh risk oil target and encountered high quality,but water-wet, reservoirs with weak oil shows.

The Silenus East-1 well was drilled by theVantage Titanium Explorer drillship within the thrustbelt area of Block R. A 67-metre gross gas columnwas encountered in the primary target with highquality reservoir in line with pre-drill expectations.

"The Silenus East well result has confirmedsufficient incremental volumes for Ophir to beable to expand the Block R FLNG project from a2.5mmTPA to a 3.0mmTPA project,” said NickCooper, Ophir CEO. “This is important in that itprovides economies of scale that increase thevalue of this already economic project. First gasfrom the FLNG project is expected to be in early2019 and this timetable is expected to beconfirmed when we achieve the milestones ofsigning the Block R gas terms and confirming themidstream partners during Q4 2014. At currentequity levels the EG FLNG project represents apotential net 2.4mmTPA to Ophir from early 2019.In comparison Tanzania represents a net 2.0-3.0mmTPA from late 2021."

The Silenus East-1 well has discovered anestimated mean recoverable 405 bcf of gas fromthe upper and deeper reservoirs and hassignificantly de-risked a family of similarsurrounding prospects such that the total meanrecoverable gas in the broader Silenus areaincluding this discovery is now estimated ataround 1.2 tcf.

THE KAMBA-1 WELL in Block 4 has resulted in gasdiscoveries of 1.03 tcf in the Kamba and Fulusi prospects,according to joint-venture partner Ophir Energy."The Kamba discovery has now confirmed sufficientaggregate resource in Block 4 to supply one 5MMTPAtrain of LNG,” said Nick Cooper, Ophir CEO.“In combination with the discovered resource in Block 1,the Block 1 and 4 Joint Venture is now close to the threshold resource volumes for three 5MMTPA LNGtrains. BG operates the Block 4 licence and Ophir holds a 20 per cent interest.The well was drilled by the Deepsea Metro I drillship in a water depth of 1,379 metres to a total depth of3,969 metres with the twin objectives of intersecting the Paleocene-aged Fulusi prospect (a northernextension of the earlier Pweza discovery) and the primary target of the Cretaceous-aged Kamba prospect.The Kamba-1 well encountered an 18-metre gross gas column in the Fulusi prospect and, aftersidetracking to test the Kamba prospect, the Kamba-1ST well established another gas column of 140metres with high net to gross, good quality, reservoir sands.The well has encountered better quality reservoir sands than prognosed pre-drill and further analysis isexpected to confirm discovered volumes somewhat in excess of the pre-drill estimated mean (2C)recoverable resources of 1.03tcf, comprised of 650bcf in Kamba and 380bcf in Fulusi.The Kamba-1 discovery is the joint venture's 16th consecutive discovery well in Blocks 1, 3 and 4.

BG hits gas in Tanzania

STATOIL AND CO-VENTURER ExxonMobilhave reported that the Giligiliani-1exploration well offshore Tanzania hasresulted in a new natural gas discovery.The discovery of an additional 1.2 tcf ofnatural gas in place in the Giligiliani-1 wellbrings the total of in-place volumes up to21 tcf in block 2.The Giligiliani-1 discovery is located alongthe western side of block 2 at a 2,500-mwater depth. The new gas discovery wasmade in Upper Cretaceous sandstones.

“This discovery has proven the gas playextends into the western part of block 2,which opens additional prospects. Oursuccess rate in Tanzania has been high andopening up a new area will be key tocontinuing our successful multi-wellprogramme,” said Nick Maden, senior vicepresident for Statoil's exploration activitiesin the Western Hemisphere.The rig Discoverer Americas will now drillthe Kungamanga prospect located in thecentral part of block 2.

The Giligiliani-1 discovery is the venture’sseventh discovery in block 2. It is precededby discoveries at Zafarani-1, Lavani-1,Tangawizi-1, Mronge-1 and Piri-1, and adiscovery in Lavani-2.Statoil operates the license on block 2 onbehalf of Tanzania Petroleum DevelopmentCorp. (TPDC) and has a 65 per cent workinginterest. ExxonMobil Exploration andProduction Tanzania Ltd. holds theremaining 35 per cent.

Gas

Ophir boosts EG FLNGpotential

Statoil makes seventh discovery offshore Tanzania

Circle confirms Morocco gas find


Deepsea MetroI drillship.

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1 3 09:56


KOSMOS ENERGY IS set to sign a US$400mn "farm-in" agreementwith Senegal's state-owned hydrocarbon firm Petrosen and TimisCorp to take a 60 per cent stake in the Cayar and St Louis offshoreblocks that they operate, a draft Petrosen document seen byReuters showed.

According to the document, Kosmos has committed to drill twoexploration wells up to a total value of US$240mn. It will then drilla third well, or alternatively a first appraisal well, to a value ofanother US$120mn.

Under the terms of the agreement, Kosmos will have a 60 percent stake in the blocks, Timis Corp 30 per cent, and Petrosen 10per cent, the draft document said.

"We believe that the blocks show a very substantial potentialand all parties look forward to working together to advance thedevelopment of the areas to their maximum potential," Petrosendirector general Mamadou Faye said.

Kosmos has also committed as the new operator to undertake a3D seismic survey of approximately 7,000 sq km over the twoblocks. The seismic survey is expected to start immediately and totake approximately four months.

The firm is already present in the region as a shareholder in Ghana'sJubilee oil field and TEN project. Timis is controlled by Romanianbillionaire Frank Timis, who has invested in various sectors in the WestAfrica region, including iron ore mining and manganese exploration.

O I L EXPLORERCAIRN Energyand its jointventure partnershave discoveredoil at a welloffshore Senegaland furtherexploration work nearby is already planned, according to the company.The companies encountered 29 metres of net oil bearing reservoir

at the FAN-1 well, located around 100 km off the coastline and 1,427metres deep."We have encountered a very substantial oil bearing interval which

may have significant potential as a standalone discovery," said CairnEnergy chief executive Simon Thomson.Cairn Energy has a 40 per cent interest in three offshore blocks in

Senegal, while ConocoPhillips has 35 per cent, FAR Ltd 15 per centand Senegal's national oil company Petrosen owns 10 per cent.

CHAD EXPECTS TO double oil production by the end of 2015 as new fieldscome on stream and has appointed firms to inventory potential mineraldeposits in an effort to diversify the economy, its finance minister said.The country has been rocked by humanitarian crises over the past

decade including conflicts in the east and south, drought in the arid Sahelregion and flooding. That has been compounded since 2012 by instabilityon its borders with Libya, Nigeria and Central African Republic, forcingChad to increase its security budget to handle thousands of new refugeesand counter a growing cross-border threat.The landlocked central African country has, nevertheless, seen strong

growth over the past decade as it has become an oil producer, although GDPgrowth slowed to 3.5 per cent in 2013 due primarily to lower income fromageing wells in its Doba oilfield.Speaking to Reuters, Kordje Bedoumra, said the country expected a

rebound in the growth rate this year to 11-13 per cent and double digitsagain in 2015 as oil production ramps up."We are more or less at around 100,000 bpd," he said in an interview at

an OECD forum on Africa. "Our expectation is that by the end of this year we can move to 130,000

bpd and by the end of next year probably double that production because wewill have new fields."Bedoumra said output would increase from the Mangara and Badila

fields, which are operated by mining company Glencore Xstrata, and a newfield managed by a China National Petroleum Corporation (CNPC) subsidiary.Earlier this year Chad suspended CNPC from further exploration activity,

citing violations of environmental standards while it was drilling for crude oilin the south of the country.

Chad to double oil output by 2016

LUKOIL-OVERSEAS HAS said it found oil and gas at its Cape Three PointsDeep Water block off the coast of Ghana, and according to the energyminister, it now has a 90-day test period to determine whether the find iscommercially viable.The company started drilling in May and found several layers with what it

described as "high showings" of hydrocarbons. It will disclose results oncetests are complete, according to a spokesperson for Lukoil-Overseas, theforeign unit of Russia's second-largest oil producer by output."Lukoil has come to report a discovery, and under the petroleum

agreement they have 90 days to do an appraisal to determine whether it iscommercial," energy minister Emmanuel Armah-Kofi Buah said.The block is located 50 to 100 km offshore in the Gulf of Guinea and its

nearest port is Takoradi.Ghana and its partners, including Tullow Oil Plc and Anadarko Petroleum

Corp, plan to spend US$20bn in the next decade to boost oil production to500,000 bpd. West Africa’s second-largest economy currently produces about100,000 bpd. If commercially viable, the Lukoil find would be Ghana’s fifthplanned offshore field.

E&

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Cairn discovers oil offshore Senegal Lukoil finds oil & gas at offshore Ghana Block

Kosmos to buy into Senegal offshore blocks


THE DEMOCRATIC REPUBLIC of Congo plans to issue a tender for oilblocks in its western coastal basin, according to its oil minister, as itseeks to boost investment in the sector.

Oil minister Crispin Atama Tabe said that investment opportunitieswould become available in the Nganzi, Mavuma, Nduna, Yema andMatamba-Makanzi blocks, referring to areas located near the mouth ofthe River Congo and the border region with Angola's oil-rich Cabindaenclave. "Once the terms are made available, these blocks will besubject to a tender," Tabe said, without giving further details on thetimeframe. Congo is keen to develop its underdeveloped oil sector, whichproduces just 26,000 bpd. Civil war and tensions in the border regionnear Uganda have held up development.

Congo preparing tender for several oil blocksENI HAS MADE a new oil discovery at the Ochigufu exploration prospect,located in deep water off Angola.Ochigufu is the 10th commercial oil discovery in the country's Block 15/06

and is estimated to contain 300mn barrels in place.Eni also reported that the Ochigufu 1 NFW well, which led to the discovery,

will be brought into production "in record time". The well, locatedapproximately 150 km off the coast of Angola, was drilled by the Ocean RigPoseidon (DW semisub) unit in a water depth of 1,335 metres and reached atotal depth of 4,470 metres.Ochigufu 1 NFW was directionally drilled in order to reach its targets in

optimal position. The data acquired in Ochigufu 1 well indicates a productioncapacity equal to more than 5,000 bopd, Eni said.

Eni finds 300mn bbls offshore Angola


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09:56



THE INSTITUTE OF National Petroleum (INP), on behalf of theGovernment of the Republic of Mozambique, has advised that acompetitive bidding round to explore for hydrocarbons in theoffshore Rovuma, offshore Zambezi and Angoche and onshorearound the Pande-Temane concession and Palmeira areas will beannounced shortly. A total of 15 blocks will be included in the fifth license round,

comprising some 76,800 sq km of acreage will be included in the round.It is scheduled to close 20 January, 2015.Further details of the fifth license round, including applicationguidelines, the model contract, the petroleum law, petroleumregulations, bidding parameters, technical data and data packages anddata room access, will be posted on the following websites:www.inp-mz.com and www.inp.gov.mz.

LIBERIA’S CURRENT INVITATION-only bidding round has ignited interestamong international oil companies, due to the country’s considerablehydrocarbon potential and favourable fiscal terms. However, the Ebola virusoutbreak and Liberia’s poor infrastructure will pose challenges to the round,according to an analyst with research and consulting firm GlobalData.Since being announced on 5 August this year, Liberia’s bid round,

which offers offshore Blocks LB-6, LB-7, LB-16 and LB-17, located in waterdepths ranging from 500 to 3,800 meters, has been extended to 14November 2014.According to Gustavo Bianchotti, GlobalData’s senior upstream analyst

covering Europe, the Middle East and Africa, no commercial discoveries havebeen made in Liberia to date, but oil traces have been found in 13 wellssince the early 1970s. An active exploration programme has resulted inthree confirmed oil discoveries from six wells, and releasing the data from

the remaining wells would attract more attention to Liberia’s bid round.Bianchotti said: “The country’s entire exploration activity is presently

offshore in the Liberia Basin, which consists of 30 blocks. While none of theblocks offered in the current bidding round have been drilled, seismicstudies suggest that there is hydrocarbon potential in the basin’s Middle toUpper Cretaceous fan systems.”In 2013, the first new terms were introduced in Liberia, which entitled

companies to a 50 per cent participation share and eligibility for dividendspayments if commercial discoveries culminated in production.The analyst explained: “Liberia is seeking to introduce a law that would

improve on the human and institutional capacity necessary for its petroleumsector development and provide a tax waiver for prospective investors. Asthere are 18 offshore blocks available for subsequent rounds, Liberia still hasthe potential to become a major West African oil and gas producer.”

Liberia’s hydrocarbon potential sparks interest

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Mozambique to seek bids for 15 blocks


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ALGERIAN STATE ENERGY firm Sonatrachhas made a new oil and gas find withRussia's Gazprom following a successfuldrilling in the desert Berkin basin, bringingto three the number of joint discoveriesthere, it said.

Algeria has recently awarded just fourout of 31 oil and gas fields on offer in itslatest energy bidding round as the NorthAfrican OPEC producer looks to bolsterstagnant oil and gas output. All four werewon by foreign consortiums.

The new discovery was made in the ElAssel area at block 236b after drillingreached a final depth of 4,120 metres, theAlgerian firm said in a statement.

Gazprom and Sonatrach had made twodiscoveries in the same perimeterfollowing the drilling of RSH-2 and ZERN-1exploration wells.

Sonatrach holds a 51 per cent stake inthe project while the remaining 49 per centis owned by Gazprom.

RWE DEA HAS been awarded operatorshipof two new offshore concessions in Egypt’sGulf of Suez where the company hasalready had a presence as operator ofvarious fields for the last 30 years. The newconcessions will increase the company’snumber of operated licenses in Egypt fromsix to eight.

RWE won the concessions – which aresubject to presidential approval - as part ofEgypt General Petroleum Corporation’s(EGPC) 2013 international bid round. It willhold 100 per cent of the East Ras FanarOffshore and 50 per cent of the Northwest ElAmal concession, with Edison InternationalSpA holding the remaining 50 per cent.

“We are very pleased with the result ofthe latest bid round, as both newconcessions provide a valuable addition toour balanced oil and gas license portfolioin Egypt," said Maximilian Fellner, generalmanager RWE Dea Egypt. The East RasFanar Offshore Block is located offshore inshallow water depth in the central Gulf ofSuez close to Dea’s Ras Fanar oil field.

