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Europe €10, Ghana CD18000, Kenya Ksh200, Nigeria N1200, South Africa R25, UK £7, USA $12 WWW.OILREVIEWAFRICA.COM OIL REVIEW AFRICA - VOLUME 11 - ISSUE 4 2016 2016 4 11 ISSUE - VOLUME - AFRICA REVIEW OIL

VOLUME 11 | ISSUE 4 2016

The UAE and Africa: Closer ties? www.oilreviewafrica.com The impact of Brexit and the African Union passport Senegal’s bright hydrocarbons future

Saving money through maintenance Dougie Youngson of finnCap talks about Local content focus in Nigeria opportunities in Tanzania (p50) S01ORA42016Contents,Calendar_ORAMasterTemplate-2016New11/08/201616:28Page2 S01ORA42016Contents,Calendar_ORAMasterTemplate-2016New11/08/201617:27Page3

Europe €10, Ghana CD18000, Kenya Ksh200, Nigeria N1200, South Africa R25, UK £7, USA $12 WWW.OILREVIEWAFRICA.COM

O ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM 3

VOLUME 11 | ISSUE 4 2016 EDITOR’S NOTE

The United Arab Emirates has a long history of trade with Africa and, along with many of its neighbours in the Arabian Gulf, its leaders are keen to diversify the economy. Could investment opportunities in the African oil and gas industry prove to be mutually beneficial? Turn to our cover story on page 23 to find out more about the opportunities that may lie ahead. The UAE and Africa: Senegal and Egypt are in the spotlight in this issue. Senegal stands to experience massive Closer ties? economic transformation thanks to massive hydrocarbon discoveries (page 16). Egypt, The impact of Brexit and the African Union passport meanwhile, is looking to move closer to gas self-sufficiency with BP and Eni joining forces to Senegal’s bright hydrocarbons future Saving money through maintenance Dougie Youngson of finnCap talks about exploit a significant offshore discovery (page 20). Local content focus in Nigeria opportunities in Tanzania (p50) There is also a focus on cost-effective operations with features on how to plan for efficient shutdown turnarounds (page 28), the importance of regular maintenance to save money in the UAE interest in African oil and gas investment long term (page 32) and gas leak detection (page 36). is analysed on page 23. Georgia Lewis Managing Editor

CONTENTS

NEWS AND EVENTS Egypt Managing Editor: Georgia Lewis 20 BP and Eni’s latest major project.  [email protected] Calendar of oil and gas events Editorial and Design team: Bob Adams, Prashanth AP, Hiriyti 4 Events from around the world. Nigeria Bairu, Sejal Bhat, Miriam Brtkova, Andrew Croft, Ranganath GS, Rhonita Patnaik, Zsa Tebbit, Nicky Valsamakis, Louise Waters and 35 Marine Platforms’ local content focus. Ben Watts Africa-wide news Publisher: Nick Fordham 6 News from the oil and gas markets. Advertising Sales Director: Pallavi Pandey TECHNOLOGY AND EFFICIENCY Magazine Sales Manager: Chidinma Anah IEA market report Tel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076 26 Medium-term forecasts for Africa. Planning for shutdown E-mail: [email protected] 28 turnarounds International Representatives Event previews Achieving better efficiency. India Tanmay Mishra 43 Special events coming up in Abu Nigeria Bola Olowo Dhabi and Maputo. Maintenance for money-saving UAE Graham Brown 32 Avoiding maintenance is a false USA Michael Tomashefsky Rig count economy. Head Office: 47 A tally of the rigs operating in Africa. Alain Charles Publishing Ltd Gas leak detection University House, 11-13 Lower Grosvenor Place, London SW1W 0EX 36 Safe, efficient detection for operators. United Kingdom Tel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076 ANALYSIS Onshore operations Middle East Regional Office: Brexit and the AU passport 39 Fluor shares the many advantages of Alain Charles Middle East FZ-LLC Office 215, Loft 2A, P.O. Box 502207, Dubai Media City, UAE 14 The impact of Brexit and a closer working onshore. Tel: +971 4 448 9260 Fax: +971 4 448 9261 African Union on oil and gas. Production: Priyanka A, Kavya J, Nelly Mendes and Sophia Pinto Network cameras E-mail: [email protected] 40 Improving safety and security. Subscriptions: [email protected] COVER STORY Chairman: Derek Fordham Level and flow wellhead Printed by: Buxton Press UAE investment in African oil 41 instrumentation © Oil Review Africa ISSN: 0-9552126-1-8 23 and gas projects Improving the well production stream. Will UAE money shift towards Africa? INTERVIEW COUNTRY FOCUS Dougie Youngson, finnCap Senegal 50 Talking about Tanzania’s Serving the world of business 16 Promising discoveries for a big future. transformation. S01ORA42016Contents,Calendar_ORAMasterTemplate-2016New11/08/201615:18Page4

4 EVENTS CALENDAR ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM Executives Calendar 2016

AUGUST 23-26 OTL Africa Downstream Lagos 14-18 EnerCom’s The Oil & Gas Conference 2016 www.otlafrica.com Denver www.theoilandgasconference.com 26-27 Bottom of the Barrel Technology Conference (BBTC) Middle East & Africa SEPTEMBER Manama www.bbtc-mena.biz 4-5 2nd Middle East Health & Safety Forum Dubai 31- 1 Nov 23rd Africa Oil Week www.hse-forum.com Cape Town www.africa-oilweek.com 6-8 NACE Egypt Corrosion Conference Cairo NOVEMBER www.egyptcorrosion.nace.org 7-10 Abu Dhabi International Petroleum Exhibition OCTOBER & Conference (ADIPEC) Abu Dhabi 4-6 SPE African Health, Safety, Security, www.adipec.com Environment and Social Responsibility Conference & Exhibition 8-10 Deepwater Operations Accra Galveston, Texas www.spe.org/events www.deepwateroperations.com

9-13 23rd World Energy Conference 15-17 East Africa Oil & Gas Summit & Exhibition Istanbul Nairobi www.wec2016istanbul.org.tr www.eaogs.com 17-19 The 8th Saudi Arabian Oil & Gas Exhibition DECEMBER Dammam www.saoge.org 5-7 Africa Energy and Technology Conference Nairobi 18-19 The 37th Oil & Money Conference www.spe.org/events London www.oilandmoney.com

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.

Nigerian conference to tackle big issues surrounding content

THE SIXTH PRACTICAL conference will seek to re- The role of indigenous to discuss how oversubscription Nigerian Content Forum (PNC) energise the drive to ensure these producers in growing reserves of bids to tenders by non- aims to deal with the big standards are upheld throughout and boosting production will also qualifying companies can be questions raised by major players the entire industry. be discussed at the conference. identified and eliminated. in the country’s hydrocarbons The Nigerian Content The contracting process is Looking towards the bigger industry in relation to meeting Development and Monitoring frequently onerous for operators. picture, the conference will also regulated content requirements. Board (NCDMB) will be asked To this end, the NCDMB, as well feature government speakers who Taking place for the first time how it plans to revise the as National Petroleum will address the delegates on how in Abuja from 22-24 November Nigerian Content Development Investment Management Services to strengthen links between the 2016, the event has a number of Fund to better cater for the and IOCs, will explain their plans oil and gas industry and issues on the agenda. Local financing needs of local to reduce long contracting cycles. infrastructure development. content requirements are not operators and service companies Representatives from the always met by operators and the along the value chain. government will be called upon www.cwcpnc.com S02ORA42016NewsA,B_ORAMasterTemplate-2016New11/08/201616:31Page5 S02ORA42016NewsA,B_ORAMasterTemplate-2016New11/08/201611:28Page6

6 NEWS ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

Economic diversification urged to achieve Drilling to stability for Africa’s big oil nations recommence

AFRICA’S LARGER, OILK in South DRIVEN, commodity-exporting countries have sharply felt the Lokichar effects of currency and liquidity crises. Speakers at the Africa DRILLING WILL Property Investment Summit, RECOMMENCE in Kenya’s held in Johannesburg in July, told South Lokichar oil basin in the delegates that in these countries, fourth quarter of 2016. Blocks there has been a shift towards 10BB and 13T, operated by economic diversification and that Tullow Oil, Maersk Oil and the East African region is Africa Oil in a joint venture, providing more stability than already have four wells and there

other parts of the continent. Image Credit: Africa Property Investment Summit is potential to expand this by a Foreign direct investment The Africa Property Investment Summit focused on economic diversification. further four wells. (FDI), particularly in oil and gas The first two wells will be in projects, will remain essential for Africa, achieving a total of 26.3 cent. However, Nigeria in the Etete and Erut prospects in ongoing economic growth and per cent of total project. The particular has been affected the northern part of the basin. stability across Africa. souther part of the continent heavily by the oil price decline. Other potential prospects include These views were also remains the largest FDI region, While oil and gas remain further appraisal of the Ngamia reflected in EY’s 2016 Africa although 2015 projects were important, in 2015, consumer and Amosing fields. The plan by attractiveness programme down 11.6 per cent from 2014 products, retail, financial the joint venture is to target un- entitled “Staying the Course”. In levels. In West Africa, FDI was services, technology, media and drilled flanks with the aim of 2015, East Africa recorded its up by 16.2 per cent and in North telecommunications accounted extending these discoveries. highest share of FDI across Africa, FDI increased by 8.5 per for 44.7 per cent of FDI projects. Additionally, the operators are planning an extensive water injection test programme in Q4 to collect data to optimise field Tullow announces half-year profits and solid development plans. A three-year extension on the progress in Ghana and Kenya two blocks has been granted to the joint venture, which expires TULLOW OIL HAS announced Uganda all played leading roles When it reaches facility capacity in September 2020. an after-tax profit of US$30mn in Tullow’s ongoing success in at the end of 2016, TEN will The Kenyan government is for the first half of 2016 and a Africa, a company statement increase Tullow’s group net assisting with infrastructure pre-tax operating cash flow of announced at the end of July. production by around 60 per cent. development, announcing its US$256mn. With first oil expected in Additionally, the Jubilee field’s intention to run a crude oil The TEN project in Ghana August 2016, the TEN project is new operating procedures are pipeline from South Lokichar to and operations in Kenya and on schedule and on budget. working well, according to a the port of Lamu, on the company statement, with gross northern part of the Kenyan production in the second half coastline. A memorandum of of 2016 expected to average understanding in regard to this 85,000 bopd. project has been signed between East African upstream and the government and the joint pipeline projects in Kenya (see venture partners. A pipeline joint news story, right) and Uganda development agreement is are moving towards FEED. expected to be signed in the third Other parts of Africa are also quarter of 2016. looking promising for Tullow. As well as the pipeline, an The statement announces that a early oil pilot scheme for road new licence in Zambia was and rail oil transport is being signed by Tullow in the first half assessed. FEED studies, initiated of 2016, and pre-drilling and by the joint venture, on technical,

Image Credit: Ben Sutherland/Flickr scoping activities are under environmental and social issues Offshore oil development in Ghana has been a boon for the Tullow Oil bottom line. evaluation in Namibia. are due to start in early 2017. S02ORA42016NewsA,B_ORAMasterTemplate-2016New11/08/201611:28Page7

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM 7 NEWS VISITORS’ 1ST CHOICE

Angola and the US discuss oil and gas in top-level dialogue

A DELEGATION FROM Angola visited the US Department of State’s Energy Resource Bureau in early August for the third installment of the US-Angola Strategic Energy Dialogue, with a focus on the African MEET THE COMPLETE VALVE country’s petroleum and power sectors. Jose Maria Botelho de Vasconcelos, minister of petroleum, and Joao SPECTRUM Baptista Borges, minister if energy and water, led the Angolan delegation. The discussion, held in Washington DC, was co-hosted by the US Department of State’s special envoy and coordinator for international affairs, Amos J. Hochstein, and the US Department of Energy’s assistant secretary for fossil energy, Christopher Smith. Oil and gas sector security and the environmental impacts of oil and gas installations were on the agenda. It is a largely positive time for the Angolan oil sector. The 2016 OPEC Annual Statistical Bulletin reported that the largest additions to the world’s proven oil reserves have come from Angola, as well as Venezuela and Iran. According to the report, in 2015 Angola’s proven crude oil reserves were at 9,524mn barrels. Crude oil production for Angola in 2015 was 1,767,000 bpd. Additionally, natural gas reserves were at 308.1 bcm and natural gas marketed production was 772.5 mcm. However, the OPEC report also revealed that the value of Angola’s petroleum exports has been steadily declining since 2011, when exports were valued at US$51.409mn. In 2015, the value had dropped to US$21.751mn. Meanwhile, refinery capacity for Angola has remained constant since 2011 at 65,000 bpd at the Fina-Pertroleo de-Angola facility in Luanda.

10th Biennial Valve World Conference & Exhibition The experts meet in Düsseldorf at the most important inter- national trade fair for valves and industrial valves. You can JDWKHU VSHFLÀF LQIRUPDWLRQ KHUH DERXW LQQRYDWLRQV QHZ products and processes especially for your area of applica- tion at VALVE WORLD EXPO and the VALVE WORLD CONFE- RENCE in Düsseldorf, from 29 November to 1 December 2016.

