Exploration World February 2015

WWW.EXPLORATIONWORLD.COM

FEBRUARY 2015

THE BEST AND WORST

OF NATURAL GAS

ELECTRICITY GENERATION WHY AFRICA COULD BE THE BIGGEST VICTIM OF LOW OIL PRICES HOW US LNG PROJECTS ARE STAYING VIABLE DURING OIL PLUMMET

EDITOR’S COMMENT “ W H E N T H E W E A T H E R C H A N G E S , nobody believes the laws of

physics have changed. Similarly, I don’t believe that when the stock market goes into terrible gyrations its rules have changed.” – Benoit Mandelbrot

We are always living in the best or worst of ages depending on who you ask, but the least common perception that one would tend to hear is that we inhabit an era of mediocrity. Standards of living have never been higher. Ebola has claimed more lives than in any previous outbreak.

Technological innovation occurs at a rate today that dwarfs all previous years on record.

But what’s the one view you will likely not hear? That we’ve seen these ups and downs before and that it’s nothing special this time.

There’s value in trying to see the full picture. That doesn’t mean looking for the fine print that says the sky is falling and you’re Chicken Little. It means removing yourself from the equation entirely; realizing that you are but a small variable—as much as that can hurt—in a great and evolving mechanism that allows good men to become great and the best ideas to rise to the top.

In that same fashion, it’s important to see the full picture with regard to oil. Many people’s jobs and pockets have been affected greatly by the recent plummet in the price of a barrel. But we have been here before and we will continue to find a way—after we’re done licking our wounds.

Finally, take a look at which American states are the early adopters of a natural gas-centric electricity system—and which are lagging behind.

Thank you for reading Exploration World and as always please enjoy.

Ian Hanner Editor ian.hanner@wdmgroup.com 3

CO CN OTNETN ETNST S FEATURES

6 Production & Transport

How U.S. LNG Projects Are Staying Viable During Low Oil Prices

12 Business & Operations

Why Africa Could be the Biggest Victim of Low Oil Prices

COMPANY PROFILES

AFRICA 24 Comarco Group

AUSTRALIA 42 TDC Drilling

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February 2015

42 TDC Drilling

18 Top 10

Top and Bottom 5 States UsingNAMCOR Natural Gas for Power

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PRODUCTION & TRANSPORT

HOW U.S. LNG PROJECTS ARE STAY VIABLE DURING LOW OIL PRICES How long will the advantage last?

W R I T T E N B Y: I A N H A N N E R

6 February 2015

YING W

7

PRODUCTION & TRANSPORT RECENTLY HERALDED AS the harbingers of an age of natural gas, massive liquefied natural gas (LNG) projects worldwide are being threatened by the drop in oil prices.

However, while the plummeting price of crude is threatening projects from Australia to Canada to Africa, there’s one place where they might still be on solid footing: the United States.

This is largely to do with the pricing model within the nation that tethers the price of LNG to the volume of gas purchased rather than the Brent Crude benchmark.

First, some basics. LNG is the byproduct of a process that converts natural gas from a gaseous state to a liquid one. This is essential to make overseas shipment financially feasible. While running the gaseous resource through a network of pipes, adulterants are stripped from the mixture, such as water, mercury, hydrogen sulfide and others. When left with just methane and some ethane, the mixture is cooled to negative 162 degrees Celcius, making it 1/600 the volume as when the process began.

While the massive facilities required to produce LNG can by no means 8 February 2015

HOW U.S. L

be called cheap, the promise of expanding natural gas markets worldwide— especially in China and Japan—has attracted investment from Shell to Chevron, ExxonMobil to Woodside Petroleum and many more.

Australia has seen a great deal of development as companies try to tap into its natural gas wealth that had previously been thought uneconomical, such as the offshore Browse Basin. While not as far along in the development process, Canada is also a major player trying to find ways to more cheaply export its gas.

So why is it that these projects may be threatened while the United States’ equivalents are spared?