The Northwest El Amal Block liesoffshore in the southern Gulf of Suezbetween the July and Amal oil fields, in thevicinity of the giant Morgan oil field andthe latest significant oil find in the Gulf ofSuez – the Saqqara field.

53

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Gazprom, Sonatrach findoil, gas in Algeria

RWE Dea wins two newconcessions in Egypt



54 Oil Review Africa Issue Five 2014 www.oilreviewafrica.com

Source: Infield Systems Ltd.

The Infield Systems Ltd. Rig Count tracks industry-wide offshore rigs engaged in drilling and related operations, which include drilling, logging, cementing, coring, welltesting, waiting on weather, running casing and blowout preventer (BOP) testing.

SEPTEMBER 2014 - OFFSHORESEPTEMBER 14 AUGUST 14 VARIANCE SEPTEMBER 13 AUGUST 13 VARIANCE

Country Offshore Offshore From Last Month Offshore Offshore From Last MonthANGOLA 23 22 1 18 19 -1NIGERIA 17 17 0 19 17 2GABON 7 7 0 4 4 0CONGO (BRAZZAVILLE) 3 3 0 6 5 1MOZAMBIQUE 2 2 0 4 3 1GHANA 2 1 1 3 3 0CAMEROON 2 3 -1 4 3 1EGYPT 15 15 0 19 17 2TUNISIA 2 2 0 2 2 0SOUTH AFRICA 3 3 0 1 1 0TANZANIA 2 2 0 2 2 0EQUATORIAL GUINEA 1 0 1 2 2 0NAMIBIA 1 1 0 1 1 0LIBERIA 2 2 0 0 0 0LIBYA 1 1 0 0 0 0TOGO 0 0 0 1 1 0SENEGAL 1 1 0 0 0 0BENIN 1 1 0 0 0 0KENYA 0 0 0 1 0 1MOROCCO 0 1 -1 0 0 0MAURITANIA 0 1 -1 0 0 0TOTAL 83 85 -2 85 82 7

AFRICA OIL HAS announced that an independent assessment of thecompany's contingent resources in the South Lokichar Basin located inBlocks 10BB and 13T in Kenya has been completed by Gaffney, Cline &Associates.Keith Hill, Africa Oil's president and chief executive officer,commented: "Gaffney Cline's independent assessment confirms asignificant increase in contingent resources for the South LokicharBasin in northern Kenya. Based on the drilling and testing programmeover the past year our best estimate is now that the company'sdiscoveries in the South Lokichar Basin contain gross contingentresources of 616mn barrels of oil (2C estimate), an increase of 67 percent on previous estimates, and may contain as much as 1,291mnbarrels of gross oil Contingent Resources (3C estimate), an increase of52 per cent. This level of resources exceeds the threshold fordevelopment and we are targeting development sanction at the end of2015/early 2016. We continue to aggressively explore and appraisethe basin with three rigs operating and are currently acquiring a large3D seismic survey in the west and north of the basin. The key factorsto address to increase these resources over the next year will berelated to recovery factors and reservoir connectivity and the earlyappraisal results at Ngamia and Amosing provide encouragement on

the lateral continuity of the Auwerwer sands. The upcoming extended well tests at Ngamia and Amosing and theongoing appraisal and core analysis programmes will provide additionaldata to support this understanding. We also have an exciting explorationportfolio on trend with the South Lokichar Basin and will have drilled sixnew basins by the end of 2015. We are confident that our earlysuccesses will be repeated in at least one additional new basin."

Large increase in Kenya’s resource estimates

An oil rig at Ngamia 1 in Turkana County.


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ANSALDO ENERGIA HAS been awarded an important contract worthabout US$216mn to supply an open cycle power plant in Algeria.Sociéte Algérienne de Production de l'Electricité (SPE Spa), aSonelgaz group company, assigned the contract to AnsaldoEnergia in an international tender for which the sector’s leadingplayers put in bids.Ansaldo Energia will supply the “Ain Djasser III” open cycle powerplant with two gas turbines of about 170MW each (in ISOconditions) plus the relevant generators. The plant will be situatedin the province of Batna in central Algeria about 350 km south ofthe capital Algiers.Ansaldo Energia has a total installed capacity of over 4,400MW inthe country, confirming its position as one of Algeria’s mostimportant OEMs (Original Equipment Manufacturers).

A CONSORTIUM LED by Maurel & Prom has signed a gas sales and purchaseagreement with Tanzania Petroleum Development Corporation (TPDC), for thelong-term sale of natural gas from the Mnazi Bay and Msimbati fields in southernTanzania to the government owned and operated Mtwara to Dar es Salaampipeline and Madimba central processing facility (Pipeline Project) currently underconstruction and scheduled for completion and commissioning in Q1 2015.

Pursuant to the Mnazi Bay GSA, the Mnazi Bay Partners (M&P, Wentworth andTPDC) are contracted to supply to the Pipeline Project up to a maximum 80mnscfd of natural gas during the first eight months with the option to increase overtime to a maximum 130mn cfd of natural gas for up to a 17-year supply period.The gas will be sold and purchased at the inlet to a 16 inch pipeline connectingthe Mnazi Bay gas production facility to the Madimba central processing facility.

The initial delivery is expected to begin during the period 22 January 2015and 22 April 2015 and be at a fixed price of US$3.00 per mmbtu (approximatelyUS$3.07 per mcf) escalating with United States CPI Industrial index. The MnaziBay GSA is subject to certain conditions, including the Tanzanian governmentproviding all necessary approvals and providing an executed version of paymentsecurity agreements.

With a long-term contract in place, the Mnazi Bay Partners will use the timebefore the commencement of first gas delivery to construct and commission thenecessary surface infrastructure, inclusive of separation facilities and flow lines, totie existing wells into the Pipeline Project. Gas will be produced from the existingfour wells in the Mnazi Bay and Msimbati fields and these wells are expected tobe capable of producing natural gas sufficient to meet the initial 80mn cfddelivery volumes under the Mnazi Bay GSA.

AFTER DECADES OF relying on supplemental private power generating plantsto make up hydropower shortages, Tanzania will replace them with naturalgas-fired turbines as the nation taps its big reserves of natural gas to generatecheap electricity. The East African nation is trying to diversify its energy sources - but potentiallyat the price of higher carbon emissions. The move to turn off furnace oil-powered generators is likely to save TANESCO, the state-run utility firm,US$1bn a year, the government said.Eliakim Maswi, permanent secretary in the Ministry for Energy and Minerals, saidthe move aimed to cut costs and allow Tanzania to use its own gas resources."We want to ensure that we have reliable and available power supply at thelowest cost so that the public can enjoy lower tariffs," he said.Although Tanzania's emissions of greenhouse gases are very low, experts saycurrent energy development plans - such as greater use of coal and natural gas- will probably lock the country onto a much higher emission pathway.Tanzania has for some years suffered from prolonged drought that has affectedits hydropower capabilities. Shortages have led to power rationing. To deal with the problem, the government hired private companies includingAggreko and the US-based Symbion Power to generate more than 300MW ofpower daily on a short-term basis - about a fifth of the country's electricity needs.Symbion has since 2012 expanded its power generation activities in the country toproduce about 225MW daily at its plants in Dar es Salaam, Arusha and Dodoma.That generating capacity will now be replaced by other facilities, includingTanzania's first natural gas-fired plant, the government said. The US$183mnplant being built at Kinyerezi in Dar es Salaam is expected to meet some 20per cent of national electricity demand.

Tanzania turns to natural gas

ANGOLA’S LIQUEFIED NATURAL gas plant faces major reconstruction tofix design flaws and corrosion of nearly-new equipment, threatening toextend a lengthy closure and pushing unofficial estimates of theproject's cost to at least US$12bn.Chevron, Angola LNG's biggest shareholder, acknowledged designproblems with the export project which began production last year butshut down this April after a series of fires, leaks and mechanical troubles.A consortium of investors, which apart from Chevron includesSonangol, BP, Total and Eni, contracted US engineering giant Bechtelto build the technically advanced plant on the Atlantic coast 300 kmnorth of Luanda.Chevron CEO John Watson declined to single out anyone for blame. "Idon't point fingers. This is our responsibility. It's a partnership consortium.The partnership consortium chose the contractor. We've run into somedesign issues. We're working to correct them," he told Reuters.LNG plants, which turn natural gas into liquid for shipment by sea todistant markets, use some of the most intricate and expensivemachinery in the energy industry.They often suffer glitches and require annual maintenance but evenso, Angola LNG's problems stand out. Officially, the Angola LNG plant will remain closed until mid next year.However, the project sources said this could slip into 2016, dependingon the scale of the rebuilding work.Corroded pipelines are already being repaired or replaced and valveswill also need renewing, while compressors that are prone touncontrolled surges of gas pressure will have to be overhauled. Thesecompressors pump the gas through cooling units to liquefy it at -164°.Investors in such a plant would typically expect it to operate for morethan 30 years. At Angola LNG, equipment is rapidly deteriorating dueto salt winds blowing off the Atlantic.The plant has suffered problems in dealing with varying grades of gaswhich arrive by pipeline from the offshore fields containing liquids.New equipment is being shipped in to help handle and to strip theliquids from the gas, two sources said.

Do

wn

stre

am M&P sells Tanzanian gas

Major reconstruction for Angolan LNG plantAnsaldo Energia to supply power plant


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The Rosemount2020 switch.

Emerson expands application scope for switch THE LARGEST PIECE

of the turret forShell’s PreludeFloating LiquefiedNatural Gas (FLNG)facility has set sailfrom Dubai for theSamsung HeavyIndustries shipyard inGeoje, South Korea,where the facility isunder construction.The turret is part of amooring system designed to ensure Prelude FLNG can operatesafely in the most extreme weather conditions. At almost 100metres high, it is the largest in the world. The turret will runthrough the front of the facility and connect to giant chains thatwill keep it moored securely over the Prelude gas field. The turretmooring system will allow the facility to turn slowly in the windand with currents – ensuring it can remain safely at its locationthrough the most powerful cyclones. “Prelude FLNG combines our many years of experience in shippingand in managing complex LNG and offshore projects. It’s great tosee our innovative designs and technologies become a reality as wereach significant project milestones like this,” Matthias Bichsel,projects & technology director at Shell said.“Designed in Monaco, built in Dubai, shipped to South Korea andfor use off Australia, the turret is an example of the truly globalnature of this project.”Shell was the first company to commit to an FLNG project, and itexpects Prelude FLNG to be the first of many such Shell facilities.Once complete, Prelude FLNG will produce about 3.6mn tonnes ofLNG a year to help meet rising global demand for cleaner energy.After the first 25-year assignment, Prelude FLNG could berefurbished and moved to a different field for another quartercentury.FLNG will allow Shell to produce natural gas at sea, cool it onboardinto LNG, and pump it directly into ships that will transport it tocustomers around the world. It can mean faster, cheaper and moreflexible development of offshore gas fields that would otherwise betoo costly to develop.

Giant turret module for Prelude set sail

NIOSH ADVISE THAT productivity and health arecompromised by prolonged exposure to excessivetemperatures.The CV01 is a revolutionary new product thatkeeps workers cool for up to eight hours. Usinganti-heat-stress technologies and materials, thisvest keeps the body at an ideal temperature foryou to work in comfort, in even the hottest andmost humid weather.Simply saturate the vest in water and then squeezeto remove any excess water. The vest can then beworn and will not dampen any clothes underneath.When the vest becomes dry, simply repeat for afurther eight hours of cool comfort.For more information visit www.portwest.com

New CV01 cooling vest for up to eight hours


Oil Review Africa Issue Five 201460 www.oilreviewafrica.com

AS THE AFRICAN oil and gas sector continues to grow, there will be aneed for highly skilled engineers and talented leaders. Whilst traditionalproduction and reserves remain in countries like Nigeria, Libya andAngola, new hot spots have emerged in Ghana, Tanzania and Uganda.

In each country, these new opportunities have focused companies andgovernments to rethink how they have to have the right people in the rightplaces to take advantage of these potential game changing discoveries.

Even as poor physical infrastructure, investment constraints and regulatoryframeworks contribute to challenges facing the industry, another common and keybarrier to growth has been the availability of skilled and competent professionals.

The shortage of international and local talent can, if not addressed properly,effect not only exploration and production, but eventually the financial viabilityof oil and gas projects across Africa. An ageing workforce coupled with highlyspecialised roles and low supply of qualified engineers and managers have leadto this serious situation; so much so, that replacing the ageing workforce with ahighly motivated, skilled and loyal staff has become the number one priority formany companies in the continent.

Managing shortage of senior staffManaging the shortage of senior staff coupled with developing the skills levelof local talent will be key to addressing the challenge. Creating workplaceswhere employees feel aligned and engaged with their roles and theorganisation will be a highly effective way to retain staff. Additionally,

understanding how engagement levels are influenced by an organisation’sculture, strategy execution, leadership, structure and processes are an importantstep. It lets employees take ownership of their own development and itunderscores the link between individual performance and business results.

As the talent crunch in the African oil and gas sector increasingly takes hold,companies need to meet this challenge head on or face a human resource crisis,in both the office and in the field. While recruitment is one part of the solution,effective talent management is a key component of the long-term answer.

Research carried out by Oil Review Africa has led to the establishment ofthe HR Forum: Oil & Gas which has its first event on 23 – 25 November inDubai. This timely forum will provide a platform for oil and gas companies todebate not only these challenges, but more importantly, the solutions. �

For more information: www.hrforumoilandgas.com

Replacing the ageing workforce with a highlymotivated, skilled and loyal staff has becomethe number one priority for many companies

in the continent.

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Tackling the region’stalent crunch

AGR to act as technical advisor inconsortium for Niger oil blocksAGR HAS JOINTED as technical partner in a bid consortium to acquire OML29 onshore Niger Delta oil blocks from Shell. Aiteo E&P, which hassignificant experience in the Niger Delta, has taken a majority shareholdingin the consortium.