Turn it on, now! Image Credit: Department USof State

The UIS Department of State’s Energy Resource Bureau hosted an Angolan delegation in August.

The last strategic energy dialogue between the two countries was held in August 2011. At this session, the US and Angolan delegations 6SRQVRUHGE\ 6XSSRUWHGE\ reviewed progress made in the bilaterial relationship in the energy sector over the past five years. Participants discussed the need for www.valveworldexpo.com regulatory changes in the energy sector as well as the need to create a favourable business climate to attract more private investment to Angola. Messe Düsseldorf GmbH The dialogue concluded with both parties reaffirming their joint P.O. Box 10 10 06 commitment to continued cooperation and mutual interest in the 40001 Düsseldorf _ Germany T e l . + 4 9 ( 0 ) 2 1 1 /4 5 6 0 - 0 1 petroleum and power sectors. F a x + 4 9 ( 0 ) 2 1 1 /4 5 6 0 - 6 6 8 www.messe-duesseldorf.de

09:49 S02ORA42016NewsA,B_ORAMasterTemplate-2016New11/08/201611:28Page8

8 NEWS ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

Large-scale gas processing plant for Global valve Tanzania’s Lindi Region and Mtwara makers to

PROFESSOR SOSPETER descend on MUHONGO. Tanzania’s minister for energy and minerals, has Düsseldorf announced the government will invest at least US$30bn INTERNATIONAL EXPERTS towards the construction of a gas FROM the valves and fittings processing plant in the industry will descend on Lindi Region, located in the Düsseldorf at the end of country’s south. November. Valve World Expo Professor Muhongo urged Düssseldorf is the 10th biennial calm as the project is “likely to conference and exhibition for take many years” to be leaders in the industry. The event completed. When he made the will run from 29 November until

announcement, he said the Image Credit: Nazir/Flickr Muhummad Tariq 1 December, 2016. project is likely to take 40 The coastal city of Mtwara is expected to benefit from gas sector development. For the oil and gas industry, months, and that it will require valves and fittings are important significant expertise and of gas pipelines from the sea to will become Tanzania’s for ensuring safety. supervision as well as funding. the new plant. “economic hub”. In particular, the trend As well as the slated gas “This is not an easy job, it will “All investors are eyeing at towards stainless steel in valve processing plant, Professor take some years,” said Professor Lindi and Mtwara because of gas manufacturing is continuing Muhongo also announced the Muhongo. “We are suposed to and other resources,” said unabated because of their planned development of bring the gas from the sea, it is Professor Muhongo. He said corrosion resistance and hygiene. supporting gas infrastructure. He between 100 and 200km.” Lindi residents should be ready Running parallel to Valve said the Tanzanian government He said that the Lindi Region for significant investment in their World Expo will be Pump will have to build around 200 km and the nearby city of Mtwara area in the coming years. Summit 2016. This event will give manufacturers, distributors, and users of pumps, compressors, and seals the opportunity to Metocean data acquisition in Ghana for present their products to an international audience as well as Hess Corporation completed by Fugro share knowledge.

FUGRO HAS COMPLETED a Tano/Cape Three Points block in Fugro’s Wavescan buoy was 33-month period of metocean depths of around 2,400 metres. used to measure waves, currents, data acquisition for Hess Ghana The information gleaned from and meteorological and seawater Exploration. Measurements were this project will be used by Hess parameters. Real-time data was taken in three locations off the in support of its ongoing displayed on a webpage designed Ghanaian coast in the Deepwater operations in Ghana. especially for the project, which Hess could access. Valves are an integral part of oil and “The final report will include gas operations and efficiency is vital. data from each of the three stations over the complete For maximum efficiency in duration of the project and will the oil and gas industry, pumps form part of the wider FEED need to be reliable, cost-effective study being carried out by Hess,” and conserve energy. Additionally, said Jonathan Ainley, commercial issues with corrosion, abrasion, manager at Fugro GEOS. and aggressive media among the “The information will be utilised major challenges pump for a number of engineering manufacturers face. Oil and gas activities including riser and industry clients in particular are facilities design, fatigure very demanding because of the calculations, as well as assisting changing operating conditions,

Image Credit: Fugro decisions for physical high temperatures and pressures Fugro used vessels from its own fleer and the spot market for the nine site visits. construction at the field.” which reduce their lifespan. S03ORA42016NewsC,NewsD_ORAMasterTemplate-2016New11/08/201611:30Page9

with espo c nt us s what we can do for youy at sabinmetal.com PProfitable fit bl hhydrocracki d kiiing/hydrocarbon /h d bn processing starts and ends with SSabin Metal world dwide S03ORA42016NewsC,NewsD_ORAMasterTemplate-2016New11/08/201611:30Page10

10 NEWS ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

Woodside buys ConocoPhillips’ Senegal assets IMF predicts

AUSTRALIAN ENERGY challenging COMPANY, Woodside Petroleum According to the agreement, Woodside will pay a further US$80mn as has entered into a $US430mn completion adjustment for the deal. times for purchase and sale agreement (PSA) to buy ConocoPhillips Equatorial deepwater stakes in Senegal, including one of the world’s most Guinea promising recent oil finds. Under the purchase and sale A MISSION FROM the agreement, Woodside will International Monetary Fund acquire 100 per cent of the shares (IMF) that visited Malabo to

in ConocoPhillips Senegal BV, Image Credit: Cpkmistic/Fotolia conduct the 2016 Article IV which holds a 35 per cent “We are taking advantage of operator is Britain’s Cairn consultation discussions has working interest in a production our balance sheet to acquire a Energy Plc, which owns 40 per warned that Equatorial Guinea’s sharing contract with the Senegal world-class asset that fits well cent and is looking to sell down short term economic outlook government covering three with our capabilities, offers its stake, the Reuters reported. remains depressed following a blocks, Rufisque Offshore, significant future upside in Australian FAR Ltd owns 15 per dip in global oil prices. Sangomar Offshore and exploration and line-of-sight to cent of the fields and Senegal’s The mission found that the oil Sangomar Deep Offshore. near term oil production,” state-owned Petrosen holds 10 price shock since 2014 is having a The production sharing Woodside CEO Peter Coleman per cent. major impact on Equatorial contract includes the 560 mmbbl said in a statement. Completion of the PSA is Guinea. Despite efforts to foster SNE deep water oil discovery, The agreement will give subject to fulfilment of economic diversification in recent one of the largest global deep Woodside the option to take customary conditions, including years, the economy remains water oil discoveries since over as operator of the Government of Senegal’s heavily resource dependent. GDP 2014 and the FAN deep water development and production of approval and pre-emption and is declined by 7.4 per cent during oil discovery. the oil fields. The current targeting close by year-end 2016. 2015, as lower hydrocarbons prices induced oil companies to reduce production. The end-of-mission press Helium production in Tanzania to release said that non-hydrocarbon activity had slumped by 5.2 per commence in five years cent, due to sharp slowdown in public investment and private COMMERCIAL PRODUCTION “If all goes according to plan, Rukwa reservoir that could sector construction. FROM the recently discovered we could be in production by contain 54 bcf of helium could The report pointed out that vast helium field in Lake Rukwa 2020 or 2021,” Helium One chief ultimately generate “hundreds of Equatorial Guinea’s near-term may start in five years, the Thomas Abraham-James said. millions of dollars” in revenues, outlook is very challenging, given CEO of the Norway-based He added that next year Abraham-James pointed out. that energy prices remain company spearheading the additional testing will be carried While the global market for depressed, and hydrocarbon project has stated. out as part of a feasibility Helium is small, the worldwide production will continue to analysis focused on the Lake supply of the gas is not decline. In 2016, weak oil Lake Rukwa is estimated Rukwa find. abundant, with the United States revenues and limited buffers will to contain around 54 bcf of "With all these projects, we controlling the largest-single require further cuts to public helium reserves. need to drill and confirm that helium reserve of 24.2 bcf. The investment. As such, overall the gas exists beyond any Tanzania discovery could prove economic activity is expected to doubt," he added. more than twice that size, which decline 9.7 per cent. Helium One, the startup firm would be sufficient to meet In view of the challenge licensed by the Tanzanian global demand for nearly seven confronting Equatorial Guinea, government to explore for years. Independent analysts have the over-arching message of the helium at three sites in the estimated the total resources to consultation was to accelerate an country, is also looking to raise be worth US$3.5bn. economic reset driven by the non- US$40mn in investments before The company has explored resource economy. The mission it begins extracting the gas, the for the gas in other East Africa stressed the need to step up the CEO said. countries along the Rift Valley pace of fiscal consolidation to British and Norwegian but has not met with positive avoid a disorderly adjustment and researchers’ discovery of the results, Abraham-James added. macroeconomic instability. Image Credit: terex/Fotolia S03ORA42016NewsC,NewsD_ORAMasterTemplate-2016New11/08/201611:30Page11

Throughout 2016, Fugro is showcasing speci c examples of how its innovative solutions help customers around the world.

If you want to know how #AskFugro

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12 NEWS ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

Marathon Oil begins gas production offshore Private equity Equitorial Guinea companies

MARATHON OIL HAS gear up for produced first gas through its new Alba B3 compression O&G spend platform off Equatorial Guinea. Production from the B3 GLOBAL PRIVATE EQUITY platform allows Marathon Oil to (PE) firms plan to acquire stakes convert about 130mn boe of in the oil and gas sectors by 2017, proved undeveloped reserves, a new survey by Ernst & Young more than doubling the company’s (EY) global survey has revealed. remaining proved developed According to the survey, the reserve base in the country, firms plan to deploy capital into “The Alba B3 compression The Alba B3 platform is connected by bridge to the existing Alba B2 the global oil and gas investment platform, where gas and condensate are currently sent to an onshore gas project will allow us to maintain plant at Punta Europa for processing into various products, including with 25 per cent planning plateau production for the next propane and butane. acquisitions before 2016-end, two years, mitigating base Image Credit: Bryan Burke/Flickr while the number would rise to decline, while extending the Alba collaboration with the operations fabricated both the platform flare 43 per cent during half of 2016. Field’s life by up to eight years,” team in Equatorial Guinea. and bridge structures. Claire Lawrie, EY Africa said Mitch Little, vice-president– Execution of the Alba B3 Marathon Oil’s wholly-owned Energy Lead, said that with conventional. compression project involved subsidiary Marathon E.G. US$971.4bn of PE funds from He added, “I want to engineering and construction in Production holds 65 per cent June 2016 yet to be deployed, PE highlight that the platform was four countries with Heerema working interest in the Alba firms are now preparing to completed on time and within Fabrication Group (HFG) Field and is the operator, while increase investment into the budget, reflecting strong project serving as the general contractor. Noble Energy owns the sector, adding that PE firms are management and a close A local construction firm remaining 35 per cent stake. capitalising on opportunities in the oil and gas. She further noted that there was anticipation that deal-making will grow in Africa, ExxonMobil and Qatar Petroleum to team up with 80 per cent of survey respondents believing activity for Mozambican gas assets will increase. “Investors are being drawn by EXXONMOBIL AND QATAR Citing sources close to the Anadarko Petroleum and Italy’s the promise of new infrastructure Petroleum are in talks for deal, the report said that the two ENI, respectively. initiatives across the continent, possible acquisitions of energy oil groups are examining the Last May, ENI CEO Claudio opening up new trade routes and assets in Mozambique, where possible purchase of stakes in the Descalzi revealed that he was in enhancing regional integration, huge natural gas deposits have Area 1 and Area 4 Blocks of the talks to sell part of its stake in the such as rail and port been discovered, Bloomberg Rovuma Basin in northern Area 4 Block and added he developments in Mozambique reported. Mozambique, operated by USA’s expected a final investment and Angola, as well as stronger decision by the end of the year. regulatory systems in countries Mozambique holds some of the largest natural gas discoveries, located off In October 2015, the such as Kenya and Ethiopia. its northern coast. ExxonMobil group obtained “Access to financing is the three licenses for oil exploration biggest challenge facing the O&G in offshore blocks south of the firms. While many expected PE two blocks. The company also funds to swoop in during lower has a working interest in Statoil oil price over the last 18 months, ASA’s Block 2 in Tanzania, north investment has fallen short,” of the Rovuma Basin. Lawrie revealed. ExxonMobil’s ties with Qatar, She, however, said that despite the world’s largest exporter of the tide turning, great consensus LNG, include the RasGas over the oil price future and partnership, which produces and more favourable asset-valuations liquefies gas from Qatar’s North are improving the conditions for field, and the Golden Pass LNG private equity firms and creative

Image Credit: QR9iudjz0/sxc.hu terminal in Texas. capital structures are on the rise. S04ORA42016Brexit&AfricanOil_ORAMasterTemplate-2016New11/08/201611:31Page13 S04ORA42016Brexit&AfricanOil_ORAMasterTemplate-2016New11/08/201611:31Page14

14 ANALYSIS ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

THE STATE OF TWO UNIONS

There are mixed views on the impact of Britain leaving the European Union after the June referendum and the new African Union passport. Amalia Ilgner sought the views of industry experts as one union loses a member and another becomes ever-closer.

