Serving the interests of industry and members in the upstream … Publicity... · 2014. 4. 16. · •LPG Import Terminal ... Walvis Bay Nacala Pemba Beira Mossel Bay Maputo Richards

August 1, 2011

The Customer Driven Retailer

Grounded in Insights, Fueled by Data and Analytics

TNPA Workshop Presentation Mthozami Xiphu

14 April 2014

Serving the interests of industry and members in the upstream and midstream oil & gas sectors

Membership | Advocacy | Knowledge | Linking & Networking

Agenda

1

2

SAOGA Mission and Vision ….………………… 3

Oil & Gas Developments in South Africa…..……..………………….. 5

3 Sector Overview….….…...………………………….…………... 6

4 African Oil & Gas Scenarios…………………………………... 8

5 Support Infrastructure………………………………………..… 10

6 Equipment / Service Supply Opportunities.……………….. 11

2

7 South Africa: Services Available at Oil & Gas Hubs……………………….. 15

Connect with us!

www.saoga.org.za

3

Governance and Implementation

Board of Directors

CEO

Employees

Ports Cluster

Leadership Team

Governance Task

Team

Major Project

Leadership Team

Marketing

Leadership Team

EXCO

Mission

Vision

Strategy

ARC HRC

Implementation

Setting and

Implementing

Reviewing,

Advising and

Approving

We implement on our mandate

through project leadership teams

Local Content

Task Team

Oil & Gas Developments in South Africa

• 20 Companies

• 30 Licences

• Offshore exploration activity announcements

Source: PASA

Regional snapshot of offshore exploration developments in Southern Africa

Sector Overview – SSA Major Projects

• Refineries

• Clean fuel technology upgrades of crude & GTL

refineries

• Mthombo Refinery, port of COEGA - (Feasibility

Studies being conducted for crude oil refinery

and import terminal)

• Terminals

• Oil – Oiltanking MOGS Saldanha Crude storage &

blending terminal

• Oil/Gas – New Fuels/LPG Terminal in Richard’s

Bay – Vopak

• Gas – LNG Import Terminal to feed PetroSA

• LPG Import Terminal – Sunrise Energy

• LNG Liquefaction – Palma Bay, Mozambique

6


Sector Overview – Industry Spinoffs

• Many large corporations have set

up or are considering setting up

offices in Africa

• Foreign direct investments have

been made into Africa with the

acquisition of local industry

players

• New companies have entered the

Oil & Gas value chain


Oil & Gas

Activity in

Africa -

2013

Oil Export

Terminals

FPSOs

LNG

LNG Import

Facilities

Strategic

Storage

Rigs

Pipeline

Refineries

8

Tracking offshore

activity in Sub-Saharan

Africa & Vessel Demand

9

Oil & Gas

Activity in

Africa -

2023

Oil Export

Terminals

FPSOs

LNG

LNG Import

Facilities

Strategic

Storage

Rigs

New Refineries

New FPSOs

New LNG

New LNG / LPG

Import Facilities

New Strategic

Storage

New Pipelines

Refinery Upgrades

Rigs

Existing Pipelines

Tracking offshore

activity in Sub-Saharan

Africa & Vessel Demand

Support Infrastructure

10

Port of Cape Town

Port of Saldanha Bay

Port of Coega

• New deep water port ~20m • Surrounded by free zone • Northern edge of Port

Elizabeth • O&G development not

currently planned here

• Sturrock dry dock – 360m length, 45m width, 13.7m depth over entrance.

• Repair quay - 457m with 12m draft.

• A-Berth O&G repair/ fabrication facility

• 120km (60-90min drive) northwest of Cape Town.

• Depth up to 21.5 metres. • Existing O&G fabrication

yard.

• Strong ship repair capability • Engineering & fabrication

Port of Durban

Supplier Development – Industry Spinoffs

Rig and

Ship

Repair

Welding

Scaffolding

Pressure

Vessels

Engineering

Services

Fabrication

Construction

Logistics

Storage

Marketing

Crude Oil Value Chain

Exploration Transportation Refining

• Geophysical

Evaluation & Design

• Field Development

• Drilling Operations

• Bringing the

oil to the

surface

• Gathering

and

transporting

– pipelines,

tankers,

trucks

• Fractionation of

crude oil into

petroleum

products

• Product Blending

• Retailing

• Trading

UPSTREAM MIDSTREAM

Oilfield Services

• Contract Drilling

• Drilling Related Services & Techniques

• Production & Maintenance

Production

DOWNSTREAM

End Users Exploration Processing Transportation

& Storage

• 3D Seismic

• Geophysical Evaluation

& Design

• Drilling Operations

• Bringing the gas to

the surface

• Field Development

• Continuing drilling

operations

• Gathering &

Processing

• Fractionation

• Transportation

(pipelines)

• Storage

• Liquefaction (for

tanker transport)

• Industrials

• Power

Generation

• Utilities –

Residential and

Commercial

loads

UPSTREAM

Gasfield Services

• Contract Drilling

• Drilling Related Services & Techniques

• Production & Maintenance

Production

DOWNSTREAM

Natural Gas Value Chain

MIDSTREAM

11

Equipment and service supply opportunities in South Africa

Supplier Development – Challenges and Opportunities (1)

Exploration & Well Completion Challenges

• Equipment • Expensive

• Produced in industrialized countries

• Requires specialised fabrication

• Requires specialised artisans

• Requires established heavy engineering capacity and

knowledge

• Requires a hub from which to procure complimentary

products and services

• Technology • Limited R&D capacity

• Skills • Shortage of specialised skills

• Global shortage of skills makes retention of people

difficult, even indigenous Africans

Opportunities

• Equipment – repairs and maintenance

• Technology – local branch operations

• Skills – Projects to develop sough-after skills will

build in-country capacity 12



Logistics & Transportation Challenges

• Equipment • Requires specialised fabrication

• Requires established industry, e.g. steel

• Requires a hub from which to procure complimentary

products and services

Opportunities

• Equipment • Utilise mineral resources to beneficiate products for

oil and gas industry e.g. pipelines and pressure vessels

• Produce products under licence from established field

service companies that have the knowledge and

experience

13



Refining and Production Challenges

• Equipment • Refineries are old and need

upgrading

• Import raw vs refined product

• Skills • Shortage of specialised skills

Opportunities

• Equipment • GTL?