The technical scope will be carried out by AGR’s Facilities Solutions.AGR’s Facilities Solutions delivers subsea engineering services and providesoptimum field development solutions to the upstream oil and gas industry.The division recently delivered engineering services on the Brynhild fielddevelopment project managed by Lundin Norway.

Inge Holm, vice president of AGR Facilities Solutions, said: “This is anexciting and very important prospect for us. The Shell assets contain a largeamount of reserves and will give a good return to shareholders. Whensuccessful, the deal will also signal a significant contract for us.”

AGR as technical partner will be a key player in the future development ofthe asset which currently has a combined production of around 100,00 bpd.

Last year, Facilities Solutions announced aggressive growth plans inthe APAC region by enhancing its subsea project management offeringfrom its Perth office.

WOODSIDE HAS FINALISED an agreement with Noble Energy and Glencore tofarm in to the Tilapia Production Sharing Contract (PSC) off the coast ofCameroon.

The company said the 3,875 sq km block was located in the DoualaBasin, offshore of southwest Cameroon in water depths ranging from theshoreline to 1,100m.

Under the agreement Woodside will hold a 30 per cent non-operatinginterest.

Noble Energy will retain 46.7 per cent interest and will continueoperational responsibility, while Glencore will retain a 23.3 per cent interest.The Joint Venture plans to drill the Cheetah exploration well in 2015.

Woodside chief executive Peter Coleman said the Douala Basinrepresented an exciting opportunity with "demonstrated oil prospectively".

"Following our recent announcement on Gabon, this farm-in opportunityconsolidates our regional position and extends our relationship with Noble asa valued and experienced operator," Mr Coleman said.

"As part of our global exploration portfolio build, our entry into the TilapiaPSC gives us exposure to an emerging play in a proven basin with an excitingnear-term drilling opportunity."

Woodside farms into Tilapia

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Oil Review Africa Issue Five 2014 61www.oilreviewafrica.com

ZINC COATINGS ARE used to protect industrialstructures and equipment in C4 and C5corrosive conditions, where saltwater and highhumidity corrode unprotected steel. Based onnew, patented AvantGuard technology, globalcoatings supplier Hempel's newly launchedHempadur AvantGuard activated zinc primersare developed for a range of industries andapplications, from offshore oil & gas platformsto wind turbines. AvantGuard is the result of an extensive R&Dprogramme run specifically to solve an issuediscovered in Hempel’s labs in 2007: only one-third of the zinc in a zinc epoxy primer isutilised for galvanic protection. Pernille Lind Olsen, group protective productdirector at Hempel, commented: “AvantGuardis perhaps the biggest change in anti-corrosivetechnology since zinc coatings were firstintroduced during the 1960s. The technologygives customers strong anti-corrosionperformance in a coating that has highmechanical strength.” AvantGuard uses hollow glass spheres and aproprietary activator to activate more zinc inthe coating, ensuring a significantly highergalvanic effect than zinc primers without theAvantGuard technology. The technology alsoenables barrier and inhibitor protection, and socombines three protective effects in one. Furthermore, the unique formulation improvesthe coating’s mechanical strength, which isessential for applications with, for example,extreme temperature and humidityfluctuations. “In a standard zinc epoxy protective system,the zinc primer is the weakest mechanicalpoint and, as a result, cracks can form in thecoating as the steel expands and contractsunder extreme conditions,” said Josep Palasi,Hempel r&d director. “AvantGuard zinccoatings are different as the glass spheres andsub-products that result from the unique zincactivation process stop micro-cracks as soon

as they form. This, we can say, makes thecoating self-healing.” The increased protection and durability hasbeen proven in extensive Hempel tests,including salt spray tests (ISO 12944 part 6),cyclic corrosion tests (ISO 20340 - NORSOK M-501 revision 6) and thermal cycling resistancetests (NACE cracking test and Hempel’swelding test).Hempadur AvantGuard primers can be appliedusing the same application techniques as

standard zinc epoxies. “In our tests, Hempadur AvantGuard shows ahigh tolerance to different applicationconditions, such as high temperatures andhumidity, and we even see high crackresistance when the coating is applied with anexcessive dry film thickness,” Pernille LindOlsen said. The Hempadur AvantGuard series currentlyincludes three different zinc primers and hasbeen released worldwide.

Hempel’s new Hempadur AvantGuard primers redefine anti-corrosion

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6 Advanced corrosion protection due to the high level of activated zinc in the coating6 Excellent crack resistance in cyclic temperatures and varying humidity6 Self-healing of micro-cracks prevents further propagation of cracks6 Requires same application techniques as zinc epoxies6 Suitable for all applications and especially designed for tough conditions and C4 and C5

environments6 Three coatings currently available: Hempadur AvantGuard 770, Hempadur AvantGuard 750

and Hempadur AvantGuard 550 Hempel is continuing to work on solutions that utilise new activated zinc technology.

Full system with AvantGuard technology 1440 hours Full system without AvantGuard technology 1440 hours

Hempadur AvantGuard coatings at a glance

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SSEISMIC EXPLORATION IS definable aslooking for commercial deposits ofhydrocarbons by artificially inducingshock waves into the Earth and then

recording and analysing the effects. Much like X-Rays or ultrasounds are crucial in the medicalprofession, seismic helps companies that arelooking for oil and gas reserves to find andunderstand new deposits and also make informedjudgements about safety and how to keepenvironmental damage to a minimum.

The search for hydrocarbons is gathering pace inAfrica. A string of major discoveries over the lastfew years has spiked interest and deepwaterexploration in West Africa, for example, which nowstretches from Angola to Mauritania. Moreover,offshore hydrocarbons production in West Africa hasalmost doubled to over 1500MMboe since 2001and is expected to reach over 2,000MMboe by2020. Oil and gas in North Africa and gas depositsin East Africa are also of increasing interest.

As the search for oil and gas in Africa becomesincreasingly extensive and intense, the quest forhydrocarbons is also becoming more challenging:Hydrocarbons firms have started exploring moredifficult and layered environments. These includeextremely deep water areas reaching depths thatare sometimes over 2,000 m off the coasts ofvarious African countries and also the continent’svarious subsalt areas. When it comes to these kindsof environments, traditional tried-and-testedseismic has proved inadequate, and companies areeager to come up with more refined, cutting edgeseismic programmes.

Emerging focus on broadband seismicOne of the emerging areas of focus is broadbandseismic. Broadband seismic is about accessing awider bandwidth of frequencies than is possiblethrough traditional exploration techniques.Broadband seismic gives access to bandwidthvarying from 2.5Hz to 200Hz or more. Tapping intoextremely high or low bandwidth can help to builda more detailed picture of an environment - forexample it can expose things like small faults orlateral lithological alterations. "We have observeda growing need for broadband seismictechnologies in the region," said Alessandro Colla,geomarket director, South Africa and sub-Sahara atGeoscience firm CGG. "This is because thehydrocarbon potential beneath complexoverburdens such as evaporites highlights theimportance of recording a full range of frequencies[both low and high] when acquiring seismic data.

The challenge of seismic imaging around andbelow complex salt bodies is well known andmarine broadband techniques deliver improvedresults in combination with 3D, wide-azimuth andeven full-azimuth survey designs such as ourproprietary StagSeis solution," he added.

"The latest broadband seismic technology isbeing used in the West Africa deep offshore area aspart of the oil and gas industry’s efforts to revealthe region’s sub-salt and pre-salt potential. It is arecognised and mature technology and rapidlybecoming the industry standard for exploration anddevelopment applications," said Colla, adding that

experience in Latin America has been instrumentalin terms of the uptake of the technology in Africa."Renewed interest in West Africa‘s deep offshorepre-salt plays has arisen essentially from thesuccess of the South Atlantic equivalent margin inBrazil, where the giant Lula field and more recentlythe Libra discovery have been found in anequivalent setting," he said.

Broadband is proving extremely popular with anumber of seismic program developers. IONGeophysical, a geoscience firm that also offersseismic solutions, recently tested the broadbandtechnique in the Gulf of Guinea as well in an areain the northern sector where French oil giant Totalis keen to establish a turbiditic reservoir, in order topick up on details like minor faults and reservoirextensions. At the end of last year CGG also carriedout a 1,484 sq km seismic survey offshore WestAfrica using broadband.

High expectations"On this particular contract that began in late 2013CGG deployed its most advanced seismictechnology: wide-azimuth BroadSeisTM broadband,"said Colla, from CGG. "This combination of wide-and full-azimuth survey geometry with broadband

The Geo Coral took part in a 1,484 sq km BroadSeis wide-azimuth survey CGG recentlycompleted offshore West Africa. Image courtesy of CGG.

The latest broadband seismictechnology is being used inthe West Africa deep

offshore area as part of theoil and gas industry’s effortsto reveal the region’s sub-saltand pre-salt potential.

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As oil and gas companies increasingly turn their attention to complex, uncharted territoryoff the shores of Africa, they are becoming acutely aware that their traditional toolboxsimply won’t cut it. As a result, they are seeking to develop and use cutting edge seismictechnology to build up an accurate picture of hydrocarbons deposits.

State-of-the-art seismic technology boosts exploration in Africa


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marine seismic has provided some fantastic resultsin similarly complex geological settings in the Gulfof Mexico, so there are high expectations for thistechnology in West Africa. This was a largecontract in a challenging geological environmentand was particularly important for CGG as it wasthe first time this technology was applied in WestAfrica," Colla said.

"In the past years we have improved anddeveloped BroadSeis so that it continues to providethe oil and gas industry with the broadestbandwidths in the industry," added Colla.

"This translates into better images that aremore easily interpreted and result in more accurateinterpretation, more quantitative reservoir analysisand better lithology prediction to reduceexploration and production risk," he said.

Moreover, CGG predicts that the use of thebroadband technology will only increase. "Webelieve that we will see an increase in demand forthis kind of technology as exploration anddevelopment advances to more mature stages inthis region and operators need more accuratesubsurface images to help with their drilling andfield development decisions," said Colla, addingthat broadband is a cornerstone of CGG’s activitiesand is a crucial focus-point for the company.

Continuous evolvement"BroadSeis is the result of a huge multidisciplinarygeophysical integration effort in CGG, fromequipment engineering, acquisition expertise indeploying this new approach rapidly across theseismic fleet and the development of new imaging

workflows which preserve bandwidth and maximisebroadband data potential for reservoircharacterisation," said Colla. "This is an ongoingeffort as BroadSeis continues to evolve and driveforward the broadband seismic revolution with allthe benefits for subsalt exploration," he added.

RTM for complex areasAnother buzz-word in the industry is ReverseTime Migration (RTM) - a cutting edge methodwhich entails several computers working insynchronisation at the same time to transformseismic data into a detailed and accurate 3Dimage. RTM is particularly useful for tacklingcomplex areas. For example, the thick mushroom-shaped salt domes that pepper Angolan watersmake exploring the area more challenging.Geologists have for a long time hypothesised thatthere could be extensive oil reserves underneathsuch salt layers - not only offshore Angola butalso in places like Brazil and the Gulf of Mexico.Although the Angolan salt domes collect oildeposits because of their shape, this samecharacteristic means that they obscure what isbelow them. Salt can also interfere with thesound waves that seismic relies on to work andcan blur seismic images, which combined makesbuilding a seismic picture of the area underneaththese domes very tricky.

One of the ways that hydrocarbons companieshave sought to overcome this challenge isthrough refining the method of RTM. At the heartof RTM is the use of algorithm to build a picture ofan area and rectify the distortions associated withexploring a salt-rich area. Hundreds or sometimeseven thousands of connected computers, knownas clusters, migrate masses of seismic data intousable images in a painstaking process that cansometimes takes weeks but has been proven todeliver outstanding results. RTM helps todelineate reservoirs and enables firms to makemore educated evaluations about the possiblehydrocarbons volumes in a given area. Themethod has proved to be popular in both Northand West Africa in particularly recently. In West

Africa, a forty million barrel discovery was madepartly due to RTM. One of the disadvantages ofRTM is the huge costs that are inevitablyassociated with the eye-watering amount ofenergy used up by these computers. It isestimated that RTM eats up thirty times morecomputer power than traditional hydrocarbonexploration methods. Nonetheless, several firmsare keen to pursue RTM in Africa.

Spanish oil and gas Repsol has provedparticularly keen on using RTM to improve itsseismic imaging. Back in 2006 the energy giantcame up with Project Kaleidoscope after workingwith a host of technology experts such as theStanford Exploration Project at Stanford University,IBM and 3DGeo. A key input of ProjectKaleidoscope is one of the best supercomputers inthe world, which was constructed by IBM and is inHouston, Texas. It is capable of carrying outcomplex algorithms at top speed, outperformingother seismic processing equipment by some way.Kaleidoscope has been instrumental in thediscoveries that Repsol has made in the AmericanGulf of Mexico and Brazil recently.

Project Kaleidoscope to be used in AfricaCrucially, Repsol plans to directly deploy ProjectKaleidoscope in Africa, as last year it inked a dealwith Angolan national oil company, Sonangol,which will give the latter’s scientists theopportunity to use Kaleidoscope so that they cancome up with a detailed seismic image of theKwanza Basin, offshore Angola.

Repsol clearly hopes that Kaleidoscope willprove as useful in Angola as it has in Brazil. It maywell do. Many experts hypothesise that the deepwaters offshore Angola are a mirror image of theCampos Basin in Brazil, where US CobaltInternational Energy made a game-changingdiscovery last year, and other giants including BPand Total have followed and plan to start drillingnext year. It is now beyond much doubt thatCampos Basin has oil to fill billions of barrels andfirms like Repsol are now eyeing Angola, wherethey believe the situation could be the same. �


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Kirchhoff PSDM data from CGG’s 2013 multi-client BroadSeis data in Angola Block 21, passing through the recent Cameia-1 discovery. Image courtesy of CGG Data Library.

This is an ongoing effort asBroadSeis continues to evolve

and drive forward thebroadband seismic revolutionwith all the benefits forsubsalt exploration.




WWEST AFRICA'S DEEPWATER haslong been a testing ground formany of the oil industry’s frontiertechnologies.

And surely there is no more impressive sightthan the state-of-the-art drillships, floating platformsand rigs that ply their trade in the area.

These vast mega structures, built at huge costand crammed with all the latest kit, are the unsungheroes of the region’s now thriving offshore sector.