As pointed out by Bloomberg, “The deals that link crude and LNG prices are widely used in Asia, as a cost of about 14 percent of the value of a barrel of Brent for every million British thermal units of gas. Falling oil prices mean cheaper LNG, making the fuel from the region more competitive with U.S. exports and more attractive to buyers.”

They add, “For sellers, sliding prices threaten profit for LNG terminals.

Projects in Australia, for example, would get less than $7 per million Btu of LNG; they need at least $14 to make

L N G P R O J E C T S A R E S TAY I N G V I A B L E D U R I N G L O W O I L P R I C E S

a profit, according to a study from Harvard University’s Belfer Center for Science & International Affairs.�

So by contrast, what does the American system look like?

Well, producers in the U.S. rely on a fee that scales with the amount of gas the buyer is looking to purchase,

keeping American LNG exports profitable even with a barrel of oil selling at less than $50.

According to Bloomberg, Cheniere Energy, the developer of the Sabine Pass LNG terminal, gained 63 percent in 2014 on the announcement it would be shipping LNG by year-end. As 9

PRODUCTION & TRANSPORT

Cheniere Energy’s Sabine Pass LNG facility in Louisiana is one of the largest in the world. (Cheniere Energy)

Exploration World, previously pointed out, the Sabine Pass facility is the biggest in the world by the amount of natural gas it can liquefy in a year, with Total’s Yamal LNG and Chevron’s Gorgon LNG facilities trailing close behind.

While the Sabine Pass LNG facility 10 February 2015

is the first in decades to be built on American soil, other companies are wasting no time trying to build ones of their own, with Sempra Energy and Dominion Resources breaking ground on two separate projects in October and other companies planning further developments.

The supply of natural gas in the U.S. has never been higher and hasn’t been cheaper in some time, down from $10.79 per thousand cubic feet in July 2008 to a little more than $3 today, according to the U.S. Energy Information Administration (EIA).

EIA data also shows that gross

withdrawals of natural gas in the U.S. exceeded 30 quadrillion cubic feet in 2013, up about 28 percent from 2006 just before shale gas production exploded in the country. The most recent data suggests it’s only climbed exponentially higher for 2014 and indicates it will climb further in 2015.

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BUSINESS & O P E R AT I O N S

WH T

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February 2015

HY AFRICA COULD BE THE BIGGEST VICTIM OF LOW OIL PRICES

Will market turmoil threaten economic stability in the region?

W R I T T E N B Y: I A N H A N N E R

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BUSINESS & O P E R AT I O N S WHILE CONSUMERS IN the United States enjoy significantly lower prices for gasoline at the pump, citizens of some other nations may be more hesitant to describe the dive in oil prices as a positive.

As oil prices have continued to plunge over the last six months, politicians and analysts alike have talked about the serious implications a sustained drop has for the economies of Russia, Venezuela and other iconic oil states. Media coverage has often focused on the apparent battle for supremacy between OPEC and American shale producers. And recently the internet was abuzz with billionaire investor and Saudi Prince Alwaleed’s prediction that oil prices would never again reach $100 per barrel.

However, one crucial component of the equation has been largely left out of the discussion: Africa.

Exploration World has previously talked about the ways the explosion in shale production in the United States has impacted the most prominent African oil states. For example, Nigeria, which is currently struggling with internal instability largely brought about by militant group Boko Haram, saw U.S.-bound oil exports drop from 14

February 2015

WHY

a high of over 425 million barrels in 2005 to about 102 million barrels in 2013.

This is a problem for Nigeria, which relied on oil for 70 percent of the country’s revenue in 2011, according to the Natural Resource Governance Institute. The solution to that problem was relatively simple: find a new buyer.

“What we have seen is that more and more of the West African oil is now heading to Asia,” Amrita Sen, chief oil analyst with Energy Aspects, told Financial Times in 2014. “China and India are big buyers of West African crude oil as opposed to the U.S.” The situation isn’t quite that simple any longer.

Regardless of what market Nigeria is able to sell its supply into, lower prices for oil means the country is going to bring in a lot less revenue. And Nigeria isn’t the only African nation in this predicament, with oil forming a large portion of the economies of Angola, Algeria and Sudan.