HAT BRITAIN’S VOTE to leave the European Union will W mean for the African oil and gas industry still remains speculative. Meanwhile, the African Union passport could affect the hydrocarbons sector. Yann Alix, a partner for global law firm Ashurst, said that while currencies and stocks tumbled in a number of African jurisdictions immediately after the referendum, “Brexit is unlikely to have a significant impact on the African oil and gas industry”.

Stuart Carter, partner and Image Credit: GovernmentZA/Flickr head of oil and gas at European Dr Nkosazana Dlamini Zuma opens this year’s African Union summit, where the AU passport was officially launched. law firm Fieldfisher says that in the longer term some effects may partners “more attractive”, says to distribute them to all African David Mpanga, a Uganda- be felt, “The UK could be subject Andrew Spears, CEO of citizens by 2018. Spears believes based partner at Bowman to some tariffs on oil and gas Petroplan recruitment. this step towards “pan- Gilfillan, is skeptical about the from the EU, so may be more The African Union (AU) Africanism” will encourage the passport project. “While the idea likely to import petroleum from passport will grant free mobility of talent and encourage is a good one, implementation Africa”. However, Carter stresses movement to citizens of all 54 expansion into new territories. across the 50-plus states will be that this is still highly unlikely. member states. Launched in July Alix says the passport “sends fraught with practical difficulties.” A possible second Scottish at the AU summit in Rwanda, the a positive message to investors” Mpanga points to the “slow independence referendum might passports will be initially issued and will be helpful for cross- and sporadic” lifting of travel have an impact. Carter believes to senior officials, with the aim border projects. But the high barriers between states and that projects could be delayed in number of expatriates employed functional regional blocs such as the Scottish area of UKCS in the sector will make the the East Africa Community and (United Kingdom Continental The UK could impact “limited”, he says. the Economic Community of Shelf) and Africa could be subject to some Additionally, Carter warns it West African States. potentially benefit from a tariffs on EU oil could “potentially impoverish” He told Oil Review Africa, slowdown in the UKCS as teams countries that cannot offer “I do not expect that the far become available. and gas so may be competitive financial rewards to less cohesive AU will be able to Leaving the EU has more likely to its educated workforce, causing pull off a passport project in a implications of fewer trade many to move away. He wants to way that has a measurably restrictions for UK business import petroleum see mutual support across Africa positive effect on the oil and gas from the EU, and this could from Africa” to ensure that all nations prosper sector in the short or even make working with African from the increased mobility. medium term”.  S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page15 S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page16

16 SENEGAL ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

PROMISING TIMES AHEAD WITH DISCOVERIES IN SENEGAL

Impressive discoveries in Senegal could signal the next African oil and gas boom. Oil Review Africa editor Georgia Lewis reports on the next stages – and the challenges – for the emerging Senegalese hydrocarbons industry.

INCE THE 1950S, more than 140 offshore wells have been drilled off the Scoast of Senegal but it was only in October 2014 that a real breakthrough was made when Cairn Energy found the first of two significant deposits about 100km offshore. In August 2015, Cairn announced that evaluation, multi-well exploration and appraisal would commence and since then, promising results have been reported by the companies which have stakes in Senegal, including national oil company Petrosen, FAR and Kosmos Energy. In July this year, Woodside bought out the 35 per cent stake that ConocoPhillips held in partnership with Cairn (40 per

cent), FAR (15 per cent) and Image Credit: Cairn Energy Petrosen (10 per cent) over three The Athena Rig is an important part of the offshore operations that are well underway off the coast of Senegal. blocks covering 7,490 km2. Miles Warner, general manager and operation of subsea production storage and planned total depth of 2,944m of Cairn Energy, said the infrastructure and floating offloading vessels,” said Mr below sea level. Woodside deal will not have a Woodside. “We are taking Cairn’s analysis of the data massive impact on their advantage of our balance sheet to from the appraisal confirmed the Senegalese operations. “It is just a Senegal is a acquire a word class asset that fits extension of reservoirs in the change of partner,” he said. strong democracy, well with our capabilities, offers eastern extent of the SNE fields Woodside CEO Peter signifiant future upside in and the existence of oil-bearing Coleman said the acquisition there is a legal exploration and line-of-sight to sands of similar quality to those “aligned with the company’s and jury system, near-term oil production.” encountered as being gas-bearing growth strategy by providing a there is confidence In May 2016, Cairn elsewhere in the field. Initial significant position in an under- announced promising results indications confirm 32° API oil explored and highly prospective in our country and from the appraisal of the SNE-4 quality as seen across the field. emerging oil province”. people are willing well, located 85km off the coast At the time of the “Woodside will bring to the of Senegal in the Sangomar announcement, Cairn Energy joint venture expertise in to invest” Offshore block. It is located at a CEO Simon Thomson was deepwater drilling, development depth of 942m and reached the upbeat about the appraisal’s S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page17

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM SENEGAL 17

findings: “Operations in Senegal have been safely conducted and are ahead of schedule and substantially under budget.” “We have now drilled four successful appraisal wells in Senegal and we are delighted with the results to date of the multi-well evaluation programme, which has confirmed the scale and potential of this world class asset,” said Mr Thomson. Additionally, in May this year, Kosmos announced a significant offshore gas discovery around 65km north-west of Dakar at a depth of 1,800m, drilled to a depth of 4,485m. While the discoveries are promising, there

are also challenges to overcome Image Credit: Cairn Energy with some of the gas deposits crossing the border to the north with Mauritania as well as technical issues surrounding the Balancing act: if managed properly, the development of Senegalese hydrocarbons will provide long-term benefits. sometimes-complex geology of some of the finds. two independent tests with oil legal and technical assistance for restrictive” as Senegal is “full of Andrew G. Inglis, chairman potential in northern Mauritania Senegal as they develop the oil capable local people”. and CEO of Kosmos Energy, and in the outboard of and gas industry. The timeline for moving echoed the positive sentiments of Mauritania and Senegal for The gas discoveries that ahead on making Senegalese oil Cairn Energy’s Mr Thomson, drilling in 2017.” straddle the Senegal-Mauritania viable is for development and saying the find has “opened a Oil Review Africa attended a border present additional study to take place between now super-major scale basin” off the briefing hosted by the Energy challenges but Mr Sall told the and 2017, commerciality to be coastlines of Senegal and Industries Council (EIC) that briefing that an agreement has declared in 2018 and the Mauritania with “world class coincided with the Woodside been signed between the two government to receive the resource potential”. announcement. Thierno countries and Kosmos. exploitation plan, and 2021-2023 “Given the scale and quality Alassane Sall, Senegal’s minister Mr Warner reiterated Mr is the target for first oil. An of the gas resource discovered for energy and development Sall’s positive comments about extensive evaluation plan is along the inboard trend, our of renewable energy, spoke the stable political and underway to examine the full focus is to move this resource about the benefits of investing investment climate of Senegal. block potential. The appraisal through to development,” said in the country. “It is a very straightforward programme, including seismic Mr Inglis. “Our forward “Senegal is a democracy, a place to work, people are willing surveys, is looking at the exploration plan is to mature the strong democracy since to learn, the industry is very new complex geology of the SNE-1 independence,” said Mr Sall. and they are in a period of block, while exploration drilling “Our institutions are working terrific success,” said Mr Warner. continues at Bellatrix. Extensive quite well, there is a legal and He stressed the importance of “The appraisal programme is jury system, there is confidence local content and said it is to see if it’s all connected,” Mr evaluation is in our country, the system important to “help the Warner told the briefing. “The underway. The is working and people are willing Senegalese benefit fully”. potential for production is to invest.” “We are working with enormous [but] connectivity is potential for oil Mr Sall went on to say that stakeholders [and] the process is still the uncertainty.” production in since 1988, the Senegalese energy very, very open,” said Mr Warner. Mamadou Faye, CEO of Senegal is sector has been assisted by a “We are building relationships Petrosen, addressed the briefing strong administrative framework with local businesses [and] we on the production sharing enormous but for foreign investors and private are looking to employ as many contract (PSC) with Kosmos (60 connectivity is still investors working in conjunction people as possible in Senegal.” per cent), Timis (30 per cent) with a national operator. Local content laws were and Petrosen (10 per cent). In the uncertainty” He praised companies “from hailed by Mr Warner as being particular, he spoke about Block around the world” that provide “very straightforward” and “not C8, the significant gas discovery S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page18

18 SENEGAL ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

Image Credit: Cairn Energy Senegal is strongly encouraging foreign investment in its energy sector and Britain is keen to play a leading role.

on the border with Mauritania. nascent stages. According to the facilities, Mr Sall said there is an trade relations is part of a wider He said there is a “proposed website of the Mauritanian existing refinery in Senegal but project across multiple African unitised zone” between Senegal Ministry of Petroleum, Energy it is more than 50 years old and countries for the UK to support and Mauritania. and Mines, there are “numerous can only process 2mn tonnes the investment climate. As well as “The document [for the discoveries to be made offshore” per year. A new refinery is being operating in Dakar, UKTI has a unitised zone] has been proposed and there has been “very little built with the ability to process presence in other African cities,

to both governments but it’s a exploration so far in the onshore 5mn tonnes. including Abijan, Accra, Lagos

long process,” said Mr Faye. areas of Mauritania”. “It will use the best modern and Abuja. Ambassador

It is expected that an The Chinguetti oil field, the technology,” he said. Hodgson stressed the importance           intergovernmental agreement Banda gas field with an oil George Hodgson, the British of integrating trade and                between the two countries will deposit and the Tevet field are all ambassador to Senegal, prosperity for African countries. use the Frigg Treaty as a model. promising offshore plays for addressed the attendees on how He praised Senegal’s This is a 1978 United Nations-led Senegal’s neighbour. Additionally, to do business in Senegal and international cooperation with treaty between the governments promising results have been emphasised the assistance the the United Nations Security of Norway and Great Britain in reported from Mauritania’s Tanit- British government can offer. Council, in particular the relation to the exploitation of the 1 field, which is being drilled by “The UK and Senegal involvement with peacekeeping, Frigg Field reservoir on the Total, reflecting the potential of relationship was not traditionally and added that the country is continental shelf in the North the Taoudenni Basin. strong but it is now growing,” aiming for emerging economy Sea. The agreement covered the As well as cooperating with said Ambassador Hodgson. status by 2035. manner in which the field would Mauritania in regard to the The work being done by UK A double taxation agreement be exploited and how the hydrocarbon deposits that Trade & Investment (UKTI) in between Britain and Senegal proceeds from gas production straddle the two country’s Senegal in terms of growing came into effect for Britain in would be apportioned. borders, there is cooperation in April this year and it will come Looking ahead, Mr Faye said regard to the gas-fired electricity into effect for Senegal from that at this early stage any sector. Mauritania has agreed to Energy is January 2017. “upstream development concept supply Senegal with electricity important for “In terms of trade and is just an idea”. He added that in produced from the promising investment, energy is the most regard to the gas discovery on Banda field. Senegal. important for Senegal,” said the Senegal-Mauritania border, In regard to developing FLNG Hydrocarbons are Ambassador Hodgson, before the local market is not big facilities, Mr Sall said that this is potentially a adding that mining, agriculture enough to make it commercially new to Senegal and they are and services will also be successful and developing LNG currently looking at “training and game-changer for important as the economy facilities, such as a FLNG support” and are “open to the country and the continues to grow and develop. treatment unit, for export would discussion” with any company “Hydrocarbons are potentially a be a more viable option. willing to form a partnership discoveries are a game-changer for Senegal [and The Mauritanian oil and gas with Petrosen. In terms of massive boost” the hydrocarbon discoveries] are industry is, like Senegal, in its developing other downstream a massive boost.”  S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page19

Organised By:

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20 EGYPT ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

BOOSTING OFFSHORE GAS FOR THE EGYPTIAN MARKET

Exciting new gas discoveries have the potential to help Egypt get closer to its goal of energy self-sufficiency, paving the way to reduced dependence on imported gas, says Louise Waters.