It’s big business too. In June, internationaldrilling contractor Ocean Rig signed a six-year dealwith Total for the use of its ultra deepwater drillship,the Ocean Rig Skyros.

The deal, for work in Angola’s offshore Block 32,is worth an estimated US$1.3bn.

Oil companies like Total are hiring vessels loadedwith state-of-the-art equipment designed with thesole purpose of finding and extracting hydrocarbonsfrom the deep sea.

It’s an incredibly complex and intricate business,and the standards and potential of what is possibleonly continues to creep up.

This is bringing with it exploration success tonew parts of the continent, as well as otherchallenging environments around the world, such asthe frozen Arctic.

In eastern Africa - where there was little joy withthe drill bit for decades - drillships have now openedup a potential multi billion dollar gas export business.

The maritime industries are merely responding todemand from the drillers.

Certainly, the times have changed greatly sincethe years when workers on wooden platforms usedhoisting equipment and brute strength to operate rigs.

Nowadays, engineers use a joystick and state-of-the-art monitors to control often the most delicate ofoperations possibly miles offshore.

Throw in ever-deeper drilling capabilities,increased fuel efficiency and helicopter landing padsfor easy in and outs, and you’re just scratching thesurface of what these ships are capable of.

Next generationOffshore drilling specialist Atwood Oceanics recentlytook delivery of the second of four new ‘A-Class’ultra-deepwater drillships from South Korea, which itwill deploy to north-western Africa for US explorerKosmos Energy.

The Atwood Achiever, built by Daewoo Shipbuilding& Marine Engineering (DSME), is expected to arrive inAfrica in December for a three-year drilling contract.

The ultra-deepwater dynamically positioneddrillship is capable of drilling to 12,000 metres.

It resembles a mighty stack of tangled metalequipment, with towering double derrick drillinginstallation and cranes - and the obligatory helipad,one of the more discernible features along it’s 240-metre length.

According to Atwood, the Achiever’s power andreach slightly edges most typical fifth generationdrillships, the vessels responsible for many of WestAfrica’s big deepwater finds in the past.

The final two A-Class ships of the pack are set fordelivery next year, underlining the company’sconfidence in the offshore market.

Indeed, its fleet is fully booked out for theremainder of this year and for much of 2015.

These advanced rigs will be put to work on allkinds of deepwater operations, from drillingexploration and development wells, carrying outcompletion activities, and intervention and work-overoperations on development wells.

The appetite from explorers like Kosmos - whichpioneered Ghana’s recent oil drilling successes - totarget new offshore areas along the African Atlanticmargins means shipbuilders must constantly evolve

this technology and drilling power.Keen to push Africa’s frontiers yet further,

Kosmos has now set its sights on Sierra Leone andLiberia, among other markets. These have provedfruitful territories in recent times, but typically eludedoffshore drillers in years gone by.

Kosmos, like other explorers working the area,will be partnered all the way by a specialist offshoredrilling team and one of the industry’s cutting edgevessels.

Sixth generationIt’s an environment that makes the availability of newfloating ship technology all the more compelling, asoil and gas finds get harder to unearth.

The next generation fleet of drillships is expectedto see more larger units coming through, with evengreater power, to further aid companies in this questfor resources.

Seadrill recently secured a contract in Nigeriawith ExxonMobil for its sixth generation drillship,West Saturn, just built in South Korea, and deliveredin September.

The newbuild ultra-deepwater drillship will bedeployed to the Erha North Phase 2 project, on atwo-year basis with a one-year option, with theprimary contract term worth US$497mn.

Seadrill is partnered on the project by FieldOffshore Design Engineering Nigeria Limited, areflection of government directives to see more localinput in big oil and gas projects.

The West Saturn, built by Samsung Heavy

The Atwood Advantage from Atwood Oceanics was the first of four ‘A-Class’ ultra-deepwater drillships from SouthKorea, on which the Atwood Achiever is modeled.

Nowadays, engineers use ajoystick and state-of-the-artmonitors to control often themost delicate of operationspossibly miles offshore.

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The new generation of vessels working Africa’s offshore industry are smarter and morepowerful than ever. It’s an evolution that’s likely to continue

New generation vessels:Floating technology



Industries, marks the sixth Seadrill unit to commenceoperation in the past year.

The unit will initially be outfitted to work in up to10,000 feet of water and is capable of handling twoBOP's, operating in up to 12,000 feet of water anddrilling depths up to 40,000 feet.

These specifications make it one of the mostmodern and technically capable ultra-deepwater rigsin the world.

“The West Saturn is Seadrill's third rig in Nigeria,working alongside the West Jupiter and West Capella,”Seadrill’s chief executive Per Wullf said in August.

Technology, size and power typically comes at aprice, however, and the new breed of drillships andrigs are pushing up investment and operational costs,just as they are raising the bar with performance.

This may raise further sustainability andenvironmental questions too, a key area of concernfor all shipbuilders in the modern era.

There is an alternative drillship designphilosophy, which could reverse this trend, in a bid tominimise size and control costly day rates andimprove economics, though for now the tendency isfor bigger and better.

Beyond explorationBeyond exploration, there are advances to otherenergy industry vessels too, notably in thetransportation of hydrocarbons, especially gases.

In West Africa, countries like Nigeria and EquatorialGuinea, have already benefited from advances in theshipping of liquefied natural gas (LNG).

Both countries now ship LNG across the Atlanticand to other markets, and they are likely to be joinedbefore long by countries along the eastern Africacoast as well.

Advances have come thick and fast in the LNGsector, in areas ranging from gas containment systemsand safety, through to propulsion and fuel economy.

This trend is being mirrored in other parts of thegas export chain too.

In the US, there are now plans for a new breed ofvery large ethane carriers to ship surplus Americangas to export markets around the world.

Historically, ethane has been transported in smallliquefied ethane/ethylene carriers.

A benefit of ethane is that, as with LNG, thecargo can also be used to power an ethane carrier’sengine, an important environmental extra.

More of these global trends are likely to findtheir way to Africa’s oil and gas industry.

What matters most, though, is that the reservesare there to underpin such investment andtechnology research.

Indeed, even the most advanced vessels cannotwork miracles, and operate under the constraints ofnature’s own geology.

Statoil’s recent Angolan well, Dilolo 1, in Block

39, for instance, failed to strike oil in the country'spre-salt Kwanza basin.

Like others, the Norwegian company hopes tounearth similar formations to those discoveredoffshore Brazil, on the opposite side of the Atlantic.

This could, potentially, open up a whole new oilplay off the West African coast, although it is as yetearly days.

Of course, it will always be the case that not allwells will succeed; this is a given in the oil industry.

Yet the precision and accuracy of today’sdrillships and rigs means explorers are now able togive it their best shot yet.

It’s still a high risk, costly business, but themaritime industries - like the oil companies themselves- have risen to meet the challenges head on. �


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Seadrill’s sixth generation drillship,West Saturn, is deployed in the ErhaNorth Phase 2 project in Nigeria.




WWHETHER THEY ARE newer fields such as Total’s CLOV project orTullow Oil’s TEN project or brownfield sites such as the Daliaand Pazflor projects offshore Angola, the need for flowassurance and the seamless flow of hydrocarbons from the

offshore reservoir is crucial to African operators today.This focus on flow assurance is also being seen in the wide variety of flow

assurance solutions being adopted, such as well testing, corrosion monitoringsolutions and corrosion inhibitors, as well the large number of flow assuranceemployment positions available in Africa today.

Subsea multiphase metersCentral to many flow assurance strategies today, however, are subseamultiphase meters. Such meters provide crucial information on the flow rates ofoil, gas and water in the well stream and are central to many African operators’field development strategies. Total’s Pazflor and AKPO developments andExxonMobil’s Kizomba C and Saxi fields are examples of fields wheremultiphase meters are deployed.

Multiphase meters, however, can’t go it alone! Multiphase meters today can only be truly effective if they are sensitivelyaligned with the changing conditions of the reservoir. This article will examinesome of the crucial variables affecting multiphase meters today and how theircontribution to flow assurance is being enhanced through subsea sampling.

Changing process conditionsOne of the main challenges facing multiphase meters today is the changingprocess conditions seen in many African reservoirs.

While well samples are typically taken when the well is drilled, reservoirproperties are likely to change when a well is being produced. When pressuredecreases in a reservoir, for example, the GOR (gas/oil ratio) will also change aswill the liquid and water present in the flow. This can particularly be seen in wetgas fields with high gas void fraction (GVF). There are a significant number ofwet gas fields in Africa, such as offshore Kenya and offshore Congo.

In such cases, it’s even more crucial for multiphase meters to accuratelymeasure flow rates and detect potential obstacles to production, such asformation and produced water. Both produced and formation water is a potentialsource of hydrate formation, scaling and corrosion – all of which can lead toproduction problems – and accurate identification is therefore vital.

To this end, African operators must measure the small amounts of liquid(water and condensate) in gas production flows as well as the gas productionflows themselves.

Finally, there are also the dangers of fluid contamination in cases wheresamples can be exposed to oil-based drillling or other reservoir production fluidsas well as the inevitable cost implications and risks surrounding subseaintervention.

So how are multiphase meters meeting these challenges? Traditionally multiphase meters tend to show an increased uncertainty at

GVF of around >95 per cent making them less accurate in wet gas fields withhigh GVF. They can also sometimes be characterised by a limiting mapping ofdifferent flow regimes and an inability to handle varying conditions.Furthermore, as a field starts to age (as is the case with some African fields), sothe accuracy and stability of multiphase meters tends to decrease.

In such cases, incorrect fluid property data – whether it be due to be changingsalinity composition, an increasing amount of liquid and water in the gas flow orgrowing water cuts – can have potentially devastating effects on measurementsleading to poor reservoir management decisions for years to come.

Multiphase meters today can only operate to their full potential if they areprecisely calibrated and are sensitively aligned with the changing fluid andprocess conditions of the reservoir and the fluctuating flow rates. A key means ofachieving this is through accurate PVT data generated through subsea sampling.

Importance of PVT and subsea samplingPVT (pressure, volume, and Temperature) data is one of the most importantsources for evaluating fluid properties and predicting reservoir performance today.

It is the fractional data on oil, gas, water, salinity and PVT and the trackingof composition changes, such as changes in fluid properties like density andviscosity (often as the reservoir is depleted), that is crucial for calibratingmultiphase meters and ensuring that they operate at their maximum potential.

This particularly applies to multiphase meters using a gamma sourcewhere such meters must be configured with the fluid properties of oil, waterand gas and ideally reflect the changing PVT data over time.

Yet, in the past, there have been limitations over the capturing of PVT data –with conventional test separators bringing with them potential inaccuracies andmanual subsea sampling giving little consideration for flow dynamics. There isalso sometimes an inability to track and react to fluctuating reservoir conditionsand difficulties in maintaining original pressure conditions in the laboratory.

Finally, conventional PVT analysis can also lead to considerable delaysbased on a limited number of samples with water conductivity changingsignificantly during this time and putting into question the volumetricrepresentation and accuracy of the samples.

New subsea sampling technologiesIt is this lack of volumetric representation, low repeatability and difficulties incapturing PVT data that has led to a significant change in approach to subsea

African operators must measure the smallamounts of liquid in gas production flows aswell as the gas production flows themselves.

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Eivind Gransaether, CEO, Mirmorax, examines some of the crucial variables affectingmultiphase meters today and how their contribution to flow assurance is being enhancedthrough subsea sampling.

Securing flow assurance through effectivesubsea sampling


The need for flow assurance and the seamless flow of hydrocarbonsfrom the offshore reservoir is crucial to African operators today.



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sampling. This is based on the need to provide reference data for high qualityPVT analysis that helps generate a volumetric representative sample forquantifying oil, gas and water fractions.

The success of such an approach is based on three key criteria: The need fori) the sample to be maintained at its original pressure conditon; ii) the samplingto take place regularly repeated multiple times on the same well over a certaintime period; and iii) the subsea sampling taking place as close to the wellheadas possible so that it is representative of the fluid flowing through the meter.

It’s with these criteria in mind that the Mirmorax Subsea MultiphaseSampling System (SMSS) is enabling operators to accurately capture fluidproperties, calibrate multiphase and wet gas meters, and ensure that the wellsare performing at the peak of their production limits to deliver flow assurance.

At the centre of the new system is a permanently installed Analyzer systemmodule that, mounted to the multiphase sampler, provides online, on-demandfractions of oil, gas, water, salinity and density without the need for subseaintervention and without the dangers of fluid contamination. The Analyzer uses anacoustic-based technology where online quantitative values can be obtained by apush of a button and then made available through standard communications.

Through this, the operator can read the oil, gas and water fractions directlyfrom the sampling bottles taken at a specific time window, providing a phasefractional set of data that can be directly compared to the metering data for thesame time period.

By calibrating a fixed point at given pressure, temperature and volumetricfractions, the operator can provide the multiphase meter with a fixed point,increasing the meter’s accuracy significantly in relation to the pressure andtemperature conditions the sample was taken under.

In figure 1, for example, one can see the correlation between variables witha multiphase meter as part of a step-by-step process in calibrating the meter.Such steps consist of 6 1) Obtaining Gas, Oil and Water (GOV) fractions from a sample over a 15 to

60 minute timeframe by direct readings (red dot values on plot).6 2) Using GOV fractions from the sample to update the GOV parameter file for

the multiphase meter at the specific timeframe when the sample was taken(matching the red dot to the multiphase meter surface curve). The multiphasemeter will now have a good calibration in the proximity of the red dot.

6 3) Using the multiphase sample to obtain high quality PVT data. The PVT willensure a high accuracy level when the meter moves away from the red dotarea and adjusts the aspect ratio of the multiphase meter surface curve.

6 4) Taking more samples under different flow rates to verify that the multiphasemeter surface curve give the same values as the multiphase sample. In the illustration, one can see the correlation between variables in a

multiphase meter. The landscape 3D plot illustrates the correlation curvebetween two core data inputs and the output value. The red point will place the3D plot of the meter in reference at a fixed point, with PVT data then needed toensure that all values correlate.

