Offshore supplement

SPECIAL SUPPLEMENT

OFFSHORESUPPORTING THE AFRICAN OIL AND GAS SECTORS

INFRASTRUCTURE: South Africa gears up for rig repair

E&P UPDATE: Exploration and Produc-tion announcements

EVENTS: Events on the continent discussing Africa Oil

NEWS: Company news and announcements

www.maritimesa.co.za

2 SOUTH AFRICA GEARS UP FOR RIG REPAIR: Î Operation Phakisa is currently driving the Blue Economy in

South Africa. It is a government-led intervention that aims to push a number of key marine sectors for economic develop-ment and job creation. And for the first time the marine engi-neering sector, under the banners of shipbuilding and repair, is receiving significant attention at governmental level.

6 INFOGRAPHIC Î Regional rig usage and contracted fleet

Î ROV statistics

Î OPEC oil reserves

Î African rig operators and managers

8 EXPLORATION & PRODUCTION UPDATES Î Chevron completes subsea engineering feat in Africa

Î Total starts production offshore Angola

Î Sonangol and Cobalt announce agreement

Î Subsea 7 contract offshore Egypt

Î ISS Awarded Paragon offshore project

Î First gas delivery from Mnazi

Î Extension of Mahdia licence

Î Aquatic awarded Moho Nord project

Î Panoro Energy Aje-5 update

Î Erin Energy commences 3D seismic acquisition

12 EVENTS Î OC Africa 2015

Î Gas Competence Seminar

Î Networking breakfasts

Î Offshore East Africa

Î 22nd Africa Oil Week

Î North Africa Oil and Gas Summit

Î Offshore West Africa

14 NEWS & COMPANY UPDATES Î Bowman Gilfillan appointment

Î Cape Armature Winders transformation

Î Environmental Resources Management appointment

Î Coena partnership

Î C&N Petroleum Equipment new products

Î Sunbird Energy operational update

Î Declining oil prices set to wake up African oil industry

Î OPITO training

ADVERTISERS IN THIS SUPPLEMENT Î Nautic Africa

Î Seascape

Î Novamarine

Î Cape Diving

Î C&C Technologies

Î Wartsila

Î Cape Armature Winders

Contents

2 SPECIAL SUPPLEMENT: Supporting the offshore sector

INFRASTRUCTURE Î Gearing up for rig repair

The downturn in the oil price has

perh ps eco e n tion obstacle to investment on the

continent n the continent in this sector, but should not be seen as

a deterrent for gearing up to service this

sector p rticu r n the ght o the potenti cost s ngs on offer s e s the u os or pro oting oc content

e er

h e the e er e o ue Econo remains high on government agendas,

the marine engineering sector seems

to have been relegated to a back seat

str teg es such s A r c s Integr te M r ti e Str teg AIMS Th s esp te ts e t to e er on AIMS s s on to oster ncre se

e th cre tion ro A r c s oce n n se s e e op ng sust n e

thr ng ue econo n secure n en ron ent sust n e nner

The n ustr s our ntens e n h s the potenti to cre te e p o ent s

e s tr n ng opportun ties th the nee ho e er to ccess port c ties and infrastructure, private ventures in

the sector c n e h pere pu c processes that make long term planning

n n est ent r s

An h e ue Econo str teg es necess r e e out se r ng opportun -

ties the sh ng sector se tr e g st te opportun ties go ern nce n

r ti e o n contro the ten to fall short on understanding where

government can step in to assist in the

development of a robust marine engi-

neer ng sector

per tion Ph s

per tion Ph s s current r ng the ue Econo n South A r c It s go ern ent e nter ention th t s to push nu er o e r ne sectors for economic development and job cre-

tion An or the rst ti e the r ne

engineering sector, under the banners

of shipbuilding and repair, is receiving

s gn c nt ention t go ern ent e e

No one e r s nce the unch o the str teg so e progress s e ng e

esp te e sh s n ti e ne e er-es Most not re the n r struc-

ture deliverables expected from Trans-

net N tion Ports Author t TNPA h ch h s h to rr ts o n M r et e n Str teg to the e pect tions o per tion Ph s

In u the TNPA e onstr te the r co t ent to Ph s s construction

or co ence on the ffshore Sup-

p se SS n the port o S nh The supp se s one o three

projects earmarked to develop the port

nto c t to r ct r ne eng neer-ng or ro the offshore n ustr

The c t e the countr s rst e c te n custo se c t sup-

porting offshore o n g s cti ties n s e pecte to e co ss one

Septe er It ser e esse s eng ge n supporting offshore e p or -

tion n pro uction cti ties ong the est n e st co sts o A r c n c -

ng t South A r c n ports or support n og stics ser ces

S nh Port M n ger e ou said the appointed contractor, Basil

e h co ence prep r tor s te est sh ent cti ties ur ng Apr

The SS e est she t the port s ener M nten nce u

Construction or ent n ng the g p o out etres et een the e sting t o u s re ur sh ng one portion o the u n engthen ng the

u etres on e ther s e to cre-

te tot u ength o etres Minor dredging works will provide a

depth of 8 metres alongside the overall

ength o the u s ou

ou s the SS ou pro e se or rece ng e u p ent n ste

ro offshore e p or tion n pro uc-

tion cti ties n pro ng c ties or o ng n sh pp ng o e u p ent

stores, goods, bunkers and drilling

u s

e s TNPA h ppo nte Tr ns c-

tion A sor to pro e report on est pr ctice r et n s s n fferent oper ting o e s or cons er tion

gs or ng off A r c shou e ser ce n A r cIt makes sense for the rigs and offshore vessels operating off the coast of Africa to be serviced by African shipyards. The savings associated with towage or travel to destina-tions outside of the continent should make it an attractive option, but skills, infrastructure and even customs remain challenges to the optimal development of this sector.

The industry is labour intensive and has the po-tential to create employ-ment as well as training opportunities. With the

need, however, to ac-cess port facilities and infrastructure, private

ventures in the sector can be hampered by public

processes that make long term planning and invest-

ment risky.

3SPECIAL SUPPLEMENT: Supporting the offshore sector

“The Transaction Advisor will assist TNPA with the finalisation of Request for Proposal documentation for the ap-

pointment of an operator for the OSSB. This operator will be responsible for pro-

viding infrastructure such as warehous-

ing, workshops, offices, canteen and rest room facilities, as well as equipment such as cranes and other rubber tyred equipment to operate the facility.”

TNPA’s three Operation Phakisa projects to develop Saldanha as a specialist hub for the oil and gas sector are: the OSSB; an rig repair facility at berth 205, with a length of 380m and a depth of 21m to comfortably accommodate two rigs at a time. A new finger jetty in the vicinity of the port’s Mossgas quay will be 500m long with a depth of 8,5m and 12m pockets to accommodate floating docks for vessel building, repairs and mainte-

nance.

These three project are likely to require

an investment of R13.2 billion. Speaking at a SAOGA breakfast in Cape Town, Nico Walters of TNPA confirmed that this funding would need to come from the

private sector. “We will not be invest-ing in those facilities. We want private sector to come forward and tell us how

much of that would they be willing to fund,” he said.

