african oil and gas:

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

VOLUME 11 | ISSUE 5 2016

Preye Berezi of PFL Engineering talksabout safety and local content (p30)

OIL REVIEW AFRICA - VOLUM

E 11 - ISSUE 5 2016 www.oilreviewafrica.com

Industry updates from Côte d’Ivoire, Madagascar,Mauritania and Senegal

Fire safety and risk management

Quality of life for offshore employees

African oil and gas:

What is on the horizon?

ORA 5 2016 - Cover_Layout 1 14/10/2016 15:29

S01 ORA 5 2016 - Start_ORA Master Template - 2016 New 14/10/2016 15:37

http://www.pflengineering.com/

NEWS AND EVENTS

4 Calendar of oil and gas eventsEvents from around the world andAfrica Oil Week preview.

6 News across the continentUpdates from the African markets.

44 ADIPEC previewGlobal oil and gas event in Abu Dhabi.

46 Rig countA tally of the rigs operating in Africa.

COVER STORY

15 Africa’s fast-evolving energylandscapeA overview of the future of thecontinent’s oil and gas industry.

COUNTRY FOCUS

20 Special report: East AfricaAn update from this growinghydrocarbons region.

22 Senegal and MauritaniaThese West African neighbours couldbenefit from major discoveries.

26 Côte d’IvoireOffshore developments from theAfrican continental shelf.

28 MadagascarAn update on the hydrocarbons futureof the island nation.

TECHNOLOGY

32 Ultrasonic measurementNew technology from Magnetrol.

36 Fire safetyAdvances for oil and gas operators.

38 EOR and data analyticsOverview of EOR and datapresentations from Dubai SPE event.

42 Pipeline managementImportant guideline revisions.

45 InnovationsNew technology for improvingoperational efficiency.

INTERVIEWS

30 Preye Berezi, PFL Limited The importance of local content inNigeria and expanding to Ghana.

34 Alice Hoffman, SodexoQuality of life for offshore employees.

50 Stanford Tassie, TiloneSubseaSucceeding in challenging times.

The future of the African oil and gas industry is open to speculation, not least because thecontinent itself is not homogenous. Rather, it is an exciting and dynamic continent made up ofdiverse countries and economies at different stages of development. On page 15, analyst MoinSiddiqi gives his comprehensive overview of what might lie ahead for Africa.

We pay special attention to the markets of Senegal (page 22), Mauritania (page 22), Côted’Ivoire (page 26) and Madagascar (page 28). All four countries share great ambitions for theirhydrocarbons sectors but it is still uncertain as to how many will become the new major players.

Elsewhere in this issue, we talk to Sodexo about the importance of quality of life for staff whowork offshore (page 34), industry experts discuss the latest advances in fire safety (page 36), newpipeline guidelines are outlined (page 42), and there is an overview of EOR and data analyticspresentations from a Society of Petroleum Engineers conference (page 38).

Georgia LewisManaging Editor

EDITOR’S NOTE

Managing Editor: Georgia Lewis [email protected]

Editorial and Design team: Prashanth AP, Hiriyti Bairu, Luke Barras-Hill, Sejal Bhat, Miriam Brtkova, Kestell Duxbury,Ranganath GS, Rahul Puthenveedu, Rhonita Patnaik, Zsa Tebbit, Nicky Valsamakis, Louise Waters

Publisher: Nick Fordham

Advertising Sales Director: Pallavi Pandey

Magazine Sales Manager: Chidinma AnahTel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076E-mail: [email protected]

International Representatives

India Tanmay MishraNigeria Bola OlowoUAE Graham BrownUSA Michael Tomashefsky

Head Office:

Alain Charles Publishing LtdUniversity House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United KingdomTel: +44 (0) 20 7834 7676 Fax: +44 (0) 20 7973 0076

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Alain Charles Middle East FZ-LLCOffice L2-112, Loft Office 2, Entrance B P.O. Box 502207, Dubai Media City, UAETel: +971 4 448 9260 Fax: +971 4 448 9261

Production: Kavya J, Nelly Mendes and Sophia Pinto E-mail: [email protected]

Subscriptions: [email protected]

Chairman: Derek Fordham

Printed by: Buxton Press

© Oil Review Africa ISSN: 0-9552126-1-8

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

VOLUME 11 | ISSUE 5 2016

Preye Berezi of PFL Engineering talksabout safety and local content (p30)

O

Industry updates from Côte d’Ivoire, Madagascar,Mauritania and Senegal

Fire safety and risk management

Quality of life for offshore employees

African oil and gas:

What is on the horizon?

14/10/2016 11:47 Page 1

CONTENTS

ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 3

Serving the world of business

On page 15, there is a broad analysis of thefuture of the continent’s oil and gas industry.


Executives Calendar 2016OCTOBER17-19 The 8th Saudi Arabian Oil & Gas Exhibition Dammam www.saoge.org

18-19 The 37th Oil & Money Conference London www.oilandmoney.com

23-26 OTL Africa Downstream Lagos www.otlafrica.com

26-27 Bottom of the Barrel Technology Conference Manama

www.bbtc-mena.biz

31- 1 Nov 23rd Africa Oil Week Cape Town www.africa-oilweek.com

NOVEMBER6-9 SABIC Technical Conference-12 Jubail

www.sabic.com

7-10 Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) Abu Dhabi www.adipec.com

8-10 Deepwater Operations Galveston, Texas www.deepwateroperations.com

15-17 East Africa Oil & Gas Summit & Exhibition Nairobi www.eaogs.com. www.deepwateroperations.com

15-17 1st Africa Oil & Gas Local Content Conference & Exhibition Luanda www.ametrade.org/alc/

22-24 The 6th Practical Nigerian Content Forum Abuja www.cwcpnc.com

23-24 MSGBC Basin Summit & Exhibition Dakar www.msgbc.theenergyexchange.co.uk

30-2 Dec Mozambique Gas Summit & Exhibition Maputo www.mozambique-gas-summit.com

DECEMBER5-7 Africa Energy and Technology Conference Nairobi www.spe.org/events

5-7 OpEX MENA 2016 - Operational Excellence in Oil, Gas & Petrochemicals Abu Dhabi www.europetro.com

THE 2016 AFRICA Oil Weekconference, to be held in CapeTown from 31 October to 4 November, will include 130speakers and more than 1,000senior delegates from Africa, itsgovernments and leadingcompanies from the continentand the rest of the world.Following formal ratification

of the new Petroleum Code byParliament, HE Jean-MarcThystere Tchicaya, Ministre desHydrocarbures de la République

du Congo, will provide details onthe Petroleum Code togetherwith an update of the 2016License Round.

There will be leading speakerson oil, gas LNG and upstreamand more than 100 exhibitors,showcasing new technologies.

Additional events include alocal content forum, the AfricaIndependents Forum, the AfricaExploration Zone, a youngprofessionals meeting, a Law ofthe Sea workshop, a GlobalWomen Petroleum and EnergyClub luncheon, and the “BigFive” board awards. The eventhas been running since 1994 andhas a strong reputation foroffering excellent opportunities.

www.Africa-OilWeek.com

Leading players and Congo update at 2016 Africa Oil Week

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

ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COMEVENTS CALENDAR4

Cape Town will be the picturesque location for Africa Oil Week.