Recent loop test results The effectiveness of this new approach to subsea sampling is beingdemonstrated through recent testing at the Christian Michelsen Research (CMR)Multiphase Flow Loop in Bergen which has a flow loop facility covering 0-98per cent GVF and 0-100 per cent WLR (Water Liquid Ratio).

As can be seen in figure 2, the results showed that there was a very strongcorrelation between the measured samples from the new sampling system andthe reference values from CMR. The graph shows the system’s accuracy andperformance across the whole WLR range.

Figure 3 shows a clear correlation between the GVF from the CMRreference and the samples extracted from the new sampling system. Whilethere is a deviation between the reference values and the sample values, weare confident that this deviation can be significantly improved by runningeven more plots and by looking at the mechanisms that influence thedeviations.

With African operators needing greater control and insight into their subseaoperations and with their continued flow assurance requirements, the optimaluse of multiphase meters has become crucial.

Effective subsea sampling taken regularly close to the wellhead at itsoriginal pressure condition and the accurate capturing of PVT data represents animportant step forward. �

Figure 2. The graph shows the system’s accuracy and performance across thewhole WLR range.

Figure 3.The correlation between the GVF from the CMR reference and thesamples extracted from the new sampling system.

Figure 1: The correlation between variables with a multiphase meter as part ofa step-by-step process in calibrating the meter.


TTHE INDUSTRIAL PAINTS and coatingsbusiness remains one of the unsungheroes of Africa’s now buoyant oil andgas industry.

The safety and integrity of all energy assets -from offshore rigs to desert pipelines - isfundamental to the smooth running andprofitability of the entire industry.

And high specification coatings and paints canplay a key role in boosting performance.

In tough, or cramped environments, like theoffshore, this becomes especially important.

Ships, rigs, supply boats and other vessels havelong been covered with special paints for extraprotection against the elements.

This now extends to pretty much all otheroffshore installations too.

Subsea pipelines can be protected for greaterdurability, thus requiring less maintenance andcostly intervention work; platform installations canbe protected against fire hazards, ensuring bothlongevity of equipment, and safeguarding humanlife in remote offshore sites.

It’s a vital, but for the most part, little heard,story within the global energy chain.

And it’s big business too, with Africa widelytipped as a growth opportunity.

According to a recent report by BCC Research,the global market for paints and coatings - acrossall industry sectors, including residential - isexpected to grow to US$155.6bn by 2020, led byhigh growth China and India.

But Africa throws up unique potential too, as amarket waiting to happen.

“The best opportunities are expected in theAfrica and Middle East region, where paint demandper capita is the lowest in the world,” commentedBCC Research chemicals analyst Srinivasa Rajaram.

Jotun keen on Kenya A leading player in this niche is Jotun, which hasset its sights firmly on Africa’s energy sector,including a number of intriguing new markets.

The Norwegian-based group makes paints andprotective coatings for the oil industry and othersectors, from airports and bridges, through to yachtsand furniture.

In the energy business, it’s corrosion controlsolutions extend the life, operational performanceand flow assurance of plants and terminals acrossthe world.

The company’s fire protection and performancecoatings have been safeguarding more than 100,000km of pipelines worldwide over the last 30 years.

In the Middle East, the world’s biggest oilproducing region, it controls an impressive 30 percent of the pipeline coatings market, with a clientlist that reads like an industry who’s who.

Jotun announced earlier this year that it ischoosing to focus on high growth markets such asAfrica for future business success.

The company’s chief executive Morten Fonflagged Africa, as well as Asia, as places where hiscompany plans to invest more going forward.

It is currently present in five African countries:Egypt, Libya, South Africa, Algeria and Morocco.

Next on the list, though, is Kenya, where oil hasonly recently been discovered, but where there isplenty of activity now taking place, both in andaround the east African country.

“We see great potential for Jotun’s products inseveral African countries. Kenya is one of theseinteresting markets,” Fon said.

High growth potential Indeed, Kenya was highlighted in a 2014 reportinto the industrial paints and coatings market -along with South Africa and Nigeria - as beinggenuine growth opportunities.

The report, by Frost & Sullivan, states that a raftof new projects, both in the energy sector and otherareas, will drive demand for more powder and liquidcoating solutions.

The study covers wood, powder, can and coil,marine, and industrial protective coatings.

“New projects announced in the oil and gassector and allied industries in South Africa, Nigeriaand Kenya are fuelling the demand for industrialpaints and coatings products,” Anthony Lawrence,Frost & Sullivan’s analyst for the chemicals,materials and food industry commented.

“In South Africa, the government and otherprivate companies such as Sasol and Petro SA are

Coatings provide a critical path to reducing corrosionon offshore structures, and West Africa’s offshore

sector is continuing to provide new business.

More than just a lick of paint, the industrial coatings business is pioneering safety andasset integrity in Africa’s oil and gas industry.

Paints & coatings:Covering up


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the key forces driving the launch of new projectsand, in turn, widening market potential.”

Likewise, West Africa’s offshore sector continuesto drive new business, as does an emerging gassector along the coast of eastern Africa, opening upnew markets like Tanzania and Mozambique.

But this demand growth raises other issues foroil and gas companies too.

As in many other important supply niches, therising price of raw materials is pushing up the costof industrial paints and coatings production.

The fluctuating exchange rates of Africa areanother cause for concern too, especially for Kenyanindustry participants, as most raw materials used inthe manufacturing of paints and coatings areimported.

Local production The influx of competitively-priced paints andcoatings into South Africa from countries such asChina and India is diverting customers from localmanufacturers.

It is a trend, however, that is likely to stimulatedemand and activity in local production plantsacross the continent in the coming years.

In Nigeria, the Frost report says local production

capacity utilisation of paints and coatings willincrease significantly from its 2010 level of 35 to40 per cent due to this demand.

To remain competitive, local participants in theSouth African, Nigerian and Kenyan industrial paintsand coatings markets will need to offer productswith a high price-performance ratio and ensureavailability, according to Lawrence.

This, in addition to robust customer service andtechnical support to build and strengthen relationshipswith suppliers, add value, and retain customers, couldtrigger more international joint ventures.

"Local market participants should consideraffiliating with well-established internationalbrands in order to maintain high quality, whilerespecting the relevant health standards, as wellas obtain environmental complianceaccreditation," said Lawrence.

"These affiliations will also assist in makingcustomers completely aware of the grades of paintsand coatings so that they can use the right productfor the right application."

Future trendsIt may be one of the least well-known parts of theoil and gas business but these are exciting times for

players in the protective coatings business. The need for more infrastructure globally - and

especially so in Africa - is driving the consumptionof these coatings in all end-user industries, not justoil and gas.

The energy sector itself is expected to show arapid growth in the coatings marker with increasingdemand for protection from corrosion and otherenvironmental factors, according a third report, byMarkets and Markets.

It states that technology and product innovationwill be crucial to gain advantage in the future.

“New product development is the major growthstrategy adopted by market players,” the reportstates. “Most companies are engaged in developingnew and improved products to meet the risingdemand from end-user industries.”

And, if there are new products that can shavejust a fraction off project lifetime costs - reducingmaintenance and man hours, or raising overallefficiency, for instance - then that’s a big win forthe industry.

Oil companies will look for any slight advantageto project economics, where costs routinely stretchinto billions of dollars, whether that’s a new high-spec drilling rig or just a simple lick of paint. �



AAS THE GLOBAL deepwater and subseamarket continues to grow rapidly, thesearch for oil and gas in ever deeperand far reaching environments

continues apace. Exploration and production inthese remote areas, such as the west coast ofAfrica, inevitably mean a higher cost of operating.The need to fully understand the challenges of afield, an asset and its surroundings is thereforemore crucial than ever before. Getting it wrong issimply not an option.

OptaSense works on the principle “if you canmeasure it you can manage it” and has developeda highly effective Distributed Accoustic Sensing(DAS) system able to provide real-time data via theconversion of standard optical fibre into adistributed acoustic (or seismic) sensor.

Acoustic signals that strike the fibre causeminute strains. These are measured using laserinterrogation, turning the fibre into a distributedacoustic or seismic sensor. An Interrogator Unit (IU)fires a laser beam into the fibre, measuringbackscatter returns from imperfections inherent inthe crystalline structure of the optical fibre. Thestrains cause subtle modulations of the backscatterthat are then measured by the IU, thus sensing theseismic signal.

Already a proven technology onshore,OptaSense is currently developing the world’s firstfully marinised and qualified DAS system in a jointprogramme with Shell.

Functionable at water depths of approximately3,050m, the system will allow highly accurateacoustic data acquisition for the first time offshoreand will provide data for a range of deepwaterapplications including pipeline surveillance andleak detection, geo-positioning, in-wellmonitoring, subsea assembly condition monitoringand permanent reservoir monitoring. The multi-application device will include functional andtechnical parameters configurable in software,enabling the system measurement settings to bechanged to address different applicationrequirements.

The marinisation process will require the re-engineering of the interrogator unit to reduce itssize to fit into a robust pressure canister. Themodified opto-electronics will be tested to ensurethey meet the stringent temperature, vibration,shock and electrical certifications required ofsubsea equipment, particularly duringtransportation and deployment. In the subsea in-well monitoring application, the interrogator unitwill be positioned near the wellhead and data will

be relayed back to shore or appropriate installationvia a further fibre-optic link in a control line.

Predicted to be demonstration-ready by theend of 2014, the wide-ranging potential of theDAS technology subsea is being explored.Applying the system for permanent reservoirmonitoring would involve the DAS fibre providingan image of the subsurface at a significantly lowercost compared to current practices. The marinisedDAS is also being considered for use as a monitorof flow lines and pipelines in order to identifyleaks and hazardous activity, such as anchor drags,or vortex induced vibration, which can lead tocatastrophic mechanical failure.

Successful application onshore OptaSense has already achieved considerableonshore success with its leading DAS technology,which has been applied in a wide range ofapplications including seismic monitoring. Withcommercial services available in hydraulic fractureprofiling, production flow monitoring and verticalseismic profiling (VSP), OptaSense is transformingthe industry’s ability to understand in real-timewhat is happening along the well bore and beyond.

Distributed temperature sensing (DTS) usingfibre-optic cable has been around for several yearsnow, but the development of DAS is a relativelyrecent phenomenon and, through its versatility, hasthe potential to radically improve understanding of

a broad range of issues including reservoirs, fields,geology and asset integrity. It is now five yearssince DAS was first used downhole and it isdelivering significant benefits in a range ofcompletion, production and evaluation projects,including hydraulic fracture profiling.

Despite the rapid development of hydraulicfracturing techniques over the past decade, thehostile environment inside the well duringinjection means that sensors cannot survive. As aresult, during this high-cost, yield-dependentstimulation process, a large number of wells arenot monitored. The problem is how to measure thefull length of the production lateral without havingsensors inside the cased well, and in this respectDAS, through the deployment of fibre-optictechnology, can provide an effective solution.Clamped or strapped to the production casing andcemented in place, a fibre-optic cable can providereal-time DAS and DTS from completions throughto abandonment, without well intervention.

The uses of DTS, however, are limited. Althoughit has been used for over a decade, boreholetemperature is only part of the story when it comesto monitoring a hydraulic fracturing operation. Withthe DAS system it is possible to listen to the well ateach perforation location and hear how the fluid andproppants rush through the orifices and how therock fractures just outside the well and beyond intothe formation. Combining DAS data with real-time

Time versus depth waterfall showing DAS recording of in-flow at the production zone of a horizontal well.

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As the search for oil and gas faces new environments and higher operating costs,OptaSense chief techology officer Dr David Hill looks at how the need to fully understandthe challenges and surroundings of an asset is more crucial than ever.

Subsea - the next step for acousticsensing technology


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pump data from the pumping trucks, it is possible toestimate how much fluid and proppant is beingpumped into each perforation cluster. The companyanticipates that this process will have a significantimpact on reservoir modeling, well design, fieldoperations, and ultimately reservoir performanceand hydrocarbon recovery in the years ahead.

With the full-well continuous monitoring thatDAS enables, all activities during the hydraulicfracturing operation can be monitored foreffectiveness including:6 wireline tool tracking6 bridge plug setting 6 perforating6 ball drop, ball seating, sleeve sliding and

isolation from previous stageFurthermore, DAS can detect casing leaks andrestrictions that can deter operations, andaccurately report their depth. Recently fluidmigration between isolated zones has beenmeasured, providing the operator with informationthat can be used to halt operations if a previouslyfractured zone is at risk of being overstimulated.

The system is also used to visualise flowdynamics providing an alternative to conventionalpermanent production logging tool (PLT) readingswith the DAS fibre installed on casing or tubing.Through a permanently installed fibre,measurements can be taken on a continuous basis

or at regular intervals without the need for costlywell intervention and deferred production.

An industry first Earlier this year, OptaSense announced it hadcontracted with Petroleum Development Oman(PDO) to provide the industry’s first multi-well 4DDAS vertical seismic profiling (VSP) system tomonitor and map the performance of up to 12steam-injected oil wells in a brownfielddevelopment at South Oman Salt Basin.

Seismic signals have been recorded from fibre-optic cables attached to each well’s productiontubing, permanently installed and linked to asurface data-gathering centre. The final processeddata set will be integrated into PDO’s reservoirmodels, and assist in determining fluid substitutionthrough production and contribute towards thepositioning of infill wells.

Weighed against the use of geophones in thistype of application, the DAS technology provides anumber of benefits including low-cost on-demandacquisition through permanent cable installation;deployment in wells inaccessible to geophones;synergies with existing systems and retrofittingcapabilities; coverage over the entire length of awell and simultaneous data acquisition of multiplecontiguous wells.

ConclusionThe development of distributed acoustic sensingthrough the deployment of fibre optic cablerepresents the latest technological development inthe monitoring arena, enabling operators to “turnthe light on” down hole and allowing them to seewhat is happening across the wellbore in real-time.Producing a marinised version of the DAStechnology will enable OptaSense to extend theuse of the already proven onshore distributedacoustic sensing capabilities into the growingsubsea sector, providing operators with decision-ready data to optimise well performance from initialwell construction and throughout production.

