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Europe €10, Ghana GHc22, Kenya Ksh500, Nigeria N1800, South Africa R60, UK £7, USA $12 WWW.OILREVIEWAFRICA.COM OIL REVIEW AFRICA - VOLUME 13 - ISSUE 5 2018 2018 5 13 ISSUE - VOLUME - AFRICA REVIEW OIL
VOLUME 13 | ISSUE 5 2018
Southern Africa’s deepwater AMBITIONS Coral: Mozambique’s FLNG achievement The rise of women in African oil and gas Cryptocurrency and exploration in Namibia Corrosion management, fire prevention, certification, flow management, artificial lift, warehousing
SEE US AT THE SHOW www.oilreviewafrica.com
Interview: Bode Balogun, Prime Atlantic Global (p48) S01 ORA 5 2018 Start_ORA Master Template - 2016 New 18/10/2018 15:56 Page 2 S01 ORA 5 2018 Start_ORA Master Template - 2016 New 19/10/2018 10:21 Page 3
Europe €10, Ghana GHc22, Kenya Ksh500, Nigeria N1800, South Africa R60, UK £7, USA $12 WWW.OILREVIEWAFRICA.COM
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VOLUME 13 | ISSUE 5 2018 EDITOR’S NOTE Southern Africa’s deepwater It’s Africa Oil Week time once again and Oil Review Africa is delighted to renew its partnership AMBITIONS for this event. As oil and gas industry leaders descend on Cape Town for a week of discussion, Coral: Mozambique’s FLNG achievement presentations and networking, our economist Moin Siddiqi offers his detailed analysis of oil and The rise of women in African oil and gas Cryptocurrency and exploration in Namibia gas prospects across the southern part of the African continent. Will deepwater projects prove to Corrosion management, fire prevention, certification, flow management, artificial lift, warehousing be the big winners across multiple markets? See page 24 for more. Elsewhere in this issue, we catch up with Dr Amy Jadesimi, managing director of Ladol (p34) SEE US AT THE SHOW and flag up the achievements of women in the Nigerian oil and gas industry (p34). The future is
Interview: Bode Balogun, bright for women in the industry with more opportunities and more encouragement for girls to Prime Atlantic Global (p48) study STEM subjects and pursue careers in this traditionally male-dominated field. We look forward to more interviews with leading women in future issues of the magazine. A detailed analysis of southern Africa can be found on page 24. Georgia Lewis Managing Editor CONTENTS
Managing Editor: Georgia Lewis [email protected] NEWS Fire prevention Editorial and Design team: Prashanth AP, Hiriyti Bairu, 43 Safety in hazardous locations. Miriam Brtkova, Praveen CP, Rhonita Patnaik, Samantha Payne, African hydrocarbons news Rahul Puthenveedu, Deblina Roy, Louise Waters 6 Updates from across the continent. Safety Publisher: Nick Fordham 45 Improved regulations. Sales Director: Michael Ferridge COVER STORY Magazine Sales Manager: Chidinma Anah Certification Tel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076 Outlook for Southern Africa 47 Guidelines from Bureau Veritas. E-mail: [email protected] 24 Emerging and established markets. International Representatives Flow management India Tanmay Mishra 49 Flow induced vibration assessments. Nigeria Bola Olowo COUNTRY FOCUS UAE Graham Brown USA Michael Tomashefsky Compressors Mozambique 50 Powerful new turbo technology. Head Office: 28 Major FLNG milestones. Alain Charles Publishing Ltd Artificial lift University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Nigeria 51 A sector reassessment. Tel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076 30 Refinery development update. Middle East Regional Office: Warehousing Alain Charles Middle East FZ-LLC South Africa 53 Leveraging blockchain and an update Office L2-112, Loft Office 2, Entrance B 32 Petroleum SA’s latest activities. from Stodec Trading. P.O. Box 502207, Dubai Media City, UAE Tel: +971 4 448 9260 Fax: +971 4 448 9261 Namibia Production: Srinidhi Chikkars, Nelly Mendes, Infant Prakash, 58 Pioneering cryptocurrency for oil and INTERVIEWS Rakshith Shivakumar E-mail: [email protected] gas in an ambitious project. Subscriptions: [email protected] Dr Amy Jadesimi On her ambitions with Ladol. Chairman: Derek Fordham TECHNOLOGY AND OPERATIONS 34 Printed by: Buxton Press Women in oil and gas Bode Balogun © Oil Review Africa ISSN: 0-9552126-1-8 36 Leading the way in Nigeria. 48 Prime Atlantic Global Instruments.
Rig reactivation Jude Abalaka 38 Getting back into business. 52 Tranos managing director.
Corrosion management Paul Alexander 40 Vital maintenance for operators. 55 Storm Procurement managing director.
Asset optimisation Serving the world of business 42 Cost-effective FPSO management. S01 ORA 5 2018 Start_ORA Master Template - 2016 New 19/10/2018 10:25 Page 4
4 EVENTS CALENDAR ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM Executives Calendar 2018-2019
OCTOBER & NOVEMBER 22 Big 5 Board Awards 29-30 Algeria Future Energy London Algiers www.algeria-future-energy.com www.africa-petroleumclub.comD 31 Oct- DECEMBER 2 Nov Mozambique Gas Summit & Exhibition 3-6 Practical Nigerian Content Maputo Yenagoa, Nigeria www.mozambique-gas-summit.com www.cwcpnc.com 5-9 Africa Oil Week JANUARY 2019 Cape Town www.africa-oilweek.com 14-17 World Future Energy Summit 12-15 ADIPEC Abu Dhabi Abu Dhabi www.worldfutureenergysummit.com www.adipec.com 23-24 WAIPEC 21-22 Ghana Summit Lagos Accra www.waipec.com www.cwcghana.com
Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.
Digitalisation focus for oil and gas at ADIPEC 2018
ABU DHABI INTERNATIONAL environmental gains that will centre of a much bigger and gas business leaders as Petroleum Exhibition and reach into every corner of the conversation. speakers, ADIPEC brings Conference (ADIPEC) will be business, but the opportunities Conference sessions for the together the companies, decision held from 12-15 November 2018, come with risks that must be downstream refining and and policy makers that shape the focusing on the advancement of understood and navigated,” said petrochemicals sector, which future of oil and gas supply, for artificial intelligence, blockchain, Jean-Philippe Cossé, vice- were introduced for 2017, will four days of focused business, robotics, sensor technology, president for Energy at dmg return to ensure that ADIPEC dialogue and knowledge transfer machine learning, deep learning, events. covers each link in the oil and gas that addresses today’s energy edge computing etc to drive oil “ADIPEC is responding to this value chain. challenges and defines and gas industry. with a new ‘Digitalisation in The co-located waterfront tomorrow’s hydrocarbon Digitalisation is a major trend Energy zone, supporting Offshore and Marine Exhibition landscape. driving CEO decision-making in innovation, and helping drive and Conference will add a The technical conference the global oil and gas sector. A smart investments that will be the commercial dive zone, while programme, organised in range of interconnected emerging foundations of business success other returning features include collaboration with the Society of technologies aims to unlock a in the years ahead,” Cossé added. the ADIPEC Awards, which Petroleum Engineers (SPE), sets potential US$50bn in savings and Spanning both exhibition celebrate excellence in energy, the international standard for the increased profit, according to halls and the strategic and and Young ADIPEC, a dedicated exchange of best-practice and McKinsey. Digitalisation is technical conference ‘edutainment’ programme operational excellence in the expected to cut capital programmes, the Digitalisation in designed to encourage students world of energy, with all technical expenditure by 20 per cent, with Energy zone will include top to choose a career in energy. abstract submissions put through operating costs in upstream cut technology providers and new New for 2018 will be an a rigorous evaluation process by three to five per cent and one to start-ups serving the oil and gas Inclusion and Diversity in Energy the Technical Programme three per cent in downstream. sector. A purpose-built conference programme, Committee. Sessions cover “Digitalisation is an urgent Innovation Theatre will provide continuing and expanding on the upstream, midstream and priority for industry CEOs and tech companies with the work of the Women in Energy downstream sectors, including business leaders, offering cost opportunity to host expert talks conference in previous years. offshore and marine. savings, operational and take digitalisation out of the Hosting more than 80 improvements, and safety and technology silo and place it at the ministers, CEOs, and global oil www.adipec.com S02 ORA 5 2018 News 01_ORA Master Template - 2016 New 18/10/2018 15:22 Page 5 S02 ORA 5 2018 News 01_ORA Master Template - 2016 New 18/10/2018 15:22 Page 6
6 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
Madagascar government to launch bidding Eni, BP and round at Africa Oil Week 2018 NOC to
OMNIS, IN PARTNERSHIP explore in with Africa Oil Week, TGS and BGP, will launch a licensing Libya round during the Africa Oil Week conference, which runs ENI HAS ACQUIRED 42.5 per from 5-9 November 2018. cent stake and become operator Paul Sinclair, conference of three of BP’s Libyan oil director, said, “On top of the 15 exploration areas to restart confirmed ministers who will exploration activities and fast- lead delegations to Africa Oil track to production. Week, we now have a partnership National Oil Corporation
with the government of Image Credit: YUEN YAN/fLICKR (NOC) chairman Mustafa Madagascar, TGS and BGP to Will Madagascar be the next big African offshore market? Sanalla, BP group chief executive host what is clearly one of the Bob Dudley, and Eni CEO most exciting rounds on the OMNIS will be inviting environment for exploration in Claudio Descalzi signed a Letter continent since Côte d`Ivoire investment from interested the offshore,” Voahangy Nirina of Intent (LOI) in London. The bidding round in 2017.” parties, during a licensing round Radarson, general manager of LOI boosts the parties’ “With the aim of intensifying to start in November 2018. We OMNIS commented. commitment to social impact offshore exploration activities, we are working together with TGS initiatives, including education are delighted to announce that and BGP to create an attractive www.africa-oilweek.com and technical training. S02 ORA 5 2018 News 01_ORA Master Template - 2016 New 18/10/2018 15:22 Page 7 S02 ORA 5 2018 News 01_ORA Master Template - 2016 New 18/10/2018 15:22 Page 8
8 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
NCDMB partners Dangote Refinery on local Fugro and content implementation Jagal join
NIGERIAN CONTENT forces in DEVELOPMENT and Monitoring Board (NCDMB) has Nigeria declared its intention to partner with Dangote Petroleum Refinery FUGRO HAS ANNOUNCED a and Petrochemical Free Trade new venture which aims to Zone Enterprises (DPRP) on the stimulate business development effective implementation of the in Nigeria’s marine industry with local content policy. a new agreement with Jagal, an The director, monitoring and established Nigerian corporation evaluation, NCDMB, Akintunde that operates leading energy Adelana, who represented the businesses and manages a diverse
board’s executive secretary, Simbi Image Credit: Dangote portfolio of investments. Wabote, made this disclosure NCDMB and Dangote representatives at the Lekki refinery. As a 100 per cent Nigerian during the DPRP Nigerian entity the new venture, Fugro Content Sensitisation/Awareness country. We consider this as a Wabote described the Local Marine Nigeria Limited has plans Creation Programme, entitled: very important project and we Content Act as the quantum of to optimise marine site “Let’s Walk the Nigerian Content are willing to partner with the composite value added to, or characterisation and asset Talk Together,” at Lekki Free company to ensure full created in the Nigerian economy integrity services in the country. Trade Zone, Lagos. implementation of the local by a systematic development of Fugro has a long history of Adelana said, “The Dangote content policy. We embarked on capacity through the utilisation of supporting the offshore oil and Refinery project is expected to this journey with the company a Nigerian human, material gas and marine construction close a major gap in the supply of long time ago and we are ready to resources and services in the oil sectors in Nigeria, and is a petroleum products in the partner with the Dangote Group.” and gas industry. specialist in deepwater operations. “The new business will leverage the strengths of both Aker Solutions offer brownfield services for parties to undertake large, integrated marine site BP’s Angolan operations characterisation projects and asset integrity programmes,” said AKER SOLUTIONS, AN Oslo- Angola. The scope of work at each field. This includes Peter Boon, business based oil services company, has includes the supply of support for upgrades to process, development manager of Fugro received a five-year agreement to engineering, procurement, and chemical and marine support for Africa. supply brownfield modifications, construction services for systems, as well as the “Jagal’s commitment to high maintenance and operations brownfield projects on the refurbishment of old piping standards in health and safety is support for BP's Greater Plutonio floating production, storage and and equipment. aligned with Fugro’s and, along and PSVM fields offshore offloading (FPSO) vessels located Luis Araujo, chief executive with our objective to indigenise officer at Aker Solutions, said, our specialist services into the “We are delighted to support BP local market, this co-operation in Angola, an important market will enhance our support of the for Aker Solutions. We have a offshore energy industry in strong record of successful Nigeria,” Boon added. delivery in Angola, having This is not Jagal’s first joint provided subsea support to key venture in Nigeria. In 2015, Trans projects such as Dalia and Global Projects established a Kaombo. We are now pleased to local company in the West expand this offering to include African country and formed a topside maintenance, partnership with Jagal to modifications and operations predominantly serve clients in services in West Africa.” the oil and gas industry. In For more on oil and gas particular, the joint venture was
Image Credit: Aker Solutions developments southern Africa, established to provide end-to-end Aker Solutions will be providing a wide scope of work for BP in Angola. turn to our cover story on p24. logistical services. S02 ORA 5 2018 News 01_ORA Master Template - 2016 New 18/10/2018 15:22 Page 9 S02 ORA 5 2018 News 01_ORA Master Template - 2016 New 18/10/2018 15:22 Page 10
10 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
Themes of economic development and New sustainability for Nigerian local content forum exploration
“DRIVING ECONOMIC rights in DEVELOPMENT and Sustainability” is the theme for Mozambique the eighth Practical Nigerian Content Forum (PNC), which ENI HAS ACQUIRED new will be held in Yenagoa, Nigeria exploration rights in Mozambique. from 3-6 December. The contract is for the exclusive To ensure the long-term future exploration and development of the PNC, a Memorandum of rights of the offshore block A5-A, Understanding has been signed in the deep waters of the Northern between the Nigerian Content Zambezi Basin, approximately Development and Monitoring 1,500 km north east of Maputo.
