Offshore supplement 2017

SPECIAL SUPPLEMENT 2017

OFFSHORE

SUPPORTING THE AFRICAN OIL AND GAS SECTORS OUTLOOK: Roundup of predictions for offshore sector

www.maritimesa.co.za

E&P: Roundup of Exploration and Production news

EMPLOYMENT: Employment and localisation

NEWS: Company news and announcements

Subtech, through James Fisher Offshore was contracted to undertake a cable, umbilical and flexible pipeline installation project for Saipem in Saudi Arabia. The project commenced in August 2017, mobilising in Dubai Maritime City (DMC) Dubai, UAE and is due for completion by year end.

Contents 02

ANALYSIS & OPINION: Î The future of deepwater drilling for oil and gas Î West Africa ripe with opportunities

04

NEWS FROM THE CONTINENT Î Supporting Africa’s first FLNG project in Mozambique Î New service centre in Ghana Î Sampling off Egypt Î Corporate restructure for Africa-focused O&G company Î $3 billion FPSO destined for Nigeria Î Africa Energy to acquire additional interest off South Africa Î Remotely operated monitoring system for Angolan FPSO

08

EMPLOYMENT AND TRAINING: Î Maintaining and developing relevant skills for oil and gas Î Decrease in OPITO accredited providers in Africa

14

INFOGRAPHIC: Î Proven crude reserves Î OTC African exhibitors (2015, 2016 & 2017) Î Breakeven costs Î Localisation Î Rig count

16

EVENTS: Î Oil and Gas event calendar

ADVERTISERS IN THIS SUPPLEMENT Î Graco Î Hytec Î Novamarine Î Offshore Maritime Services Î Radio Holland Î Resolve Î Seascape Î SABT Î Subtech Î Unicorn Training

7 5 13 IBC 10 OBC 3, 11 9 OFC 10

COVER STORY

aran involves the installation of a 15k subsea cable approx 1 5km, that connects from aran TP-1 pla orm to aran 52 60 pla orm

Pipeline installation uses South African expertise

Arbi involves the installation of an umbilical approx 5 2km, that connects from Arbi TP-1 pla orm to Arbi 20 23 pla orm

Subtech, through ames Fisher Offshore, has been engaged with a cable, umbilical and exible pipeline installation project for Saipem in Saudi Arabia since August this year The project is due to be completed by the end of 2017 Once mobilised in Dubai, the Bourbon Enterprise sailed to Saudi Arabia to commence operations The project includes the installation of cables, umbilicals and exibles, in a number of oil fields offshore Saudi Arabia aran, Arbi, Abu Safah and Marjan AbuSafa: Î A new 12 exible pipeline from ABSF 2, & ABSF 6, with tie-in’s at ABSF Flank 6 and ABSF Flank 2 respectively Î Two off Submarine composite cables from ABSF TP 2 to ABSF 2, and ABSF 6 Karan & Arbi:

There is also additional scope of work in the Marjan field, consisting of the re-routing of a 115 vA cable as well as four other new cables to be installed The equipment on the Bourbon Enterprise includes a 50 ton Reel Hub Drive system and 60 ton 3-track tensioner all the required vessel stern deployment chute’s, goose-necks, pla orm pull-in frames and quadrants where designed in-house by our engineers and fabricated in the DMC yard in Dubai With all of the cable installation equipment being owned by Subtech it gives us a competitive advantage in a tough market A RO is used for survey and touch-down monitoring throughout the project and is specialist equipment Subtech will be reviewing to own as part of offering a complete package to our clients, they note

ANALYSIS AND OPINION

The future of deepwater drilling for oil and gas According to DNV-GL’s Oil and Gas Forecast to 2050 the reduction in breakeven costs for deepwater developments experienced since 2014 could initiate the development of several deepwater projects as early as 2018.

B

reakeven costs for deepwater developments dropped from an average of about US$75 per barrel in 2014 to US$62 in the rst h o n US in Q1 2017. If oil remains priced at around US$50 a barrel it could n ti te e e op ent o se er deepwater projects because current n ustr e pect tions oresee prices rising to the US$60-70 range around 2020-2021 when any development projects started next year will start producing.

In tion the ocu ent reports that day rates for harsh environment drilling rigs have halved n the p st e e rs n r g operators have also managed to achieve impressive cost savings.

Se er r gs h e een scr ppe which has helped to restore positi e oper ting rg ns or those remaining.

A eet o r sh ps n semi-submersible drilling rigs ere n oper tion or e t the end of 2015. While no new

build semi-submersible drilling rigs and drill ships were ordered n th t e r or n ee s nce e expect demand to return slowly o er the ne t three to e e rs The deepwater new build market t e onger to reco er the say.

DNV-GL predicts that the rate at which new capacity is added nnu to g o offshore o pro uction s set to s o between now and 2050 Drivers of decline will include: Î demand for oil falling steadily beyond 2022; Î su stitution o g s or o s resu t o c r on re uction strategies in oil companies’ us ness por o os n n the global energy mix; Î the re ti e h gh cost per barrel of developing offshore ersus onshore o in general (and unconvention o n p rticu r n Î the increasingly tough challenge to produce and

West Africa ripe with opportunities

T

he u titu e o co p n es oper ting n n esting offshore co ne th a lack of regional service providers in some countr es offers ch nce to secure one o kind projects from operators keen to make the most out their assets.

