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VOLUME 13 | ISSUE 1 2018

Gas: the future fuel for Africa?

Enhanced oil recovery: Global perspectives on the market Foreign investment in Ghana Nigeria: Petroleum Industry Bill update Operations: Safety on rigs, big data, airborne surveys, recruitment

Ebiaho Emafo, Managing Director and CEO, Eroton (p34) S01 ORA 1 2018 Start_ORA Master Template - 2016 New 19/02/2018 15:18 Page 2 S01 ORA 1 2018 Start_ORA Master Template - 2016 New 20/02/2018 10:55 Page 3

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VOLUME 13 | ISSUE 1 2018 EDITOR’S NOTE

There is an inexorable shift in the African hydrocarbons landscape away from oil and towards Gas: the future fuel gas. While oil will still play an important role in the continent’s energy mix for many years to for Africa? come, gas is a cleaner-burning fossil fuel and widely viewed as an effective and efficient bridging

Enhanced oil recovery: Global perspectives on the market fuel as the world moves towards increased use of renewables. On page 12, economist Moin Foreign investment in Ghana Nigeria: Petroleum Industry Bill update Siddiqi analyses the prospects for gas across differrent parts of Africa. Operations: Safety on rigs, big data, airborne surveys, recruitment In this issue, we also provide updates on Nigeria and Ghana. While Nigeria’s lawmakers are seeking to get the Petroleum Industry Bill over its final hurdles, Ghana is working to make itself

Ebiaho Emafo, Managing Director and CEO, Eroton (p34) more attractive to foreign investors. We will watch the developments in these two West African countries with much interest. Operators are always seeking new ways to work more efficiently so we have a special feature We seek to answer Africa’s big gas questions on on leveraging big data in the oil and gas industry, as well as reports on preventing slips and falls page 12. (Image: Adobe Stock/Frog974) on rigs, airborne surveys and the future of the enhanced oil recovery market.

Georgia Lewis Managing Editor

CONTENTS

Managing Editor: Georgia Lewis  [email protected] NEWS AND EVENTS TECHNOLOGY AND OPERATIONS Editorial and Design team: Prashanth AP, Hiriyti Bairu, Miriam Brtkova, Ranganath GS, Rhonita Patnaik, Samantha Payne, Rahul Puthenveedu, Deblina Roy, Nicky Valsamakis, Louise Waters Calendar of oil and gas events Recruitment Publisher: Nick Fordham 4 Important diary dates for the 21 The five main factors that will affect months ahead. the African oil and gas job market. Sales Director: Michael Ferridge Magazine Sales Manager: Chidinma Anah African hydrocarbons news Big data Tel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076 E-mail: [email protected] 6 Updates on the oil and gas industry 22 How data can optimise operations. from across the continent. International Representatives Safety systems India Tanmay Mishra Nigeria Bola Olowo Rig count 23 Preventing slips and falls on rigs. UAE Graham Brown 32 Monitoring the industry across a range USA Michael Tomashefsky of African countries. Dow Head Office: 24 Enhanced desalination. Alain Charles Publishing Ltd COVER STORY University House, 11-13 Lower Grosvenor Place, Airborne surveys London SW1W 0EX, United Kingdom Emerging markets for the 26 Unlocking Africa’s final frontiers. Tel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076 12 African gas industry Middle East Regional Office: Economist Moin Siddiqi on the Enhanced oil recovery Alain Charles Middle East FZ-LLC challenges and opportunities. 28 Prospects for the global market. Office L2-112, Loft Office 2, Entrance B P.O. Box 502207, Dubai Media City, UAE Tel: +971 4 448 9260 Fax: +971 4 448 9261 Mergers and acquisitions Production: Srinidhi Chikkars, Nelly Mendes and Rakshith Shivakumar COUNTRY FOCUS 29 Will 2018 be a year of deal-making? E-mail: [email protected] Subscriptions: [email protected] Nigeria Innovations Chairman: Derek Fordham 18 Will 2018 finally be the year of the 32 Technology to improve operations. Printed by: Buxton Press Petroleum Industry Bill? © Oil Review Africa ISSN: 0-9552126-1-8 INTERVIEWS Ghana 20 The drive to attract foreign investment. Catobi 17 Dr Okey Ukaegbu, Managing Director Bright times ahead 30 EnerMech is upbeat about Nigeria. Eroton 34 Ebiaho Emafo, Managing Director and CEO Serving the world of business S01 ORA 1 2018 Start_ORA Master Template - 2016 New 20/02/2018 10:57 Page 4

4 EVENTS CALENDAR ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM Executives Calendar 2018 FEBRUARY APRIL 26 Feb- Nigeria Oil & Gas Conference & Exhibition 17-19 Mediterranean Offshore Conference (MOC2018) 1 Mar Abuja Alexandria, Egypt www.cwcnog.com www.moc-egypt.com MARCH MAY 7-8 Offshore Well Intervention Workshop, West 23-24 Africa E&P Summit Coast of Africa London Accra www.africaepsummit.com http://interventionwca.offsnetevents.com/ 29-31 Oil & Gas Expo, Power & Energy Africa 2018 14-16 East Africa Oil & Gas Summit & Exhibition Nairobi Nairobi www.expogr.com http://10times.com/the-east-africa-oil-and-gas-summit JUNE 5-6 Ghana Summit Accra www.cwcghana.com Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change. Most oil and gas projects over budget: new research

NEW RESEARCH HAS found “Time is the biggest cost driver that nine out of 10 oil and gas in the oil and gas industry. It costs projects worldwide exceed their between £250,000 and £500,000 a budgets, leading to higher prices day to drill an oil well, and given for consumers. that it is a 24-hour process, not This is according to a study by functioning can cost a company Dr Evans Akwasi Gyasi, an millions. academic from CU Coventry, part “I chose to focus my study on of the Coventry University Group, sub-Saharan countries where which found that there is a dramatic companies regularly explore for level of overspending by businesses oil and gas, and after four years of in the oil and gas industry. research and analysis, I found that Dr Gyasi said that factors such nine out of 10 projects exceed as poor cost estimation, change of their budgets. scope, lack of proper risk “Trends like these are Image Credit: Coventry University identification and response plan, particularly apparent in oil and delays in the supply chain and gas, but are relatable to several broader economic factors all play other industries so this warning a part in spiralling budgets for oil should be heeded by businesses in and gas operators. These are then all sectors.” reflected in the price consumers Dr Gyasi has incorporated his pay for fuel. research findings into teaching on The research, sponsored by the the Management & Leadership Ghanaian government, took place Dr Evans Akwasi Gyasi found that 90 per cent of oil and gas projects run over budget. degree programme at CU over a four-year period and saw Coventry, where students are consultations with 33 industry in the decade between 2005 and change in the oil and gas industry, taught by industry professionals. experts from across the UK, 2015. but other sectors where cost He added: “Leaders play a Ghana, Angola and Nigeria, each Dr Gyasi is author of the new overrun is a common issue. critical role in cost management. with at least 15 years of experience. book A Bayesian Approach to He said: “There are many Educating future leaders on the Interviews with project Cost Estimation for Offshore examples of poor planning in the importance of cost control managers, engineers and cost Deepwater Drilling. He hopes that industry, where companies throw strategies will help shape the estimators highlighted the trend his findings will not only lead to their budgets overboard. future of a range of industries.” S02 ORA 1 2018 News_ORA Master Template - 2016 New 19/02/2018 15:23 Page 5 S02 ORA 1 2018 News_ORA Master Template - 2016 New 19/02/2018 15:23 Page 6

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Helium gas to become an important driver of industrialisation in Tanzania

HELIUM IS SHOWING early promise as a fuel for industrial purposes across Africa (see cover story, page 12) and Tanzania is one of the countries with high hopes for the development of this gas. Helium One is one of the companies leading the way in the East African country with surveying and exploration activities underway in the Rukwa Region. In partnership with the Geology Department of the University of Dar es Salaam (UDSM) and Oxford University,

Helium One organised a workshop at USDM to Image Credit: Helium One build local capacity and awareness of the origin, exploration and development of helium in Helium One’s CEO, Thomas Abraham-Janes presents a sponsorship certificate for an Oxford University programme Tanzania. to Karim Mtili, a science graduate from the University of Dar es Salaam. The workshop’s main objectives were to bring together experts, scientists and findings on helium in the context of enhancing geology department, decision makers, stakeholders from local, national and industrialisation in Tanzania and globally. The development partners, policy developers and international communities to share their workshop featured high level scientists from practitioners from government, researchers, expertise, experiences and disseminate research Oxford University, collaborating with UDSM’s private sectors, and the media. S02 ORA 1 2018 News_ORA Master Template - 2016 New 19/02/2018 15:23 Page 7

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Waste gas-to- Gas-fired electricity plant O&M contract power plant part of Siemens’ plan for Sudan to be built in SIEMENS HAS SIGNED an Ghana Operation and Maintenance (O&M) contract with the GHANA IS SET to embrace Sudanese Thermal Power waste gas as a fuel for power Generating Company (STPGC) plants in a bid to improve energy which covers the running of the security and reduce flaring. Garri Power Station in the GE Power and Marinus North of the Khartoum, as well Energy have announced a pilot as the Port Sudan hydropower project to capture Isopentane gas plant on the country's Red and use it as a fuel source for Sea coast. generating electricity. The The Garri Power Station is a