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ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COMNEWS6

TULLOW OIL HAS confirmedthat it will start commercial oilproduction in Kenya from March2017 and first exports are slatedto commence from June 2017.This was announced in lateAugust at a meeting at StateHouse between President UhuruKenyatta and Tullow founder andCEO Aidan Heavey.

This follows on from a specialcabinet meeting, chaired byPresident Kenyatta, in which heapproved the plan fordevelopment, commercialisationand early production of Kenyanoil. Tullow has alreadyexperienced success in Kenyawith significant deposits found in2012 in Turkana County.

“The country is now gettingready to full commercialexploitation,” said a statementfrom State House. “In this regard,the country is in the process ofestablishing an enablingcommercial and infrastructurearrangement that will facilitatethe creation of an internationalmarket for Kenya’s crude oil.”

Under the arrangements,production will commence at arate of 2,000-4,000 bpd. Thesewill be transported to Mombasafor export and the Eldoret-Lokichar Road is being upgradedto facilitate this plan. The KainukBridge is also being replaced so itis strong enough got heavy oiltransportation vehicles.

The Kenyan cabinet approvedthe development of the Lokicharto Lamu oil pipeline. In the firsthalf of 2016, Tullow reported anafter-tax profit of US$30 mn. Therevenues were lower on theprevious year as a result of lowercommodity prices and reducedJubilee production, which is thesubject of an insurance claim.

Tullow Oilgoes intoproduction in Kenya

CONSULTANCY FIRM PWChas released its Africa Oil & GasReview 2016. Despite thedownturn, a lack of confidencein investing and the volatility inforeign currencies, the reviewreports on opportunities in thehydrocarbons sector. It analysedactivity in African oil and gasmarkets over the last year andurged reform of regulatory, fiscaland licensing systems, accordingto Chris Bredenhann, PwC oiland gas advisory leader.

He says that with the focus oncost-cutting, there will be anincreased demand for innovativetechnology. He added thatinvesting in training will improveskills and standards and givelocal players a chance to enterthe sector. Uncertain regulatoryframeworks, corruption, poorinfrastructure, meeting taxation

requirements, and a lack of skillswill need to addressed, accordingto the report. Additionally,difficulty in obtaininggovernment sanction for newprojects holds back the industryin many African countries.

Bredenhann said it is essentialfor operators to respond quickly

to the digital revolution and technological breakthroughs,adopting transformative trends such as the internet ofthings, building alliances,simplification, standardisation,solution-based buying andknowledge transfer from IOCs to oilfield services companies.

A DELEGATION FROM Angolamet with the US Department ofState’s Energy Resource Bureauin August for a discussion whichfocused on petroleum and powersectors. Angola was representedby the minister of petroleum,

Jose Maria Botelho deVasconcelos, and the minister ofenergy and water, Joao BaptistaBorges. The meeting was co-hosted by the US Department ofState’s special envoy andcoordinator for international

energy affairs, Amos J Hochstein,and the US Department ofEnergy’s assistant secretary forfossil energy, Christopher Smith.

The US and Angolandelegations reviewed progressmade in the bilateral relationshipin the energy sector since the lastdialogue in August 2011. Theneed for regulatory change in theenergy sector and the need tocreate a favourable businessclimate to attract more privateinvestment to Angola werediscussed in detail.

Other topics discussedincluded operational security andthe environmental impact of oiland gas operations. The dialogueconcluded with US and Angolanrepresentatives reaffirming theirjoint commitment to cooperatingin relation to energy.

US and Angola discuss petroleum and powercooperation in Washington DC

PwC Oil and Gas Review urges change forAfrica during volatile times

New technology, such as Emerson’s multiphase flow meter, needs to be embraced.

Operators perform maintenance at the APR Energy plant in Rocha Pinto, Angola.

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NEWSISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 7

TO ATTRACT INVESTORS toMozambique’s emerging oil andgas sector, the UK ProsperityFund is backing a four-monthprogramme run by Adam SmithInternational. The programmestarted in September with atraining course for 40 delegatesfrom Pemba Municipality,the government of the CaboDelgado Province andsurrounding districts.

The programme will supportthe development of a strategy tosupport investment in the Pembaregion and providerecommendations on thecreation of an oil and gaspromotion unit to encouragefurther investment. The British

High Commissioner toMozambique, Joanna Kuenssbergsaid the UK government will“continue providing support insectors where we can reducepoverty and our companies havesignificant global expertise.”

UK government supportsMozambique investment

FOR THE PRACTICALNigerian Content conference, tobe held in Abuja from 22-24November, the organisers haveannounced the major issues thatwill be addressed by the event’stop level speakers.

The National PetroleumInvestment Management Services(NAPIMS), the Nigerian ContentDevelopment ManagementBoard (NCDMB), and IOCs willdiscuss ways that operators canreduce long contracting cycles.Additionally, the NCDMB will beasked about revising the NigerianContent Development Fund toserve the financing requirementsof local operators and servicecompanies. The government

speakers will addressstrengthening links between theoil and gas industry and criticalinfrastructure development.

Government representativeswill also be on hand to discussthe state’s plans to identify andeliminate oversubscription ofbids and tenders by non-qualifying companies.

State and companyrepresentatives will addressupholding stringent Nigerianlocal content requirements.

Indigenous producers at theconference will explore their rolein growing reserves andincreasing production.

www.cwcpnc.com

Practical Nigerian Contentconference raises big issues

There is a new dawn for Mozambique’soil and gas industry.

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THE FPSO KWAME Nkrumah,a Jubilee Field FPSO whichsuffered a damaged turretbearing earlier this year, has hadits hull and machinery insurancecover confirmed.

The Ghanaian FPSO isoperated by Tullow Oil and itsjoint venture partners and theinsurance policy covers relevantoperating and capital costsassociated with the currentoperating procedures at theFPSO, as well as the long-termsolution to ensure it becomesfully operational again.

Tullow is now working closelywith the loss adjusters andreinsurers to establish an effcientpayments schedule whileremedial work continues on thedamaged turret bearing.Additionally, Tullow is alsoworking with businessinterruption reinsurers oncomfirming cover for loss ofproduction and revenue causedby the turret bearing failure.

The FPSO Kwame Nkrumahhas been placed on headingcontrol through the use of tugs,which reduce vessel movementaround the bearing.

Tullow announced in April2016 that a technical investigationhad taken place on the turretbearing and it found that it wasdamaged and could no longerrotate as originally designed. Oiland gas export was able tocontinue, albeit under revisedoperating and take-off procedures.As well as the tugs, newprocedures include the use of adynamically positioned shuttletanker, with a capacity of 250,000barrels of oil, and a storagetanker with a capacity of 1 millionbarrels of oil, for safe productionand take-off operations.

Update onFPSO KwameNkrumahdamage

THE SOMALI MARITIMEterritorial dispute could meanKenya has to forfeit three oilblocks. Kenya is fighting to holdon to a potentially lucrativeIndian Ocean oil and gas reservesas a maritime border dispute withSomalia goes before the UnitedNations top court in The Haguein September.