HE LATEST IMPORTANT offshore discovery by BP and Eni, located in the TBaltim South Development Lease in the East Nile Delta, offshore Egypt, follows the discovery of the Nooros and Zohr fields in 2015. The Baltim SW-1 exploration well, drilled in a water depth of 25 metres by operator IEOC (Eni), reached a total depth of 3,750m and penetrated approximately 62 metres of net gas pay in high quality Messinian sandstone. Located 12km from the Image Credit: pichitstocker/Fotolia shoreline, the discovery is a new BP is one of the largest Eni has been present in Egypt According to Adam Pollard, accumulation along the same foreign investors in Egypt with since 1954, where it operates analyst at energy consultancy trend of the Nooros field. Further investments of approximately through IEOC Production BV. Wood Mackenzie, the Zohr appraisal activities will be US$30bn, and has made a series The equity production in the development is being fast-tracked required to underpin the full of discoveries in Egypt in recent country for 2015 was 200,000 in phases, with the first phase due resource potential. years. Through joint ventures boe/d. to come onstream in late 2017. with EGPC/EGAS and IEOC, Production is set to ramp up to Future potential and the Pharaonic Petroleum Meeting growing energy around 2.7 bcf/d by 2019, plans Company and Petrobel, BP needs equivalent to around 60 per cent Eni said that the Baltim South currently produces almost 30 The Baltim South discovery is the of Egypt’s current production. West discovery further confirms per cent of Egypt’s total gas. Its latest in a number of finds off the It is hoped that the exploitation of the significant potential of the so- main strategic investment, the Egyptian coastline. The most recent discoveries will play a called “Great Nooros Area”, which West Nile Delta project, involves significant discovery was the Zohr significant role in meeting Egypt’s is now estimated to hold 70-80bn the development of five trillion “supergiant” oilfield discovered by growing gas demand, which cubic metres of gas in place. cf of gas resources and 55mn Eni in August 2015. The largest currently outpaces its levels of Hesham Mekawi, regional barrels of condensates. known gas field in Egypt and the production. This has led to the president of BP North Africa, Production is expected to be Mediterranean, it is estimated to import of LNG since April 2015. commented, “Our plan is to around 1.2bn cf/d, starting hold 849.5bn cu/m of gas, covering “This will have a huge, utilise existing infrastructure, in 2017. an area of around 100 sq km. positive impact on the economy, which will accelerate the as it will offset the more development of the discovery, Our plan is to utilise existing expensive gas Egypt is buying in,” expediting early start-up.” said Pollard. It is reported that BP holds a 50 per cent stake infrastructure, which will accelerate the the Egyptian Natural Gas in the Baltim South Development development of the discovery, and Holding Company (EGAS) is lease, and Eni, through its contracted to import 80 LNG subsidiary IEOC, holds the expedite early production start-up” shipments to the value of US$2.3- remaining 50 per cent. 3bn in 2016. S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page21

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM 21

Sectors such as power generation, cement and fertilisers, which have all suffered due to gas shortages in the past, are 6LQFH all likely to benefit, added Pollard.

Seeking further foreign investment The new discoveries, along with the pragmatic approach of the Egyptian government and relatively high cash margins, have served to further whet the appetite of foreign investors. BP announced earlier this year that it is looking to double gas production in Egypt before the end of the decade.

New discoveries will have a huge, positive impact on the Egyptian economy as gas demand is currently outpacing production, necessitating the import of expensive LNG since 2015”

The Egyptian government is making strenuous efforts to encourage further foreign investment, with measures such as the reduction of historic debts to IOCs and energy sector reform. The government has launched two international bid rounds this year for oil and gas exploration; the latest, launched at the end of July, included 10 blocks in the southern Gulf of Suez and the Western Desert. Over the last two and a half years, Egypt is reported to have signed 66 agreements for new upstream oil and gas blocks, securing a minimum commitment of US$14bn. Speaking at OTC in Houston in May, Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources, highlighted investment opportunites worth around US$35bn in the oil and gas sector, with plans to add six bcf/d to the country’s production within five years. In addition to the Zohr prospect, he cited the potential in the Nile Delta, as well as the underexplored Upper Egypt and Red Sea regions. Recent developments have also served to further Egypt’s ambitions to become a regional energy hub for gas re-export, linking up eastern mediterranean countries such as Cyprus, Turkey and Israel.  S05ORA42016CountryfocusSenegal,Egypt_ORAMasterTemplate-2016New11/08/201611:32Page22

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ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM COVER STORY 23

THE UAE AND AFRICA A SPECIAL RELATIONSHIP

The United Arab Emirates has a long history of trade and investment with African countries. Despite challenging economic conditions, canny UAE investors are spotting mutually beneficial African oil and gas investment opportunities. Kevin Hackett reports.

HILE THE “There is no doubt that the RAMIFICATIONS of UAE is an important trading the UK’s decision to partner of Africa,” remarked Dr Wleave the European Carlos Lopes, of the Economic Union are yet to be felt by British Commission for Africa, in an real estate agents (with the interview with UAE newspaper, expectation being that London Gulf News, in April this year. will be seen as a less attractive “For instance, total merchandise proposition for investors from trade between Africa and the the UAE and other Arab UAE has increased from $5.6 nations), there’s no shortage of billion in 2005 to $17.5 billion in smart Middle East money being 2014. That represents more than poured into certain parts of a threefold increase within a Africa right now. And for good decade and shows a clear reason, for while property in the trend towards deepening continent might not be the economic relations between golden opportunity it is Africa and the UAE.” elsewhere, Africa’s oil and gas sectors are proving to be more The long road ahead than sound, with potential for While that total might at first even greater growth than has appear impressive, when it comes been recently experienced. to UAE investment in oil and gas, there’s still a great deal to do in A long history between spreading that much needed the regions wealth. Dolapo Oni is the Head The trading links between Arab of Energy Research at the nations and Africa go back Ecobank Group, Nigeria, and he millennia. Similarities between says that, while money is heading cultures no doubt help, with to Africa from the Middle East, much shared in the way of there’s a lack of uniformity when

religion and traditional values, Image Credit: flibrilu/Flickr it comes to regional investments. but there’s more to the UAE’s Headquarters of the Abu Dhabi Investment Authority, a sovereign wealth fund with “We did a check last year to see interests than a sense of international interests. the extent of trade and investment brotherhood. Leaders in the between the Gulf countries and Emirates’ oil and gas industries Sub Saharan Africa and realised see global expansion as vital in it was really low,” he remarks. securing the long-term futures of Africa’s oil and gas sectors are “On a country-by-country their companies, and Africa proving to be more than sound, with basis, it’s slightly higher for Saudi features high on their collective potential for even greater growth than Arabia and the UAE, relative to agenda, but the underlying Qatar and Kuwait. The UAE reasons might not at first be has been recently experienced” [accounts for] roughly two per quite so obvious. cent of Africa’s trade with the S06ORA42016CoverstoryUAEinvestment_ORAMasterTemplate-2016New11/08/201612:36Page24

24 COVER STORY ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM Image Credit: Etihad Airways In May 2015, Etihad started flying to Uganda’s Entebbe International airport, marking the beginning of an important partnership between the two countries.

world now, but this is on the sums into African oil and gas and also Uganda, which is a key heavily in plans to build and back of a steady increase in trade sectors, particularly in Nigeria, focus in tourism, energy, reinvigorate African ports, volumes since 2005. On the and he is not alone. These infrastructure and oil, among bringing what it sees as a fresh investment side of things, we’ve investments are good news for all other industries,” he wrote. and new approach to corporate seen lots in power and renewable concerned, with significant “Through the minister’s social responsibility, helping to energy across SSA from the UAE. funding being allocated to efforts, Ugandan president develop small and medium-sized Companies such as TAQA have building roads, stimulating Yoweri Museveni and his foreign local enterprises. In turn, the made several investments in existing ports and the introduction minister, Henry Oryem Okello, UAE is hoping to drive out power in Ghana. We have some of other essential infrastructure. signed a double tax avoidance extremism by giving the local UAE companies that have This, it is intended, will agreement with Abu Dhabi that populace a better life with invested in oil and gas fields in contribute to societal and will improve trade. proper, long-term prospects. Cote d’Ivoire, Angola, Tanzania.” political harmony, and bring Cooperation between the He offers an explanation for employment as well as previously The importance of UAE and Africa also results in this perceived lack of continuity: unseen prosperity to regions infrastructure knowledge-sharing and leading “I think there have been a few suffering from large swathes of development for Africa by example. The UAE has been a challenges to understanding poverty. These plans are already The UAE also supports plans to leader in developing free zones to the West African terrain and taking shape in some parts of build airports or airstrips in the make trade, investment and the political economy. Thus, they’ve Africa, as noted by Dr Theodore Ugandan districts of Arua, formation of companies easier, been very hesitant in making Karasik, a UAE-based Pakuba, Hoima (Kabaale) and especially for foreign investors. real investments but there’s a geopolitical analyst, when writing Kasese, develop tourism around Africa has followed this lead with considerable level of appetite in Abu Dhabi newspaper, The Lake Victoria, the construction a resurgence of special economic for oil and gas investment National, this time last year. of an oil pipeline from Uganda to zones. The oil and gas industry opportunities in Africa from “Minister of State [for the UAE] Mombasa, agriculture processing, in particular can benefit from the the UAE. Furthermore, the Reem Al Hashemy has a critical infrastructure, minerals and development of more of these constraints in doing business role when it comes to east Africa investments in renewables. free zones. across the continent – logistics, Last year Abu Dhabi’s One such example is Nigeria’s visas, political unrests, insecurity national airline, Etihad, added gigantic Lekki project. According – have ensured that they The UAE Entebbe International (Uganda’s to the International Energy have focused on specific principal airport) to its ever- Agency’s (IEA) Medium Term countries only.” supports plans to growing list of destinations, Market Report for 2016, the build airports in enabling speedy and reliable project’s owner, Aliko Dangote is Interest from the UAE Uganda and the transport between the two vital “still insisting” it will come Arab billionaire, Sheikh locations – as sure a sign as any online in 2018. While the IEA Abdullah Ahmed Al Ghurair, construction of an that the UAE’s government is forecasts a completion date closer chairman of Mashreq Bank (the oil pipeline from putting its money where its to the end rather than the UAE’s longest established mouth is. beginning of 2018, this large- financier) and Al Ghurair Uganda to Also DP World, the Dubai- scale, complex project has the Investment, has made no secret Mombasa” based shipping, freight and potential to restore Nigeria’s of his interest in ploughing huge logistics colossus, has invested 450,000 bpd refining capacity. S06ORA42016CoverstoryUAEinvestment_ORAMasterTemplate-2016New11/08/201612:36Page25 S06ORA42016CoverstoryUAEinvestment_ORAMasterTemplate-2016New11/08/201612:36Page26

26 COVER STORY ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

While this has been largely Togo-headquartered Ecobank already A bright future with assisted with Chinese investment, has an office in Dubai. mutual benefits the project is still open to other “Overall, the UAE point of view backers and it could represent a is that Africa is experiencing great opportunity for a UAE- rapid population growth and is based investor seeking to fertile ground for foreign capitalise when the Nigerian investment,” said Dr Karasik. hydrocarbons sector recovers. “Abu Dhabi sees its proximity to Africa as an opportunity to benefit from its growth, while Abu Dhabi promoting security in areas near its own borders.” sees its proximity For a country surrounded by to Africa as an political turmoil, the UAE keeping its borders secure has opportunity to never been more important, and benefit from its Africa’s role in keeping safe this incredibly wealthy part of the growth while world cannot be underestimated. promoting security The UAE’s continued investment near its own in Africa could, in fact, be viewed as essential to global borders” security, which in the end really

Image Credit: Ecobank Group does benefit everyone. 

Mixed news for African countries from IEA report into oil market trends for the medium term

THE INTERNATIONAL ENERGY Agency Transportation fuel leads this drive for Nigeria, meanwhile, is still considered (IEA) has released a report on oil market expansion as well as Africa’s emerging by the IEA to be a volatile country, but trends. Oil: Medium term Market Report industries. Greater use of oil in the power the report does factor in President Buhari’s 2016 offers market analysis and forecasts to sector is also forecast with extra demand stated determination to stamp out corruption 2021. The good news for Africa is that stemming from the use of diesel generators and open up the economy to more foreign overall the IEA forecasts improved prospects which are used as back-up in the event of investment in the hydrocarbons sector. for much of the continent, along with breakdowns in the grid. The Nigerian economy is forecast to grow Argentina and India. Geopolitical issues in Libya, Sudan and at an average of 4.3 per cent to 2021. This, Demand for oil continues to rise in Africa, South Sudan will dampen growth in those coupled with a near-quadrupling in refinery largely owing to population growth. The countries. Oil demand in Egypt is contingent runs and no concrete plans to further curb medium term outlook for Africa is for growth on political stability and fluctuating valuation product subsidies after 2012’s gasoline hike, at an average rate of 3.5 per cent to 2021. of the Egyptian pound. means Nigeria’s demand growth is set to average four per cent to 2021. While total non-OPEC African oil production is forecast to decline by 260 kb/d up to 2021 but new projects, particularly in Ghana and Congo, are expected to be sources of new supplies. Ghana is also offering positive news for the continent with the TEN project on track to go online this year. Uganda and Kenya were both cited in the report as markets to watch but their future success in oil development will depend on progress with infrastructure and logistics, as well as political stability. In Niger, pipeline constraints could hinder

Image Credit: European Parliament/Flickr ambitions to triple oil production from President Buhari says he is determined to stamp out corruption and boost foreign investment in Nigeria. current levels. S07ORA42016Planningforshutdown_ORAMasterTemplate-2016New11/08/201611:35Page27 S07ORA42016Planningforshutdown_ORAMasterTemplate-2016New11/08/201611:35Page28

28 RISK MANAGEMENT ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

BETTER PLANNING FOR SHUTDOWN TURNAROUNDS

Nothing can prevent a shutdown turnaround outage from taking place. But as Andy Bartlett of Petrotechnics explains, there are ways to improve planning, execution and outcomes of mandatory shutdowns, and minimise the threat to operational excellence.

