ORA 6 2013 Cover Spine_cover.qxd 12/10/2013 12:30 PM Page 1
■ Geology - p28 ■ Gas - p30 ■ E&P - p32 ■ Technology - p38
Volume 8 Issue Six 2013
www.oilreviewafrica.com
Africa
Covering Oil, Gas and Hydrocarbon Processing
Europe m10, Ghana CD18000, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12
Oil Review Africa - Issue Six 2013
IEA urges to keep investing China’s massive expansion in Africa Tanzania building a gas-fuelled economy Local content high on the agenda in E Africa
East Africa
moves forward
Emerging technologies: redefining possible Continuous integrity monitoring Satcomms - onshore, offshore always online
www.oilreviewafrica.com
Tanzania’s Energy & Minerals Minister, Sospeter Mohungo. See pages 16-26.
REGULAR FEATURES: ■ News ■ Contracts ■ Events Calendar ■ IT update ■ Company profiles ■ Products & Innovations
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■ Geology - p28 ■ Gas - p30 ■ E&P - p32 ■ Technology - p38
Contents
Volume 8 Issue Six 2013
www.oilreviewafrica.com
Africa
Covering Oil, Gas and Hydrocarbon Processing
Europe m10, Ghana CD18000, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12
IEA urges to keep investing China’s massive expansion in Africa
Columns
Tanzania building a gas-fuelled economy
Industry news and executives’ calendar
Local content high on the agenda in E Africa
4
East Africa
moves forward
Emerging technologies: redefining possible Continuous integrity monitoring
Analysis “Keep investing” IEA urges
Satcomms - onshore, offshore always online
10
This year’s WEO report emphasises the danger of complacency in the light of recent developments in oil and gas production technologies and regional shifts in output.
China in Africa
12
Tanzania’s Energy & Minerals Minister, Sospeter Mohungo. See pages 16-26.
China plans to significantly increase the volume of oil imports from the African region in the coming years.
REGULAR FEATURES: ■ News ■ Contracts ■ Events Calendar ■ IT update ■ Company profiles ■ Products & Innovations
Ocean Rig Poseidon with support vessels off Tanzania.
Country Focus East Africa
16
The East African oil patch is becoming more and more crowded with both explorers and those with maturing project plans. Tanzania is sitting upon the third biggest recoverable reserves in sub-Saharan Africa after Nigeria and Mozambique, and is building a gas-fuelled economy. East Africa will be transformed as a result of the new huge hydrocarbon reserves and local content is high on the agenda.
Geology News and developments
28
A round-up of new geological activity from around the region.
Gas Developments
30
Statoil makes fifth high-impact find
Exploration News and developments
32
Mozambique is to launch new bid round in 2014.
Editor’s note IN THE LAST 10 years, East Africa has seen a resurgence from being a quiet industry backwater with minimal exploration success over the previous 50 years, and the preserve of a few small but adventurous junior independent oil companies, to become the “must go to” party of the decade, with everyone from majors to minnows clamouring for a slice of the action. Following the predominantly oil discoveries of the Albertine Rift and Tullow Oil’s recent success in Kenya there is optimism for more Tertiary success in the interior rifts. Meanwhile, the deepwater offshore of the Ruvuma Basin of Tanzania and Mozambique has had phenomenal exploration success over the last four years or so, with some 75 -150tcf of gas discovered but only minimal indications for oil. This issue of Oil Review Africa looks at this market and some of the challenges it is facing. One important aspect is Local Content, focussing on local added value and contribution of the local labour force in the creation of goods and services.
Safety The changing shape of offshore safety solutions
35
Looking at risk factors offshore, and focussing on PyroSentry’s groundbreaking innovation and what this means for the industry as a whole.
38
Technical Focus Emerging technologies: redefining possible
38
New technology advances mean there’s no end in sight for Africa’s booming oil and gas sector.
Continuous integrity monitoring
40
Offshore facilities are always at risk of corrosion or erosion and the subsequent risk of failure......this article looks at continuous integrity monitoring for such facilities.
ICT On-shore, off-shore and always oline: re-defining satcomms
45
How latest developments in mobile satellite communications are helping meet the ever growing challenges in O&G operations.
The power of one per cent
48
GE’s industrial internet is mostly about energy efficiency and taht’s not good news for the oil and gas sector. The CLOV FPSO is a truly remarkable feat of engineering. Managing Editor: Zsa Tebbit - Zsa.Tebbit@alaincharles.com Editorial and Design team: Bob Adams, Hiriyti Bairu, Lizzie Carroll, David Clancy, Andrew Croft, Prashanth AP, Ranganath GS, Rhonita Patnaik, Genaro Santos, Nicky Valsamakis and Ben Watts Publisher: Nick Fordham
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Oil Review Africa Issue Six 2013 3
Industry News & Events
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Executives Calendar 2014 JANUARY 21-23 23-24 27-28
Offshore West Africa Offshore Security in Oil & Gas - Nigeria The Africa Oil & Gas Summit
ACCRA LAGOS LONDON
www.offshorewestafrica.com www.nispana.com/offshoresecurity www.africaoilandgassummit.com
Scramble for Africa Floating LNG Nigeria Oil & Gas 2014 Nigeria Power Tanzania Local Content 2014
CAPE TOWN LONDON ABUJA ABUJA DAR ES SALAAM
www.globalpacificpartners.com www.smi-online.co.uk www.cwcnog.com www.nigeria-power.com www.tanzania-local-content.com
2nd Mozambique Gas Summit Power-Gen Africa 2014 Angola Recruitment Summit Mozambique Recruitment Summit Unconventional Gas Aberdeen 2014 The East Africa Oil & Gas Summit 2014
MAPUTO CAPE TOWN LISBON LISBON ABERDEEN DAR ES SALAAM
www.mozambique-gas-summit.com www.powergenafrica.com www.eliteic.net www.eliteic.net www.unconventionalgasaberdeen.com www.eastafrica-og.com
2014 Emerson Global Users Exchange, Europe, Middle East and Africa Africa LPGtrade Summit Ghana Oil & Gas Summit West Africa Oil & Gas & Pre-Salt Summit CIEHC-2nd Congo Intl Hydrocarbons, Conference & Exhibition 20th Western Africa Oil, Gas & Energy
STUTTGART ACCRA ACCRA LUANDA BRAZZAVILLE WINDHOEK
www.EmersonExchange.org/emea www.cmtevents.com www.cwcghana.com www.westafricaoilgassummit.com www. ciehc.com www.globalpacificpartners.com
Offshore Technology Conference Oil & Gas Libya 2014
HOUSTON TRIPOLI
www.otcnet.org/2014 www.oilandgaslibya.com
FEBRUARY 4 17-18 24-27 24 26-28
MARCH 11-14 17-19 21-23 22-23 25-26 27-28
APRIL 1-3 8-9 8-10 13-15 14-16 14-16
MAY 5-8 12-15
Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.
Expanding West Africa’s offshore potential
Moving Nigerian O&G sector to the next level
THE 18TH ANNUAL Offshore West Africa conference and exhibition will again provide a platform for technology exchange and new business development. Offshore West Africa is the region’s premier technical forum focused exclusively on West Africa’s Offshore West Africa offers a unique offshore oil and gas market. platform to reach your target audience, Ghana is recognised as one of the most with both a world class conference promising exploration regions within combined with the exhibition showcasing the latest technological developments. West Africa, and for the second successive year Offshore West Africa will convey the message of the advancement of subsea and deepwater activities within the region. Offshore West Africa is the only conference and exhibition dedicated to the offshore oil and gas industry in the region. More than 1,500 offshore professionals and key decision makers will attend the three-day event. Over 40 industry experts, including the leading operators and contractors, will share insights on the opportunities and challenges to developing West Africa's expanding offshore potential. The two-track technical programme features presentations from leading operators and contractors on a variety of topics including: 6 Regional trends and challenges 6 Floating production systems 6 Subsea intervention 6 Flowlines and pipelines 6 Deepwater exploration 6 Well construction & drilling operations 6 Operations and logistics 6 Local content
NIGERIA POWER FORUM is new to Nigeria Oil & Gas and will be held in Abuja on 24 February 2014. It is officially endorsed by the Ministry of Power, Federal Republic of Nigeria. The Forum is the leading strategic meeting place for the power sector, promoting effective dialogue between stakeholders and facilitating a platform to attract new investment. Distinguished speakers include Chinedu Osita Nebo, minister of power; Taofiq Ajibade Tijani, commissioner for Energy and Mineral Resources of Lagos State Government; Dr Sam Amadi, chairman/CEO of Nigerian Electricity Regulatory Commission; and Rumundaka Wonodi, managing director/CEO of Nigerian Bulk Electricity Trading. Following this there will be a two-day strategic conference, now in its 14th year, which continues to be the must-attend event in the industry's calendar. Attracting participation from the entire oil and gas value chain, the conference will once again be opened by the minister for petroleum resources, delivering the state of the industry address and featuring leading political figures, NNPC, and national and international industry leaders. There will also be a whole day dedicated to Nigerian local content. The 13th Annual Nigeria Oil & Gas Conference and Exhibition saw record numbers of attendees including government and ministry officials, senior level executives from NOCs, IOCs, independents, banks and service companies. The event was officially opened by Andrew Yakubu, group managing director, NNPC, who commented, “We have progressed with this oil and gas event for the past 13 years. There is no doubt that we have made tremendous progress and [NOG13] is now the largest and this is notable and commendable.”
4 Oil Review Africa Issue Six 2013
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SOUTH ATLANTIC PETROLEUM {SAPETRO) has completed the sale and purchase transaction on Juan de Nova permit with Roc Oil Company Ltd. This follows publication of the approval by the French government transferring the Permit to SAPETRO and its joint venture partner Marex Petroleum Inc on 14 November 2013. SAPETRO agreed to acquire a 90 per cent interest in the licence from Roc Oil in July of 2011. Juan de Nova is a French overseas territory in the Mozambique Channel (administered by Terres Australes et Antarctiques Françaises - TAAF). The Permit, off the coast of Juan de Nova island, covers
an area of 52,990 sq km that contains a substantial portion of new deep water exploration province adjacent to ENI and Anadarko's recent discoveries in the Rovuma Basin. Within months of executing the agreement on the transfer, SAPETRO, as designated operator, conducted a series of carefully executed seismic and geochemical exploration programmes. Following the conclusion of 2-D interpretation works earlier this year, SAPETRO has already conducted a new stateof-the-art geochemical and geophysical exploration programme in October and is currently acquiring 3-
D seismic data on the Permit. The over-7,000 sq km 3-D acquisition programme is scheduled to end in the first quarter of 2014. Commenting on the transaction, SAPETRO’s Chief Executive Officer Martin Trachsel stated: “This official confirmation of SAPETRO’s licence ownership represents a welcome endorsement of our technical prowess from the French government. As operator, we will continue to work closely with the French authorities in our role as a principal player in one of the world’s major emerging hydrocarbon provinces.”
Taleveras, Afren sign new agreement in Côte d’Ivoire AFRICAN INDEPENDENT OIL and gas company, Taleveras, has signed a Memorandum of Understanding (MoU) with the government of Côte d'Ivoire for offshore Block CI-523. The agreement was signed with the Ministry of Energy and Petroleum, the national oil company of Côte d'Ivoire, Petroci and the London-listed independent oil and gas company Afren. Taleveras had also acquired an interest in Afren's CI-525, located near the Ghanaian border. Block CI-523 contains the Ibex oil and gas discovery, while CI-525 covers the Kudu and Eland gas discoveries. Taleveras signed an MoU with Petroci for collaboration in upstream activities in Côte d'Ivoire in July 2011. Since then the company had signed Production Sharing Contracts with Petroci for four exploration blocks offshore in the country.
OneSubsea awarded contract offshore Congo ONESUBSEA, A CAMERON and Schlumberger company, has been awarded a pump systems contract for Total’s Moho Phase 1 development offshore Congo. The scope of supply includes a multi-phase pump station with two 3.5-MW high-boost pumps, a power and control module, a power and control umbilical, and PhaseWatcher subsea multiphase flow meters with Vx technology for pump control. The field is in water depths from 600 m to 800 m. Manufacturing and testing will be at OneSubsea’s Horsøy facility in Norway. This is the company’s fourth contract to provide booster pump systems for Total E&P. “This is our fourth contract to provide booster pump systems for Total E&P,” said Atle Ingebrigtsen, president of the OneSubsea Processing Systems division. “Our experience in delivering more than 25 of these systems will enable us to support Total in increasing the production and extending the life of the Moho-Bilondo field.” www.oilreviewafrica.com
Oil Review Africa Issue Six 2013 5
Industry News & Events
SAPETRO completes transfer of ownership for exclusive Juan de Nova deep sea permit
Industry News & Events
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Heritage and Bayelsa joint venture A WHOLLY-OWNED subsidiary of Heritage Oil has entered into a joint venture (JV) agreement with Bayelsa Oil Company to create an indigenous Nigerian oil company. The new company, named Petrobay Energy Limited, will be based in Yenagoa, the state capital of Bayelsa. Heritage will own a 45 per cent equity interest in the JV, with the rest held by Bayelsa Oil Company, who is itself owned by the BayelsaState government. The JV will look to acquire production, development and exploration assets from international oil companies. Heritage said that through Petrobay it expected to become a significant contributor to "the future development of the oil and gas industry in Nigeria" and would seek to gain access to additional producing fields, both onshore and in shallow water, as well as other licence opportunities in Nigeria. Governor of Bayelsa State, Henry Seriake Dickson, said, "At a time when people are divesting oil assets in this area, no mention is made of our involvement. That era of standing by and non-participation has ended. What we have signed is going to blossom and move from strength to strength and be strong enough to compete favourably with other competitors in the upstream and downstream sectors of the industry. Let me announce to all those stakeholders in the industry that Bayelsa State is ready for active participation in the oil and gas industry." Heritage CEO Tony Buckingham added, "Petrobay will be uniquely positioned to acquire and develop hydrocarbon assets in the Niger Delta, where we can bring exploration and production expertise that, harnessed with the energy and aspirations of the people and state of Bayelsa, will generate value and benefits for all stakeholders. "This alliance reinforces Heritage's commitment to a country with huge potential and the company is well placed to play a significant role in the future oil and gas industry in Nigeria."
Serinus gets cash for Tunisia programme CALGARY-BASED SERINUS Energy has secured a pair of loans worth US$60mn to fund a capital programme aimed at developing recently acquired oil and gas fields in Tunisia. The European Bank for Reconstruction & Development (EBRD) ponied up a senior loan of US$40mn and another loan of US$20mn. The smaller loan can be converted to company shares. "The EBRD played an important funding role in our success in Ukraine where we were able to increase production almost 500 per cent in 40 months and we are very pleased to be able to work on a new project with the bank," said chief executive Tim Elliott. "The investment which we are about to make in Tunisia represents the largest single investment in our company's history. This is not only a reflection of our confidence in the potential of our projects, but also our confidence in the future of Tunisia and its people". Serinus came into being after Polish-owned explorer Kulczyk Oil Ventures bought out Canada's Winstar Resources for US$110mn acquisition earlier this year. The company plans to drill assets in Tunisia using unconventional techniques pioneered in North America such as horizontal drilling and hydraulic fracturing. Its first order of business will be acquiring and processing 3D seismic at the Sanrhar prospect, begining in the first quarter of 2014. It will shoot the Zinnia prospect in early 2015.
6 Oil Review Africa Issue Six 2013
Enventure expands reach in Angola ENVENTURE, THE WORLD’S leading provider of SET solid expandable solutions for the energy industry, has announced a new partnership with ANOJ, an established oil field services representation company in Angola. The partnership was formed to better assist Angola-area operators in the pre-salt market with SET solid expandable tubular technology for use in complex well situations. “The pre-salt market off the coast of Angola is ripe with oil and gas exploration and production opportunities,” said Emilio Grion, general manager, ANOJ. “Enventure is an obvious partner for ANOJ to supply our customers with reliable and expandable solid-steel liner systems given their proven history and expertise helping operators worldwide solve challenging downhole operations.” Angola’s coast mirrors the geological formations of Brazil, yet its pre-salt market is underdeveloped in comparison. The partnership between Enventure and ANOJ provides additional solutions for operators to maximise their well potential through Enventure’s proven contingency systems for depleted reservoirs and patch solutions. “This partnership represents a strategic move to capitalise on ANOJ’s market expertise in this region and will allow Enventure to demonstrate how SET solid expandable technology benefits operators’ return on investment,” said Roger Sambrook, regional manager, Europe and Sub Sahara Africa of Enventure. “Enventure is excited to work with Emilio and his team on this venture and we look forward to the opportunities to support Angola’s ongoing oil and gas development operations.”
Nigeria’s savings dip on lower output NIGERIA HAS BEEN forced to draw down US$1bn from its oil savings as industrial scale oil theft and output disruptions persist in the oil-rich Niger Delta. Nigeria's oil revenue from crude oil sales in October dropped five per cent from an estimated US$3bn to US$2.7mn, the country's finance ministry said. The government budgeted for oil sales of 2.53mn barrels and oil price of US$79/barrel, which should have allowed for substantial savings in the Excess Crude Account -- which acts a cushion for actual oil income and budgeted one. Revenues above the benchmark price in the budget are paid into the account and split between the federal government and the state and local governments. Instead, the Excess Crude Account has dwindled from US$10bn last December to US$3bn as the government draws down funds to compensate for the drop in revenue as a result of lower production. Output has been hovering around 1.9mn bpd for most of the Pipeline sabotage, illegal bunkering and year, the lowest level in large scale theft is common. four years. "The total funds available for distribution [among the states] have been adjusted [accordingly] ... We are grateful to President [Goodluck Jonathan] for his magnanimity in the approval of this US$1bn [for the states]," the ministry stated. Nigeria is currently losing about 400,000 bpd of oil production due to pipeline sabotage, illegal bunkering and large scale theft, government officials have said.
www.oilreviewafrica.com
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Energizing a refinery to protect its most valuable resources. People.
Follow the Charge Safe, dependable power is critical to a successful refinery operation. Equally critical is the safety of the crews working in these highly powered environments. That’s why Valero, a leading manufacturer of petrochemical products, made personnel safety a top priority when they chose to upgrade one of their more complex, 24/7 process refineries. And they chose Eaton to help. Valero demanded proven arcpreventative motor control center technology to lower the probability of electrical shock and reduce incident arc flash energy during
eaton.eu/followthecharge/m4 ©2013 Eaton. All rights reserved.
»
maintenance. Eaton rose to the challenge. For this critical project, Valero chose Eaton’s FlashGard ® motor control centers (MCC). The first MCC designed specifically to prevent arc flash. Unlike conventional designs, FlashGard allows for closed-door maintenance operations. Providing a much-needed barrier to protect personnel and equipment from the dangers of arc flash. The heavy power capabilities and safety systems needed to fuel tomorrow’s world, calls for solutions today. Eaton is already there.