The dispute came from 2014when Somalia claimed that the seaborder needed to be redrawn.This would mean that of Kenya's20 offshore oil blocks, three wouldnow belong to Somalia.

Kenya is a relative oilnewcomer, and is opening itselfup as becoming a future major oilproducer. Italy's EniSpa wereawarded three of the oil blocks bythe Kenyan government.

Somali President HassanSheikh Mohamud said on stateradio in Mogadishu: "I amconfident that we will win thatcase." However, attorney-general

Githu Muigai, who is leadingKenya's delegations to theinternational Court of Justice has"contested the jurisdiction of theICJ [International Court ofJustice] to hear the matter."

The essence of the dispute ishow the two countries should

draw the line of the sea boundaryseparating the two countries. Thisdisputed triangle of water isaround 100,000km² in area, andas of a few years ago, wasdiscovered to have the potentialto have valuable deposits ofnatural gas and oil.

AT A PRESENTATION given byAfrican Petroleum at the ParetoSecurities – Oil & OffshoreConference, held in Oslo, thenews was bright for the future ofhydrocarbons development inCôte d’Ivoire. In conjunction

with Ophir Energy, which holdsa 45 per cent stake, AfricanPetroleum will start high impactdrilling in the CI-513 block inthe second half of 2017.

A new PSC has beennegotiated for this licence with

good fiscal terms, lower holdingcosts and an extension to workcommitments. African Petroleumis also the 90 per centstakeholder and main operator ofCôte d’Ivoire’s CI-509 block.

Cairn Energy and Total havealso made material hydrocarbondiscoveries in adjacent acreage.

As well as the positive newsto come from the company’sinterests in Côte d’Ivoire, thepresentation also sharedpromising news from otherinterests in the continent,including a 90 per cent interest ina block in Senegal, widely tippedto be the next location for ahydrocarbons boom in WestAfrica, high impact drillingslated to start in the third quarterof 2017 in Gambia andpromising prospects in Liberia.

High impact drilling to commence in Côted’Ivoire in 2017 for African Petroleum

Border stake could affect Kenya oil reserves

A Masai on the beach overlooking the disputed territory in Kenya.

African Petroleum is flying the flag for Ivorian hydrocarbon development.

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ATTEMPTS TO RESTOREorder to Nigeria and fullyrecommence oil productionsuffered a setback when theNigerian militant group, theNiger Delta Avengers, claimedresponsibility for a pipelineattack on 23 September.According to Reuters, it was

the first pipeline attack since abreak in hostilities was declaredin August so talks with thegovernment could be pursued.The Niger Delta Avengers

posted a statement on theirwebsite which said it has“brought down oil productionactivities at the Bonny 48 inchescrude export line”. In an emailedstatement, a spokesman for thegroup said the attack took placein the sea near Bonny Island inRivers State, where a number ofoil facilities are located.The group is demanding a

greater share of Nigeria’s oilwealth to go to the Niger Delta,where most of the country’scrude oil is produced.Describing the latest attack as

a “wake-up call” for the Nigeriangovernment, the Niger DeltaAvengers spokesman claimed thegroup is still in favour ofdialogue and negotiations. The attack was condemned by

the Pan-Niger Delta CoastalStates Stakeholders’ ConsultativeForum, which represents theelders of the communities livingin the Niger Delta. Chief Edwin Clark, the

forum’s leader issued a statementfollowing the attack, saying thatthe Niger Delta Avengers hadviolated the 60-day ceasefire andthat there was no justification forthe attack. He called on themilitants to lay down their armsand stay calm and peaceful.

Niger DeltaAvengersclaim pipelineattack

WITH MOZAMBIQUE’SREPUTATION as a leader inEast African gas developmentsteadily growing, theforthcoming Mozambique GasSummit is a timely event.The National Content Day

will be a much-anticipated part ofthe event with updates fromgovernment and internationalplayers on the new legislationthat aims to build capacity,enhance the role of SMEs andensure the country’s gasdevelopment offers benefits to alarge number of people along theentire value chain, and inindustries that grow as a result ofa burgeoning gas industry.On National Content Day,

representatives from thegovernment will outline thestate’s vision for a successfulimplementation of national

content policies. There will alsobe speakers and discussion onstrategies for successfulcollaboration, the role of SMEs,and how local companies canpartner up with internationalplayers and qualify forparticipation in gas and LNGprojects. Developing best

practices and bridging the skillsgaps to ensure capacity buildingwill also be on the agenda on theNational Content Day.

The Mozambique Gas Summit willbe held at the Joaquim ChissanoInternational Centre, Maputo,from 30 November to 2 December.

WITH LOW OIL prices pushingthe Nigerian economy into itsfirst recession in more than 20years, the country’s governmentis embarking on a large-scale taxcrackdown, seeking out 700,000firms which have never paid tax.

The OPEC member slipped intorecession during the secondquarter of 2016 amid militantattacks on oil facilities in theNiger Delta region (see newsstory, right). These attacks haveled to crude oil production,

which provides 70 per cent ofgovernment revenues, to be cutby around a third.Reuters reported that planned

loan deals with foreign lendershave not materialised, and thishas left the governmentstruggling to fund a record 6.06trillion naira 2016 budget, whichwas created with the aim ofstimulating growth by triplingcapital expenditure.“We collected a little over

2.3 trillion, so far, from Januaryto 32 August,” said Tunde Fowler,chairman of Nigeria’s FederalInland Revenue Service, of thetax crackdown, which targetsindividuals as well as companies.“It is almost at par with lastyear but take into considerationthe economy is going through a little slowdown.”

Nigeria attempts to offset impact of oil priceslump with large-scale tax crackdown

Local content and future strategies on theagenda at the Mozambique Gas Summit

Local content laws aim to improve opportunities for Mozambican workers.

The Nigerian oil slowdown has seriously impacted the country’s economy.

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SONANGOL, ANGOLA’S STATE oilcompany has continued its turbulent year withthe suspension of refining and terminalprojects, a stake sale terminated in August,and a delayed takeover of drill ships.In August, Sonangol announced the

suspension of construction at the Lobitorefinery and ocean terminal of Barra doDande. In a statement, the company said workwas suspended to reasses the projects’“strategic vision”. The Lobito refinery wasslated for completion in 2011, but it has beendelayed by high costs and financing problems.Reuters reported in August that Cobalt

Energy terminated the proposed US$1.75bnsale of a 40 per cent stake in two offshore oilblocks to Sonangol because it did not receivethe necessary approvals from the Angolangovernment within a one-year timeframe.Then, in September, fears grew for the

liquidity of Korean-based DaewooShipbuilding and Marine Engineering(DSME) when it became apparent thatSonangol would delay its planned takeover of

two drill ships. Daewoo had planned to deliverthe two ships to Sonangol in mid-2016 but thiswas postponed until September. DSME was expecting to receove the

remaining contract fee of US$1bn. However,the latest takeover of the drill ships has beendelayed for a seocnd time by Sonangol withthe company citing financial difficulties.At the time of going to press, DSME was

seeking 80 per cent of the US$1bn in cash andthe rest in stocks. Sonangol has established aspecial purpose vehicle to manage the drillships. DSME has said it will take the shares ofthis new company. If the takeover does not take place until

2017, this will increase the financial burdenfor DSME. In June 2016, Angola’s president,Jose Eduardo dos Santos appointed hisdaughter Isabel dos Santos as head of Sonagolafter sacking the entire board in April.