Working together with government and

organisations such as the South African Oil and Gas Alliance (SAOGA), TNPA has initiated the process of identifying pri-vate partners with an appetite to invest. They recently hosted Operation Phakisa workshops in the United Kingdom.

Although also in consultation with local players, Walters highlighted the need for international input, confirming that a number of conferences and exhibi-

tions had been earmarked for further engagement.

“The companies that we are targeting

“The Transaction Advisor will assist TNPA with the finalisation of Re-quest for Proposal documentation for the appointment of an operator for the OSSB. This operator will be responsible for providing infra-structure such as warehousing, workshops, offices, canteen and rest room facilities, as well as equipment such as cranes and other ruber tyred equipment to operate the facility.”

R13.2 bnThe three projects being under-

taken in the Port of Saldanha Bay aimed at creating an attractive port

of choice for the offshore oil and gas sectors are likely to cost in the

region of R13.2 billion.


INFRASTRUCTURE Î Gearing up for rig repair

An alliance of support

Over 200 companies have signed up as members of the South Afri-

can Oil and Gas Alliance and together are able to offer the offshore sector a number of services including:

Fabrication and constructionSubsea modules

Jackets

Topside modules

Steel and pipe work

Tugs and barges

General engineeringMechanical engineering

Electrical engineering

Naval and marine engineering

Chemical and process engineering

Geotechnical Engineering

Repairs and maintenanceRig and ship repair

Class surveys and certification

Scaffolding/rope access

Subsea repairs

OEM equipment: thrusters, engines, drilling

Inspections and testing

Equipment and material supplies

Motors and engines

Pumps and valves

Hydraulic and pneumatic equipment

Instrumentation and controls

Pipes and hoses

Logistics and ships agentsForwarding, clearing and warehousing

Crew changes

Chandling

Stevedoring

Bunkering

Support servicesRecruitment and training

Legal, financial and insurance

SHEQ services

IT support

Salvage

Construction underway at Saldanha Bay Industrial Development ZoneConstruction is underway at Saldanha Bay’s Industrial Development Zone (IDZ),

which is set to position the Western Cape as a rig repair hub.

Alan Winde, Minister of Economic Opportunities, said that enabling oil and gas servicing at Saldanha was central to the drive to grow the sector.

“Focusing specifically on upstream and midstream services such as rig repair, this sector already provides 35 000 formal jobs opportunities in the province. Through Project Khulisa (a Western Cape Government initiative), we have the aspirational goal of adding up to a further 60 000 formal jobs in this sector and increasing its economic contribution up to R3 billion, from its current R1 billion.

Minister Winde said he had requested an update report from the Saldanha Bay Licencing Company on the progress of construction at the IDZ. “Excavations for the various civil engineering services are taking place and trenches for sewer and water

lines are being hollowed out. The roads are being box cut and the site offices, which will be a multi-user facility for contractors and trainers, is set to be completed soon.

“Transnet National Ports Authority has also started construction on its Offshore Sup-

ply Base, which is expected to be commissioned in September next year.”

Minister Winde added that civils works for the upgrade of the Saldanha Bay Waste-

water Treatment Works has commenced. This upgrade will increase the capacity of the Treatment Works.

“We are also seeing healthy interest from the private sector. To date, non-disclosure agreements have been signed with 20 local and international investors.”

are largely companies that would be interested in rig repair and operating an offshore supply base or interested in operating other repair facilities, such as floating docks as well as other land based manufacturing, fabrication opera-

tions,” he said.

“Our view is that SA is in a unique posi-tion and very ably equipped to service the market that we are targeting from an oil and gas perspective,” he added.

Milestones and timelines

Milestones to date include completion of pre-feasibility work such as geotech-

nical and seismic studies, as well as pre-

liminary designs for the establishment of the rig repair facility at Berth 205. Similar studies would be completed by the end of September 2015 for the finger jetty. An Environmental Assess-

ment Practitioner will be appointed to perform baseline and specialist environ-

mental studies by mid July 2015.

TNPA intends to follow a build operate and transfer (BOT) model in establish-

ing these facilities. In terms of the expanded Mossgas finger jetty and the oil rig repair facility at berth 205, the successful bidder will be responsible for

dredging works as well as the wet and

dry infrastructure development.

All three projects will complement the 330 ha Saldanha Bay IDZ which was des-

ignated in 2013 and which is expected to be constructed from August 2015. The Saldanha IDZ will allow operators to import equipment and goods destined for exploration and production activities off-shore in a similar manner as a “free port”.

Roux said that while it was a difficult time in the oil industry, there was still an appetite for the development of a dedicated facility in Saldanha for the oil and gas sector.

“The current economic climate in the oil and gas market may not be conducive to embarking on new exploration projects, but one has to be mindful that the ma-

jority of existing offshore production re-

mains operational. Demand for support of these operations will continue and the lull in exploration activities may in fact provide an opportunity to perform repairs and maintenance to exploration vessels and equipment,” he said.

The port authority expects to have all three projects completed within two to

three years, working alongside strategic partners including the South African government, the South African Oil and Gas Alliance (SAOGA) and the Saldanha Bay IDZ Licencing Company.

“Demand for support of these (offshore) operations will continue and the lull in exploration activities may in fact provide an opportunity to perform repairs and maintenance to exploration vessels and equipment,”

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OFFSHORE facts & figures

Remotely Operated VehiclesThe International Marine Contractors Association’s (IMCA) 2014 survey of remotely operated vehicle (ROV)s, and ROV person-nel reveals that the number of ROV’s in service increased from 3,364 in February 2014 to 3,617 in August of the same year.

3,364 3,617ROV

Number of offshore rigs per region

Rest of S. America and Caribbean

% UTILISATION REGION CONTRACTED TOTAL RIG FLEET

35.8% Gulf of Mexico 77 215

87% North Sea 162 186

39.9% Southeast Asia 65 163

28.2% Far East Asia 46 163

70.5% Persian Gulf 105 149

65% Mexico 65 100

61% Brazil 61 100

60.2% Western Africa 56 93

65.4% South Asia 34 52

29.8% Venezuela 14 47

58.1% Caspian Sea 18 31

7.1% Rest of US 2 28

33.3% 8 24

61.1% Australia 11 18

61.1% Red Sea 11 18

70.6% Mediterranean 12 17

88.2% Black Sea 15 17

33.3% Alaska 2 6

100% Canadian Atlantic 5 5

60% Rest of Africa 3 5

80% Eastern Europe 4 5

33.3% Other 1 3

0% Candian Pacific 0 1

Crude oil production declined year-on-year in Africa and the Middle East, and remained relatively flat in other regions, while in OPEC Mem-

ber Countries, it reached 30.7 mb/d during 2014, down 2.9 per cent from 2013, year-on-year. (SOURCE: OPEC)

SOURCE: Compiled from information from Rigzone


Incidents reported off

Nigeria in the first

half of 2015. PIRACY DEATHS11 6

53.4The overall average worldwide usage of

the offshore rig fleet.