Industry News & Events
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Regulatory consistency key to successful oil and gas development in Africa THERE’S BEEN A tendency in Africa to change the rules of the oil and gas regulatory game following major discoveries. “A risk for investors is that once discoveries are made it is not uncommon to see changes to oil and gas legislation,” noted Lizel Oberholzer, head of oil & gas at pan-African corporate law firm Bowman Gilfillan. In Mozambique the legal and fiscal regime for exploration and production is under revision. Earlier this month a new production sharing contract was introduced in Tanzania, and Uganda passed new petroleum legislation in April this year. South Africa is currently in the process of making significant amendments to the laws governing oil and gas exploration and production. Oberholzer said that the concern for investors is that if the rules of the game change, projects may no longer be viable despite millions of dollars having already been spent. “It is important from an investor perspective that changes to the fiscal and regulatory regime should not apply retrospectively, but should apply only to new applicants. “In order to benefit from vibrant oil and gas industries, governments must determine
their public policy objectives and implement laws and ‘local content’ policies that incentivise companies without undermining the viability of projects.” In Mozambique, examples of local content policies include employing Mozambicans and carrying out training programmes. Amongst others, Tanzania requires companies to purchase Tanzanian goods and services where possible. State participation in revenues from oil and gas projects is a hotly contested subject. In South Africa oil companies are granted exploration and production rights by the State in terms of which the companies bear the risk and are responsible for financing the large upfront investment required for exploration. In turn, they are entitled to ownership of the resources they discover, subject to a 10 per cent ownership interest in the right which is reserved for the State and a 10 per cent ownership interest that must be made available to historically disadvantaged South Africans at market related prices. The State is also entitled to taxes and royalties at prescribed rates. However, the government is presently
Petrofac makes Nigerian collaboration agreement PETROFAC, THE INTERNATIONAL oil and gas services provider, together with African independent oil and gas company Taleveras Energy Resources Limited , have announced that they have signed a five year Memorandum of Understanding (MOU) for cooperation with the Nigerian Petroleum Development Company Ltd (NPDC), a wholly owned subsidiary of the Nigerian National Petroleum Company (NNPC). The MOU, which is extendable, allows the parties to explore options including funding, technical support, training services, and asset development/management support on a risk service contract, production enhancement or similar contract basis, to support NPDC’s aims to further build indigenous capacity and technical capabilities of NPDC and its affiliates. The MOU has been reached as part of the ongoing promotion of the Nigerian Oil and Gas Industry Content Development legislation. The parties also announced that, as an initial result of this strategic collaboration, Petrofac has, together with Taleveras, agreed with NPDC to provide financial, technical, and capacity and capability building support for the further development of NPDC’s offshore block OML119 in a risk-based support agreement, whereby reserves and license ownership are retained by NPDC.
8 Oil Review Africa Issue Six 2013
considering a change to the legal regime in terms of which the State would significantly increase its interest in oil and gas projects through the use of production sharing agreements. Said Oberholzer: “Whether the benefits sought from these kinds of fiscal and local content policies and laws will ultimately be achieved depends on a number of variables within each country, such as monitoring and implementation, the capacity of the economy to deliver the skill set required by the industry and the extent to which the economy is reliant on extractive industry exports, among others.” Megan Adderley an associate in the oil & gas department at Bowman Gilfillan said that: “It is important that sufficient environmental protections be put in place as it is usually the most vulnerable in society who bear a disproportionate cost when pollution and degradation occurs.” “It is therefore important for governments, communities and the industry to work together to achieve the best outcome, and the development of new downstream opportunities.”
Ghana’s ambitious gas project deferred GHANA’S INTENTION TO use gas from her offshore Jubilee oilfield to generate electricity has run into another problem effectively postponing the completion date of the gas infrastructure from December this year to April 2014. The country already lacks adequate energy to propel her industrial growth as she currently produces just a little over 2,000 MW, inadequate to meet the ever-increasing domestic and industrial demand. Based on this reality the government decided to spend US$850m out of the US$3bn loan sourced from China Development Bank, CDB, to develop the gas infrastructure in the Western Region to power the existing thermal plants and those yet to be set up. However, the initial hiccup of funding and an accident involving a cargo vessel bringing in equipment for the infrastructure have dragged the completion date into the future. The gas infrastructure project involves laying a pipeline from the Jubilee field to onshore, construction of a processing plant able to process 150mmcf of gas at Domunli, and construction of a 120-km pipeline to transport the processed gas to Aboadze. Technip, early this year, constructed the 14-km deepwater stretch of the gas pipeline from the Jubilee field, using the Apache 11 drillship, under a contract awarded by GNPC, while Intecsea-Worley Parsons Atlantic completed the FEED for the 36km shallow water pipeline. There are high expectations for the gas infrastructure to be in place in a timely manner by the time it becomes no longer safe to re-inject the gas into the field’s reservoir. Deputy Minister of Energy and Petroleum John Abdulai Jinapor reiterated the government’s determination to see this project completed on schedule as Ghana's thermal energy sector will in the near future rely mainly on the resource as a source of fuel. For now Ghana’s thermal power generation plants continues to rely on the more expensive light crude oil and in some cases, diesel, which does not make both economic and strategic sense. www.oilreviewafrica.com
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Analysis
This year’s WEO report emphasises the dangers of complacency in the light of recent developments in oil and gas production technologies, and regional shifts in output. Africa will remain central to the maintenance of security of supplies.
“Keep investing”
IEA urges N
OT A LOT was said about Africa specifically at the launch of the International Energy Agency’s (IEA) World Energy Outlook 2013 on 12 November. The main theme was the impact of technology on releasing new resources of energy generally; unusually, the key question posed about oil was “Should we worry about scarcity, or abundance?”. For Oil Review Africa readers, the key figures released in the latest 680 page-plus WEO - effectively the main consumers’ group annual report relate to the IEA’s predictions of regional OPEC members’ likely annual production totals over the next 20-plus years. These are the forecasts, in millions of barrels per day (mbpd, conforming to the IEA’s standard “under new policies” - ie, common sense - scenario). As can be seen there’s not much room for growth, but at least the price outlook is bullish.
Algeria Angola Libya Nigeria
2012 1.8 1.9 1.5 2.6
2020 1.7 1.6 1.6 2.4
2025 1.7 1.5 1.7 2.5
2030 1.7 1.4 1.8 2.6
2035 1.8 1.4 1.9 2.8
Future security conditions in Nigeria are fundamental to this positive outturn, the Agency says, as well as the discovery and development of major new deposits, “the best hope for which probably lies in pre-salt formations”. “Below the salt” is a driller’s term imported from Brazil; this finding reflects the South American focus of much of this year’s report. Outright theft and general unrest continue to dog releases to the legitimate world market from Nigeria, although last year’s start-up of the deepwater 160 kb/d Usan field was a major step forward. Other offshore developments there are proceeding slowly, the Agency says, largely due to uncertainty about the terms of the long-coming Petroleum Industry Bill.
NOCs and their host governments still control well over three-quarters of the world’s proven-plus-probable reserves. Angola’s output to rise Angola’s output is expected to rise in the short term as the Saturno project (BP) comes into production which, with other positive moves, should offset decline at rapidly maturing Girassol. “But this bearish outlook could be transformed if ongoing exploration drilling proves up large pre-salt reserves”. Both Libya and Algeria are expected to have difficulty boosting output over the longer term unless investment in exploration activities receives a boost in the North. The current abundance, so often attributed to US developments, has only actually been achieved by Saudi substitution for the shortfall in Libyan supplies, in turn caused by this year’s sharp downturn in the security situation there. Algeria’s production has been on the way down for several years because of over-reliance on mature fields and insufficient investment in drilling. The security events of January last did not help this situation either. The authorities in Algiers are lending
10 Oil Review Africa Issue Six 2013
support and raising Sonatrach’s capital budget over five years to compensate, so production is expected to remain at best steady through 2035, in part helped by developments of unconventional resources and technologies, for which this Maghreb country has long had a good reputation. Libya’s production rebounded to around 1.5mn bpd last year, but the current security situation there is “clouding the near-term outlook”. Prospects beyond this “hinge on developing a larger part of the reported reserves”, and the IEA points out that the new administration is planning a licensing round covering new developments both on- and offshore. The Agency expects production at around the early-2013 level through 2020, then increasing slightly over the next decade and a half “on the assumption of increased political stability and increased investment.” These are the local OPEC developments; not those relating to the whole of Africa of course. On the role of the Organization generally in “quenching the world’s thirst for oil”, the IEA expects this to be reduced over the next 10 years due to rapid growth of supplies of various grades/origins from the USA, Canada and Brazil, and of natural gas liquids generally. But the key share of OPEC countries in global output, and therefore in worldwide security of supply of the number-one fuel, is assured nevertheless. And especially beyond 2020, the IEA says. An in-depth focus on oil generally is a major component of this year’s WEO. These chapters look at how technology is opening up new types of resource such as light tight crude and the reserves within the ultra-deep pre-salt fields. It was only relatively recently that these were considered too difficult or costly to access, it points out. The report also examines how, despite the “unlocking” of such new resources, NOCs and their host governments still control well over threequarters of the world’s proven-plus-probable reserves. Meanwhile the IEA notes how and why the pace of demand growth will continue to slow steadily and significantly, from an annual average of 1mb/d through 2020 to just 400kbpd thereafter, despite buoyant consumption in both Asia and the Middle East. This has major implications for the location of refining activities, the Agency says. ■
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Analysis
China plans to significantly increase the volume of oil imports from the African region in the coming years, amid the ever declining national oil reserves and the ever growing demand for oil within the country.
China to implement massive expansion soon
in African oil industry I
N 2008 THE volume of oil consumption in China reached 7.8mn barrels a day, with the volume of domestic production no more than four million barrels. At the same time, by 2013, these volumes almost doubled, due to the growth of the Chinese economy. The volume of the country’s domestic oil reserves remains small, being unable to meet the ever growing needs of the country. This has forced the Chinese government and the country’s flagship oil companies, among which are state-run China National Petroleum Corp and its rival Sinopec, to gain a foothold in Africa and establishing regular oil supplies from the region. According to Cao Syanhun, chief engineer of Sinopec, one of China’s largest oil producers, the acceleration of expansion in the African region is part of the national state strategy for the increase of Chinese oil reserves. According to him, the Chinese government has been forced to implement such a strategy, due to rapid depletion of domestic oil fields, which according to analysts’ predictions, will decline by up to 57mn tonnes by 2020. If in the past China met up to 60 per cent of its annual oil needs by supplies from the Middle East region, than at present the share of Middle East imports in China’s overall structure of imports is steadily declining, in favour of imports from Africa, which already account 25 per cent and continue to grow. At present China buys about nine per cent of African oil, which is however still lower than the US and the EU, which imports 33 per cent and 36 per cent respectively. Until 2000, China’s presence in Africa’s oil industry was restricted to just Sudan, where the state-owned China National Petroleum
The Chinese and foreign employees of Sinopec in Africa are learning development vision and the concept of environmental protection.
12 Oil Review Africa Issue Six 2013
Corporation (CNPC) has been a major stakeholder in the Greater Nile Oil Project Company (GNOPC), alongside Sudan’s Sudapet, Malaysia’s Petronas and the Indian Oil and Natural Gas Corporation (ONGC) Videsh since 1997. Today Chinese oil companies are operating in nearly 20 African countries in both the upstream and downstream sectors. Currently China puts big hopes on its further expansion in the African oil market, considering it as one of the world’s most promising. Up to 14 per cent of total supplies of African oil to China come from Angola, which in recent years has overtaken Saudi Arabia as the largest supplier of oil to China. At the same time, in the case of Angola, currently China remains the biggest buyer of its oil, with the share estimated at about 37 per cent. The second place is occupied by the US.
China puts big hopes on its further expansion in the African oil market, considering it as one of the world’s most promising. Sinopec buys stake in Angola The Angolan projects are carried out by the China Petrochemical Corp (Sinopec), China’s leading oil producer and one of the leading in the world. Earlier this year the company purchased a 10 per cent stake in a BP-operated Angolan offshore oil and gas field from Houston-based Marathon for US$1.5bn. The purchase has increased China Petrochemical’s stake in Block 31 to 15 per cent, with China Petrochemical having bought a five per cent stake from France’s Total SA in 2011 for US$983mn. The transaction will add 14,600 bpd of oil for China Petrochemical. This is the second large deal signed by Sinopec over the last few months. In March, the company reached an agreement to buy a US$4.2-bn stake in a Mozambique offshore natural gas field. At the same time the company already holds stakes in oil projects in Gabon and Cameroon and last November finalised an
Sinopec's offshore production platform located offshore Angola.
agreement with Total to acquire a 20 per cent stake in an offshore Nigerian field. In the latter case, as a result of the transaction valued at US$2.46bn Sinopec got access to about 100mn barrels of proven reserves in the OML138 block in the waters of the Niger River Delta basin. As for Cameroon, the Chinese comnpany has recently announced that it discovered six new oil and gas resources in Rio del Rey Basin, Iroko Block, and Padouk-1X exploration well. Recoverable resources from these blocks are approximately 20mn barrels of oil and 200 bcm of gas.
Gabon climate less favourable At the same time, in contrast to Nigeria and Cameroon, the investment climate in Gabon is not so favourable for Sinopec. In recent weeks the Chinese company has been faced with serious problems doing business in this country, as the Gabon government plans to seize an oil field from China Petrochemical Corp’s Addax Petroleum, due to the company’s refusal to revise a contract on conditions, proposed by the Gabon government. According to the Gabonese oil minister Etienne Ngoubou, the government will not renew Sinopec’s license at the Tsiengui field because the Chinese company had breached the law. Moreover the minister has also added that the government is even reclaiming Sinopec’s main onshore site - the Tsiengui field in 2015. In addition to the above-mentioned countries, particular attention from the Chinese oil corporations is being paid to Sudan, where the production of oil in recent years has significantly increased. Currently China imports about 50 per cent of Sudan oil and in particular that which is produced in South Sudan.
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Analysis
S04 ORA 6 2013 China_Layout 1 12/9/2013 1:00 PM Page 14
Addax's offshore platform in Cameroon.
China was the biggest buyer of South Sudanese oil before South Sudan halted production in January 2012 after accusing Sudan’s government of stealing US$815mn of its crude, and Chinese state firms are the biggest oil operators in the recently established country. At the same time South Sudan, on 12 March, agreed to restart pumping crude after the two nations resolved the dispute over transit fees. In addition, there is a possibility that China may significantly expand its presence in Nigeria in the coming years. The possibility of the increase of oil production in Nigeria was discussed during a recent visit to China of Nigeria’s President Jonathan Goodluck. At present Chinese companies produce
about 20,000 barrels of oil per day in Nigeria, but have plans to increase production up to 200mn barrels by 2015. This will still be significantly lower than the production volumes of ExxonMobil in the country, which are estimated at 900,000 bpd, and Shell with more than 600mn barrels, but will allow China to secure stong positions in the Nigerian oil market. The more so that the export of oil makes up 80 per cent of Nigeria’s revenue and 95 per cent of the country's income in foreign currency. After the United States, China became the world’s second largest country in terms of oil imports from Equatorial Guinea, ahead of Spain and Japan. Various Chinese companies made oil projects in the south of Kenya, in the Sahara Desert in Algeria, Côte d'Ivoire, Nigeria, People's Republic of the Congo, in Northern Namibia and Ethiopia. According to Fu Chengyu, CEO of the China National Offshore Oil Corporation (CNOOC), the company plans to gain benefits on the growing interest in the continent among explorers due to high oil prices and growing energy nationalism elsewhere. In Kenya, the company is seeking a stake in Tullow Oil, which is drilling oil in Turkana. At the same time CNOOC has recently also
Sterling gets government consent for Madagascar farm-out OIL AND GAS junior Sterling Energy has received consent from the Government of the Republic of Madagascar for a farmout transaction involving its production sharing contract over the offshore Ambilobe Block. The farm-out agreement, which has now been executed, sees Sterling retain 50 per cent of its interest in the Ambilobe Block, while Pura Vida Mauritius has acquired the other 50 per cent of the block. Sterling executive chairman Alastair Beardsall commented in a company statement: "We are very pleased to complete the farm-out process. The Ambilobe area is considered to be highly prospective, but remains largely unexplored. We are planning to acquire new seismic data as part of our 2014 work programme to further investigate the potential of the Ambilobe Basin. Sterling's share of the seismic costs will be paid by Pura Vida." Pura Vida sees the Ambilobe block as having a variety of plays relating to salt with potential for large scale oil discoveries. Pura Vida's depth of knowledge relating to salt basins and how best to explore them makes the Ambilobe block a natural addition to the company's offshore assets in Morocco and Gabon.
14 Oil Review Africa Issue Six 2013
There is a possibility that China may significantly expand its presence in Nigeria in the coming years. expressed interest in investing in Uganda's oil refinery and a crude export pipeline. In addition, CNOOC, together with Tullow Oil and Total, is in the process of developing Uganda's oil fields in the Lake Albertine Rift basin. The three companies are expected to invest more than US$12bn to develop the oil fields, which are believed to contain as much as 3.5bn barrels of crude. Analysts believe that Chinese positions in the African oil and gas industry will only be strengthened in the post-crisis years. Among the reasons for this will be the ongoing financial crisis in the EU countries and the slow pace of industrial recovery in Western Europe and the US. According to predictions by Bloomberg, China’s investment activities in Africa may rise by 70 per cent to US$50bn by 2015 from 2009, as the Asian nation seeks to acquire resources and in particular oil fields with the aim of further increase of imports. ■
Tangiers makes off-market takeover for Jacka TANGIERS PETROLEUM HAS made an off-market takeover bid for Jacka Resources that values the latter at about US$37mn. Upon completion of the transaction, existing Tangiers shareholders and Jacka shareholders will own approximately 53 per cent and 47 per cent, respectively. Tangiers will provide Jacka with a US$2.5mn standby loan facility to assist its funding in the first quarter of 2014. The combined company will have a strong portfolio of highly prospective exploration, appraisal and development assets in Africa. These include two high impact wells planned for 2014 – the TAO-1 exploration well in the Tarfaya block, Morocco and the drilling and testing of Hammamet West-3 sidetrack 2 in Tunisia. It will also have exposure to a promising near-term offshore Nigerian development project in Aje (OML 113) where the joint venture plans to complete the field development plan by early 2014. Aje is adjacent to Afren’s recent Ogo discovery that has recoverable resources of 774mn barrels of oil as well as a new, deeper hydrocarbon-bearing zone. The combined entity will also have significant positions in early stage acreage in Somaliland and Tanzania.