Atuabo Waste to Power gas-fired operation and is set to Image Credit: Siemens Independent Power Project will continue playing an important The signing of the contract between Siemens and the STPGC. be the first TM2500 power plant role in the development of Sudan in sub-Saharan Africa to use after many years of civil and turbines, we are best positioned monitoring and preventative Isopentane gas as a fuel source political unrest. to partner with STPGC. This maintenance.” and will run on GE’s latest Sabine Dall’Omo, chief agreement is also tangible Since the signing of the TM2500 gas turbines. This executive of Siemens Southern & evidence of our mutual long term memorandum of understanding Isopentane gas would otherwise Eastern Africa said: “The O&M relationship with the country.” to cooperate in the areas of power have been flared. agreement will indeed minimise On a full time basis, the O&M supply, industry, transportation In the first phase, Atuabo will the operational risks and contract offers the full benefits and healthcare during WEF convert the Isopentane fuel into maximise plant availability. As that digitalisation brings to the Africa, Siemens has established a up to 25 MW of power, the original manufacturer of the energy sector, such as remote local company in Sudan. generating enough electricity to supply power for more than 100,000 households. As additional gas is brought onshore, Africa Oil to boost south and west Africa the plant is expected to add on additional gas generating units assets with investment in Impact Oil and Gas up to a capacity of 100 MW. Additional Isopentane fuel will AFRICA OIL CORP has entered The agreement with Impact Africa Oil CEO Keith Hill eventually be stripped off an into agreements that will provide provides for the purchase by said: "We are very pleased to offshore gas supply and processed it with an approximately 25.2 per Africa Oil of 59,681,539 ordinary acquire a significant interest in at Atuabo by the Ghana National cent equity interest in Impact Oil shares and 29,840,769 ordinary Impact which holds a highly Gas Company. The gas turbine and Gas, a private UK company share purchase warrants for an attractive portfolio in west and will start on lean gas and transfer with exploration assets in South aggregate subscription price of south Africa that has the to Isopentane over time – the and West Africa. approximately US$15 mn. potential for major discoveries in plant is intended to operate at the short and medium term. base load throughout its life. Impact has done a great job of “Not only is the Atuabo waste acquiring these properties at to power plant enabling our modest prices and bringing in company to lead in innovative major oil companies to fund energy solutions in Ghana, but by upcoming drilling and seismic using a fuel source which would programs. This investment is a otherwise have been flared as strong complement to our waste, we are further reducing existing holdings in Africa emissions and costs,” said Fred Energy and ECO Atlantic and Asamany, strategic advisor of results in Africa Oil having Marinus Energy. “This is good exposure to some of the most for our business, the climate and exciting exploration plays in eliminates the potential Africa to complement our Kenya

environmental hazards facing the Image Credit: John Hickey-Fry/Flickr development project." local community..” Impact’s assets include an exploration project off Port Elizabeth, South Africa. S02 ORA 1 2018 News_ORA Master Template - 2016 New 19/02/2018 15:23 Page 8

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NNPC chief urges public-private partnerships for the Nigerian pipeline sector

GROUP MANAGING DIRECTOR of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, has urged the new board of one of its downstream subsidiary companies, the Nigerian Pipeline Storage Company (NPSC), to partner with the private sector to build more pipelines parallel to existing ones. He made this statement when he was inaugurating the newly formed board in Abuja in January, saying increased public-private partnerships would enhance the profitability of NPSC. “Your work also is to look at refurbishing Dr Maikanti Baru discussed using Nigerian LPG to meet domestic energy needs. these pipelines and storage along a Public Image Credit: Andrew/Flickr Private Partnership (PPP) arrangement by He urged NPSC to double its pipeline “a lot of LP is being exported” and it could getting willing private companies to invest in network over the next decade and to use the be “utilised domestically in line with our these pipelines. NNPC Management is very pipeline network to integrate the vision of providing alternative energy much disposed to supporting your efforts in butanisation depots which are used as sources for domestic and industrial use this regard,” Dr Baru told the board. reception points for LPG. Dr Baru said that nationwide.”

Tullow reports “excellent progress” with 2017 results with debt reduced and disciplined cost management

TULLOW HAS RELEASED an upbeat statement following its As well as a solid performance from the company’s West African announcement of full 2017 results, including revenue of US$1.7 bn plus operations, Mr McDade reported positively on its Kenyan appraisal lost production insurance proceeds of US$162 mn; gross profit of project: “The assessment of the results from our appraisal campaign in US$815 mn; post tax loss of US$189 mn after write-offs and non-cash Kenya also fully supports progress towards a major development of the impairments; and free cash flow of US$543 mn. South Lokichar Basin.” Tullow CEO Paul McDade said that debt has been reduced and Tullow has reset its exploration portfolio via disposals, farm-downs investment in high-return production assets in Ghana has increased and the addition of new positions in Côte d’Ivore and Peru. thanks to “strong production and disciplined cost management”. Over the next three years, Tullow is planning further exploration West Africa’s 2017 net working interest oil production, including campaigns, starting wuth the high-impact Cormorant Well in Namibia, production-equivalent insurance payments, averaged 89,100 bopd; one of the emerging hydrocarbons markets of Africa. Tullow hopes to 2018 production is expected to average between 82,000-90,000 bopd. start this exploration project in the second half of 2019. S02 ORA 1 2018 News_ORA Master Template - 2016 New 19/02/2018 15:23 Page 9

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ABB digital Egypt’s gas sector draws in new investment technology across multiple projects

on show in EGYPT’S GASNFUELLED economy is again taking off in the wake of a slew of major offshore Egypt discoveries that are now entering production. At the end of 2017, Italy’s Eni launched first gas ABB’S EOWN I3 Extended Control from the giant Zohr field. Its estimated 30 trillion Room Concept was on show at cubic feet (tfc) of reserves makes it the biggest gas EGYPS 2018, the Egyptian field in the Mediterranean. petroleum show held in February Other large projects have also commenced, in Cairo. The event brought including the Nooros field, another Eni venture. Then together private and government there is BP’s offshore Atoll field, north of Port Said, stakeholders from across the which also delivered first gas at the end of last year. country’s oil and gas industry. Indeed, BP now expects its net production from ABB Egypt demonstrated its Egypt’s Nile Delta to increase six-fold to more than digital solutions as part of its role 300 mboed by 2020, from 50 mboed in 2016. in helping the Egyptian Officials are once again bullish about the North government in its ambitious African state’s energy future. Indeed, the Egyptian agenda to unlock the potential of Ministry of Petroleum and Mineral Resources has

the country’s oil and gas sector. reportedly signed an 80-plus exploration and Image Credit: BP The concept shows critical production agreements in the past four years alone, The enormous Zohr gas field is already proving to be a data for oil and gas plants located with minimum investment commitments tallying tremendous success for Egypt. onshore and offshore on an more than US$15bn. It has sparked interest from interactive dashboard. It allows other major international players too, the likes of The turnaround follows a period of political and users to remotely monitor all ExxonMobil, not wanting to miss out on the economic uncertainty, in the wake of the ousting of plant aspects while analysing and opportunities. President Hosni Mubarak in 2011. viewing highly complex data. “The EOW is part of the ABB Ability solutions platform which presents a combination of Sonatrach, Alnaft and Cepsa sign equipment, systems and services that are digital and seamlessly 25-year Algerian exploration contract connected,” said Naji Jreijiri, managing director ABB Egypt ALNAFT, SONATRACH AND This 25-year contract provides facilities that will be built. North and Central Africa. “There Spanish firm Cepsa have signed a for a significant development plan This development plan includes is alignment between our new contract for the exploitation for this mature oil field after 19 the drilling of 30 new wells, the solutions and the Ministry of of hydrocarbons on the Rhourde years of production, with the aim construction of a new processing Petroleum and Mineral El Khrouf oil and gas field, of significantly increasing crude oil plant, a recovery unit for LPG and Resources new integrated located 320 km south-east of the production and producing LPG for facilities for the shipment of LPG, strategy, which aims to realise Hassi Messaoud oilfield. the first time, thanks to the new with an estimated investment of the petroleum sector’s full US$1.29bn potential by the year 2021.” The new processing facilities “Some of today’s technical will have a daily production problems didn’t exist a decade capacity of 24,000 barrels of crude ago, such as cyber security oil per day and 10,000 bopd of threats, broken control loops, LPG. safety system failures and The contract was signed by rotating equipment downtime. Arezki Hocini, chairman of the Our ABB Ability solutions for the Alnaft management committee, oil, gas and chemical sector Abdelmoumen Ould Kaddour, utilise our analytics engine to chairman and chief executive turn data into collaborative officer of Sonatrach, and Pedro actions across disciplines from Miró, chief executive officer of various locations,” said Ahmed CEPSA. It remains to be seen

Sherbini, ABB Egypt oil & gas Image Credit: Pieter Edelman/Flickr where oil and gas from the field business unit manager. Algeria’s Rhourde El Khrouf region as seen from above. will be refined. S02 ORA 1 2018 News_ORA Master Template - 2016 New 19/02/2018 15:23 Page 10

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Libya’s Jikharra oilfields restart production