SOURCE: IMB Piracy Report SOURCE: IMCA

CAUSES: Î Cardio/respiratory failure

Î Hit by equipment

Î Man overboard

Î Lightning

OPEC share of world crude oil reserves

OPEC proven crude oil reserves at end of 2014 in billion barrels

81 PER CENTOPEC: 1,206 billion barrels

19 PER CENTNon OPEC: 286.9 billion barrels

19%

81%

Venezuela: 299.95Saudi Arabia 266.58IR Iran 157.53Iraq 143.07Kuwait 101.5UAE 97.8Libya 48.36Nigeria 37.07Qatar 25.24Algeria 12.2Angola 8.42Ecuador 8.27

Atlantica Tender DrillingAtwood OceanicsAxxis PetroconsultantsDiamond OffshoreEgyptian DrillingENSCOGSPHercules OffshoreJasper OffshoreKCA Deutag

Lonestar DrillingMaersk DrillingMegadrill ServicesNabors OffshoreOandoOcean Rig ASAOdjfellPacific Drilling LimitedParagon OffshorePetroserv SA

SaipemSapuraKencanaSeadrill LtdSeaWold OilShelf DrillingShell NigeriaStena DrillingTransoceanVantage Drilling

Operators and rig managers in Africa

“The oil price decline, skills shortages and uncertain regulatory frameworks have put the oil and gas industry on the African continent in dire straits. The combined effect of these challenges places an increased burden on exploration activity and economies heavily reliant on oil & gas revenue, which may have far-reaching socio-economic impacts as a result,” says Chris Bredenhann, PwC Africa Oil & Gas Advisory Leader.

DECLINING OIL PRICE

SKILLS SHORTAGE

REGULATORY FRAMEWORK


E&P Î Exploration and Production

&DRC/AngolaChevron completes subsea engineering feat in Africa

Chevron recently achieved a tech-

nological feat in the depths of

one of the world’s largest underwater

canyons. With vital right-of-way permits

approved by the governments of the

e ocr tic epu c o the Congo n Angola, Chevron has completed the

r ng o e ntersection con u t ene th the Congo er su r ne

c n on p rt o the Congo er C n on Crossing pipeline project.

To cre te the ntersection t o e -

bores were drilled simultaneously

ro sh o ter p or s oc te on each side of the canyon. One of

the p or s s oc te n the e o-

cr tic epu c o the Congo h e the other p or s oc te n Ango The

e ores tr ns tione ro ertic to horizontal, and then intersected almost

midway beneath the canyon, approxi-

mately 2,000 feet (610 m) beneath the

seabed, where the water depth is one-

half mile (0.8 km).

The Congo er cross ng s Che ron s rgest e er e ntersection n t

is the most technically challenging

aspect of the pipeline project. The well

ntersection pro e the ost secure method of crossing the canyon and con-

necting to the p pe ne t the p or s located on each side of the canyon.

“This was the most unique well inter-

section pro ect o ts n e er un er-t en Che ron n the er rst n the n ustr per or e offshore s Ben Leonard, project drilling manager

for Chevron’s Southern Africa strate-

g c us ness un t ther ntersection projects have involved drilling under

highways or riverbeds, but this one

s ore th n ti es the ength o routine cross ng

Se er nno ti e techno og es n processes were employed during the

r ng o the e ntersection or e -

p e n cti e gnet r ng ng tech-

nology was used to direct the drilling

assembly so that the wellbores merged

precisely on a target roughly the size of

s et Th s n o e gnetic sensor in the drill string on one side and

a powerful magnet, located behind the

drill bit, on the other side.

An tion ch enge or the pro ect te s to nst the t o offshore p or s n n re c ose to the outh o the Congo er here there re strong currents.

The pipeline will transport natural gas

ro Ango s offshore oc s n to the Ango L ue e N tur s

LN P nt the countr s rst LN pro -

ect. When completed, the pipeline will

be approximately 87 miles (140 km) in

ength n n ti tr nsport up to million cubic feet of natural gas per day.

E P: E p or tion Pro uction

41%Forty-one percent of E&P com-panies said that they would be

investing in the development of drilling or exploration pro-

grammes, which is significantly lower than in 2014 when

70 percent reported this as a key

strategic focus.(According to a survey by PwC -

see page 18 - 20 for more information)

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The South African Maritime Industry will once again come together to celebrate excellence and acknowledge achievements this year as we present the Maritime

Industry Awards. But this time – we are taking the message under Operation Phakisa to heart and challenging the industry with our theme of All Hands on Deck.

SAMSA MARITIME INDUSTRY AWARDS

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E&P Î Exploration and Production

Angola:Total starts up production from Dalia Phase 1A on deep offshore Block 17

Tot h s st rte pro uction ro

Ph se A ne e e op ent on ts eep offshore oper te oc oc te off the co st o Ango

Ph se A e e op tion reser es o on rre s M n will contribute 30,000 barrels per day

to the oc s pro uction

The Ph se A pro ect n o es the r ng o se en n e s tie c to

the o ting Pro uction Stor ge n o ng PS un t

Angola:Sonangol and Cobalt announce US$1.75 Billion transaction

The Ango n N tion Concess on re Soc e e N c on e Co us e s

e Ango E pres P c Son n-

go n Co t Intern tion Energ Inc. (Cobalt) have signed a Sale and

Purch se Agree ent or Son ngo to acquire all of Cobalt’s 40 percent par-

tic p ting nterest n oc s n offshore or on th n

effecti e te o nu r Th s tr ns ction s su ect to custo r An-

golan government approvals, which are

expected prior to the end of the year.

The S e n Purch se Agree ent pro-

es or s ooth tr ns tion to ne oper tor n un erscores the p rties co t ent to n the n n est-ment decision for the Cameia develop-

ent n oc e r en n or er to e er rst o ro C e n

Not thst n ng Co t s continu-

ing as operator for an interim period,

all costs going forward will be borne by

Sonangol.

Egypt:Subsea 7 awarded contract offshore

Su se SA h s een r e US

on contr ct P n p rt-ner DEA, for the development of the

T urus n L r su se e s offshore Alexandria, Egypt. The contract is the

rst ph se o Eg pt s est N e e t pro ect here e e e op ent e at depths of approximately 800 metres.

The contract scope includes the engi-

neer ng procure ent nst tion n pre-commissioning of subsea infrastruc-

ture required to develop the hydrocar-

bon resources from nine wells including

o etres o u c s n kilometres of pipeline.

Engineering and project management

work will commence immediately and

e un ert en t Su se s o Pro ects Centre n Lon on r c tion of the subsea structures and spools will

e c rr e out t the Petro et M yard near Alexandria.

ffshore nst tion s sche u e to commence in the second half of 2016

using the Subsea 7 pipelay vessel, Seven

ore s n he construction esse Se en Arctic

Tanzania:ISS Awarded Paragon Offshore Project

Inchcape Shipping Services (ISS) has

een ppo nte P r gon ffshore ouston s r ne n og stic ser ces

pro er or ne r ng c p gn off the Songo Songo Islands, Tanzania - the

rst ne co erc r ng pro ect n Tanzania in a number of years.

ISS is providing a range of services for

P r gon ffshore nc u ng u hus-

n r cre og stics s ss st nce and arranging marine and air charters.