Turbulent times for Sonangol after multiple projects aresuspended and block stake sale is terminated

The Sonangol headquarters inLuanda, Angola.

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POST-2010 WORLD-CLASS natural gas findsoff the East Africa coast,

deep and ultra-deepwater oildiscoveries off the Gulf of Guineato the west, and promisinggeology along the East AfricanRift, make the African continentone of the last frontiers forenergy development in the world.New energy producers, led byMozambique, Tanzania, Ghanaand Uganda, are expected tocontribute to increasedproduction in the decades ahead.

Given the sheer volume ofAfrica’s proven reserves and highprobability of future discoveries,foreign energy and energyservice companies stand to gainfrom new E&P activities on thecontinent, which will help tooffset natural declines in moremature hydrocarbons provinces.According to US GeologicalSurvey, sub-Saharan Africa (SSA)is estimated to contain about 20

and 17 per cent, respectively, ofthe world’s undiscovered buttechnically recoverableconventional oil and natural gasresources. Hence, the continent iswell endowed to meeting futureglobal energy demand needs.

The US Energy InformationAdministration (EIA) projectsworld crude oil consumption at120.9mn bpd by 2040, anincrease of 27.8mn bpd from

2015’s consumption levels of93mn bpd (OPEC figures). Thusnew supply should exceed 28mnbpd just to offset productiondeclines in mature fields, mostlyin non-OPEC regions.Meanwhile, global spareproduction capacity remains low(below 2mn bpd) and with 2-3mn bpd of current outputvulnerable to geopolitical risks,diversity of future supply ispivotal to oil price stability.

Global natural gas demandand seaborne LNG trade areprojected to reach over 4 tcm and450 bcm, respectively, by 2020and 2019, based on theInternational Energy Agency(IEA) figures. China, India andother emerging countries willlargely drive the demand surge asthey diversify away from coal-fired power stations.

Promising discoveries haveopened Africa up to a new waveof exploration. It has induced oil

majors and small- and mid-sizeWestern independents to playimportant role at a time whenaccess to global reserves is on thedecline or restricted, notably inthe Middle East and formerSoviet Union. NOCs areacquiring greater ownership,leaving IOCs in search ofprospective frontier acreage like SSA, which boasts asignificant resource base forreserve replacement.

In the wake of the 2007Jubilee Field discovery, offshoreGhana by Kosmos Energy, withrecoverable reserves of 2bnbarrels, IOCs began focusing onWest Africa waters off Liberiaand Sierra Leone and morerecently off Senegal’s coast. TheLiberian Basin consists of 30concessionary blocks, 17 ofwhich are from the continentalshelf to depths of between 2,500to 4,000 metres. Explorationinterest is also reported across

Given thesheer volume ofAfrican reserves,foreign energy and energy servicecompanies standto gain from newE&P activities”

Moin Siddiqi analyses the impressive hydrocarbon discoveries across Africa and the prospects fordeveloping these discoveries with a view to creating jobs, overcoming poverty and contributing

positively to growth across multiple countries.

COVER STORYISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 15

The East African Rift Valley has been a location ofserious hydrocarbon exploration since 2006. Im

age Credit: Justin Raycraft/Flickr

AFRICA’S FAST-EVOLVING

ENERGY LANDSCAPE

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Magnetrol International, Incorporated

1 3 09:14

the Sahel, from Taoudenni Basin(Mali) and Niger to Sudan andSouth Sudan. But ongoinginsecurity in the region andunfavourable fiscal regimes makefuture E&P uncertain.

New discoveries elsewhere inthe Gulf of Guinea and advancedseismic technologies continue toboost reserve estimates ofdeclining producers, notablyCameroon, Gabon and Congo-Brazzaville. Potentials exist inCameroon’s under-explored Eastand West Bakassi, Manyu andKombe-NSEPE Basins.Successful exploration in Brazil’ssub-salt acreage has encouragedIOCs to focus on Angola, Gabonand Namibia. These countriesshare geological structuressimilar to Brazil, where 10 to20bn barrels of ultimaterecoverable oil were found in2006/07 off the Brazilian coast inpre-salt formations.

Sizeable oil finds by HeritageOil and Tullow Oil during 2006-7in Uganda’s Lake Albert Basin ledto renewed exploration along theEast African Rift Valley, whichextends from Ethiopia andSomalia in the north andsouthward into Lake Malawi andcentral Mozambique. There isalso oil in the Congo (DRC), onthe other side of Lake Albert.Tullow in late 2012 discoveredheavy crude at Kenya’s LokicharBasin, with recoverable reservesestimated at 1bn barrels.

Ethiopia’s Ogaden Basinholds potential, while oil

discovery in two of Somalia’ssemi-autonomous states ofPuntland and Somaliland aregeologically promising. However,both lack thus far proper legaland regulatory frameworks todevelop new discoveries. TheUnited Nations warns, “Oilsearch in northern Somalia risksstoking tension”.

In natural gas, Mozambiqueand Tanzania remain the priorityof foreign majors. Colossal gasfinds off the coasts of bothcountries since 2010 representedone of the most excitingupstream exploration success ofrecent years. With subsequentdiscoveries, the two countries’combined estimated recoverableresources in the prolific RovumaBasin are reckoned to exceed 200tcf above total reserves ofVenezuela (198.4 Tcf). Moreover,East Africa’s new deepwater gas

resources are relatively easy toaccess – less than 60 miles fromshore – compared to ongoingE&P projects up to 200 milesoffshore in Australia.

Investing in deep and ultra-deep waters remains a risk, butthe potential for lucrativeearnings in under-explored areasof Africa is undeniable.According to Standard Bank,capex in SSA’s upstreamhydrocarbons sector could totalUS$1.5 trillion by 2030, providedfiscal regimes are internationallycompetitive and host countriesare politically stable, offeringsecure resource ownership rights.Such capex will range beyondjust exploration and extraction,and should create demand foroilfield services, such as subseaequipment and installation,procurement, construction,installation and operational and

professional services, includingproject finance.

These investment flows couldprove transformative forcountries and the wider region interms of new infrastructures andtechnology transfers. Forexample, the Lamu PortSouthern Sudan-EthiopiaTransport Corridor (LAPSSET),mega-project aims to linkmember-countries to a deep-water Kenyan port in Manda Bay,with a rail line, road networks,oil pipelines to South Sudan,Uganda and Ethiopia, as well asairports and an oil refinery.

Energy resources offer scopefor local benefit and economicdiversification. The average percapita power consumption inSSA (outside South Africa) isreportedly 180 kilowatts per hour(compared to a global average of313). With rapid urbanisationand economic growth in futureyears, ample natural gas reservescould meet the continent’s powerneeds more efficiently andenvironmentally sustainably thancoal-fired power plants usingheavy imported oil.