With its multiple uses and producing significantthrough life value, the long-term costs effectivenessof the DAS system will be a game-changer foroperators both onshore and offshore in the oil andgas industry. �


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DAS technology provides anumber of benefits

including low-cost, on-demand acquisition through

permanent cableinstallation.



LLEISTRITZ SCREW PUMPS are globallyused in various application areas: eg, intank farms, in the power generationindustry or chemical and petrochemical

industry – to mention but a few. In the oil and gasindustry they are applied for handling crude oil,emulsions, produced water, multiphase fluids withhigh gas contents as well as intermediate and finalliquid products. Based on the worldwide largestproduct range of twin, triple, and even five screwpumps, Leistritz serves the oil and gas industryupstream, midstream and downstream. Today,pumps and systems made by the German expertsare charging the pulse-beat of the most modern oiland gas processes.

Multiphase pumps in Algeria“Leistritz entered the African market years ago,”said Lotfi Chouba, sales director for Africa atLeistritz. “Our pumps are used in numerous projectsall over the continent, for example in South Africa,Egypt, Libya, Sudan and Angola.” The most recentproject in this range was executed in an oil field inAlgeria. Since February 2014 five Leistritzmultiphase pumps are transferring crude oil and gaswith a gas volume fraction (GVF) of 97 per centfrom the wellheads and manifolds to centralisedtreatment facilities. After separating oil and gas, theoil is transferred over a distance of 700 km across

the Sahara to the Mediterranean. “Handling liquidsand gas at the wellhead of an oil field is a costlyprocedure,” Lotfi Chouba explained. Theconventional way is to separate the associated gasfrom the liquid fraction (hydrocarbons with water)and to convey them in separate pipelines to agathering point for a first separation process beforefeeding them into trunk pipelines. “Conventionalequipment like separators, compressors, liquidpumps, heaters or individual flow lines are replacedby economical multiphase pumps, which also boostthe well flow to a central treatment facility throughonly one pipeline,” described the pump expert.

Sophisticated technologyLeistritz multiphase pumps are used for handlinguntreated well flow with capacities of up to 5,000cu m/h and differential pressures of up to 100 bar.Multiphase pumps are based on twin screw pumptechnology. The self-priming pumps are of doublevolute design and hence, axially balanced. Thepossibility of speed variations by means of variablefrequency drives offers a wide operating range. Thepump, along with all extra equipment includingrequired controls and electric motors, is usually skid

mounted. The special Leistritz Liquid ManagementSystem guarantees the operation for GVF of up to100 per cent. “One very important aspect must bementioned: by using multiphase pumps flaring isvastly eliminated. So, by handling the entire wellflow within one machine we not only contribute to acleaner environment, but also to a more efficient useof our energy resources,” Lotfi Chouba concluded.

Kome oil field in ChadAnother example of an outstanding client solutionwas executed in 2003 in Chad. “15 Leistritzmultiphase equipment were installed in the Komeoil field. They successfully pump oil and gas, whichis transported through a 1,000 km long oil pipeline– starting in Chad, crossing Cameroon to theAtlantic border,” Lotfi Chouba illustrated. Thosepumps which are driven by 1,000 HP push up to1,000 cu m/h with a differential pressure of 56 bar.

“Africa represents a very promising market forus, since its prospects and potential for further oiland gas finds remain exceedingly positive,” LotfiChouba concluded. “We will continue to intensifyour presence on this continent. We are lookingforward to future projects here.” �


Cut-away of a high pressure multiphase pump.Image: Leistritz Pumpen.

Africa represents a verypromising market for us, sinceits prospects and potential for

further oil and gas findsremain exceedingly positive.

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As one of the leading screw pumps manufacturers German-based Leistritz Pumpen GmbHhas established itself as a reliable partner in the African oil & gas industry. The keys tosuccess: continuous improvement of its products and state-of-the-art engineering.

Multiphase screw pumpsfor African oil and gas


Multiphase pump skid on the multiphase pump test bed. Image: Leistritz Pumpen.

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AAFRICA HAS SEEN significant growth inits confirmed oil and gas reserves overthe past decade. The growth has beenespecially dramatic in eastern Africa,

where new natural gas reserves found off the coastsof Mozambique and Tanzania have increased thecontinent’s total proven reserves by more than 20per cent, according to a 2013 study byPricewaterhouseCoopers.

As a result, companies from both the upstreamand downstream sectors of the oil and gas industryhave been turning their attention towards Africa.But as projects begin to develop, companies findthemselves faced with the unique challenges ofdoing business in Africa.

These challenges typically fall into one of threegroups, called the “Big Gs”: geology, geography andgovernance. In Africa it is not uncommon for areaswith favourable geology to be located at greatdistances from suitable refineries or ports, andsome resource-rich areas sit within countries thatare governed by new or still evolving politicalregimes. This all presents challenges to companiesattempting to do business in the region, increasingthe risk that business operations could beinterrupted at some point.

Business interruption is unacceptable and costlyfor oil and gas companies. Companies looking toinvest in the continent and develop its newlydiscovered oil and gas reserves must rely on proventechnology to overcome its unique challenges. Thekey to unparalleled process efficiency and long-term profitability is world-class data management.

Building a sustainable infrastructure Oil and gas companies everywhere are concernedwith the same business and operational challenges,whether their operations are in developingcountries or in regions where infrastructure, politicsand geography are more easily navigated. Toovercome these challenges, successful companiesfocus on the following objectives:6 Delivering the right product: standardising

practices, meeting regulatory guidelines,ensuring customer satisfaction and monitoringquality throughout all aspects of production

6 Developing sustainable processes: reducingenergy usage and product waste, and utilisingautomation to improve operations and reduceoperating costs

6 Optimising profitability:making best use ofresources, harmonising processes and mitigatingrisks whilst continually identifying processimprovement opportunities

To achieve these objectives, companiesoperating at every stage of oil and gas productionrely on laboratory information managementsystems (LIMS) to feedback data into controlprocesses, enable rigorous sample testing anddeliver near real-time monitoring of quality.Analytical instruments in an oil and gas laboratorywill generate enormous amounts of data that mustbe analysed and then acted upon – decisions thatcan make the difference in achieving price andmargin objectives or profit for shareholders. TheLIMS enables the laboratory to be integrated intothe enterprise as data from sample testing isreceived, stored within a centralised database, anddistributed to other key systems that need theinformation generated by the lab. Having laboratorydata stored within the LIMS allows companies tocreate graphical dashboards that report on keybusiness drivers such as product quality orcompliance with regulations, giving management astraightforward real-time view of their company’slaboratory and quality operations.

LIMS are trusted worldwide by oil and gas

companies to manage laboratory and field data forachieving regulatory compliance and ensuringoperational efficiency. For oil and gas facilitiesworking in areas throughout Africa, especiallythose scaling up their infrastructures ormodernising existing systems, maximum control ofprocesses is essential.

A LIMS can simplify the process of expandingproduction into new markets by providing anextensible sampling and monitoring framework forall operations. This is especially true when acompany operates a LIMS-equipped facilityelsewhere in the world. The operational datagenerated by that facility can be used as atemplate for new locations in Africa, ensuringgreater efficiency and profitability from day one.

In addition to simplifying start-up operations,working from an existing LIMS-informed frameworkcan also help oil and gas companies more quicklyrecognise and respond to changes in their supplychain that could adversely affect operating costs.By storing supplier information in the LIMS,analysing the data related to operating costs andcomparing it to forecasts and other similaroperations, management can minimise the cost ofnew market entry, ensure cost containment andoptimise their supply chain.

Accurate records for auditingOil and gas companies operating in Africa are subjectto many familiar international regulations andstandards, yet the local rules and requirements can

The Pearl GTL plant at night.

Analytical instruments in anoil and gas laboratory will

generate enormous amountsof data that must be analysed

and then acted upon.

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The key to unparalleled process efficiency and long-term profitability is world-class datamanagement, as Colin Thurston from Thermo Fisher Scientific discusses.

African oil and gas development supported bygood data management



AvantGuard®

AvantGuard®

Hempel introduces AvantGuard®, a brand newinnovative anti-corrosion technology, based onactivated zinc and locked into our new range ofhigh performance protective coatings.

AvantGuard®

of corrosion and offers superior protection.This increased durability has been proven inextensive tests against standard Zinc primers.

with reduced rust creepand superior corrosion protection

with improvedmechanical strength

with greater workingtolerances in different climatic conditions andwith high DFT’s. Less repair work needed.


vary by region. A LIMS helps companies manageboth their internal and external compliancemeasures. By collecting all data from sample testing,environmental monitoring, materials suppliers andcustomer requirements in a centralised database, theLIMS gives oil and gas companies the ability toquickly and easily capture and manage relevant data.The data can then be provided to any entity thatneeds the data, from regulatory authorities tocountry-specific licensing bodies or customers thatwant assurance of quality output.

The lab as information hubA LIMS can be as important to communicationswith internal stakeholders as it is with external

governing authorities. As a central information hub,a LIMS provides staff members with a completeview of quality performance and helps themidentify areas for improvement.

Internal teams that can benefit from LIMSdata include:6 Operations, which can get an end-to-end view of

the plant’s supply chain;6 Engineering, which can use the LIMS for near

real-time equipment monitoring;6 Technology personnel, who can remotely

perform efficiency checks and troubleshootmalfunctioning instruments;

6 Environmental services, which can access acentralised environmental monitoring dashboard;

6 Support staff, who can improve customer serviceby tracking products from extraction toshipment; and

6 Finance, which can use shipment data toaccelerate their invoicing processes.

ConclusionThere is much to gain for oil and gas com paniesthat invest in new resources throughout Africa, butthey must exercise discipline from the start. Thisdiscipline starts with the right equipment andprocesses and a proven approach to datamanagement. LIMS are indeed proven, from theworld’s largest gas-to-liquids facility in Qatar to amassive integrated oil and gas project in Russia’sFar East. As companies look to make investments inAfrica, having real-time access to laboratory testingdata, and ensuring that it’s feeding accurate androutine reporting into the oil and gas facility isperhaps the first investment they should make.Investing in LIMS from the start will pay off in moreefficient and predictable operations and higherprofits down the road. �


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Mansoor Al-Shamri, laboratory manager, and Ajith Kumar, senior business analyst, in the Pearl GTL laboratory

Working from an existingLIMS-informed framework

can help oil and gascompanies more quicklyrecognise and respond to

changes in their supply chain.


ESTABLISHED BY SHELL and Qatar Petroleumin 2006, Pearl GTL is the largest gas-to-liquids facility in the world. The facility,which became fully operational in 2012,processes 1.6 bcf of wellhead gas every day.This activity is a major part of the Qatarieconomy: LNG makes up 43 per cent of thecountry’s total exports.The enormous scale of Pearl GTL makes it ahighly complex operation: its quality controlsystem alone receives a constant stream ofmore than 34,000 measurements, includingwell content, emissions, volume, equipmentcondition and other indicators critical to theplant’s operation. Organising those data andmaking them easily available and usable forinternal and external groups is key to aplant’s continued success.To maximise the value of Pearl GTL’s data,Shell uses Thermo Scientific SampleManager LIMS to standardise datamanagement across its entire facility. Allproduction systems and laboratoryequipment route data directly into thecentralised LIMS, allowing plant

management, engineering staff and externalauditors to easily access the informationthey need.At Pearl GTL, the LIMS integrates bi-directionally with all other facility software,including OTTER, a process historian (PI); oilmovement and batch tracking systems;laboratory instruments and even softwarerunning on field data collection instruments.This integration eliminates the need formanual data transfer, reducing human errorand allowing staff to make more rapid andpragmatic decisions.All of these efficiencies translate directlyinto less wasted time and increased profits.One clear example is reduced loading delays.Because the LIMS is integrated with the oilmovement system, test results issued fromthe lab can be automatically transmitted topanel operators. This capability has allowedthe facility to increase the efficiency of itsloading and shipping operations anddramatically reduce lay time. Since thefacility opened, it has never incurred ademurrage charge.

Pearl GTL also uses its LIMS to simplifycompliance with local regulations andinternational standards, including ISO 17025.By centralising all facility data, the LIMSguarantees that compliance can be proven inthe case of an internal or external audit.Finally, the LIMS helps Shell ensure workersafety at Pearl GTL. In addition to theirdiagnostic value, data concerningequipment condition, well content andother issues can also help managementmonitor potential safety concerns. Thesedata, combined with Shell’s dedication toworker safety, allowed the facility’s staff tohit 77mn hours worked without a singlelost-time injury in 2010.Pearl GTL’s LIMS experience proves that datamanagement has a critical role to play inissues of regulatory compliance, productionefficiency and worker safety for large scaleoil and gas development. For oil and gasdevelopment projects in African markets,where these issues have the potential to bemore complex, the value added by a LIMScan be even greater.

Case Study: Shell’s Pearl GTL Facility


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FINAL TOUCHES HAVE been made to theDamen Walk 2 Work vessel, a completely newand innovative design for the offshore supportvessel market. Damen also decided to startbuilding the vessel on speculation; this ismarked with the start of the basic andconsequently detailed engineering of thevessel. The vessel will support andaccommodate turbine maintenance crews atsea. Not only providing the vessel on-site workfacilities and accommodation for voyages of up

to one month, the vessel also comes with ahelicopter platform, daughter crafts and has an80 per cent weather operability in the centralNorth Sea area.Since the ‘E3’ are becoming more and moreimportant these days, Damen started about ayear ago with the search for a way to createand design a vessel which is Environmentally-friendly, Economic viable, and Efficient inoperation (E3). The key design criteria for thevessel were the result of extensive discussions

Damen held with the industry. Staff retentionwas a growing issue in the offshore market.Therefore a fourth requirement was given:comfort for crew and its passengers. The vessel is a monohull with bridge locatedamidships. It has a length of 90m and a beamof 20m. The Damen WSV will feature 500 sq mof deck space, approximately 400sq m internalstorage space, a helicopter platform and amotion and heave compensating crane andgangway. Its shallow draft optimises comfort,while also conferring significant power savings.The effects of this new and innovative designare: greater turbine availability, less lostproduction and less direct O&M costs against ahigher profitability of the wind farm. The optimal comfort for crew and passengers isdetermined by designing the right hull formand the right positioning of theaccommodation. Damen has been able toreduce vertical and horizontal accelerationssignificantly. A significant reduction ofaccelerations has been achieved throughoutthe vessel by up to 30 per cent in theaccommodation. This achievement greatlyimproves the level of comfort, safety andworkability on board. Adding to the level of comfort, extensiveergonomic studies have been carried outresulting in crew and turbine technician cabindimensions of well above the minimum setrequirements by law. Of course the vessel hasa fitness centre and internet/movie services.By extensively analysing the flow of personnelwith all their different tasks on board the vesseland the flow of spare parts and other equipment,Damen was able to map the public spaces forefficient workflows and storage. Having anoptimised design based on the right oceanconditions results in the fact that expensivecompensation systems are not needed. Damen also developed a fuel consumption toolin which total fuel consumption of the vessel invarious operational conditions in a specific areacan be calculated. This tool gives a goodindication of what can be expected on a yearlybasis given a certain operational profile.The transfer of maintenance personnel andequipment is one of the performancedetermining functions of the entire ship. Beingable to continue the work flow in the prevailingwind conditions and waves, forms the biggestchallenge. The design questions are based onthe selections of the components like theaccess systems and, the choice of the DPsystem, the positioning of these systems onboard and a smart integration. A characteristicof these systems for crew and cargo transfer onoffshore vessels is that they operateindependently of the control systems for thedynamic positioning of the vessel. This innovation, the TPS, aims to increaseemployability by design integration and sharesystem integration at the heart of the design.