Board and CWC Events Africa. Image Credit: Cristiano Zingale (kouam)/Flickr The block extends over an Under the terms of the five- Creating meaningful jobs for Nigerians is a focus of the PNC event. area of 5,133 sq km, at water year MoU, the NCDMB and depths between 300 and 1,800m, CWC will organise the PNC to discuss the current challenges group managing director, NNPC. in a completely unexplored zone Forum with the aim of providing being faced within the market “I look forward to welcoming in front of the town of Angoche. a platform for government and and explore solutions. oil and gas industry players Eni is the operator of Block industry players in the Nigerian This year’s speakers include to what promises to be a useful A5-A Consortium, with a oil and gas sector to deliberate on HE Henry Seriake Dickson, and impactful gathering,” participating share of 59.5 per how Nigerian Content can executive governor of Bayelsa said Eng Simbi Wabote, cent owned by its subsidiary Eni unlock discovered potential. State, Dr Emmanuel Ibe executive secretary, Nigerian Mozambico. Other partners are The PNC Forum will provide Kachikwu, Nigeria’s petroleum Content Development and Sasol, (25.5 per cent), and an opportunity for stakeholders minister, and Dr Maikanti Bari, Monitoring Board. Empresa Nacional de Hidrocarbonetos (15 per cent). Eni has been present in Mozambique since 2006, Unique Group to provide hydrographic survey following the acquisition of a stake in the Petroleum Contract vessel package in South Africa of Area 4, in the offshore Rovuma basin, with an estimated 2,407 THE MARINE AND subsea The project will include As part of the project, Unique billion cubic meters of gas in division of Unique Group, has multiple new-build vessels, a Group will also provide complete place. The Coral development entered into a high-value main vessel and support vessels. integration of the hydrographic programme includes the contract with the Southern Unique Group will act as a equipment package, which will construction of a floating plant African Shipyards to provide a technology partner to the include centralised operations (FLNG). The plant will have a turnkey package for shipyard and provide the vessel’s between the main vessel and liquefaction capacity of hydrographic survey vessels and dynamic positioning systems and smaller support vessels. approximately 3.4 million tons a hydrographic office set-up. navigational equipment package. The hydrographic office set per year. Construction has up onshore will be updated with started in June 2017. Production new computer hardware and the is expected to start in 2022. latest processing software for The Mamba Complex chart production, data collection, development programme processing, reporting and backup includes the construction of an solutions. Unique Group will onshore plant composed by two provide a full package including trains for gas treatment and technical support and relevant liquefaction, with a liquefaction operational and maintenance capacity of 15.2 million tons per training for the staff. year. The project is expected to be sanctioned in 2019 and For more on the latest in production is expected by 2024. hydrocarbon exploration in South
Image Credit: Stuart Rankih/Flickr Africa and neighbouring To read more on Mozambique’s Offshore South Africa could have multiple opportunities for oil and gas. countries, see p24. FLNG success, see p28. S03 ORA 5 2018 News 02_ORA Master Template - 2016 New 18/10/2018 15:28 Page 11 S03 ORA 5 2018 News 02_ORA Master Template - 2016 New 18/10/2018 15:28 Page 12
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WAIPEC sells Petrochemicals set to be the largest driver of out three global oil demand: IEA
months in PETROCHEMICALS WILL SURPASS cars, trucks and advance aviation in future oil demand growth, according to a study THE THIRD WEST African by the International Energy International Petroleum Agency (IEA). Exhibition and Conference They are expected to account (WAIPEC 2019) has officially for more than a third of the sold out, three months ahead of global oil demand growth to its opening date in January 2019 2030, and almost half the growth and will now take the whole of to 2050, adding almost 7mbpd. Image Credit: Charles Rondeau the Eko Convention Hall, to meet They are poised to consume an Demand remains high for petrochemical products such as plastics. the new demand for extra additional 56bcm of natural gas exhibition space. by 2030 and 83bcm by 2050. receives far less attention than it on future energy trends. In fact, Hosted by the Petroleum Dr Fatih Birol, IEA’s executive deserves. Petrochemicals are one our analysis shows they will have Technology Association of director, said, “Our economies of the key blind spots in the a greater influence on the future Nigeria (PETAN), the event is are heavily dependent on global energy debate, especially of oil demand than cars, trucks focused on forging partnerships petrochemicals, but the sector given the influence they will exert and aviation.” between national oil companies and private companies from the whole of Sub Saharan Africa. Oranto Petroleum launches schools Major regional stakeholders as well as leading E&P firms and construction project in South Sudan partners will be keen to develop and drive new business across the ORANTO PETROLEUM HAS with Oranto’s policy to engage Oranto’s engagement to invest in petroleum sector. completed the award of a contract local content in all its activities in social infrastructure in all areas Next year’s event will feature for the construction of two South Sudan. where we operate in Africa,” saidd in excess of 25 technical and primary schools to be located in The construction of the Prince Arthur Eze, founder and strategic conference sessions. Yirol and Rumbek, two schools signals a value addition to executive chairman of Oranto. At the last event, organisers communities located in central South Sudanese citizens from “Oil has to benefit all citizens and welcomed more than 6,000 South Sudan and northwest of their oil and gas as championed education is key to development. visitors, more than 500 delegates, Juba. Estimated in excess of by Oranto, against the backdrop We are only going to see true 300 participating companies and US$800,000, the schools project of peace initiatives by the South peace and development in Africa more than 80 experts. will be executed by local Sudanese government. when we leave no child behind construction company Dynamic “The construction of these and continue to invest in our www.waipec.com Supplies and Construction, in line two schools is a reflection of human resources.” S03 ORA 5 2018 News 02_ORA Master Template - 2016 New 18/10/2018 15:28 Page 13 S03 ORA 5 2018 News 02_ORA Master Template - 2016 New 18/10/2018 15:28 Page 14
14 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
Clontarf moves ahead with Angolan oil and gas body Ghana exploration project under pressure from IMF
CLONTARF ENERGY, OIL our satisfaction,” said a statement AGAINST A BACKDROP producer and explorer, has released by the company in of the International announced that all outstanding October. After a period of slow Monetary Fund forecasting issues have been resolved with progress, Ghana's current NPP 2.3 per cent growth for Ghana’s state oil company GNPC Government has galvanised the Angola, the country’s new on Tano 2A Block. The dispute licensing effort. The Oil and Gas Authority is dates back to 2008 when an administration is pro- under press ure to move agreement involving the Pan development, and actively ahead quickly with plans to Adrean Consortou, in which reviewing historic Petroleum break up the oil industry Petrel Resources, a Ghanaian Agreements, with a stated focus monopoly of Sonangol, the company which now holds a 30 on early exploration, discoveries national oil company. Image Credit: IMF Head of the IMF, Christine LaGarde, per cent stake, and Clontarf, and output. During 2018 the The IMF has called on which holds a 60 per cent stake, Ghanaian Ministry of Energy and the new authority to be was never ratified by the GNPC. the Ghanaian National Petroleum transparent and follow the The matter was settled out of Commission considered the best practices of Morocco and Senegal’s offshore markets to help atract court in 2014 and the final current re-application by Pan investment and maximise opportunities. agreement has now been reached. Andean Resources Ltd (30 per Offshore blocks 15 and 17 are mature projects but investment is still The statement added: “The cent Petrel, 60 per cent Clontarf, needed to extend the life of these operations. BP, Chevron, Eni, signed petroleum agreement is 10 per cent local interests) over ExxonMobil, Statoil and Total are already involved. now being sent to the Cabinet. the original Tano 2A licence All legal proceedings have been block acreage in the prospective To read more about the emerging and established markets of southern dropped and all issues resolved to Tano Basin, West Africa.” Africa, see p24. S03 ORA 5 2018 News 02_ORA Master Template - 2016 New 18/10/2018 15:28 Page 15
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Big 5 Board Awards return to Egypt’s petroleum sector to honour industry leaders benefit from ITFC financing
THE BIG 5 BOARD Awards, proceedings and the awards will The signing of the final organised by the Africa Petroleum be presented by Woodside, the agreement in Cairo. Club, return to London this year corporate club patron. to honour industry leaders and After the awards ceremony, raise funds for African wildlife there will be a keynote speaker, conservation projects with a followed by an address from the charity auction. guest of honour, Baroness Lynda The awards include Chalker on Africa’s wildlife war. Distinguished Individual Baroness Chalker is involved in Contribution to the African numerous conservation initiatives
Industry; Corporate Contribution in Africa. The event will conclude Image Credit: ITFC to African Petroleum & with a charity auction and a THE INTERNATIONAL ISLAMIC Trade Finance Corporation (ITFC) Excellence; Best Independent networking reception. It will be has signed two new Agreements with the Egyptian government Player In Africa; Best African held on Thursday 22 November at represented by the Egyptian General Petroleum Corporation (EGPC) National Oil Company; Best the Royal Institution. and the General Authority for Supply Commodities (GASC). Service & Supply Company; and The agreement was initially signed in January 2018, with the the special award for Africa's Oil For more information about objective to finance the importation of commodities, including Legend 2018. sponsorship opportunities and to petroleum, petroleum products and gas. Between 1985 and 2007, the Gayle Meikle, president of book places at the event, log on to Islamic Development Bank approved around US$1.675 billion for Egypt, Africa Petroleum Club, will open www.africa-petroleumclub.com mostly to finance the importation of petroleum and refined petroleum. S04 ORA 5 2018 News 03_ORA Master Template - 2016 New 18/10/2018 16:05 Page 16
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Saipem inks offshore E&C BHGE and AFRC partner up contract for Congo for manufacturing challenges SAIPEM HAS SIGNED new Stefano Porcari, chief operating offshore E&C contracts for the officer of Saipem’s E&C Offshore THE UNIVERSITY Republic of Congo, as well as the Division, commented: “These new OF Strathclyde’s growing hydrocarbons market of offshore contracts confirm Advanced Forming Azerbaijan and the established Saipem’s success in achieving its Research Centre North Sea region. strategy aimed at consolidating its (AFRC) and Baker Through its subsidiary leadership in traditional markets, Hughes, a GE company Boscongo SA, Saipem has been such as SURF, Conventional and (BHGE), have joined awarded a Modification, Pipelines, as well as at diversifying forces to explore how Maintenance and Operations its business in non-oil capex some of the latest (MMO) contract by Eni Congo segments, such as the advanced SA for the provision of modifications/maintenance/ manufacturing tools maintenance services, operations market.” and processes can drive modifications and improvements “The SURF contract, in more efficient, smarter on all Eni Congo offshore sites in particular, confirms the ways to reduce cost and BHGE Credit: Image the Republic of Congo over a 36- importance of Azerbaijan, where increase productivity The partnership aims to push the limits of manufacturing for oil and gas. month period. we have been working with across BHGE’s The scope of work includes continuity for several years, operations. on-site maintenance activities, bringing our expertise to create an BHGE will work with the AFRC’s team of engineers and researchers such as troubleshooting, planned enduring and fruitful relationship to improve its manufacturing processes and delivery of services. Using and unplanned maintenance as in the country as well as its expertise and state-of-the-art equipment, the AFRC will help BHGE well as the supply of spare parts, contributing and consolidating our identify opportunities to cut costs and cycle time, while extending the materials and workshop activities local content endeavour,” he lifespan of oilfield equipment required for operations in increasingly at Boscongo yard (Pointe Noire). added. high temperature and extreme pressure environments.
S04 ORA 5 2018 News 03_ORA Master Template - 2016 New 18/10/2018 16:05 Page 17
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18 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
Nigeria’s information minister says Dangote oil refinery is on schedule with a 2020 production goal
DESPITE ONGOING MEDIA progress of construction, and the reports about the pace of company has issued a statement progress of the construction of about its commitment to hiring the Dangote oil refinery in the returnee engineers who have Lekki Free Trade Zone, Lai been training in India at the Mohammed, Nigeria’s Bharat Petroleum Company. information minister, has told The company’s director of Reuters that he expects human capital management and production to start at the refinery project support, Mohan Kumar, around 2020. Aliko Dangote, one said the company is laying a solid of Africa’s richest men, has foundation for take off with the secured more than US$4.5bn in Image Credit: Dangote training of the engineers. They debt financing for the refinery are recruited and trained to project which costs up to Aliko Dangote discussing the importance of free trade for Africa. witness the building of the US$14bn. refinery from scratch. He said the “When one looks at the it’s working (round) the clock to told Reuters in London. Since the engineers spent two months in money which has been raised ensure that the refinery becomes refinery project was announced, classroom training and three from private funds, banks, it can’t operational in 2020 or Mr Dangote has been months undertaking on-the-job afford to miss the deadline and thereabouts,” Mr Mohammed consistently optimistic about the training.