LIBYA’S NATIONAL OIL Corporation (NOC) announced the restart of production at Wintershall AG’s As-Sarah oilfields in the Jikharra municipality, after they were shut down in November 2017 amid protests by people demanding jobs and more local development projects. In a statement, NOC was adamant that the shutdown was “unauthorised” and resulted in the loss of 4.4mn barrels of production and a cost to the Libyan economy of US$281,479,385. “The suspension of production by the company was done without the approval of the NOC as stipulated in the interim operating Wintershall’s Libyan operations resumed production after shutting down last year.

agreement between the parties,” according to Image Credit: Wintershall the statement, released at the end of January. Production was restored after a meeting The news of production restarting in NOC chairman Mustafa Sanalla described between NOC board member Abulgasem Jikharra comes alongside further signs that the the restart of production in Jikharra as a Shingheer and a Wintershall official. The As- Libyan oil sector is stabilising with Royal “setback” to the parallel Libyan oil administration Sarah oilfields contain Libya’s largest Dutch Shell and BP agreeing to annual deals to based in the eastern part of the country. productive deposit. buy Libyan crude oil. S03 ORA 1 2018 Cover story - Gas_ORA Master Template - 2016 New 19/02/2018 15:08 Page 11 S03 ORA 1 2018 Cover story - Gas_ORA Master Template - 2016 New 20/02/2018 11:00 Page 12

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The Karoo Basin in South Africa. Image Credit: Esther Westerweld/Flickr

EMERGING BRIGHT SPOTS FOR AFRICA’S GAS INDUSTRY

The scale of Africa’s proven and probable natural gas resources is significant. Challenges are not so much of exploration drilling but rather that of securing long-term capital to develop new gasfields and build local production hubs. Economist Moin Siddiqi shares his analysis.

AS DISCOVERIES the prolific Rovuma Basin could two countries – and sufficient for Nigeria also boasts vast gas WORLDWIDE have see Mozambique overtaking 30-50 years of production. reservoirs, but not yet developed. outsized oil finds by a Nigeria as Africa’s biggest holder Kosmos reported in January The Nigerian National Petroleum Gratio of two to one over of gas reserves. 2017 “After drilling to a total Corp (NNPC) estimates probable the past two decades. Driven by The largest gasfield in West depth of 5,000-plus metres, the reserves at 600Tcf, much of colossal finds in East Africa, Africa, which was discovered by well found “101 metres of net gas which lie in untapped deep and Africa’s gas reserves have risen by Kosmos, is off the Senegal- pay in two excellent quality ultra-deep offshore terrain in the some two-thirds in recent years. Mauritania maritime border and reservoirs”, which looks to be a Niger Delta. It’s proven reserves are The continent’s proven gas could be a game-changer. The “single, large gas accumulation”. 186.6Tcf. Neighbouring Cameroon reserves of 503.3 trillion cubic Greater Tortue acreage contains UK-based Wood Mackenzie has more gas than oil, with a feet (Tcf) at end-2016 (BP data) over 50Tcf of resource potential – noted: “We think it’s a world-class potential of 20Tcf, in the Rio Del were mainly concentrated in split roughly half between the asset with a good upside.” Rey (covering 7,000km offshore) Algeria, Egypt, Libya, and Nigeria and Douala/Kribi-Campo Basins, – accounting for 92 per cent of covering 19,000km area. Angola aggregate. The crown jewels are The crown jewels are the new and Gabon hold sizeable offshore new players Mozambique and oil-gas resources in the pre-salt Tanzania boasting recoverable players in the African gas industry, such acreage. gas estimated at 180Tcf and as Mozambique and Tanzania.” Wood Mackenzie believes 57Tcf, respectively. Further South Africa possesses a lot of exploration and development in prospective offshore acreage with S03 ORA 1 2018 Cover story - Gas_ORA Master Template - 2016 New 19/02/2018 15:08 Page 13

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potential for future giant discoveries. Last September, PetroSA and Rosgeo (Russian co.) signed a US$400mn deal to develop exploration areas off- South Coast of South Africa. The project – carrying out more than 4,000 sq km of 3D seismic operations and more than 13,000km of gravity-magnetic exploration works, as well as drilling exploratory wells – envisages producing 4mn cubic metres (cm) of gas daily as feedstock for PetroSA’s gas-to- liquids (GTL) refinery, in Nigeria’s Bonny Island has long been a successful gas project for the country.

Mossel Bay. Image Credit: Chike Roland Oraekwugha/Flickr “Discovery of hydrocarbons gas for domestic usage in power- Opportune, explained: “Sub- Hughes, project director at on our shores has the potential to generation and exports in the Saharan Africa lacks Worley Parsons, remarked: “It’s bring significant revenues to the form of liquefied natural gas infrastructure and local demand all about the return on country and prove the country’s (LNG), piped gas, and downstream to support the development of investment metric and companies oil and gas prospectively,” noted products like GTL. Deepwater gas resources. The global LNG are unwilling to take risks at the PetroSA. gasfields carry higher upstream glut means that SSA can’t rely on moment.” Whereas, floating LNG Additionally, the U.S. Energy costs than onshore oilfields. export markets to develop and (FLNG) facilities are more Information Administration Offshore associated gas in commercialise its gas. Therefore, economical – mostly smaller- (EIA) estimates SA holds 390Tcf Africa is mostly flared. US-based the development of a local gas scale ones. “FLNG units, of technically recoverable shale energy consulting firm, market is becoming essential to compared to onshore plants, gas resources, although estimates [supporting] a large-scale require little construction and by the Petroleum Agency South development of indigenous initial investment,” Opportune African put the figure at It’s all about resources.” Africa’s gas output in noted. There are, however, pitfalls conservative 40Tcf. The 2016 was 208.3bn-cm, equivalent such as limited expansion government has yet to issue any the return on to Iran’s total production. While possibilities and relatively shorter exploration permits for shale gas investment metric 2016 gas consumption was only operating life-span (20 years) reserves in the semi-arid Karoo and companies are 138.2bn-cm (BP data), compared with 25-30 years for Basin, which poses logistical and representing 3.9 percent of global most onshore terminals. FLNG environmental issues. unwilling to take total (3,542.9bn-cm). though has lower capital risks at the The economies of building expenditure but quite higher Industry challenges LNG plants in frontier regions operational expenditure. Proper infrastructures are needed moment.” are demanding because of ‘added’ to exploit and monetise ‘stranded’ infrastructure spending. Paul Commercialisation of gas SSA is the likeliest hotspots for Gas could be used to improve access to electricity for communities across South Africa. greenfield FLNG projects. Last June, the first final investment decision (FID) was taken for Eni- operated Coral South FLNG project in Mozambique. The US$8bn facility, with 3.4mn tonnes of annual liquefaction capacity (expected online 2022) will tap about 16Tcf of gas in- place. BP (off-taker) will purchase the entire output over 20 years from Eni. Project contactors are Samsung Heavy Industries, JGC Construction International and Technip. Eni Area-4 (Mamba complex and Coral site) holds an estimated 85Tcf. Image Credit: Africa Lights 6000.co.za/Flickr S03 ORA 1 2018 Cover story - Gas_ORA Master Template - 2016 New 19/02/2018 15:08 Page 14

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The region’s first small-scale Could Africa develop LNG to rival Prelude? FLNG project led by Perenco – in partnership with National Oil Co. (SNH) and Golar LNG Ltd – is due online end-2017 with a capacity of 1.6bn-cm/year and Gazprom as the sole offtaker. While Fortuna FLNG export terminal in Equatorial Guinea is poised to become Africa’s first deep-water liquefaction facility situated near the prolific Niger Delta complex. The project, utilising Golar’s FLNG technology, will produce 2.2mn tonnes per year by 2020 and Shell and Vitol (oil-trader) are short- listed as likely off-takers. Sponsors are Ophir, Golar and Image Credit: Shell Schlumberger – a FID is expected Anadarko Area-1 prospect – assuming a FID is sanctioned by estimates electricity outages on soon. Estimated in-place and (Prosperidade and 2023 latest. The onshore project is average cost SSA countries about recoverable mean resource Golfinho/Atum complexes) holds currently in the pre-Front End 2.1 per cent of GDP with nearly numbers are 553bn and 426bn an estimated 75Tcf. FID has yet Engineering Design (FEED) stage. two-thirds of Africans lacking cubic feet, respectively, based on to be announced. Mozambique Sponsors are preparing an LNG electricity. Africa relies mostly on Ophir data. has enough gas for about 10 commercial framework, which expensive and dirty diesel There are ample resources for trains producing a total of 50- outlines the rights/obligations imports. Gas is a cleaner and an LNG development, offshore 60mn tonnes per year – both between the government and cheaper alternative. An United Senegal and Mauritania. An FID from onshore and offshore investors in the process of Nations report (2014) calculated is anticipated in 2018 for a facilities. This could make the executing a mega-project. Reports that gas in East Africa could reach 2.5mn-tonnes per year FLNG country the fourth-largest LNG indicate an environmental impact power plants at between US$5-15 facility. Kosmos plans to deploy producer, after Australia, Qatar study will be carried out at per million British thermal units two FLNG units with first export and USA. proposed plant location, Likong’o (Btu), depending on proximity to from vessel-1 starting in 2021 A consortium of Statoil, BG Village in Lindi Region. power plants. By contrast, diesel followed by vessel-2 in 2023. (owned by Royal Dutch Shell), for power generation can cost Kosmos reckons its project could ExxonMobil and Ophir Energy) Local benefits African industry between break even at US$142 per are planning a US$30bn, 10mn- Africa’s under-utilised gas US$20-40/mn Btu. 1,000cm. In Nigeria – fourth- tonnes per year LNG plant in reserves can solve chronic power Hydrocarbons companies are largest global LNG exporter in Tanzania that could start by 2028 shortages. The World Bank required to supply natural gas as 2016 – a greenfield project ‘Brass feedstock for local power LNG Liquefaction Complex’ with generation, industry and for two liquefaction trains (total general consumption, prior to capacity 10mn-tonnes/year) are exporting the products. One at initial engineering phases. The analyst said: “Local beneficiation project led by NNPC, Total, and of hydrocarbon resources is being Eni is, however, several years prioritised to ensure development behind schedule. The Nigeria for the benefit of the local LNG (NLNG) facility on Bonny population.” Island also plans expanding its There is huge potential across capacity to 30mn tonnes per year Africa for about 400 gigawatts of by building a seventh train. gas-generated power, with There are two mega onshore Mozambique, Nigeria, and LNG projects in pipeline in East Tanzania alone could account Africa. Anadarko Petroleum in for three-fifths of the total Mozambique plans to produce capacity, according to Mckinsey 12mn-tonnes per year using two Global Institute. trains and later expanding The International Energy nameplate annual capacity to Agency (IEA) projects Africa’s 20mn-tonnes. The cost of Phase- electricity generation to 1 is assessed at US$26bn. Gabriel Mbaga Obiang Lima, Equatorial Guinea’s energy minister. quadruple by 2040 with gas-to- S03 ORA 1 2018 Cover story - Gas_ORA Master Template - 2016 New 19/02/2018 15:08 Page 15 S03 ORA 1 2018 Cover story - Gas_ORA Master Template - 2016 New 20/02/2018 11:05 Page 16