Damen starts building the Walk 2 Work vessel on speculation



GE HAS LAUNCHED its Deepwater Vertical Xmas Tree (DVXT) at its new,interactive Technology Solutions Center in Stavanger, in conjunction with theOffshore Northern Seas (ONS) 2014 conference and exhibition.

The latest addition to GE Oil & Gas’ comprehensive range of subseaproducts is rated for depths of up to 3,000m and expands the company’sportfolio of pre-engineered, pre-qualified modular systems, designed to enableproducts to be brought to market faster.

“There is a rising sense in the oil and gas industry that many of thechallenges faced today can be addressed by leveraging standardised productsand solutions in order to simplify processes and reduce lead times,” said ChrisPhebus, engineering executive for Subsea Systems at GE Oil & Gas. “By offeringour DVXT as a standard product, we can not only improve cycle times, but alsoensure the highest levels of quality, safety and reliability for our products.”

Deployed with the company’s next-generation remote electronicscanister—the SemStar5-R—the DVXT incorporates the latest incommunication technology and is designed with the objectives of highersubsea reliability, extended service life and improved environmentalmonitoring. Already a market leader with communications out to 220 km, atdepths of up to 3,000m, the ModPod subsea control module is designed tocomplement the DVXT’s modular layout and enables an even more flexiblecommunications network—a key ingredient for future field expansion andenhanced access to remote wells.

Mike Wenham, Subsea Trees senior application engineer, GE Oil & Gas,said: “The ocean’s depths are the key to meeting the rising global demand forenergy in this age of complex fuel. As an industry, we need to make sure westay focused on both the future and the now, working to address thechallenges of deepwater development.”

TRELLEBORG’S OFFSHORE OPERATION has launched an innovative new vortexinduced vibration (VIV) system. The high performance T-Strake features aunique modular design enabling more efficient transportation and installation. Jonathan Fox, senior product development engineer for Trelleborg’s offshoreoperation, said: “Pipelines unsupported over free spans, such as steelcatenary risers and rigid steel flowlines, are prone to VIV fatigue, which canlead to serious issues such as pipe girth weld failure or premature pipemalfunction. To combat this, the T-Strake comprises interlocking moldings,with three-start helical strakes.”Trelleborg utilised its vast offshore and VIV knowledge in the design of the T-Strake and carried out extensive computational analysis and physical testing.The system has a high temperature resistance, is capable of withstandinginstallation loads and is available in a wide choice of colours.Each section of the system has been designed as a single component, ensuringit is quick and easy to pre-install onshore or install offshore. The designenables the system to be stacked during shipping, ensuring more efficient andcost effective transportation. Trelleborg’s innovative manufacturing processalso means that the T-Strake can be produced up to six times faster thansystems manufactured using traditional techniques, ensuring short order times.Austin Harbison, new product development manager, for Trelleborg’s offshoreoperation, added: “The T-Strake was developed in response to market demandfor a high quality, cost-effective VIV suppression solution. We utilised aninnovative manufacturing technique enabling rapid manufacture, reducedtransportation costs and quick installation.“Working with polymers across a number of technologies and industries, wewere able to use our insight and innovation to improve VIV suppressionperformance using best-value engineered solutions.”

New subsea vibration suppression system

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ZJ10D/600DB IS A special drilling rig independently developed andmanufactured by Kerui Petroleum Equipment Co Ltd for training. Itwas officially put on the market recently. Designed to serveindividual drillers and operation teams, the rig is used to train andimprove their skills and capabilities in oilfield drilling operations.This rig, integrated with intelligence and automation as well ashaving a compact design, is only 37m high once fully assembled. Itsmodular design and integrated transport mode makes the rig saferand more effective in transportation operations. Due to its scientificdesign, the rig can work normally in conditions with a temperaturerange from -45° to 45°. In addition to the advantages mentionedabove, the rig also has the advanced user simulation trainingsystem and 3D simulation installation system, which can providethe users with good experience and innovative ideas. Since itpossesses more application values than other products in thepetroleum industry, the rig can meet all the users’ demands.Kerui Petroleum has been deeply rooted in the African market formany years, and the company has always devoted itself to research,development and manufacture of high-end petroleum equipment,oilfield integrated technological engineering services and oilfieldEPC turnkey contracting. By means of advanced technology andreliable quality, Kerui Petroleum continues to solve difficultproblems encountered by African clients in oil & gas exploration andtherefore bring about more efficient production.

ARKeX, THE GEOPHYSICAL services provider, has added a new DeHavilland Twin Otter aircraft to its fleet of Full Tensor GravityGradiometry (FTG) survey aircraft. Now ARKeX’s entire fleet is made upof twin engine aircraft.“The delivery of this aircraft is important to ARKeX and our clients for anumber of reasons,” said Rich Foster-Turner, chief operating officer atARKeX. “Firstly a twin engine aircraft is inherently safer for low levelsurvey operations and across transition zones. Secondly this particularaircraft has been upgraded to give greater range and endurance and this,coupled with its short take-off and landing (STOL) capabilities, is of greatbenefit to our clients who operate in remote frontier areas”.The Twin Otter is a versatile aircraft and ideally suited to surveyoperations. In addition to the FTG, each aircraft is also equipped with ascalar gravity sensor (to add signal power at longer spatialwavelengths), a stinger mounted magnetometer and LiDAR system (toprovide a digital terrain model).ARKeX’s FTG survey data is used by oil, gas and mineral exploration

companies to provide a high resolution image of subsurface geology.The surveys measure minute variations in the Earth's gravitational fieldto help build a picture of geological anomalies that can be used to moreaccurately target oil, gas and mineral deposits. FTG data can be usedalongside seismic data to provide an improved interpretation and also asa stand-alone service that is often used in frontier areas to effectivelyplace future seismic programmes.

ARKeX upgrade FTG aircraft fleet

CATERPILLAR OIL & GAS has launched the Cat offshore power generationmodule, a new modular solution for FPSO and offshore platform main power.This module is a turn-key EPC scope, scalable, single lift, modular powerplant product that includes full integration into the FPSO or platformstructural design. This uniquely attractive product leverages the broad arrayof proven Caterpillar engine technology with the vessel design expertise ofDeltamarin, a Finnish naval architecture and engineering company who wasintegral to the development of the Cat offshore power generation module.

"The offshore powergeneration module wasengineered to serve as aflexible solution fordiverse offshore customerswith varying operational,fuel and power needs,”Antti Ekqvist, CaterpillarO&G global offshorebusiness developmentleader noted. “Beyondoffering provenperformance in themodule outputs, themodule was carefully designed with Deltamarin for the seamless integrationinto vessels and platforms.”

The Cat power generation solution was designed specifically to meet theneeds of FPSO and fixed production platform main power applications incases where a gas turbine is not ideal. By utilising experience-based,operational modeling Caterpillar is prepared to ensure the optimalconfiguration is selected. Available from 4 to 17.3 eMW per module, the Catoffshore power generation module is designed to run on liquid, diesel, crudeand heavy fuel oil, gas or in dual fuel mode and meets current and futureemission regulations to maximise flexibility and reduce operating costs.

The module is fully tested and certified to be easily integrated in thevessel systems. The modular layout is easily expanded to provide power forfuture upgrades and is a fully self-contained unit which provides a single liftcapability. The integrated design is complemented with flexiblemanufacturing to enable the offshore power generation module to beassembled anywhere in the world, providing customers with the addedadvantage of meeting any local content regulations and on-time delivery forproject requirements. Additionally, the power module is equipped withremote monitoring to enable it to be managed from the vessels main controlroom or an onshore location.

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Caterpillar launches new modular solutionKerui Petroleum: Advanced training rig


ARKeX De Havilland Canada Twin Otter.


18-20 NOVEMBER 2014 I YENAGOA I BAYELSA STATE

FORUM & SITE VISIT

2014 Distinguished Speakers Include:


SEISMIC EQUIPMENT MANUFACTURER, Sercel has launched QuietSea, its newpassive acoustic monitoring (PAM) system designed to detect the presence ofmarine mammals during seismic operations. “Totally different from othercommercially available PAM systems, QuietSea is set to revolutionise PAM withinthe seismic industry”, the company says. Unlike other separate antenna PAMsystems, QuietSea is seamlessly integrated as an add-on within the SercelSentinel seismic streamer (Sentinel, Sentinel RD and Sentinel MS). This allows forgreatly enhanced marine mammal detection capabilities in a wide frequencylistening range that covers a large variety of vocalising cetacean species. QuietSeaalso benefits from synergies with Sercel’s Seal 428 marine seismic recorder andSeaPro Nav navigation system to accurately locate marine mammal positions.

While enabling marine seismic contractors to fully comply with increasinglywidespread marine mammal monitoring regulations worldwide, QuietSea alsohelps to optimise the productivity of marine seismic operations. Unlike other

industry PAM systems which carry the risk of their separate array becomingtangled at sea and causing downtime, QuietSea’s integrated architecture allowsfor easy and safe deployment, guaranteeing reliable operations.

QuietSea is a valuable tool for complementing the work of marine mammalobservers (MMO) during seismic operations. Its patented advanced and automatedmammal detection and localisation algorithms provide an additional, objectivesource of information for decision-making, particularly during night-time operations.

Pascal Rouiller, Sercel CEO, said: “With the launch of QuietSea, Sercelcontinues to demonstrate its commitment to helping its clients conductenvironmentally responsible marine seismic operations. QuietSea offers seismiccontractors and oil companies a high-performance, objective and reliable systemfor monitoring marine animals and implementing mitigation measures thatminimise the potential impact of man-made sound while optimising seismicproductivity and costs.”

CANARY LLC IS one of the US’s largest independently held oilfield servicecompanies and one of the largest privately-owned oilfield service companies inNorth America. Canary provides comprehensive oilfield drilling and productionservices in every major shale play, including Bakken, Niobrara, Utica and thePermian Basin. Canary, which was known as Frontier until 2013, was officiallyfounded in 1984. However, rapid expansion didn’t begin until 2009, when CEODan Eberhart & COO Don Pfister purchased a small wellhead company in NorthDakota—located in the heart of the Bakken shale play. Canary has recentlyexperienced rapid growth – primarily driven through acquisitions – and offers a

wide range of services, though the company is best known for its customisedwellheads that are used by companies of all sizes. The company also includes astrong API manufacturing arm with the goal of filling custom service needs forclients in a quick and innovative manner.

The company is now the sixth-largest privately held oilfield services companyand the largest independent wellhead service provider in the United States. Thecompany was recently named in the 2014 Inc 5000 list as one of the 5,000fastest-growing private companies in the US. It is also the second fastest-growingoilfield services company on the list, and within the top 50 energy companies.

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Canary - comprehensive oilfield drilling and production services for shale

Marine mammal monitoring system



AA NY ORGANISATION OPERATING operating offshore will tell youthere are two critical factors at the heart of everything they do. Likeany business, the first is efficiency; are operations effective enough

to drive down costs, minimise resource investment and maximise output,increasing competitive positioning? The second; are operations, personnel andactivities safe? Are they operating with maximum efficiency in the safestpossible way? One organisation that is committed to driving efficiency and safety across

the industry is the world leading provider of well test support services, ScanTechOffshore. Having recently launched SafeDeploy, a revolutionary system for thedeployment of submersible pumps for rig cooling applications, it’s not difficultto understand why they believe efficiency and safety go hand-in-hand; ifoffshore safety fails or is ineffective, maximum efficiency can never be realised. Historically, rigs and operators have been forced to use a high-risk method

for deploying temporary submersible pumps, utilising a hang-off frame whichsets the submersible pump and delivery hose in place. Not only is it a high-risk process, where personnel are operating under a suspended load, it’s ahugely time- and labour- intensive method that takes a whole team ofoperators up to 12 hours to execute. Knowing there was the need forincreased safety and efficiency for deploying these pumps offshore, adedicated team at ScanTech Offshore set about to change the archaicapproach and break new ground in deployment. Enter SafeDeploy. An engineered, self-deploying solution that has been

identified as the safest, most efficient method for deploying submersible pumpsfrom the deck of a rig, vessel or platform to the sea, it removes the need for rigcrew or rig crane assistance, saving valuable time and reducing exposure tomultiple personnel and manual handling. SafeDeploy’s typical deployment orretrieval of a sub pump is clocked at a rate of one metre per minute.

Totally independent systemA totally independent system, the SafeDeploy requires no rig electrical powerand with a minimal footprint the size of a standard 10x8ft container, thepracticalities of having the unit on a rig are easy to manage. To furthermaximise efficiency for rig operators, the solution is designed to be able toretrieve a submersible pump fast and in all weather conditions. Until now, thishasn’t been possible in bad sea states or high winds due to enforced rig craneshut downs when weather exceeds Safe Working Limits. Staying fullyoperational helps achieve maximum efficiency.