A e ng pro er o st n r spec c -

tion offshore r ng ser ces P r gon ffshore s ep o ng c up r g M

on the n ne onth c p gn or P n-

African Energy Tanzania - the country’s

rst n tur g s pro ucer M rr e t the e on o r se su ers e

vessel, OHT Falcon to e o te off n p nne to the r ng oc tion

ur ng the c p gn M c e r cti e pro uc ng e s to enh nce

output and will drill several new wells in

the s e e

TanzaniaFirst gas delivery reported from Mnazi

M ure Pro n oper tor th percent nterest n Mn

Block has reported the opening of two

e s n the Mn g s e th t

e er to the M process ng cen-

tre the entry point of the gas pipeline

n ng Mt r to r es S

Th s pro uction output n ti e used solely for commissioning opera-

tions or the ne TP C ASC c ties but is then expected to ramp up rapidly

to 70 million cubic feet per day with the

connection o t o tion e s n cto er A pro uction c p c t o

80 million cubic feet per day is expected

by the end of the year.

In the ne t e onths M ure Pro n se ho the pro uction output

and reservoirs are behaving, and given

the encour g ng resu ts ro the M e r e n the rst h o ou e ne n tion pro uction

capacity.

Un er the s S es Agree ent s gne on 12 September 2014, for which

n nc gu r ntees re no n p ce the s e pr ce h s een set t US per on TU or roun US per thousand cubic feet, rising in line with

the US CPI n ustr n e

Tunisia Extension of Permit for Mahdia Licence

Crc e P c h s een gr nte three

year extension on their explora-

tion per t on M h oc offshore Tunisia. Circle Oil, as operator, currently

has a 100 percent working interest in

the permit.

The M h per t offshore Tun s co -

ers an area of 3,024 km2, and contains

the E Me oun structure h ch s r e C rc e s EM e n August

2014 when the company announced

the discovery of notable oil. While mud

osses pre ente og t c u s tion Circle considers the shows to indicate a

s gn c nt resource ro the structure

The extension of the licence carries with

t one e p or tion e n one p-

praisal well commitment and a require-

ment to acquire 300 km2 of 3D seismic.

Circle recently announced their inten-

tion to see p rtners to e e op the E Me oun structure n other prospects on the permit and report that they have

already received expressions of interest

in this regard.

E P: E p or tion Pro uction


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Democratic Republic of CongoAquatic awarded a multi-million pound Moho Nord subsea project contract

Au tic Eng neer ng n Construc-

tion Lt n Acteon co p n h s een r e u ti on poun

contr ct on the on Moho Nor su se pro ect off the co st o the

epu c o Congo est A r c The contract was awarded by a UK-based

su contr ctor or ng or Tot E P Congo A u tic s ten onth c p gn portion o se n cto er

A u tic supp ree r e s ste s together with a team of supervisors

and technicians. They will provide the

techn c e pertise n support to operate the equipment hired for the

ur tion o the oper tion A u tic e nstru ent n the nst tion o

o su se e e p pes n of umbilicals.

The Moho Nor su se eep ter off-

shore project is located approximately

off the co st o Po nte No re n is the latest project being developed in

the Moho on o L cense

NigeriaPanoro Energy announces spud of Aje-5 production well

Panoro Energy ASA has commenced

on the A e pro uction e on the ML cense offshore N ger The

well is being drilled with the Saipem

Scarabeo 3 semi-submersible drilling rig.

A e s n offshore e oc te n the estern p rt o N ger n the ho e

Basin close to the border with Benin.

The e s s tu te n ter epths ranging from 100 to 1,000 metres about

24 km from the coast.

The A e e s e ng r e ro se e oc tion c ose to A e n metres water depth. The well will be

r e s e te e t rgeting oc tion c ose to the A e su sur ce oc tion here th t e encountere

and tested high quality oil-bearing

Ceno n n reser o r o o ng r -

ng the A e e e co p ete s su se o pro uction e The r ng n co p etion or A e s e pecte to

t e ppro te s o o ng this the rig will be used to re-enter the

e sting A e e to co p ete t s secon su se o pro uction e

Inst tion o the pro uction n o o nes u c s n r sers t e

p ce n er h ch the PS vessel the Front Puffin will be installed

n co ss one Pro uction s e -

pecte to co ence e r en

The GambiaErin Energy commences 3D seismic acquisition

Er n Energ Corpor tion through ts su s r C c Energ

L te h s co ence the shooting o se s c sur e off the co st o

The Po rcus Lt h s een contracted by the Company to carry out

the survey using the Polarcus Alima,

an ultra-modern 12 streamer 3D/4D

seismic vessel. The survey is expected to

t e ppro te s to co -

p ete n co er out s u re o etres on Er n Energ s A n A

blocks.

Kase Lawal, Chairman and CEO of Erin

Energ co ente : The c u s tion o 3D seismic data in this emerging West

Africa margin basin will provide valuable

pre r n or tion th t s e to e u-

ting the e p or tion potenti o these blocks, which are in close proximity to

recent offshore Seneg o sco er es

Er n Energ s oper tor o the A n A blocks with 100 percent interest. The

A n A oc s re oc te ppro -

te offshore The n re on tren th the recent AN n

SNE h roc r on sco er es offshore Senegal by Cairn.

Polarcus Alima, an ultra-modern 12 streamer 3D/4D seismic vessel. (Photo: Business Wire)


CALENDAR Î Conferences, Exhibitions, Seminars

Harnessing Africa’s Oil & Gas Industry Potential: Overcoming Growth, Financing, Technological and Talent Barriers. 17-19 September 2015 Port Harcourt, Nigeria

OC Africa 2015 ffshore nshore Con erence

Ar c s t crossro th reg r

to ts n s n ustr uture A nu er o current tren s re po nting to r s p r o c gro th n e-

ter or tion o the n ustr s sust n e gro th n per or nce e sure n ter s o : outputs en ng e n

n supp g ps r s ng ue pr ces n short ges n e u te n r structure

c ties n pro ess on s sust n-

t n CS n ge ent ssues const nt sh n n ustr conte t n oper tion co p e ties In tion to r s ng nsecur t co p e sc po c es

n regu tor reg es

Presente the SSC The C A r c s to r ct energ e ecuti es

o c s pro ess on s spec sts n es-

tors n co p n es ro roun the or n ser es o nter cti e p ne s

to scuss the n ustr n sc pe n gro th potenti

The go s o the con erence re to pro-

e p rtic p nts

th ne ns ghts too s perspecti es n str teg es to he p the n ge

n ustr re te ssues n ch enges s the oper te n est n e p n nto

the reg on www.s-scg.com/events/oac15

FREE SEMINAR21-23 September 2015 Maputo, Mozambique

s Co petence Se n rThe or n roup n s-

soc tion th the Intern tion s Un on I U Sust n e Energ or A SE ALL the o ern ent o Mo -

ue n EN s org n s ng s Co petence Se n r on Septe er

n M puto Mo ue

The se n r pro e n opportun t or h gh e e go ern ent represent -

ti es n n ustr pro ess on s to sh re no e ge r se reness n scuss

options th t n tur g s offers or sust n e ccess to energ n soc

n econo c e e op ent

The se n r ocus on r ous the es o nterest ro g s r et

e e op- ent un ent s nstitution regu tor r e or n nc ng options n ustr n soc e e op ent

n the recent or n e o In -

ti ti e to e uce s r ng ero outine r ng

Se er c se stu es n p ne scus-

s ons re p nne to sh re est pr c-

tices n cce er te tr ns er o str teg c co petence The t rget u ence

re po c ers n go ern ent e eg tes ro

E st n South A r c n repre-

sent ti es ro the o n g s n ustr

Sp ce s te

Exploring key issues facing East Africa offshore operators.22-23 October 2015 Dar es Salaam, Tanzania

ffshore E st A r c J

o n US on cto er n r es S T n n

ffshore E st A r c Con ention e he on cto er

n r es S T n n th the the e Strengthen ng Intern tion Cooper tion n E st A r c s ffshore E P In ustr Th s e r s h gh pro e e ent g ther n ustr pro ess on s ro throughout the energ centres o