Economic interruptions aren’t welcome in any country, but especially ones that are already so wracked by poverty and have such extensive histories of internal strife. A 2009 report from the International Monetary Fund found that the country’s top 10

Y AFRICA COULD BE THE BIGGEST VICTIM OF LOW OIL PRICES

Nigeria’s capital city Lagos. Nigeria is taking a significant impact from dropping oil prices.

percent of earners received more than one-third of the nation’s total income, according to New Security Beat. A different study found that income per capita has quadrupled in Nigeria since 1990 as the oil industry carves out a bigger presence, but that the rate of

people living in poverty has hovered consistently above 60 percent.

The decline in oil prices jeopardizes plans to use these countries’ hydrocarbon wealth to mitigate poverty and improve quality of life.

An August 2014 report from Ernst & 15

BUSINESS & O P E R AT I O N S

WHY

Michael Schwartz

Africa’s blossoming O&G industry has employed thousands.

Young said, “There is a distinct wave of optimism pulsing through the African oil and gas industry. Particularly so in the eastern part of the continent, which has historically seen little oil and gas development, recent discoveries could transform the landscape, 16

February 2015

fuelling widespread economic and social development.”

“Resources generally, and oil and gas specifically, have played an important role in this growth,” the report added. “African countries continue to increase their production

Y AFRICA COULD BE THE BIGGEST VICTIM OF LOW OIL PRICES

of oil and/or gas; revenues from higher prices and the investment that new discoveries are attracting, have made a key contribution to growth and developmental initiatives.”

No one can say with certainty that oil will never fully rebound—as Alwaleed

predicted—but if the drop in prices is sustained much longer, it’s likely Africa will be home to some of the countries hardest hit.

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TOP 10

Top and Bott Using Natural

Which states are lagging beh

Written by: Ian

tom 5 States Gas for Power

hind in utilizing the resource?

n Hanner

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TOP 10

NATURAL GAS PRODUCTION has never been higher in the United States, thanks in large part to the blossoming, albeit threatened, hydraulic fracturing industry that has transformed the energy landscape of the nation.

While the country’s leaders try to figure out what to do with the glut of crude oil that these operations have produced, natural gas has largely been touted as the more environmentallyfriendly energy source of the near future. Though estimates tend to vary greatly by source, the U.S. Energy Information Administration (EIA) estimates that natural gas produces about half as much carbon dioxide as coal and about 76 percent of that produced by other petroleum derivatives.

While many high profile companies push for a gradual shift toward natural gas, certain states have distinguished themselves as early adopters of a natural gas-centric electric generation network. Meanwhile, others have resisted the change.

Exploration World took a look 20 February 2015

at which states had the highest percentage of their electricity produced from natural gas and which had the lowest. We excluded Hawaii due to the limitations its geographical location presents.

These are the top and bottom five states by how much electricity they generated from natural gas in 2012, according to data from IHS Global Insight and the Department of Energy as reported

by America’s Natural Gas Alliance (ANGA). Global Insight has changed its name to Economics and Country Risk since the release of this data.

Due to the rapid change that America’s energy landscape has gone through in the last decade, it is likely that these rankings could have varied since 2012.

Top 5 States

5

Alaska – 55.50 percent

America’s northernmost state, Alaska has a wellknown wealth of crude oil, producing over half a million

T O P A N D B O T T O M 5 S TAT E S U S I N G N AT U R A L G A S F O R P O W E R

barrels per day. Discounting offshore production blocks, Alaska is the fourth highest oil producing state in the nation. Less publicized is Alaska’s natural gas potential.

The EIA estimates Alaska has about 9.579 trillion cubic feet of proved natural gas reserves and the 11th highest gas production rate in the country. Alaska was also the first state to begin exporting liquefied natural gas (LNG) with the 1969 opening of the Kanai facility. The state produces 55.50 percent of its electricity from natural gas.

4

Florida – 56.10 percent

This sunny state is known for its beaches, retirement communities, Disney World and the Everglades. Less known is its prolific use of natural gas, despite holding a relatively low amount in proved reserves (about 16 billion cubic feet). The EIA ranks Florida 23rd in overall gas production, but second in overall electricity generation behind Texas. According to ANGA,

about 56.10 percent of that electricity was from natural gas.