Mozambique’s hydrocarbonlaw, passed in August 2014,requires future gas projects tochannel a quarter of all energyproduced for the local market.Tanzania’s natural gas policy alsofavours reserving a large quantityof gas for domestic consumption.Presently, the Songas Ubungopower plant (fed by Songo Songogasfield) provides about one-third of Tanzania’s electricity.

Finally, energy resources canhelp integrate more labour-intensive sectors with thehydrocarbons industry, therebyreducing reliance on a singleprimary commodity. Nigeria inrecent years has developedseveral gas-to-industry projects,mostly in petrochemical andfertiliser business. The IndoramaEleme plant is poised to becomeSSA’s biggest petrochemicalproducer, using natural gas toproduce feedstock for plastics forexport and secondary industries

Mozambiqueand Tanzaniaremain the priorityof foreign majorswhen it comes tonatural gas, withcolossal finds offthe coasts of bothcountries”

COVER STORY ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM16

Sub-Saharan Africa: Oil and Natural Gas Reserves, 2015

Crude Oil Natural Gas

COUNTRY (Trillion cubic feet)(Trilion cubic feet)

ANGOLA 12,700 10.9

CAMEROON 400-1,000 4.8-6.0

CHAD 1,500 0

CONGO 1,600 3.2

COTE D’IVOIRE 0 1.0

EQUATORIAL GUINEA 1,100 1.3

GHANA 2,000 1.5

GABON 2,000 0

KENYA 600-1,000 0

MOZAMBIQUE 0 125-155.0 (est.)

NAMIBIA 0 2.2

NIGERIA 37,200 187.0

RWANDA 0 2.0

TANZANIA 0 57

SOUTH AFRICA 15 390.0

SOUTH SUDAN 3,500 0

SUDAN 1,500 0

UGANDA 2,500 0.5

Source: BP, EIA, Oil & Gas Journal, and official estimates.


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within Nigeria. Africa’s largest oilrefinery is being build by theDangote Group.

Nigeria is among the veryfew GTL producers besides Qatarand Malaysia. Its US$10bn EGTLfacility at Escravos (online mid-2014), operated by Chevron,

converts 325mn cubic feet/day ofnatgas into 33,200 bpd of liquids,principally synthetic diesel forcars and trucks.

The plant’s long-termcapacity, using the Fischer-Tropsch process and Chevron'sISOCRACKING technology,could be expanded to 120,000bpd according to sponsors.

In sum, Africa’s frontier areasoffer unparalleled opportunity indeepwater exploration andproduction, which requires hugecapex to bring new discoveries tomarket – prerequisite for meetingrobust energy demand over themedium to long-term.

Faltering oil prices have mademajor IOCs highly selective inallocating their capital, thus finalinvestment decisions on newAfrican-focused projects aresubject to delays – contingent on

the duration of the low oil pricecycle. Assuming oil prices andregular investment flowsnormalise over the next year,Africa’s untapped oil and gas

resources can help facilitatebroader industrial investmentbeyond the energy sector,creating new jobs and combatingpoverty in multiple countries.

COVER STORY ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM18

Lake Malawi is considered a potential oil bonanza for the eastern country.

Image Credit: Matthew and Heather/Flickr

Africa’sfrontier areas havemade major IOCshighly selective inallocating theircapital and finalinvestmentdecisions aresubject to delays”


http://www.cwcpnc.com/

S05 ORA 5 2016 - Special report East Africa_ORA Master Template - 2016 New 14/10/2016 15:32

http://www.agr.com/our-capabilities/tracs-training

ACCORDING TO EY’S2016 Africa AttractivenessProgramme: Staying theCourse, East Africa is

closing Africa’s FDI gap. Despitethe collapse of commodity pricesand some currencies in 2015,East Africa recorded its highestshare of FDI across Africa, 26.3per cent of total projects.

As well as investment inKenyan solar energy, PowerAfrica, a US government foreignaid programme, will invest in agas-to-power project. The USTrade and Development Agencyand Zarara Oil & Gas funded aUS$996,600 grant to assess thetechnical, economic andenvironmental aspects of theproposed Lamu gas-to-powerproject on Pate Island, adding50-200 MW of electricitygeneration capacity.

While Mozambique isregarded as the next big prospectfor East African hydrocarbons,Kenya may join the drive towardsoil and gas-driven prosperity, asexploration continues apace.Tullow, Maersk and Africa Oilplan to recommence drilling inthe South Lokichar oil basin bythe end of 2016.

In March, GigawattMozambique announced aUS$220mn investment intoMozambique’s energy sector, withstakeholders such as the WorldBank and Standard Bank. Theinvestment aims to leverageMozambican gas and it is hoped

that neighbouring countries willbenefit too.

South Africa’s Sasol is upbeatabout prospects in Mozambique,despite the country missing aloan repayment in May. Sasolreleased a statement to say theissue would not affect its US$1.4bn gas project. It owns 70 percent of the project, theMozambican government holds a

25 per cent stake via nationalcompany CMH and theInternational FinanceCorporation owns five per cent.The project lies about 600kmnorth of Maputo and the first of12 planned wells were drilled inMay 2016. Production isexpected by mid-2019. Access toenergy is an aim of the projectwith the first phase including an

oil, LPG and gas project adjacentto the Pande and Temane fields.

Uganda is also set to becomeanother major hydrocarbonsplayer. In April 2016, theUgandan and Kenyangovernments agreed to developseparate oil export pipelines andTullow is working with Total.CNOOC and the Ugandangovernment to develop resourcesvia a Uganda-Tanzania pipeline.

In August 2016, progress wasmade when the Ugandangovernment approved the fielddevelopment plans and issuespetroleum licences. A refinery ispart of the Tullow-Total-CNOOC partnership.

While Mozambique is regarded as abig prospect for hydrocarbons, Kenyamay join the drive to oil and gas-drivenprosperity”

Alleviating energy poverty is set to be a driving factor in moving East African hydrocarbondevelopment forward, particularly in Kenya and Mozambique. Uganda, meanwhile, makes

progress with pipelines. Oil Review Africa editor, Georgia Lewis reports.

EAST AFRICA LEVERAGES OIL AND GAS FOR

ACCESS TO ENERGY

EAST AFRICA ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM20

Kenya’s Pate Island could be the site of one of the most important East African gas-to-power developments in the coming years.

Image Credit: E

rik (H

ASH) Hersm

an/Fllic

kr



http://rscc.ru/

IN THE BACKDROP of thefall in oil prices, even asmany oil and gas companiesare cutting back on

exploration spending,exploration activity in the WestAfrican countries of Senegal andMauritania has attracted globalattention.

It was in 2012 that US basedoil company, Kosmos Energy,acquired three blocks offshoreMauritania. Early 2D and 3Dseismic studies conducted by thecompany revealed a very largegeological gas fairway that beganin Mauritania and stretchedacross the maritime boundaryinto Senegal. Kosmos began itsexploration shortly afterward andsince April 2015, the companyhas drilled five consecutive wellsin the region with a 100 per centsuccess rate: Tortue-1, Marsouin-1, Guembeul-1, Ahmeyim-2 andTeranga-1.