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power increasing its share to one- Exploiting stranded gas quarter from 17 per cent in 2014. reservoirs is a logical target of In West Africa, gas can fuel half foreign energy majors. of overall electricity output by Governments that provide 2040, IEA said, driven by reforms attractive business environment in Nigeria – which last March and regulatory framework will be unveiled a US$15bn investment more successful in unlocking to boost generating capacity by their natural resource 4,000 megawatts within a decade. endowments, which in turn Presently, three power plants are generate future revenue flows and higher economic growth. In sum, East and West Africa Gas is a In Tanzania, the Lindi region will benefit from gas-to-power. waters have great hydrocarbons cleaner and (BCClimate Champions/Flickr) potential. 

cheaper alternative under-tender for construction Growing population, Author’s note: Proven reserves to the expensive, near the Abuja-Kaduna-Kano urbanisation and gradual shift to generally have 90-95 per cent dirty diesel imports (AKK) gas pipeline. low-carbon fuels all favour certainty of containing the amount There remain, however, major increased use of clean gas in specified. Probable reserves have a on which many hurdles across the region, notably Africa’s energy mix. The probability of 50 per cent, and African countries implementing commercial gas projected increase in SSA’s gas possible reserves an intended pricing to induce private production from currently six probability of 5-10 per cent. In rely for power.” investment needed for building billion to 13bn cubic feet per day some producing countries, the expensive infrastructure and gas in the next decade bodes well for majority of reserves claims have value chains. regional economic development. not been verified by external audit. S04 ORA 1 2018 Nigeria update - Ghana_ORA Master Template - 2016 New 19/02/2018 15:08 Page 17

ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM INTERVIEW 17

CATOBI NIGERIA SUCCEEDING THROUGH DISCIPLINE AND INNOVATION

Catobi Nigeria has come through some tough times in the oil and gas industry with a strategy of discipline, customer care and encouraging entrepreneurial thinking among employees. We spoke to Dr Okey Ukaegbu, Managing Director, Catobi Nigeria.

How was Catobi Nigeria entrepreneurial in how we affected by the drop in the encourage our employees to oil price? think, act and innovate. We Catobi was affected because the encourage transparency and drop in the oil price was felt open-mindedness. Those in top across all our clients, including management are disciplined IOCs, NOCs and EPCs. The total enough to ensure that the request of our services from our organisation’s performance goals clients dropped from 95 per cent are met while the company to 50 per cent. There was also culture remains intact. We also room to offer numerous find ways to add more services or discounts in order to win jobs, make our products bigger. even though, at the end, we had to make a lesser profit for the How important is it to ensure sake of client-business Nigerian local content relationships. requirements are met? The development and What have been some of implementation of local content Catobi’s biggest successes? has had a profound impact on We have an Original Equipment Catobi as well as the oil and gas Manufacturer partnership industry. It has opened up relationship with one of the best opportunities for we, the valve manufacturers in the world, Nigerian entrepreneurs, has Hawa Valves India. Our valve attracted investment into the maintenance workshop is economy, and brought about furnished with state-of-the-art opportunities for indigenous equipment and dedicated valve operators across the country. It is specialists for reliable solutions. therefore important that all Catobi Nigeria is in affiliation stakeholders should invest in the with The Valve Institute standards and uphold local Aberdeen, and Hawa Valves content requirements. Image Credit: Catobi India, and has been endorsed by Dr Ukaegbu is upbeat about Catobi’s prospects in Nigeria. the Nigerian Content What plans does the company Development and Monitoring industry, which ranges from valve trainees with hands-on training have for the future? Board, Oil and Gas Trainers selection, maintenance, assembly, experience using our well- We don't have the ability to Association of Nigeria, and pressure testing and calibration. equipped maintenance workshop. perfectly predict the future, but Petroleum Technology Our certifications are Catobi has a vision with a Association of Nigeria to provide internationally accepted as they What sets Catobi apart from creative thinking skills and valve technology training which are certified through the its competitors? behaviours to be well- is reckoned as the best in Africa continuous professional We have designed our corporate established as the first choice We offer courses that are Development program of the culture to be structured in the valve solution partner in African sought after in the oil and gas United Kingdom. We equip our way we operate, yet we are still oil and gas sector.  S04 ORA 1 2018 Nigeria update - Ghana_ORA Master Template - 2016 New 20/02/2018 11:08 Page 18

18 NIGERIA ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

WILL 2018 BE THE YEAR OF THE PIB?

After the Nigerian senate passed the Petroleum Industry Bill in 2017, the Nigerian hydrocarbons industry will be keeping a close eye on the House of Representatives in 2018. Georgia Lewis reviews the state of play.

HE NIGERIAN OIL and gas industry got off to an eventful start in 2018 with Ta pipeline fire in Edo state. According to Reuters, the gas supply to several power stations was temporarily cut off after a fire on the NNPC-owned Escravos-Lagos pipeline system near Okada in the first week of 2018. Additionally, OPEC reported that the biggest rise in oil output in December 2017 came from Nigeria with exports reaching a 21-month high, although shipments fell short of that level. In the meantime, oil and gas operators will be closely observing the Nigerian House of Representatives for any indication that the Petroleum Image Credit: Dangote Group Industry Bill (PIB) will finally Aliko Dangote, owner of the Dangote Group, is confident about the prospects for his company’s Lekki refinery. pass and become law. There was much optimism in However, another potential Muhammadu Buhairi will run illegal refining of crude oil in the May 2017 when the Nigerian issue for swift passage of the PIB again. In the meantime, Nigeria’s Niger Delta region remains a senate passed the PIB, which was may come in the form of election political parties will start problem. However, the Dangote first drafted in 2008. Hopes were campaigning. Nigeria is campaigning and oil and gas Refinery, under construction at further raised when a scheduled to hold elections in policy is expected to be a major Lekki, is seen as an example for representative for the Nigerian 2019 but it is unclear if President issue. Economically, the news is the future of Nigerian refining, senate president, Bukola Saraki, mixed for Nigeria – the country with a move away from state- told the Nigeria Oil and Gas came out of its first recession in owned refineries and a bigger Industry Research and The Dangote 25 years in the second quarter of role in the downstream sector for Development Fair and Refinery is seen as 2017, but growth is sluggish with the private sector. Aliko Dangote, Conference in September 2017 ongoing reliance on oil revenues owner of the Dangote Group, is the National Assembly would an example for the and unemployment up. confident the refinery will be pass the bill by December 2017. future of Nigerian While Nigeria may still be built on schedule. Senator Tayo Alasoadura, waiting for the final passage of The Dangote Refinery is representing Senator Saraki, said, refining, with a the PIB, the other focus for the expected to produce 650,000 “We expect the report from the bigger role for the industry is refineries - existing barrels of refined oil per day with committee in no distant time and private sector.” refineries need to be upgraded a view to meeting Nigeria’s needs hope to pass the bills into law and there is an urgent need for as well as exporting to other within the next quarter.” new refineries. Additionally, countries.  S04 ORA 1 2018 Nigeria update - Ghana_ORA Master Template - 2016 New 19/02/2018 15:08 Page 19 S04 ORA 1 2018 Nigeria update - Ghana_ORA Master Template - 2016 New 19/02/2018 15:08 Page 20

20 GHANA ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

GHANA’S PUSH TOWARDS FOREIGN INVESTMENT

As Ghana seeks to develop its oil and gas industry, foreign investment is set to play a major role, particularly with major plans for improved infrastructure. One of Ghana’s leading commentators has urged caution amid the ambition. Georgia Lewis reports.