3

Massachusetts – 59.80 percent

According to the EIA, Massachusetts has three LNG import terminals, though only one has been utilized since 2010. That terminal supplies roughly 20 percent of New England’s natural gas, with the rest being delivered by pipeline.

2

Nevada – 67.40 percent

According to the EIA, Nevada is ranked 32nd in overall natural gas production levels. In fact, more than 90 percent of the state’s energy comes from outside its borders.

ANGA reports that Nevada generated almost 68 percent of its energy from natural gas in 2012.

1

Rhode Island 98 percent At such a small size and 21

TOP 10 with a relatively small population, Rhode Island consumed less electricity than most other states in 2012. With no major natural gas production within its borders, this state too must import large amounts of the resource from outside. Rhode Island led the country is natural gas utilization, generating nearly all of its electricity with the resource.

in 2012. In addition to its thriving coal industry, “Wyoming accounted for 7.4 percent of U.S. marketed natural gas production in 2013,” according the EIA. Despite this statistic, just over 1 percent of its total electricity was generated by natural gas in 2012.

Bottom 5 States

According to the EIA, Venezuela holds the second largest proved reserves of crude oil in the world after Saudi Arabia. In 2012, the EIA put that number at approximately 211.2 billion barrels. Venezuela has had a storied past few decades with the U.S. following a takeover by now deceased President Hugo Chavez whom upon taking office enacted a series of socialist reforms across a wide range of sectors, one of which being the oil industry, leading to some protests of gasoline retailers in the U.S. who purchased and sold Venezuelan oil.

5

Wyoming – 1 percent

Wyoming produced 39 percent of all coal mined within the U.S. in 2012, according to the EIA. In fact, eight states other than Wyoming received more than 90 percent of their coal from the state

4

3 22 February 2015

West Virginia – .20 percent

Wyoming – .20 percent Mexico has had a tough

T O P A N D B O T T O M 5 S TAT E S U S I N G N AT U R A L G A S F O R P O W E R

last few decades in oil and gas. This year, Mexico’s congress voted to overturn a 76-year-old constitutional amendment that granted exclusive oil and gas production rights to Pemex, Mexico’s state-owned energy company. By some estimates, Pemex alone accounts for nearly one-third of Mexico’s total tax revenue, leading in large part to the reforms as the company has shown progressively declining oil production in recent years. Despite the slump in production, Mexico still came in third in crude oil exports to the U.S. in 2013.

2

Vermont - .10 percent

According to the EIA, “Vermont had the second lowest per capita natural gas consumption of all states in 2012.” The state set itself

apart by producing 70 percent of its electricity from nuclear power in 2013, making it the leader in nuclear reliance. Another 20 percent of its overall power came from hydroelectric resources.

1

North Dakota – 0 percent

North Dakota is home to the thriving Bakken shale formation, which has driven a major increase in the amount of oil produced in the U.S. According to the EIA, North Dakota produced more oil in 2013 than any state but Texas. They estimate that overall oil production levels increased by nearly 177 percent between 2010 and 2013. The state also has a large supply of coal from its expansive reserves, which account for 6 percent of the nation’s total recoverable coal. That might have something to do with why North Dakota generated over 79 percent of its electricity from coal in 2013, according to the EIA.

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Comarco Group: looks to m

momentum with projects in E Written by: Tom Wadlow Produced by: Richard Deane

comarco

maintain growth East Africa and beyond 25

COMARCO GROUP

This leading marine and specialised contractor is broadening its industry portfolio while continuing to deliver firstclass turnkey and standalone services from its Mombasa heartland

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February 2015

T

he Comarco Group is expanding its industrial and geographical footprint as it looks to build on 44 years of experience in the industry.

Driven by work as far as Brazil, the company has a series of exciting projects in line for 2015, which include a renewed venture in Myanmar, alongside several others outside of oil and gas, allowing it to remain flexible and active in a period of industry uncertainty.