Cormorant-1 well plugged and abandoned
TULLOW OIL HAS announced that the into the prospectivity of the Group’s Namibian Cormorant-1 exploration well in the PEL-37 acreage in PEL-37 and PEL-30. In a statement, licence, offshore Namibia, encountered non- Tullow said that expenditure on the well is commercial hydrocarbons and the well is expected to be in the region of US$5mn. being plugged and abandoned. “The Cormorant-1 frontier exploration The well was drilled to a total depth of well was a bold attempt to open a new oil play 3,855 metres. Sandstones were encountered in this area of Tullow’s offshore Namibia but these proved to be water-bearing. Wet gas acreage,” said Angus McCoss, Tullow’s signatures, indicative of oil, were encountered exploration director. “While this is not the in the overlying shale section. Important outcome that we had hoped for, the efficiency
geological data has been gained from this well, Image Credit: Tullow of our drilling and our risk management and, in combination with high quality 3D processes resulted in a low financial exposure The abandonment of Cormorant-1 has been a seismic data, will provide valuable insights learning experience. to this well." S04 ORA 5 2018 News 03_ORA Master Template - 2016 New 18/10/2018 16:05 Page 19 S04 ORA 5 2018 News 03_ORA Master Template - 2016 New 18/10/2018 16:05 Page 20
20 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
No BP Egypt asset acquisition New Age finds gas and oil in deal for SDX Energy Cameroon’s Etinde field
SDX ENERGY, WHICH focuses terminated by mutual NEW AGE (African on North African oil and gas agreement.” Glocal Energy) has projects, has announced that He described the announced the successful talks to buy some of BP’s abandonment of the deal as completion of an appraisal Egyptian assets have been “disappointing”. An update from programme in Cameroon’s abandoned. It had been reported SDX said that the company Etinde field with proven earlier this year that BP was on continues, in line with its stated hydrocarbon discoveries. the hunt for buyers for a stake in strategy, to review and pursue The US$55mn two- its Egyptian oil and gas business, inorganic growth opportunities well appraisal programme which was estimated to be worth across its areas of operations in commenced in May 2018, around US$500mn. North Africa. with the drilling of well
SDX has requested the “It was an exciting IM-6, which successfully Image Credit: CIFOR/Flickr restoration of trading on AIM opportunity but ... we are appraised the Intra Isongo Discoveries could be a boon for Cameroon. and the TSX Venture Exchange. screening potential deals section of the field, In a statement, SDX chief all of the time and we know establishing a lower gas water contact and adding an additional 150-250 executive Paul Welch said, that there will be others that will bcf of wet gas resources. The second well, IE-4, was targeted 2.8 km “Discussions regarding its serve to fast track our stated goal north west of the discovered IE field, adding resources down dip of the proposed acquisition of a to be a North Africa-focused proven IE-3 hydrocarbon contact. Reservoir horizons came in on significant package of assets in (E&P company) of scale,” Mr prognosis, and a 12-metre interval of the well was tested at a flow rate of Egypt from BP have been Welch added. 17.1 mmscftg/d and 8780 bopd on a 56/64’’ inch choke. S04 ORA 5 2018 News 03_ORA Master Template - 2016 New 19/10/2018 10:28 Page 21 S04 ORA 5 2018 News 03_ORA Master Template - 2016 New 18/10/2018 16:05 Page 22
22 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
Morocco and Egypt offer exciting gas Eco Atlantic prospects according to SDX gets PEL 30
PAUL WELCH, CEO of SDX, green light in addressed the Africa Energy World Upstream summer Namibia reception on the company’s Moroccan and Egyptian plans. ECO ATLANTIC OIL & Gas has In his opening address, Richard received the final Environmental Norris, oil and gas adviser, Clearance Certificate to drill an Helios Partners, focused on exploration well on the PEL 30
opportunities in Mozambique, Image Credit: CucombreLibre/Flickr block from the Namibia Ministry Tanzania, Kenya, Uganda, Egypt, Gas can contribute to development in Morocco and Egypt. of Environment and Tourism. Equatorial Guinea and South The company has completed Africa, saying the gas focus for operation is high volume for a Mr Welch as a “simple business” seven years of exploration on the Africa is largely domestic and growing gas market, while the with the gas needing “little to no Cooper Block, including regional can to “lift people out of Moroccan operation is low treatment,” no royalties paid to geological studies, fracture poverty”. volume for an under-served gas the Moroccan government analysis, slick studies, the review Mr Welch talked about the market. SDX's South Disouq thanks to a 10-year tax holiday, and interpretation of 5,000 km2 prospects SDX has in North field in Egypt has five wells of low drilling costs, and a pipeline of 2D and an 1,100 km2 3D Africa, particularly Egypt and which four have been successful, capable of 24m cf/day currently Survey. In addition to its own Morocco, saying the operations potential is at 2tcf, drilling costs transporting 6m cf/day. The ongoing interpretation, Eco has in the two countries had “very are low and fiscal terms are potential 50 bscf of gas would be contracted independent studies different characteristics and “moderate,” with Mr Welch “laughable in most parts of the from Petroleum Geo-Services, potential for very different saying SDX is “optimistic about world” but should prove to be Azinam, Tullow Oil and reasons.” Both prospects are decent returns.” Meanwhile, the boon to SDX and Morocco, he Gustavson Associates. onshore but the Egyptian Moroccan field was described by told the audience at the event. Eco and its partners have identified the Osprey prospect on the Cooper Block within a sand filled channel and fan system in Total and Sonatrach boost partnership for the Cretaceous sequence. The prospect is estimated to contain Algerian gas and petrochemicals 882mn barrels of oil equivalent. The licence partners continue to SONATRACH AND TOTAL TFT Sud permit; and a Total is a long-standing partner. contribute their own analysis and have signed two agreements to shareholder agreement to create Sonatrach (51 per cent) and Total work towards determining an strengthen their comprehensive STEP (Sonatrach Total (49 per cent) will develop the exact location for the drilling of partnership, which was first Entreprise Polymères), a reserves of Erg Issouane located an exploration well on Osprey. announced in 2017. The two petrochemoicals joint venture. on the TFT Sud permit estimated “We are pleased with our agreements are a new concession The TFT Sud permit is at more than 100 million boe. work to date on the Cooper Block contract to develop the Erg located south of the Tin Fouyé Meanwhile, STEP will be and appreciate the detailed Issouane gas field located on the Tabankort (TFT) field, of which responsible for carrying out a analysis it has received both joint petrochemical project in internally and with our industry Arzew, western Algeria. The partners,” said Colin Kinley, Eco project includes a propane Atlantic’s chief operating officer. dehydrogenation unit and a “We purposely have shared our polypropylene production unit interpretation with our partners with an output capacity of and industry experts to gather all 550,000 tons per year. The two the regional learnings as partners are planning to start the exploration matures in this basin. front-end engineering and With the final environmental design (FEED) from November. certificates now in place we This project will allow to valorise anticipate moving shortly to propane by transforming it selection of drilling location, rig into polypropylene, a plastic contract discussions and
Image Credit: Polycart/Flickr for which demand is engineering planning for a well in Polypropylene, a thermosetting plastic, has a wide variety of uses. growing strongly. Q3 2019 or Q1 2020.” S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 23 S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 24
24 SOUTHERN AFRICA ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
SOUTHERN AFRICAN EXPLORATION: A NEW FRONTIER
Economist Moin Siddiqi examines the potential oil and gas riches across the emerging markets of southern Africa in this special report.
The South Atlantic Ocean, seen here off the coast of Namibia may have great oil potential. Image Credit: Stuart rankin/Flickr
HE SOURCE OF potential riches of southern International oil companies independents to develop and commercial discoveries or Africa’s deep-waters (southern (IOCs) have fared well in Africa, exploit these resources effectively. hotspots are evolving tier) have yet to be unravelled, off thanks to the licensing of acreage Between two ‘proven’ Tacross Africa. Over the last South Africa and Namibia. and mergers and acquisitions hydrocarbons countries (Angola two decades, reserves additions (M&As). These companies with and Mozambique) lie Namibia were driven mainly by offshore strong operating capabilities and and South Africa with promising Angola and Nigeria, along with South Africa’s capital have moved into the new, offshore acreage. The geological onshore finds in Niger, Chad and geological technically complex frontiers of formations of Southern Africa are Sudan, as well as offshore gas in deep/ultra-deepwater oil and dominated by ancient sediments, Egypt. Production of deepwater formations are unchartered countries in research underlaid by basement. There are oil continues to grow in the Gulf dominated by for recoverable oil and gas evidence of oil-prone source of Guinea, while new-resource reserves and new production. rocks, reservoirs and subsalt development in ancient sediments Africa's South Atlantic coast potential in the largely Senegal/Mauritania maritime with evidence of may hold an untapped underexplored southern tier. borders and East Africa in oil-prone source oil-resource base – tentatively These new prospects may prolific Rovuma basin are estimated at 75bn barrels, plus prove attractive to investors, expected to become the other rocks” 26bn barrels of shale oil, thus particularly with Angola main engines for growth. The making it vital for majors and currently requiring an oil price of S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 25
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM SOUTHERN AFRICA 25
US$82 a barrel to balance its budget, according to an EnergyWise report.
The break-up of South Atlantic basins Recent re-processed seismic Image Credit: EnergyWise images of Jurassic-Early Cretaceous formations can be used as analogues for future exploration activity in Namibia and South Africa. The Paraná- Etendeka LIP erupted roughly 130mn years ago during the rifting of Gondwana super- continent, which saw Africa, South America and other southern landmasses breaking- up. Since LIP was formed before Africa and South America had fully rifted, rocks of the Paraná- Etendeka are, today, bisected by the Atlantic Ocean, with one portion located in Namibia (Etendeka section) and the other A chart which demonstrates the oil price required to balance the budget for a range of OPEC members, including Angola. in South America (Paraná section). years ago. Namibia can also point (Japan). Namibia has yet to was granted an environmental The South Atlantic was to the success of Angola monetise gas reserves, though authorisation for exploration separated in Late Jurassic along (northern neighbour), with opportunities exist in power drilling. However, the major is the Agulhas-Falkland Fracture proven reserves of 9.5bn barrels generation and exports in the probably years off from Zone (AFFZ). Earth’s history and output (1.63mn bpd) in form of floating liquefied natural confirming any ‘proven’ oil- shows Outeniqua basin (SA) is a 2017, Africa’s second largest after gas (FLNG), which makes resources (90 per cent certainty conjugate margin of the Falkland Nigeria. smaller finds commercially viable of being produced) under Plateau (offshore Argentina) The supermajors (Shell, like Golar’s Hilli Episeyo 1.2mn existing economic conditions where explorers recently reported ExxonMobil, Total), Portugal’s tonnes/year facility operated by with today’s technology. discoveries of one billion barrels Galp, Tullow Oil and India’s state- Perenco (France) off Cameroon. The Outeniqua basin, situated of recoverable oil reserves in owned ONGC Videsh Ltd are There is also a minor potential off the south coast, is relatively North Falklands basin in the among those holding interests in for shale gas in Namibia. unexplored, but a considered south-western corner of the offshore blocks. Canadian-based Major offshore areas in South prospective by UK-based South American plate. Eco Atlantic plans drilling a well Africa (SA) are Orange and Spectrum, seismic data- on its Osprey prospect in the Outeniqua basins. The former processing co. This area consists Prospective areas Walvis basin, where it is reckoned near Namibia is believed to be of Bredasdorp, Pletmos, Gamtoos Namibian coast prospects could to contain about 700mn barrels gas/oil prone, although modest and Algoa sub-basins in shallow be on par with the North Sea or oil-resources. exploration activity has occurred water and Southern Outeniqua Gulf of Mexico – with estimated Other independents like UK’s in deepwater area. In 2015, Shell sub-basin, which is deep-water reserves of 11bn barrels Chariot Oil & Gas, Impact Oil & extension of those shallow water identified in mid-2012, Gas and Pancontinental Oil & sub-basins. similarities to Angolan and Gas (Australia) are also farming Namibia’s The northeast-southwest Brazilian plays. These estimates in, excited by the involvement of offshore prospects trending Agulhas-Falkland refer to ‘probable’ reserves supermajors in Namibian blocks. Fracture Zone (AFFZ) that was (50 per cent recovery certainty) Namibia's largest offshore could be on par developed during the South or ‘possible’ reserves (10 per cent gasfield is Kudu discovered in with the North Sea Atlantic Break-up bound the recovery certainty). 1974 by Chevron in the Orange basin. The fracture zone runs Four main offshore basins are basin containing proved reserves or the Gulf of from Durban (up the NE Luderitz, Namibe, Orange and of 1.3 trillion cubic feet (Tcf); Mexico, with Kudu coastline of South Africa) to Walvis. All share geological nine Tcf potential. The field’s as the largest Argentina. There are some 300 characteristics with the South operator is Tullow in partnership offshore wells in SA. American littoral, with which with National Petroleum Corp of offshore gasfield” The country’s largest they were adjacent some 150mn Namibia (Namcor) and Itochu undeveloped gasfield is Ibhubesi S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 26 S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 27
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM SOUTHERN AFRICA 27
Gas, in particular, can help with southern African energy security, such as the Avon Peaking Power plant in South Africa. Image Credit:
owned by local-based Sunbird and Collingham formations hold reduce fuel imports, while now," noted Wood Mackenzie (the operator) and PetroSA 211; 96; and 82 Tcf, respectively. diversifying the ‘energy mix’ via (WoodMac), UK’s energy located in Orange basin. It holds Shale thickness matches replacing coal in electricity consultancy. This leaves frontier 540bn cu ft of recoverable North American plays, but supply with gas-fired power acreage such as Southern Africa reserves, plus 4.3mn barrels of geologic complexity, some land plants, thus lowering (CO2) levels in a difficult position. IOCs eager condensate (very light oil). ownership issues and in power generation. to boost revenues could divert The operator aims to reach a environmental concerns upstream capital spending away natural gas supply agreement with regarding water usage and Competitive edge from minor green areas towards Eskom (national utility) and to fracking have delayed Those under-explored countries proven blocks in Gulf of Guinea begin production by 2020 to exploitation of SA’s shale gas should offer IOCs more attractive in west Africa. replace some of South Africa’s (unlike in the US). Hydraulic fiscal terms – aimed at fostering However, if a country is unable diesel-fired power stations. The fracturing techniques are competition for natural to boast a massive find – then environmental authorisation for deployed to extract shale gas resources, greater efficiency in stable regulatory climate is equally Ibhubesi project was granted in and/or increase oil flow by upstream sector and building as crucial as lower costs. IOCs 2017. Major crude discoveries to changing the nature of the sustainable production investing in frontier acreage date in the Bredasdorp sub-basin underlying rock strata. capabilities. But persuading IOCs expect better deals from are Oribi (1990) and Sable (1989) Still at preliminary stages, to fund exploration in high-risk governments than established – each contains 50mn barrels of however, energy opportunity has unproven blocks is hard because countries, notably Angola and recoverable reserves. Appraisal attracted Shell, Total, of volatile oil-prices and cost- Nigeria with lower upstream risks. wells reported the thin, water ExxonMobil and Chevron – latter factors. “Incremental drilling, For example, the terms on saturated sandstones in Oribi in partnership with Falcon near-field drilling, appraisal or Guinea Bissau licenses were offshore oilfield owned by Soekor. (Australia), which holds 7.5mn just de-bottlenecking existing adjusted to include more acres of exploration permit in developments is where they are at favourable arrangements for New energy prospect southern Karoo. Petroleum deep-water investment, including Development of onshore shale Agency South Africa (PASA) lower production royalty rates gas resources (world’s eighth approved shale gas development Under- payable to the state. Explorers largest) in SA beneath the Karoo in early 2017. explored countries prefer dealing with efficient, un- basin (covering 300,000-km) can A 2012 report by Ed Reed bureaucratic National Oil provide cheap feedstock for “Setting Sights on SA Shale” should offer more Companies. residential and industrial sectors noted that large-scale attractive fiscal In sum, WoodMac believes which are currently reliant exploitation could boost ‘frontier areas’ notably Australia, heavily on coal and short of economic growth. The report terms aimed at Alaska, the Brazilian Equatorial liquid fuels. The US Energy estimated that 1.4 trillion cubic fostering Margin, Gambia, Namibia, Information Administration metres of gas could be produced, competition for Senegal and South Africa hold (EIA) estimated technically adding an average of 200bn rand the greatest potential for recoverable shale gas at 390 tcf, of per year to SA economy. natural resources” hydrocarbons discoveries in the which Whitehill, Prince Albert Furthermore, shale gas will help medium-term. S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 28
28 FLNG ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
A WORLD-FIRST FOR FLNG FINANCING IN MOZAMBIQUE
Paul Eardley-Taylor, head of Oil & Gas Southern Africa, Standard Bank explains how the world’s first FLNG financing project – the largest-ever venture of this type for Africa – came to fruition.