HANA HAS LONG welcomed foreign expressed in regard to plans by Ghana and investment in its hydrocarbons Nigeria to borrow heavily to finance long- industry and this trend is set to term infrastructure projects because they Gcontinue in 2018. Investment in oil might not generate sufficient revenue to and gas is part of Ghana’s broader mission to finance debt repayments. industrialise and, as well as direct investment However, USAID, the US government Image Credit: Nana Taa Ofori-Atta Image Credit: Nana Taa into hydrocarbons projects, an ambitious and agency for international development, far-reaching plan to improve the country’s released a more optimistic statement in infrastructure could have benefits for the oil December 2017 after participating in a and gas industry. conference in Ghana held under the theme of The Ghanaian economy is forecast to grow “promoting sustainable partnerships for on the back of increased oil and gas economic transformation” in the oil and production but, as public policy consultant gas industry. and commentator, Nana Taa Ofori-Atta In a statement, USAID described the event warns, “caution is required”. In a column as “part of a programme to improve the written at the end of 2017, Ms Ofori-Atta competitiveness of local businesses” for reported that Ghana’s Ministry of Finance stakeholders in the oil and gas industry. At intends to reprofile the country’s national the conference, participants shared lessons debt to seek longer tenures of maturing. learned and best practices and highlighted the “While our current credit rating by Fitch Nana Taa Ofori-Atta urges caution when it comes to achievements of local businesses in the has been revised from negative to stable, the B foreign investment in Ghana. industry. The theme of the event was category still puts us in the amber, caution “promoting sustainable partnerships for light for skittish investors,” she wrote. “Our “First, that the construction of the double economic transformation” and it aimed to fundamentals, particularly in macro track network would take four years; serve as a platform for local enterprises and economic stability and fiscal prudence must secondly, they would also build a single track business service providers to network with be religiously monitored and addressed.” rail system from Kumasi to the port city of major players in the oil and gas industry. Japan, Singapore and China are expected Takoradi, in the oil-rich Western region and The focus was very heavily on increased to play an increasing role in such thirdly; service roads will be built alongside private sector involvement in Ghana’s oil and investment with oil and gas being a target, the tracks to enable maintenance as well as gas industry. along with ports, railways, financial services access by emergency vehicles in the event of “Increasing local content can encourage and technology. accidents,” she wrote. “We are in a hurry to the development of expertise and create more Ms Ofori-Atta also cited European industrialise Ghana, other countries have business opportunities. To drive future investment in Ghanaian infrastructure as done this faster and better with lessons learnt expansion, the private sector must take the another trend to watch. Her comments came on matters quality, return on investments with lead and continue supporting the growth of in the wake of the German-French Railway particular regard to governance, cost, local businesses to meet the needs of Consortium (GFRC) winning a contract to community and environmental impact.” international oil companies,” said build a railway between the capital, Accra, While oil and gas operators may be excited USAID/Ghana Mission Director and Kumasi, Ghana’s second-largest city. She by the prospect of improved rail and road Sharon L. Cromer. said the statement issued by the consortium links, Control Risks,a global risk consultancy, To date, the programme has helped local of France’s Alstom SA and Germany’s Linde is also urging caution. In a report on risks businesses win 78 contracts with oil and gas AG “revealed much”. faced by multiple countries, concern was companies worth more than US$18 million.  S05 ORA 1 2018 Dow Editorial - Big data_ORA Master Template - 2016 New 20/02/2018 11:04 Page 21

ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM RECRUITMENT 21

THE FUTURE OF THE OIL AND GAS JOBS MARKET ACROSS AFRICA

A World Economic Forum report, released last year, outlined the five main factors that will affect the African job market in the years to come. But what will this report mean for the oil and gas industry. Oil Review Africa editor Georgia Lewis examines the report.

HE WORLD ECONOMIC Forum (WEF) on Africa report on the African job Tmarket came up with five major findings about the future of jobs and skills across the continent. Firstly, the report found that Africa’s young people are increasingly well-educated - at the current rates up to 20mn educated young people are expected to join the continent’s workforce annually until 2030. For oil and gas companies the

challenge will be to make the Image Credit: Eni most of this surge of talent across Oil and gas operators will need to capitalise on Africa’s young, educated workforce. multiple countries. Following on from this, the that education systems in Kenya, founded by Egbert Imomoh to While attracting high school report’s second finding was that Rwanda, Mauritius. Cote d’Ivoire support excellence in education leavers into STEM and ICT Africa could make more of its and Zambia were among the for African students. university courses remains a human capital. The WEF’s best-regarded by employers. Demand for STEM and ICT challenge, many oil and gas Human Capital Index, which There are examples of the oil and skills continues apace in Africa companies are offering graduate measures the extent to which gas industry stepping up to help with just 16 per cent of the programmes to develop and countries optimise their encourage talented young people, continent’s university-educated retain young talent in Africa. workforce, revealed that Africa, such as the Society of Petroleum workforce having studied This is essential as, according to on average, only captures 55 per Engineer’s Imomoh Scholarship, engineering, manufacturing or the report, “a number of African cent of its full human capital construction, 11 per cent ICT countries, at least for now, are potential, compared with a and 11 per cent natural sciences, still less exposed to the job worldwide average of 65 per cent. Demand for including geology, mathematics disruptions of the Fourth Western Europe and North STEM and ICT and statistics. In the STEM and Industrial Revolution America lead this index with ICT workforces, the WEF report (which we measure through the average scores of 80 per cent, skills continues found that the African oil and spread of latest technologies and followed by Eastern Europe and apace in Africa and energy sectors have a large diversification of local labour Central Asia at 75 per cent. attracting high proportion of engineering, markets).” In order to make the most of manufacturing and construction The report goes on to say that emerging African talent, the school leavers into employees at 44 per cent, 15 per these countries “must not waste report concluded that Africa’s university courses cent in natural sciences, this window of opportunity for education systems need to catch mathematics and statistics and, engaging in reforms. Indeed, up with the needs of today and of remains a despite ever-advancing these countries’ current capacity the future to meet the needs of challenge.” technology making its mark on to meet the requirements of the global economy. The WEF’s the oil and gas industry, just five future jobs leave little space for Executive Opinion Survey found per cent in ICT. complacency.  S05 ORA 1 2018 Dow Editorial - Big data_ORA Master Template - 2016 New 20/02/2018 11:04 Page 22

22 BIG DATA ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

THE IMPORTANCE OF ANALYTICS AND BIG DATA FOR OPTIMAL PERFORMANCE

Could 2018 be the year when the global oil and gas industry truly harnesses the potential of big data for minimising downtime and taking a proactive rather than reactive approach to maintenance? Georgia Lewis reports.

AST YEAR, ETF chairman Phil Simons SIGNIFICANT steps were said: “The offshore oil and gas taken to ensure oil and gas industry has a wealth of Loperators use data information at its disposal. productively. The OPEC Harnessing new methods and Secretariat launched the Oil and technologies to mine that Gas Big Data Project in April information, and openly 2017 and presented the results at sharing the results, is good news the ADIPEC conference in Abu for everyone in the sector.” Dhabi in November 2017. In a blog post from November At the launch, the OPEC 2017, Schneider Electric outlines statement said that today “large the four different types of

volumes of granular oil and gas Image Credit: Shell analytics which can be used to data are readily accessible to the Smart data analysis makes economic sense for oil and gas operators. increase asset uptime. They are public on various platforms, as real time analytics (“What is well as through the media. flexible framework to integrate company can “understand the happening now?”); historical However, the available data are data across the organisation for dependencies and relationships analytics (“What has happened?” rarely used collectively and in an deeper analysis” and put together of that data.” Deeper analysis – analysing past trends and optimal manner, due mainly to a white paper on the importance means that operators can “put in performance indicators to drive the lack of data ubiquity and data of big data connectivity. place valuable actions that can specific results and actions); centralisation and a unifying tool The white paper says that the repeat successful actions or predictive analytics (“What is that is both comprehensive and oil and gas industry needs to prevent failure [and] allow the going to happen?” – predicting simple enough to take advantage “rethink ... the current industry to make ... better the behaviours of an asset for of the plethora of data.” framework with which data and decisions to take advantage of proactive maintenance); and It was deemed that a tool was information is shared across the market opportunities.” prescriptive analytics (“What can required to “enhance the organisation.” It advises Oil & Gas UK, a London- we do to resolve the issues?” – understanding of the messages “breaking down the silos of data based industry body, has providing guidance on remedies). that big data conveys” and “take kept within each domain” so a launched a service that applies A survey by Petrotechnics on on board the complex and often predictive data analysis methods digitalisation in the oil, gas and multi-dimensional interactions of already being used successfully in petrochemical industry found data and advance overall The oil and other industries, such as aviation. that 65 per cent of respondents transparency.” The project aimed gas industry needs Developed by the body’s are deploying or planning to to develop a comprehensive, Efficiency Task Force (ETF), it deploy predictive analytics. But user-friendly multi-dimensional to rethink the aims to reduce costly critical the rate of engagement will only big data tool for analysing current framework systems failures. It is a data- increase if the industry keeps publicly available oil and gas data. and break down driven approach which takes pace with new technology – 51 Companies and professional information from a range of per cent recognise challenges to associations are also developing the silos of data to sources to understand what a embracing digitalisation, solutions, and producing make better “perfect day’s operation” looks including steep learning curves examples of thought leadership. like. The digital model can then (19 per cent), too much data (18 Teradata, for example, has informed decisions.” be used to identify issues across a per cent), and disengaged developed the Connected Well, “a system before lead to shutdowns. workforces (14 per cent).  S05 ORA 1 2018 Dow Editorial - Big data_ORA Master Template - 2016 New 20/02/2018 11:04 Page 23

ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM SAFETY 23

LOOKING OUT FOR NUMBER ONE

Martin Clark reports on how oil and gas operators can work towards improving employee safety on rigs by preventing slips and high falls. Lessons can be learned from a North Sea accident which happened last year.