This said, Comarco is in a prime position to supply its unique services to the huge LNG projects ramping up in Mozambique, and Tanzania With continuing growth and corporate maturity, Managing Director Simon Phillips is expanding

E X P L O R AT I O N W O R L D

Comarco Supply Base, Mombasa, Kenya

the group’s Corporate Social Responsibility (CSR) activity beyond the valuable community-driven work already underway in Kenya.

“We would like to develop and foster our current growth path over the next five years, and this will mean we can boost our HSE and CSR activities,” he said. “We aim to reach the highest working practices which will have a positive impact on our work force, our customers and the community in which we work.”

Mombasa Hub Key to driving further growth is The Comarco Group’s flagship supply base adjacent to the Port of Mombasa, a crucial hub of activity for both the

Comarco has grown from a 2 to 16 acre mini port since 1975

w w w. c o m a r c o g r o u p . c o m

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COMARCO GROUP

COMARCO GROUP

AFRICA

company and clients, from small local operators to blue chip giants including British Gas (BG) and Anadarko.

Having started out as a two-acre site in 1975, it has now grown to a 16-acre facility with is own deep water quay for clients of all sizes, able to accommodate ships up to 130 metres long. The flexibility and control offered by this service hub is an important pull factor for customers.

“If, for example, a client such as BP or Anadarko have a drilling programme they will need a supply base with dedicated berthing, and we provide them with their own mini port so they can work independently of the main Port of Mombasa,” Phillips said.

“They rent the space and we provide the cranes, trucks, forklifts, people, open-air storage and jetty access, whatever they need” – Simon Phillips, Managing Director

Comarco Base in 1974

Salvage tug

w w w. c o m a r c o g r o u p . c o m

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COMARCO GROUP

Marine Construction, Kenya

Stanford Buzzard, seen alongside the Comarco Berth 30

February 2015

“It is a private facility which means they have control over their operations and can maintain the highest HSE standards, which is critical for these companies”.

“They rent the space and we provide the cranes, trucks, forklifts, manpower, open-air storage, warehousing and jetty access, whatever they need, so they can control their shore based operations and ensure they do not encounter delays on their drilling. The cost of offshore drilling

E X P L O R AT I O N W O R L D

can be around $1 million a day so it is paramount that delays and problems do not occur.�

The Comarco Group has embraced the importance of diversifying business away from oil and gas, with Mombasa also being used as a general cargo and logistics springboard for projects in and outside of East Africa. For example, the company helped to supply the World Food Programme, The Red Cross and other international agencies through its port. w w w. comarcogroup.com

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COMARCO GROUP

INFINITE SOLUTIONS FOR THE OFFSHORE INDUSTRY

Dan-Bunkering is one of the world’s leading offshore bunker suppliers with more than 30 years of experience servicing oil rigs, seismic vessels, construction vessels, cable layers, crew boats, and many other types of vessels across the world.

Even remote areas are within our reach With oil exploration moving to more remote areas, the need for flexible supply infra-structure is significant. Thanks to our experience in the offshore industry combined with a fleet of more than 30 tankers and an in-house chartering department, we can offer you unprecedented supply and storage solutions at offshore or onshore locations worldwide.

www.dan-bunkering.com

Rokem, an IALA industrial member, is a professional manufacturer and supplier of various AtoN products in China including high-tech products like RMB, Racon, AIS, SSS and remote monitoring system etc.

Best quality together with best service is the creed of Rokem.

Address: 9D Double Dove Great Tower, 438 Pudian Road, Shanghai 200122, China Tel: +86-21-50810062, 50811396 Fax: +86-21-58818728, 58302954 E: info@rokem.com www.rokem.com/Aton.htm

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February 2015

COMARCO GROUP

AFRICA

From Mombasa and further afield, Comarco, through its several divisions (construction, marine projects, vessels and logistics), can offer clients any number of its varied marine services and is able to provide these on a full turnkey solution, or on a standalone basis with selected component parts to suit the client’s individual requirements.

Marine and general contracting services include supply base management, marine construction, commercial diving services, vessel chartering and cargo haulage.