TANDARD BANK, WITH an on-the- ground presence in 20 African Scountries, has an established oil and gas practice which serves relationships and executes transactions across the upstream, midstream and downstream sectors. Africa started early in LNG, with Algeria exporting its first cargo to the UK in 1964. But, until 2017, despite its established position in upstream oil and gas, Africa had operational plants in only four countries: Algeria, Angola, Equatorial Guinea and Nigeria, with two plants in Egypt idle due to insufficient gas supplies. An artist’s impression of the Coral This position is rapidly South FLNG vessel, the world’s changing, with multiple onshore fourth-largest FLNG project. and Floating LNG (FLNG) projects under development, as Image Credit: Eni well as Floating Storage operation and under largest single commercial new FLNG technology was Regasification Units (FSRUs) in development. One of the most lender; onshore account bank chosen for development. exciting of these is Coral FLNG. and security trustee; and was the Coral FLNG is only the fourth Coral FLNG, with a debt size only African lender to the FLNG project globally after Africa’s gas of US$4.7bn, marks Africa’s project. The bulk of the Petronas’s Satu, Shell’s Prelude largest-ever project financing and financing was contributed by and Cameroon’s Hilli Episeyo supply issues are the world’s first FLNG project export credit agencies (ECAs) (none project financed). A rapidly changing financing. The project is led and including BPI, KEXIM, Ksure, consortium consisting of operated by ENI with a 25 per Sace and Sinosure (ECAs being TechnipFMC, JGC and Samsung with multiple cent holding, ExxonMobil farmed a mainstay of global LNG Heavy Industries was selected as onshore and into Area 4 block last year with financing). EPCIC contractors. FLNG projects in 25 per cent, all taken from ENI. Coral South is a field located The FLNG ship is under The remaining stakes are held by within Area 4, which includes construction in South Korea and operation and CNPC (20 per cent), Kogas (10 the Coral North and Mamba scheduled to reach the under per cent), Galp Energia (10 per fields. Coral South is separate Mozambican shores around 2021 cent) and ENH (10 per cent). from the other fields and furthest to ensure commissioning in mid- development” Within the transaction from the shore. This distance is a 2022. Coral FLNG will produce financing, Standard Bank was the major reason why the relatively 3.4 MTPA output to be S05 ORA 5 2018 Cover Story_ORA Master Template - 2016 New 18/10/2018 15:41 Page 29
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM 29 Image Credit: Standard Bank
Paul Eardley-Taylor from Standard Bank.
exclusively sold to BP. The performance risk of the Coral upstream part of the project is 100 South field. per cent equity funded and the The Area 4 shareholders are liquefaction part project financed generally seen as strong entities, through $US4.7bn on a 60:40 debt able to provide the customary equity ratio. completion support seen in LNG The project used multi- debt financings. The government sourced project financing from of Mozambique showed five export credit agencies and 16 commitment to the project by banks. Due to the scale of LNG establishing the necessary projects (and their multi-sourced regulatory regimes and timely participation), project financing project approvals. Underlying all is typically used to fund LNG the Rovuma Basin’s current and liquefaction projects. The ring- future LNG export projects is the fenced nature of project financing 2014 Decree Law, which was means a very secure offtake is passed following the completion required to ensure the project can and public dissemination of a service its debt. macroeconomic study for area For Coral FLNG, BP will take one prepared by Standard Bank. 100 per cent of output but noting It is a great achievement for the project (and therefore the Mozambique that it was able to lenders) will naturally take the execute the Coral FLNG project even during an ongoing sovereign default. The project As well as being an important standalone project, the significance used multi- of Coral is that its documentation is sourced project likely to be a major influence on the financing from five pending onshore LNG financings of Area 1 and 4, which together export credit may require the raising of US$30bn agencies and debt in 2019 as part of US$50bn of final investments, which will 16 banks” transform Mozambique into a leading LNG player. S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 19/10/2018 10:32 Page 30
30 NIGERIA ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
OPTIMISTIC OUTLOOK FOR REFINING CAPACITY IN NIGERIA
Between 2018 and 2022, Nigeria will be the growth engine of the refining industry in the Middle East and Africa, according to Global Data. Despite another delay to the Petroleum Industry Bill (PIB), investment remains buoyant. Georgia Lewis reports.
CCORDING TO A report by Global Data, Refining Industry Outlook in Middle East and Africa to 2022, the AMiddle East and Africa will account for 42.6 per cent of the total global refining capacity. The total refining capacity in the region is expected to increase from 15.5 million barrels per day (mbd) in 2018 to 21.7 mbd in 2022. And Nigeria is predicted by Global Data’s analysts to lead the way in terms of capex for refining projects – new build capex spending for the entire region is estimated at US$215.3bn and Nigeria is expected to lead the way with 25 per cent of this being spent in the West African country by 2022. Optimism abounds in Nigeria with the country planning investment of around US$54.8bn for refining capacity additions of almost 2mn barrels per day (mbd) by 2022. In tandem, Nigeria’s oil refining capacity is expected to increase from 446 mbd in 2017 to 2,572 mbd in 2022 at an Average Annual Growth rate (AAGR) of 35 per cent. Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, explains, “Nigeria is increasing its
crude oil refining capacity as it aims to Image Credit: Global Data become a net exporter of petroleum products, A comparison of refining capacity for leading oil refining countries across Africa and the Middle East. instead of being a mere net exporter of crude oil. The increase in refining capacity will also consumption of petroleum products.” back to the National Assembly. Reuters help the country to meet growing domestic The investment in Nigerian refining reported that this is because of multiple appears to be unhindered by the latest delay to issues, including the section's clause to the passage of the Petroleum Industry Bill reduce the power of the president and oil Nigeria is planning (PIB), which was passed by both houses of minister to oversee and award oil licences and investment of around parliament earlier this year. contracts. The section of the bill has The bill fell at the final hurdle in August provisions for a regulatory body to take 10 per US$54.8bn for refining with President Muhammadu Buhari refusing cent of oil revenues, rather than these capacity additions of to give his assent to the bill in its current form. revenues gong to federal, state and local almost 2mn barrels per According to a statement from the governments. Ita Enang, an official of the executive, the president, who is also the presidency, said that the increased remit of an day by 2022” country's oil minister, sent the Petroleum oil fund could lead to conflicts in Industry Governance section of the PIB interpretation and a lack of clarity. S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 18/10/2018 15:53 Page 31 S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 18/10/2018 15:53 Page 32
32 SOUTH AFRICA ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
DEVELOPING HYDROCARBONS FOR THE FUTURE IN SOUTH AFRICA
Petroleum Agency SA is optimistic about multiple offshore exploration projects in South African waters, with the aim of achieving energy security and a more diverse energy mix.
ETROLEUM AGENCY SA is South Africa’s state- owned company Pestablished through a Ministerial Directive in 1999. The Mineral and Petroleum Resources Development Act came into operation on the 1st May 2004 and in terms of this Act, the agency received its mandate to operate. The agency is responsible for the promotion and regulation of exploration and development of South Africa’s oil and gas resources. There is an excellent case to be made for investment in South Africa’s burgeoning oil and gas Agency SAImage Credit: Petroleu,m exploration and production sector, South Africa is working hard to meet its long-term energy needs with ambitious offshore programmes. with shale gas representing a major opportunity. By facilitating Previous challenges affecting The demand for energy has water and ultra-deep water of the process of attracting qualified investment decisions, such as the surpassed supply, and the southern Orange Basin. international explorers to invest low oil price and the uncertainty alternative energy sources are There is continued interest in in the oil and gas sector, we can introduced by the MPRDA being sought to deal with the the ultra-deepwater of the further grow the South African amendment bill, are now a thing of ever-growing demand. northern sector. The deep water economy and contribute to the the past. The oil price has recently Petroleum Agency SA, together of the southern offshore, soon aims of the National Development made a dramatic recovery, while with the Council for Geoscience to be tested by Total, holds Plan 2030. The plan envisages that the MPRDA amendment bill has (CGS) and the Department of exciting potential for large by 2030 South Africa will have an been withdrawn from Parliament. Mineral Resources (DMR) is oil reserves. adequate supply of electricity and Both President Ramaphosa and conducting extensive studies Oil and gas remain the most liquid fuels to ensure that Minister Matashe have explained into South Africa’s potential critical of energy resources, and economic activity and welfare are oil and gas exploration will be shale gas resources. Natural gas Petroleum Agency SA is in full not disrupted, and that at least 95 governed by separate legislation, has been discovered off the west support of those entering the per cent of the population will and no longer grouped under coast of South Africa in the South African oil and gas have access to grid or off-grid general mining legislation. South Atlantic Ocean (Ibhubesi gas exploration and production electricity. Both the National Africa is on the brink of major field) and off the southern coast industries. The agency is fully Development Plan and the developments in the upstream in the Indian Ocean (F-A, E-m committed to ensuring that our Integrated Resource Plan call for industry and the next few years and other fields of the government and policy-makers natural gas to contribute a far will be vital in determining its Bredasdorp Basin). Both areas sustain the sector for the benefit greater percentage to South future energy profile and how oil have great potential. of all involved and will do Africa’s primary energy and gas contribute to the greater Other operations of interest everything in its power to supply mix. energy mix. include exploration of the deep advance the industry. S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 18/10/2018 15:53 Page 33 S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 18/10/2018 15:53 Page 34
34 INTERVIEW ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
PRIDE AND PASSION FOR NIGERIAN DEVELOPMENT
Dr Amy Jadesimi, CEO of Ladol, talked to Oil Review Africa about her unique career path from medical school to the Nigerian oil and gas industry. By Georgia Lewis.
R AMY JADESIMI, CEO of Ladol, started her career path away from Dthe oil and gas industry: “I had the opportunity to go and study medicine at Oxford - it is a six-year course and there were a lot of opportunities to explore different aspects of the medical field.” She was going to intern for a female surgeon after graduating but she was offered a job with Goldman Sachs. The surgeon told her to take the position with the investment bank and kept the medical opportunity open for her, but Dr Jadesimi stayed with Goldman Sachs for three years and then went on to attain an MBA.
Her medical training and Image Credit: Ladol experience in investment Dr Amy Jadesimi is optimistic about the future of Ladol and proud of the company’s achievements so far. banking gave her a good grounding for her work with across all of the company’s wider Nigerian economy. development represent “a new Ladol - from the “zero work/life operations, such as engineers, “He was a man of great type of infrastructure which is balance” to the involvement with designers and fabricators. integrity,” she said. sustainable”. In particular, Dr “a diverse range of people” Her two grandfathers - one of Meanwhile, her paternal Jadesimi is proud of Ladol whom was an industrialist and grandfather was “a deeply spiritual achieving ISO:9001 certification. politician and the other of whom man” who lived all over Nigeria, She said this is the culmination My maternal was an Anglican bishop - are connecting with people at all of hard work by all members grandfather’s cited by Dr Jadesimi as two of her levels of society. Dr Jadesimi recalls of staff and it is very important greatest mentors. Her maternal wonderful memories of “these in terms of helping Ladol scale example of grandfather, tragically two people at the dinner table”, as up and have credibility on a sustainable assassinated in before she was well as her own parents, who she global level. born, was an industrial pioneer describes as “both brilliant”. “It is important to celebrate industry with a who founded a leather goods Since taking over as CEO of the small victories as well as the strong local content factory. She says his example of Ladol, Dr Jadesimi says there big wins,” she said. “It is an all- focus was an sustainable industry with a strong are achievements, great and encompassing job but I love focus on local content was not small of which she is very proud. what I do.” inspiration for me” only an inspiration for her but She told Oil Review Africa that should also be an example for the the free zone and port www.ladol.com S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 18/10/2018 15:53 Page 35 S06 ORA 5 2018 Nigeria update_ORA Master Template - 2016 New 18/10/2018 15:53 Page 36
36 WOMEN ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
THE RISE AND RISE OF WOMEN IN NIGERIAN OIL AND GAS
Women are increasingly being appointed to more and more senior roles in the Nigerian hydrocarbons industry. Oil Review Africa managing editor, Georgia Lewis, reflects on this powerful and important trend.