HILE SAFETY GETS top billing on any rig or gas facility, the list Wof potential hazards may not always be so obvious. The prevention of spills, fire and explosions is fundamental to workers and written into every health and safety directive. But it is often other things – simple slips and falls, resulting in injury to an employee – that can undermine efforts elsewhere.And it is an industry- wide problem. One worker died last December after falling from Marathon Oil’s Brae Alpha platform in the North Sea, 155 Unless proper precautions are taken, oil rigs miles north-east of Aberdeen. can be a high risk environment for fatal falls. Indeed, past resoil earch by the Image Credit: Jerry Donaho/Flickr and Pat US’ Center for Disease Control and Prevention says falls from Westmark produce a whole range dropped objects, like heavy tools, spiralling insurance bills unless it height are among the most of products to avoid falls, from as much as stopping worker gets to grip with the issue. common injuries to oil workers. simple netting guards and safety falls.And now technology is Africa stands to benefit from It found that fatal falls occur gates to flooring mats and even stepping up to the plate to these advances and other best most often during rigging work tethered toolkits. enhance oil worker safety.US practices elsewhere.That includes or during removal or insertion of Many of these devices are safety gear manufacturer not only established producing drill pipe into a wellbore. geared to preventing damage by Ergodyne recently teamed up territories such as Angola and Of course, it is an inherently with tech firm Corvex Connected Nigeria, but also new and dangerous environment, but Safety for an initiative that emerging offshore markets like there are efforts to counter the Africa stands highlights exactly the threats Mozambique and Tanzania. All problem, beyond raising workers face, placing sensors into international operators employee awareness, and a great to benefit from protective clothing to produce have a comprehensive health deal of work has gone into advances in safety real-time risk analysis data. safety and environment (HSE) reducing risks during the past and best practices The companies reckon policy which is implemented on decade. As well as as awareness ‘intelligent safety gear’ means not all operations and service programmes, that also includes in established only preventing injuries, but, also providers worldwide. While each specialist worker gear, technical markets as well as from a practical business sense, and every oil field and reservoir flooring and safety barriers and reducing costs and boosting may be unique, the industry other structures to prevent such the emerging ones.” productivity. seems united when it comes to falls. International names such as The oil industry faces keeping its workers safe.  S05 ORA 1 2018 Dow Editorial - Big data_ORA Master Template - 2016 New 19/02/2018 15:05 Page 24

24 DESALINATION ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

ANTISCALANTS AND DISPERSANTS FOR ENHACING DESALINATION

Somil Mehta, technical service and development manager for Dow Oil, Gas & Mining, writes about increased demand for reverse osmosis (RO) and the challenges presented by scaling and fouling of RO membranes.

HE ADVANCEMENT OF Inorganic salt precipitation is reverse osmosis (RO) as a called scaling, whereas separation process to organic/inorganic or biological Tproduce pure water is a deposition is called fouling. relatively recent phenomenon, Antiscalants are chemical agents and gaining importance with rise that delay the inorganic salt in global water scarcity. However, precipitation from supersatured as filtered water is separated, the brines, and dispersants keep impurities from source water gets particulates dispersed to avoid concentrated in remaining brine; fouling. leading to scaling/fouling of RO With advancement of RO membranes. Such scaling reduce membranes and processes, the the performance of operation, reagents used to avoid increase operating costs, and scaling/foulingare also becoming eventually lead to plant more efficient and greener. There

shutdowns for cleaning. Thus is a trend of moving away from Image Credit: Dow increased demand for RO with environmentally harmful The desalination plant at Jebel Ali, Dubai, is an important step in the water varied source conditions is also phosphorous (P)-based reagents, management process. creating an increased demand for which cause eutrophication in controlling scaling/fouling; the water bodies upon discharge answer to which is antiscalants resulting into harmful effects on and dispersants. aquatic bodies. As the world Scaling/fouling are leader in antiscalant/dispersant organic/inorganic types of technologies, Dow offers a wide deposits that result on membrane variety of acrylic based, P-free surface during its operation. and thus greener, very specific chemistries that are more efficient, reliable and sustainable With products potable and non- advancement of potable RO applications. reverse osmosis The benefits of acrylic processes, water soluble polymers Dow has developed a series of reagents for high-performance water avoiding scaling treatment polymers based on Image Credit: Dow acrylic chemistry backbone and Reverse osmosis membranes at the Jebel Ali plant. Reverse osmosis technology has are becoming more free of P-containing species come a long way in recent years. efficient and toprevent scaling/fouling on RO greener.” membrane surfaces; these are molecular weight polymers institutional, and public water branded as ACUMER™ prevent hard water scale in many systems. Various chemistries are Antiscalants. These low types of industrial, commercial, specially designed based on S05 ORA 1 2018 Dow Editorial - Big data_ORA Master Template - 2016 New 19/02/2018 15:05 Page 25

ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM DESALINATION 25

charge, steric, and 1000 hydrophobic/hydrophilic interaction with a supersaturated salt solutions to provide superior efficiency. 800 Antiscalants function to inhibit crystal growth, distort crystal morphology, and disperse particles; the last mechanism 600 providing the dispersion effect. On account of its high efficiency and sustainability benefits, ACUMER™ are superior choices of antiscalants. 400 The benefits include: assisting in increasing the recovery rate and thus decreases feed water use for given volume of pure water 200 production; avoiding channelling(narrowing flow through non-scaled areas), resulting into better utilisation of 0 RO membranes and reduced 500 1000 1500 2000 2500 need for cleaning cycles; offer considerable savings in water Figure 1: Calcium tolerance. The x-axis is Calcium (ppm CaCO3) and the y-axis is Transmittance (mV). The top line represents and energy requirements; ACUMER. The next lines are, top to bottom, PBTC, HEDP, Polyacrylic acid, ATMP. Compatibility of various antiscalants with reducing the levels of chemicals brine (drop shows incompatibility). Conditions: 300 ppm antiscalant, 255C, increment of Ca2+ brine until significant precipitation. needed for pre-treatment, in the feed water itself and for phosphonates are based on P- concentration of Ca2+ in ppm Silica scale is a significant membrane cleaning. chemistries, and are more while the y-axis indicates problem in regions where ground harmful to environment transmittance generated when an water contains high levels of Comparison between compared to polymers. inhibitor precipitates to create a silica. It is one of the most polymers and turbid solution. difficult scales to remove once phosphates Application examples in One hundred per cent formed, and results in membrane As RO technology discovers scaling and fouling transmittance indicates a clear plugging eventually leading to more reuse and recycling prevention solution and thus no shut down. applications, scales other than the Use as antiscalant for high stress incompatibility between scale While Dow is already a typical calcium carbonate and conditions: The RO processes are inhibitor and brine. Dow is also technology leader with their calcium sulfate become the being pushed to its limits, offering its general purpose flagship antiscalant – ACUMER™ limiting factor. While the resulting in continuous urge to ACUMER™ 4035 to take care of 5000; to further enhance the conventional phosphonate based eliminate operational conventional scaling systems scientific boundaries, Dow is antiscalants show performance bottlenecks. More often than not, Use for enhanced silica scale developing innovative antiscalant only towards calcium scales, with increasing recovery, the control to increase recovery: targeted in particular high stress polymers have much better bottlenecks are scaling/fouling. conditions with silica flexibility to tune the chemistry To control them more effectively, concentration > 250ppm. This as per the scaling species. Thus there is a need for inhibitors to Acrylic will help end users achieve higher acrylic polymeric antiscalants can work under high concentration polymeric recovery in RO operations by be designed to perform on of Ca2+ or other multivalent pushing the limit for amount of calcium scales, as well as metal ions. antiscalants can be silica present in water. phosphates, iron, fluoride and Dow has developed designed to silica/silicates. ACUMER™ 4450, a calcium scale Conclusions Polymers can also be designed inhibitor that is tolerant to very perform on calcium RO is pushed to new limits to to give superior fouling control high calcium levels that are scales as well as meet the world’s needs for more by increasing the dispersion observed under high stress phosphates, iron, reliable and sustainable water propertiesand protect conditions. processes. Continued membranes from scale and Figure 1 (above) demonstrates fluoride and development efforts by Dow is fouling in the RO system, which the compatibility of inhibitor to silicates.” resulting in novel antiscalants/ is not possible for phosphonate brine containing high levels of dispersants that help stretch RO chemistries. Furthermore, calcium. The x-axis indicates to newer paradigms.  S06 ORA 1 2018 Airborne surveys - Enhanced Oil_ORA Master Template - 2016 New 19/02/2018 15:05 Page 26

26 SURVEYS ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

FLYING THE FRONTIER WITH AERIAL GEOPHYSICAL SURVEYS

Thanks to technical advances, aerial geophysical surveys continue to unlock frontier oil exploration lands in inhospitable areas across Africa. Martin Clark reports.