• FLNG?

• Skills – Projects to develop

sough-after skills will build in-

country capacity


Services Available at Oil & Gas Hubs

15


Services Available at Oil & Gas Hubs

16


Diversified Regional

Supplier Base

Major Logistics & Distribution

Centre

Upstream Repair &

Maintenance Hub

Attractive Location for

Regional Head Offices

Training & Skills

Development SA

Upstream /

Midstream

Hub

South African Ports with Oil & Gas Track Record

Port of Cape Town

Port of Saldanha Bay

Port of Coega

• New deep water port ~20m • Surrounded by free zone • Northern edge of Port

Elizabeth • O&G development not

currently planned here

• Sturrock dry dock – 360m length, 45m width, 13.7m depth over entrance.

• Repair quay - 457m with 12m draft.

• A-Berth O&G repair/ fabrication facility

• 120km (60-90min drive) northwest of Cape Town.

• Depth up to 21.5 metres. • Existing O&G fabrication

yard.

• Strong ship repair capability • Engineering & fabrication

Port of Durban

South Africa - well-positioned to play a hub role as

opportunities spread across the region…….

Sophisticated

Economy &

Infrastructure

• Largest, most sophisticated economy in Africa – diverse industrial

base

• Excellent transportation and communications infrastructure

• Strong financial and legal system supports “first-world” business

environment.

Strategic

Position &

Regional

Linkages

• Part of Africa – leading player in African Union, SADC and SACU

• Strategic position as East and Southern Africa upstream adds to

the West African success.

• De facto logistics and transport hub for sub-Saharan Africa –

Johannesburg effectively the regional commercial capital.

Strong Human

Capital Base

• Diverse population

• Young, trainable workforce

• Predominantly English speaking

• World-class universities and business schools.

Highly

attractive

environment &

lifestyle

• Great climate and general standard of living for expatriate

personnel.

• High quality education and medical care.

• Vibrant cultural and recreational life.

South African supplier base in the key ports offers

the following services and capabilities

• Class Approved Underwater Services

• Class Approved Welding Procedures

• Vessel Class Inspections and Surveys

• Crane Repairs

• Dry-Dockings

• Electrical Installation, Fault Finding and Repair

• Full Engineering Turnkey Solutions

• Grit Blasting & Coating

• Propulsion Repairs

• Hydraulic Repairs

• Mechanical & Valve Testing

• Machinery Inspections

• Machining

• NDT Services

• Pipe Work Fabrication & Installation

• Rig Leg Repairs

• Riser and Subsea Fabrication

• Spud Can Repairs

• Steelwork Fabrication & Installation

• Travelling Squads

• UWILD Inspections

• Afloat Repairs

• Cofferdam Repairs

South Africa - Attractive base for operations into sub-Saharan

Africa

http://www.slb.com/index.asp?

http://www.smith.com/A_about/about_01.asp

http://www.tullowoil.com/

http://www.sasol.com/

http://www.bhpbilliton.com/

Southern African ports of potential interest for Oil &

Gas Rig/OSV servicing Dubai

832nm 7 days

1472nm 12 days

Las Palmas 3913nm 33

days

Cape Town

Luderitz

Saldanha Bay

Lobito

Walvis Bay

Nacala

Pemba

Beira

Mossel Bay

Maputo

Richards Bay

Durban

Mtwara

Coega

East London

3059nm 26 days

1561nm 12 days

Rig: Marianas

Client: Transocean

Location: Port of Cape Town

Arrival: October 2013

Piping, Mechanical, Electrical,

Steel renewal, Accommodation

upgrade, Control Systems

upgrade

Rig: DS-2

Client: ENSCO



Thruster Repairs

Rig: Sedco 702

Client: Transocean

Location: Port of Saldanha

Arrival: November 2013

UWILD inspection, Life Boat

upgrade, Steelwork,

Accommodation work, Drill String

overhaul, BOP

Rig: Orca

Client: PetroSA

Location: Port of Coega

Arrival: September 2013

Refitting and refurbishing to

meet the requirements of a

Special Period Survey (SPS)

certification.

Rig : Scarabeo 7

Client: Saipem


Arrival: December 2013

Piping, Mechanical, Steel

renewal, Tank cleaning , Painting,

Accommodation/ Galley upgrade,

Control Systems upgrade

Thruster overhaul

Rig: ENSCO 5000

Client: ENSCO

Location: Port of Saldanha


Cold Stacking

South Africa - Current Rig Repair

South Africa – Legislation: Challenges and Opportunities

Legislation Challenges

• Local content requirements that can be prohibitive • Expensive

• Not economically feasible

• Requires specialisation and industry maturity that cannot be replicated

• Requires a hub from which to procure complimentary products and

services

Opportunities

• Local content requirements that can be supportive • Appropriate and plausible

• Economically feasible

• Requires specialisation to the extent that it can be replicated

• Develop hubs to create capacity and drive industry development

23


Thank you!

Documents

Serving the interests of industry and members in the upstream … Publicity... · 2014. 4. 16. · •LPG Import Terminal ... Walvis Bay Nacala Pemba Beira Mossel Bay Maputo Richards