The West Coast of Africa is therefore ripe or opportun ties or reg on n ntern tion contr ctors h e o s tion costs re n h gh n ncre se n the scope o or rought out co or tion n discussion between operators could mean n up n e n or r nge o ser ces including:

Î Rigs and vessels of opportunity Î Ce enting techno og Î Data logging tools Î Well integrity management systems Î Intelligent well services

Î Riserless technology

Incre s ng e nter ention cti t n oth sh o n eep ter e s ur ng stages of the assets’ lifecycle could thus be the e to uture pro t e e nter ention us ness e e op ent opportun ties or contr ctors s e s n up n pro ucti ity for operators keen to extend the production e o pro t e ssets he o P A

Î Coiled tubing

SOURCE: Offshore Network Ltd

Î LWI vessels

2

Î Downhole tools

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transport oil from deeper n h rsher c tic n metocean environments as the er o e s offshore o becomes a distant memory.

According to the report: “On averge the M e E st n North Africa has the lowest development costs and will see steady or ncre s ng nnu tions to offshore o pro uction c p c t unti the e r s Su S h r n A rc e cee these ut on unti the s E er other region will see investment in new capacity of this kind declining ro no n t r p p ce unti

Gas forecasts N L s orec st s th t offshore g s pro uction gro n the North A r c reg on n M e E st s e s South E st As ppro te percent e ore ec n ng there er “The strong role that we predict or g s n the uture n the g s or co o su stitution stor s re ecte n our o e s out oo or ne c p c t tions to g o offshore g s pro uction t e st n the short ter the s Their model predicts recovery ro orec st r n to r n then ore or-less steady rate of decline to r n er the per o the nnu r te o ne tions to offshore g s pro uction c p c t percent h the percent ge pre cte or offshore o The t o pro uction so utions such s o ting LN LN o ng LN tr nsport also assist in making the case for continue ne e e op ent o offshore g s resources o er the orec sting per o The M e E st n North A r c continue to see the h ghest nnu r te o ne pro uction c p c t or offshore g s ro no unti t e st SOURCE: DNV-GL Oil and Gas Forecast to 2050

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OFFSHORE AFRICA | Exploration, production and news updates

Supporting A r c s rst LN pro ect n Mo ue

R

INA Services has been chosen En E st A r c to ct s Certi c tion Authority for the design and fabrication o su se structures n equipment and to provide techno og c tion services for the company’s

Corporate restructure for Africa-focused co p n Wentworth Resources L te n E st A r c ocused oil and gas company recently relocated its head o ce n n ge ent team from Canada to London in a restructuring process e t e er aligning its corporate management structures with its shareholders and asset base in Africa.

Unable to move to Lon on M n g ng rector eoff ur step down from his role once a suitable replacement has been found.

S T

o ting L ue e N tur s LN un t nten e or the Coral South Development Pro ect The Unit will be one of the on three e sting g o and will be installed in the South P rt o Are offshore Mo ue n the eep waters of Rovuma basin. The Cor South LN pro ect or ts s e u t o resources n geogr ph c pos tion s e pecte to oost Mo bique’s economy.

The rst ph se o the Cor e e p o t tion nc u es the e e op ent o e tr on cu c eet tc o g s n the pro uction s e pecte by 2021.

The LN un t h e c p c t o roun MTPA on tons per e r n INA Ser ces es es e ng the Certi c tion Author t or the es gn n r c tion o the r ser n o nes the umbilicals and the subsea pro uction s ste h s een contr cte En to pro e

p ng off Eg pt

he newly named MV Kobi Ruegg has joined ugro s esse eet n un ert e her rst pro ect n the Eg pti n sector o the Me terr ne n Se or ng on eh o S pe ugro ep o ts rge diameter piston core system to collect soil samples in the ohr g s e geoph s c sur e s or P co n She

follow.

The three-year-old vessel has been renamed Kobi Ruegg in honour of a former member o the o r o M n ge ent t ugro n pre ous operte n the u o Me co or ugro She rep ces the Fugro Navigator which has een per nent retire s p rt o ugro s ongo ng esse r tion s tion process

techno og c tion o those techno og es th t En deems unproven and could represent or cr tic ties or the r p e ent tion The Cor South LN pro ect s the rst o ts n or the Italian oil major and is “breakng techn c ne groun It is fundamental that the technology is validated by a third party to ensure that it meets the spec e per or nce criteria while being safe.

“Through RINA’s Gas Centre o E ce ence th t g thers the best of our technical co petence e he p c ents facing challenging projects in the g s sector The o ces that RINA now has across Africa are part of it and are the evidence that we see the continent s n portant future energy market.

N tur Mo ue s p rticu r port nt n e look forward to strengthening our re tionsh p th En p ng or ro e n Mo ue s o n g s n ustr s An re o r CC Energ In r structure t RINA Services.

Per nent o se th a full range of geophysical survey and geotechnical s p ng e u p ent s e s Se e e P nther re ote oper te eh c e the purpose u t etre u ti ro e sur e esse s se n A e n r Eg pt ro her ne ho e port o A u r she e er ugro s r ne s te ch r cter s tion ser ces to c ents n the E stern Me terr ne n and Red Sea.

on PS A on In ustr es o cto er un ergo topside.

estine

New service centre in Ghana

U

nique Group’s Buoync st s on e co es ffshore Techn c So utions TS of Accra and Takoradi to the Se e r n s ntern tion net or TS stoc Se e ter gs n T or h n to ser ce local demand for the testng o cr nes e o ts gangways and other loadbearing structures.

Se

e terLo gs n Se e tr ne service technicians are now deployed at the OTS T or se ser ng the Ghanaian market as well as neighbouring countries.