S OIL PRICES remain low, tight margins are now The Engen refinery in South Africa underwent a tighter, increasing the successful shutdown turnarouns outage last year. Afocus on operational excellence and the drive for an efficient, productive, safe work environment. However, since operational excellence means many things to many people, it’s worth considering the five basic premises on which it is based. These are: • Achieving a workplace that is free from incidents and injuries; • Mitigating all significant workplace healt h risks and promoting a healthy and safe workforce. Image Credit: Oxfam/Flickr • Identifying and then But can these standards be met the STO looms large on any way. A quarter of shutdown mitigating environmental and during a shutdown turnaround operator’s calendar. It is not professionals gave their process safety risks. outage (STO)? unknown for an STO to involve shutdowns a ranking of less than • Ensuring that asset integrity more than 40,000 separate jobs; five out of 10 (in this scale, one is and reliability attains the Managing hazards and the average duration ranges from terrible and 10 is flawless). highest standards. deadlines 20 to 60 days, depending on the The same poll showed that • Ensuring that all natural Achieving operational excellence type of work that is required. A the principal source of overruns resources and assets are is no straightforward task – even 200,000-barrel-per-day refinery for 45 per cent of survey used efficiently. during normal operational can see its on-site staff numbers participants was scope creep, procedures. But achieving triple or even quadruple, from while 36 per cent said that sub- operational excellence during 500 to 2,000, during a sufficient planning was the main The tension periods of change create a greater turnaround project. threat to efficient management of number of process hazards and This tension between the project. Given that most between managing high-risk activities. It’s not managing risks and delivering to scope creep involves hot work, risks and delivering surprising, therefore, that activities time is a constant challenge of the deviating from the lean scope on time is a such as STO often severely test STO process in particular, and tends to increase risk. an organisation’s ability to operational efficiency in general. constant challenge achieve operational excellence – Perfect STO planning of the shutdown even though such activity is Sub-optimal outcomes Delivering an STO that is closer mandated to be repeated on a A poll by Oil & Gas IQ into to the ‘flawless’ end of the scale turnaround outage regular, if not frequent, basis. trends in the STO space showed starts in the 18-month planning process” A behemoth of planning and just how much of a challenge it is stage. Planning should aim to: seemingly endless paperwork, to deliver a result in an efficient • Simplify the complexity within S07ORA42016Planningforshutdown_ORAMasterTemplate-2016New11/08/201611:35Page29

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM RISK MANAGEMENT 29

the turnaround environment. • Provide risk-based prioritisation for planning and work execution. • Improve standardised risk awareness and risk assessment practices. • Ensure policies, roles and safe working practices are embedded and systematised across the turnaround. • Improve collaboration between functions across the whole turnaround process. • Ensure there are contingencies in place to handle the inevitable emergent work, which is often forgotten or overlooked.

Get this right and outcomes will improve. It is tempting to see planning as the creation of a

detailed manual to follow. But Image Credit: Cairn Energy regardless of how detailed the Cairn Energy, which is operating in Senegal, recognises the importance of safety during all operations. manual is, it is little more than a static to-do list that struggles to shutdown process are hard to taking into account the to a common parameter – in this support good outcomes. capture, as are changes to interrelated tasks, hazards and case, risk. By visualising and It doesn’t take into account operational circumstances, new risks, they can detail not just the optimising workload, conflicts, the multitude of interconnections equipment and new risks. Even minutiae of how an individual and all risks in one place, and involved when 40,000 separate where this information gathering task should be performed, but showing how activities and and often hazardous tasks have is fully computerised, it can be enable planners to consider how conditions combine to impact to be scheduled. By definition, it prone to stasis, reflecting the all work can be delivered safely. process safety in real-world cannot predict all the unexpected events of five years ago, not the The ability to visualise risk conditions, information sharing outcomes, the unanticipated current facts on the ground. before an STO even begins gives is easier and more relevant. events, the unplanned delays, and operators the foresight to With this type of planning so cannot provide guidance on optimise plans both prior to and model, everyone can see the how best to address the knock- Effective during the execution phase, by bigger picture. Using a common on effects that will ripple out proactively adjusting schedules to language of risk, front-line through the schedule. planning lies less reprioritise work as conditions engineers understand the causes It also doesn’t take into in tick boxes and and associated risks change. and consequences of their account the simple human desire more in dynamic The result? A dynamic to do particular tasks, while managers to avoid memorising lengthy list that reduces risk and can make smart decisions about documents. In other words, it’s planning tools that minimises the possibility of staffing and scheduling at a risk not a planning tool that is support developing schedule overruns. level that is acceptable. designed for the dynamic, risky, These tools also help Digital support won’t multi-lingual environment of an manageable, overcome one of the biggest transform STO overnight. It’s not STO. But when well co-ordinated shareable challenges that any multi- going to replace experienced procedures and policies interact procedures” disciplinary project planning people in the field. But it can with dangerous assets and flawed faces: mediating between the make their jobs easier by putting human beings, issues can arise. loudest voices. During the 18- the right procedures in place and The “follow-the-manual” month lead-time there will enabling the right people. It’s approach to planning makes it The language of risk inevitably be different about regarding safety as an harder for operators to adjust to Effective planning lies less in departments coming together, all enabler of productivity, not a change. It is often dependent on lengthy, unconnected tick boxes, of whom feel that their area of drag on operations and profits. information that is stored in on- and more in dynamic planning maintenance is the priority. With a positive connection and offline formats that has to be tools that support the Instead of giving precedence between safety and productivity, gathered, updated and validated. development of a manageable, to the most insistent individual, operational excellence becomes Learnings from the previous sharable set of procedures. By all tasks can be ranked according more achievable.  S07ORA42016Planningforshutdown_ORAMasterTemplate-2016New11/08/201611:35Page30

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ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM EVENT 31

NATIONAL CONTENT FOCUS AT MOZAMBIQUE GAS SUMMIT

With Mozambique emerging as an important player in the Africa hydrocarbons marketplace, the summit will cover a broad range of topics, including local content and developing the gas sector in conjunction with other countries in the East African region.

S THE EAST African country emerges as a vital player in the African gas A sector, there will a strong national content focus at the Mozambique Gas Summit. Image Credit: Edson Chilundo/Flickr Scheduled for Maputo from 30 November until 2 December, there will be a full day dedicated to national content. Delegates will hear from representatives from government and industry on new legislation, capacity- building and enhancing the role of SMEs as the country moves towards gas commerciality. Partnerships between international and local companies, best practices, and boosting the role of local companies will be on the agenda. Last year, Mozambique’s Mozambique is hopeful that developing the gas industry will benefit future generations. government passed a petroleum law with the requirement that implications for the sector and be a session on social and Speakers will include Omar local people are trained and neighbouring countries. environmental impacts. Mitha, chairman of ENH; Carlos employed, preference be given to LNG will play an important There will also be an Zacarias, President of INP, local companies and services, role in the ongoing development outward-looking session on Estevao Pale, Chairman of CMH, and local companies and citizens of the Mozambican gas sector. regional collaboration in HE Joanna Kuenssberg, British have the opportunity to hold Delegates will be updated on infrastructure development with High Commissioner to equity stakes in Mozambican oil LNG projects and financing Mozambique’s neighbouring Mozambique; Martin Hutchison, and gas projects when possible. for gas and LNG. countries. Additionally, there will managing director of The law also lets the government The theme of the session on be discussion of global gas International Resources promote local entrepreneurship domestic gas will be “A Catalyst markets and the role of new Consulting; Dr Vasco Nhabinde, and guarantees a quota of no less for Diversification”, and there will upstream technologies. director of the Ministry of than 25 per cent of Mozambican Economy and Finance; Dr Claire oil and gas be dedicated to the Mateus Zimba, director general local market. The session on Mozambique’s new petroleum law of the Institute for Promotion of building capacity and enhancing requires that local people are trained and SMEs; and Professor Doutour knowledge for successful gas employed, and local companies and Francisco Noa, dean of projects will also tie in well with Universidade Lurio.  the national content focus. The services used wherever possible” conference will cover topics with www.mozambique-gas-summit.com S08ORA42016Maintenanceformoneysaving_ORAMasterTemplate-2016New11/08/201611:36Page32

32 MAINTENANCE ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

A NEW LEASE OF LIFE FOR EQUIPMENT IN STORMY TIMES

Andrew Courtney, operations director for Surface Technology, discusses how oil and gas companies should be looking to introduce new approaches to repair and refurbish their equipment to increase efficiencies throughout the current sector downturn. Image Credit: Fernando Butcher/Flickr

Neglecting maintenance on oil and gas plants, which is inevitably a false economy, can put the site’s future under a cloud and create further costs down the line.

IX MONTHS AGO, the economic costs, waste and environmental impact Despite such a wide array of surface situation faced by multiple suppliers to through effective repair and refurbishment of solutions available to repair and refurbish the oil and gas sector was somewhat offshore equipment. critical components, many oil and gas S concerning, but few people anticipated companies are not utilising these to their the oil price per barrel to drop to US$28 at the full affect and may be missing valuable cost start of this year. There is a wide array saving opportunities. The speed and depth of the impact on the of surface solutions supply chain within the sector has come as a Drilling down to what’s possible surprise and many companies are now faced available but many oil This article will outline a range of critical with a sink-or-swim financial dilemma. and gas companies oilfield equipment that can be repaired and It is important for any company that refurbished and how coatings can extend supplies the industry to always endeavour to do not utilise them to their operational life. work in partnership with oil and gas opertors. their full effect” The range of processes available include These important customers are always looking thermal spray, selective plating processes such at ways in which they can significantly reduce as the SIFCO Process® (a portable method of S08ORA42016Maintenanceformoneysaving_ORAMasterTemplate-2016New11/08/201611:36Page33

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM MAINTENANCE 33

electroplating on localised areas), painting to with Inconel. However, a more dynamic situ, helping to minimise downtime and marine specification from spot repairs to full method of repair would be an HVOF thermal production delays. This, in turn, makes it a asset re-coating, machining and grinding, coating due to the moderate transfer of heat to more cost-effective option for operators. non-destructive testing (NDT) inspection the powder particles and to the work piece. In contrast to tank plating, the SIFCO and pressure testing. Process® does not require extensive masking or special fixtures to plate the component. Valve applications Approaching the SIFCO Process® deposits can be plated at rates Typically, valve bodies and seats can suffer selection of an that are 30 to 60 times faster than from corrosion and abrasive wear in use conventional tank plating. when particles are introduced between two appropriate coating for a moving surfaces. repair can be somewhat The effective impact of a Thermal spray can refurbish them to their daunting and complex one-stop-shop original condition using high velocity oxy fuel The benefit of having a complete approach (HVOF) coatings eliminating the need to without the right advice” to coating solutions is that customers purchase new parts. can be assured that the correct solution will be specified through dedicated Drilling equipment In-situ repairs technical expertise. Issues with the manufacturing process can Some repairs can also be carried out in-situ In summary, approaching and considering also lead to a need for component salvage. For without significant disassembly using the the selection of an appropriate coating for example, we received the sealing bore of an SIFCO Process® and our oilfield equipment repair or refurbishment can be a somewhat outer connector sleeve – a critical part of the preservation service. daunting and complex task without the drilling system – which had been scored The SIFCO Process® is the leading method right advice. during the manufacturing process. of electroplating localised areas on However, if operators are vigilant in A HVOF thermal coating was components without the use of an immersion ensuring repairs and refurbishments are recommended due to its wear, corrosion and tank. There are many benefits to choosing undertaken to the highest standard, this will oxidation-resistant characteristics. selective plating, including the ability to focus result in many benefits including increasing Once coated, the surface profile of the the plating onto specific areas of a asset service life, reducing capital costs and sealing bore was re-machined to meet the component, enabling parts to be plated in- improving profitability.  manufacturer’s original specifications and then comprehensive inspection and non-destructive testing (NDT) to ensure the part had no microscopic cracks or inherent weaknesses.

Christmas trees and pipelines Pipelines and Christmas trees, which are used in subsea oil drilling operations, are subject to harsh undersea conditions, but this equipment Image Credit: Science for Humen Rights/Flickr can be cost-effectively refurbished by working with an oil and gas coating specialist. A bristle blasting method can be employed, for example, as it enables rapid spot repair to small and medium-sized areas.

Subsea/marine risers Larger components with threaded connections such as risers and tethers for tension leg platforms present a coating challenge to the surface finishing industry due to their size and complex handling and resultant health and safety issues.