GAIL to buy stake in Ophir’s gas assets STATE-RUN GAS company GAIL India Ltd is in talks to buy a stake in Ophir Energy’s assets in Tanzania, the company’s marketing head, Prabhat Singh has said. GAIL is keen to buy part of Ophir Energy’s remaining 20 per cent stake in blocks 1, 3 and 4, which holds an estimated 15 tcf of gas reserves in Tanzania. “We are in talks irrespective of Singapore’s Pavilion Energy reportedly buying half of Ophir’s stake. We continue to be in dialogue,” Singh said. The New Delhi-based gas firm may buy up to 30 per cent of the stake for an estimated US$600mn. Ophir Energy, a UK oil and gas explorer in Africa, has been seeking partners to share costs in Gabon, Equatorial Guinea, Kenya and Tanzania after exploration was slower than forecast. www.oilreviewafrica.com
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East Africa
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The East African oil patch is becoming more and more crowded with both explorers and those with maturing project plans. However issues of political risk and uncertain international co-operation are resurfacing more overtly than before. Sam Ciszuk looks at how the region is moving forward, albeit with two steps forward and one back.
East Africa moves
forward E
AST AFRICA HAS emerged as an oil destination only in the last five to seven years, but it is still only in the last three years or so that most of the industry’s perception that it remained a marginal play, interesting only for a handful of small independents, has shifted. Recent significant discoveries, particularly in Kenya, is what seems to have broken the last vestiges of scepticism, showing that the discoveries first made on the border between Uganda and the Democratic Republic of Congo actually are a part of a much larger hydrocarbon-bearing area. The picture extends further, beyond the oil discoveries in Uganda, north western Kenya and the relatively well known South Sudanese reserve potential, with the - mainly gas - discoveries made in the past few years offshore Tanzania and Mozambique.
So far, there has been relatively little of the highlevel political pressure to up government take in Uganda and Kenya. Oil, however, tends to fuel popular imaginations more than gas. It is well known and indeed intuitively understood that oil is the easier-tomonetise good of the two, and oil booms are popularly credited with having brought wealth to several oil exporting countries in recent history. Moreover, despite plenty of evidence to the contrary, the oil industry keeps being seen as a relatively low-tech industry capable of bringing many jobs to areas with an ill-educated workforce, or even as something which local outfits could develop without much previous experience. Dangerous notions like these – to the successful development of greenfield discoveries - tend to pop up in new oil regions, together with political kneejerk reactions to radically raise government take and control. This is not only the case in underdeveloped countries with weak institutions, but can often also be seen in developed economies. A recent example is the political pressure to rewrite government take legislation in Israel, following the giant offshore Leviathan field gas discovery, or similar discussions in Australia and Brazil, to tax the countries’ respective gas and oil companies higher. So far, there has been relatively little of the high-level political pressure to up government take
16 Oil Review Africa Issue Six 2013
The Weatherford Rig 804 during drilling operations on the Twiga South-1 well, onshore Kenya.
in Uganda and Kenya. In the former, though, political pressure has been the key culprit behind the multiple-year delays, caused by the government’s insistence on capturing more value through refining all of the future production indigenously, as well as to mete out some more particular one-off taxes, like the capital gains tax sought from Heritage Oil upon its divestment. Instead, recently, more local pressures for access to the wealth-creation of the oil industry, or at this stage rather its perceived potential for wealthcreation, have manifested themselves. Tribal unrest in north western Kenya recently forced regional pioneer Tullow Oil to suspend work, after several protests around their two exploration blocks - Block 10BB and Block 13T - escalated into security incidents. Local population groups were demanding increased employment opportunities, but there have also been reports that the recurring violent cattle raids normally perpetrated across the border from South Sudan and northern Uganda into neighbouring territories in the last few months showed some tendencies to target oil companies and their equipment. While an obvious source for worry, the somewhat higher risk perception in the area has to be compared to political risk in many other parts of the continent, where exploration takes place under much more fundamental threats, or in the case of Nigeria, where producing assets and infrastructure in many cases has to contend with almost extreme threat levels. With that in mind, Kenya and Uganda remain stable, although,
with Kenyan standards, the large-scale violence in the aftermath of the 2007 election, does linger in most people’s minds still.
Progress being made Delays caused by political wrangling over government take in Uganda and emerging security threats in Kenya have however not come close to actually derailing what is set to become a very important entry of both countries to the international club of oil exporting countries. Kenya is further down the road and much of its hopes are still potential which needs to be converted into proven reserves, but progress is definitely being made. In fact, any expectations of a smooth ride in countries completely lacking any upstream oil infrastructure and experience would have been highly unrealistic. The next large issue which will need to be resolved is however one which will test the whole region’s capabilities for international cooperation, as well as political and commercial foresight. As development projects in Uganda are starting to get seriously off their starting blocks, an export route will have to be chosen and the more the route ends up being a fruit of international cooperation in the wider region, the more profitable it is likely to be for all sides. Crucially, it is not only Uganda which needs to decide on a main export pipeline route. Now there is an agreement with Total and China’s CNOOC to export most of their future production and only build a smaller domestic refinery than the one the
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East Africa
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Working on the Mtwara gas pipeline.
Ugandan government had pushed for. South Sudan is in the market for an export pipeline bypassing northern neighbour Sudan, with which it continues to have a very troubled relationship. At the same time, it is looking more and more certain that Kenya will, in a few years’ time, have significant commercial oil production in its northwestern regions, close to both the Ugandan and South Sudanese borders. That there could be synergy effects, particularly given that South Sudan brings comparatively large existing production capacity to the table, should be apparent to all.
Pipeline politics remain a complex subset of international politics. Yet, pipeline politics remain a complex subset of international politics and incorporate concerns over with whom to enter into long-term strategic relations and co-dependencies. It often separates projects from their pure commercial rationales to quite a degree. South Sudan is currently studying two routes, one to the southeast, through Kenya, either to the port of Lamu, or to the more southern Mombasa port. The other route would go over the Ethiopian highlands and reach the shore in Djibouti, on the Strait of Musandam and Gulf of Aden, connecting the Red Sea with the Indian Ocean. Given the location of the South Sudanese oilfields
in the north, northeast and central parts of the country, the Ethiopia-Djibouti route is geographically somewhat shorter, but likely to be more costly due to the elevation of much of the Ethiopian highland which has to be crossed. Moreover, the Gulf of Aden is calm now, given the large international naval convoying operation, but the core problem of extreme levels of Somali piracy could well return if the naval operation is scaled back in the future.
A multinational pipeline deal? A pipeline to Lamu or Mombasa has the potential of being cheaper in total, but even more so, of being in part funded by Ugandan and Kenyan interests. A multinational pipeline deal, would mean that a large pipeline and Kenyan export terminal could be built through Kenya into which Uganda and South Sudan would link. Then when Uganda, and later Kenya, ramp up their production and possibly develop further new capacity, it could from the start be supplied with 200,000-300,000 bpd of South Sudanese baseload capacity, benefitting the project’s economics. Yet, particularly for South Sudan, there are other concerns, some of which are to connect itself closer to its large eastern neighbour Ethiopia in order to balance Sudan from a geopolitical point of view. With that in mind, the currently studied route for the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) pipeline includes a stretch over Ethiopian territory. However, it will not pass through, or even close to, any of Ethiopia’s main oil demand centres, thereby not economically benefitting its wider economy, nor securing a close regional market for South Sudan’s crude. South Sudan also faces a relatively high maturity level at many of its oil fields, which means that there is a serious economic case for keeping costs down, mending fences with a Sudan which is in bad need of the transit fees, and continuing to use the existing (now - due to natural decline - over-dimensioned)
pipeline from South Sudan to Port Sudan. Whether it is achievable after decades of antagonism, is however very hard to predict, but threats of building an alternative pipeline and permanently sever an important source of Sudanese income could well help focus minds in South Sudan’s northern neighbour. Uganda seems for now to have swung in favour of linking up to a trunk pipeline somewhere in north-central Kenya, after having studied routes through Tanzania to the Indian Ocean, but much can still happen. It is now widely accepted to regard as realistic that Uganda and Kenya in a few years’ time will produce 500,000 bpd of crude and that is before much of the region surrounding the current oil discoveries has been thoroughly explored. No wonder than, the region is hot in the industry’s eyes and drawing attention in both positive and negative ways. While uncertainties abound, both in a project sense, as well as in a political/security sense, IOCs are used to handling far more challenging situations. In fact, most oil companies probably find the challenge of exploring, constructing and managing projects in an underdeveloped area with no previous oil industry experience and know-how the most challenging part. The other politico-societal uncertainties can be managed, to the extent they are manageable at all, by the companies. If not, then they are often seen as something the industry needs to adapt to and adaptation is another well-honed - but often overlooked - skill of the oil industry. Since the emerging oil region’s next step forward seems to be decided by the levels of international cooperation it can achieve, it is likely that the oil companies’ government relations departments are doing what they can to encourage and help facilitate that too, in order to be proactive and evade new costly delays and sub-par solutions to what should really become quite a success story towards the end of this decade. ■
East Africa: an oil and gas boom with big challenges THE 20TH AFRICA Oil Week, the world’s longest standing oil and gas event for Africa’s oil industry, has celebrated its 20th anniversary in Cape Town. More than 1,500 delegates from six continents attended during the week where issues over managing Africa’s energy resources were a lead topic. East Africa has been at the forefront of new oil and gas discoveries over the last 12 months. But a number of challenges remain to be overcome, not least over security and community awareness before the new reserves can be brought into production. Tullow Oil, a leading independent, admitted misunderstandings with the local community of the Turkana region in Kenya had led to a shutdown of its operations. Officials at the meeting explained how it had been necessary to accelerate agreements with the local residents at an earlier stage than would normally have been the case. Tullow’s suspension of work highlights the challenges companies face in satisfying both local and national expectations in environments such as they find in the Turkana Basin, where possibilities of oil development seemed so unlikely a short time ago. Uganda’s oil discoveries were enthusiastically unveiled in 2006 but tensions today are simmering over land conflict among the people living in
18 Oil Review Africa Issue Six 2013
the oil producing regions of Bunyoro and Acholi. Yet, estimated reserves of 3.5bn barrels have the potential to double the country’s economy. But for the oil-yielding community, better road and rail networks, education and employment opportunities top the agenda. In Tanzania, where BG and Statoil have struck gas, violent protests have hit the southern Mtwara gas-prone region with local residents demanding a greater share of the oil wealth, as well as more access to electricity and other amenities. Mozambique rebels have rattled investors after a surge on attacks that echoe the civil war that ended two decades ago. The violence that pits the two old adversaries against each other – the opposition group Renamo and the Frelimo ruling party – is largely confined to Sofala, the central province. But Mozambique’s fast growing economy bolstered by reserves of natural gas and coal could suffer if political tension and sporadic violence persists in this strategic location. Managing East Africa’s newfound oil and gas wealth is of critical importance at this stage of the development of these resources. Governments and the companies need to work together to ensure that local stakeholders’ interest are adequately addressed in order to avoid the sort of situation that has plagued Nigeria’s Niger Delta for so long.
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Tanzania
Tanzania is sitting upon the third biggest recoverable reserves in sub-Saharan Africa after Nigeria and Mozambique. Moin Siddiqi discusses the latest developments and plans for the future.
Building a gas-fuelled
economy R
ECENT IMPRESSIVE LARGE finds have put Tanzania firmly on the global energy map. BG Group notes that ‘Mafia and Rovuma Basins’ off the coasts of Tanzania and Mozambique “is one of the most significant exploration plays for the company. People are looking at the region and the run of successes is starting to gain momentum Depending on the size of fields there’s potential for [liquefied natural gas] and export markets to the Middle East and Asia.” Knut Dalland, country manager of Norway’s Statoil agrees: “Tanzania is in a formidable position. We have only scratched the surface.” So far, 40 trillion cubic feet (tcf) of gas deposits have been found in the waters off Tanzania, equivalent to nearly all of India’s gas reserves (47 tcf), whilst exceeding both Oman’s (33.5 tcf) and the Netherlands (36.7 tcf). The Ministry of Energy and Minerals estimates that total resources could be as much as 200 tcf within two years. However, this figure refers to ‘probable’ reserves (2P-1P) mostly in deeper or ultra-deep waters, with the bulk lying in the Rovuma Basin. Thus, the need for both capital spending and sophisticated technologies to unlock huge quantities of ‘stranded gas’ (ie, gas reserves that have been discovered but remain undeveloped because of physical or economic factors). BP and Shell first started exploration along the Tanzanian coast during the early 1950s. Geologists found that some 100 stratigraphy shallow boreholes drilled over 1952-1964 revealed evidence of sealing, reservoir and source rock combinations, which were similar to other hydrocarbon-rich provinces. But a lack of technical know-how half a century ago prevented further work, including deepwater drillings. However, the pace of exploration activity has accelerated in recent years, thanks to new technology – including the use of ‘threedimensional’ seismic mapping techniques for locating [untapped] deposits of stranded gas in deep and ‘ultra-deep waters off East Africa. Hence, geologists can now confirm the presence of significant recoverable gas resources in the region – similar to West Africa. The promise of a natural gas bonanza continues to attract foreign energy majors: Royal Dutch Shell, US’s ExxonMobil, Italy’s ENI, Norwegian stateowned Statoil, BG Group and Brazil’s Petrobras, as well as independents such as Anadarko, Aminex, Heritage Oil, Cove Energy and Dominion Petroleum and Ophir Energy, among others. British Gas and
20 Oil Review Africa Issue Six 2013
Statoil have had the most success in offshore Tanzania thus far, each finding over 10 tcf of recoverable gas resources.
Joining the LNG club The East African country is strategically located to export liquefied natural gas (LNG) to ‘energy hungry’ Asian markets, notably India. But it lacks export infrastructure for gas transportation (i.e. platforms, storage terminals and pipelines) as well as processing capacity to convert stranded gas into LNG. Concurrently, huge investments are required for developing midstream and downstream capabilities before shipping LNG to Asia or elsewhere. The UK-based energy consultancy Wood Mackenzie explained the region is remote – it has “no skilled workforce and will have to build deepwater ports capable of servicing big tankers”. Total costs of building core segment of gas-related industry, including upstream sector are estimated at US$40-60bn. Statoil and BG Group have reached an understanding with the government for building an ‘onshore’ LNG facility (estimated cost US$10bn) - requiring feedstock of some 15 tcf over a 20-year period. A final investment decision is expected in early-2016. The majors are expected to commission two trains to handle production from Statoil’s Block-2 and BG-operated Block-1. Statoil noted it’s a mega project with a big offshore element, pipelines to onland and a huge onshore development. The start dates could fall between 2021 and 2023. As one executive put it: “Tanzania and Mozambique are neck-and-neck and the one to build the first LNG facility will have better opportunities”. The biggest uncertainty facing [all] potential gas exporters is the longer-term outlook for global LNG market. Estimates from Wood Mackenzie showed an oversupply of LNG by 2020, as global supply exceeds demand by about 100mn tonnes/year. Similarly, IHS’s LNG prospects also indicate global liquefaction capacity will surpass demand, with the gap widening by 2017 and thereafter. Chevron on the other hand predicts that global LNG demand will exceed supply by about 120mn tonnes/year by 2025. On balance, rising capacity may be a feature of LNG market during later part of the 2020s and possibly early 2030s. The growth of global liquefaction capacity and demand depends chiefly on shale gas production in the US, growth in LNG supply in various regions (particularly in North America, Australia, the Middle East and Africa), regional LNG offtake growth
Statoil has had huge success in offshore Tanzania.
(notably in Asia Pacific), the expansion of LNG in transportation sectors, fuel price differentials, the expansion of technologies and related infrastructure. Given such uncertainties, analysts believe that project start-dates are critical for new LNG producers because a string of LNG projects in diverse regions are due online over the next decade. The US Energy Information Administration (EIA) advises Mozambique and Tanzania to focus on securing long-term LNG contracts and/or sell stakes in their LNG projects to Asian investors that are major LNG buyers, which could explain ENI's reason for divesting a stake in its Mozambique license to China National Petroleum Corp (CNPC). The Asian appetite for East African gas is considerable. “It’s very important for Asian customers to secure gas free of the Strait of Hormuz risk,” explained Pascal Menges of Londonbased investment firm, Lombard Odier
The pace of exploration activity has accelerated in recent years, thanks to new technology. Scope for industrialisation Amid an uncertain outlook for global LNG market, fledgling producers should look at different ways to monetise their natural gas alongside existing LNG schemes. As in other gas-rich countries, Tanzania too boasts potentials for industrial development, thereby adding ‘greater value’ to fossil fuels. Various options include setting up methanol plants, as methanol is a feedstock to several industrial chemicals and a fertiliser industry, which, in turn, will help diversify Tanzania’s export base – currently dominated by gold and minerals.
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East Africa
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East Africa will be transformed as a result of the new huge hydrocarbon reserves. International oil companies are likely to invest more than US$100bn in developing the resources discovered in the last decade in Kenya, Mozambique, Tanzania and Uganda. Willy H Olsen* discusses.
East Africa - local content
high on the agenda G
OVERNMENTS IN ALL of these countries are focusing on how to maximise the benefits from their new resource base. They will receive significant revenues from production of oil and gas, but their ambition goes beyond revenues. They aim to make the oil and gas industry an economic engine for growth and job creation. They are planning to use local content policies to develop in-country capacity and indigenous capabilities to capture more of the work and value in the oil and gas sector.
Uganda is most advanced in developing its local content policies, its ambitions and its local content legislation. There are many definitions of Local Content; most focus on locally added value and contribution of the local labour force in the creation of goods and services. The oil industry association, IPIECA, is defining ‘local content’ as the added value brought to a host nation, or region or locality through: 6 Workforce development 6 Investments in supplier development and procuring locally Local content can be measured on a project basis, affiliate basis and/or country aggregate basis. Uganda is most advanced in developing its local content policies, its ambitions and its local content legislation. Kenya, Mozambique and Tanzania have ambitions, but have not yet finalised the local content strategic work. Uganda will build a refinery as part of the development of its hydrocarbon resources near Lake Albert. Tullow has found oil close to Lake Turkana in Kenya. Environmental issues will be important for both areas. The large gas discoveries in Mozambique and Tanzania are in deep waters. The challenges, the development strategies and the solutions will be different from the onshore to the offshore. Both Mozambique and Tanzania are finalising their Gas Master Plans. The aim is to provide a comprehensive framework for development of the natural gas industry to ensure "optimal benefits to the national economy in the short, medium and long term". The call for the local content in Tanzania is
24 Oil Review Africa Issue Six 2013
Tullow staff working at Maweials yard in Kisinja, Uganda. Tullow says 88 per cent of the staff is Ugandan.
enshrined in the draft national oil and gas policy currently collecting views from across the country. Tanzania has recently organised its first ever local content workshop with calls for a local content policy to develop skilled manpower and a domestic supply industry. The policy or law should seek to expand the economy through valueaddition and job-creation, said Ms Neema Lugangira Apson, who has done an analysis of Tanzania local content strategy as part of her MBA. Prime Minister Alberto Vaquina in Mozambique has projected increased local participation in both mining and hydrocarbons. The draft Gas Master Plan outlines a vision with messages like: 6 Growth in domestic public and private sector competence 6 Increased employment around the country, especially in less developed provinces 6 Infrastructure to support economic activities 6 Expanded access to training and education An increase of local content is achievable from two possible directions; indigenous investors who wish to participate in the industry, and foreign investors who wish to bring capital and industrial competence into the country. Both are essential to expand capacity and generate industrial growth. Investors, foreign and indigenous, will look for a predictable macroeconomic and legal environment, reliable institutions and legislations, acceptable standards of infrastructure, protection of contractual rights and a culture opposed to corruption. Transparence and governance has been
strengthened in East Africa, but need to be strengthened even further to create public confidence.