N NIGERIA, LOCAL content is important, particularly in the oil and gas industry. It is Iabout ensuring that meaningful jobs are created for Nigerians, reducing the reliance on expatriates and investing in training so that skills can be passed on. In particular, Nigerian women are stepping up to the plate in senior roles across Nigerian energy companies. The signs are promising for even more women to come on board in the Nigerian oil and gas industry with more women studying and taking up careers in
STEM (science, technology, Bank Nigeria/FlickrImage Credit: World engineering and mathematics) Encouraging girls to finish their education and study STEM subjects is essential for the Nigerian oil and gas industry. fields. When the Association of Professional Women Engineers of Ladol. The Nigerian Council promoting women in the oil and has more than 16 years’ legal of Nigeria (APWEN) was formed of the Society of Petroleum gas industry not only in Nigeria practice experience in the in 1982, there were only six Engineers is playing its part with but from the entire continent. Nigerian oil and gas industry and members. Today, that programmes to develop women This year’s event will focus on the is a partner in ACAS-Law, a organisation is more than 1,500- in the industry, and ensure need to mainstream women in leading law firm. strong. Meanwhile, African gender in the society’s energy and develop blueprints for It is only through continued Sisters in STEM, a non- membership and among capacity building and gender promotion and encouragement government organisation aimed industry leaders. equality. Every year, the event for girls and young women to at attracting Nigerian girls to Africa Oil Week, of which Oil honours women at all career complete their education, study STEM fields, has given more Review Africa is a media partner, levels in the African oil and gas STEM subjects and learn about than 500 students free training has a well-established tradition of industry. At the 2016 event, the career opportunities in these in areas relating to energy, Damilola Owolabi, then aged just fields, that the representation of computer programming 25, was honoured with the Global women in the oil and gas and physics. Nigerian Women Petroleum & Energy industry will continue to grow in Low numbers of women women are Club Award for Africa for her Nigeria and beyond. As Donna participating in the oil and gas work as CEO of Dreg Waters Shodipo herself said in her industry is not unique to Nigeria stepping up to the Petroleum & Logistics. statement of personal motivation: – on a global level women are plate in senior roles Meanwhile, at the 2017 event, “Above all, I intend to replicate under-represented – but more across Nigerian Donna Shodipo was honoured myself as much as I can. I intend role models are now coming for contribution to oil and gas, to change lives one thought at a through and they are visible, energy companies.” giving an inspiring address to the time through words, leaving a such as Dr Amy Jadesimi, CEO women’s luncheon. Ms Shodipo legacy for generations to come." S07 ORA 5 2018 Asset optimisation_ORA Master Template - 2016 New 18/10/2018 15:37 Page 37 S07 ORA 5 2018 Asset optimisation_ORA Master Template - 2016 New 18/10/2018 15:37 Page 38
38 RIG MANAGEMENT ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM Image Credit: Stena
Stena and Drilling Systems have integrated staff training into rig reactivation.
HOW A NEW TRAINING APPROACH CAN GET RIGS BACK TO WORK
As the oil and gas industry picks up in Africa and beyond, a revolutionary training approach is helping Stena Drilling prepare its personnel for faster, smoother and safer rig reactivations and operations.
TENA DRILLING HAS DrillMax and Stena IceMax. Systems and together developed could never be replicated on the teamed up with advanced Stuart Greer, operations a three phased approach to job. Because the functions and simulator developer and manager at Stena Drilling preparing our drilling and lifting graphics are very Smanufacturer, Drilling explains: “The Stena Don had teams. We used Drilling Systems’ representational of the actual Systems to combine competency been in a warm stack situation mobile OTR simulator, which Cyberbase system, crew assessment and coaching in-the- from November 2016 with can be located on the rig itself members gain experience and field with the On-The-Rig reduced crews. After securing a and realistically mirrors drilling confidence and are better (OTR) simulator for the first time major contract, we needed to and well control operations, prepared for the real thing. to prepare drilling and lifting reactivate the rig in March 2018 alongside individual coaching “As the OTR system can also crews for rig start-ups and and had new personnel joining sessions. This meant the crew be operated without an ongoing operations. some of the existing Stena Don could familiarise themselves with instructor, we are keeping it in- The approach of conducting crew. Quality, safety and well control situations and situ to enable continuous training realistic, rig-specific simulated performance are our top procedures, as well as and development for the crew. exercises and tailored coaching to priority so we wanted to ensure operational running of This project has helped us test fill competency gaps at the work all of our personnel were fully equipment in a controlled, safe and verify our crews’ skill levels site is the first of its kind for the competent and able to cope with environment. We were also able in a safe, fast and highly effective oil and gas industry. Following its any eventuality. to test a wider range of high risk way and gives our clients success on the reactivation of “We approached Drilling operational scenarios which assurance that we are operating at Stena Drilling’s semi- the highest levels of safety and submersible, the Stena Don, competency. Due to the success Stena Drilling has signed a The project has helped us verify our of the Stena Don project we will framework agreement with crews’ skills in a safe, fast and highly now be using the same approach Drilling Systems to roll out this effective way, assuring the highest levels on other rigs as they are brought approach to three of Stena back into use.” Drilling’s ultra-deep water of safety and competence” drillships: Stena Forth, Stand www.drillingsystems.com S07 ORA 5 2018 Asset optimisation_ORA Master Template - 2016 New 18/10/2018 15:37 Page 39 S07 ORA 5 2018 Asset optimisation_ORA Master Template - 2016 New 18/10/2018 15:37 Page 40
40 CORROSION PREVENTION ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
CORROSION CONTROL FOR OIL AND GAS OPERATORS
Syed Kamran Ali, from Industrial Skyworks, writes about the different types of corrosion that impact on oil and gas assets and the importance of inspections to ensure small problems do not become serious risks.
HE GREAT ITALIAN An aerial inspection is a safe, effective writer and poet Eugenio way to spot corrosion. Montale, recipient of the T1975 Nobel Prize in Literature, was very true in saying: “Man cannot produce a single work without the assistance of the slow, assiduous, corrosive worm of thought.” Inevitably every engineering work in physical form has to be assiduously protected from environmental and process corrosion starting from the day it is installed. For high value assets designed for long life operations, protection against corrosion is extremely important.
Corrosion is caused inside as Image Credit: Maerak Driling/Flickr well as outside of piping, pipe under Insulation and Fireproofing) and NACE TM0194-2014 (Field and/or reinforcement. fittings, pipelines, tanks and and DNV-RP-C101 (Allowable Monitoring of Bacterial Growth Pitting corrosion: Random vessels. Crude oil and raw gas Thickness Diminution for Hull in Oil and Gas Systems). scattered corrosion spots/areas from the wellhead contain Structure of Offshore Ships). Offshore structures require with local material reductions. impurities, carbon dioxide, water Usually two approaches are used. special attention of designers as The intensity of the pitting must and toxic gases all of which are The first approach involves well as operators. DNV GL first be estimated before applying corrosive in nature and cause incorporating for corrosion provides safety and sustainability criteria. Typically, repairs will internal corrosion of piping. allowance in the design wall advice to energy industries in the include renewal of plates, External corrosion is caused by thickness of the vessel, pipe or form of classification, technical building up pits by welding. environmental impact and is a structure, and the second one is assurance, software and variable gamechanger for those to use corrosion inhibitors. independent expert advice. DNV- Grooving corrosion: Local line companies operating in marine NACE International provides RP-C101 discusses types of material loss normally adjacent to environments. Corrosion control globally recognised standards corrosion in offshore structures: welding joints along abutting for offshore structures requires that are responsive to the latest stiffeners and at stiffener or plate critical corrosion control changes in products and General Corrosion: Where butts or seams. Due to the methods and techniques that will technology, and whose uniform reductions of material complexity and effects of groove prolong structural life while implementation streamlines are found, criteria for minimum corrosion, diminution criteria are saving millions in cost. processes and trims costs. The thickness of hull structural limited and special repair International standards life of premium assets can be elements may be applied in considerations are needed. organisations have identified lengthened by following standards order to determine average measures to counter and minimise such as NACE SP0108-2008 diminution values. Typically, Edges corrosion: Local material the effects of this phenomenon, (Corrosion Control of Offshore repairs will include steel wastage at the free edges of plates such as API – RP 583 (Corrosion Structures by Protective Coatings) replacement to original scantlings and stiffeners. Typically, if not S07 ORA 5 2018 Asset optimisation_ORA Master Template - 2016 New 18/10/2018 15:37 Page 41
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM CORROSION PREVENTION 41
renewed, repairs may be carried may not be recognised until the insulated components, the area leads to imposition of heavy out by means of edge component starts leaking. thermal signature on a portion of fines and damage recovery suits. stiffeners/doublers. LNG steel tanks require pipeline or vessel is identified to Oil spills from a storage tank or High resolution cameras regular inspection for bottom be different from the rest of the transport pipeline leakage may mounted on drones are handy grouting between the outer pipeline or vessel – an indication damage the environment. for detecting the above stated bottom footer plate and the ring of anomaly and possible Drone-based inspection forms of corrosion. Corrosion is wall for any evidence of leakage corrosion. By installing IRT surveys can provide resources not limited to mild steel or corrosion, for anchor straps sensors on drones it is possible to affordably. The drones are structures and piping. LNG for corrosion at the concrete ring inspect those areas of the equipped with high resolution facilities, which are primarily wall / platform interface, and for refinery or processing plant visual cameras and IR cameras to stainless steel and high alloy frost spots on the outer surfaces, which are not easily accessible identify surface corrosion in materials, the cryogenic process as these would indicate a loss of otherwise. In the absence of difficult or dangerous areas, as causes large variations of insulation performance in the scheduled NDT inspections the well as CUI detection under temperature (thermal cycles) annular space. Infrared imaging condition of piping and fitting is API – RP 583 through IRT. thus inducing stresses related to of the tank would detect this largely unknown. It is a must in Drone-based inspection expansion, contraction, bending condition and this can be easily today’s business environment to solutions provide improved and fatigue (expansion and carried out through drone watch out for corrosion. Most results in prevention as well as contraction cycles). Additionally mounted IR cameras. rupture and leakage incidents in containment of a catastrophe corrosion becomes a serious Surface corrosion can be Oil & Gas industry are related to while preventing the additional concern with the passage of time easily detected but Corrosion metal loss as a result of risk of deploying personnel which includes pitting corrosion Under Insulation (CUI) is corrosion, mechanical creep for data gathering in dangerous as well as stress corrosion difficult. Use of IRT (InfraRed over time or mechanical environments. cracking. The subtle danger with Thermography) and capturing damage caused by external or stainless steel is that the corrosion multi-spectral images of internal factors. Neglect in this info.industrialskyworks.com S07 ORA 5 2018 Asset optimisation_ORA Master Template - 2016 New 18/10/2018 15:37 Page 42
42 ASSET OPTIMISATION ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
OPTIMISING FPSO ASSETS IS A PATHWAY TO REVENUE GROWTH
Ron Beck, director of industry marketing, oil and gas, for Aspen Technology writes about how operators with floating assets can speed up revenue and first oil or gas.
CLEAR DIFFERENTIATOR incentive for the FPSO contractor for best-in-class upstream to optimise performance. The companies is the speed to costs would be borne by the revenue from newly contractor, while the benefits A Image Credit: Eni/Flickr approved asset development would, in many of the programmes. Eni has made a contracting arrangements in disruptive change in their place today, flow to the owner. exploration and production I spoke with the relevant team strategy, as Eni’s chief exploration at one of the asset owner officer, Luca Betelli, explained at companies that manages the CERAWeek 2018. They have assets that are produced through aggressively moved to employing FPSO contracts. There is a clear big data and advanced analytics recognition of the opportunity to to dramatically reduce the typical Offshore Cape Three Points is a successful FPSO project for Eni. improve hydrocarbon time to first oil or gas from five production, and therefore years to just 27 months. rapidly maturing floating I’ve had opportunities to meet revenue and profit, through Eni and other mega energy production storage and with leading FPSO designer- optimisation of the asset and firms can achieve this by offloading (FPSO) model. By supplier companies over the past reliability improvements. managing and “controlling” all commissioning FPSOs, asset year. Many of those organisations However, it requires revisiting aspects of the exploration, owners can take advantage of employ AspenTech’s performance existing long-term contracts. appraisal and development more modular and repeatable engineering solution set for It is crystal clear that this is an process. Eni keeps many of the design approaches than those design and construction of area in which senior executive details of their upstream digital employed in conventional FPSOs. I’ve been interested in attention is needed. To my mind, transformation process close to platform-based or on-land working with those organisations there is an obvious payoff to the chest. On the other hand, production. This avoids lengthy to extend use of this design everyone if the three parties – the ExxonMobil, engaged in the early permitting processes involved in technology into the asset asset owner, the production stages of development of the constructing production optimisation and asset facility contractor/operator and Rovuma LNG project in infrastructure onshore. performance management area. the optimisation technology Mozambique, has shared some of A typical contracting There are some important supplier – can work together to its groundbreaking approaches to approach for FPSOs and similar opportunities to use these tools, design a business and technical shrinking time and cost to first floating production facilities is to as well as companion ones, across solution that provides risk- gas, making two detailed outsource not only the detailed the asset lifecycle, improving the reward balance between the presentations on its approach at design and construction, but also uptime and yield of FPSO parties and improved asset the AspenTech OPTIMIZE™ 2017 the operation of these facilities. equipment and systems, as well as performance and reliability – conference in Houston, Texas. In that model, the big open improving the dollar yield to the and, ultimately, additional So, the industry’s mega firms questions are how to incentivise asset owner. revenues for both the asset owner are making some amazing strides the FPSO-contracted operator to This is an area of strong (through increased crude/gas in improving the economics of maximise equipment reliability interest at the senior executive revenue) and the contractor asset plays. But what about and uptime, and provide level of these FPSO organisations. (through incentives to achieve everyone else? One of the feedback data on equipment and However, the contracts put in that optimisation). appealing approaches to process performance to improve place by their clients (the asset developing remote assets is the the next design process. owners) rarely give a strong www.aspentech.com S08 ORA 5 2018 Fire prevention_ORA Master Template - 2016 New 19/10/2018 10:34 Page 43
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM SAFETY 43
FIRE-SAFE MATERIALS IN THE PETROLEUM INDUSTRY
Fire-safe materials, and the use of materials with good reaction-to-fire properties, constitute an important barrier to prevent small fires from starting and developing with serious consequences. Anne Steen-Hansen and Karolina Storesund from Bloomsbury Fire Security explain.