HE AIRBORNE SURVEY has long been used by the oil industry to gain insight Tinto large swathes of land, especially in frontier territories or very inaccessible areas. The Full Tensor Gravity Gradiometry (FTG) and magnetic survey provides a means to cover a huge area quickly, with minimal environmental footprint and deliver high-calibre geological information.It’s a major part of the upstream engineer’s toolkit for identifying hydrocarbons and to understand what’s going on beneath the surface. Canadian junior Oyster Oil & Gas hired specialist geophysical contractor Austin Bridgeporth in 2016 for an aerial survey when it

started to take a peek at acreage Image Credit: Stuart Rankin/Flickr in southern Djibouti.While the Aerial surveys are ideal for many African oil and gas exploration projects because they are well-suited to remote areas. East African country is not known for its oil and gas, many is now seeking farm-in partners airstrip close by to work from, border. The survey covered believe the potential remains. to accelerate the project. coupled with a delicate security nearly 23,000 sq. km. Oyster holds five explorations Its exploration chief, Dr Phil situation.The project ended up Inhospitable jungle environments blocks, and has been working Roach, said the airborne survey requiring the construction of fuel are also ideal for aerial studies. there for more than five years. studies “surpassed expectations” tanks, maintenance sheds, and At the end of last year, Austin The project consisted of a high and were helpful to de-risk the satellite dishes for communication. Bridgeporth completed another density gravity and magnetic venture and allowed the company It also meant utilising two planes piece of work for Oyster in airborne survey covering some to identify specific areas for to avoid any downtime, in case of Madagascar, in the southern part 3,350 line kilometres onshore and seismic acquisition in the future. mechanical issues. It’s a strategy of Block 1101, onshore. In West offshore, plus data processing. Certainly, the challenges of that’s been used effectively Africa, another player, Bell Results indicated that the working in such locations elsewhere, including the hostile Geospace, is currently finishing target Mesozoic sedimentary highlight why aerial surveys Sahara Desert. off airborne survey work for basin, which outcrops in the can be so effective – and UK explorer Sound Energy Simba Energy. The project covers southwest of Djibouti, extends cost-effective – especially in recently made use of an airborne 12,000 sq. km onshore in the across most of Block 1 and early days of exploration. FTG and magnetic survey in Republic of Guinea’s Bove basin encouraged Oyster to push forward In Djibouti, the contractor Morocco across its Tendrara, and 1,366 sq. km of the onshore into the next stage of exploration was working in a remote, desert Matarka and Anoual licences, coastal strip of Liberia lying last year.The TSX-listed explorer environment with no operating which sit close to the Algerian within the Roberts-Bassa basin.  S06 ORA 1 2018 Airborne surveys - Enhanced Oil_ORA Master Template - 2016 New 19/02/2018 15:45 Page 27 S06 ORA 1 2018 Airborne surveys - Enhanced Oil_ORA Master Template - 2016 New 20/02/2018 10:51 Page 28

28 ENHANCED OIL RECOVERY ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

STRONG GROWTH FORECAST FOR GLOBAL EOR MARKET

Enhanced oil recovery, the technology which extracts oil that cannot be obtained via conventional technologies, is set to experience a boom time in the coming years in Africa and beyond. Georgia Lewis reports. Image Credit: Werner Bayer/FlickrImage Credit: Werner

There are great technical and environmental challenges for recovering hydrocarbons in the Arctic.

CCORDING TO A report Additionally, Donald Trump In May 2017, TechSci released developed. Miscible gas by Global Market Insights, is seen as a pro-oil president with a research report entitled Middle represented the second-largest the enhanced oil recovery this reputation bolstered by East & Africa Enhanced Oil share of the EOR market in A(EOR) market could overturning former president Recovery Market, which these regions. exceed US$140bn by 2024. The Barack Obama’s ban on new oil projected a CAGR of more than According to the TechSci International Energy Agency and gas drilling along the US 10 per cent in the MEA region report, there is more potential (IEA) launched the EOR coast. In a statement, the US between 2012 and 2022. The for EOR in offshore operations Technology Collaboration Interior Department said the report attributed much of this with EOR being technically Programme to cut down the cost proposal called for 47 lease sales projected growth to adaptability difficult offshore. of existing techniques and over a five-year period. This is a of tertiary methods by Middle Plenty of big hitters in the oil develop new methods to enhance dramatic reversal of Mr Obama’s East countries, as well as year-on- and gas industry are keen for productivity. According to the ban, which protected 115mn year change in energy their slice of the potentially report, Algeria, Egypt and Nigeria acres of waters off the coast of consumption patterns and lucrative EOR pie, with are the potential growth areas for Alaska and 3.8mn acres in the anticipated change in global oil companies such as Schlumberger, the EOR market in Africa. Atlantic Ocean. However, a major demand until 2022. BHGE, Statoil, Kinder Morgan, The report cites more stripper stumbling block for drilling in In terms of methods of EOR, Chevron, Petroleum and marginal wells, plus growing the Arctic Ocean is immense in 2016, thermal methods were Development Oman, Lukoil, demand to produce oil for the technical and environemtnal most prevalent in the MEA Occidental Petroleum, lowest possible cost as drivers for challenges for E&P in such markets largely because of its Halliburton. ConocoPhillips, BP, the projected EOR boom. In remote and hostile conditions. effectiveness in areas where crude Denbury Resources, Shell, particular, the US is set to The feasibility of Mr Trump’s oil has a low API gravity and high ExxonMobil, NALCO, experience strong growth in line plans could depend on advances viscosity. However, this is Wintershall, Saudi Aramco, with increased demand for in EOR technology and expected to decline by 2022, with CNOOC, Linde AG and Abu petroleum products and growing willingness to invest in best gas and chemical methods, as Dhabi National Oil Company all E&P investments. practice techniques. well as new techniques, being getting involved.  S06 ORA 1 2018 Airborne surveys - Enhanced Oil_ORA Master Template - 2016 New 19/02/2018 15:05 Page 29

ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM BUSINESS 29

THE CHANGING FACE OF MERGERS AND ACQUISITIONS

Expect a good level of deal making in Africa this year and some new faces too, as NOCs track fresh opportunities abroad. Martin Clark reports.

HOUGH NOT EXACTLY at the heart of global mergers and acquisitions T(M&A) activity during 2018, Africa will no less drive a good level of business this year. That includes activity in North Africa and West Africa, notably Nigeria, say experts. "We expect to see an uptick in sub-Saharan African M&A activity, with Petrobras' deepwater assets in Nigeria, in particular, likely to attract strong interest,” Greig Aitken, principal analyst, corporate upstream at Wood Mackenzie told ORA.“Petrobras' deepwater business in Nigeria has world- class producing assets in Agbami and Akpo. But it’s also got Egina Chinese firms, such as Sinopec, have become cautious coming on stream in the next after a flurry of activity earlier in the decade. year, which offers near-term growth. The fiscal terms are Commons Image Credit: WhisperToMe/Wikimedia excellent, so we expect significant from Nigeria to Sudan. such as CNPC, CNOOC and Middle Eastern NOCs, which are competition with Asian NOCs But, after a bumper period of Sinopec, may have become more financially strong and on the likely to be front of queue." overseas expansion at the start of cautious, limiting deal size or lookout for deals. Indeed, the role of state- the decade, they have been teaming up with a big industry Certainly, the upward trend owned national oil companies, or largely absent from big M&A for major as equity partners. points to a more active deal flow NOCs, from outside the a few years. This absence pre- According to Wood in 2018. Last year, there were an continent could be worth dates the downturn, and relates Mackenzie, other NOCs may estimated 384 upstream M&A watching during 2018. Chinese to perceptions that many prior grab more headlines this year. It deals globally, according to NOCs have been enthusiastic acquisitions failed to meet reckons the Russian majors have WoodMac research – fewer than about Africa’s energy sector in expectations and deliver real been busy domestically in recent in 2016 (420) but more than the the past, picking up prized assets value. It means Chinese firms, years, but the Middle East and 2015 low point (334). Disclosed North Africa could represent a spend rose to US$143 billion – strategic expansion target for the highest since 2014 – and State-owned oil companies, such as Rosneft, in particular. India’s included two US$10bn-plus those in China and Russia, may be the ONGC – already busy in Africa’s transactions, the most since 2012. upstream sector – is reportedly Africa saw increased levels of ones to watch for M&A activity in 2018” on the lookout for acquisitions, as M&A spend in 2017, as did is Thailand’s PTTEP, and some Oceania and North America.  S07 ORA 1 2018 Rig Count_ORA Master Template - 2016 New 20/02/2018 10:49 Page 30

30 NIGERIA ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

INTEGRATED ENGINEERING PROVIDER IS UPBEAT ABOUT NIGERIA

Gary Duncan, Nigeria country manager for global integrated engineering provider EnerMech, and Doug Duguid, CEO of EnerMech Nigeria, are buoyant about future prospects for Nigeria’s energy sector.