However, it is The Group’s marine and specialised logistics services which differentiate it from other operators and forms the core brand of Comarco, with Instant Ports, Beach Landings,

Comarco can offer clients any number of its varied marine services

280T P&H Crane Salvage, Canda, Mozambique (2011) w w w. comarcogroup.com

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COMARCO GROUP Stevedoring at Sea, and the patented EBOS for Exposed Beaching Operations leading the service Comarco offers.

Comarco is developing an instant port for the Palma project ‘Comarco and Copenhagen-based Thorco Shipping have established a dedicated subsidiary to provide turnkey solutions for transporting any size cargo to the remotest and most challenging areas accessible by sea.’

Instant Ports In the niche field of “Instant Ports”, Comarco and Copenhagen-based Thorco Shipping have established a dedicated subsidiary to provide turnkey solutions for transporting any size cargo to the remotest and most challenging areas accessible by sea.

Formed in September 2014, Instant Ports combines the expertise of both partners and can draw on a fleet of modern 5,000-20,000 DWT cargo vessels along with cargo barges, tugs, trucks, cranes, forklifts and an experienced workforce as well as the Industry Renowned EBOS. An Instant Port is ideal for oil and gas, exploration and other project-related operations that require an environmentally-friendly, rapidly deployable and removable, beach landing site, especially at remote locations in marginal sea conditions.

Specific services include beach and site surveys, bathymetric and geotechnical surveys, project management and engineering, handling of local permissions and the delivery of heavy lift and out of gauge cargo.

Diversifying A number of other notable projects set for 2015

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February 2015

AFRICA

showcases the scope of work the company is able to carry out, keeping the project book healthy through an uncertain period for oil and gas exploration and development.

A joint venture with multinational bunkering specialist Dan Bunkering has just been initiated, involving the purchase of an offshore bunkering vessel. The Comarco Pemba, 2,439 dwt, has been delivered to East Africa and is now in operation.

Phillips said: “Dan Bunkering is working in East Africa to help supply the growing number of offshore projects which need fuel, together with seismic and exploration work happening up and down the

Comarco offshore vessel

www.crownpaints.co.ke

Crown Paints

HERE’S TO A COLO U RFU L PARTNERSHIP Crown Paints Kenya congratulates Comarco Group for over 40 years of hard work, dedication and extraordinary growth. We look forward to an even brighter future.

COMARCO GROUP

Size and flexibility With a versatile fleet of over 85 multipurpose vessels, Thorco Shipping is able to accommodate the diverse requirements of any project. In addition to a global presence, the size of our fleet offers our clients great flexibility, as we often have a variety of vessels to choose from for any cargo in a

Europe

Thorco Shipping A/S Tel. +45 6320 3000 europe@thorcoshipping.com

Asia

Thorco Shipping Pte. Ltd. Tel. + 65 6922 8620 singapore@thorcoshipping.com

Thorco Shipping www.thorcoshipping.com

Exceptional Service.

Personal Attention.

In order to provide comprehensive solutions to multi-faceted financial services industry requirements, and to deliver a strong client-focused approach across a range of insurance products, servicing corporates medium –size businesses and individuals in South Africa and the rest of Africa, the Pogir Group consists of four separate companies: Short Term Insurance, Healthcare Solutions, Employee Benefits and Life & Advisory.

Visit us online to find out more: www.pogirgroup.co.za

36

St Andrews office park, Block A, Ground Floor 39 Wordsworth Avenue, St Andrews Bedfordview FTel:e(011) b r 879 u a7200 r y | Fax: 2 0(011) 1 5454 - 0581

particular area. On the shore side, Thorco Shipping offers full flexibility as well. With our highly-skilled personnel and 15 offices spread across the globe, we are available around the clock and always able to deliver fast and reliable transport solutions, to clients from any time zone in the world.

North America

Thorco Shipping America Inc. Tel. +1 (281) 404 4250 usa@thorcoshipping.com

South America

Thorco Shipping Brazil Ltda.

Tel. +55 213 388 0837 brazil@thorcoshipping.com

AFRICA

coastline, which this vessel can serve in addition to conventional shipping and fishing fleets.”