E st A r c nc u ng T n n en Mo ue en urun n Ug n South Su n n Eg pt Th s n-

ustr e ent e p ore the e ssues th t re c ng the E st A r c oper tors

n pr ctitioners

ffshore E st A r c Con ention s ti e e ent hen pro uction sh r ng

contr cts e ust s gne n uture e e op ent p ns e scusse e ture spe ers n IP guests n te ro go ern ent o c s N Cs

I Cs n nners o the offshore ng roun re: T n n Petro eu

e e op ent Corpor tion TP C N -

tion Corpor tion o en N C Petro eu Agenc SA EN Mo -

ue M n ster o Energ n M nes o urun N ger n Petro eu e e op-

ent Co p n NP C The So Petro eu Corpor tion ph r Energ St to roup En SpA N C An r o She E onMo etc

ffshore E st A r c Con ention str es to pro e un ue p or or

offshore s p ers to no out the prospects o the reg on r et to enter the E st A r c offshore

upstre us ness e oo or r to eeting ou there

www.offshoreeastafrica.org

CALEN A E ENTS:

Do you attend the South African Oil and Gas

Alliance’s networking breakfasts in Cape

Town, Durban or Johannesburg? Open to

members and non-members of the Alliance,

the breakfasts introduce a wide variety of

speakers and topics for debate and consider-

ation – and offer an ideal oppor-

tunity to network with the industry.

NETWORKING BREAKFASTS

N TE E A IN EATU E E ENTS:

P e se note th t nc us on o n e ent con erence or se n r on these p ges

oes not constitute n en orse ent or reco en tion the pu shers o th s

S E SUPPLEMENT


Content rich opportunity to network and shape the economic future of the continent26-30 October Cape Town, South Africa

22nd Africa Oil WeekIncluded in the line-up is this year’s

13th Africa Independents Forum 2015, the17th Scramble for Africa: Strategy Briefing, and the four-day 22nd Africa Upstream 2015 format.

The 22nd Africa Oil Week 2015 aims to provide an event of rich-content with highest quality, first-class networking and social interface, and multiple op-

portunity for all to create and cement relationships that will shape the future for oil and gas in Africa, and the eco-

nomic future of the Continent.

www.africa-oilweek.com

Stimulating growth and investment in the region7-9 December 2015 Algiers, Algeria

North Africa Oil and Gas SummitThe North Africa Oil & Gas Sum-

mit aims to stimulate growth and investments in the region. Through expert speaker presentations, sharing best practice via interactive roundtable and workshop sessions, the Summit facilitates meaningful conversations between the regions key stakeholders to set the scene of the future of the oil and gas industry in the region.

As we move towards its 10th anniver-sary, the North Africa will once again provide a critical platform to create and develop the partnerships necessary to secure success in the region. From the 7th to the 9th of December, Energy Ministers and the CEOs of national and international oil and gas corpora-

tions in Egypt, Algeria, Morocco, Libya, Tunisia and Mauritania will gather in Algiers, once again to discuss upstream opportunities for investment across the region, the latest technologies and financial strategies to support their projects.

A look ahead at the 10th edition:

Î Making North Africa a top invest-ment destination for the global oil and gas community

Î Creating the ideal investment climate to stimulate economic growth and attract the best partners

Î Win-win cooperation case studies between NOCs and IOCs

Î Country Roundtables: stakehold-

ers from North African countries will discuss energy strategies

Î Looking at the long-term benefits of a common market in North Africa for NOCs

Î Bringing global best practices for unconventional development to North Africa

Î Utilising the most advanced tech-

nologies to maximise production of mature fields

www.northafricasummit.com

Celebrating 20 years in the region.26 – 28 January 2016 Lagos Nigeria

Offshore West Africa

Offshore West Africa 2015 brought together a record-breaking at-

tendance of oil & gas professionals, creating a vibrant networking experi-ence, generating new business ventures and initiating further learning opportu-

nities. Providing an exclusive source of information for over the past 19 years, Offshore West Africa 2016 will once again showcase the most innovative technologies and groundbreaking solu-

tions within the deepwater exploration and production industry. Combining both a highquality conference and rich exhibition of services and equipment.

Offshore West Africa offers a unique insight into this exciting and progres-

sive marketplace and including this key industry event as a vital component of your company’s marketing strategy en-

sures one-on-one access to key industry professionals from around the world, all in one place.

2015 EVENT STATISTICS

Î 2,373 Attendees from 35 coun-

tries

Î 390 Attendees to the Opening Plenary Session

Î 500+ Conference Attendees

Î 91 percent of attendees surveyed stated that the exhibition met or exceeded expectations

Î 92 percent of Offshore West Africa 2015 exhibitors established contacts for future sales and improved prospects within the region

Î 87 percent of attendees think attending Offshore West Africa is important for meeting business objectives

Offshore West Africa features not only a conference and exhibition, but also excellent networking opportunities and as part of the PennWell Corporate Social Responsibility additionally provides a Continuing Professional Develop-

ment (CPD) conference, supported by the Energy Institute, as well as Youth Engagement Programmes alongside our partners, Lonadek.

www.offshorewestafrica.com

NEWS Î Updates from offshore


N ger n N tion Petro eu

The t s o restructur ng the N ger n N tion Petro eu Corpor tion NNPC nto e n e c ent n us ness

ocuse org n s tion h s co ence th M n ge ent s ppro o the retire ent o th rt e ght sen or n gers