Blowout preventers A blowout preventer (BOP) is a large high pressure valve used to prevent the uncontrolled flow of liquids and gases during drilling operations. A common industry problem is mechanical damage caused to the internal sealing diameter of the valve. The most common method of repair is to weld clad Poor pipeline maintenance is an example of poor economic management when cost-effective repairs can be made. S08ORA42016Maintenanceformoneysaving_ORAMasterTemplate-2016New11/08/201611:36Page34 break through the

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ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM LOCAL CONTENT 35

MEETING LOCAL CONTENT REQUIREMENTS IN NIGERIA

Meeting local content requirements and being a responsible operator are important to Marine Platforms. The company is showing that giving back to the country and running a successful business are not mutually exclusive.

IGERIA’S LOCAL CONTENT requirements are stringent but Ncompanies are leveraging the laws to help run a more effective business. Marine Platforms is one such example. Last year, the company was awarded the brownfield deepwater construction contract for Chevron’s Agbami Phase 3 project. The contract involves carrying out subsea tie-back for the Agbami field, one of Nigeria’s largest deepwater developments. It is an eight-well drilling programme that commenced in early 2015. Describing it as a “major feat for local content”, Taofik

Adegbite, Marine Platform’s chief Image Credit: Marine Platforms executive officer, said, “This is a Marine Platforms has committed to local content initiatives, including investing in young Nigerian professionals. major achievement for Nigerian content development, especially Mr Adegbite. Ten Nigerian important project. As well as stage. Such training helps to at this current time in the oil and subsea engineers and 20 marine offering young professionals demystify the complexities of gas industry. cadets have been able to benefit experience in Nigeria, Marine such vessels and ensure It further cements Chevron from working on such an Platforms has sent cadets to Nigerians are exposed to vessels as a major player supporting Norway for training. In 2014, 11 of this capacity. indigenous capacity-building in engine cadets from Nigeria were As well as their heavy Nigeria by having confidence in Marine sent to Marine Platforms’ subsea involvement in training Marine Platforms to be able to Platforms vessel build in the Havyard promising young Nigerian execute this job.” Shipyard, located in the professionals, Marine Platforms Since 2010, Marine Platforms promotes Nigerian Norwegian coastal town of has brought about the reality of has been promoting the Nigerian content through Leirvik. The cadets were asset ownership and local content initiative through capacity-building, handpicked from the Nigerian investment in the economy via capacity-building, employment Maritime Academy Oron after a the purchase of multi-million and training of high quality employment and rigorous selection and dollar subsea equipment and Nigerian graduates both at home training, asset examination process. vessels. This is a means of and abroad. The cadets took part in the reducing capital flight, which “Marine Platforms has ownership and familiarisation process of vessel has long been an issue for recruited Nigerians to gain local investment” technology and worked with the the sustainability of the experience on this project,” said vessel build up to completion Nigerian economy.  S10ORA42016Offshorecommunications_ORAMasterTemplate-2016New11/08/201611:38Page36

36 SAFETY ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

MAINTAINING THE RIGHT GAS LEAK DETECTION STRATEGY

Lars Larsson, from Schneider Electric, discusses the challenges faced by gas operators in detecting leaks and the importance of regular maintenance to prevent serious economic and environmental loss and reduce the risk of fires.

HILE LEAK DETECTION guidelines have been W established for liquid transmission pipelines for a long time, the guidelines or standards for leak detection on gas pipelines are few and typically company specific. The methodologies and tools that can be implemented on liquid pipelines with a high degree of success do not work nearly as well for gas transmission pipelines because of the physical state of gas and the operational philosophy of the gas pipeline. Leak detection is vital to prevent disasters, both human and environmental, from

occurring, as well as preventing Image Credit: Safety Transportation Board/Flickr loss. When gas leaks from a Failure to detect leaks can ultimately result in rupture or explosion. This is the Cabri pipeline in Sasketchewan, Canada. pipeline, the natural gas either dissipates directly into the might make the leak close to in good working order. Systems Operators may have the capital to atmosphere or ignites. invisible for the pipeline and industry guidelines for install leak detection systems as Natural gas is compressible, controller in the control room. liquid leak detection and part of a CAPEX investment, but and hydraulics in the gas pipeline These conditions make it much prevention are advancing more may not have the OPEX budget more difficult to detect a leak every day. Similar guidelines for to keep the leak detection system because the most typical gas pipelines are currently working successfully after Natural gas indicators – visual detection, missing, but it is expected that installation. This means the leaks can be close pipeline pressure fluctuation and guidelines for prevention and company feels the technology or volume differential – are detection of leaks on gas pipelines leak detection system has failed, to invisible for the extremely difficult to perceive on will materialise sooner rather and replace it with a new system pipeline operator a gas pipeline, and the strategies than later. covered by another CAPEX in the control room to do so are different from a The foundation of strong gas investment. liquid pipeline. transmission leak detection is an It can be significantly more and this makes To prevent a leak in a gas accurate hydraulic model of the effective and cost-efficient to detection more pipeline, the physical pipeline, its pipeline. To sustain an accurate focus on maintenance rather equipment and instrumentation hydraulic model that can support than a system overhaul. It is difficult than on needs an integrity management advanced leak detection systems, important to recognise that even liquid pipelines” programme (IMP) to ensure the sufficient maintenance of the state-of-the-art equipment infrastructure is maintained and pipeline and the model is needed. requires maintenance, or it loses S10ORA42016Offshorecommunications_ORAMasterTemplate-2016New11/08/201611:38Page37

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM SAFETY 37

value. Lack of maintenance is a to note that if they choose a huge potential problem to an lower maintenance strategy, they industry that is in great need of have to accept the fact that they better leak detection. will be less able to identify leaks The real time transient model that occur. provides an accurate picture of High maintenance is the the hydraulics appearing in the necessary strategy for pipelines gas transmission pipeline. A with a low risk tolerance. Proper good hydraulic model is maintenance allows a business to necessary for leak detection detect leaks and act on them to systems to work well, but as it is prevent loss, as well as create a based on the virtual pipeline detection plan. When anomalies design and telemetry data, it show up they should be promptly

becomes less accurate as the Image Credit: Malcolm/Flickr investigated using the hydraulic nature of the pipeline changes. Safety is imperative to any gas pipeline installation, including leak monitoring, model, a pipeline controller is Gas pipelines are affected prevention and maintenance. able to better understand if the by normal wear and tear, abnormal pressure reading is deposits building up inside, critical add-on modules such as uses existing telemetry and caused by a deposit build up, equipment degrading and leak detection that provide determines what’s working, what equipment failures, or if the possibly even changing operating controllers with advanced tools is not working, and the amount pipeline in fact has a pipeline conditions. If these changes are to prevent and detect leaks. of gas being packed into the integrity issue. not introduced on the real-time Gas pipelines respond in pipeline. If there is a leak, the Maintenance requires transient model as well, then fundamentally different ways to hydraulic model helps the manpower. For the pipeline to any applications building on integrity breaches than liquid operator distinguish when, where run smoothly, workers dedicated the output of the hydraulic pipelines, because gas is a highly and how big it is, or if that leak is to leak detection are vital. They model would suffer, including compressible, diffuse substance. just a broken piece of equipment get to know the software and the leak detection. This means that short of a major that requires maintenance. individual pipelines, so when disaster, a gas leak could go Because the environmental something goes wrong they take undetected indefinitely. and regulatory implications of a immediate action. Gas pipeline Even with no leak detection minor gas leak are less than a A company could lose tens operators have methods, someone will liquid leak, gas pipeline operators to hundreds of thousands of US eventually realise there is an have greater flexibility to balance dollars in lost product if there is more flexibility integrity issue on a liquid their risk tolerance for an a minor or even moderate leak. than liquid pipeline. At some point there will undetected leak against the cost It may have little environmental be a realisation that less product of detection strategies. An impact, but it will be costly if it pipeline operators is getting delivered than was operator’s risk tolerance should goes undetected for a few days to balance their shipped. Even if that isn’t picked determine not only the before a pipeline controller risk tolerance up, a leak will eventually be seen. complexity of the leak detection notices they are not getting the Gas is compacted in a solutions but also the expected amount of gas from against the cost pipeline, so when the receiver maintenance plan. For example, the pipeline. of detection” draws product from the pipe they if an operator is willing to While gas pipeline leak receive it instantaneously, with tolerate a small amount of detection seems daunting, it is not no easy volume-in/volume-out throughput loss in a remote area something to be feared if proper The hydraulic model uses calculation to make. Additionally, where the risk of impact to the maintenance is performed. software to create a virtual model because gas is diffused, gas environment or people is low, Implementing a hydraulic model of what is happening inside the packed into one point of the they can consider implementing improves the chances of detecting pipelines, as opposed to a system pipeline may likely not be a less sophisticated leak detection leaks. This, paired with that only reports information affected by an integrity breach at system that require less maintenance, provides companies such as pressure readings at another point. Finally, except for maintenance. The operator can with peace of mind. specific mile markers. specific conditions, leaking gas then focus their resources on The main goal of pipeline Failing to keep the physical dissipates into the atmosphere high consequence areas such as maintenance, modelling, and pipeline maintained, as well as and, unless identified by special under rivers or populated areas. detection is to avoid large leaks not re-calibrating the hydraulic optical monitors, is difficult to This focuses a company’s down the road. The effort put model to reflect changes, makes visibly catch unless it ignites. resources at the highest risk areas into balancing these factors the model all but useless in the Detecting a gas leak requires where the most loss could be from a pipeline integrity point accurate depiction of pipeline more complex flow monitoring incurred while still keeping an of view from the beginning, will flow conditions. This is critical, solutions to observe and identify eye on the big picture. It is continue to pay off long into as the hydraulic model feeds anomalies. The hydraulic model important for pipeline operators the future.  S10ORA42016Offshorecommunications_ORAMasterTemplate-2016New11/08/201611:38Page38 S11ORA42016Fluoreditorial,magentroleditorial_ORAMasterTemplate-2016New11/08/201611:39Page39

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM ONSHORE 39

MAKING THE MOST OF ONSHORE FACILITIES

Global engineering and construction group Fluor argues that South Africa could consider both onshore and offshore storage and regasification options for importing LNG, but onshore facilities could offer a number of advantages. Terence Creamer reports.

HE SOUTH AFRICAN majority investor in NuScale government is showing a Power, a small modular reactor preference for a floating technology company. Tstorage and regasification Besides sectoral diversification plant, or FSRU, as part of a and engineering services, Fluor broader initative to develop will offer more integrated project the gas importation solutions, including construction infrastructure required to and fabrication. support a gas-to-power (GTP) The group attributes the rise procurement programme. in its order backlog to a record The Department of Energy US$45bn in 2015 partly to is aiming to procure 3,126 MW focusing on lump-sum of gas-fired power generation engineering, procurement, from independent power fabrication and construction. producers (IPPs) and a further Fluor’s recent US$755mn 600 MW from a public-private acquisition of Stork, has

partnership involving state- Image Credit: Fluor increased its capacity in delivery owned companies. Onshore facilities can be leveraged by operators to great effect, saving on costs in of maintenance, modification The government’s IPP Office, some cases and allowing localisation opportunities. and asset integrity services. which has overseen a successful Escalona says the integrated renewable-energy procurement tank facilities that have expanded combined-cycle power plants and solutions model is finding favour programme, is expected to significantly: “That ability to we even have a joint venture with with African clients by spanning release a request for proposals in scale up is a big advantage that Eskom, called Trans-Africa the entire capital project life- the coming months for a South Africa should consider.” Projects, that does grid cycle to reduce costs and “bundled” infrastructure and Localisation opportunities connection,” he adds. schedules, improve certainty of power-generation development, associated with LNG ships are The GTP opportunity also delivery and increase safety. which could be built at the ports limited, whereas they could be arises as Fluor moves to diversify Under the model, the company of Saldanha Bay, Ngqura or significant in the case of onshore and grow its African portfolio to uses its five fabrication mega- Richards Bay. facilities. “We see the programme include more power- and yards in China, Canada, Mexico, Fluor sub-Saharan Africa GM as a strategic opportunity and are infrastructure-related projects, the Philippines and Russia to Alejandro Escalona said that the ready to participate regardless of having traditionally concentrated produce ‘plug and play’ modular FSRU is an understandable the model chosen,” Escalona primarily on the oil and gas and components for capital projects, option, but an onshore LNG stresses. Fluor is able to mining markets in the region. to lower costs, compress schedule terminal could offer greater participate in “everything from Escalona says Fluor is and improve project safety. operational flexibility and the ship to the grid”. considering to actively pursue However, Escalona says the localisation potential. “We feel that we are in a African nuclear prospects, with group is tailoring the fabrication He points to the experience of unique position to deliver momentum from the 2015 solution to the strong demand in a number of European countries, because we work in appointment by Westinghouse Africa for local content.  where the decision to locate infrastructure, we have done Electric Company to build two terminals onshore has made quite a number of regasification nuclear power reactors in the US This is an edited version of an expansions easier to pursue. He terminals around the world, states of Georgia and South article first published in Creamer cited the example of one- or two- we are able to build pipelines and Carolina. In addition, Fluor is a Media’s Engineering News. S11ORA42016Fluoreditorial,magentroleditorial_ORAMasterTemplate-2016New11/08/201611:39Page40

40 SAFETY ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

KEEPING WORKERS AND THE PUBLIC SAFE WITH NETWORK CAMERAS

Andrea Sorri, director business development, Government, City Surveillance and Critical Infrastructure, at Axis Communications, discusses how network video can play a valuable role in securing critical infrastructure facilities as well as supporting HSE processes.