Comarco Group has also recently invested in a dedicated salvage tug, the CSC Nelson, which at 150t BP is currently the largest of its kind operating on the eastern coast of Africa The Nelson is currently in dry dock in Durban being prepared to be used for long distance towage and salvage. Nelson will be owned and operated

by Consolidated Salvage Company, a Comarco Group company.

Geographically the company is also broadening its horizons, with Executive Chairman Peter Phillips, the founder of the Group, returning to Myanmar to establish a new fully incorporated unit of the business.

“We have spent a lot of time in Myanmar and believe there is great potential there,” the MD

Comarco Tug

Offloading 235-ton portions, Mozambique

w w w. comarcogroup.com

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COMARCO GROUP

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February 2015

COMARCO GROUP

AFRICA

Comarco’s global footprint

added. “While there is the challenge of limited infrastructure, it also represents opportunities for us to get involved with development of the country and offer our services and experience.”

Other markets the group has already reached include Malaysia, Singapore and Indonesia, and Malawi and West Africa are possible target destinations for this year.

Giving back As the group continues to grow and have a greater impact in the communities in which it operates, Phillips hopes it can expand its CSR reach and impact.

“Our main CSR activities at the moment are in Kenya, sponsoring events, working with the community and neighbourhood to improve and upgrade the area...”

– Simon Phillips, Managing Director

w w w. comarcogroup.com

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COMARCO GROUP

Comarco Supply Base, Mombasa, Kenya

Comarco is working with the communtiy in Kenya

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February 2015

“Our main CSR activities at the moment are in Kenya, sponsoring events, working with the community and neighbourhood to improve and upgrade the area, and developing schools and paying school fees for employees who qualify through a means test,” he said.

“The infrastructure and municipal resources in Kenya has been quite severely stretched in recent times due to urbanization and population growth.”

Comarco teams help to remove litter and clean roads, and are also building a park so children can play safely. A pilot canteen scheme is another initiative that has been received well, providing food, water and sanitation in parts of Mombasa

AFRICA

Company Information INDUSTRY

Exploration World HEADQUARTERS

Mombasa , Kenya FOUNDED

1971 EMPLOYEES

450 REVENUE

Not disclosed

lacking these facilities.

A new sponsoring initiative will see line managers of the 450 workers nominate the brightest company prospects, who in return for at least three years of commitment to Comarco will receive added high-quality training.

Growth will be key both to Comacro Group’s commercial and social success, and Phillips is carrying positivity into the new year on the back of new lines of business being generated from Mombasa and elsewhere as in Myanmar.

He concluded: “I am optimistic and believe that much of the current hesitancy surrounding industry will disappear as 2015 progresses.”

PRODUCTS/ SERVICES

Offshore Marine; Construction; Supply Chain and Logistics

w w w. comarcogroup.com

41

TDC Drilling:

Australia’s Most Capa Field Services Operat

Serving a vital role in Australia’s energy develo Written by: Ian Hanner Produced by: Wayne Masciotro

able ator

opment

43

TDC DRILLING

Service Rig #8 model SR242, ready to run completion string after cleaning out well with air.

M

erging high quality equipment and practice with a local approach to business, Australian-owned and operated TDC Drilling has participated in the development of Australia’s vast oil and natural gas resources.

TDC Drilling was established in 44

February 2015

1987 by Ron Dean and Malcolm Cole to provide hard rock drilling services to Australia’s vast mining industry as the pair dedicated time to their families. The partners decided in 2000 to take their more than 20 years of experience in the oil fields and begin shifting

E X P L O R AT I O N

TDC Drilling service rig

focus to oil and gas operations, predominately in Queensland and Northern Territory.

TDC specializes in workover rigs, diamond core rigs, air compressor packages and a range of rental equipment and is considered a valued service provider in Australia. While headquartered

in Perth, the company’s office in Roma, Queensland serves as its base of operations.

Now, after years of evolution, the partners have taken their decades of experience in the oil business to become a contributing party in the quest to bring Australia’s long neglected resources to the market. w w w. t d c d r i l l i n g . c o m . a u

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TDC DRILLING “We’d been eyeing this coal [development] for a while,” said Cole, who serves as the company’s Managing Director.