The company’s explorationactivities revealed a prolificinboard gas fairway that extendsroughly 80 km north of themaritime boundary betweenSenegal and Mauritania and 80km south of the maritimeboundary, stretching from theMarsouin-1 well in Mauritaniathrough the Greater Tortue areaon the maritime boundary to theTeranga-1 well in Senegal.According to the company, it hasdiscovered a gross Pmeanresource of approximately 25 tcfand estimates the fairway mayhold more than 50 tcf of resourcepotential. The discovery at theGuembeul-1 well has beendescribed as one of the mostsignificant finds for the

West African gas industry inseveral years.

“Tortue-1 found the gas,Guembeul-1 confirmed that thegas was on both side of themaritime boundary and Ahmein-2 confirmed that there wassufficient gas resource tounderpin an LNG gasdevelopment project,” saidThomas Golembeski, vicepresident of corporatecommunications at KosmosEnergy describing theexploration journey.

Sharing the resourceWhile this gas discovery holdsgreat potential for the economiesof both nations, as thehydrocarbon resource is split

almost exactly in half byMauritania’s border with Senegal,the question of resource sharinglooms large. To gain benefit fromthe resource, both governmentswill have to work closely togetherand co-operate over the costs andresults of the development, aswell as over security, social andenvironmental issues.

According to Golembeski,both governments are ‘highlymotivated’ to see this projectcome to completion and haveexpressed willingness to worktogether to develop the resource.

“Both Mauritania and Senegalrecognize the many benefits theAhmeyim/Guembeul gas projectand the large gas discoveriesoffshore will bring to both

Bothgovernments are‘highly motivated’to see this projectcome to completionand have expressedwillingness to worktogether to developthe resource.

Mauritania and Senegal are taking steps to work together to unlock the potential of large gasdiscoveries on the maritime border between both nations. Thomas Golembeski, vice president of

corporate communications at Kosmos Energy discusses the oil company’s gas project on themaritime border in an exclusive interview with Oil Review Africa.

REACHING OUT ACROSS

BORDERS

Feature ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM22

The gas discovery on the maritime border between the two nations could holdup to 50 tcf of resource potential.

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countries over the long term.President Aziz (Mauritania) andPresident Sall (Senegal) fullysupport the project and havemade public statements abouttheir desire to see it move quicklyand their willingness tocooperate to make it happen,”Golembeski noted.

Senegal’s energy ministerThierno Alassane Sall told statetelevision this year after thefind, “This is the best newspossible for our country.” Headded that it would allowSenegal “to be self-sufficient inenergy and also export gas tothe rest of the world”.

The working groupTo facilitate co-operationbetween the two nations and totake the project forward, aworking group has been formedwith the representatives of thenational oil companies,representatives of the ministriesand Kosmos. The working grouphas been meeting regularly sinceNovember 2015 and have alreadyagreed upon on the developmentconcept and the location for theoffshore floating LNGinfrastructure, which is on themaritime border between the twocountries, about eight kilometresfrom the coast to houseprocessing facilities and gasproduction from the field.

The working group hasagreed upon a small-scale phasedapproach for the development ofthe resource that, according tothem, represents the fastest andmost competitive way for the twocountries to begin initial LNGexports and deliver early gas tothe domestic markets. Thecurrent development concept –which is still being refined – aimsto produce approximately 8 tcf ofgas over 30 years. According toGolembeski, this small-scale,phased approach is better thanalternatives as a larger scaleproject would add 5-10 years tofirst gas production andmarketing a large volume ofLNG, such as 10 metric tonnes

per annum or more, would delay the development as well as delivery of gas todomestic markets.

Describing the workingconcept, Golembeski pointed outthat “successful execution of thefirst phase of development – onan accelerated timeline – willenhance the marketability of theremaining gas in the basin,which will make it easier tofinance subsequent phases ofLNG exports.”

Intergovernmentalcooperation agreement “We have made tremendousprogress in a short period oftime,” Golembeski saiddescribing progress made withcooperation between the twogovernments.

The working group hasdrafted an intergovernmentalcooperation agreement betweenthe two nations for thedevelopment of the project.

The agreement is based onthe Frigg Agreement of 1976between Norway and the UKand will provide for a 50-50 splitof the resource in the beginning,with a mechanism to re-determine the interest based onactual production data once gasbegins to flow. The agreement iscurrently being reviewed by thetwo governments.

“Once that review is done, itwill be sent to the respectivelegislative bodies for approvaland the presidents will sign itand we are hopeful that we willhave the intergovernmentalcooperation agreement signedby the end of the year,”Golembeski said.

Golembeski added thatKosmos will soon be starting anenvironmental and social impactassessment (ESIA) to ensure thesite and development conceptare environmentally sound, andthat any potential social impactsare properly addressed. At thesame time, work continues tovalidate the technical viability ofthe site selected.

The project is targeting firstgas in early in the next decade.

A promising future Golembeski explained that apartfrom pursuing the gas project,the company also has plans tocarry out further exploration inthe outward sections of its blocksin Mauritania and Senegal,because it believes that there ismore hydrocarbon potentialthere including possibly oil.

Discussing the future of thedevelopment project, Golembeskisaid, “We are looking to bring ina partner because thisMauritania-Senegal basin that wehave now opened is very large

and we expect that it will geteven bigger.” The company is inconversation with a number ofcompanies who are interested inpartnering with them for boththe gas projects and well as theforward exploration programme.

Golembeski is confidentabout the company’s decision topursue exploration in the currentbleak hydrocarbon market. “Wesee a demand width opening upbeyond 2020-21 time-framewhere we can get our gas into themarket and it will be competitivewith gas anywhere in the world.As far as forward explorationplans go, we see deep waterexploration has a role to play infuture energy supply and now isa good time to be exploringbecause costs have come downfor drilling activities and witheveryone else in the industrycutting back on explorationprogrammes, we see that as an opportunity.”

The project istargeting first gasearly in the nextdecade.

Feature ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM24

Map representing Kosmos Energy’s oil wells in the Senegal-Mauritania border region.

Image Credit: K

osmos Energy


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CÔTE D’IVOIRE ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM26

ACCORDING TO BMIResearch, the BanqueCentrale des Etats del'Afrique de l'Ouest

(BCEAO) will hold rates firmuntil the end of 2017 as the WestAfrican Franc’s peg to the Euroand external pressure keep pricegrowth low. This will encourageinvestment in the eight countriesof the Union Economique etMonétaire Ouest Africaine.Investors are expected to favourCôte d’Ivoire and Senegal in the

coming years given the stronggrowth and fiscal managementsupported by BCEAO policy.

The hydrocarbons sector issupporting the growth forecast.Two new gas-fields were broughton-stream in block CI-27offshore Cote d'Ivoire followingthe completion of a four-year,US$850mn development led byFoxtrot International.