Prevention is always better than deploying emergency services. Image Credit: Pixabay.com
ONSEQUENCES OF A stresses the need for continued properties. This list of test installations in the North Sea. We fire in the petroleum efforts to increase the safety and methods has not been updated in help the parties to meet the industry can be very large. to focus on the barriers that many years, it contains several regulations, and to maintain a CFires on offshore facilities prevent escalating events. The outdated methods, and several of satisfactory level of fire safety. It can start in several types of right choice of materials in the references do not set criteria is up to operators to determine equipment and sites. An analysis components, construction and for approval of products. which documentation they will of the 985 fires registered in the furnishing is an important barrier RISE Fire Research AS require for different products, Norwegian Petroleum Safety to prevent the fires from starting, (former SINTEF NBL AS and SP based on requirements given in Authority’s database between and prevent small fires from Fire Research AS) published the facilities regulations and the 1997 and 2014 showed that developing into larger fires that recommendations about how to NORSOK-standards. We have approximately 67 per cent of the will be difficult to control. The interpret the regulations and developed guidelines and incidents were registered as fires HSE regulations in the Norwegian other specifications (e.g. the recommendations for appropriate or explosions that did not involve petroleum sector are primarily NORSOK standards) in 2008, fire safety documentation hydrocarbons. About one-third performance-based. The materials which have been frequently used requirements for materials of the fires happened in the used on the Norwegian within the industry. These covering various products and ancillary systems, which cover a continental shelf must meet the recommendations for testing and applications within the industry. wide range of functions. Six of fire safety requirements given in documentation are now updated. The recommendations are based the 985 events were categorised the facilities regulations. These They include references to new on an assessment of the fire risks with the highest severity level, regulations give requirements to and updated test standards and in different areas of offshore with a great potential for serious the performance of materials are published in English. The installations, combined with our accident or fatalities – three of and the related guidance recommendations can also be knowledge of materials’ reaction- those occurred at offshore documents describe acceptable useful for other industrial to-fire properties, as well as facilities. Sixty-six of the fires methods for documentation of applications of combustible knowledge of how selected test took place in living quarters. reaction-to-fire properties. materials all over the world, both methods can be used sensibly. This shows that serious The facilities regulations for on and offshore plants. incidents related to fires do not describe important principles in RISE Fire Research AS is in The report “Recommendations for occur very often. However, some the selection of materials in or on close dialogue with industry and the documentation of the of the reported incidents could plants, and the guidelines specify suppliers about the reaction-to-fire properties of have developed into fires with which test methods should be documentation, test methods and materials offshore” can be disastrous consequences. This used to document the fire criteria to be used for downloaded at risefr.no S08 ORA 5 2018 Fire prevention_ORA Master Template - 2016 New 18/10/2018 15:34 Page 44 S08 ORA 5 2018 Fire prevention_ORA Master Template - 2016 New 19/10/2018 10:35 Page 45
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM SAFETY 45
IMPROVED REGULATORY COMPLIANCE BOOSTS WORKPLACE SAFETY
The offshore industry has a duty of care to the environment as well as the safety of its crew. Lee Clarke at Dynama assesses the current regulatory environment and outlines a three-point plan to educate staff and meet ever-stricter regulations.
HE 2010 DEEPWATER specialist skills required. With Horizon disaster in the a virtual central library of Gulf of Mexico was a huge accurate staff records at your Twake-up call to the fingertips, it’s easy to track offshore industry. It resulted in Image Credit: Skitterphoto what training each member of stricter regulation to reduce staff has had, when certificates major accidents related to oil and expire and to identify then fill gas operations and vastly improve any gaps that come up with health and safety for staff. meaningful training. Dynama’s experience of 6 Most organisations have a working with customers suggests skills matrix but to maximise that many organisations have its full potential, it should be learnt from the tragedies of the integrated into planning and past. Crew are encouraged to live scheduling processes at the and breathe safety, even in terms click of a button. This ensures of simple actions such as which that the right crew are side of the gangway staff walk on assigned to the right projects, or holding the handrail when and skills gaps are forecast taking the stairs. Many ahead of time. companies now record and 6 Combine the benefits of one monitor every health and safety Safety has to become a priority for oil and gas workers at every level of central workforce planning incident including if someone the organisation. solution with a sound drops a spanner on their foot or communications strategy to hits their head on a beam. regulators have a great deal of their responsibilities should be. keep staff informed of the The effects of major health influence. The main challenges Secondly, the emphasis should be latest regulatory changes as and safety incidents go beyond include the international nature on encouraging a joined-up they happen. All too often, lost lives: they have a devastating of the industry which makes approach to health, safety and the offshore projects on barges at impact on the environment. Just management of crew and environment by introducing a sea can become black boxes. as health and safety became a resources difficult. Often a robust set of processes for all to Avoid this by encouraging serious issue following divergent set of personnel (on the follow. Finally, these processes constant synchronisation of Deepwater Horizon, the payroll and contractors) along should be wrapped up with planning and crewing changes. environment has today become a with the vessels and complex automated technology to reduce Acknowledge you can’t always do hot topic and priority for many machinery they operate are the administrative burden, it yourself. Take up the offshore organisations, scattered on-and-offshore, in improve accuracy and aid professional services and work heightened, no doubt, by the different continents and in compliance with legislation. with them as an extension of your prominence of issues such as multiple time zones. Additionally, own team. They often have the climate change on the global top talent is scarce and expensive. Three steps to stay proven expertise to maximise, political agenda. To meet stiff regulatory on track adapt and improve planning, As a result, improvements challenges, firstly, all staff need to 6 Track your training – so many whatever the environmental and have been made in the way understand what the regulations organisations waste money on regulatory landscape. atmospheric emissions and are, how they apply to their a blanket approach to training discharges are measured, and individual job roles and what that is totally unsuited to the www.dynama.global S09 ORA 5 2018 Certification_ORA Master Template - 2016 New 19/10/2018 10:38 Page 46 S09 ORA 5 2018 Certification_ORA Master Template - 2016 New 18/10/2018 15:42 Page 47
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM CERTIFICATION 47
BUREAU VERITAS ISSUES NEW GUIDELINES FOR CONVERTING LNG CARRIERS
The notation FSU-LNG provides the specific classification requirements including structure and safety aspects for floating units dedicated to store LNG that are neither designed nor built to transport LNG.
Guidelines for building new floating LNG vessels, as well as conversions, are essential for avoiding potential problems. Image Credit: kees torn/Flickr
UREAU VERITAS HAS candidates for conversion to Bureau Veritas, Marine & dedicated to Floating Storage and issued new and updated floating terminal applications, Offshore said, “With growing Regasification Units. These new notations and guidance to such as FSRU or FSU operations. interest in floating gas notations and guidelines are Bsupport the construction The new conversion terminals, working with further evidence of BV’s and operation of both Floating guidelines provide clear advice to industry stakeholders, we are classification leadership in both Storage and Regasification Units the LNG industry in properly providing the rule framework FSRUs and FSUs.” (FSRUs) and Floating Storage addressing issues that either will and guidance necessary to The first FSRU newbuild, Units (FSUs). or may arise during the develop both FSRU and FSU delivered in 2005, was to BV Interest in FSRUs and FSUs is conversion of LNG carriers into terminals – both for new class; the largest FSRU ever growing. Floating gas terminals FSRUs or FSUs, helping buildings and conversions.” built is MOL’s BV-classed 263,000 offer operational flexibility, shipowners to either avoid or to “Last November, Bureau m3 unit delivered in 2017; reduced timescales – from overcome potential problems. Veritas (BV) published NR645, nearly 40 per cent of the fleet in concept to operation, and cost Matthieu de Tugny, COO, the first rules document fully service is BV class. effectiveness in comparison with Additionally, a broad range of onshore terminals. second party services is provided Additionally, converting The new conversion guidelines by Bureau Veritas including: risk existing LNG carriers offers a fast provide clear advice to the LNG industry assessment and support route to operational availability. including tools for sloshing There are more than 20 LNG to properly address issues that arise analysis, mooring, CFD, hydro- carriers presently in laid-up during conversion of carriers” structural assessments and condition. Many of them are ice/structure interaction. S09 ORA 5 2018 Certification_ORA Master Template - 2016 New 18/10/2018 15:42 Page 48
48 INTERVIEW ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
Prime Atlantic Global OPTIMISM ABOUNDS FOR CUSTODY Instrument’s Bode TRANSFER IN NIGERIA Balogun. Bode Balogun, deputy managing director, Prime Atlantic Global Instruments, tells Oil Review Africa about the company’s major achievements, including being certified by the Department of Petroleum Resources for custody transfer in Nigeria. Image Credit: Prime Atlantic Image Credit: Prime
Tell us about Prime Atlantic Global determining its efficiency. Ultimately, this successful certification, our Endress+Hauser Instruments (PAGI). reduces the maintenance costs. Promass Coriolis Flow Meter was approved PAGI, a subsidiary of Prime Atlantic Limited, On the Shell Bonny and Gbaran terminals, for custody transfer in the Nigerian oil is the official representative of Endress + we performed full resuscitation of their tank and gas industry. Hauser in Nigeria. This relationship was gauging systems and instrument established in 2011 to develop in-country troubleshooting and servicing. Our work in Is the outlook of custody transfer optimistic competence, provide the retail of Bonny is evidence of the increasing in Nigerian oil and gas industry? Endress+Hauser (E+H) products, after-sales confidence that companies have in local The word “custody” refers to the ownership of support, customised solutions, and trainings. capacity because despite the fact that the tank oil or gas. The word “transfer” refers to the Prime Atlantic Limited (PAL) is an gauging equipment was installed by a foreign change of ownership. The seller and the buyer independent, indigenous Nigerian company company, they trusted PAGI to resuscitate both need to know accurately how much oil or that provides services and solutions in the oil their tank gauging systems. gas is being transacted. and gas industry. It was established in 2003 to We commissioned and trained the Nigeria as the sixth largest oil producing effectively build capacity in the industry by operators of the USAN FPSO on E+H country in the world, has the capacity of offering the most comprehensive bouquet of instruments. PAGI is supplying and producing an estimated 2mn bpd priced solutions while subjecting its processes to the commissioning Coriolis Flowmeters for currently at $US81 per barrel. With most stringent global standards. Since 2005, Belema Oil’s custody transfer metering skid on conventional metering accuracy of PAL has established formidable joint ventures their recently acquired FSO. ±0.35 per cent, there is a possible revenue with global industry leaders from Denmark, We commenced a custody transfer, plant variance of ± 7,000 barrels per day amounting France, and the US in the areas of training, efficiency project for First Independent Power to ±US$567,000 per day, which translates to solutions, and services. Endress+Hauser is a Limited’s power generation plants, Omoku, ±US$207m possible revenue or loss per year global provider of instruments and solutions Transamadi, and Afam which includes the for the country. Using our Custody Transfer for industrial process and automation with supply and installation of Coriolis and Vortex Coriolis flowmeters with proven system over 60 years’ experience. Our PAGI engineers flow meters as well as gas chromatographs for accuracy of ± 0.15%, this can be reduced have been trained by Endress+Hauser in quality measurement and analysis of gas at to ± 3,000 barrels per day, valued at Switzerland and are able to immediately attend their gas inlet to the station and their turbines. ±US$243,000, leading to an extra possible to customers’ requests across our region. revenue of ±US$119m per year for the What are some of PAGI’s big country. With producers trying to optimise Tell us about your major projects. achievements? production, the inclusion of accurate custody We worked with Egbin Power, the largest Our main achievement is the certification of transfer metering is a positive step in power generating station in Nigeria. They PAGI’s Endress+Hauser (Promass) Coriolis providing accuracy and transparency in terms were the first to install our custody transfer, Flow Meters for Custody Transfer by the of billing and revenue accountability for the gas metering and analysis solution in-country Department of Petroleum Resources . As a industry and the country as a whole. and did so using our Nigerian engineers from result of this certification, the E+H Coriolis project origination to completion. Mass Flow Meter is the ONLY Coriolis Flow What about capacity building? The end result of the project was a high- Meter approved for use of custody transfer in The objective of PAGI is to provide high-level quality, fully-functional custody transfer the Nigerian oil and gas industry. Its approval services while building capacity locally by metering solution with a gas chromatograph and certification by DPR is evidence of its training more local engineers in the industry for quality metering and analysis at their gas quality, accuracy and the increasing realisation thereby creating opportunities for indigenes to inlet to the station and seven flow metering for the need of accurate and reliable metering. increase expertise, marketability, and standard units for gas turbines. The solution not only This was achieved through an independent of living. PAGI’s in-country trained engineers measures the quantity and quality of gas certification exercise conducted at the NEL have successfully trained over 150 engineers supplied by the gas supplier but also the TUV laboratory, in Kilbride, Scotland and and technicians from Exxon Mobil (USAN), quantity of gas used by each turbine, thereby witnessed by officials of DPR. Following the Total, and Folawiyo Petroleum Company. S09 ORA 5 2018 Certification_ORA Master Template - 2016 New 18/10/2018 15:42 Page 49
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM FLOW MANAGEMENT 49
GOING WITH THE FLOW ON SUBSEA JUMPERS
Xodus regularly performs flow-induced vibration (FIV) assessments of piping systems to understand whether any vibration induced by internal flow is within acceptable levels. Sandy Hutchison, vibration engineering division manager, Xodus Group, explains.
HE INTERNAL FLOW of production simulation) and carried out numerical fluids can give rise to low frequency simulation using CFD which compared excitation of piping, caused by favourably with the measurements.