The Corpor tion e p ne th t the o ns ng h ch s the e t o sen or n gers ho ere e to retire et een no n ece er s so cost s ng e sure The top

n ge ent st ff h s een re uce ro to

In re te e e op ent the ne ppo nte roup M n gng rector E nue I e ch u h s ppo nte ne roup ener M n gers Ms to n so e o ts s ons

ch u s ppo nte N ger s Pres ent Muhu uh r n August n s seen s e pos tion n N ger

ch u c tes h s pos tion s e ecuti e ce ch r n o E on Mo A r c

So e o the ne Ms nc u e Me e r Cru e M r etng s on C M Ah u S o NNPC e Ser ces r Sur een o A o IT SAP u r A u NNPC C p t

e Se e or N ger n Petro eu In est ent M n ge ent Ser ces NAPIMS e A to e u n esources s on

o n C on o n nce e o u Corpor te P nn ng s on An o r gh Tre sur n h tu M Sh p

p ng thers ppo nte re: S ue N u e M Po er M e M Accounts usu M t sh M LN u Su e n M Eng neer ng Techno og n u un

etun e M Me c

o n n A r c roup or r h s een ppo nte s the ne he o o

n n A r c roup s sector group

or r e se n the C pe To n o ce o A here h s su st nti e per ence n A r c co p e ent the sector group s e pertise cross the continent ng or e n tr e e n A r c he h s cons er e no e ge o n e per ence n the o n g s sector throughout the continent nc u ng ntern tion restructur ngs n ter In est ent

Tre t ce on o n g s sset ho ngs ce on cence oc pp c tions n en ron ent regu tor reg es

s e s go ern ent regu tions n I s n South A r c Mo ue n est A r c

or the p st e e rs he h s een se n A er een g o hu or the o n g s n ustr here he h s e e ope cr tic re tionsh ps n oth techn c n eg c rc es or r or e

s Sen or Leg Counse or C n n N tur esources Intern tion CN I or e n h e rs e ore return ng to pr te pr ctice t n o n g s te here he h s spe rhe e the r s re tionsh ps n Mo ue ur ng h s ti e t CN I he or e e tens e on M ner n Petro eu

esources e e op ent Act MP A ers re ting to South A r c n ssets n on ssets n on n Cote I o re

e re e ghte to e co e s he o our s sector group n no th t th h s e tens e upstre

e p or tion n pro uction e per ence n e th o o er no e ge the group n our c ents ene t gre t ro

h s ppo nt ent s o Legh Ch r n

s rr strengthen our offer ng to c ents n th s sector e re re s ng nu er o e ng p ers on the MP A n s upstre pro uction s s n e perence co p e ent our n o nstre tr c recor

s e s support our o ces cross A r c s E r s Ch r n o Corpor te M A

En ron ent esources M n ge ent

Inge org McN co p rtner th En ron ent esources M n ge ent E M h s tr ns erre to E M Su S h r n

A r c n e se n C pe To n

As E M s g o r ne e er she r ngs e rs o e perence to A r c n str teg c en ron ent ssess ent en ron

ent p ct ssess ents s e s pro ng support n r ne en ron ents n n sust n e energ pro ects

McN co h s or e n n o n g s pro nces nc u ng Europe A r c As P c c n North A er c Interesting pro ects h e nc u e the rst Str teg c En ron ent Assess ents or o n g s cti ties n Ire n s At ntic ters r s ssess ents or ne countr entr or offshore o n g s e p or tion n r ne o ers t ction p nn ng

McN co h s ser e s sen or p rtner t E M M s or the p st e ght e rs n h s tr ns erre ro u Lu pur to E M C pe To n n ntic p tion o s gn c nt e e op ent n the o n g s sector on the continent

En ron ent esources M n ge ent E M s g o pro er o en ron ent he th s et r s soc consu tng n sust n t ser ces The co p n s co e to

pro ng cons stent pro ess on n u t ser ce th t cre tes ue or ts c ents n the n ng o n g s po er

nu ctur ng che c n ph r ceutic ports n n rstructure sectors

COMPANY NEWS: ppo nt ents nnounce ents

C pe Ar ture n ng

C pe Ar ture n ng CA h s co e to tr ns ortion n recent nnounce the r Le e EE st tus

rectors eorge n N c Epenetos s th t the r o ne e ectr c otor super c t n C pe To n s const nt str ng to

pro e the r st tus n h s o e up ro the r pre ous Le e ssess ent

ho e he rte co e to South A r c s tr ns or tion gen the rectors s th t t s out cre ting prosper t or

South A r c ns h ng c e ecuti e e ersh p n the us ness r ng ng n s s e e op ent t ng p rt n e n ng u o cretion oo ng er the un er pr ege n so eep ng the est

peop e or the r us ness

eorge Epenetos co ents: Tr ns or tion s ore sust ne hen there s gro th n co p n ec use t o s ou to

e ch nges gro ng our c p c t r ther th n tr ng to cre te ne pos tions th t ou on t nee

CA h s recent un ergone str teg c restructur ng n c t te the r recent gro th th ne e e p o ees to the r

n ge ent orce

CA ere r e the r EE Le e T o r ting EE Appro e reg stere u tors Moore Stephens er c tion n Consu ting

Ne ppo nt ents

ong So u she s CA s ne ppo nte S es M n ger th strong c groun n s es n oper tions ro her s t o

ern ent s Enterpr se e e op ent n c ties M n ge ent So u she e n sset to the te

As ng So u she h t she pprec tes the ost n her ne co or ers she s s the h e e r ce th t o en re no p rtic p ting n th s n ustr The ere e co ng n o g e ti e to sh re techn c spects n h t e re o ng

urther e e op ents th n CA nc u e re s orn s ppo nt ent s Co erc M n ger n Ste en co s ppo nt

ent s per tions M n ger

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COMPANY NEWS: appointments || announcements

Coena

Ceona has expanded its West African reach after entering into a strategic

partnership with Interoil Angola Lda. The partnership will see Interoil Angola, which is a key player in offshore support vessel management in West Africa, support Ceona’s plans to expand into Angola.

Ceona is already active in West Africa through its Ceona-Seaweld joint venture in Ghana as well as the company’s strategic partnership with Marine Platforms Limited in Nigeria.

Bill Hickie, Ceona’s VP Business Develop-ment, said: “Interoil Angola is a well-estab-lished company and an approved supplier by the major operators in the region. It is also one of the few Angolan organisations that has a licence for vessel management. Partnering with them enables Ceona to officially enter the Angolan market, where our flagship Ceona Amazon vessel is highly suited for work offshore, and at the same time continue to grow our strong footprint across West Africa.”

Headquartered in Luanda and with a yard in Sonils, Interoil Angola’s core business is managing support vessels in-country. The company, which is registered with Sonan-

gol, offers oil and gas services in strategic alliance with reliable and proven technical partners.

The Ceona Amazon is a powerful, purpose-built hybrid vessel that can execute complex logistical projects in remote, harsh and deep-water territories. Photo: Ceona Services (UK) Ltd



C&N Petroleum Equipment

With plans to expand further into Africa and to stay at the forefront of innova-

tions in the fluid transfer industry, C&N Pe-

troleum Equipment has recently introduced

the newly designed and innovative DCB500

Drain Bin to the market.

The DCB500 Drain Bin was designed by C&N

Petroleum Equipment for one purpose.

That purpose was to drain loading arms

once isolated for maintenance and servicing

whilst eliminating spillages on terminals and

contributing to a safer work environment.

Another pioneering new product that C&N

Petroleum Equipment now has to offer is

the C&N Petroleum Equipment branded

Matec Composite Hose for marine applica-

tions – OIL800 HD. This hose’s construction

consists of: High strength polypropylene,

polyester films and fabrics and high polyeth-

ylene films reinforcement.