Local content – a global drive More than 40 countries have in the last decade introduced local content policies as a way to create more jobs and benefits from developing the oil and gas resources. 6 Nigeria has introduced the Nigerian Content Act 6 Ghana is in the final stages of its Ghana Content Act 6 Brazil has been through the most extensive work of any country in analysing the potential, defining the gaps and developing the strategic approaches to building a strong industrial base, lifting the competence level of the country. Brazil, has like no other country, introduced both incentives and penalties, but has no legislation 6 Oman has introduced its new policy of creating more in-country value 6 Kazakhstan has strict local content requirements 6 Saudi Arabia has high ambitions of job creation East Africa will see the development of projects that are large, generally foreign owned and capital intensive. The projects will depend to a large extent on imported goods and services and most of the production will be exported. But a successful local content policy can pave the way for sustainable and tangible local supplier development. Managing the resources to benefit the current
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and gas sector, but also accept that it will take time to develop people. The political leadership has a job to do to create a good framework for local content, either through legislation or regulations.
An education strategy has to be an important element of any local content policy. 6 Establish the right definition of local content 6 Decide who will be responsible for local content management
6 Understand the local supplier capacity to deliver to the oil and gas sector
6 Develop local supplier programmes, including programmes for small and medium sized companies 6 Establish a local supplier database 6 Align education programmes to the new industry requirements But most important is to work with the oil companies, the international service companies and financial institution to ensure that local firms can be involved. Local industries also have to prepare themselves for work in the emerging oil and gas sector.
6 Local suppliers have to understand the requirements in the oil and gas industry
6 They need to reflect carefully around their own capacity and capabilities and what it will take to prequalify for work in the oil and gas sector 6 They need to understand the barriers to entry 6 They need to look for suitable partners
Status in Uganda: Legislation and policies The Ministry in Uganda has estimated that the oil industry will employ between 10,000 and 20,000 people. Uganda has established new institutions: 6 The directorate of petroleum, 6 The Petroleum Authority of Uganda, and 6 The National Oil Company Uganda carried out a study on enhancing national participation in the oil and gas industry in 2011. Local content was defined in the study as the value added to the oil industry by Ugandans using Ugandan material with services provided by Ugandans and Ugandan firms. The new Petroleum (Exploration, Production and Development) Act became effective in April 2013 and is setting the stage for the growth of local content. The act compels oil companies to employ Ugandans if they qualify for the job. It also makes it mandatory for oil companies to have plans for technology and skills transfer.
Oil Review Africa Issue Six 2013 25
East Africa
population and build a strong economic basis for future generations will have to be the main priority for the political leadership over the next 10-20 years. The policies will have to address issues like 6 Revenue and wealth management 6 Use of the resources for value creation and as a basis for developing domestic capabilities 6 Higher employment with a higher share of skilled people 6 Stimulating education to achieve a higher level of technological capacity 6 Development of a positive multiplier impact on other segments of the society The policies will have to be short term as well as long term. The countries’ leadership will have to manage high – often too high - expectations and communicate the opportunities as well as the challenges ahead. Governments must also ensure that the newfound oil and gas resources do not undermine existing industries or the agriculture sector. Oil and gas discoveries can have a tendency to drive up cost levels and undermine existing industrial activities or agriculture. An education strategy has to be an important element of any local content policy. Countries must develop a workforce with the knowhow, competence and capabilities required in the oil
East Africa
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One section of the Act, S 125, has been in the spotlight. “Where the goods and services required by the contractor or licensee are not available in Uganda, they shall be provided by a company which has entered into a joint venture with a Ugandan company provided that the Ugandan company has a share capital of at least forty eight per cent in the joint venture.” The act requires a licensee, its contractors and sub-contractors, to give preference to goods which are produced or available in Uganda and services which are rendered by Ugandan citizens and companies. Tullow has described the provision as unrealistic, despite its good intentions. Recruitment and training is also important elements of the legislation. “The licensee shall within 12 months, after the grant of the licence submit to the Petroleum Authority for approval, a detailed programme for recruitment and training of Ugandans in all phases of petroleum activities and shall take into account gender, persons with disabilities and the host communities,” the act reads. The act compels oil companies to submit a report to the Petroleum Authority on achievements of trainings and recruiting Ugandans on an annual basis. Part of the training might include offering Ugandans scholarships and financial support towards their education. Tullow Oil and Total have given several Ugandans scholarships to further their studies. CNOOC is now launching its scholarship programme. Tullow says 88 per cent of the staff is Ugandan. Total reports 70 per cent and CNOOC some 60 per cent.
The call for the local content in Tanzania is enshrined in the draft national oil and gas policy currently collecting views from across the country.
Many countries have over the last 30 years used their gas resources to develop their societies. Many have combined export of gas with domestic use of the resource for value added businesses. Many countries have over the last 20 years used their gas actively. Many have combined export of gas and LNG with domestic use of the resource for value added businesses. It is not recommendable to copy the policies of one country, but rather try to learn from their experiences and chose policies that can be adapted to the situation in Tanzania and Mozambique.
Gas will have huge impact on Mozambique
The International Monetary Fund (IMF) has just released its assessment of Mozambique and has looked at the impact of the huge gas discoveries. The evaluation is based on construction of an LNG plant that consists of four LNG production trains where each train has the potential of delivering 5 million tons of LNG per year. IMF assumes that the LNG projects will begin in 2014 with first LNG production in 2020 and the four trains will be operational by 2023. ENI and Andarko have indicated that Mozambique has the potential resources for 10 trains, whilst BG, Ophir, Statoil and ExxonMobil have been talking about two trains in Tanzania. IMF is estimating total project costs of US$40bn to cover developments of the fields offshore, pipelines to shore and the LNG facilities in Mozambique. Investments are huge in the country’s economy - 2.7 times larger than the GDP in 2012. Mozambique has in the past two decades seen the economic impact of several megaprojects in coal mining, hydropower development, aluminium smelter and Sasol onshore gas project. The discovery of large coal deposits in the Central-Western region, and the discovery of enormous offshore gas fields in the Rovuma Basin, has the potential to radically transform the structure of the Mozambican economy. The bulk of the revenue will come from the LNG sector. LNG production from four trains will reach full capacity in 2023. The fiscal revenue will increase gradually over course of the 2020s. Government revenues from liquefied natural gas (LNG) could be up to 40 per cent of total revenues in a decade. This represents an opportunity to make growth-enhancing public investment but also a challenge to assure macroeconomic stability and debt sustainability. ■
The companies and government have a major job ahead in creating the basis for developing the resources, including a wide range of commercial agreements like 6 Project agreement 6 LNG sales and purchase agreements 6 Shipping arrangements The oil companies have to prepare for the final investment decision by completing the commercial agreements, certifying the reserve assessments and presenting the technical development plan with cost estimates as a basis for the financing. The project will most likely involve a floating production unit offshore with subsea wells, whilst the onshore plant will initially be constructed for two LNG trains.
*Willy Olsen: Senior Advisor INTSOK, Norway, senior associate at CWC School for Energy, UK, Former advisor to Statoil’s CEO. Willy Olsen has held a number of senior positions, including managing director of Statoil UK and head of Statoil’s activities in the former Soviet Union. Olsen is now the senior advisor to INTSOK, a foundation owned by the Norwegian government and Norwegian oil industry. INTSOK is co-ordinating efforts of expanding the internationalisation of the Norwegian petroleum cluster. Willy is also a course leader at CWC School for Energy and has recently taught East Africa Local Content for the Oil & Gas Industry in Dar es Salaam,Tanzania in November 2013. For more information please visit: www.cwcschool.com
The new regulations [in Uganda] will focus on how local content can be achieved. Some of the cases are: 6 Trinidad and Tobago: Large industrial developments before LNG exports began from four LNG trains 6 Equatorial Guinea: Developed industries and LNG exports from one train 6 Malaysia: Power sector and petrochemicals – and nine LNG trains 6 Indonesia: Was the world’s largest LNG player in the 1990s – more use of gas in the domestic economy in recent years 6 Qatar: The biggest LNG exporter of today with added industrial activities, world’s largest GTL plants 6 Nigeria LNG: A Nigerian success story – six trains
Education investment pays dividends.
The ministry is now drafting regulations to operationalise the law. The new regulations will focus on how local content can be achieved. In the draft regulations, oil companies will be given three years to have expatriates on their books. And after the expiry of the three years, the expatriate’s work permit will not be renewed, paving way for a Ugandan to take over.
Natural gas for LNG and industrial development Hydrocarbon resources can be used as the basis for industrial development by using natural gas as feedstock for petrochemical industries, production of ammonia, urea and methanol. Natural gas can also be a major source for power generation.
26 Oil Review Africa Issue Six 2013
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Geology
Increasing oil recovery UNRECOVERABLE RESERVES ARE the oil and gas industry equivalent of Tantalus’ fruit tree, plain to see but just out of reach. According to some estimates, the industry recovers around one third of the oil in the ground. This, combined with rising costs, creates a strong incentive for development of Improved Oil Recovery (IOR) / Enhanced Oil Recovery (EOR) techniques. The industry has responded with a suite of new strategies, products and services. Core components include reservoir monitoring, development drilling campaigns, and management of producing wells. 4D seismic allows operators to collect a series of 3D images to monitor the migration of reservoir fluids over time. While early implementations were costly, the level of subsurface detail now achievable when combined with well logging is allowing the design of more effective recovery strategies. The tools available to drilling teams also continue to evolve in areas such as Extended Reach Drilling (ERD), with at least one service company aiming to enable drilling reach beyond 20km, potentially facilitating economic development of more reserves from existing infrastructure. Meanwhile, the service companies continue to enhance their core offerings such as rotary steerables where constant improvements are being made in guidance and motor technology. The production well itself is now becoming increasingly “intelligent” with completion designs that allow operators to collect pressure and temperature data in real-time, and isolate unproductive zones. Intervention on wells with integrity issues is another area where service ranges are expanding, especially regarding subsea wells. The development of gas tight metal-tometal casing patches is one such example of a well integrity solution. Technologies in the operators’ IOR tool-kit also include low salinity waterflooding, which Shell estimates could increase oil recovery by five to 10 per cent in some Gulf of Mexico fields. Despite a reputation for conservatism, as with any other sector of the economy, necessity is proving to be the mother of invention in the oil and gas industry.
ERHC Energy starts Kenyan airborne FTG survey ERHC ENERGY INC’s wholly owned subsidiary, ERHC Energy Kenya Ltd, has begun an airborne Full Tensor Gravity Gradiometry (FTG) survey of Block 11A in northwestern Kenya. The FTG survey will encompass up to 15,500 line km. The announcement follows news that ERHC has concluded a farm-out agreement for Block 11A with a renowned integrated oil and gas company, subject to the consent of the government of the Republic of Kenya. Block 11A encompasses approximately 11,950 sq km, and is located to the north of the Lokichar Basin where the significant Ekales-1, Ngamia-1 and Twiga South-1 oil discoveries were drilled. The proximity and in-trend relationship of the Lotikipi plain - the main surface feature of Block 11A - with those blocks as well as the Abu Gabra Rift basins of southern Sudan, which are established petroleum provinces, suggest a high prospectivity for hydrocarbons. "We are thrilled to be moving forward with this crucial element of ERHC's oil and gas exploration work programme in Kenya," said Dr Peter Thuo, general manager of ERHC Energy Kenya Ltd. "The information currently being gathered will enable the exploration team to focus on the most promising areas for acquisition of 2D seismic data, which is the next step in the work program for the Kenya Block." By flying a dense grid of flight lines, the FTG survey measures small changes in gravity caused by changes in density of subsurface rocks, providing valuable information which can be used to more accurately pinpoint hydrocarbon deposits. When combined with other existing geologic data, the information from the FTG survey will advance ERHC's understanding of the geological structure of the area, which helps us to identify potential leads and prospects. The FTG survey method has been used successfully in Africa and contributed to recent oil discoveries in Uganda and Kenya. Bell Geospace, a world leader in gravity gradiometry, is flying the FTG on ERHC's behalf. In addition to Kenya Block 11A, ERHC's oil and gas exploration interests extend across the African continent, including the Republic of Chad, the Sao Tome and Principe Exclusive Economic Zone (EEZ) and the Nigeria-São Tomé and Principe Joint Development Zone (JDZ).
28 Oil Review Africa Issue Six 2013
TGS begins seismic surveys off Madagascar TGS, IN PARTNERSHIP with Chinese contractor BGP, has begun the acquisition of 2D seismic, gravity and magnetic multi-client surveys offshore Madagascar. The firm is using the M/V Challenger vessel to carry out the survey. The MAJ-13 and MS-14 surveys will add 7,025 km of new 2D seismic data to TGS’ existing 33,315 km of 2D data over the region. The company will additionally process the data using its Clari-Fi broadband processing technology, with the results available to clients from Q3 2014. The surveys are supported by industry funding.
SAPETRO engages Fugro for hydrocarbon seeps SOUTH ATLANTIC PETROLEUM (SAPETRO), in partnership with MAREX, is exploring nearly 70,000 sq km of the Central Mozambique Channel. The exploration permits are in Juan de Nova in French TAAF waters and the Belo Profond in Madagascar waters. The main objective of this project is to scientifically identify and sample areas where there may be naturally occurring seeping or venting of hydrocarbon-rich fluids. This follows an initial programme last year where SAPETRO collected multiyear persisting surface oil slick samples. The slicks were detected on ESA satellite radar imagery in collaboration with Astrium/Infoterra and analysed by Gore Technologies. Geoscience and engineering consulting company Fugro GeoConsulting and French IPEV vessel R/V Marion Dufresne were contracted by SAPETRO to acquire geophysical data (multibeam echosounder bathymetry and backscatter data and subbottom profiler data), to provide onboard seep-mapping and interpretation of the geology and shallow fluid migration systems, cutting edge seabed sampling with the Calypso Corer (up to 40-m piston coring), and onboard real-time geochemical analyses to optimize the sampling sites. The expectation is that the geochemistry of the samples will elucidate the nature of any hydrocarbon reservoir that may be present at depth. This general region of East Africa has yielded many very large natural gas discoveries, but the actual geologic window with oil, instead of gas, has been elusive. This is an area that may yield those oil-rich deposits. In addition to the real-time interpretation of the geophysical data to get the best targets possible for the geochemical programme, the science team on board also ran real-time geochemical analysis to recognise the merit of the recovery at each site. This allowed the onboard team to better determine if a site was worth revisiting, as well as providing the confidence of knowing if the cores sampled suitable targets while still out on the water, instead of waiting months later for a shore-based laboratory to provide all the results, after the ship has already demobilised. www.oilreviewafrica.com
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Gas
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Cobalt’s Lontra well better than expected
Statoil makes fifth high-impact find
COBALT INTERNATIONAL ENERGY Inc (CIE) said its latest Lontra well off Angola found more natural gas than the company had expected. The well flowed 2,500 barrels of gas condensate and 39 mmcfd of gas during tests in Block 20, the company said. It was drilled to a total depth of 4,195 m. “It is clear that Lontra is a discovery on a global scale,” Cobalt ceo Joseph Bryant said. “Although the field contains more gas than our predrill estimates, it is beneficial that Lontra is offshore near Luanda, where we believe there is a potentially large emerging market for gas.” Cobalt and partners BP and Sonangol started talks with the government on the possible development of the field. The Houstonbased company has drilled three wells in the Kwanza pre-salt basin, all of which made discoveries. The north of the Kwanza basin has a “risk” of having high volumes of gas, Oswald Clint, a London-based analyst at Sanford C Bernstein & Co, wrote. Gas content in Angola discoveries could offset the value of oil because foreign investors cannot market gas under the nation’s production-sharing agreements, Clint wrote in a report last year. ConocoPhillips and Statoil ASA and some other explorers plan to invest more than US$3bn to drill beneath a layer of salt off Angola next year in the country’s biggest deepwater drilling campaign, according to Wood Mackenzie. Oil companies plan to test the theory that Angola’s offshore geology mirrors that off Brazil, where multibillion-barrel finds have been made, Domingos Cunha, head of integration at Luanda-based Sonangol, said recently.
STATOIL HAS ANNOUNCED a fifth discovery in Block 2 in offshore Tanzania, adding another two to three tcf of gas in-place to its total. Statoil and ExxonMobil discovered gas in the Mronge-1 well, bringing total inplace volumes of gas on the block to 17 to 20 tcf of gas. The well discovered gas at two levels, with the main accumulation in the same level as in the Zafarani-1 well on the same block. The Zafarani-1 well was drilled in 2012 and opened up the block for further exploration. The other accumulation was found in a younger gas-bearing reservoir which had not previously been tested. The find was preceded by three high-impact gas discoveries made during the first drilling phase. Statoil senior vice president - exploration activities, Western hemisphere, Nick Maden, said these were high value resources off the coast of Tanzania. “The discoveries also demonstrate how Statoil's strategy of focusing on highimpact opportunities is paying off and supports the company's ambition for international growth,” he said. Tanzania energy and minerals minister Sospeter Muhogo said the Tanzania government was pleased to learn about the extra gas resources off the country’s coast. The well was drilled with the drillship Discoverer Americas. After the company finishes at Mronge-1, it will appraise the 2012 Zafarani discovery.
Shell Cansolv CO2 capture underway SHELL CANSOLV, A global provider of state of the art gas absorption solutions, has announced that the successful capture of CO2 from combusted natural gas is now underway for Lanxess, a leading global producer of specialty chemicals, for use at their chrome chemicals production facility in Newcastle, South Africa. The system has been incorporated into a new facility that will combust locally sourced natural gas in conventional boilers to generate steam, allowing for the removal of CO2 from the flue gas generated.