The new service centre supplements the existng A r c n s es rent ser ce c t th n Un ue roup s r ctor n C pe To n offer ng c oser support to customers in the Gulf of Guinea. o egg p sse n M rch er an all-too-brief period of retire ent or e tireess or ugro or ost e rs n ro unti he retire n s e er o the o r o M n ge ent with responsibility for the ffshore Sur e s on e is remembered as a hardor ng e per ence n dedicated colleague with a stincti e st e n sense o humour.

or N ger

PS s current on route to N ger ro the S sung e eo e sh p r The ong esse e the r t the en n s e pecte to rr e n N ger n e r here she tion or n oc content pro ect to r c te sections o the

The PS s to e nst e n Eg n offshore e oc te ro N ger n shores The eg c t s n ength n re th n h gh It o sts on rre s o stor ge c p c t th tops es e gh ng tons She co ence oper tion n the secon h o

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BLISHE TA

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OFFSHORE AFRICA | Exploration, production and news updates

QUAY QUOTES

“So that you have the dry oc ng ou h e sh p building and you have r c tion r c tion th t will enable you build part of the PS the re r ng ng establish machine shops that will be producing parts for the PS n other cti ties re te to the o n g s n ustr said the acting Director General of the Ghana Ports and Harbours Authority, Paul Asare Ansah who promised to improve the working conditions of all staff of the Tema Shipyard.

The pro ect s so e pecte to gn th the e er o ern ent s effort to r e o n the cost o r ne se s c c u s tion n the countr said the Chairman of Petroleum Technology Association of Nigeria (PETAN), Bank-Anthony Okoroafor during the flag-off ceremonies of the NNPC/First E&P Oil Mining Leases (OMLs) 83/85 partnership for marine seismic data acquisition in October.

As e h e e ph s se on nu erous occ s ons r tr tion s cert n not our pre erre route ho e er e e e e r tr tion s necess r to protect our nterests n these cences n h ch e h e e s gn c nt n estment over the years. Despite the formal commencement o th s process e re ter te th t e re n ho open to eng g ng n constructi e ogue th the n uthor ties th e to est sh ng s tis ctor so ution th t s n the nterest o p rties said CEO of African Corporation Limited, Jens Pace in connection with the issues they are facing in Gambia. or South A r c net o n g s porting countr these nter ctions re o cr tic port nce s e see to further enhance energy security of demand and supply. e re ho e er o the r e th t g en the nterest n our offshore cre ge e soon e pro ucers ourse es e re n opti stic th t recent g s sco er es n the o u s n n Mo ue ene t the economies of this region and further bolster regional economic ntegr tion e so oo or r to the co erc s tion o n tur g s ro u u s e nN said David Mahlobo, MP Minister of Energy of South Africa at Africa Oil Week.

Tu o oo s or r to continu ng to or constructi e th the o ern ents o oth h n n C te d’Ivoire following the conclusion of this process. While the TEN e s h e per or e e ur ng the per o o the r ng or tor u e c n no rest rt or on the tion r ng p nne s p rt o the TEN e s p n o e e op ent n t e the e s to r s the r u potenti said Paul McDade, CEO of Tullow following the announcement of the conclusion of the border dispute between the two countries.

“As we enter this process of improving alignment of our corpor te structure th our sh reho er n sset se the business is in excellent shape to take advantage of the opportun t to e er the ne t ph se o gro th oth n T n n n Mo ue n potenti e on these ur s ctions n I oo or r to or ng th ne CE to ch e e th s said Bob McBean, Executive Chairman of Wentworth Resources Limited.

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A r c Energ to c u re tion nterest offshore South A r c

A

r c Energ Corp h s nnounce the r ntention to c u re percent nterest n the E p or tion ght or oc offshore South Africa.

Block 11B/12B is located in the Outeniqua Basin approximately 175 kiloeters off the southern co st o South A r c The oc co ers n re o ppro te s u re o etres th ter epths r ng ng ro to etres Tot E P South A r c su s r o Tot SA s the oper tor n h s percent nterest n oc CN Intern tion South A r c L te su s r o C n n N tur esources L te o ns the remaining 50 percent.

A r c Energ ho s percent o the sh res n ne spec purpose eh c e M n Street Propr et r L te h ch h s entere nto r out agreements with Total and CNRI separately to acquire 5 percent from e ch or n ggreg te percent p rtic p ting nterest n oc rre So en A r c Energ s Pres ent n CE co ente e re excited to partner with Total and CNRI on Block 11B/12B. This is a unique opportun t or co p n o our s e to or th ors n h t e ee e to e the ost prospecti e geo og offshore the A r c n continent Our technical team knows the area well from their previous exploratory or off the southern co st n e oo or r to the propose e p or tion e on oc A r c Energ p epos t o US on t s gn ture n p n tion US on t c os ng The co p n h s gree to un portion o Tot s n CN I s costs or the propose e p or tion e to u o US on p us cert n contingent p ents ue t r ous estones ssoc te th co erc s tion o h roc r ons ro oc The c os ng c rr n contingent p ents e funded from cash on hand and/or from third party sources.