Tturbulence generated by the flow Image Credit: Xodus An FIV assessment was performed on a disturbances or multiphase flow induced typical subsea flexible jumper with a six inch forces at bends. For example, slugging flow diameter pipe. One end of the jumper is can cause dynamic loading and a change in connected to an oil producing well via an self-weight for subsea jumpers with Xmas tree and the other end to a Flowline End fluctuating bending stresses and Termination. Different operating conditions fatigue damage. were assessed over the production lifetime. At Xodus, initial screening is based on the The ends of the jumper were assumed to be Energy Institute’s Guidelines for the avoidance fully fixed, and entrained mass (including the of vibration induced fatigue failure in process insulation of the jumper and surrounding pipework’ assessment method. This considers water) was included in the FE model. different operating scenarios and gives a Initial screening results for this six inch likelihood of failure (LOF) score. The LOF jumper gave an LOF score of greater than 1.0 is a form of scoring used for screening for certain production years, and the worst purposes and is not an absolute probability LOF score for any year was 2.0. Following the of failure nor an absolute measure of failure. Energy Institute guidelines, a more detailed The calculations are based on simplified FIV analysis was carried out. models to ensure ease of application and are More detailed FIV analysis of this jumper necessarily conservative. involves building an FE model, and In the case of FIV screening for internal performing a modal analysis to assess the Sandy Hutchison, Xodus. pipe flow the calculations are based on the frequency response of the structure. pipe diameter, pipe wall thickness and the The flow regimes and subsequent forcing The full FIV analysis showed that the internal fluid mixture ρU2 value. When functions for these are complex and there is lowest fatigue life is at the welds close to the the LOF is greater than one, the Energy limited understanding of their behaviour. end connectors, where the maximum Institute recommends several actions. One In 2014, a multiphase FIV joint industry predicted peak-to-peak stress is, was 35 of which is for more detailed analysis, and project (JIP) was set up by Xodus Group and MPa. The lowest fatigue life for any this is an area of work that Xodus undertakes TNO. Sponsored by Aker Solutions, BP, production year was 160 years. on behalf of clients. FMC, Lundin, Shell, Statoil, Suncor, and Total, When all the production years were More detailed analysis is performed by the aim of the JIP was to investigate and accumulated, the fatigue life of the jumper employing a combination of finite element understand the forces induced by multiphase exceeded the design life by an order of (FE) methods together with computational flow on piping systems, and generate validation magnitude, and so no further action was fluid dynamics (CFD) and/or empirical data for multiphase CFD to model and required. Although initial screening is a forcing functions. analyse its occurrence on industrial scale useful tool to highlight potential FIV issues, A fatigue life estimate is calculated using a six-inch piping. it should be followed up by more detailed probability density function of stress ranges The JIP took high quality two-phase flow assessment using a technique such as the one based on the two slope method and S-N data induced force measurements on different bend described above. for a particular class of weld. configurations (providing empirical forcing Typically, subsea jumpers transport functions for a range of flow regimes and a Reprinted woth kind permission from multiple fluid phases such as gas, water and oil. strong validation suite for numerical Xodus Group. www.xodusgroup.com S10 ORA 5 2018 Compressors_ORA Master Template - 2016 New 18/10/2018 15:32 Page 50
50 COMPRESSORS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
COMPRESSORS ARE SHAPING AFRICA’S ENERGY FUTURE
Powerful new turbo machinery and compressor technology is helping to boost Africa’s emerging gas producers. Martin Clark explores the latest innovations.
FRICA’S NEWEST OIL and gas producers are showcasing the industry’s Abest compressor technology. One of the most recent fields to come on stream, Ghana’s Offshore Cape Three Points project (OCTP), incorporates Dresser-Rand’s DATUM compressors, driven by Siemens gas turbines. Italian energy major Eni announced the start of gas production from its Sankofa field in the OCTP project at the beginning of July.
Operations in Ghana and Image Credit: BHGE Mozambique are A BHGE compressor in use at Eni East Africa’s Coral South FLNG project. great showcases standard cubic feet per day for at an easier maintenance-friendly aeroderivative gas turbine for the latest in least 15 years, enough to meet modular design. Their goal is to technology and driving its compressor around half of Ghana’s power achieve maximum plant centrifugal compressors. generation needs. efficiency and deliver long-term In addition, it will supply boil- technology for the The two Dresser-Rand economic benefits for Ghana. off gas and booster compressors oil and gas industry” DATUM centrifugal compressors On the other side of the capable of operating at -180°C to – each driven by a Siemens SGT- continent, BHGE is supplying re-liquefy any gas evaporating 400 gas turbine – were delivered compressors to help out of the LNG storage tanks. On The compressors are now at during 2017, and are now sited at Mozambique realise its own gas FLNGs, liquefaction processes work at an onshore receiving Eni’s onshore gas receiving ambitions, a country that has have to handle boil-off gas that facility, providing a vital piece in facility (ORF) near the village of discovered vast amounts of evaporates from stored LNG. It is a jigsaw of great strategic Sanzule. The ORF receives the natural gas offshore in recent innovative work: Coral South is significance for Ghana. OCTP is non-associated gas from the years. This includes involvement the first new-built FLNG facility the only deep offshore non- platform offshore for further in pioneering floating liquefied to be installed in Africa and one associated gas development in compression and injection into natural gas (FLNG) work, also of only a small number in the sub-Saharan Africa entirely the national gas pipeline network. on behalf of Eni and its giant world. Coral South FLNG is destined for domestic As well as delivering high Coral South scheme. BHGE is expected to produce around five consumption. The new field – to efficiency, power and reliability, supplying four turbo- trillion cubic feet of gas during its help guarantee reliable gas the compressor’s benefits include compression trains for mix 25 year lifespan, with start-up supplies – will provide 180 mn reduced noise and emissions, and refrigeration services, using its anticipated in 2022. S10 ORA 5 2018 Compressors_ORA Master Template - 2016 New 18/10/2018 15:32 Page 51
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM OPERATIONS 51
REASSESSING ARTIFICIAL LIFT WITH EVOLVING TECHNOLOGY
Artificial lift methods deployed by the industry continue to evolve with the latest technology and find their way into Africa’s upstream sector. Martin Clark finds out more.
ECHNOLOGIES TO By delivering fewer strokes SUPPORT artificial lift per barrel at a constant velocity, continue to evolve and find the design increases equipment Ttheir way into Africa’s run life, mitigates downhole upstream sector. Typically that failures and decreases deferred has meant the use of a production. mechanical device inside the well, BHGE introduced its such as an electrical submersible Magnefficient permanent magnet pumping (ESP) or velocity string, motor (PMM), which enables or by injecting gas into a well. operators to increase ESP system Image Credit: European Space Agency/Wikimedia Commons Other new technologies efficiency. This, in turn, lowers continue to push for solutions, power requirements and overall such as the continuous belt lifting costs. Traditional ESP transportation method, which motor energy consumption uses an oil absorbing belt to accounts for up to 30 per cent of extract from marginal wells. ESP system efficiency losses. The The end goal is to increase the new motor delivers a higher flow of liquids coming out of the power density, which allows well, which is especially operators to use a smaller motor significant in mature fields where to achieve the same horsepower production starts to wane, or in levels as those achieved with an more complex reservoir systems. induction motor. But artificial lift systems of all Indeed, power systems for shapes and sizes are routinely artificial lift have also begun to common. Of the approximately embrace the trend toward one million oil and gas wells renewable energy. That has producing in the world, roughly The Niger Delta has a multitude of marginal oilfields where artificial lift is essential meant the development of a for optimising oil production. 5 per cent flow naturally, solar-ESP based wellhead system according to Schlumberger, Tchibala 1-HB well this past year. real-time surveillance, for remote wellhead operations in leaving nearly all of the world’s The pump failures temporarily diagnostics, and well and field marginal oilfields. oil and gas production reliant on halted upstream production. optimisation. Weatherford Similarly, the rapid spread of artificial lift operations of one Big industry players like unveiled its new-look Rotaflex digital control and monitoring in kind or another. It is a vital part Schlumberger continue to long-stroke pumping unit that Africa’s energy sector has fuelled of the process in determining innovate in this segment, to both improves artificial-lift efficiency the emergence of ‘intelligent’ overall project economics, improve reliability and bring in challenging applications artificial lift, giving operators full especially in areas such as down costs. As well as new pump including deep, high-volume and exposure to a range of data for Nigeria’s marginal fields. technology, last year high gas-to-liquids wells. optimum performance. Reliability is essential for Schlumberger introduced Lift IQ, The units apply long pump This heightened visibility equipment and designs. In Gabon, an artificial lift management strokes – up to 36.5 feet – that allows operators to get more oil Vaalco Energy had to contend service which collects, transmits, allow more time for fluids to out of a well and, at the same with two ESP breakdowns at its evaluates and interprets data from enter the pump intake before time, reduce pump energy costs Avouma 2-H well and the South wells. This aids with visualisation, being lifted to surface. and equipment breakdown. S10 ORA 5 2018 Compressors_ORA Master Template - 2016 New 18/10/2018 15:32 Page 52
52 INTERVIEW ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
STRENGTH THROUGH LOCAL CONTENT AND DIVERSE PROJECTS
Jude Abalaka, managing director of Tranos Contracting, talks to Oil Review Africa about succeeding in a challenging environment and the importance of meeting Nigerian local content requirements.
How important is meeting What exciting projects do you Nigerian local content have coming up for the rest of requirements to Tranos? 2018 and into 2019 across the As a Nigerian owned and different sectors in which Image Credit: Tranos managed company, Nigerian Tranos operates? content is very important to us. Currently, we have a couple of As a result, meeting the local projects we are working on, content requirements is a key we have the gas generators focus. We have invested which we are developing for the enormously in setting up a telecoms industry. world-class manufacturing and And we have our Eureka fabrication facility, we have product line of switches and invested in training lots of our sockets which we will be Nigerian engineers and launching in a couple of months. technicians and we have been Tranos will be the first Nigerian awarded a Nigerian Content company to carry out the Equipment Certificate to confirm manufacturing of switches and this. We are firm believers in the sockets locally. ability of Nigerians to achieve In addition to these, we are great things when given the also working on some chance, and we are putting things prospective projects involving the in place to make sure we excel design and fabrication of using Nigerian resources. E-Houses for oil and gas companies. What are the biggest success stories for the oil and gas part Jude Abalaka, managing Do you have any corporate of the business? director, Tranos Contracting is social responsibility projects? A big success story was the optimistic about the future. We believe in supporting design, fabrication and testing of things we believe, and one of a subsea pipe casing for Shell these is education. Petroleum Development however need to see these the Nigerian economy, therefore We have, at various times, Company. The clamp was used materialise. We are a diversified a downturn in one sector will not supported educational for the repair of a 48-inch technology company with have too much of an impact on institutions and groups like the damaged pipeline. customers in various sectors of the company as a whole. Mechanical Engineering Department of the University of Are you feeling optimistic Lagos as well as the Lagos State about the economy, and how We are firm believers in the ability of University Engineering did Tranos manage during the Nigerians to achieve great things when Association. We are always on the oil price downturn? given the chance – we make sure we lookout for opportunities to The economy has not been as support learning. good as expected, but there are excel using Nigerian resources” signs of improvement. We www.tranoscontracting.com S10 ORA 5 2018 Compressors_ORA Master Template - 2016 New 18/10/2018 15:32 Page 53
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM LOGISTICS 53
BLOCKCHAIN APPLICATIONS FOR THE OIL AND GAS SUPPLY CHAIN
As blockchain continues to evolve from pilot tests to real-world platforms in 2018, supply chain management is set to be transformed completely by this distributed ledger technology. Laura Brownhill from Eden Scott explains.
LOCKCHAIN – security even without a fully ESSENTIALLY A encrypted system. distributed, digital ledger B– can be used for any Efficiency: Blockchain will exchange, contracts, tracking and provide a platform to classify all payment. It serves as a shared assets in a singular class. It blurs database that eliminates third boundaries between asset classes, parties in transaction processes resulting in cash, energy products and information sharing. As a and other commodities result, technology, inventories, becoming digital assets trading contracts, payments and data is interoperably. More value can be shared directly between parties derived by not restricting activity with encrypted connections. to a single asset class. Blockchain
For the oil and gas industry, Johnson/Flickr5Image Credit: TLC facilitates automated import/ commodity exchanges on Blockchain and cryptocurrency is growing in acceptance. export records and notifications, blockchain can support oil and including triggers for beneficial gas trading between parties announced the creation of a on a blockchain, the other nodes tariff programs, and helps anywhere in the world while blockchain commodity exchange. would note that the data does not prevent manual errors and removing banks, brokerage firms Trading on the blockchain align with their own and redundant efforts. or other intermediaries. platform is expected to begin by disregard it. Thus, blockchain Technological innovation on the end of 2018. Further could increase efficiency and Contracts: The sheer size and the operations side has become application of blockchain transparency of supply chains. volume of contracts and the norm for oil and gas. The technology has been carried out But it involves standardising data transactions for capital projects in same degree of innovation has by Diamond Offshore Drilling, between companies, storing data oil and gas have historically not been adopted for back office who launched their Blockchain cost-effectively and protecting caused significant reconciliation functions as the industry Drilling service – the first confidential information on a and tracking issues among generally has not brought much application of blockchain platform intended to be contractors, sub-contractors, and new digital technology to the technology in the offshore transparent. This raises the suppliers. To reduce the chaos, supply chain, procurement, or drilling industry. This service question of whether it can blockchain enables the creation of finance aspects of the business. drives efficiencies and enables provide transparency for success ‘smart contract’ – a code hosted However, oil and gas operators to reduce the cost of while ensuring more efficient on a blockchain that defines and executives have shown a wider ownership. The Deloitte report data and systemic security. executes the terms of an interest in blockchain. According highlighted four areas to shape agreement. A standardised to a Deloitte Consulting report in the discussion on blockchain in Security: Since every block links contract the supply chain has 2016, 55 per cent of oil and gas oil and gas supply chains. to the one before it and after it, many benefits, such as verification, executives agree that blockchain there is not one central authority visibility, self-execution, clarity of is required to retain a competitive Transparency: Every transaction over the blockchain, which makes agreement terms, fraud protection advantage, while 45 per cent in blockchain is recorded on a it extremely efficient and scalable. and connectivity. Removing third- acknowledge its disruptive block and across multiple copies Storing data in fragments at party supervision and paper-based potential. Last year a number of of the ledger that is distributed multiple sites, rather than contracting cuts costs. oil and gas companies, including over many computers. If any concentrating it one place, raises BP and Royal Dutch Shell, attempts are made to modify data the prospect of enhanced data www.edenscott.com S10 ORA 5 2018 Compressors_ORA Master Template - 2016 New 18/10/2018 15:32 Page 54
54 WAREHOUSING ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
PALLET SHUTTLE SYSTEMS FOR EFFECTIVE WAREHOUSING Wasted space in warehouses can be reduced with new solutions.