6 This installation is the first deployment of the Shell Cansolv post-combustion CO2 capture system in the chemicals production industry, and as such a significant milestone in its commercial use. Shell Cansolv has supplied Lanxess with its patented process, engineering services and its patented CO2 amine absorbent. 6 The plant in Newcastle is designed to capture 170 metric tonnes of CO2 per day. 6 The captured CO2 will be used as a feedstock for chemical production and will mean that Lanxess can avoid purchasing large volumes of CO2. This is of strategic importance, not only providing Lanxess valuable security of supply of CO2, but will also allow them to improve energy efficiency and plant economics. 6 The Cansolv CO2 Capture System employs a regenerable technology that captures up to 90 per cent of CO2 emissions. It is highly flexible and offers cutting edge performance, including low parasitic energy consumption, fast kinetics and extremely low volatility.
30 Oil Review Africa Issue Six 2013
Tanzania may build LNG export facility in Lindi TANZANIA IS LOOKING at building a massive facility to export LNG similar to those developed by the world's biggest gas exporter Qatar and may locate it in the southern Lindi region, a minister said recently. East Africa has become one of the world's hottest new oil and gas areas after a string of discoveries, which producers hope to exploit to feed energy-hungry Asia. Many top companies such as BG Group, Exxon Mobil and Statoil are at work in Tanzania to tap its gas reserves. "We are thinking of building one industrial area, like what you have in Qatar, where you have all these (LNG) plants, petrochemical industries," George Simbachawene, Tanzania's deputy minister for energy and minerals, said in an interview to Reuters on the sidelines of the Africa-Asia Oil and Gas Summit in Singapore. The government is looking at building the facility by 2020 and is zeroing in on Lindi, the second most southerly region in coastal Tanzania. Cost details of the project haven't yet been worked out, he said. The minister's comments come amid an ongoing review of proposals submitted by international oil companies to locate a gas plant in Lindi. Tanzania is estimated to have more than 40 tcf of gas, which it said could rise five-fold over the next five years, putting it on par with some Middle East producers. It also plans to start gas exports to its energy-starved East African neighbours in 2015. The country, which has in place 26 production-sharing agreements with several overseas companies, released a policy document in October called "Natural Gas Policy of Tanzania 2013", listing the government's objectives for the gas industry, including regulating midand downstream activities, gas processing and liquefaction to storage and distribution. Tanzania also plans to boost its gas-based power capacity by 900 MW, taking the country's generation capability to 2,400 MW by 2015-16, the minister said. “Our priorities are, first, to generate electricity to meet the country's demand. Second the use of gas in institutions, household, motor vehicles, then for export of LNG", he said. www.oilreviewafrica.com
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Offshore Mozambique gas to feed LNG plant
OPHIR ENERGY HAS announced further successful appraisal of the Mzia discovery in Block 1, Tanzania. Ophir holds 40 per cent of Blocks 1, 3 and 4. BG Group operates with 60 per cent. The Mzia-3 appraisal well was drilled approximately 6km north of the original Mzia-1 discovery well and targeted the main Lower sands that comprise the majority of the resource in the field and upside in the Middle sand package that was encountered in the Mzia-1 well. The well encountered 56m of net pay combined in the Lower and Middle sands and has confirmed reservoir quality in-line with that seen in the Mzia-1 and Mzia-2 wells. In addition, the gas down to level proven in Mzia-3 is 107m deeper than that seen in the previous wells, leading to an increase in discovered resource estimates. Provisional interpretation of the Mzia-3 result has increased the overall mean contingent recoverable resource for the Mzia discovery by c.0.7 TCF to c.5.2 TCF. Well completion operations are currently ongoing. The well was drilled by the Deepsea Metro-1 drillship.
EAST AFRICA IS ready for a transformation, and Anadarko Petroleum’s natural gas discoveries will hasten that transformation. Cory Weinbel, Anadarko’s project manager for Mozambique, told the 2013 Deep Offshore Technology Conference & Exhibition delegates that the country has seen an eight per cent growth in its economy over the last few years and that development of offshore natural gas reserves to feed an LNG facility onshore would add to that success. He talked in some detail specifically about the Prosperidade field, one of a group of three fields in the Rovuma basin Offshore Area 1, about 50 km offshore in 1,500 m water depth. “The initial plans call for a subsea gas gathering installation feeding a 22-in. diameter pipeline to the beach,” Weinbel said. “Onshore Phase 1 plans for four LNG trains producing about 5 MMtpa each from wells that are producing 150-200 mmcfd each.” Anadarko estimates the recoverable natural gas in the area at up to 65 tcf which would support the LNG facility plans. “There are some challenges,” added Weinbel. “There are subsea canyons with talus slopes and big boulders that the pipeline to shore has to cross, and there is a broad section of shallow water leading to the beach with coral and sea grass to protect.” Plans call for bidding the installation work in Q1 2014. Work by separate contractors on three different front-end engineering and design approaches is about 95 per cent complete. And, he said, the final investment decision could come at that time as well. On this schedule the first sustained LNG flow would be in 2018.
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Oil Review Africa Issue Six 2013 31
Gas
BG, Ophir strike net pay in Mzia, Tanzania
S10 ORA 6 2013 E & P_Layout 1 12/9/2013 2:58 PM Page 32
E&P
Mozambique to launch new bid round in 2014 MOZAMBIQUE WILL LAUNCH its closely watched fifth exploration licensing round next year after the country's new petroleum law is ratified by parliament later this year, National Institute of Petroleum's geologist Jose Branquinho said. He said Mozambique has undergone a review of its petroleum code, which is now awaiting approval by parliament. Areas under consideration for inclusion in the round is the deepwater Rovuma basin, where the technical database is limited to 2D seismic data with no 3D seismic data.
Tullow in Kenya oil hit TULLOW OIL HAS made a new oil discovery while drilling a wildcat well in Block 13T, onshore northern Kenya. The operator said that it found and sampled moveable oil at the Agete-1 exploration probe, recording an estimated 100 metres of net pay in good quality sandstone reservoirs. Agete-1 is Tullow’s fifth consecutive oil discovery in the region and follows Ekales1, which encountered net oil pay measuring between 60 and 100 metres in September. According to Tullow, this latest find is on trend with the Twiga South, Ekales and Ngamia oil discoveries and also de-risks several follow-on prospects located to the north. Following the completion of logging operations at Agete-1, the rig Sakson PR5 (pictured) will move to drill the Ewoi-1 wildcat.
Agete-1 was drilled by the Sakson Group land rig PR5 to a total depth of 1930 metres. Following completion of logging operations, the well is expected to be suspended for future flow testing to confirm the net pay count. Rig PR5 will then move to drill the Ewoi-1 wildcat in the east of the rift basin. This probe will target a rift flank prospect similar to the recent Etuko discovery. Tullow exploration director Angus McCoss said an intensive campaign is planned in Kenya for next year, including “appraisal and exploration within this first basin and pioneering wells targeting the prospectivity throughout the entire chain of similar rift basins”. Tullow operates Block 13T and is partnered by Canadian explorer African Oil.
32 Oil Review Africa Issue Six 2013
Other areas are the offshore Zambezi basin/Beira High and the Mozambique basin. "Mozambique is still an unexplored sedimentary basin with an active petroleum system with opportunities for companies," Banquinho said. It has delayed the launch of its fifth offshore licensing round since late 2012 in order to make fiscal and legislative changes to its petroleum law. The National Petroleum Institute had planned to offer 12 blocks, with at least three of them in the gas-rich Rovuma basin. Interest in the
fifth offshore round is expected to be high as Eni and Anadarko continue to discover further gas reserves in the prolific Rovuma basin. In June, Mozambique's deputy minister for mineral resources, Abdul Razak Noormahomed, said the new petroleum law would include legislation governing LNG and coalbed methane to take into account the country's new-found gas reserves. The new law clarifies the legal framework for investors in Mozambique's oil and gas industry and grants communities part of the country's revenue from gas finds, he said.
Ophir targets oil in Tanzania’s gas-rich basin OPHIR ENERGY PLANS to test an oil and gas prospect in its East Pande licence offshore Tanzania next year which it hopes could produce the gas-rich country's first oil discovery, the company's chief operating officer, Mike Fischer, said. The Pande prospect is expected to hold a gas potential of two tcf or some 380mn barrels of oil and is scheduled to be drilled around mid-2014, Fischer said. While there have been some 40 tcf of gas discovered offshore Tanzania, only a few oil shows have been found by the upstream players in the country. "We recognised when we went into Tanzania, there were a lot of oil seeps up and down the coast. Even though we knew we were going to find gas in the deepwater, there was still this tantalising possibility of finding oil," Fischer said.
"It appears that if there is going to be oil in the offshore anywhere, it is likely to be in the southern parts of East Pande and potentially the very western parts of Block 1," he added. Ophir has a 70 per cent-operated interest in the East Pande licences with Ras Al Khaimah Gas Company (RAK Gas), holding the remaining 30 per cent stake. East Pande is believed to contain the up-dip extension of the Tertiary and Cretaceous play systems, which have been proven in the deep water, Fischer said. In 2012, Ophir acquired a 2,200 sq km 3D seismic survey and interpretation began at the end of the year. "I have to say it's not the likely outcome but it's certainly a possibility," Fischer said referring to the chances of finding oil with the Pande well.
Mozambique’s first commercial crude in 2014 MOZAMBIQUE’S FIRST over 236,000 barrels of light COMMERCIAL production and oil to the end of March this sale of crude oil is set for next year as part of an appraisal year from a small but profitable programme. inland oil field at Inhassoro, a Haan said commerciality senior official at Sasol has said. was declared earlier this "It's a small development, but year on the Inhassoro G6 it is a sign perhaps there is and G10 oil reservoirs in the more," Ebbie Haan, Sasol PSA block, and the natural Sasol's natural gas Petroleum International's plant in Mozambique gas fields in Temane G8 and managing director, said. Temane East are also viable. "If we were to develop (the Sasol is the world's top gasfield) with one or two wells in the first phase, to-liquid fuel producer, with a plant in Qatar we would be talking about multiples of 1,100. and others planned in United States and So if we drill two wells, you probably get Canada. The company aims to take advantage 2,000 barrels a day," he added. of Mozambique's plans to use gas reserves for Recent discoveries of gas and coal have power, fertilisers and methanol. triggered billions of dollars in investment in The company is preparing to expand an the former Portuguese colony. existing Mozambique gas processing facility Haan said Sasol planned to invest around and a pipeline to South Africa. US$2.4bn in Mozambique for a variety of Sasol is also exploring offshore Mozambique, projects until 2018, when it is expected to where some of the world's largest gas export its first cargoes of LNG. discoveries in the last decade have been made. Sasol, the first mover in oil and gas exploration "We are looking at the upcoming bid round, in Mozambique, has conducted extended well and we have onshore blocks left, so we have a testing on the Inhassoro oil rim and produced good funnel of opportunities," Haan said.
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Total to explore offshore South Africa in 2014
US JUNIOR DUMA Energy is increasing its footprint in a frontier southern African play after agreeing to take over a compatriot exploration partner. The Houston-based explorer is snapping up Texan Hydrocarb after penning a letter of intent which will see it expand its presence in an onshore Namibia play. Last year Duma took a 39 per cent stake in the Hydrocarb-operated petroleum exploration licence 38 in the Owambo basin which covers 2.2mn hectares. The concession covers blocks 1714A, 1715, 1814A, and 1815A in northern Namibia. Hydrocarb recently kicked up an airborne gravity and magnetic survey on the acreage which will help the partners prepare a 2D seismic campaign that is due to start early next year. Existing 2D seismic data is also in the process of being reprocessed, though this only covers about 15 per cent of the blocks’ total area of 2.2mn hectares, north-west of the Etosha pan. Duma also said that Hydrocarb is “currently in final negotiations for lucrative production-sharing contracts with several African nations in the prolific East African rift play”. Duma would assume any of these contracts were Hydrocarb to win them and the takeover be completed. Duma had revealed last month that it was in talks over possible production sharing contracts in three “major African countries” which it did not identify. Although Duma said it has focused on the Central and East African rift systems, it also said it was looking at additional evaluations of an offshore West African play.
FRANCE’S TOTAL WILL drill an exploration well off the coast of South Africa in 2014 in a new phase of exploration also targeting Kenya and the Côte d’Ivoire, according to a senior company official. In September Total acquired a 50 per cent interest in Block 11B/12B from CNR International, a subsidiary of Canadian Natural Resources Ltd. "Total becomes the operator of the block which covers an area of about 19,000 sq km and where we will drill our first exploration well next year," Abiodun Afolabi, Total's general secretary for Africa, told an oil and gas conference in Cape Town. The field is situated in the Outeniqua Basin, about 175 km off the southern coast of South Africa, which was drawing record exploration interest from oil majors such as Shell and Exxon Mobil. Afolabi said that South African authorities had also granted permission to convert a technical co-operation permit on another block, Outeniqua South, where the company hopes to shoot 7,000 km of 2D seismic data. Total is aiming for a production target of three million barrels of oil a day by 2017, with deep-water production in Africa a key driver, he said. "We expect to see an increasing proportion of the operated production in Africa coming from the deep offshore, (which) has risen steadily from 34 per cent in 2006 to 72 per cent in 2012," Afolabi said. He added that Africa accounts for approximately a third of the group's hydrocarbon production, with Total also supplying about 15 per cent of the continent's downstream market, some 14mn tonnes of petroleum products a year.
Bowleven picks up Zambian trio AFRICA-FOCUSED BOWLEVEN has won three exploration blocks in the latest Zambian licensing round. The company revealed that its bids for blocks 25, 28 and 29 had been successful. It added that it had also now applied for petroleum exploration licenses over the blocks as a formality, and expects confirmation from the government “in due course”. The initial exploration programme included a minimum work programme of about US$500,000. The blocks lie in the under-explored Luangwa Rift Valley, where exploration activity has been shelved since the 1980s, according to Bowleven Chief executive Kevin Hart said the company was pleased to have won the blocks. “We are also pleased that Block 11B continues to provide very encouraging results and we look forward to the commencement of the seismic programme,” he said. The company also revealed that it had largely finished the airborne geophysical survey over Block 11B, in Kenya, and said initial results were encouraging, with the data showing the presence of a number of geological basins. Bowleven is currently planning a 2D seismic survey over the block which is expected to take place in the first half of next year, with the tendering process for the shoot already under way.
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Oil Review Africa Issue Six 2013 33
E&P
Duma makes further Africa move
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The Baker Hughes Rig Count tracks industry-wide rigs engaged in drilling and related operations, which include drilling, logging, cementing, coring, well testing, waiting on weather, running casing and blowout preventer (BOP) testing.
NOVEMBER 2013 - LAND & OFFSHORE NOVEMBER 13
SEPTEMBER 13
VARIANCE
NOVEMBER 12
SEPTEMBER 12
Country Land & Offshore ALGERIA 44 ANGOLA 13 CAMEROON 2 CHAD 10 CONGO 4 EQUATORIAL GUINEA 0 GABON 7 GHANA 1 COTE D'IVOIRE 0 KENYA 9 LIBERIA 0 LIBYA 16 MOZAMBIQUE 1 NIGERIA 17 TANZANIA 1 TUNISIA 2 UGANDA 2 D R CONGO 2 NAMIBIA 0 SOUTH AFRICA 1 MAURITANIA 1 ETHIOPIA 1
Land & Offshore 46 13 3 3 3 0 3 1 0 10 0 12 2 15 1 2 2 1 1 0 1 0
From Last Month -2 0 -1 7 1 0 4 0 0 -1 0 4 -1 12 0 0 0 1 -1 1 0 1
Land & Offshore 37 7 2 2 2 1 5 1 3 3 0 14 3 13 2 4 2 0 0 0 0 0
Land & Offshore 42 5 0 2 2 1 5 1 2 2 1 13 1 19 1 5 3 1 1 0 0 0
VARIANCE From Last Month -5 2 2 0 0 0 0 0 1 1 -1 1 2 -6 1 -1 -1 -1 -1 0 0 0
Source: Baker Hughes
Longreach spuds Morocco well
Pavilion Energy to buy stake in Tanzania blocks
TORONTO-LISTED JUNIOR Longreach Oil & Gas has begun drilling a well on its Sidi Moktar licence in the Essaouira basin, Morocco. The Koba-1 well is being drilled by the Saipem-owned rig Drillmec Mas 7000 to a planned total depth of 2700 metres. The prospect is targeting Lower Liassic and Upper Triassic clastic reservoirs, with operations expected to take about 50 days, Longreach has said. “Longreach has carried out an extensive work programme of geophysical, geological and related studies to define and de-risk the portfolio of leads and prospects from which Koba has been selected as the prime candidate for drilling,� chief executive Andrew Benitz said in a statement. Longreach is operating the well with a 50 per cent stake. It is partnered by Moroccan state energy company ONHYM and Maghreb Petroleum Exploration, with each holding a 25 per cent carried interest.
OPHIR ENERGY HAS inked an agreement to sell 20 per cent interest in Blocks 1, 3 and 4 in the Ruvuma and Mafia Deep Basins area offshore Tanzania to Pavilion Energy, a company owned by Singapore's state-owned investment firm Temasek Holdings. "We are delighted to have entered into this agreement with Pavilion Energy. Pavilion represents a positive addition to the Joint Venture as it progresses through into the development phase and is a high quality endorsement of Tanzania's first LNG development," Ophir's CEO Dr Nick Cooper said. Pavilion Energy, set up by Temasek Holdings in April to tap into Asia's growing energy demand, has indicated that it will acquire strategic assets such as gas acreage as part of the company's business approach. The move into Tanzania represented the company's first major acquisition in the upstream gas sector. "This investment in Tanzania Blocks 1, 3 and 4 is a key milestone for Pavilion Energy to build up our LNG portfolio. It supports our plan to secure long-term energy supply at competitive prices to meet the need for clean energy in Asia," Pavilion Energy's group CEO Seah Moon Ming said. The transaction, scheduled for completion in the first quarter of 2014, is subject to regulatory, governmental and other third party approvals and approval by Ophir's shareholders.
34 Oil Review Africa Issue Six 2013
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The article looks at risk factors offshore, and focusses on PyroSentry's groundbreaking innovation and what this means for the industry as a whole.
