Digital oilfield solutions power oil and gas sector in Africa

OPINION

The world is moving away from traditional fuel sources towards renewable energy sources. Over the last decade, markets directed more investment toward sustainable energy-focused innovations. These redirections have forced the oil and gas industry to improve its operation and production efficiency to survive and thrive in the future.

The COVID-19 pandemic disrupted the already weak oil and gas market industry. Two years later, African countries are still struggling to recover from the impact. As a result, companies in the oil and gas sector need to optimise their technology to maintain and expand their revenue streams.

According to official estimates by Future Market Insights, the global digital oilfield market will be worth $37 billion by 2022 and reach approximately $54bn in 2028. This represents a healthy CAGR of 6.5% over the same period.

Why do we need digital oilfield solutions?

In the first half of 2020, oil prices slumped due to decreased demand. This meant enormous losses for oil producers in the African region. However, oil producers realised that modifying their perspective is required to overcome market vulnerabilities.

Traditional oilfields are rife with inefficiencies that widen their supply and demand gap and hinder

optimum reservoir utilisation. Vandalism and theft of petroleum products have further shaken investor confidence, making it hard to find investments for ongoing oil and gas projects in the African region. As a result, the rising overhead cost of deep-sea oil mining has exacerbated the problem for oil and gas producers.

Thus, organisations are incorporating modern technologies to address these challenges, and digital oilfield solutions are the first step towards profitability and sustainability. As a result, oil companies are adopting digital oilfield solutions and systems for deepwater production and exploration activities, which lower recovery time.

Safety is the biggest concern among oil and gas producers, as the oilfield workers must work in dangerous and inhospitable working conditions. This hazard has seen leading companies increasingly invest in digital oilfield solutions like remote monitoring solutions and control centres that eliminate the need to visit oilfields and enable geologists, engineers and operations professionals to work from any location.

For instance, Shell Nigeria recently installed KONČAR-built Random Phase Multiple Access (RPMA) modules integrated end devices in the flow-stations, manifolds, wellheads and other facilities. These devices provide a bidirectional connection between the field and the office, delivering reliable data streams from the area, including pipeline pressure, flow rate and temperature. These RPMA modules can encrypt transmitted data and control overall power consumption.

The device can also encrypt transmitted data, control power consumption, perform over-the-air (OTA) configurations and updates and perform scheduled alarm reporting. In addition to this, they can perform OTA configurations and updates and perform scheduled alarm reporting through smart alarms, sensors, actuating devices and reservoir monitoring control systems.

Solution providers eyeing Nigeria for investment

Nigeria holds high value in the oil and gas exploration and production markets. The country is one of the leading producers of low-sulfur crude oil, with the highest demand globally. A rise in oil and gas activity across the country has attracted the attention of digital oilfield solution providers.

The Nigerian government has taken proactive steps to address the liquidity, inadequate income and convertibility issues, preventing oil and gas companies from investing in the country. As a result, the government is taking vital steps to overcome the recession, looking for various alternative sources of income, primarily through gas marketing and infrastructure development.

With resuming exploration and production activities and increasing several upstream projects in the country, the demand for digital oilfield solutions will increase significantly. As oil producers look to enhance operational performance and improve investment return, they partner with digital solution providers to revive old wells and reduce the total cost of ownership (TCO) and production downtime.

For instance, in November 2021, Avanceon, in partnership with PE Energy Limited (PEEL), secured

the contract for providing digital oilfield solutions to revive the Kalaekule oilfield in Nigeria. In addition, Avanceon and PEEL will combine their expertise and resources to offer electro-hydraulic wellhead control panels to revitalise the critical oilfield.

PEEL will provide industrial end-users/customers with modern integrated control and automation solutions to achieve this feat. In addition, it will be responsible for running the project at the Main Automation Contractor (MAC) level. At the same time, Avanceon will work with PEEL to install, commission and test the Well Head Control Panel (WHCP).

Tech giants are introducing digital oilfield solutions to recognise health, security and environmental issues and prevent vandalism. For instance, Huawei unveiled an all-digital oilfield IoT solution at the Nigeria International Oil Summit 2020. The company will use 4G LTE broadband and artificial intelligence (AI) technology to enhance operational transparency and security in the oil and gas industry. This new solution is expected to provide a wide range of wireless network coverage to Nigerian oilfields, depots and pipelines.

The influential digital twin

Technology leaders are adopting Industry 4.0 powered dynamic software models and simulations. The oil and gas industry is no different. The industry uses this concept to ensure efficient, safe and continuous operation and design new technologies and systems.

Digital twin technology is a significant leap in the oil and gas industry. It creates a complete virtual replica of every physical aspect of an oil rig, including turbines, compressors and heat exchangers. Digital twin tech revolutionises processes and controls modelling in a virtual environment and monitors equipment overall health. It has made it easier for oil companies to move past traditional methodologies

and pave the way for digital transformation.

Digital twin tech can combine cloud computing, advanced simulation, virtual system testing, virtual/ augmented reality and machine learning into one integrated package. The solution can analyse realtime data from the equipment, underground geology and reservoirs.

Digital twin technology has begun forming roots in the African oil and gas industry. Oil companies are using these technologies for offshore platform design. For instance, Shell Nigeria uses Akselos SA’s structural digital twin on FPSO Bonga to realise many operational objectives, including critical area identification, cargo tank inspection and extreme weather scenario planning. The structural digital twin operates on Akselos’ patented reduced-basis finite element analysis (FEA) technology and is said to perform an accurate fatigue life assessment of the asset.

In conclusion

Initially, African oil companies were reluctant to adopt new technologies. However, we can expect an uptick in the movement as top companies adopt digitalised oilfield solutions and show interest in predictive maintenance systems.

Digital oilfield technologies are becoming an integral part of the oil and gas industry and are revolutionising oil and gas exploration and production operations. Market influencers include major oil companies such as Shell and Equinor, which have accumulated considerable experience developing technologies to make digital oilfields a reality.

They are looking to use digital oilfield solutions for asset management and get the best return on investment. Companies are likely to use digital twins and other technologies to control all aspects of their asset lifecycle to ensure long-term sustainability.

“ Digital twin tech revolutionises processes and controls modelling in a virtual environment and monitors equipment overall health. It has made it easier for oil companies to move past traditional methodologies and pave the way for digital transformation. ”