C os ng s su ect to st n r con tions or tr ns ction o th s t pe nc u ng ppro the South A r c n go ern ent n the TS enture E ch nge s re u re

Remotely operated monitoring s ste or Ango n PS

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CA roup s r e contr ct to supp r ser connection on tor ng s ste to pr te oper te PS n Ango

ECA roup h s een gr nte contr ct to pro e n un er ter netor co pose o e e en T C s e ng T c er s n t o pressur se E p os on proo S contro un ts to the PS Th s so ution s success u e e ope the roup e e rs go or n PS se n r Th s so ution s co p ete re ote contro e n oes not re u re n er nter ention Inst tion n re o o c er s re oper te The net or nst e on the PS o re ti e n ght n sur e nce o the clamping process of risers.

T C s er s tu e nspection T c er offer ng n he spher c e ng th n s to the ti t n ghting he Th s s e ng he co our T c er e tures the o eT t ot te process: ti t n un te rot tion un er tr nsp rent o e with a cold light source mounted on the viewing head. The light made o U tr r te LE s th hours e ti e co ne th h gh reso ution n sens ti t e ectron c oc pro es n nco p r e chro tic e t n e ce ent u t ges The S un t c n contro rge nu er o T t pe T c er s s nce t s nst e th n the PS ts cont ner s pressur se nert g s hence s u e p os on proo

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EMPLOYMENT AND DEVELOPMENT

EMPLOYMENT IN O&G The need to maintain and develop skills Discussion at a recent ship repair forum in Cape Town emphasised the need to maintain and develop the skills base that has been established in the rig repair sector despite a massive downturn in work over the last few years. Although experts and analysts remain cautious in their predictions for an upturn in the sector – there are signs that this will occur and the consensus is that Africa cannot afford to lose the skills that it has been developing.

W

hile retrenchments n offs h e become synonymous with the sector e eg tes t the C pe To n oru org n se S M r eting were keen to retain skills and work to nt n ccre t tion s e s certi c tion

pair would help maintain the skills’ base for a future more buoyant oil and gas sector.

Noting th t the h tr ne rtis ns n ess th n e e rs Chr s Sp rg M o or c M r ne s th t s gn c nt effort shou e e to r ct the or to sustain this labour pool. “We have to nt n s s he s “The oil and gas sector brought money and skills to Cape Town n no e re os ng these said one delegate at the forum.

“Developing ship repair promotes o cre tion s Se n nsen convener of the forum from SDJ M r eting h gh ghting th t the need to promote general ship re-

The e o cre ting s s ur ng th s ch eng ng ti e n ntic p tion o n ups ng s not unique to the rig repair sector – it s note orth cross the entire spectrum of required skills for the oil and gas sectors.

It s nteresting to see ho the nu er o PIT ccre te tr nng pro ers on the continent h s shrunk over the last year – and it is not likely to change in the coming year as the demand for training continues to e curt e

Local content and p rtic p tion The key to maximising the oil and gas sector for Africa is to drive loc p rtic p tion Those countr es that have been blessed with sig-

“The oil and gas sector brought money and skills to Cape Town and now we are losing these.”

UNDERSTANDING THE DIFFERENT VIEWS OF LOCAL CONTENT POLICIES T A ITI NAL C MPLIANCE IE P INT

LOCAL STATION IE P INT

Co p nce n oc regu tions Meet the t rgets

o ng the

n

A grudge purchase/hire e ction r

n prescr pti e

Required for a regulatory license

A win-win investment u

Resource Nationalism and local content regulations

A regime that applies to all players

Use regu tions s n en Lo er cost r s

er

ncre se pro ucti t

Pro cti e n opportun t see ng En

es soc o econo

A fferenti tor ro

c cence co putor

Source: Deloitte 2015

SPECIAL SUPPLEMENT: Supporting the offshore sector

n c nt o reser es h e e to develop the prerequisite skills n e pertise The o o pr ce offers these countr es n opportunity not to abandon their skills development as well as localisation progr es ut to ntens the r efforts n p r the to the n ustr s nee s to opti se cost e c enc es esp te the ene ts e to country’s economy in the event of n o or g s sco er there s notion th t the p ct on or n r c ti ens espec n e e oping countries in Africa – is not as apparent.

This is partly because the actual offshore e p or tion n pro uction oes not cre te ss e nu er o o s or th s re son it is wise for countries to align oc s tion to the ser ces sector Th s s not to s ho e er th t offshore e p o ent or oc s should not also be pursued.

In thes s su e Austin ornu A o h n ian studying at the University of ergen the uthor e pte to enti the opportun ties or oc c ti ens on r gs n h n s o industry. s n ngs re e to e re evant to many other African countr es hop ng to see the r c ti ens e p o e offshore h t re the offshore e p o ent opportun ties ch enges n outco es or Ghanaians in the emerging oil and g s n ustr he s e A o uestions the e s t o Ghana’s local content policy that requires operators in the exploration n pro uction sector to h e percent h n n contingent th n n ge ent t st rt up n percent th n e e rs In tion the re re u re to st rt up th t e st percent o the r techn c st ff s h n ns n r p th s up to percent n ust e e rs A o s s hether the government is doing enough in terms of skills development to

make this feasible. e conc u es th t oc content policies alone cannot ensure the sustainable management of a resource or the ene t o oc econo c ene c tion In his research he also highlights how long it takes the average rig worker to work up through the ranks and acquire the necessary s s It s there ore unre stic to e pect th t n e erg ng offshore sector of a country can fast-track the r c ti ens nto these h gher echelon jobs in less than 10 years.

Entr e e pos tions on r gs th t re u re e c t o es th the t to e tr ne ho e er shou e reser e or oc c ti ens perh ps th the e proviso that suitable training is provided to allow these workers to advance as the industry matures.