Safety and efficiency hand-in-handScanTech Offshore’s project manager, Barry Craig, has been involved in theSafeDeploy development from the start. He commented: “Safety and efficiencygo hand in hand like any great partnership; without one, it’s very hard toachieve the other. At ScanTech Offshore we’re committed to creating solutionswhich challenge existing methodology and create better outcomes for ourclients and the industry as a whole. Our culture is to continually improve andinnovate to become the highest quality and lowest cost provider of equipment.That continual investment and focus into R&D to deliver increased safety and

efficiency is what makes us World leaders in the support of well testing.“With SafeDeploy, we’ve been able to further realise just that.

Advancements in technology have enabled us to create a new solution to amuch recognised industry issue. This step change in safety and lower overallcost for rig and operating companies makes the utilisation of this system ano brainer.” Following a rigorous 18 month development cycle SafeDeploy’s safety and

efficiency has been tested in live trails in Holland and is scheduled to go out forlong term projects in Spring 2015. As first to the market with such an offering, it is expected many competitors

will invest in developing similar sub pump deployment solutions in order tocompete with the safety and efficiency standards SafeDeploy can deliver. It’slong been recognised across the industry that there is a need to create a newdeployment methodology and thanks to ScanTech’s innovation that shift isalready happening. It’s still early days in ScanTech Offshore’s global roll outstrategy for SafeDeploy but with interest from some big name players, theindustry’s reaction to its innovation is suggestive of the likely approach toadopting such technology in safely and efficiently deploying and retrievingsubmersible pumps offshore. �

SafeDeploy, a revolutionary system for the deployment of submersible pumps for rigcooling applications.

SafeDeploy removes the need for rig crewor rig crane assistance.

Tech

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yScanTech Offshore is committed to driving efficiency and safety across the industry.

Submersibleefficiency

Oil Review Africa Issue Five 201488 www.oilreviewafrica.com

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SUBSEA PROCESSING IS a developingbranch of oil and gas production that hasbeen growing globally over the last twodecades. Traditionally, subsea wells wouldbe tied directly back to topside or land-based processing facilities, but by placingmore processing equipment subsea, closerto the wells, significant cost and productionadvantages can be made. If a multiphase well stream is boosted

using a multiphase pump, the reservoirback pressure is lowered and the final yieldfrom the field increased. This boosted wellstream can be tied into a distant onshoreprocessing facility previously unreachable without the subsea boosting. With the use of a subsea separation system, instead of bringing produced water to the surface for

treatment, hot produced water can easily be separated from the product and immediately re-injected atsource. This significantly reduces the OPEX of running an ageing field. By using subsea water injection pumps, raw seawater injection can be done without the need for long

risers and topside water treatment facilities, reducing the CAPEX of any project. To meet all of these applications, Sulzer, along with FMC Technologies, have fully qualified a 3.2MW,

5,000psi, 6,000rpm pump/motor system. At the heart of the machine is a high speed permanent magnet synchronous motor, faster than any other

currently available. This is coupled with a fast acting mechanical barrier fluid system to reduce systemcomplexity and umbilical size. All pump options have field proven Sulzer hydraulics. The multiphase pumpdesign has pressure balancing technology to allow pressure rise potential in excess of 100 bar. These allcombine to give game changing solutions to the subsea processing market.

WOOD GROUP INTETECH (WG Intetech), a worldleader in well integrity management, hasdeveloped a new software platform for analysingglobal well component reliability data. Called iQRA,the tool provides operators with valuable insight tomake better, more informed decisions about theselection of well and oilfield components -enhancing asset performance and safety.Responding to the industry demands to have

ready access to a broad set of validatedcomponent reliability data, WG Intetech hasdesigned a solution to harness this information ina single, secure location.Based on the ISO-14224 standard, iQRA

supports critical decision making by giving usersthe ability to benchmark their reliability figuresagainst a global dataset and extract safety criticalelement (SCE) failure statistics and mean-time-to-failure (MTF) data. iQRA is a feature-rich platformthat comes with quality-assured, trustworthy data.The cloud-based tool allows users to constructtheir own queries and generate informationinstantly, from anywhere.

Wood Group Intetechestablishes global wellperformance database

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Project DatabankCompiled by Data Media Systems

Project Facility Budget ($ US) Country StatusFCTA - Kubwa Satellite Town ( Districts 4&5 ) Water Storage Tanks 119000000 Nigeria Construction

FCTA - Karshi Satellite Town ( Districts 1&2 ) Desalination 130000000 Nigeria Construction

FCTA - Bwari Satellite Town ( Districts 1&2 ) Roads 82000000 Nigeria Construction

NEPA - Zungeru Hydro-Electric Power Plant Hydro Power Station 1300000 Nigeria Construction

FCTA - karshi Apo Road Roads 20000000 Nigeria Construction

Owowo Oil Field - OPL 223 Oil Field Development 250000000 Nigeria Construction

Federal Ministry of Works - Lessel-Wajir road Roads 6000000 Nigeria Construction

TOTAL - OML 99 Ikike Field Offshore Platform 400000000 Nigeria FEED

Njaba Oil Field - OML 124 Oil Field Development 150000000 Nigeria Construction

FLEX LNG - LNGP1 (Floating LNG Production) Floating Production 500000000 Nigeria Construction

Storage and Offloading (FPSO)

NERC - Yankari Power Plant Gas Fired Power Station 200000000 Nigeria Construction

Federal Ministry of Transport - Second Niger Bridge Bridge 30000000 Nigeria Construction

TOTAL - OML 58 Upgrade Phase 1 Oil & Gas Field 1000000000 Nigeria Construction

AR2 - Jabi Lake Mall Malls/Retail Outlets 130000000 Nigeria Construction

Cross River State - Calabar Hospital (105 beds) Medical/Health Facilities/Spa 37000000 Nigeria Construction

Stubb Creek Field Oil Field Development 200000000 Nigeria Construction

FCTA - A121 East-West highway: Section V Roads 1007000000 Nigeria Construction

Lagos State Government - Lekki Epe International Airport Airport 450000000 Nigeria EPC ITB

FMH - Ekiti State Teaching Hospital Diagnostic Centre PPP Medical/Health Facilities/Spa 300000000 Nigeria EPC ITB

Ofon Field Development Phase 2 Offshore Platform 500000000 Nigeria Construction

Akwa Ibom state government - Ibaka Deep Sea Port Port 2000000000 Nigeria Construction

NEPA - Kashimbila Hydropower Station Hydro Power Station 374000000 Nigeria Construction

OYO Field Development Oil Field Development 1000000000 Nigeria Construction

MART RESOURCES - Umusadege Field Development Oil & Gas Field 500000000 Nigeria Construction

YFP - Aje Blk OML 113 Offshore Platform 10000000 Nigeria Construction

Ebok Development Oil Field Development 450000000 Nigeria Construction

Okwok oil field - OML 67 Oil Field Development 400000000 Nigeria Construction

FCTA - Utako Hospital (220 Bed) Medical/Health Facilities/Spa 25000000 Nigeria Construction

Southern Swamp Associated Gas Solution Project (SSAGS ) Gas Production 1000000000 Nigeria Construction

NPA - Lekki Deep Sea Port Terminal 1350000000 Nigeria Construction

Shell - Trans-Nigeria Pipeline Loop line Project 84500000 Nigeria Construction

Federal Ministry of Health - Abuja Medical City Medical/Health Facilities/Spa 650000000 Nigeria Construction

AFREN - OML 115 Development Oil & Gas Field 150000000 Nigeria Construction

Ministry Of Power- Mambilla Hydropower Station Power Grid 3200000000 Nigeria Construction

Okoro and Setu Fields Development Oil Field Development 200000000 Nigeria Construction

AFREN - OPL 310 Development Oil & Gas Field 200000000 Nigeria Construction

TOTAL - Egina Field Development Oil Field Development 3100000000 Nigeria Construction

FCTA - Nigeria Cultural Centre and Millenium Tower Mixed-Use Development 550000000 Nigeria Construction

Shell - Bonga South West Project Mining 600000000 Nigeria EPC ITBFCDA - Completion of B6, B12 and Circle Roads in the Bridge 402000000 Nigeria ConstructionCentral Area of Abuja

FCTA - Galuwyi-Shere Road: Phase1 Roads 112000000 Nigeria Construction

FCTA - Karshi-Ara Road Roads 24000000 Nigeria Construction

FCTA - Rehabilitation and Expansion of Airport Expressway: Phase 2 Airport 307000000 Nigeria Construction

FCTA - Rehabilitation and Expansion of Airport Expressway: Phase 1 Airport 370000000 Nigeria Construction

FCTA - Apo Estate Layout: Infrastructure Roads 31000000 Nigeria Construction

NNPC - Olokola LNG (OKLNG) Plant Liquefied Natural Gas (LNG) 10000000000 Nigeria EPC ITB

CHEVRON TEXACO - Agbami Oil Field Development Oil Field 5000000000 Nigeria Construction

BRASS LNG - Brass River LNG Plant Liquefied Natural Gas (LNG) 15000000000 Nigeria EPC ITB

NNPC - Qua Iboe Power Plant Power Plant 20000000 Nigeria Construction

Federal Ministry of Works - Vandeikya-Obudu Road Roads 18200000 Nigeria Construction

OIL, GAS AND PETROCHEMICAL PROJECTS

1 8/12/12 4:14 PMS22�ORA�5�2014�-�DMS�&�Innovations_Layout�1��20/10/2014��10:20��Page�92

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SOUTH AFRICA-BASED Nautic Africa and UniqueHydra have recently been awarded a contract todevelop, construct and deliver a davit deployeddiving daughter craft for an FSPO off the WestAfrican coast. The contract sees Nautic Africastep towards its goal of providing purpose-built,tailor-made solutions to the West Africanoffshore industry.

Unique Hydra is well-known for providing worldclass commercial diving services and systems andwhen they were approached to provide a divingsolution they turned to Nautic Africa to assist themin developing and constructing a vessel purpose-built for African conditions.

The vessel will be launched from an offshoresupport vessel (OSV) that serves the needs of theFPSO on a daily basis. It will be used to inspectthe hull and carry out UWILD (underwaterinspection in lieu of drydocking) services with itsdiving systems and cameras.

Nautic Africa’s CEO, James Fisher said that theorder has given Nautic Africa the chance todemonstrate the level of technical innovation thatis at the heart of the company’s business strategy.

The vessel will feature single point hoistingand will have a twin diesel water jet propulsion

system. At her maximum speed of 20 knots thevessel will be able to cover a range of 90 nauticalmiles. The hull of the vessel will be constructed indurable aluminium while the deckhouse will bemade of composite sandwich construction. A foamcollar fender will offer protection while alongsidethe FSPO.

A Unique Hydra Nitrox dive control system willenable, simultaneously, three diver operations. Thevessel will be able to accommodate one coxswainand one diver supervisor in addition to two diverteams of three persons. Each diver team willconsist of two main divers and one standby diver.The teams will take turns to perform over a six toeight hour time period.

This is the second collaboration with UniqueHydra in delivering such solutions for the African

market – the first collaboration was for 14m DSVdelivery to an Angolan client. With minimalchanges to the application and overall design, thedive support vessel can be used for patrol, security,policing, sea rescues and for fisheries as well aswithin the oil and gas industry.

The versatility of the vessel is backed up by anin-depth understanding of the African offshoreindustry, Mr Fisher explained, “We’ve been closelyinvolved in the African marine market for the pastsix years and during this time have developed athorough understanding of the African offshoreindustry. We understand the dynamics andchallenges of the industry and have used thisknowledge to support operations in the oil and gassector and provide customised solutions that meetthe needs of our ever-growing client base.”

Mr Fisher pointed out that this project servesto demonstrate that the skills necessary toservice the African offshore industry can be foundwithin Africa and this, he said, bodes well for thefuture. “We are extremely proud to have beenawarded this contract and see great potential forfuture collaboration with Unique Hydra and otherspecialist companies in delivering solutions forthe African market.”

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ABS ......................................................11Africa Offshore Rentals ................73ARKeX Ltd. ........................................47Baker Hughes ..................................96Camac Energy Incorporation ....17Canary LLC........................................52CMP Products ..................................81Consolidated Contractors ..........37

Co. S.A.L.Container World Pty Limited ....21Cudd Pressure Control, Inc. ........79CWC (Mozambique Gas........85, 86

Summit 2014) / (PNC 2014)DMG World Media ........................91

Dubai Ltd (ADIPEC 2014)DMS ....................................................92Dolphin Geophysical ....................74Emerson Process Management ..7Emval Nigeria Limited..................35ESAB Africa Welding & ................67

Cutting PtyExalo Drilling SA ............................80General Industrial ..................58, 61

Supplies & Services (GISS)Global Pacific and Partners ......82

(21st African Oil Week 2014)Hempel Czech Republic SRO ....77HOT Engineering GmbH................6International Exhibition ..............87

Services SRL (SAOGE 2014)Isisan Isi San. VE Tic. A.S. ..............63Kerui Group ......................................49Leistritz Pumpen GmbH ..............71Mafuta Energy Services Ltd........83

Magnetrol International N.V. ....51Marelli Motori SPA ........................39MSAR ..................................................12Nigerian National ..........................13

Petroleum Corporation (NNPC)NipeX (Nigerian ............................27

Petroleum Exchange)Oando PLC ..........................................5Omega Maritime & Energy Ltd ..29PEM Offshore Ltd ..........................33Pennwell Corporation ................89

(Offshore West Africa 2014)Petroleum Agency SA ..................19Portwest Ltd ....................................45Russian Satellite ............................23

Communications Company Sea Trucks Netherlands ..............65

Coop UASGS Inspection Services ............25

Nigeria LtdShoreline Natural Resources......15Sonils LDA ........................................95South Atlantic Petroleum..............2Spina Group Srl ..............................53STAHL CraneSystems GmbH......43Taleveras Services UK Limited ....19Tilone Subsea Limited..................59Tolmann Allied Services ............57

Company LimitedTotal Nigeria ......................................9Well Fluid Services ........................55Whassan Nigeria Limited ............31World Petroleum ..........................11

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