OST WAREHOUSE AND logistics system. Drive-in pallet racking with pallets lane and it is instructed from the drivers radio operations have palletised goods stored supported on cantilever arms in dense blocks controlled handset to automatically carry out a on standard adjustable pallet racking set provides high capacity and is used widely where range of functions, these can include lifting Mout with wide aisles. This offers access to stock is relatively slow moving. It requires fork- and carrying pallets into the storage lane, or every individual pallet but can mean that 50 per lift trucks to drive into the storage lanes to bringing them to the front or it can perform cent of the warehouse space is given over to empty deposit or pick up pallets and rear pallets can stock control functions using barcode scanning aisles, which could be used to store product if you only be accessed by lifting out front pallets first. or radio frequency identification (RFID) could only get at it. High density racking systems New pallet shuttle systems have revolutionised Shuttle units can deal with pallet loads up to increase the space available without too great a the operation and value of this type of high 2000kg, operate in -20ᵒc to +40°c, recognise and compromise in product access. density installation. deal with different pallet sizes, and are driven by Stodec Trading Ltd specialises in the design The shuttle unit runs on rails installed maintenance free battery packs. and installation of a range of these high density under the pallet support arms. The fork-lift storage systems including the pallet shuttle truck deposits a shuttle unit into the required www.stodec.co.uk S10 ORA 5 2018 Compressors_ORA Master Template - 2016 New 18/10/2018 15:32 Page 55
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM INTERVIEW 55
EFFICIENT SUPPLY CHAINS ACROSS THE CONTINENT
Paul Alexander, managing director of Storm Procurement, talks to Oil Review Africa about the importance of growing its business in African markets, particularly Angola, Burkina Faso, Nigeria and Ghana.
Why is the African market so international sourcing through important to Storm? our strategically placed offices Our oil and gas team have and warehouses facilities. The extensive experience supporting challenged involved lowering the both onshore and offshore cost of overall supply chain operations throughout Africa. acquisition as quickly as possible, Our clients operate in some of Image Credit: Storm Procurement reducing the costs associated to the most remote locations and we procurement whilst also pride ourselves in being able to ensuring stakeholders still deliver on time, allowing their received a high level of service operations to run smoothly and with no impact to production. efficiently. One of our offices is in The experience of our expert Johannesburg. teams has made this a success. We also are proud of our What we have achieved there – partnerships with the UK Angola and continue to achieve- has Chamber of Commerce and US really allowed Newmont to focus Angola Chamber of Commerce, its services and efficiency both are independent non-profit through-out both of its Ghana organisations promoting business operations as well as add opportunities between Angola enhancements to the supply and the UK and US respectively. chain as they required. Paul Alexander is upbeat about the prospects for Storm Procurement across the African comtinent. Where are the growth markets Do you have any corporate for Storm in Africa? cost savings and increased What have been your biggest social responsibility or charity Our key markets for growth are efficiencies to clients. OnePortal successes in Africa? programmes? oil and gas, construction, and is the name our online integrated We’ve been supplying the Absolutely. In 2016 we began an mining, particularly in Angola, real-time procurement portal Newmont Ghana operation for ongoing sponsorship of two Burkina Faso, Nigeria, and Ghana. which, once fully developed, will more than nine years. Newmont school children in the Akyem Our partnership with Grainger allow clients to search stock, raise looked to us to leverage our Ntronang and Yaayaso Aman and Cromwell as a distributor in quotes and track KPI's. experience, technology and from communities in Ghana. Africa allow us to procure Technology plays a major role in resources to provide a The scholarship programme competitively and internationally our systems and efficiency streamlined supply chain operates primarily in the for local needs, although we are including a dynamic enterprise network with advanced Birim North District where not limited or restricted to resource planning tool. automated systems and the poor make up nearly 20 per vendors in the products that we cent of the population. This procure and supply. is an area where children have Our clients operate in remote little access to education due What role does technology locations and we pride ourselves on to their poverty and there is a play in procurement? shortage of schools. We’re A dedicated Storm Procurement delivering on time so their operations committed to supporting team continuously develops run smoothly” local communities in our advanced technologies, delivering operating regions. S11 ORA 5 2018 Rig Count_ORA Master Template - 2016 New 19/10/2018 15:42 Page 56
56 NEWS ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
AFRICAN RIG COUNT
COUNTRY July 2017 June 2018 July 2018 Annual change
ALGERIA 58 50 45 -13 ANGOLA 2 4 4 +2 CONGO (BRAZZAVILLE) 2 3 3 +1 EQUATORIAL GUINEA 0 0 0 N/A GABON 1 3 4 +3 GHANA 0 1 1 +1 LIBYA 1 1 5 +4 MOZAMBIQUE 1 0 0 -1 NIGERIA 9 13 16 +7 SENEGAL 2 0 0 -2 TUNISIA 0 2 3 +3 Source: BakerHughes
3M launches Gas & Flame Detection product portfolio 3M GAS & FLAME Detection, a new product portfolio under 3M’s personal safety division, has debuted its gas and flame solutions, product breadth and innovative technologies as a unified front.
The new group is formed Image Credit: 3M Gas & Flame Detection from 3M’s 2017 acquisition of Scott Safety and its Detcon, Oldham, Simtronics and GMI businesses. “By unifying our expanded portfolio of brands into 3M Gas & Flame Detection, we’re providing the POG, industrial, 3M Gas & Flame Detection products are designed for hazmat and commercial harsh environments and communities with a single source tough applications. for a broad line of safety equipment, including an applications in hazardous controller also from Oldham, oxide sensor, infrared and optic enhanced offering of gas and locations; it offers reduced recently received certification by solutions for gas and flame flame detection system solutions,” maintenance, improved MTBF, the Canadian Standards detection. said Mel Gerst, senior manager, no interference and stability in Association (CSA). The MX 32 According to the company, 3M Gas & Flame Detection. temperature variations. The can continuously monitor up to when customers require a Within the company, 3M Gas operating principle is based on eight gas detection sensors. customised approach, 3M Gas & & Flame Detection is also the reduction of infrared The products from 3M Gas & Flame Detection’s application continuously expanding and radiation when gas is present. Flame Detection are designed for engineering groups help updating its solutions such as a There is no chemical reaction or harsh environments and are user- customers build the right plan for new infrared sensor for the OLCT modification to the structure of friendly portables with large fixed their unique hazards. A complete 100 detector and CSA certification the HFO molecule. The sensor is selection. They keep personnel product line and industry- of the MX 32 Controller. not damaged by the continuous and plants safe from hazards leading solutions offer quality The Oldham OLCT 100 is a 4- presence of gas or over-exposure thanks to a range of sensing products trusted for the most 20 mA analog gas transmitter of gas. The MX 32, a compact, technology, including electro critical situations. designed for industrial low-profile gas detection chemical, catalytic bead, metal www.3M.com/gasdetection S11 ORA 5 2018 Rig Count_ORA Master Template - 2016 New 22/10/2018 10:11 Page 57
ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM INNOVATIONS 57
Drilling technology to enhance operational efficiency in extended reach drilling
THE FUCHSROHR ALUDRILL pipe helps open up extended reach drilling into some of the world's most challenging multilateral drilling environments. As technology advances, deeper drilling operations in more challenging environments become possible. The latest record depth of almost 15km on Sakhalin island and efforts in Brazil to drill even deeper show a trend toward maximising recovery at existing reservoirs. New drilling depths Tests show that the aluminum alloy pipe could be possible with can deliver up to a 30 per cent reduction in innovative technology. torque and drag in comparison with Image Credit: Otto Fuchs conventional steel pipes. The specially higher buoyancy so contribution of stiffness a significant weight advantage, higher designed aluminum alloy made with copper, to normal force is reduced. elasticity and a smaller bending radius than silicon and other elements offers high tensile Company president Peter Kaufmann says: steel tubing. AluDrill pipes also manage the and torsional strength and an outstanding "FuchsRohr AluDrill pipe can extend the challenging friction forces in dog legs.” strength-to-weight ratio. The material is drilling depths of current installations and lighter than conventional steel pipes and has a prevent cost-intensive upgrades. The pipe has www.otto-fuchs-ds.com
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...... Micropiping S.r.l...... 16 NipeX (Nigerian Petroleum Exchange) ...... 7 Country ...... Signed...... Nynas South Africa ...... 41 Email: ...... Date...... Oldham SAS ...... 9 Send this subscription form by airmail together with cheque payable to: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place London, SW1W 0EX, UK Petroleum Agency SA...... 59 Subscription order can also be placed via the web: www.alaincharles.com Prime Atlantic ...... 17 or email at [email protected] Protea Oil & Gas ...... 29 YOUR JOB TITLE/FUNCTION 04 Industry/Manufacturing Sabin Metal Corporation...... 19 01 Corporate Management 06 Commercial Services SGS Inspection Services Nigeria Ltd...... 31 02 Government Municipal, Public Services 08 Import/Export Agents, Distributors Shree Steel Overseas FZCO...... 12 Executives 10 Commercial Transport Solenta Aviation (Pty) Ltd...... 33 03 General Management 54 Oil & Gas: Exploration, Dirlling and Stodec Trading Ltd ...... 54 04 Technical Management Production Storm Procurement Ltd ...... 20 05 Others, Please specify 64 Oil & Gas: Downstream Processing ...... 74 Oil & Gas: Other, Please specify Tolmann Allied Services Company Ltd ...... 23 YOUR BUSINESS ...... Tranos Contracting Limited ...... 37 01 Government/Public/Diplomatic Services 16 Others, Please specify Transnet Pipes ...... 15 02 Infrastructure ...... Educational/Research Institutes S11 ORA 5 2018 Rig Count_ORA Master Template - 2016 New 18/10/2018 16:23 Page 58
58 INTERVIEW ISSUE 5 2018 • WWW.OILREVIEWAFRICA.COM
NAMIBIA: A NEW HOTBED FOR OIL AND GAS EXPLORATION
A pioneering cryptocurrency firm is calling on global investors to support an oil and gas project that could supply the energy needs of Namibia 25 times over. Samantha Payne talks to the CEO of The Aziza Project.
Will Namibia’s energy needs be met through an ambitious cryptocurrency-
funded project? Image Credit: Waar was Frank?/Flickr was Waar Credit: Image
HE AZIZA PROJECT has set itself an of drilling itself will give them a wealth of ambitious US$60mn target to fund a Trying to embrace additional information." 10-well drilling programme in the leading edge technology Pyke added, "Trying to embrace leading TKalahari desert for its partner, Africa edge technology to raise finance to support a New Energies (ANE). to raise finance to support project like this, is very exciting. The reason ANE holds the rights to the 22,000 sq km this project is very exciting why we are doing it, instead of through asset in Kalahari – roughly the size of Djibouti conventional fundraising, is that it will be – and the company is using state-of-the-art – it is a compelling substantially cheaper and will save money technology to explore the basin at a tenth of investment opportunity.” both for the organisation raising the cash and the cost of traditional methods. the investor in the end. It is a very compelling The concession has a mean net unrisked investment opportunity." prospective resource of 1.6bn barrels of oil, cryptocurrency token is an investment, which "Things are rather dynamic at ANE at the which is estimated to satisfy Namibia's 3.77 TWh is akin to buying a share in a company. moment,” said Stephen Larkin, CEO of ANE. energy consumption and is sufficient to turn Therefore, we need to be compliant with “We are going full steam ahead in expanding the country into an exporter of oil and gas. security and regulation where our issuers and our acreage. We're looking to acquire The plan is that proceeds from the potential investors are based. We are definitely additional blocks in Namibia, expanding our onshore Kalahari asset, which has had more a pioneer and the next six months are going to acreage in South Africa, and are seeking to than 700 oil and gas seeps, would be used to be really critical for us. We will be in Boston in expand into Botswana. We are also currently develop community solar projects via a hybrid the next couple of weeks where there will be a preparing the pre-drilling environmental gas-to-solar strategy. This would start the token event for investors. In an ideal scenario, impact assessment for Namibia as we electrification of Namibia as well as we hope our fundraising activities will be accelerate towards spudding that first well." surrounding countries. completed by Christmas." The common theory is that Namibia's To kickstart the vision, the Aziza Project Once the Aziza Project has raised the offshore basins are likely to be analogous to will be launching a cryptocurrency later this necessary funds, ANE will be ready to start the two oil rich Brazilian basins – the Santos and month and will be visiting the US as its first drilling programme. Campos – when the southern African country port of call to attract would-be investors. "ANE has gathered nine out of 17 layers of was once slotted together with Brazil some CEO Robert Pyke said, "The heart of Aziza, data, which has identified 32 anomalies that hundreds of millions of years ago. To date, a fundraising mechanism, is issuing crypto are likely to be caused by hydrocarbons. Seven however there still has not been any tokens where people can receive the economic of which are regarded as high quality. They commercially viable oil find, but exploration benefits of owning 20 per cent of ANE. Our know where they want to go and the process continues apace and seismic data is promising. S11 ORA 5 2018 Rig Count_ORA Master Template - 2016 New 18/10/2018 16:23 Page 59 S11 ORA 5 2018 Rig Count_ORA Master Template - 2016 New 18/10/2018 16:23 Page 60