A PICTURE OF OIL AND GAS JOBS ON ONE DAY IN NOVEMBER ON A POPULAR EMPLOYMENT SITE

SNAPS

T

1567

11

TOTAL NUMBER OF JOBS ADVERTISED

17

ALGERIA

EGYPT

In a 2017 update on the local content laws applicable to Nigeria’s oil n g s n ustr PM c utions operators to remain compliant to tig te unp e s nt regu tor c sh S r e o e s report on oc s tion n A r c s o n g s industry emphasises the need for

32

NIGERIA

ntern tion oper ting co p n es to “include in their strategies a focus on sharing their prosperity with the host country in a sustaine utu ene c Efforts reg r ng sourc ng our as well as goods and services loc re t p c co pro se n the name of maintaining quality

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EMPLOYMENT AND DEVELOPMENT

and safety standards. Select IOCs h e e pte to e e op oc contr cting s ste s ut these focus on giving local companies a chance to access a bid and allow IOCs to appropriately evaluate a local company’s capability. Where this falls short is that there is no focus on the long-term spend n the resu ting opportun ties that could be available to develop e sting supp ers n e en ne enterpr ses r tes e o e gh p rtic p tion o oc workforce can be achieved with capacity building of local people through n est ent n e uc tion and training to develop employees to a standard to be sustainably e po e the I C conc u es eo e

uture e p o opportun ties

ent

As an add-on to the general e p o ent opportun ties th t

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SPECIAL SUPPLEMENT: Supporting the offshore sector

h e e ste n continue to e st n the n ustr uture proo ng s s nee s to e t en into account. The trend of training people for unemployment needs to be addressed.

In n rtic e pu she e r er th s year on Rigzone eg n M or PM s g o sector he spo e out so e o the potenti uture e p o ent opportun ties n the sector Accor ng to her the uture employment prospects lie in IT en e ent g t n tics n uto tion M or so sees e n or more specialised trade and construction o s s e s ore ers c tion o eng neer ng t ent She also points out that once the oil price starts to recover not all of the jobs that were lost will be recovered as companies have learned to work smarter by making use of more technology.

COMMENT ON A RIGZONE ARTICLE DEALING WITH EMPLOYMENT NAILS ISSUES FACING THE OIL AND GAS INDUSTRY COMMENT | JANUARY 14 2017 I h e een n the o e s nce n een through n s o o n nc u ng the e ghties n th s h s een the orse one et n t s r ro o er The post s o o n ssues re go ng to e orse th n the s o o n tse The o e s not e nu ctur ng hen t co es to uto tion th PLCs runn ng our oper tions The en ron ent tse p s h oc th these s ste s n re u res continuous nten nce n c e n ng I on t see g short ge n our I see ch nge n the or ers o t s s e re o ng ro ess our ntense en ron ent to ore nten nce t pe en ron ent or the o e or er L our s go ng to e the g ssue hen t co es to r ng up these r ng r gs In the e r st ges o r gg ng up ou h e so e peop e sti h ng ng roun ec use the cou n t n o e se here ur ng the s o o n nce these peop e h e een ppo nte then the pro e s o cre ng st rt Peop e n the o e ne er got c ught up ro the st s o o n n s t s re e ore e st rte to see re ups ng n ng st rte s ng south th ss e offs So ho oes th s p ct the o e or er e et s t e oo o su en I ng s gure s r n then rop c to n une p o ent che ue Me n h e I h e to support s to p s e no pro ne ho e eh c es to s upsc e st n r o ng No ost peop e re stretche to the t ut ne erthe ess u te c p e o h n ng the est e h e e p o e th no p che ue h t h ppens ne t Un ess I goo s er th enough to h n e e r s o o n I ose e er th ng n n ot o c ses h ch s goo re son I there or ng h r n the rst p ce No I ust ost e er th ng I h e or e or n person n ot o stress No th t e h e e per ence the o e o en ron ent I ou e to ocus uture c reer E er o e or er ho ee s th s p n sh res th s p n th the r r en s n th s s horr c n c nt stop t ng out th s o e or er to the po nt the re t ng to e er one e se n coffee shops n so orth o n peop e ho e goo o s to ch se the o e p che ue sh the h the r o o c n ou or so eth ng s r th ess p n ore st t I ou s t e st percent

e or ers p n s th s n n r en s n oc s soc e so on o n th ng to get t c g n

I I person nting to eco e n eng neer n th n ng out gre t uture n the eng neer ng e oes petro eu eng neer ng soun c reer er h t I he r or see s h ppen ng n the o n g s n ustr es ou c n e g one s ong s ou re or ng ste Mone g ou or n c c c e n poss ose e er th ng ou or e or n ct ou e uc ou re ng n u ge

e n n ting ne er e

e ore the s o o n e h ot o n ustr es outs e o the o e short o person nc u ng eng neers tr es peop e t n ourers I e pect these n ustr es ou h e p c e up on the surp us o o e or ers th t the o n ustr pro e nce the o e n s peop e hether t s oc or ro to these pos tions e re e ng th ne per ence or ers th not enough e per ence personne to tr n the No h t h ppens I t s n th ng e the p st t e n ncre se n n ur es ser ous n ur es n e en t ties e e ne er seen e ore Peop e re he r n sten s th s p s out n re no oo ng t the n ustr t r s ength on er ng hether the shou enture o n th s h gh o uncert nt t e h e n ns er e go get the tr n ng so t e s er en ron ent to or n So the ec e to oo or r ng schoo th t offers th s t pe o tr nng schoo h ch h s h n s on n s et progr es th t eet the e n o the n ustr ut n out the c ose ec use the cou n t h n e the slowdown. The post slowdown environment is much worse than I thought it was going to be and now I decided to look elsewhere to develop my career. I don’t nee the h ss e n neg ti t th s n ustr e ers SOURCE: RIGZONE PUBLIC COMMENTS (edited)

EMPLOYMENT AND DEVELOPMENT

OPITO accredited courses in Africa on the decrease

T

here has been an interestng sh n the nu er n r et o PIT accredited courses availe on the continent o er the st three years.