“It’s a Gas field project and our strongest background was in oil and gas, not mining. So we headed over there to market our air compressors and started gaining contracts as an air compressor operator. We did that for a few years and from there it was a natural progression to [coal seam gas].”

Coal seam gas [CSG] takes advantage of Australia’s immense coal deposits to produce methane gas, or natural gas. In coal seams roughly 300 to 1,000 meters below the surface, methane gas is trapped in fractures in the coal deposit—known as cleats—and the matrix of the coal deposit itself.

CSG currently supplies roughly 90 percent of Queensland’s natural gas supply and accounts for roughly 17 percent of its electricity generation, according to Arrow Energy.

Manufacturer of Irontech service rigs, slant rigs, rod rigs, pump trucks and mud tanks.

Complete repair and Level 4 services including engineering and design.

Office: (780) 960-4881 Fax: (780) 960-8840 Email: shane@irontechrig.com

11-53016 Hwy. 60 (#11 Acheson Road, Zone 3) Acheson, AB, T7X 5A7, Canada

www.irontechrig.com

E X P L O R AT I O N

Typical Queensland summer storm during commissioning of Rig 11 at our Field Base in Roma, Qld.

Origin Energy is one of four major energy companies with a hand in a large-scale CSG development in Queensland called Australia Pacific LNG, alongside Santos, Arrow Energy and BG (QGC). With a multitude of backers from Royal Dutch Shell to ConocoPhillips to PetroChina, each E&P company has been stepping up exploration efforts over the last few years, according to Cole.

From various production sites, the gas is transported via pipelines over 500 kms in length, to Curtis Island, a small body of land about 474 kilometers northwest of Brisbane.

On Curtis Island, each company has been developing natural gas liquefaction and export facilities to transport the resource to markets abroad, predominantly in Asia. “Those plants are being commissioned now, so they’re w w w. t d c d r i l l i n g . c o m . a u

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TDC DRILLING

Rig 8 BOP set up with Double Gate Rams and Annular in cramped location.

Origin Energy Wellsite.

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February 2015

E X P L O R AT I O N

virtually finished,” Cole said. “Three different pipelines are all in the ground and I see BG sold their pipeline to a pipeline infrastructure company the other day. But they’re all looking to start production this year. [Unfortunately] there’s a bit of a lull in the industry and I believe it’s caused by the massive reduction in oil price.”

Cole added, “We’ve been working mainly with one client, Origin Energy. Up until the end of last year we had six rigs working for them. We still have a couple rigs contracted to them. Within a few months the major operators will be pumping gas down the pipeline and demand for our services will increase,” said Cole.

Moving forward into the future, Cole is confident that TDC Drilling will be able to maintain its position as a lean, local and Australian owned field services company with an eye for quality and an emphasis on safety.

“We’re pretty happy with the amount of equipment that TDC own,” he said. TDC is sized to meet its current market share and is quick to adapt to market growth. Our crews are nearly all from, or settled, in the surrounding communities.

We have invested a lot of time and resources into skills training of our crews with an excellent track record and full enrolment for the new National Competency Standards training system.” He added, “Our ability to maintain and efficiently repair our equipment, utilizing local suppliers when possible, keeps us at the forefront of the service industry.”

Company Information INDUSTRY

Exploration HEADQUARTERS

Welshpool Western Australia FOUNDED

1987 EMPLOYEES

250 REVENUE

N/A PRODUCTS/ SERVICES TDC Drilling Pty Ltd is a Western Australian based company that has been providing professional services to Australia’s oil and gas industry since 1987.

TDC Drilling was initially established by present shareholders, Ron Dean and Malcolm Cole, to provide hard rock drilling services throughout Western Australia.

However, competition and economic conditions brought about a change of direction for the company, and in 2000, they entered the coal seam gas industry.

Today, TDC Drilling is considered among the top service operators in Australia’s coal seam gas industry, with an extensive inventory of equipment working in SouthEast Queensland.

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