Safety
The changing shape of offshore
safety solutions M
ETHANOL IS ONE of the biggest risk factors where offshore fires are concerned; it’s the most commonly used hydrate inhibitor because of its relatively low cost and high thermodynamic effectiveness, which means it’s stored offshore in reasonably high quantities to maximise output. It is a colourless, toxic and highly flammable liquid and can travel considerable distance to the source of ignition, burning with a colourless flame, making manual fire detection difficult in the very initial stages. ScanTech Offshore’s award-winning PyroSentry system can be installed and running in as little as six hours. It is available with a bunded option to avoid any leakage of methanol to the rig structure, provides both audible and visual alarms and is a 100 per cent independent system. In addition to the base system, AR AFFF equipped fire-fighting trolley units can also be supplied as a secondary protection measure, together with a thermal imaging camera to support methanol fire assessment and safety, providing a complete offshore solution. Heralded as the future in offshore safety solutions, the IADC has recently championed PyroSentry’s groundbreaking innovation with the presentation of an Associate Member Award in its North Sea Chapter series. Unlike any other safety product currently in operation, PyroSentry has an automated fire detection system with suppression functionality built in. So how does it work? Based on a protection method, the PyroSentry mechanism essentially uses specialist Fire Trace Detection Tubing® (FDT) to encompass the containment area of hazardous chemicals. The (FDT) is charged to 12 Bar with dry N2 nitrogen, In the event of a fire, the (FDT) tube will burst, automatically triggering an alcoholresistant aqueous film-forming foam, suppressing any fire within just seconds of it starting and raising an alarm. Not only does this protect hazardous and highly flammable chemicals, reduces the risk for offshore crews and give response teams greater chance of gaining control of the situation, it also allows for enhanced efficiency and less interruption to operational productivity if and when a fire does break out.
Safety and efficiency Safety and efficiency are the two factors at the heart of PyroSentry’s development and it’s easy to see why the two go hand-in-hand. An increased safety solution that allows an offshore installation to carry greater quantities of methanol and other hazardous chemicals, because they are always protected, allows
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The PyroSentry system can be installed and running in as little as six hours.
for less interruption in drilling capacity. The suppression technology that the system uses has actually been around for some twenty years and has been used in various other guises and functions throughout that time; but it’s only in more recent years that ScanTech Offshore has tapped into the possibility of employing it in the search for a more robust methanol protection solution. Robbie Garden, business development manager at ScanTech Offshore, spotted the opportunity for channeling the existing technology into a product that could change the shape of safety standard across the industry. After two years of advanced development, the team was confident that this innovation could detect leaks and suppress ignited gases within seconds. And so PyroSentry was born. Its first live trial on site in Australia was hugely successful and the thorough 12-month internal testing programme saw the trials expand to projects in Trinidad, Oman and parts of Africa too, focusing on the global relevance that a new and improved safety solution can bring. Following extensive testing on leakage rates and ultra violet radiation, ageing and breakdown analysis, and extreme temperature assessments, among others, PyroSentry was put to the test by some twenty plus third-party independents to secure accreditations. The solution now carries several internationally recognised listings supporting the ISO 9001 mark carried by ScanTech Offshore. Robbie Garden commented: “It’s been a long time in the making but to see PyroSentry come to
fruition and start to roll out across rigs of some of the major players in the industry is credit to the passion and dedication of the development team. The rigorous development and testing cycle has meant that we have a safety solution here that will start to change the way we manage safety offshore now and into the future. It’s incredibly exciting to be a part of such a process.”
PyroSentry has an automated fire detection system with suppression functionality built in. It’s still very early days in ScanTech Offshore’s global roll out strategy for PyroSentry but the industry’s reaction to its innovation is a sign of the industry’s likely approach to adopting such technology in preventative and suppressive safety systems. The industry is already seeing a shift in the way offshore installations are approaching safety and some of the industry’s big players are getting on board in adopting PyroSentry and the next generation of safety solutions. The likes of ENI, Total, Global, Exxon Mobil and Chevron have all started to introduce PyroSentry to some of their offshore installations and Shell too is in the process of joining the safety revolution, taking their approach to a whole new level. ■
Oil Review Africa Issue Six 2013 35
Downstraem
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TAQA’s Moroccan unit to launch IPO MOROCCAN POWER FIRM Jorf Lasfar Energy Co (JLEC), which is owned by Abu Dhabi National Energy Co, has got the go-ahead from Moroccan market watchdog CDVM for a share sale to raise US$176mn, the company said. JLEC runs the largest coal-fired power plant in the Middle East and North Africa and is also the first independent power producer (IPP) in Morocco, supplying 38 per cent of the Kingdom's electricity. JLEC hired three Moroccan banks to manage the offer - Attijariwafa bank, the local unit of France's Société Générale and Upline securities. The offering would be the first in Morocco since January 2012 and could help revive Casablanca's stock market, which has suffered from the knock-on effects of the euro zone crisis and a lack of foreign investors. JLEC is committed to a heavy investment plan for its power plant at Jorf Lasfar near the city of El Jadida on the Atlantic coast. Earlier this year TAQA sealed a US$1.4bn financing deal with Japanese and Korean banks for its Moroccan subsidiary to increase the plant's capacity by 700 MW to 2065 MW. The expansion of Jorf Lasfar will increase Moroccan power generation capacity by more than 10 per cent.
GE and Carbon Holdings co-operate in Egypt GE AND CARBON Holdings have signed a US$500mn agreement to provide technology and equity support to the greenfield naphtha cracker and olefins complex project of Tahrir Petrochemicals in Ain Sokhna, Egypt. As part of the partnership, GE, with proven strong competencies in energy, oil & gas, power, water, aviation, transportation and healthcare among others, will provide equity financing and advanced technologies to the new petrochemicals complex. This is part of an integrated package of solutions to meet the needs of the country. The technologies to be provided for the new plant include advanced aero-derivatives gas turbines, steam turbines, generators, water filtration and desalination equipment, turbo machinery compressors and industrial solutions services. At a ceremony held at the Egyptian Ministry of Industry & Foreign Trade, John Rice, GE’s vice chairman, signed the agreement with Basil El-Baz, chairman and ceo of Carbon Holdings. John Rice said: “GE is committed to strengthen our presence and partnerships in Egypt, where we have had a presence of over four decades. We are proud to support key customers with technology and capital that can accelerate productivity and address the increasing demand for infrastructure and industrial development.” The new plant has the potential to drive overall growth of the Egyptian economy with its products having a strong impact on the construction and manufacturing sectors – two key contributors to the national economy. In addition to direct jobs at the plant, the local availability of the plant’s products will also contribute to energising ancillary industries, thus creating thousands of indirect jobs. With a capacity of 1,360,000 tons per annum of ethylene and polyethylene, as well as significant quantities of propylene, benzene, butadiene and linear alpha olefins, the plant is billed as the world’s largest naphtha liquid cracker. Featuring a power, water desalination and water treatment plant, the complex will employ a combined cycle power plant to generate 300 MW of power. The full-fledged water desalination plant, featuring GE’s proprietary ultrafiltration and reverse osmosis technology, has a generation capacity of 3,800 cu m per hour.
20 mega stations to open across Nigeria AS PART OF strategies to grow its petroleum supply distribution channel, while working in line with the Nigerian government’s desire to create more jobs, Techno Oil Ltd, an indigenous integrated energy group, has revealed plans to open 20 new mega stations across the country. Reports indicate that Lagos, Nigeria’s commercial hub, will hold the larger share of the stations while other stations will be opened in Ibadan, Port Harcourt, Onitsha, and Enugu among others. Techno head of strategic management, Ken Abazie, said each station has the capacity to dispense over 30,000 litres of petrol daily via the use of an automated pumping facility. The stations will also be a one-stop-shop for the purchase of lubricants, LPG, cylinders, stoves as well as the refilling of cylinders. According to Abazie, the new mega stations will have the capacity to produce over 800 jobs across the geo-political zones where they are to be opened. He explained that the creation of these stations is one of the ways the company is assisting the federal government in transforming the economy and creating employment. “The new mega-stations are strategically located across the different geo-political zones of Nigeria,” he said. Techno has also deployed 50 brand new trucks to aid logistics of petroleum products to its new outlets as part of its corporate strategy of backing the transformation agenda of the government in the energy sector.
36 Oil Review Africa Issue Six 2013
Kenya may look for new partner for refinery KENYA IS CONSIDERING inviting bids for a new investor for East Africa's only oil refinery, or converting it into a storage plant, after co-owner India's Essar Energy said it plans to exit, officials said. Essar said in October it would sell its 50 per cent stake in the Mombasa plant after its plans for a US$1.2bn upgrade were abandoned on the advice of consultants who said it was not economically viable. Linus Gitonga, the director of petroleum at the Energy Regulatory Commission, Kenya's energy regulator, said once Essar's exit is finalised, the government would take full ownership of the refinery and weigh its options. "There are several options for government, including finding an alternative investor or converting the plant into a storage facility," Gitonga told Reuters. "I don't think shutting it down completely will be an option," he said. The decision to keep the plant working is backed by prospects for an oil and gas boom in the region following a string of discoveries in Kenya and Uganda and nearby states that could soon transform an area that has long depended on imports into an energy exporter. Essar had planned to increase the refinery's crude handling capacity to four million tonnes of crude per year (79,000 bpd) by 2018 from 1.6mn now but oil marketers in Kenya, unhappy with the refinery's products and costs, have called for it to be closed. The company blamed Kenya's government for not enforcing a deal requiring local suppliers to buy a certain portion of fuel from the plant, saying this had hurt the business, but Kenyan officials said Essar should have informed the government sooner that oil marketers were not supporting the refinery. Essar bought a 50 per cent stake in Kenya Petroleum Refineries Ltd (KPRL) in 2009 for US$7mn from a group of oil marketers BP, Chevron and Royal Dutch Shell. Although Kenya's government and Essar have agreed to part ways, they are yet to agree on how to handle the refinery's current liabilities which have grown while its struggled to move its stock of refined crude products, officials said. Oil products from the plant serve customers in Kenya, Uganda, Rwanda, Burundi, Tanzania and parts of the Democratic Republic of Congo (DRC).
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S11 ORA 6 2013 Technology 01_Layout 1 12/9/2013 3:10 PM Page 37
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S11 ORA 6 2013 Technology 01_Layout 1 12/9/2013 3:10 PM Page 38
Technology
New technology advances mean there’s no end in sight for Africa’s booming oil and gas sector.
Emerging technologies:
Redefining possible O
IL COMPANIES IN Africa are re-defining what is possible in light of new and advanced technology, coupled with sustained high crude
oil prices. West Africa - in particular, Angola - has long been among the pioneers in the world’s deepwater industry, but now this technology has been utilised to unlock huge offshore fields elsewhere. Most recently, that includes the big natural gas finds off Mozambique and Tanzania in eastern Africa, while in the oil sector, drillers showed that there really is oil - and lots of it - off the Ghanaian coast after decades of frustration there. It is now one of sub-Saharan Africa’s newer oil producers. And it is not just in the offshore either. Improved seismic and exploration techniques have led to new onshore discoveries too, including Uganda and, most recently, Kenya - two other territories that had long tested the patience of drillers. Like Ghana, both are now looking at becoming oil producers within a few years.
Oil companies working in Africa draw on a vast pool of scientific, technical and engineering talent from within and externally. Engineering feat Still, the greatest visible record of this technology remain the giant oil fields off the coast of Angola - a test bed for technology in West Africa - which now produces around two million barrels per day (bpd). Total’s CLOV project is one of a new batch of field developments with first oil anticipated next year, tapping reserves in excess of 500mn barrels from the Cravo, Lirio, Orquidea and Violeta discoveries in Block 17. The arrival of the CLOV floating production storage and offloading (FPSO) vessel in Angola in November marked a key moment for this flagship venture. Hull and riser protectors and a water treatment module M122 topside - built locally are now to be installed on the 118,000-ton floating unit that, at 305 metres, is nearly as long as the Eiffel Tower is tall.
38 Oil Review Africa Issue Six 2013
The CLOV FPSO is a truly remarkable feat of engineering.
This is the first time that this type of module will be installed on an FPSO in Angola. It is a truly remarkable feat of engineering though almost blasé given the number of deepwater fields that now populate Angola’s rich offshore acreage.
flow of waxy crudes found in Africa or inhibiting corrosion. Tool metallurgy can also be appropriately designed to reduce overall cost. The US-based company reckons overall productivity increases by up to 10 times using its reservoir remediation systems.
Industry support
Curiosity and innovation
Total, like other oil companies working in Africa, draws on a vast pool of scientific, technical and engineering talent, from within and externally. This includes leading drilling and services firms such as Schlumberger and Halliburton, as well leading seismic contractors such as PGS and CGGVeritas. All of these play a vital role in driving forward new industry technology from complex directional drilling techniques to state-of-the-art seismic and reservoir modelling. As well as finding new fields it also means maximising yield and profitability from known reserves, through enhanced oil recovery (EOR) and similar techniques. Many of the mature oil fields in North Africa and West Africa are now seeing more investment dollars being spent to underpin production and maintain lifespan. Baker Hughes’ sand control technology is being used in fields to improve well inflow performance and reduce a well’s footprint. It says chemical injection treatments are helping to maintain the
The demand for new and innovative technologies appears almost limitless, it seems. And that goes right through the production chain, building equipment and pipelines that are built to last, especially in unforgiving offshore environments. The Deepwater Horizon tragedy in the US Gulf of Mexico illustrates just how bad things can go wrong when things fail. With complex offshore projects operational for decades then the integrity of all work entailed is paramount. This is an area in which computer science - now the star player in the back room planning offices of most oil explorers - comes into its own. Bjorn-Ovin Wivestad, a project manager at software firm ExproSoft, says his company can help oil companies identify which part of a newlyconstructed well will break first, and why. “The big question oil companies often cannot answer is ‘why things fail?’,” he said. “We help answer that,” he said at this year’s Offshore Europe industry gathering.
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Baker Hughes’ new SC-XP sand control tool was designed to improve efficiency and production ratings by combining gravel-pack and frac-systems into one package
Pre-salt challenge The next offshore challenge facing drillers in West Africa is opening up the pre-salt area, in the hopes of emulating the amazing success of Brazil on the other side of the Atlantic in recent years. Pre-salt exploration refers to identification and discovery of oil accumulations trapped in formations that are beneath and older than the original in-place salt layer. In pre-salt areas, exploration is focused on potential reservoirs that were deposited prior to salt formation. And hopes are certainly high following Cobalt's play-opening Kwanza basin pre-salt Cameia discovery which, in conjunction with Maersk's 2011 Azul discovery, helped prove up analogues with
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Brazil's pre-salt zones. Cobalt more recently followed up with a pair of new discoveries, Lontra and Mavinga. “Each of Cobalt’s wells to date has been successful in finding and delineating new hydrocarbon resources in the Angolan pre-salt,” Cobalt chairman and chief executive officer Joseph H. Bryant said. “This is a remarkable and highly unusual start to the exploration of such an immense new basin.” For the most part this year, activity has largely been focused on seismic acquisition and processing but more exploration drilling is anticipated in the coming year. Analysts at Wood Mackenzie expect up to 20 exploration wells to be drilled in 2014.
This technology comes at a price, of course, but market conditions are deemed favourable enough right now to make it worth the effort. In many respects, technology is a game changer in re-working the financials of a project, making fields once deemed uneconomic, accessible. With petroleum exploration a business with high levels of risk and uncertain outcomes, knowledge and technology are key requirements for success. And the fact is new technology continues to boldly go where the oil industry asks it. New drilling technologies could boost the world’s oil supplies six-fold in years to come to 10.2 trillion barrels, claims a recent report by Lux Research. The most public of these, of course, is the advent of hydraulic fracking, pioneered in the USA, but now being adopted elsewhere, though not as yet in Africa. Again, these technologies assume a high oil price to make economic sense. If that changes - in other words if energy demand and prices were to fall - then the numbers game may not add up. But, for now, the African technology advance shows no signs of slowing down. ■
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High cost
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Technology
Tom Fuggle, business development director at Permasense, provides an overview of continuous integrity monitoring in offshore facilities.
Continuous integrity monitoring for
offshore facilities O
FFSHORE FACILITIES ARE always at risk of corrosion or erosion and the subsequent risk of failure, which may impact the integrity of the facility, the environment or personnel. The consequential financial, operational and reputational damage can be serious. Furthermore periodic inspections do not by nature deliver continuous condition data which can be correlated with corrosion drivers or operational use to enable understanding of the impact of process decisions and operations on the integrity of the facility. Manual acquisition of wall thickness data is also frequently associated with repeatability limitations and data logging errors. Permanently installed monitoring systems show that where corrosion or erosion are taking place, the rates vary, depending on the operating conditions. To move beyond simply knowing whether corrosion or erosion are taking place to understanding what is driving them is thus essential to be able to correlate thickness data over time with process and/or other parameters.
With the Permasense System very accurate data is continuously streamed to users, which provides a valuable insight into the impact of operating parameters on corrosion/erosion activity.
Integrity aspects While there are various established techniques for the periodic assessment of process equipment integrity they are not without risk to personnel. The accessibility of locations and the marine environment also affect the feasibility of manual inspection. A major challenge in the offshore industry is the effective monitoring of assets while minimising the exposure of personnel to challenging and potentially hazardous working environments. Asset and integrity managers are utilising continuous corrosion monitoring systems, as a critical integrity and safety tool, to monitor both corrosion and erosion, to increase reliability and to reduce personnel requirements offshore.
The unique Permasense system Permasense provides complete sensor-based solutions, based on wall thickness measurement, for continuous corrosion monitoring in inhospitable and inaccessible environments. The systems can be configured to meet the demands of all offshore facilities, particularly gas platforms and FPSOs and their unique capabilities provide very significant benefits to users.
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With this system very accurate data is continuously streamed to users. At the core of all Permasense systems is an ultrasonic sensor mounted on stainless steel waveguides. The waveguides guide the ultrasonic signals to the pipe/vessel surface and back and isolate the sensor electronics from damaging temperature effects. The sensors are battery powered, and transmit their data by wireless and therefore require no cabling. In the mesh system, suitable for facilities with a radius of up to half a kilometre, each sensor communicates to other sensors and a gateway (base station) to form an independent mesh or wireless network. Each sensor can act as a relay, or repeater, enabling the network to span hundreds of metres from the gateway.
Highly accurate data to desk With this system very accurate data is continuously streamed to users, which provides a valuable insight into the impact of operating parameters on corrosion/erosion activity. Moreover, the data highlights whether prevention or mitigation strategies are effective. Sophisticated data management and viewing software is an integral part of the Permasense solution to support the interpretation of data provided from continuous monitoring. The system’s data management and visualisation suite, Data Manager, offers an overview of all locations monitored, direct to desk. With drill-down functionality, the latest version of Data Manager, offers additional analysis features including rates over various periods of time, remaining wall thickness to retirement and seven-day average measurement. Automatic classification of data by
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Technology
locations indicating where corrosion rate thresholds – as determined by the user – have been exceeded allows a quick and easy determination of where corrosion activity is occurring across the facility. Newly-improved measurement checks ensure excellent data validation and simple diagnostics. Functionality and display features can be easily tailored by the user. The new full waveform (ultrasonic a-scan) viewing feature allows manual data interpretation, for example at those locations where the data indicates short-term changes in corrosion rate.