In our offshore supp e ent n ten co p n es n se en A r c n countr es offere se ection o courses In the nu er o co p n es offer ng accredited courses sprung to 14 with notable increases being seen in Nigeria. That same year a total o courses ere on offer Our analysis this year shows that the number of companies now offer ng ccre te courses h s shrun c o n to ten n though courses re sti e the u o these re hoste over just two or three companies. en the st te o the offshore

BOSIET is available to learners anytime and anywhere in the world where they can access the internet. It enhances safetycritical knowledge through online assessment before progressing to the final verification and practical day at an OPITO approved training centre.

oil and gas industry due to the sust ne o pr ce o o th s evelopment should not be all that surprising.

It s so nteresting to note th t those courses th t offer the potenti to e t ught g t probably soon be usurped by the t o PIT to o th s rect to n one n n oc tion In No e er the org n s tion announced that the three-day primary emergency response SIET tr n ng e offere s n on ne option ongs e the pr ctic e e ents “The online modules are completed remotely at a learner’s o n p ce n oc tion th on one re u re or the pr ctic tr n ng t offers the potenti to give more than a million hours of tr n ng ti e e ch e r c to industry and reduce travel and acco o tion costs st tes the r press release.

E ght o the ten A r c n PIT ccre te tr n ng pro ers offer the SIET course n no doubt see the impact of this development in the coming year.

ohn Mc on CE o PIT said: “We recognise that as an industry we must adapt and be ore e e or to s or orce and cost constrained industry. It requires an overhaul of the way we think about training people and assessing competence. The classroom has been the standard model for learning for hundreds of e rs ut t s ti e to o th ngs ferently if we are to keep up with techno og n r ct the ne t gener tion to our n ustr Accor ng to PIT the n ti ti e has been backed by global operators n tr n ng org n s tions e ho h e ch p one the g t n ti ti e The on ne tr ning includes the three standards n the su te E ergenc re thng S ste E S Co presse A r E ergenc re th ng S ste CA E S n Trop c SIET It s available on all devices including s rt phones es tops ptops and tablets.

It s e to e rners n ti e and anywhere in the world where they can access the internet. It enh nces s et cr tic no e ge through online assessment before progress ng to the n er c tion n pr ctic t n PIT approved training centre.

The g t s tion o tr n ng s tren th t s e to continue n increase - local training providers will need to adapt or die.

Number of OPITO training providers in Africa over the last three years

15 COURSES

12

SPECIAL SUPPLEMENT: Supporting the offshore sector

22 COURSES

22 COURSES

South Africa

Nigeria

Ghana

Quatorial Guinea

Egypt

Congo

Angola

Tunisia

2017 South Africa

Nigeria

Ghana

Egypt

Congo

Angola

Tunisia

2016 South Africa

Nigeria

Ghana

Egypt

Congo

Angola

2015

THE LEADING MARINE SAFETY SOLUTIONS PROVIDER ON THE LEADING MARINE SAFETY SOLUTIONS PROVIDER ON THE WEST AND EAST COAST OF AFRICA THE LEADING MARINE SAFETY SOLUTIONS PROVIDER THE LEADING MARINE SAFETY SOLUTIONS PROVIDER ON ON THE WEST AND EAST COAST OF AFRICA THE LEADING MARINE SAFETY SOLUTIONS PROVIDER ON THE WEST AND EAST COAST OF AFRICA THE WEST AND EAST COAST OF AFRICA Novamarine is the first multi THE COAST OF AFRICA Novamarineapproved isWEST the firstAND multiEAST manufacturer lifeboat Novamarine is the first multi manufacturer approved Novamarine isinthe firstlifeboat multi and davit service Africa.

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SERVICING AFRICA SERVICING AFRICA SERVICING AFRICA Product Range of Marine Life-Saving SERVICING AFRICA SERVICING AFRICA ProductEquipment Range of Marine Life-Saving includes: ProductEquipment Range of Marine Life-Saving includes: Product Range of Marine Life-Saving Lifejackets Equipment includes: Product Range of Marine Life-Saving Equipment includes: Lifejackets Liferafts Lifejackets Equipment includes:

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INFOGRAPHIC

OFFSHORE Oil and Gas Africa

Africa accounts for 26 percent, or $4.7 billion, of global deepwater assets on the market.

26%

“

Africa overview

“

We have seen a handful of discoveries in offshore Africa over the last year, but most of those prospects have been in the pipeline for quite some time.

We don’t expect to see exploration activity ramp up substantially until the oil price starts to show some form of a sustainable increase.

PwC Africa Oil and Gas Review 2017

Massive recent discoveries in offshore Africa make this region most likely to attract offshore M&A activity.