The OIL800 – HD hose has a heavy duty

construction for the transfer of hydrocarbon

conveying under suction pressure and is

used for black oils, heavier lubricating prod-

ucts, ship to shore, ship to ship, Dockside

and for the most ardours industrial marine

applications. The hose is commonly used

for all hose loading arms in Bottom Loading

Operations.

As the Managing Director and founder, Van

Schalkwyk strives to create solutions for the

oil and gas industry and has championed

the development of C&N Petroleum Equip-

ment as a leader in the supply and servicing

of liquid storage to fuel handling, safe

product transfer, vapour recovery, loading

crude oil, Dock oil suction and delivery and

fuel decanting for industries including the

Oil & Gas, Mining, Rail, Aviation and Marine

Industries.

C&N Petroleum Equipment conforms ISO

9001, ISO 2014, NRCS, SABS, European EN

and American API standards.

The Marine Onshore Equipment that C&N

Petroleum Equipment includes the follow-

ing; Marine Loading Arms, Docking Hose,

Dry- Disconnect Couplings, Break-Away

Valves and Lay Flat Hose. C&N Petroleum

Equipment also supplies Marine Offshore

Equipment such as Floating Hoses and

Safety Break-Away Valves.

Superior Energy ServicesEhab Farouk has joined Superior Energy Services as Regional Vice President of Middle East/North Africa Services. In his new role, Farouk will enhance the efforts of Superior and its product service lines as the company continues its expansion into the Middle East and North Africa. Prior to joining Superior, Farouk spent his entire 25 year career at Halliburton in various leadership capacities with his most recent as Middle East Senior Regional Manager for Cementing and Production Enhancement. He will be based in Dubai, UAE.

Sunbird Energy Limited

Sunbird Energy Limited has an-nounced a decision to build a stronger management presence in South Africa to support its evo-lution from a purely upstream, junior exploration company to a gas project development com-pany partnering with PetroSA.

While crucial experience and expertise will continue to be provided from

Australia, the shift will help minimise operating costs.

In line with this evolution, Sunbird an-nounces the resignation from the Board of Sunbird of Managing Director Will Barker and Executive Director Andrew Leibovitch, both effective immediately. Their respec-tive resignations from the Board of the Company also coincide with the conclusion of their executive consulting roles.

Given the above resignations, and also the compliance requirement to have two Australian directors on the board, Sunbird has announced the appointment of Gabriel Chiappini to the Board of Sunbird as a non-executive director.

Chiappini is a Chartered Accountant with over 20 years of experience as a finance and governance professional. He is a cur-rent member of the Australian Institute of Company Directors and Institute of Chartered Accountants (Australia).

The reconstructed Board of Directors of Sunbird is now as follows:

Î Kerwin Rana – Executive Chairman (interim Chief Executive)

Î Dorian Wrigley – Non-Executive Director

Î Gabriel Chiappini - Non-Executive Director

Î Marcus Gracey – Executive Director

The company is now also pursuing the appointment of a Chief Executive Officer with global oil and gas project delivery

experience to be based in South Africa. While this search is being undertaken, Ker-win Rana, the current Executive Chairman of the Company will act as the Company’s interim Chief Executive.

Founding Non-Executive and Independent Director Marcus Gracey, has also agreed to step in as an Executive Director for a short period to provide support and stability, particularly while the company transitions many of its functions to South Africa.

Gracey will assist with change manage-ment, corporate logistics and with the execution of near term strategic objectives during this critical period for the Company.

With the momentum building around the IGP development and the maturation of the GSA negotiation with Eskom, Sunbird is also pleased to announce the appoint-ment of Nathan Rayner as Chief Operating Officer.

Rayner has been with Sunbird for just over two years and has a proven track record of delivery in the oil and gas sector having been the former Chief Operating Officer of ASX-listed Dart Energy and holding senior technical roles at Origin Energy Limited, Addax Petroleum Corporation Limited and Arrow Energy Limited. He holds a masters degree in Petroleum Engineering from the University of NSW and a Graduate Certificate in Business Administration from Queensland University of Technology.

JSE Listing

Consistent with the Sunbird’s South African operational focus and the transitioning of the majority of its resource base to South Africa, the intention is to activate a process to dual list the shares of the company on the Johannesburg Stock Exchange (JSE).

A relatively new process to undertake this listing will ensure that this process once commenced, should be completed in a relatively short period of time and with minimal spend.

According to a statement issued by Sun-bird, the company has received significant enquiries from South African investors who would like to invest.

COMPANY NEWS: appointments || announcements


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e t restructure n ne n nc ng p c ge

Sun r h s negoti te A on e t reconstruction n n nc ng p c ge

th Sun r s s ng e rgest sh reho er U ono C p t n consortiu o South A r c n n estors re supporting the co p n

Th s ne un ng p c ge cons sts o A on o re n nce current e t p us ne

c sh or or ng c p t o A on The restructure n ne e t r ct nterest t percent per nnu n t

the e ection o the en ers n su ect to sh reho er ppro p rt or o the

e t e con erte to e u t pr or to rep ent

Propose Sun r ghts Issue

Sun r con r s ts ntention to so un ert e or ghts Issue n or er to o Sun r sh reho ers the op-portun t to p rtic p te n the n nc ng o the Co p n pr ce cons stent th the con ers on pr c ng o the o e entione

e t n nc ng Th s ghts Issue e su -ect to urther Co p n nnounce ent

to e pro e to the r et n ue course

Use o un s

The urther e t n nc ng secure the Co p n ong th the procee s o the propose ghts Issue e pp e to the urther e e op ent o the I P n n p r-

ticu r cr tic ne r ter estones such s n s ng the SA th Es o

The continu ng co t ent sho n e -sting South A r c n sh reho ers o Sun r

so h gh ghts the port nce p ce on the c t tic ro e th t the I P cou p n South A r c s e erg ng g s econo

p rticu r g en th t the I P s the rgest pro en g s reser e et to e e e ope n countr

As nnounce e r er n the e r Sun r n ts p rtner N tion Co -

p n PetroSA s gne et e g s s e gree ent ter sheet th Es o or the

supp o on cu c eet o g s per e r or up to e rs to An er g Po er

St tion n re no t n nce st ge o the SA negoti tion to n se g s s es gree ent The supp o I hu es g s to An er g o Es o to re se s gn c nt ue cost s ngs h e pro ng

ne n genous n c e ner urn ng energ supp to South A r c

The success o th s e e op ent n pro -ng route to r et or I P s e sting P

reser es o c so encour ge urther e p or tion n e e op ent n the r nge s n Sun r s n epen ent e -

perts esti te th t there s urther Tc o est esti te prospecti e g s resources n the Co p n s Pro uction

ght re

Sunbird has negotiated a A$4 million debt reconstruction and financing package with Sunbird’s single largest shareholder Umbono Capital and a consortium of South African investors already supporting the company.