Bespoke systems Permasense has also recently designed solutions for customers tailored to specific monitoring requirements and operating environments. This is possible because of the multiple sensor and gateway variants that Permasense now offers. Such modular systems – bespoke solutions – enable continuous corrosion monitoring to be integrated into existing systems. This is a result of Permasense’s significant ongoing commitment to development to enable system – hardware and software - compatibility with an ever-increasing range of user system configurations.
Bank of Permasense sensors monitoring sand erosion on a gas platform which is then used to control process flows.
Application areas
The systems provide continuous corrosion data to the users from all sensing points. Typical location areas These sensors can be installed in any location but typical locations for sensor installation are on elbows, known thin spots, and areas of particular turbulence. Furthermore, older units, particularly those operating outside of design specification, are especially worthy of attention. The sensors can be deployed on wall thicknesses up to 150mm but are typically deployed on process equipment, production, transfer and flow lines. Typical operational characteristics - these are not sensor limitations - include: 6 Wall Thickness Carbon Steel - 6 to 50 mm Stainless Steel - 10 to 25 mm 6 Materials Carbon Steel - Various grades Stainless Steel - Generally 316/316L 6 Temperatures Carbon Steel + 0 to 180 °C Stainless Steel + 30 to 150 °C Most service temperatures typically do not exceed 60°C, but compressor discharge temperatures can reach up to 190°C in operation.
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Permasense has already supplied systems for offshore gas production platforms. The sensors are installed on the platform above water level with the gateway situated in the control room on the platform. Data can then be viewed remotely from the user’s office onshore. The Permasense system can be installed anywhere on FPSO topsides (and potentially below deck, utilising a cabled version of the sensors). The systems provide continuous corrosion data to the users from all sensing points, particularly those remote and difficult-to-access locations which would be impossible to monitor using conventional systems. The drivers of corrosion and erosion - process conditions, crude constituents and abrasive solids - and the inhibitors to hold corrosion rates in check, are familiar, but understanding the levels and rates at which damage may be occurring is an ongoing challenge. Sand erosion in these environments is often a major issue, for instance on platform risers. The Permasense system gives a direct and early measurement of such erosion. Sand erosion is a specific area where a direct wall thickness capability enables users to remotely monitor erosion in real time and relate the measurements to their respective process operations. These systems are therefore being utilised on offshore gas platforms, particularly unmanned
facilities, where the very accurate real time measurements are used to modulate processes to maximise production during potential high wear conditions.
Summary Permasense has already supplied systems for FPSOs and offshore gas production platforms. Users have a more accurate, and real time, understanding of corrosion and erosion rates. The real-time provision of data allows potential corrosion hotspots to be remotely monitored and at time intervals of the operator’s choosing, from as frequent as every few minutes if necessary. This insight allows asset managers to make more informed decisions to the benefit of integrity, safety and operating costs. It allows operators the freedom to choose monitoring locations irrespective of how inaccessible they are, thanks to the use of wireless networks for data retrieval. This innovative solution for real-time monitoring has been tried and tested in some of the most inhospitable oil and gas environments, and continuously delivers high integrity data, reliably and securely. The risk to personnel in collecting data is eliminated, together with the cost of offshore visits. The significant benefits provided by these systems reduce danger to personnel, increase safety and integrity, and improve operational performance and reliability. ■
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Kongsberg signs deal with Statoil KONGSBERG OIL & Gas Technologies AS (KOGT), a wholly-owned subsidiary of Kongsberg Gruppen (KOG), has signed an agreement with Statoil for the delivery of subsea structures, in-line tee’s, tie-in and connection systems for the Polarled gas pipeline. The contract was signed with Statoil on behalf of the partners in the joint venture for Polarled. Polarled is a new 480-km long gas pipeline from Aasta Hansteen to the Nyhamna processing facility in Møre & Romsdal County. The pipeline will make it possible to develop Aasta Hansteen and other fields in the Norwegian Sea. Polarled will also have a branch pipeline to the Statoil-operated Kristin Field, and the order includes structures and tie-ins for that branch. The project is scheduled to commence immediately and will last for more than three years. Engineering will be done by KOGT at Lysaker, while fabrication will be done by subcontractors in Great Britain and Norway. Kongsberg Oil & Gas Technologies executive vicepresident Pål Helsing said, “We are extremely pleased with the contract. It testifies to the fact that KONGSBERG has the expertise required to resolve new challenges inherent in future subsea projects aimed at developing new and existing fields. In that respect, the contract confirms the company’s position as a significant subsea-player on the Norwegian Continental Shelf.”
Subsea structures and connection systems will be supplied for the Polarled gas pipeline as part of the deal.
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Extending life of ageing rigs AGEING RIGS CAN become a cause of worry for oil companies with the decay in metals, the environmental stress on the rigs and the lowering of efficient functioning. Here is a look at ways to combat such problems. DNV regional offshore manager responsible for Middle East and India, Bijali MP said, “Majority of jack up rigs operating are 20 years or older. Most ageing jack-ups are designed and constructed according to Mobile Offshore Rules from 80-ties and 70-ties. Design life normally considered in the range of 20 years. “If an owner is going for a new building, then the cost is quite high and delivery will be more than 18 months. Meanwhile, market demands for rigs increase and owners like to continue with their ongoing contracts. These reasons force the owners to go for refurbishment of their ageing rigs. Ageing rigs properly maintained and upgraded may be successfully operating much beyond their originally planned design life.” The challenges on ageing rigs are related to: 6 Fatigue properties/cracking for dynamically loaded parts to the rig structure 6 Maintaining an efficiently operating corrosion protection system 6 Structural degradation due to corrosion and thickness reduction, e.g. structural strength and fatigue The onboard marine and jacking equipment are normally in a constant cycle of review, maintenance and renewal, and therefore rarely follow the age of the hull. Whenever there is an issue in any of the equipment onboard, spare parts are available and are easy to maintain. Most of the rig owners follow some sort of preventive maintenance system for these equipments. Thus such equipment are not considered in this article. DNV has developed Inservice Inspection programme (IIP)
Jacking trial in the yard for a jack up
and Hull Integrity Management system (HIM) to assist the rig owners/managers/operators to maintain the structures in accordance to classification requirements. This will help the owners/managers to plan the surveys according to class survey requirements. DNV’s IIP establishes a clear and concise inspection work scope and plan. All DNV class rigs have the IIP in place. Whenever the owner/manager’s team is carrying out an unscheduled inspection, results can be incorporated in HIM system. DNV has developed IIP to ensure that critical areas are surveyed according to a proper schedule using appropriate techniques. The IIP shall be based on experience gained during the design and fabrication of the rig and shall be modified throughout the in-service period to account for survey experience. When a rig is in the yard for refurbishment, the outcome of DNV in-service inspections and hull integrity management system reveals the rig’s structural conditions. Generally this will be part of the yard scope of work in addition to rig owner’s or the oil company’s additional requirements. It is very important to control weight during modifications/conversions. Inspection and maintenance of the corrosion protection system is an essential part of the structural follow-up both within the anticipated design life and for ageing rigs. So, this also will be taken care during refurbishment of rigs. “To summarise, clear knowledge of the condition of the rig, well-defined scope of work, equipment ordered well in advance and involvement of class at an early stage are success factors of a good refurbishment project” said Bijali.
Bibby Offshore secures Maersk contract Aberdeen-based subsea installation contractor Bibby Offshore has secured a multimillion dollar contract with Maersk Oil UK. The agreement will see Bibby Offshore commit its Diving Support Vessel (DSV), Bibby Sapphire, to support construction and inspection, repair and maintenance (IRM) activities on Maersk Oil UK’s North Sea assets for a period of 365 continuous days, starting in early January 2014. Three further one year options have also been agreed between the companies with engineering work commencing onshore in Q3 of 2013. Bibby Offshore has successfully delivered IRM services and construction work for Maersk Oil
Bibby Offshore, chief executive Howard Woodcock
previously, in particular the Gryphon Area Reinstatement Programme which involved extensive installation and tie-ins of flexible and control jumpers, with pre-commissioning and testing carried out to connect the Gryphon ‘A’ FPSO. Bibby Offshore chief executive
Howard Woodcock said, “This is a significant contract award for the company and the scope of work involved further underpins our reputation within the construction and IRM fields. “We have successfully completed major contracts for Maersk Oil in the past and we are delighted to continue our working relationship with the organisation. A large project management and engineering team will be dedicated to meet the requirements of the project, supporting the 365 days of DSV support. “This year has been a successful year so far for Bibby Offshore and the business is expanding rapidly, following our relocation to our new facility at Atmosphere One, Westhill.” www.oilreviewafrica.com
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THE USE OF nitrogen in the offshore oil and gas industry plays an integral role in the day-to-day operations aboard mobile offshore drilling units, FPSOs, and drillships around the world. Many applications, such as the blanketing or inerting of storage tanks aboard FPSOs, or the charging of subsea blowout preventer (BOP) accumulators, revolve around safety. Others, like the drying of coiled tubing to prevent corrosion resulting from long-term moisture exposure, serve largely economic concerns. Without nitrogen, completing these tasks would come at increased operational risk and result in greater costs for operators. The sourcing of nitrogen for the current and next generation of offshore vessels can pose fundamental logistical challenges for operators. Many operators continue to transport fully pressurised bulk tank bundles or liquid nitrogen tanks from shore to ship. There are inherent safety risks in these transports and there are often realised losses in transit that prevent operators from fully utilising the gas that they have purchased. The effects of equalisation and pressure decay once the gas is aboard the vessel also need to be taken into account. This often causes unplanned downtime events and additional labour from operating crews having to continually disconnect and reconnect bottle valves and pipe connections. Having a dedicated nitrogen source aboard the vessel is a safe and efficient choice for vessel operators for many reasons: 6 It acts independently of large-scale rig or ship nitrogen systems, alleviating concerns about potential under-pressurisation or pressure decay. 6 The large-scale nitrogen system then becomes a backup system, adding redundancy to whatever process is being serviced. 6 It operates only when required by the process it is dedicated to; with the addition of optional downstream storage, the system will only operate to keep this storage volume fully pressurised, ensuring full gas supply pressure at any time it is required. Operators recognised the benefits of having a dedicating nitrogen generation system for BOP accumulator charging following the aftermath of the Deepwater Horizon disaster. Bauer Compressors provides a turnkey solution that meets current ABS and DNV certification standards and can operate continuously in all manner of environmental and hazardous conditions, all while maintaining consistent pressures in the accumulator stacks. This has
Innovations
Nitrogen generation systems in offshore E&P
Bauer’s Series II Stationary Nitrogen Generation (SNG) system
been integrated into nearly two dozen new drillship projects since 2010 and Bauer is also working with shipbuilders and designers to retrofit existing vessels as they are taken offline for repairs. The company is constantly striving to find new, innovative ways to improve onsite nitrogen delivery for mobile offshore drilling units, drillships, and production vessels. BOP accumulators are not the only application that can benefit from a dedicated nitrogen system. Tensioning systems, currently air-driven, are prime candidates for nitrogen conversion. Flooding tubing coils with sufficient volumes and pressures of nitrogen will help to save both time and cost resulting from corrosion damage, both offshore as well as onshore. BOPs will continue to operate at deeper depths and the need for dedicated nitrogen generation systems will only increase during the coming years.
Schlumberger introduces new sonic-while-drilling service “The SonicScope service is a key component of a real-time SCHLUMBERGER HAS RELEASED its new SonicScope multipole workflow aimed at drilling wells more safely by estimating pore sonic-while-drilling service for wells with large boreholes. The pressures in various geological SonicScope service provides high layers and enable operators to fidelity measurements to adjust mud weight windows determine formation pore accordingly.” pressure and breakout limits to To increase operator confidence in improve drilling risk sonic measurements and improve management. decision making, a comprehensive "When drilling in challenging quality control process - consisting environments such as deepwater, of a series of unique control plots operators are often faced with is applied to confirm the data is mud weight selection and unaffected by external factors. The wellbore instability issues that SonicScope service also features a can be a result of uncertainties fast-logging multimode capability of pore pressures in geological that enables top of cement layers,” said Steve Kaufmann, identification with consistency and president, drilling and Schlumberger's SonicScope service provides high fidelity measurments repeatability while tripping. measurements, Schlumberger.
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Hempadur 35900 designed to ‘meet the heat’ HEMPEL’S NEW SOLVENT-free epoxy coating, Hempadur 35900, is specially designed to withstand liquid cargo temperatures of up to 93ºC, thereby making it the ideal protective lining for crude oil and water storage tanks and pipelines without risk of contamination. Hempadur 35900 is a two-component, high-build, amine-cured phenolic epoxy that is completely solvent-free and releases practically no VOCs into the atmosphere during application, thus ensuring it complies with extremely strict US environmental regulations, which in turn are gradually being demanded by other countries around the globe. Kunal Nadkami, Hempel’s group oil and gas segment manager, explained: “As oil companies drill deeper, their need to handle highertemperature crude oil increases... Crude oil that’s deep underground can reach temperatures up to 90ºC, but ordinary coatings can’t handle these temperatures and the subsequent damage to the tank could result in cargo contamination. That’s why we developed Hempadur 35900”. Hempadur 35900 has been optimised for fast and simple application using airless spray or brush (touch-up). It provides a very high dry film thickness and can be typically used as a system of 600 microns or on top of a 50 micron coat of Hempel’s holding primer 85671. The cream-coloured, semi-gloss finish dries to touch in 12 hours and is fully cured in seven days at 20ºC, affording excellent corrosion protection and abrasion resistance for tanks and pipelines carrying high temperature crude oil and water. Already tested in the Middle East with impressive results and approved by world-leading oil & gas companies, it conforms to Norsok M-501 standard (Rev 6, system 7A, B & C), holds Saudi Aramco approval certificate (APCS-2E) and is listed on the Global Shell and Global Chevron specifications. Hempadur 35900 is the newest member to form part of Hempel’s extensive range of high-tech coatings for all kinds of storage tanks and pipelines and provides a great number of benefits for customers and applicators.
New digital valve controller from Emerson EMERSON PROCESS MANAGEMENT’S Fisher Fieldvue DVC6200 digital valve controller family gains added capability with its all stainless steel housing that withstands the corrosive atmospheres often experienced in Emerson’s Fisher Fieldvue DVC6200 stainless steel housing and chemical plants, sealed construction prevents corrosion damage to components. pulp and paper mills, as well as near-shore and offshore oil and gas installations. All DVC6200 series instruments utilise a patented linkage-less, non-contact feedback design to detect valve position. This valve positioning technology eliminates any travel feedback issues caused by corrosion, high cycle or high vibration applications. In addition to external protection, corrosion resistance is found within the stainless steel housing with the digital controller’s fully encapsulated printed wiring boards. Internal component protection is further enhanced by a separate, weather-tight field wiring terminal box that isolates the field wiring connection from other areas of the instrument. With over one million units installed worldwide, Fieldvue digital valve controllers prove highly suited to difficult process environments, where they provide unmatched valve operation. The DVC6200 series is offered with CSA, IECEx, ATEX and FM hazardous area approvals as well as other certifications/approvals. It is also listed in the Lloyd’s Register for industrial, marine and offshore use.
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MSA Africa launches new F1XF fire helmet MSA AFRICA HAS officially launched the advanced Gallet F1XF fire helmet to the local market. "The Gallet F1XF fire helmet boasts a number of exciting features, including a stylish high temperature resistant shell that is available in two sizes (medium or large) to ensure a perfect fit for all user profiles. A high temperature resistant face shield Inner view of white F1XF helmet. is available in a clear or gold coated option, which provides extended coverage and field of vision in dangerous situations," explained MSA Africa senior product manager HEFHC (head, eye, Face, hearing and communications) Loren Pearson. Pearson highlighted the fact that the Gallet F1XF fire helmet is based on a modernised design and is approved according to EN443:2008 standards for firefighting in buildings and numerous other structures. "In addition, the face shield and ocular visor meet EN14458 approvals too." Additional benefits of the Gallet F1XF fire helmet include a robust and user-friendly head size adjustment system, a padded and adjustable chinstrap with quick release buckle, as well as a quick fit adjustable mask connection system for use with a helmet-mounted breathing apparatus face piece. Pearson revealed that the modular construction of the Gallet F1XF is a new operational feature that allows for swift and effective care, maintenance and assembly of spare parts, while an extended impact liner provides additional side impact protection. "The Gallet F1XF fire helmet also boasts a selection of mounted headsets for enhanced communication capabilities through long range PMR radios, which saves more time in critical situations."
Aker solutions develops casing stabilizer arm AKER SOLUTIONS, A leading provider of oilfield products, systems and services for the oil and gas industry, has developed the Casing Stabilizer Arm (CSA) which eliminates the need for a person to be elevated on a derrick for tubular makeup. The CSA, which enhances Aker’s existing line of tubular handling equipment, is designed for both offshore and onshore rigs. The stabilising mechanism is stowed approximately 10 m above the drilling floor and includes an internal hydraulic cylinder that extends and closes the padded jaws operated by a radio remote control. The CSA uses only three hydraulic cylinders to position and mobilise the pipe jaws including a lifting, extension and clamping cylinder. Aker’s unit also provides increased safety features that allow the device to interface with the rig’s anti-collision zone management system. The unit is rated for Class I, Division 1 locations and has double protection for dropped objects. A warning and alarm system is built into the CSA along with an emergency shut-off control. Additionally, a shear pin is installed on the unit as a safe guard for unexpected downward clash by hoisting equipment. “Aker’s Casing Stabilizer Arm offers superior performance and higher safety features when compared to similar units,” said Rick Comeaux, business development account manager, Aker Solutions. “Our team is setting new standards for casing stabiliser equipment, and we are proud to lead the industry toward a safer, more-efficient option.” The CSA is equipped in tubular capacities of 2-7/8”–22” diameter without changing jaws. Additionally, it offers wireless remote control and local manual control. www.oilreviewafrica.com
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As global demand for natural resources continues, Gerbrand Schalkwijk from Inmarsat explains how the latest developments in mobile satellite communications are helping meet the ever growing challenges in O&G operations . ICT
Onshore, offshore and always online:
re-defining satcomms W
HILE WORKING IN some of the remotest and under-developed parts of the world, the oil and gas majors frequently find themselves operating at the limits of modern communications, and usually well beyond the reach of reliable fixed-line, wireless or GSM cellular networks. Exploiting new deposits, often found in regions across Africa where the climate and terrain are hostile, and the communications infrastructure is, at best, often unreliable, many organisations are adopting turn-key satellite communications, a technology that’s uniquely positioned to fulfil this sector’s requirements. And with each stage of a field site’s operational lifecycle often presenting specific communication demands, either to help reduce find time, accelerate set-up (especially at greenfield sites), or provide automated data monitoring and diagnostics, mobile satellite communications continue to evolve to help meet these management challenges.