69%

OPEC proven crude oil reserves over the last three years 2014

Venezuela Saudi Arabia IR Iran Iraq Kuwait UAE Libya Nigeria Qatar Algeria Angola Ecuador

2015

299.95 266.58 157.53 143.07 101.50 97.80 48.36 37.07 25.24 12.20 8.42 8.27

2016

Venezuela Saudi Arabia IR Iran Iraq Kuwait UAE Libya Nigeria Qatar Algeria Angola Ecuador

300.88 266.46 158.40 142.50 101.50 97.80 48.36 37.06 25.24 12.20 9.52 8.27

↑ ↓ ↑ ↓ ↔ ↔ ↔ ↓ ↔ ↔ ↑ ↔

Venezuela Saudi Arabia IR Iran Iraq Kuwait UAE Libya Nigeria Qatar Algeria Angola Ecuador Gabon

38

↑ ↓ ↓ ↑ ↔ ↔ ↔ ↑ ↔ ↔ ↔ ↔

Although offshore discoveries have accounted for 69 percent of oil and gas volumes discovered during the 2006 to 2017 period, the offshore has only represented 16 percent or of global upstream M&A transaction value.

SOURCE: IHS Markit

CHALLENGES

African exhibitors at the Offshore Technology Conference

48

302.25 266.21 157.20 142.77 101.50 97.80 48.36 37.45 25.24 12.20 9.52 8.27 2.00

SOURCE: PwC Africa Oil and Gas Review 2017

54

BREAKEVEN COSTS

FOR DEEPWATER DEVELOPMENTS 2014: US$75 per barrel 2015

2016

2016: US$62 per barrel

2017

2017: US$55 per barrel NIGERIA: 2015 2016 2017

20

SOUTH AFRICA 2015 2016 2017

ANGOLA 2015 2016 2017

LIBYA 2016

EGYPT 2017

GABON 2017

14

16

18

29 30

The lowest development costs will see steady or increasing annual additions to offshore oil production capacity until the early 2040s.

Sub-Saharan Africa will exceed these, but only until the mid-2020s.

Every other region will see investment in new capacity of this kind declining from now, and at a rapid pace until 2030.

SOURCE: Oil and Gas Forecast to 2050 (DNV GL)

13

1 1

9

1 1 1

SPECIAL SUPPLEMENT: Supporting the offshore sector

< US$ 40 per barrel

Ghana’s Jubilee phase 1B will be profitable at oil prices below 40 USD/bbl.

SOURCE: Rystad Energy

LOCALISATION PUSHING FOR MORE

LOCAL DEVELOPMENT IN AFRICA

The concept of localisation has been promoted by governments of resourcerich countries as a means for capacity building, human capital growth, supply chain development and partnership with local organisations.

Legislation in Africa typically focuses on local content by being prescriptive regarding the procurement of local labour, services and goods. At a base level, local content is to be encouraged by the contractor (and in some cases sub-contractor), but no minimum percentage is prescribed. While at the top end, local content is prescribed by law with minimum percentages for goods and services and local employment requirements. Lately, however, we are seeing localisation type laws being enacted, and we expect an increase in such legislation.

(Deloitte 2015)

1

UNCERTAIN REGULATORY FRAMEWORKS

2

RIG COUNT

2022: Peak Oil

2035:

SOCIO-ECONOMIC DEVELOPMENT

LOCAL ENTERPRISE DEVELOPMENT

Peak Gas

2050: Gas as the largest source of energy

5

LOCAL SKILLS DEVELOPMENT

ELEMENTS OF LOCALISATION

SOURCE: DNV GL

88% OWNERSHIP & MANAGEMENT CONTROL CONCERNS OVER CORRUPTION

3

LOCAL SUPPLIER DEVELOPMENT

4

FINDING FINANCING

FOREIGN CURRENCY VOLATILITY

5

13

2010

26

2011

27 32

2012

35

2013

40

2014

32

2015

16

2016 2017

TAXATION REQUIREMENTS

15

2008 2009

Significant government interest is evidenced by the fact that 88% of proven oil and gas reserves are under the control of NOCs. (Deloitte 2015)

12

Average monthly offshore rig counts off Africa since 2008 according to Baker Hughes SPECIAL SUPPLEMENT: Supporting the offshore sector

15

EVENTS

Oil and Gas Conferences and Exhibitions

West African International Petroleum Exhibition and Conference 7 – 8 February 2018 | Lagos, Nigeria The West African International Petroleum Exhibition and Conference (WAIPEC) will return to the Eko Convention Centre 7-8th February 2018 in partnership with Nigeria’s petroleum industry. Working directly with PETAN, the organisers will draw on their global resources to ensure that the event delivers to the needs of all stakeholders in Nigeria and through the region. http://waipec.com/

EVENTS Gas to Power Africa Congress 15 – 16 May 2018 | Cape Town, South Africa

Egypt Petroleum Show

The 2018 Gas-to-Power Africa Congress returns to Cape Town where you can expect a continuation of the critical discussions in front of an even more global audience.

12 – 14 February | Cairo, Egypt

www.oilandgascouncil.com/event/gas-power-africa-

Returning to Cairo in its second edition from 12 - 14 February 2018, the Egypt Petroleum Show (EGYPS) brings together the Egyptian and North African government representatives, key project owners, NOCs, IOCs, international service providers, EPC contractors, consultants and financiers to address the evolving opportunities in the Egyptian and North African energy arena. https://www.egyps.com/

congress-2018

7th Oil and Gas Kenya Exhibition and Conference 29 – 31 May 2018 | Nairobi, Kenya Major oil & gas companies from across the globe participate in this annual event to meet imports from Africa and explore new business opportunities. www.oilgas.expogr.com

Africa Gas Forum 19 February | Sandton, South Africa The Africa Gas Forum has been created to ensure a balance between country specific opportunities as well as common issues that affect the whole region such as exploration activity, licensing rounds, development plans and the move to gas, new tax regimes, regional infrastructure projects, pipelines, LNG terminals, security, local content initiatives, investment requirements and other key upcoming projects.