AVING SPENT Duguid, who after a visit to THE last 16 years the Nigerian operations and working in the Egina Project, has agreed “HNigeria to further investment which I have experienced the highs will allow the company to and lows that a cyclical oil and expand the range of gas industry can throw at you equipment and number of and I was concerned that the assets held in-country. With most recent downturn would this extra resource, EnerMech exact a heavy price,” says Gary Nigeria can take a more Duncan, country manager for strategic approach to winning EnerMech Nigeria. new business and introduce “However, I have been more services. In addition, the surprised at how quickly company is currently Nigeria seems to be recovering providing flange management and the country does not seem and nitrogen leak testing on as deeply impacted as some Egina’s onshore and offshore other areas,” he added. phases, which will take the After the downturn which company up to Q1 2019. affected oil and gas operators “Other big ticket projects globally, Mr Duncan observes which are in the pipeline and that there is a renewed will further increase positive outlook across the confidence in the coming industry. years include Shell’s Bonga “There has been a marked Southwest project and Agip’s rise in optimism in the last few Zabazaba field and working months and you can sense that with our Nigerian partners things are starting to turn IGPES, EnerMech Nigeria is around. Operators are keen to hoping to be engaged across a get projects up and running, number of multi-disciplinary services on these multi- billion-dollar workscopes. There has “With a stable Government been a marked which is encouraging investment in important rise in optimism EnerMech is looking forward to infrastructure projects, Image Credit: EnerMech prosperous times in Nigeria. and operators Nigeria is in an advantageous are keen to get position to reap the benefits of albeit there is an increased environment of lower oil prices,” its position as Africa’s biggest projects up and emphasis on keeping operations he told Oil Review Africa. economy and the sixth largest oil running.” mean and lean. It is the same the That general optimism is producer in the world,” Mr world over in this changed shared by EnerMech CEO Doug Duguid added.  S07 ORA 1 2018 Rig Count_ORA Master Template - 2016 New 19/02/2018 15:02 Page 31 S07 ORA 1 2018 Rig Count_ORA Master Template - 2016 New 19/02/2018 15:02 Page 32

32 RIG COUNT ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM AFRICAN RIG COUNT

COUNTRY February 2017 March 2017 November 2017 December 2017

ALGERIA 50 51 55 50 ANGOLA 3 2 2 2 CONGO (BRAZZAVILLE) 1 1 2 2 EQUATORIAL GUINEA 0 0 1 0 GABON 0 0 2 2 GHANA 0 0 0 0 LIBYA 1 1 1 1 MOZAMBIQUE 1 1 1 1 NIGERIA 7 10 10 9 SOUTH AFRICA 0 0 0 0 TUNISIA 1 1 0 0 Source: Baker Hughes

Subsea solutions: A new company is formed in the US and an independent operator boosts its fleet

IN THE US and Scotland, two grouping of diverse services companies have been busy delivers enhanced savings to the expanding their subsea solutions customer and enables efficient for the oil and gas industry across cradle-to-grave control of the world. projects in the current tight C-Innovation (C-I), a market,” said David Sheetz, Houston-based affiliate of Edison manager of C-I’s subsea division. Chouest Offshore (ECO), has Meanwhile, in Aberdeen, formed a subsea projects group Rovop, an independent operator to offer its clients fully integrated of underwater remotely solutions for their underwater operated vehicles (ROVs) has operations. announced it will expand its It is a turnkey subsea projects fleet by 50 per cent to meet group which allows all solutions ongoing customer demand to be sourced from within the following a funding boost ECO family of service providers of £56mn. worldwide. Blue Water Energy and BGF C-I’s in-house project has committed to the funding management team provides which underpins Rovop’s plans engineering support, procedure for growth and further job development and review, project creation. This funding means execution and final reporting that Rovop can increase its fleet requirements. With access to to 24 ROVs with the new assets ECO’s inventory of mission- Image Credit: C-Innovation being acquired from Tideater in specific vessels, it provides C-I has formed a subsea project group to provide integrated solutions for underwater Houston. flexibility in matching and operators. “This funding package allows scheduling of assets. an immediate step change for The group of companies spectrum of support to subsea “We know how to get our business, and secures the includes port facilities, a logistics construction projects, as well as components to the sea floor and funding required to execute our company, tank cleaning services, drilling, intervention, lay them out logically and growth plans over the coming shipyards and dry-dock. C-I’s maintenance and heavy lift efficiently to achieve the greatest years,” said Steven Gray, CEO ROV capabilities provide a broad assignments. result for our customers. This of Rovop. S08 ORA 1 2018 Innovations_ORA Master Template - 2016 New 20/02/2018 10:47 Page 33

ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM INNOVATIONS 33

Ultrasonic flow transducers launched for the LNG sector

A NEW HIGH-temperature wide range of pipe diameters transducer to measure gas flow from 6 inches to 72 inches. The processes at up to temperatures new range of transducers and of 250°C, and a cryogenic software are compatible with transducer that is functional Fluenta’s FGM160, and can be down to -200°C has been fitted to existing installations. launched by Fluenta. It has In multiple jurisdictions significant applications for the around the globe, government liquified natural gas (LNG) sector regulations are becoming and is aimed at operators increasingly strict for monitoring working in challenging flare gas emissions, companies environments in particular. are under pressure to accurately The transducers benefit from measure and record gas flow. new software and signal “These new transducers processing. This allows these greatly increase the capacity of transducers to function in Fluenta to meet the needs of our Image Credit: A.Davey/Flickr processes containing up to 100 existing customers, and to move per cent methane or 100 per cent The transducer will work in a range of environments, such as LNG operations. into new markets such as carbon dioxide. These gas mixes chemical processing and liquified historically have presented flow meters. According to transducers do not interrupt gas natural gas,” said Sigurd Aase, challenges to standard ultrasonic Fluenta, the non-intrusive flow and can be used across a CEO of Fluenta.

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34 INTERVIEW ISSUE 1 2018 • WWW.OILREVIEWAFRICA.COM

EROTON: MAKING SOLID PROGRESS IN THE NIGER DELTA

Ebiaho Emafo, managing director and CEO of Eroton, talks to Oil Review Africa about working in challenging environments, protecting employees and the environment, and future plans for diversification.

How do you keep your Niger Delta communities and environment. Continual assets secure? improvement is key to our strategy and to date The Niger Delta is a challenging environment we have not recorded any significant HSE- to operate in given the issues of militancy, related incidents. We maintain this record by piracy and illegal crude oil bunkering. Eroton employing a top-to-bottom and bottoms-up employs a holistic approach to securing its approach meaning that each and every assets, by ensuring that all the stakeholders in individual keeps health, safety and our area of operation are included in our environment at the forefront of all their operations strategy, particularly in respect to considerations. development and security. We work closely to develop our host communities in addition to Is Eroton's future is leaning towards engaging them for surveillance of our oil or gas? unmanned facilities that fall within their Oil would remain our primary focus as there community boundaries. We have achieved, are still significant reserves subsurface that are measured success in that regard, as the yet to be developed. That said, Eroton communities now have a vested interest in appreciates and values the upsides associated ensuring that our assets are not sabotaged. with the development and monetisation of our Our production growth is seen as a benefit for equally significant gas reserves. Eroton the community as the growth of production supplies circa 55mmsfd to customers via translates to increased opportunities in the pipeline with the potential to supply upwards area of empowerment by means of contracting Image Credit: Eroton of 200mmscf. Gas is an important commodity and the possibility of increased development Ebiaho Emafo is optimistic about Eroton’s future. not only for Eroton but the nation as a whole projects. Additionally, we employ government so we have been working closely with the security agencies to provide security for our facilities in the acreage due to the security government agencies to actualise the manned facilities, and marine movements challenges, thus we acquired an asset with aspirations of the Nigerian Gas Master Plan. when required. significant integrity issues. We have grown our Eroton plans to aggressively grow its gas production to approximately 50 mscf per production base by employing cost-effective Can you update us on the day, surpassing our Domestic Gas Obligation. solutions such as gas lift, infield drilling and OML 18 acreage? We work closely with our gas off-taker, undertaking seismic reprocessing to identify Eroton has made great strides in the ramp up providing gas supplies which were epileptic new prospects. We believe with this approach of production since we started operating the prior to our takeover. This continuity has we would be able to attain production rates asset. We commenced operations in 2015 with enabled them to produce fertiliser, a catalyst upwards of 100,000 bopd and gas sales of circa a net production of circa 10,000 bopd and for the growth of agriculture in Nigeria 200mmscfd in the short to medium term have been able to grow our daily production outlook. Diversification is key with plans rate to circa 50,000 bopd. At peak production, Why is HSE important? ongoing to venture into the mid-stream sector we attained a 65,000 bobd. This feat was made HSE is a critical element in the oil and gas by investing in areas such as LPG and power possible by field re-entries, asset integrity industry where the slightest non-adherence to production. Eroton plans to be the number one restoration projects and by the efficient use of set guidelines, procedures and policies could indigenous operator in Nigerian upstream and rigless activities such as wellhead result in significant damages to life and intends to challenge IOCs in terms of overall refurbishments, swabbing operations, fishing property. Our HSE plan is geared towards production. We are uniquely placed to do so operations and flowline replacements. The achieving sustainable operations that would thanks to our competent team and strong previous operator had all but abandoned the not negatively impact our staff, host commitment to corporate governance.  S08 ORA 1 2018 Innovations_ORA Master Template - 2016 New 19/02/2018 14:54 Page 35 S08 ORA 1 2018 Innovations_ORA Master Template - 2016 New 19/02/2018 14:54 Page 36