VERY CRITICAL that are integrated with the cameras can be used to check for While it is easy to see how INFRASTRUCTURE access control system, operators any leakages, smoke, or gas network cameras can aid an facility has a duty to can have an overview of how flares, and raise automatic alarms operator to safely run a plant in E protect the health and many workers are present in each so operators can act quickly day-to-day operation, identify safety of workers and the public, area of the facility, at any given and minimise any risk of injuries, hazards and mitigate risks, and as well as tthe environment. time. In an emergency, this or damage to the plant or to to deal with emergencies, long- Typically, there are strict information can be crucial to the environment. term reviews and improvement processes and policies in place to ensure the safe evacuation of the While safety procedures help of HSE practices are also an area ensure employees work in a safe plant and its surrounding area. minimise the number of worth considering. way, use the right tools and Integrated with access incidents, emergencies do occur. The key to continuously equipment, and know the control and using advanced In case of an incident such as a evaluating risks, and improving emergency procedures – for image processing techniques for fire, a fast response is crucial. equipment, processes and example during a plant license plate or facial recognition, Intelligent network cameras services for maximum safety is evacuation. But, beyond the main the network cameras can identify, installed throughout the facility to know exactly how people focus of keeping people and the inspect and track vehicles, enable operators to identify the move inside a plant. Who is environment safe and complying drivers and passengers from the type, scope and severity of the doing what, when and where? with legal requirements and moment they pass through the incident so that proper action Network cameras let the industry standards, health, safety gates, and ensure that safety can be taken. They can assist the operator not only follow a and environment (HSE) procedures are followed and no safe and rapid evacuation of the situation in real-time, but also considerations are increasingly worker or visitor enters a zone plant by detecting smoke and collect statistical data over a evolving, with plant operators that they are not authorised to or how it develops, tracking the period of time to gain a better

seeking – and gaining – a better that is not safe to access. flow of evacuation through the understanding of what happens Image Credit: understanding of the actual risks Similarly, the same cameras building, and tracking and inside the facility day to day – and effects of production can be used to make sure supporting the rescue team as helping the security and the processes within their plant, and employees are working in a they enter the facility. Advanced safety manager to adjust and how best to mitigate those risks. secure and clean environment camera technologies that update safety and environment While HSE processes are and in a safe manner at all times. enhance image quality help policies and procedures as often still managed manually, With add-on video analytics provide a clear picture of the needed, and serving as a training some operators are now turning applications such as cross-line situation, even in situations tool when instructing employees to network video technology to detection, the cameras can, for where visibility is poor due to on safe practices. help them automatically monitor instance, automatically alert smoke, dust or darkness. Due to their superior image process adherence, evaluate risks individuals if they are getting too quality, connectivity, scalability, in real time, and improve health close to a dangerous zone or to and scope for adding video and safety practices. the machinery. Thermal network analytics applications, network Network video cameras may cameras can track whether safety video cameras are increasingly already be in place to protect helmets, high-visibility vests or replacing analogue CCTV against unauthorised access, safety glasses are worn, while at cameras to secure critical sabotage and theft. The same the same time protecting the infrastructure facilities. With the technology can also be used to employees’ privacy as they don’t added benefit of being able to ensure the safety of the workers record facial features. And finally, support HSE processes, the within the facility. For example, to detect dangerous and transition to network video is a Andrea Sorri, Axis Communications. with the help of network cameras hazardous situations, network more obvious choice.  S11ORA42016Fluoreditorial,magentroleditorial_ORAMasterTemplate-2016New11/08/201611:39Page41

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM TECHNOLOGY 41

THE ROLE OF WELLHEAD INSTRUMENTATION FOR EFFICIENCY AND SAFETY

There are multiple opportunities along the wellhead production stream to save money, improve performance and boost safety using level and flow measurement. Magnetrol is one company leading the way with the latest technologies.

ELIABLE WELLHEAD at point level, the Echotel® INSTRUMENTATION Model 961 ultrasonic level for level and flow control switch is a good choice. This Ris critical to the efficient is also recommended for processing and safety shutdown water tanks. systems required of demanding • Like level technologies, visual production applications. indication is important. The The following steps in the Orion Instruments Atlas, the wellhead production stream Aurora magnetic level offer opportunities for better indicator, or the Jupiter performance from wellhead Using the best technology saves time and money for operators. magnetostrictive transmitter equipment, using level and Image Credit: Magnetrol are recommended. flow measurement. measurement of gas/liquid smaller vessels associated with oil interface that is insensitive to and water processing. Diesel Vapour recovery unit Wellstream separators foam. This prevents liquid generator fuel, potable water and (VRU) Separators are large drums that carryover or gas blow-by. fire water are also stored. If allowed to escape into the separate wellstreams into The Eclipse® Model 706 atmosphere, hydrocarbon individual components. They are guided wave radar transmitter Overflow control vapours diminish income commonly designed to separate is recommended. Wellhead instrumentation that through loss of hydrocarbon two-phase (gas/liquid) or three- • Visual indication delivers monitors level can provide volume and create fire hazards phase (gas/crude/water) technology redundancy and overflow control and alarm and pollution problems. A VRU wellstreams. Separators are diversity, especially in remote, systems or shut down pumps collects vapours from storage and classified according to horizontal power-challenged sites where when level drops too low. loading facilities, reliquifies the or vertical configuration, non-powered visual indication Interface controls will sense the vapours and returns the liquid operating pressure, turbulent or is preferred. The Orion beginning of an oil/water hydrocarbons back to storage. laminar flow, and test or Instruments® AtlasTM or interface during tank dewatering Methods to recover vapours production separation. Aurora® magnetic level and control the water draw-off. include absorption, indicator, or Jupiter® condensation, adsorption and Challenges magnetostrictive transmitter For oil and water tanks simple cooling. Interface level measurement will are recommended. This will • Continuous interface level A VRU is a simple, actuate a valve to adjust vessel also work on water tanks. provides effective level economical process unit that level in the oil separation • Flow indication detects water measurement of gas/liquid provides EPA compliance and process. An emulsion layer along level to activate shut-off. interface that is insensitive to improves operating economies the oil/water interface can The Thermatel® Model foam, to prevent liquid by capturing up to 95 per cent contaminate the oil with water or TD2 flow/level/interface carryover or gas blow-by. of fugitive emissions. the water with oil. Foaming switch is recommended. The Eclipse Model 706 Continuous flow indication along the gas/liquid interface, if guided wave radar transmitter provides precise monitoring of entrained, can cause liquid Process and storage is recommended. hydrocarbon vapours and flared carryover or gas blow-by. tanks The Model R82 non-contact gases. A Thermatel TA2 thermal Crude oil and water are stored at radar is recommended for dispersion mass flow meter Level technologies the wellhead. Unlike midstream water tanks. is recommended.  • Continuous and interface level tank farms at terminals and • For an effective “high alarm” provides effective refineries, field storage consists of device for overfill prevention www.magnetrol.com S11ORA42016Fluoreditorial,magentroleditorial_ORAMasterTemplate-2016New11/08/201611:39Page42

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STRATTEGIES FOR THE NEWN ENERGY LAND DSCAP

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GGLOBALOBA BA BUSINESSB S LEADERS AND CONFIRMED SPEAKERS

Mark GaGarretttt Alexanderan Medvedev Jeff Miller Toshiakio Kitamura Vicki A. Hollub Paal Kibsgaard Lars Christian Bacherr Patrick Pouyanne Chief Executive cu Officer er Deputy Chairman President President & Chief Executive Officer President and CEO Chairman & Chief Executive Officer Executive Vice President Chief Executive Officer BOREALIS MManagement Committee HALLIBURTONT INPEX/JODCO OCCIDENTALA PETROLEUM SCHLUMBERGER Development & Production Internatioonal TOTALA GAZPROM CORPORATIONT STATOILT

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WOMAN IN EN NERGY TOPICAL LUNCHEONS 8 SESSIONS 3 SESSIONS Register to Join 8,500+ Conference ce Delegates for Four Days of Unparalleled Networking working and 106 TECHNICAL SESSIONS OPERATIONALT EXCELLENCE PPROJECTS ENGINEERING AAND MANAGEMENT Learning Opportunities in the Oil and Gas Sector. DRILLING COMPLETION HSE FIELD DEVELOPMENT www.adipec.com/confregpec.com/confreg TECHNOLOGY UUNCONVENTIONAL E&P GEOSCIEN NCES GAS TECHNOLOGY RRESOURCES For more information please contact Email: [email protected] ‹ Tele : +971 2 697 0517

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ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM ADIPEC 2016 43

‘EFFICIENCY AND SAFETY CRITICAL TO OFFSHORE SECTOR’

Premier oil and gas gathering – ADIPEC 2016 – will host world-class conferences and seminars to share best practices and opportunities.

AXIMISING EFFICIENCY WITHOUT Mcompromising on safety and quality is crucial to creating a sustainable offshore sector in today’s economic environment, experts urged ahead of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2016 from 7-10 November 2016 at ADNEC. According to a recent study ADIPEC 2016 will be hosting the second edition of its by research firm Markets and highly anticipated Offshore, Marine and Heavy Markets, the global offshore Equipment Exhibition and Conference in Abu Dhabi. drilling rigs industry is expected

to grow from an estimated Image Credit: ADIPEC US$65.77bn in 2014 to advancements for equipment, Following its launch last year, and services, ADIPEC provides US$102.47bn by 2019, at a have made drilling operations the dedicated zone is set to an ideal platform for CAGR of 9.27 per cent, more feasible and cost effective. attract more than 100 exhibiting stakeholders to collaborate representing a sizeable In line with ongoing global companies as global industry towards creating a sustainable, investment in a sector that and regional investments in professionals come together with more resilient offshore sector.” continues to play an instrumental offshore production, ADIPEC the common goal of bringing Christopher Hudson, role in the growth of emerging 2016 will be hosting the second best practice to what has been president – Global Energy at energy markets. edition of its highly anticipated traditionally recognised as a dmg events, organisers of The report indicated that the Offshore, Marine and Heavy complex sector. ADIPEC, added, “With about progress of the offshore rigs Equipment Exhibition and Ali Khalifa Al Shamsi, CEO one-third of the world’s oil market largely depends on Conference. The purpose-built of Al Yasat Petroleum Operations supplies coming from offshore growing exploration activities quayside exhibition and Company and ADIPEC 2016 wells, technology and innovation across the globe. Recent conference theatre makes chairman, said, “Significant will continue to play a pivotal discoveries of oil and gas reserves ADIPEC 2016 host to one of the developments in technology have role in driving efficiency and in remote areas, along with world’s most exclusive waterfront allowed us to safely and best practice in the offshore increasing technological offshore and marine showcases. efficiently tap into deepwater sector. The mooring and reserves which were previously quayside exhibition space at considered inaccessible. ADIPEC allows visitors to The forum will bring together However, today’s market presents witness a host of offshore new challenges, and we must equipment, technologies and government ministers, CEOs of the continue to enhance efficiencies tools in their native setting.” world’s oil and gas giants, and industry without compromising on ADIPEC has the track record experts to address the current state and health, safety, or the of bringing together experts and environment. By combining key decision makers to discuss future opportunities for the energy sector” global expertise with a unique challenges and opportunities in showcase of offshore products the global energy sector.  S12ORA42016Adipecpreview,Africaoilweek,Rigcount,InnovsA_ORAMasterTemplate-2016New11/08/201616:53Page44

44 FEATURE ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

CELEBRATING AFRICAN UPSTREAM

The 23rd Annual Africa Oil Week-2016 to be held on 31 October-4 November 2016 in South Africa will focus on Africa’s upstream industry with insights, debates and discourses from Africa’s governments, national oil companies, licensing agencies and corporate players who are shaping the continent’s vast hydrocarbon future.