Making light work of heavy industry Managing operations in remote locations poses many challenges – ensuring crew safety, maximising onsite efficiency and maintaining reliable communications to name just a few. Inmarsat has developed a complete connectivity portfolio with end-to-end communication solutions to support the various stages of the oil and gas project lifecycle. The boundary between what is viewed as traditional fixed satellites services, particularly VSAT, and that of mobile satellite services, which feature small, portable terminals, continues to blur. With satellite companies continuing to invest in higher performance and higher capacity, customer-led solutions, the traditional distinctions no longer apply. Moreover, a new generation of high performance satellites, referred as High Throughput Satellites (HTS), are emerging to
meet future customer applications. Together with the proven capabilities of existing satellite network services, this new generation technology means that the oil and gas industry will soon benefit from broadband speeds approaching that of terrestrial services for transforming operations, whatever the terrain, and whatever the location, and yet delivered from fully portable terminals. Providing a step-change in performance, the higher bandwidths of HTS will pave the way for both enhanced and familiar services, such as keeping crews happy with regular video calls back home, watching on-demand sports and the news, shopping online or simply accessing social media - via their smartphones, tablets and laptops - just like they would at home. By investing in HTS technology, companies such as Inmarsat continue to help many companies not only operate safely and efficiently in some of the world’s most inhospitable regions but are able to combine performance, reliability and simplicity with a lower cost of ownership - and all from a trusted supplier that's been serving energy companies with mission-critical communications for over 30 years. Yet providing high bandwidth network services on a seamless, end-to-end global basis – and with always-on connectivity to maintain operational efficiency – is only half the story.
The future, today With mobile satellite services an established part of the communications mix supporting large-scale field operations in the energy sector, Inmarsat’s services have long been used by oil and gas companies for bringing oil and gas fields on-stream quicker and at a lower cost. Projects in remote areas require meticulous planning and a high degree of onsite coordination. Difficulties with terrain, climate and communications, however, often lead to delays and over-runs, putting pressure on budgets and
Exploiting new deposits, often found in regions across Africa where the climate and terrain are hostile, and the communications infrastructure is, at best, often unreliable, many organisations are adopting turn-key satellite communications. www.oilreviewafrica.com
Mobile satellite broadband makes communications from a remote site comparable to that of a modern office.
schedules. To overcome these challenges, today’s mobile satellite equipment can be configured as a mobile office, significantly enhancing the risk management capability by providing a robust link between the site and the back-office team. While all phases of operation offer significant potential for the use of satellite communications services, it is in the early stages of a project where mobile systems can help co-ordinate the arrival and deployment of plant, materials and workforce. Quick and easy to set up, a project manager can communicate with head office, or check the status of people and materials that are still en route, and within minutes of arriving on site. Being first on the scene, and ideally suited to this early stage when there is no fixed infrastructure in place, mobile broadband services can be provided when there is the greatest need for establishing communications, quickly and effortlessly. Mobile satellite communications technology – providing not only phone services but fast broadband data connectivity – fits into a backpack and weighs less than two kilos. Inmarsat’s BGAN (Broadband Global Area Network) terminal operates from almost anywhere in the world and can be set up in minutes by exploration teams with little or no experience of communications equipment. BGAN is not just compact and lightweight, it’s an all-in-one voice and high-speed data solution that anyone can carry with them and use wherever they go. It provides instant mobile
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Lightweight portable terminals support field operations in the most remote and inhospitable regions.
field force connectivity during field/site exploration, appraisal and first phase construction, regardless of the availability or quality of the local terrestrial telecoms infrastructure. Installed at basecamp, BGAN’s guaranteed broadband data capability supports standard office applications for site engineers and geologists to send pictures to HQ for analysis; project managers to send reports/chase suppliers; and automated monitoring of oil wells and pipelines and remote diagnostics. Part of a tailored solution for the oil and gas sector, the service can report test results immediately, reducing find time and by helping aid decision making and contingency response, contributes towards reduced capital and operating costs.
Mobile satellite field services Today’s IP-based portable satellite services can help make communications from a remote site comparable to that of a modern office and just as familiar, with a mobile field operation centre providing voice, email, fax, online connectivity and remote, secure access to a VPN-enabled corporate network. While many oil and gas companies recognise the advantages of online connectivity for boosting productivity and driving down costs, a key priority for management is maintaining staff welfare through the provision of guaranteed communications. Creating a safe working environment for employees means providing safety measures for both on-and off-site operations. Portable or handheld satellite communications and Push to Talk (PTT) capability over BGAN allow field teams to venture into high-risk territories more safely, and expand their exploration capabilities, safe in the knowledge that they have access to reliable communications the minute they need it. Unified tracking solutions over the Inmarsat satellite network enable managers to monitor and manage personnel, assets, vehicles, vessels and aircraft via a singled unified network platform. When only a telephone is needed, especially for field workers moving quickly from site to site, or where a back-up system to BGAN is needed, Inmarsat’s handset offers
46 Oil Review Africa Issue Six 2013
complete satellite telephony, including voicemail, SMS text, Bluetooth and email messaging along with GPS location data. The rugged handheld has been designed with the end user in mind and is the first satellite phone to be designed specifically for Inmarsat’s I-4 Lband satellite network. On-site large-scale production typically brings additional health & safety challenges, especially during heightened operations. To provide extra safeguards, the inherent flexibility of satellite communications can extend to intrusion alerts and monitoring to ensure that all important safety procedures are being followed. Such measures can be implemented either through simple equipment set-ups such as a BGAN terminal integrated with an IP network camera or through larger and more complex surveillance systems that include access control, person on board and video surveillance solutions operating behind a combination of BGAN and VSAT services. Staff welfare has long been of paramount concern in the oil and gas industry, and it continues to be seen as a critical management priority with insurance premiums typically reflecting this. In some cases, an operation’s management can be rigidly measured by the number of incidents, so complying with the strict regulations by ensuring remote sites have guaranteed communications firmly remains a crucial commercial requirement.
Digital field operations In today’s connected or ‘digital’ field operations, companies want and expect to be able to manage their sites in real-time to enable faster decision-making, increased efficiencies, reduced cost, and enhanced security of staff. To track and monitor fixed or mobile assets, satellite-based machine-to-machine (M2M) applications are supported by satellite networks, with a range of integrated M2M services that give operators increased visibility of their business operations. By providing the widest image of assets across an entire operational area should an incident occur, for example a security threat or mechanical failure, specialists can rapidly assess the situation from their own office or deploy an onsite team to investigate and subsequently boosting productivity by reducing downtime.
Local presence, global reach Onshore or offshore operations will always benefit from deploying the widest range of cross-platform mobile and fixed satellite, microwave and wireless technologies. As one of the most recognisable and trusted brands in the industry, Inmarsat’s portfolio of mobile voice and data capabilities in the field have proven time and again to help improve safety and decisionmaking, increase productivity, and support field offices operations throughout each phase of operations. From M2M and SCADA services to high-speed broadband, and the next generation of high throughput, high capacity networks, the
company continues to address all communication needs, either as field sites are set up, as workers arrive on site, and also when teams are established on site. Inmarsat’s end-to-end solutions have been tailor-made for the resources sector with broadband technology that goes beyond just data connectivity. By meeting new application requirements, it continues to help the industry and its workforce with reliable, global mobile communications services that can be provided on day one, and where nothing else is required.
The inherent flexibility of satellite communications can extend to intrusion alerts and monitoring to ensure that all important safety procedures are being followed. High Throughput Satellites Continuing its programme of innovation, Inmarsat will soon begin launching the first in a constellation of three new generation satellites as part of a US$1.2bn investment in a High Throughput Satellite communications network, called Global Xpress. Global Xpress is a new high performance mobile broadband service utilising Ka-band frequencies. It will deliver high-speed broadband through more compact terminals, and at a lower cost, than existing VSAT services using spectrum that is far less congested. The three new geostationary 5th generation satellites will provide near global coverage (up to 70° North and 70° South) from a single operator with consistent high performance of up to 50Mbps (download) and the network reliability for which Inmarsat is renowned. It will also be the first time a commercial operator has utilised Ka-band radio frequencies to deliver a global satellite service. Global Xpress marks a significant milestone in the evolution of Inmarsat’s satellite fleet. As the company continues to develop a range of voice and broadband data connectivity services that are at the forefront of mobile satellite communications, it is also ensuring that it fully meets the growing demands of industries, such as the oil and gas sector operating in remote areas. Bringing new capabilities in customer applications, Inmarsat’s long-term strategy involves a vision where mobile satellite services are delivered through a combination of L-band and Ka-band satellites, harnessing the strengths of each to offer an unrivalled portfolio of solutions based on performance, mobility and affordability. With the first Global Xpress satellite scheduled to be available to support a launch in December 2013, full global coverage is on course to be achieved by the end of 2014. ■ www.oilreviewafrica.com
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Connecting your business. Wherever you are.
When it comes to staying connected, corporate customers worldwide rely on SkyVision, a leading provider of IP telecommunications solutions. SkyVision’s customized end-to-end solutions for the Oil & Gas sector offer a wide range of advantages: Enhanced crew welfare through reliable satellite connectivity for highspeed data applications, voice and video ÷ Ensured business communications between onshore and offshore teams Optimized business productivity with real-time interpretation of drilling data, for faster and more accurate analysis ÷ Guaranteed bandwidth necessary for real-time applications .SVIHS ZH[LSSP[L HUK ÄILY JV]LYHNL ^P[O seamless integration to the MPLS network ÷ Business continuity and disaster recovery assurance completely independent of terrestrial infrastructure Solutions for Maritime and Mesh networks Resilient design and Enhanced SLA
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GE’s industrial internet is mostly about energy efficiency and that’s not good news for the oil and gas sector. Ian Roullier reports.
The power of
one per cent T
HE INCREASING LEVEL of data has been an unstoppable, seemingly uncontrollable trend throughout the Internet age – an estimated 2.5 quintillion bytes of data are generated every day according to IBM. But GE believes that ‘big data’ generated by machines, and the intelligent interpretation of that data, will potentially reshape the future of industry itself and is currently investing heavily in the technology and systems to make this new economic age a reality. “The Internet will also transform global industries, joining human insight with machine intelligence,” the company said recently in the agenda for its Mind + Machines event. “Bringing minds and machines together has created something wholly new: the Industrial Internet – an open, global network that connects machines, people and data to enable better operations and smarter, faster decisions.” The Industrial Internet has the potential to cut across every industry, many of which GE is intrinsically connected with, and fundamentally change the way they function. “When we think about the products that we make, a jet engine or a gas turbine or oil and gas equipment, you’ve got material science that drives
48 Oil Review Africa Issue Six 2013
Remote monitoring of rigs has a number of benefits
‘I think that every industrial company is going to be creeping into analytics’
performance data prognostics and capability and that today is added to data and information technology,” said GE chairman and CEO, Jeff Immelt, at the event that was held inside London’s Battersea Power Station. The onus of the Industrial Internet is on smart machines, real-time data and advanced analytics. The positive applications for the oil and gas industry are manifold. As the demand for energy rises and oil and gas reserves become increasingly difficult to access, the increased productivity that the Industrial Internet can help bring to the industry could prove vital. “We decided maybe eight or nine years ago that the oil and gas industry was going to evolve in the same way the aviation industry evolved,” said Immelt. “There was going to be a more technical base and there was going to be room for somebody as a technical leader and aggregator, so we made big investments in the oil and gas space.” GE is working in partnership with many oil and gas companies globally, offering sensor and control technology, optimisation and diagnostics to ensure the efficient operation and predict potential failures of critical machinery. One such company is BP, which is working with GE to ensure that the operation of its rotating machinery at its production facilities is maintained effectively. The equipment includes compressors, generators and critical pumps that are vital to ensure the safe extraction and transportation of oil and gas globally.
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The onus of the Industrial Internet is on smart machines, real-time data and advanced analytics By analysing sensor data such as vibration, rotor position, temperature, pressure flow and other parameters, GE is able to identify changes in the operating condition of the machine or determine that the machine is no longer performing at its optimal capacity. Identifying the early onset of abnormal operating conditions minimises disruption and avoids unnecessary periods of downtime. To help extend the running period between overhauls without interruption, BP has deployed GE’s System1 and SmartSignal software across a number of its offshore production facilities. It is now able to remotely monitor its machinery and take advantage of support from any of GE’s dedicated remote monitoring centres around the world. Remote monitoring has a number of benefits, not least because it removes the need to bring extra staff on to the rig to undertake physical monitoring in an environment which can be plagued by hostile weather conditions. It also means that experts can be consulted remotely from anywhere around world, as required. GE assists BP to harvest and manage large volumes of data from sensors installed on its offshore machines. The amount of data being
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captured can be varied based on operating status and when a potential problem is identified so that an accurate diagnosis can be made and preemptive interventions taken. GE, which currently employs a team of 9,000 software engineers globally, also manufactures subsea trees tailored for use in waters of all depths. These can also be laden with sensors to provide customers with accurate, real-time data. “[It is] staffed with technology to control and monitor and make sure that the flow out of the wellhead is optimised in whatever respect you want to optimise it,” said Carlos Härtel, European managing director of GE’s Global Research Centre. “It sits on the ocean floor maybe 3,000, 4,000 metres underneath the water level and has to operate for approximately 25 years safely. “To make sure that you don’t have any disruptions, you want to take the data, send it back to the monitoring team and make sure that they have all the tools available to sense any minor disturbances to normal operations very quickly so they can take pre-emptive measures. The subsea trees are also typically furnished with lots of sensors, including a wellhead sensor. The more you can put on them, the more you can learn, the better it is.” GE has also developed its Measurement and Control Subsea Condition Monitoring system, also know as ‘The Cage’. Developed in Norway, the system sits on the sea floor or on subsea equipment and, via an array of sensors,
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The Industrial Internet has the ability to cut across every sector of industry
measures sound and electrical signals emitted from subsea equipment, often an early warning sign of developing leaks and other issues. Engineers designed the ‘eardrum’ of the system from special crystals that respond to sound wave vibrations and convert them into electricity. A single device can listen to sounds within a 500-metre radius. “[It] is a system that is in a sense a giant ear that sits on the ocean floor and is listening to what the equipment has to tell it,” said Härtel. “So that means you are listening to electromagnetic waves and from those data you can infer what actually equipment is doing around you, rather than using a lot of sensors on that equipment itself.” An array of attached carbon rods can also detect changes in the magnetic field generated by electrical cables, pumps, motors and other electrical equipment in a subsea environment, and spot ground faults or defective isolation. This sound information is sent to a seaborne control room where the data is analysed to help plan maintenance and component replacement programmes. The GE team is now developing a huge data library of sounds from existing subsea installations to add to the predictive capabilities of the system. According to GE, the system can be 10,000 times more accurate than traditional mass balance systems that measure differences in the amount of oil and gas flowing through the pipes to detect leaks. The condition monitoring system is already working in the North Sea and off the coast of Africa. “An acoustic signature from a piece of equipment is like a fingerprint from a human,” said Fabian Dawson, sales manager at GE Measurement and Control. “No two leaks or pumps are going to sound the same. We can filter out the background noise, like marine life, and listen only to things we want. You can determine the revolutions per minute of a compressor from the acoustic signal and then you can determine how hard it is working from the electrical signal. Taken together, they will tell you what the efficiency is.” The synthesis of big data and decades of engineering experience forms the backbone of GE’s offering in the oil and gas sector. The sector presents many challenges, but with the advent of big data and the Industrial Internet there is much scope to eliminate variability of performance and increase uptime in oil and gas exploration and extraction. “The harnessing of oil helped drive the Industrial Revolution,” GE’s Mind + Machines event agenda stated. “Now such transformative power is being driven by the next technological revolution, the Industrial Internet.” This revolution may well comprehensively change not just industries, including the oil and gas sector, but also alter the very way companies function. “The history of a big industrial company like GE is that we sell products to our companies and when they broke we would fix them. That’s still critically important, but I think the future’s all going to be about outcomes and performance,” said Immelt. “I think that every industrial company is going to be creeping into analytics because it’s the only way to guarantee that the products you sell are ultimately going to be successful.” n
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High-definition imaging while drilling SCHLUMBERGER HAS RELEASED its MicroScope* HD highdefinition imaging-while-drilling service. This service provides unmatched logging-while-drilling (LWD) imaging for reservoir description to enable detailed fracture characterisation and completion optimisation in Schlumberger’s MicroScope HD service provides conductive drilling fluids for all detailed logging-while-drilling images for reservoir well types, including horizontal description and completions optimisation. and highly deviated wells. “In unconventional and carbonate reservoirs it is critical for geologists to fully understand the fracture networks that may challenge drilling operations and those that will contribute to production,” said Steve Kaufmann, president - drilling and measurements, Schlumberger. The MicroScope HD service enables detailed formation structural modeling to identify fracture orientation that contributes to production. An understanding of how formations are deposited is further enhanced with the service through sedimentology analysis. For fracture characterisation, the MicroScope HD service delivers dimensions of fractures, which provides geologists a better understanding of the fracture network. The MicroScope HD service has been field tested extensively in reservoirs in the Middle East, Europe and Africa, as well as unconventional reservoirs in North America. More than 45 job runs have been completed, confirming that highdefinition images can be obtained reliably in conductive mud environments while drilling in oil and gas carbonate, sandstone and unconventional reservoirs.
Comprehensive solutions for the O&G industry SKYVISION GLOBAL NETWORKS Ltd, a leading global communications service provider, recently showcased its comprehensive end-to-end solutions designed uniquely for the oil and gas market at the OilComm 2013 Conference & Exposition in Houston. OilComm is the ideal platform for SkyVision to network and present its solutions into the fast-growing oil and gas industry, particularly in Africa, where the company has a broad customer base and strong local presence. This is the result of a comprehensive network of local partners and representatives, and SkyVision offices in Nigeria, Cameroon, Morocco, South Africa, Senegal, Guinea and Burkina Faso, coupled with the company’s hubs and PoPs situated across Africa, providing seamless VSAT and fibre connectivity to customers requiring communications to Africa and within Africa. Today, as more and more oil and gas companies across the globe are realising how reliable connectivity is critical to their business, oil and gas leaders must provide efficient and reliable communications in the field, and in between remote branch offices. With safety as the industry’s number one priority, SkyVision knows that reliable information flow in routine or emergency situations is the key to ensuring smooth, seamless operations. SkyVision’s solutions are suited to its oil and gas customers and are based over a wide range of connectivity platforms including: satellite/hybrid networks, WLAN, microwave, VHF/UHF, and fibre-optics. SkyVision also provides a wide range of crew welfare solutions, such as scratch cards for voice calls/internet, telemedicine, video on demand, WLAN hotspots, and on-demand entertainment. “SkyVision understands the industry’s unique challenges faced both offshore and at remote inland drill sites. By understanding their communications needs, we can address them and deliver reliable solutions to improve our customers’ productivity and network security,” commented Doron Ben Sira, SkyVision CEO.
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