COMPANY NEWS: ppo nt ents nnounce ents



KEY TO TRAINING COURSESBOAT: Travel Safely by BoatBOSIET: Basic Offshore Safety Induction and Emergency TrainingBRIDGE: BOSIET Bridging ElementsBS1: Banksman and Slinger Training - Stage 1EBS: Emergency Breathing SystemsFOET: Further Offshore Emergency TrainingH2S: Basic H2S Training

HUET: Helicopter Underwater Escape TrainingIMIST: International Minimum Industry Safety TrainingMEMIR: Major Emergency Management Initial Response TrainingOERTM: Offshore Emergency Response Team MemberR1: Rigger Training - Stage 1TBOSIET: Tropical Basic Offshore Safety Induction and Emergency TrainingTFOET: Tropical Further Offshore Emergency TrainingTHUET: Tropical Helicopter Underwater Escape Training

ANGOLA CONGO EGYPT GHANA NIGERIA SOUTH AFRICA TUNISIA

Operatec Marine & Industrial

Training Centre

Servtec Maritime Safety

Institute

Petrolift SMTC Ghana in association with

Regional Maritime University

Charkin Maritime and Offshore Safety Centre

Falck Prime Atlantic

Offshore Africa Training Centre/

Safer Training

Survival Offshore Training

International Training Centre

BOAT 9 9 9

BOSIET 9 9 9 9 9 9 9

BRIDGE 9 9

BS1 9

EBS 9 9 9

FOET 9 9 9 9 9 9 9

H2S 9

HUET 9 9 9 9 9 9 9

MEMIR 9

MIST 9

OERTM 9

R1 9

TBOSIET 9 9 9 9 9 9 9 9

TFOET 9 9 9 9 9 9 9 9

THUET 9 9 9 9 9 9 9 9

OPITOnetwork of

OPITO training providers

in Africa

OPITO is the accepted international body for providing training standards to the offshore sector across the globe. Most offshore companies require personnel to be trained by an OPITO-ap-proved training provider and offshore workers are listed on the OPITO register. Since publishing the list of OPITO network of training providers in our OFFSHORE SUPPLEMENT last year, the list has grown with companies now being recognised in three additional African countries - and the list of courses available on the continent expanded.

A review of Africa’s oil and gas industry undertaken by PwC shows that organisations and governments on the continent can use this opportunity to streamline their position for when the prices start to climb again.

“While the oil price has caused activity to drop, it has also served as a wake-up call to many African governments, which are working hard to pass favourable oil and gas legislation in order to attract investment into the sector,” says Chris Bredenhann, PwC Africa Oil & Gas Advisory Leader. Countries such as Kenya, South Africa and Tanzania have been taking a serious look at legislation currently in place with a view to making it more investor-friendly.

PwC’s ‘Africa oil & gas review, 2015’ analyses trends in the sector over the last

12 months within the major and emerging African markets.

As oil prices declined in 2014, the industry response has been far-reaching with sig-nificant reduction in headcount and other cost cutting measures. Capital budgets have also been cut, and frontier explora-tion activity has decreased.

“While response to such a drastic decline is necessary, we have seen the most success-ful organisations are taking time to re-set, re-strategise and plan for the upturn in

Declining oil prices set to wake up African oil industry


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“While the oil price has caused activity to drop, it has also served as a wake-up call to many African governments, which are working hard to pass favourable oil and gas legislation in order to attract investment into the sector.”

93% o respon ents e pect pr ce r nge o US n 2015

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87% o the respon ents e pect pr ce r nge o US n 2017

of economic crimes in the broader energy, mining and utilities sectors. Despite perva-sive fraud, some governments around the continent have made significant efforts to increase transparency in the industry.

Under the current economic climate, oil and gas companies are looking to increas-ing production potential through improv-ing efficiencies and operational excellence. In addition, they are also looking towards exploration and finding new resources as an alternative for sustainability.

A vast majority of respondents (71 per-cent) reported that they will be looking at formal cost reduction measures in the next

three years. In as much as businesses are considering other measures to ensure their sustainability over and above monetising natural resources, they are also expecting the commodity price to increase in the future. And despite development in renew-able and alternative sources of energy across Africa, respondents do not expect demand for these to have a significant impact on oil and gas businesses over the next three years.

Price predictions

Organisations expect the Brent crude price spread to shift up over the three-year

period, although, if it remains within a US$30 band, it will be reasonably consis-tent. A high 93 percent of respondents expect a price range of US$50 – 80 in 2015; 90 percent of the respondents expect a price range of US$60 – 90 in 2016; and 87 percent of the respondents expect a price range of US$60 – 90 in 2017.

The volatility and, in particular, low oil price have been highlighted as the most important factors affecting the industry, with more than 50% percent of companies expecting price fluctuations to have a high or very severe impact on their businesses.

Respondents are also uncertain about what to expect with acreage/licence acquisition costs. Just over a third believes acreage costs will increase, especially in Kenya and Mozambique. Respondents in developed markets such as Nigeria and Angola expect acreage costs to decrease as potential reserves valuations are affected by the oil price.

Furthermore, the results of the survey show that there is an expectation that the competitive landscape is likely to undergo change, with more than 50 percent of respondents sharing this view.

“The oil price decline, skills shortages and uncertain regulatory frameworks have put the oil and gas industry on the African continent in dire straits. The combined effect of these challenges places an increased burden on exploration activity and economies heavily reliant on oil & gas revenue, which may have far-reaching socio-economic impacts as a result.”

“With activity reduced, this is an ideal time for companies to address the challenges related to doing business in Africa. Stra-tegic planning is required for continued, profitable presence on the continent. The players that emerge when the oil price rebounds are going to be agile engines that are ready to take on the market,” concludes Bredenhann.

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Refining, Gas Prices Temporarily Cushion EMEA Oil Majors

Booming refining margins and relatively stable natural gas prices helped cushion major European oil companies’ first-half results against the full impact of low oil

prices, Fitch Ratings says.

We expect these factors to become less pronounced in the second half of the year, creating an even tougher macro environment. But industry deflation and cost-cutting should start to have a bigger impact.

Royal Dutch Shell (AA/Rating Watch Negative), Total (AA-/Stable), BP (A/Positive), Eni (A/Stable) and BG (A-/Rating Watch Positive) reported their Q2 results last week. The overall trend is clearly negative due to much lower oil prices, but operating cash flow fell less than oil prices.

On average, the EBITDA of major European oil companies fell by 36 percent year on year, and funds from operations by 34 percent during the first half of this year. This compares to a 47 percent slump in Brent prices, and is broadly in line with expecta-tions. Based on these two metrics, Total and BP were top performers in, while BG and Eni had the worst results. The main reasons were BG’s pure upstream business model, meaning it did not benefit from strong refining margins, and Eni’s weaker downstream results than other integrated companies.

Fitch expects European refining margins to shrink by 2016, and that European natural gas prices will continue to fall, following the oil pattern with several months’ lag.

Capex reduction has been the major anti-crisis measure announced by all major oil companies. Guidance indicates that their 2015 cumulative capex may be around 20% lower than in 2014 and we expect an even bigger fall in 2016 as subcontractor prices are dropping and oil companies should manage to reduce spending further even while maintaining the same level of activities. For example, day rates paid to contrac-tors to operate offshore rigs have fallen by 40 to 50 percent compared to early 2014.

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