HILE THE AFRICAN continent continues to Around 160 attract a steady stream exhibitor W of oil and gas companies and commitments in its fast-growing oil, gas and energy industry, the more than 1,000 Africa Oil Week-2016 event will senior executive showcase key players shaping the continent’s future in exploration delegates are and production/development, expected to across new frontiers and participate in established basins, onshore in the rifts and offshore in the shelf the event” and deep-water. Established in 1994, Africa Oil Week is one of the most The African Oil Week widely recognised oil and gas includes the Africa Independents events in the region. The event Forum, Africa Upstream aims at forging corporate/state Conference, PetroAfricanus relationships in Africa and Dinner in Africa, the Global worldwide, as well as drive Women Petroleum and Energy direct and foreign investment Club Luncheon, Africa Local into and inside Africa’s multiple Content Forum, African Institute upstream landscapes. of Petroleum Luncheon and The organisers have Young Professionals in Africa, confirmed that the 2016 among other events. conference will highlight Africa’s Leaders in the industry will expanding gas and energy game. be honoured during the week at There will be a strong focus The event will be held at the Cape Town the annual “Big Five” board on emerging unconventional International Convention Centre, South Africa. awards, to be held for the 20th ventures in shale and diverse time at the conference. hydrocarbons, the fast-growing & Partners Image Credit: Global Pacific Some of the confirmed class of ‘Born in Africa’ showcased. Additionally, local decision-makers, leading speakers at the event are SacOil companies, Africa’s state oil content policies and players and thinkers and policy-makers, and Holdings CEO Thabo Kgogo, firms and foreign national young professionals in Africa, will see participation from 160 United Hydrocarbon oil companies. and debate on the continent’s oil exhibitors and more than 1,000 International president and CEO There will also be a large and gas future will feature. executive delegates. Around 40 Gabriel Ollivier, Sound Energy technical component to the According to organisers, the governments are expected to Plc CEO James Parsons, Lekoil conference with leading event will present a programme take part in the event, as well as CEO Olalekan Akinyanmi and exploration technologies and with 130 top-line speakers, banks institutions, institutional Ambit Energy president and geoscience/technical ideas being including corporate/state investors and financiers. CEO Tunde Agbi.  S12ORA42016Adipecpreview,Africaoilweek,Rigcount,InnovsA_ORAMasterTemplate-2016New11/08/201615:07Page45

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Joaquim Chissano In nternational Conference Centre tre Maputo Mozambique

EMPRRESA NACIONAL DE HIDROCARBONETOS, E.P. S12ORA42016Adipecpreview,Africaoilweek,Rigcount,InnovsA_ORAMasterTemplate-2016New11/08/201615:07Page46 S12ORA42016Adipecpreview,Africaoilweek,Rigcount,InnovsA_ORAMasterTemplate-2016New11/08/201615:07Page47

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM RIG COUNT 47 AFRICAN RIG COUNT - 2016

COUNTRY 01/06/2015 01/07/2015 01/06/2016 01/07/2016

ANGOLA 20 16 10 10 EGYPT 15 17 10 9 NIGERIA 13 14 6 6 GABON 5 5 1 1 CONGO (BRAZZAVILLE) 3 3 3 3 GHANA 1 3 2 2 CAMEROON 1 2 1 1 TUNISIA 2 1 1 1 SOUTH AFRICA 1 2 1 1 CÔTE D’IVORE 1 1 1 1 LIBYA 1 1 1 1 SENEGAL 0 0 1 1 MOROCCO 1 1 0 0 BENIN 1 0 0 0 EQUATORIAL GUINEA 1 0 0 0 MOZAMBIQUE 1 0 0 0 Grand Total 67 66 38 37

Source: Luke Davis, Infield Systems GE opens innovation centre for Africa in Johannesburg

GE HAS INVESTED in US$33mn in its first African Innovation Centre. Based in Johannesburg, the centre will be a hub for research, development, SME growth and skill-building across the company’s multiple business sectors, including oil and gas, as well as power generation. The centre will help support existing GE projects, such as power generation technology for nine gas-fired power stations located across South Africa. Additionally, the centre will support other projects across the African continent, such as the agreement with the Nigerian government, which includes oil and gas projects in its remit.

Job creation will be an important part of Image Credit: GE the centre’s role with a project to develop the This gas engine by GE is being used on a Tanzanian project. The new centre, which has opened in South Africa. careers of more than 100 engineers from could pioneer similar products for the oil and gas industry. disadvantaged backgrounds, working across the entire GE product portfolio and learning Johannesburg in 1898. The company left the site provides testing, assembly and service of from the company’s leading members of staff. country in the 1970s in support of sanctions multiple subsea systems, such Facilities will include a learning and which were imposed against the apartheid as Christmas trees and connectors. Also in development centre, and a prototyping system of governance. GE then reinvested in Nigeria, GE is investing up to US$250mn in a laboratory for new product development. the 1990s when democracy was restored. manufacturing and assembly facility in GE has a long history in South Africa, with Among GE’s African projects is the Calabar as a regional hub for the company’s its first office outside the USA opening in purpose-built facility in Onne, Nigeria. The power generation services. S13ORA42016InnovsB,InnovsC&Subform_adindex,Interviewtilone_ORAMasterTemplate-2016New11/08/201612:32Page48

48 INNOVATIONS ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

Half-mask respirators designed to New virtual prevent the spread of silicosis pipeline

THE RISK OF TB infection is trailer dramatically increased for those suffering from silicosis – a form announced of occupational lung disease caused by inhaling crystalline QUANTUM FUEL SYSTEMS silica dust. It is characterised by Technologies Worldwide shortness of breath, coughing (QTWW), a specialist in natural and fever, and is widespread in gas storage systems, integration South African mining and vehicle system technologies, communities. In an effort to recently announced its offering of overcome this occupational the new VP-650TM virtual hazard, MSA Africa developed pipeline trailer which will

half-mask respirators, which are Image Credit: MSA supposedly have the highest more effective than traditional The ‘MSA ‘Advantage’ half mask features reusable cartridges. capacity available in the industry dust masks, to platinum-mining at approximately 650,000 SCF. end users. It also has oil and gas “Currently, a large number of week to a month-and-a-half,” The VP-650TM virtual industry applications. mines use dust masks that only Mohun adds. pipeline trailer is expected to be MSA Africa respiratory and last for an eight-hour shift, and It provides flexibility in usage, capable of moving very large fire helmets product manager which present the opportunity and has a filter programme to quantities of CNG to support Suraksha Mohun explains that a for contaminants to sneak in. protect against harmful particles. industrial users of energy who reliable face mask can mean the “The MSA ‘Advantage’ half Due to the humid conditions are not connected to a natural difference between life and death mask is cost-effective as its underground, the Advantage gas pipeline. The VP-650TM for those exposed to fumes, mists cartridges can be replaced, and range of masks feature moisture- utilises Quantum’s Q-Lite CNG and hazardous gases daily. which can last anything from a holes to release any water. storage cylinders. The tanks in the VP-650TM are also capable of storing gas at up to 5,000 psi service pressure Analysing umbilicals and flexible pipes enabling additional fuel capacity compared to standard 3600 psi systems. This combination of SUBSEA ENGINEERS components, has now been full-scale subsea umbilicals,” lighter weight technologies and CALCULATE stresses in proven to deliver highly accurate notes Nils Sødahl, vice higher fuel density design has umbilicals and flexible pipes results according to a release by president, Riser Technology, enabled Quantum to provide the using software to ensure that the company. This was achieved DNV GL – Oil & Gas. new VP-650TM virtual pipeline individual components will not through a joint industry project Helica is a cross-section trailer with the commendable fail. Such failures could lead to (JIP). The JIP compared stresses analysis tool that calculates capacity of 650,000 SCF. costly production shut-downs or calculated using Helica with mechanical properties, Additionally, the trailer design hydrocarbon leaks. DNV GL’s measured stresses in a full-scale capacities, and fatigue of and integration will house other Helica software, which umbilical sample subjected to umbilicals and flexible pipes. features including push button calculates stresses in umbilical tension and Based on these analyses, shut-offs, independent lock-off and flexible pipe bending, and engineers can optimise design features, and other technology the analysis and save cost throughout the to ensure a full fill is achieved results lifecycle of the subsea system. every time. correlated The JIP, which included Quantum president and CEO with the Ultra Deep LCC, ExxonMobil, Brian Olson said, “We believe that test data. Oceaneering, Shell, Technip and offering 20 per cent more gas “As far as we ABB, based its research on data capacity than competing systems know, this is the first provided by ExxonMobil. will allow virtual pipeline time anyone has been able to “We are very grateful to companies to save substantial demonstrate such a remarkably ExxonMobil for contributing operating cost by making 20 per strong correlation between stress measurements to the JIP cent fewer trips to service high analysis results and such high and giving us this opportunity,” volume industrial CNG users.” quality stress measurements in says Sødahl. www.qtww.com Image Credit: DNV GL Helica is a tool that has been developed for calculations on flexible pipes. S13ORA42016InnovsB,InnovsC&Subform_adindex,Interviewtilone_ORAMasterTemplate-2016New11/08/201612:32Page49

ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM INNOVATIONS 49

Combustion system installation improves gas turbine efficiency

GLOBAL SPECIALTY CHEMICAL company, hours between inspections, FlameSheet is Eastman Chemical Company declared Power ideally suited for the operationally challenges Systems Mfg’s (PSM) FlameSheet combustion associated with shale gas, liquefied natural system conversion project a ‘remarkable gas, alternate fuel operation such as ethane, technical success’ at the global 7F Users propane and hydrogen. conference. The system is in use on the two Speaking about the company’s experience 7F gas turbines at the company’s Longview, in using the technology, Eastman Chemical Texas-based cogeneration facility. Company area manager of utilities- FlameSheet is an innovative retrofittable cogeneration operations Jim Stark said, combustion system, with operational “FlameSheet’s extended turndown capability flexibility characteristics aligned to dynamic allows us to increase market participation and challenging power generation market with the full capability of the plant available Image Credit: PSM needs. The FlameSheet combustor employs a while minimising exposure to unfavourable According to the company, FlameSheet can help to 2-in-1 can-annular combustor concept. market conditions.” increase gas turbine operating load range by up to 30 According to PSM, which is part of the PSM president Alex Hoffs pointed out per cent. Ansaldo Energia Group, FlameSheet provides that power generation market dynamics up to a 30 per cent gas turbine operating require gas turbine power plants to operate in increased fuel flexibility, FlameSheet load range increase while maintaining single increasingly flexible operating windows. technology can enable customers to digit NOx and CO emissions by innovative By delivering extended turndown implement strategic operational changes to leveraging fuel/air mixing concepts. capability, as well as lower maintenance costs, increase profitability in their respective Designed to operate up to 32,000 factored reduced emissions, and significantly markets, he added.

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50 INTERVIEW ISSUE 4 2016 • WWW.OILREVIEWAFRICA.COM

INFRASTRUCTURE DEVELOPMENT DRIVING TANZANIAN TRANSFORMATION

finnCap’s oil and gas analyst Dougie Youngson spoke to Vani Venugopal about Tanzania’s hydrocarbons prospects, including the implications of the new Uganda-Tanzania pipeline, infrastructure development and the effects of the downturn in gas prices.

Tell us about the Uganda- process. That pipeline is driving Tanzania oil export pipeline. the modernisation of the LNG It was recently announced that sector, which will be of benefit to the pipeline is going to pass the whole nation. The through Tanzania as opposed to modernisation process, including Kenya. The key driver for that development of roads, railways was concern over security in and ports, will the market more Kenya across the Somalian attractive for foreign investment border. Ensuring security along and one part of that investment the length of the pipeline would will be the oil and gas sector. have been an expensive thing to do. So they have gone for the Has global interest in the easier option of running it emerging Tanzanian oil and through Tanzania, which is a bit gas industry increased? more stable. Also the topography Yes. I’ve seen quite a few Chinese of the land is a bit better; companies coming in and Tanzania is flatter than Kenya. building roads, railways and gas pipelines and clearly the

What are the implications of Image Credit: finnCap expansion of the ports will see the pipeline for Tanzania? Dougie Youngson is broadly optimistic about the development of the Tanzanian more imports coming into the In theory, we should see some hydrocarbons sector, despite ongoing challenges. country and more exports of more exploration going on various products that Tanzania in Tanzania. Obviously, if you any new projects will be built. these plants are very high. So it is produces. Certainly, it is still make a discovery next to a Along the whole of the East probably not going to happen for quite an early stage. There is still pipeline, you can commercialise African coast, all the way to some time. quite a lot to be done, but as this your oil more easily. Hopefully, Mozambique, there are large infrastructure becomes more that would provide quite a big capsules that are ideal for LNG Will the market pick up again? established and people become stimulus for companies to development, but there is no Hopefully. Ultimately the market more aware of it, you can start looking for more market and the prices of building has got to go through a certainly expect to see a pick up exploration onshore. rebalancing process like we in the nation’s economy. have seen for oil. It will happen How is the downturn in the in time, I’m sure. However, What are your views on the gas price affecting the The pipeline I don’t think anyone really long-term outlooks for oil LNG sector? is driving the knows how long. and gas in Tanzania and The LNG sector is massively modernisation of East Africa? oversupplied at the minute. In terms of development, There is huge amount of There is too much capacity the LNG sector, where do you see Tanzania’s opportunity in East Africa already in place and in the next which will be of oil and gas sector? Do you generally but Tanzania is leading five years there is even more see potential? the way. The new president has coming on line. So, really, there is benefit to the Yes, I think so. The building of clearly got a vision for the a large quantity of LNG that the whole nation” the gas pipeline has really been country. These big infrastructure market needs to absorb before crucial to kickstarting this whole projects are part of that vision.  S13ORA42016InnovsB,InnovsC&Subform_adindex,Interviewtilone_ORAMasterTemplate-2016New11/08/201612:32Page51 S13ORA42016InnovsB,InnovsC&Subform_adindex,Interviewtilone_ORAMasterTemplate-2016New11/08/201612:32Page52

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