5th East Africa Oil and Gas Summit and Exhibition 14 - 15 June | Nairobi, Kenya Significant onshore oil discoveries in Uganda and Kenya and offshore gas discoveries in Tanzania and Mozambique have made East Africa a subject of intense interest among the global energy industry. http://eaogs.com/

www.africaenergyindaba.com/side-events/africa-gasforum/

2nd Africa Oil and Gas Local Content Conference and Exhibition 5th East Africa Oil and Gas Summit and Exhibition 14 - 16 March | Nairobi Kenya The 5th East Africa Oil and Gas Summit & Exhibition will be held from 14 - 16 March 2018 at the Kenyatta International Conference Centre (KICC) in Nairobi, Kenya. EAOGS provides a platform for East African ministries and the National Oil companies to engage with international and local investors to examine the vast opportunities across East Africa in the Oil & Gas industry. Significant onshore oil discoveries in Uganda and Kenya and offshore gas discoveries in Tanzania and Mozambique have made East Africa a subject of intense interest among the global energy industry. www.africa-energy.com/event/east-africa-oil-gassummit-2018

11th Sub-Saharan Africa Oil/Gas Conference 26 27 April | Houston, USA The 11th Annual Sub-Saharan Africa Oil & Gas Conference aims to provide a platform for participants to gain insight; share knowledge, showcase expertise, proffer solutions to some of the challenges facing the industry in order to become nationally sufficient and globally competitive. It will also provide a cozy environment for networking with ministers, top government officials, industry leaders and top decision makers. www.energycorporateafrica.com

16

14 – 16 June 2018 | Luanda, Angola Organised in association with the African Petroleum Producers Organisation (APPO), the first edition gathered over 250 registered participants from APPO member countries, international oil companies, hydrocarbon service companies. http://ametrade.org/alc/overview/

Oil & Gas Africa 10 July | Cape Town, South Africa Oil & Gas Africa is an event dedicated to the developing upstream and midstream oil and gas industry in Sub-Saharan Africa. It connects Africa based buyers and decision makers with leading local and international suppliers of new and innovative products and solutions for the growing needs of the oil and gas value-chain in a developing market. Oil & Gas Africa is complemented by quality conference content.. www.africaogp.com

4th Oil & Gas Tanzania International Trade Exhibition 11 – 13 October | Dar es Salaam, Tanzania 4th OIL & GAS TANZANIA 2018 - It is truly remarkable how East Africa, and specifically Tanzania has in a short period of time become the main focus of attention as a source of new global gas supply. Large amounts of foreign investments have been invested in the Tanzanian Oil and Gas industry after its discovery.

These investments have made East Africa the next lucrative market. Tanzania has witnessed further exploration www.oilgas.expogr.com

4th Upstream West Africa Summit 2018 27 - 29 June | Dakar, Senegal “Unlocking the Deepwater Hydrocarbon Potential of West Africa” In June 2018, Senegal will play host to the No.1 Annual B2B Upstream Oil & Gas event, which will bring together the senior decision makers from across the prolific West Africa region.

5th Mozambique Gas Summit 31 Oct – 2 November | Maputo, Mozambique Delegates have the opportunity to meet and make deals with government officials and global investors over a packed agenda with lots of new and exciting features. www.mozambique-gas-summit.com

www.upstreamwestafrica.com/

25th Africa Oil Week Nigeria Oil and Gas 2 - 5 July 2018 | Abuja, Nigeria The Nigeria Oil & Gas Conference & Exhibition, now in its seventeenth year, will be returning to Abuja from 2 – 5 July 2018. The annual meeting of industry stakeholders will once again gather over 700 industry professionals to network and explore new business opportunities within the industry. Meet the who’s who of the Nigerian oil and gas industry. www.cwcnog.com

SPECIAL SUPPLEMENT: Supporting the offshore sector

5-9 November | Cape Town, South Africa Africa Oil Week is the meeting place for Africa’s upstream oil and gas market. The event brings together governments, national oil companies, investors, corporate players, independents and financiers – giving them a place to network, discuss and share knowledge. Africa Oil Week attracts quality speakers. Sessions are headed by top figures in the sector, including ministers, heads of NOCs, leading scientists and CEOs from major and independent firms. www.africa-oilweek.com

No Deviations - No Delays

LAUNCH SERVICES

CAPE TOWN | PORT ELIZABETH Crane equipped launches offer 24-hour year-round exclusive bay, harbour and off-port limit services.

Offshore Maritime Services cc Tel: +27 21 425 3372 Fax: +27 21 425 3379 Foregate Square Foreshore Cape Town South Africa

launch@marineservices.co.za

|

www.marineservices.co.za

RESOLVE NOW HAS THE LARGEST DEDICATED SALVAGE TEAM IN SOUTHERN AFRICA. Resolve Africa has just moved its salvage warehouse from Port Elizabeth to Cape Town Harbour’s A-Berth, which shall be better suited for responding to salvage operations.

Over these past 18 months, the team has supported Resolve’s global colleagues on operations around the world - Canada, India, Taiwan, Singapore, Madagascar, Mozambique, the Middle East, and recently in Texas after Hurricane Harvey and now into the Caribbean after Hurricane Irma.