African Petroleum holds a 90per cent operating interest inoffshore licence CI- 509 and a 45

per cent non-operating interestin offshore licence CI-513. Theremaining 10 per cent in CI-509is held by Petroci, the NationalOil Company of Côte d’Ivoireand the remaining 55 per cent inCI-513 is held by Ophir Energy(45 per cent) and Petroci (10 percent). Investment expertProshare predicts Brent crudewill average US$53 per bbl in2017, compared to US$46.5 in2016. As oil prices pick up, petrolprices are expected to rise too.

Investment in theWest African nationis expected to lead togrowth in thehydrocarbons sector,with help from theeffective monetarypolicy supported bythe central bank.Sejal Bhat reports.


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Turbulence in Madagascar has caused numerous issues, both socially and within its energysectors. Kestell Duxbury reports on the country’s future in oil and gas.

MADAGASCAR

FUTURE ON THE BRINK

MADAGASCAR ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM28

THE EXXONMOBIL ANDSterling exit from theMadagascan block sparkedinitial uncertainty, then

Madagascar Oil's shareholdersdeciding to leave AIM andseeking emergency fundingcaused further doubt about thereserves in the region. J.VLalaharisaina, minister of mining

and petroleum said: '"Exxon hasleft Madagascar because it wasnot convinced by the potential of the oilfield." He suggested thatsmall and medium-sizedcompanies may be interested in the sites.

Despite this, Africa Oil andPower is more optimistic of thepotential for the oil and gas

sector. The increasing politicalstability may encourage moreforeign investment and intereston top of the 16 internationalcompanies working under the 23licenses currently. It is thoughtthat there are 20bn barrels of oilthroughout Madagascar and by2018, the country should beproducing 6,000-10,000 bopd.

There is little movement inthe region at the moment, butmany medium-sized companiesare in a position to benefit theregion as long as the short terminfrastructure limitations aredealt with so the gains can berealised in the longer term, aslong as the political landscapestays constant.


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How did PFL EngineeringServices Limited start andwhat was the motivationbehind it?The company started as a normalNigerian company established bya team of experienced,committed and dedicatedNigerians that saw the need tooffer quality service to the oiland gas community. The mainmotivation was to set up abusiness that will be a platformfor Nigerians to grow in the oil and gas industry and provideunrivalled services that will showcase the physical and technical strength of anaverage Nigerian.

What services are proving themost popular among yourclients and why do you thinkthis is so?While we were planning the re-engineering of the company,we wanted to diversify to areasthat will remain active for a longtime, not minding the cost ofcrude, and realised thatmaintenance will always be keyin the industry because IOCsmight reduce or cancel greenfieldprojects, but will always need tomaintain their brownfield assetsso as to remain in business. Sowe re-organised and developedourselves in the inspection andmaintenance business, which iskey for any asset owner that still wants to maintain high level production.

Is there more awareness of theimportance of safety in theNigerian oil and gas industry?Yes, there is a lot of emphasisnow by all the IOCs operatinghere in Nigeria, and it is a goodthing as we want our people tobe safe and well. There are now

minimum standards everycompany must attain to be ableto execute projects in theindustry. On our part, we takesafety very seriously and havegone ahead to invest and developour operating system by securingISO 18001:2007 from Bureau

Veritas UK. This proves that ourlaid down processes andprocedures on safety conformswith the highest internationallyrecognised safety standard.

How important is it for your services to encourageoperators to meet local contentrequirements in Nigeria?We are a 100 per cent indigenouscompany and we feel verystrongly about local content andencourage it as much as we can.We have ensured we have fullinternational certifications forour company operations andmanagement. We are fullycertified in ISO 9001: 2008,14001:2007 and 18001:2004, allfrom Bureau Veritas UK, whichgives us a fully compliantintegrated management system(IMS). We have developed oursystem in such a way that we willbe able to compete with anycompany anywhere in the world.We have made ourselves attractiveso as to ensure that IOCs do nothave to bother about sourcing forinternational companies torender our scope of service herein Nigeria and the sub-region.

What are the commonchallenges PFL Engineering isfacing in the oil and gasindustry, and how do youovercome them?One of the challenges we face on adaily basis is the price war thathas erupted since the cut back in

We are a 100 per cent indigenouscompany and we feel very strongly about local content and encourage it as much as we can”

Preye Berezi, CEO of PFL Engineering Services, talks to Oil Review Africa about the importance of safety, Nigerian local content requirements and meeting the highest

international standards as the company expands into Ghana.

PROUDLY NIGERIAN AND EXPANDING INTO

NEW AFRICAN MARKETS

INTERVIEW ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM30

Preye Berezi says that international certifications are important to ensure thecompany stands out in the industry.

Image Credit: P

FL En

gineerin

g


the price of oil. Everyone is nowcutting costs as the IOCs aretrying to make their operationsleaner. You have to be reallycareful as you do not want cost-cutting to impinge on your qualityand safety during operations.

We are lucky because weinvested in the essentials of ourbusiness, such as personnel,certification and equipment, atthe right time so we are able tobe very flexible with our prices.

Another area that is still achallenge is our tendering processin Nigeria. Apart from the factthat it takes too long to get aproject rolling, IOCs and especiallygovernment regulators have toput in more effort and be moreupright in the pre-qualification ofcompanies for projects.

We still have too manyunqualified companies biddingand qualifying for contracts thatthey have no technical strengthon because they have friends inhigh places. This will notencourage the need for Nigeriancompanies to develop theiroperating systems.

Recently PFL received theLloyds Register-approvedservice supplier certification.How important arecertifications to the oil andgas industry in Nigeria?We have not only got our LloydsRegister-approved certification,but we also have ABS and we areabout to secure DNV. These arethe type of internationalcertifications which make youstand out in the industry, and weaim to be the best.

Certifications are importantbecause they show the strengthyou have technically. It’s likequalifications you gather fromgoing to school.

If our company was a student,we would have been talkingabout been an AssociateProfessor with the class ofcertifications that we have beenable to secure over the years aftergoing through rigorous audits byinternational bodies and agencies.

What plans does PFLEngineering Services have forthe future?We look into the future with somuch confidence andenthusiasm. Like I said earlier,we have invested on theessentials of the business a whileago, and are now uniquelypositioned to offer first classservice in our chosen fields.

Furthermore, we are presentlyexpanding our operations nadtraining base in Port Harcourt tooffer valve maintenance services,so we are setting up a valvemaintenance workshop.

This is important because werepresent one of the biggestmanufacturers of specialist valvesin the world, IMI CCI of theUSA, and we are also channel

partners to Draeger Safety, whichis another household name in theworld of safety and firefighting.To service our safety clients, weare setting up an ultra-modernsafety centre in Port Harcourtwhere we will be able to calibratesafety equipment such as gasdetectors, BA sets and divingsets. We have so far achieved 70per cent completion and plan tocommission these two projects inDecember this year.

We have invested heavily inequipment and construction toensure we can compete with thebest in the business. We arelooking at new innovations andwe have recently added dronetechnology to our profile. Webelieve to be the best you mustkeep up with technologicaldevelopment.

Recently, we exported ourbusiness beyond the shores ofNigeria by establishing in Ghana.We plan to work with reasonableand committed Ghanaians andset up a training center in Takoradi,Ghana, early next year.

INTERVIEWISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 31

Meeting Nigerian local content requirements is an important priority for PFLEngineering. Preye Berezi says this is to be encouraged wherever possible and thatthe company has made itself attractive to IOCs so they do not need to useinternational companies to meet their needs in Nigeria and the sub-region.

PFL Engineering Services Ltd. is an independent company, established in 2002 as Perfect Facilities Ltd. The main focusof the company was to provide skilled technical manpower and logistics support services to the oil and gas,petrochemical, energy and marine sectors. In 2008, the company was re-engineered and the name was changed to PFLEngineering Services Ltd. The scope of service also increased from technical manpower supply and logistics to access,inspection and maintenance (AIM); as well as technical manpower and training services.

After starting off as a company providing technical manpower, the focus then was to provide top quality technicalmanpower and logistics support services to the oil and gas community in Nigeria. Today, PFL has diversified its businessand now providing AIM and repair services. The company specifically assesses, inspect, maintaina and repairs any assetthat is used for oil and gas exploration and production, as well as the refining of petrochemicals, be it an FPSO, drillingrig, mobile production unit, service vessels, refinery, pipelines, storage tanks etc.

Under the AIM business, we specialise in accessing difficult areas, confined spaces and inaccessible areas such ascantilever helidecks and platform bridges. PFL utilises its specialist knowledge in preparing solutions which give theclient the best and safest access using rope access, scaffolding and tension netting. After successfully accessing an area,PFL staff then carry out inspection, conventional or advanced inspection, utilising solutions like non-destructivetesting (NDT), lifting equipment inspection, aerial inspection (with the use of drones), based on the findings andreports, PFL can then prepare a detailed scope of work for the client. Following on, the company can then providemaintenance and repairs on areas of concern as identified in our scope of work, utilising fabrication, blasting andpainting, coating, passive fire protection and emergency response services.

PFL also provides training services and this is considered to be the most fulfilling part of the business. This is becausewhile providing manpower to IOC’ to support them in the execution of their various projects, PFL had the opportunityof speaking with project managers in the industry and understanding the sort of skill sets and qualifications they werelooking for. Unfortunately, most Nigerians didn’t have the required training and qualifications required to suit thoseroles so PFL was compelled to fly in expatriates from other countries to carry out specialised services in Nigeria. Thisneed, and the advancement of the Nigerian Local Content Act, motivated PFL to set up its training centre in PortHarcourt. The training centre is set up to international standards with full accreditation from international accreditingbodies, such as Irata, LEEA, ASNT, NACE and OGTAN, to train on areas like rope access, NDT, scaffolding, blastingand painting, lifting inspection. Bcause the company is accredited by world governing bodies, the certificates that areissued to all trainees can be used in any country in the world.

Image Credit: P

FL En

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ULTRASONIC LEVELMEASUREMENT is anadvanced technology thatcan be used as an

alternative to the traditionaltuning fork or vibrationtechnologies in liquid levelapplications. One of the world’sleading oil and gas companiesneeded a reliable low level alarmin a propane stripper. Theirrefinery had been using tuningfork or vibration technology, butthis technology failed due to thelow density of the liquid propane(429 kg/m3 or 0.429 SG).Magnetrol proposed its Echotel®Model 961, an ultrasonic levelmeasurement technology that isimmune to low or changingdensity without the need forcalibration or reconfiguration. Itoperates independent of varyingdensity, dielectric, and thermalconductivity.The 961 allowed for reduced

wiring costs by providing analternative to relays. It is a two-wire, loop-powered device with acurrent output. The currentoutput shifts from 8 mA duringnormal operation to 16 mAupon level alarm. If a faultcondition or failure occurs, thecurrent will go low or high perNAMUR NE 43. A failure can besimulated as well through amanual self-test that is availablefrom the bezel. Plant personnel receive

unparalleled visibility into theoperation of the 961 to prevent

undetected level alarms, therebyincreasing the efficiencies andsafety of the refinery.Included in the safety

requirements of the refinery wasthe need for Safety IntegrityLevel (SIL) 2 rated devices. Both

the single-point 961 and thedual-point 962 are suitable foruse in SIL 2 loops. The 961/962has unique diagnostics to assistin troubleshooting should afailure occur. Aside from themanual self-test, the

microprocessor in the electronicscontinuously monitors all self-test data. Should a fault occur,the microprocessor candetermine whether themalfunction is due to theelectronics, transducer, or thepresence of environmental noise.The primary sensors in thetransducer are the crystals andthey are continuously monitored.For accessibility, safety, and easeof use, the electronics canoptionally be remote-mountedfrom the transducer.The success of the Magnetrol

Echotel 961 in the low densitypropane stripper has opened thedoor for other ultrasonicopportunities, such as leveldetection of sour water in an acidgas knockout drum.

To learn more about applicationsand benefits of ultrasonic levelmeasurement technology, visitechotel.magnetrol.com.

This advancedtechnology can beused as analternative totraditional tuningfork or vibrationtechnologies inliquid levelapplications”

Magnetrol is leading the way with advanced ultrasonic level measurement technology for liquid level applications. An international oil and gas company has experienced the

benefits of this technology.

ULTRASONIC LEVEL MEASUREMENT AS A

NEW ALTERNATIVE

TECHNOLOGY ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM32

The Magnetrol Echotel Model 961 is revolutionising liquid level measurement for oiland gas operators.

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http://www.hyprops.com/

http://www.hyprops.com/

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LIVING AND WORKINGoffshore presents challengesfor operators in terms ofensuring quality of life for

employees. From meetingcatering challenges so that alldietary requirements are met toensuring sleeping arrangementsare comfortable and appropriateand many more besides, offshorequality of life is important forstaff morale and retention.Leading services company,

Sodexo, conducted the OffshoreEmployee Quality of Life study. Itis the culmination of work thatbegan in 2009 by identifyingquality of life factors. The studywas first launched in 2012, andfindings from the fifth edition ofthe study will be released soon.“The biggest difference

between offshore and other workenvironments is that employeesare in the workplace virtually 24hours a day – in an enclosedarea, surrounded by the sea,” saidAlice Hoffman, Sodexo vicepresident of global businessdevelopment, Offshore andMarine. “Even when compared toother remote locations, such asmines, the offshore setting is veryextreme because there is no wayto escape – people can end upfeeling restrained. There aremany other contributing factorssuch as lack of privacy, isolationand monotony.”Trends have emerged from

the studies, according toHoffman. These include more

personalised expectations fromemployees, especially for foodand leisure. She cited healthy

eating: “If we look at healthyeating, for example, this is a verybig trend that we see around theworld. But if we examine thefigures more precisely, thematurity towards nutrition orhealthy eating varies quite a bitbetween generations and regions.We need to be careful not toequate big trends withstandardisation because while itmay exist everywhere, it does notimpact everyone in the same way.As younger generations are, ingeneral, more educated orinterested in the impact that dietcan have on the body, they tendto ha ve higher expectationsaround healthy eating options.”An example of a personalised

catering service Sodexo isoffering is integrating a paid

premium coffee service inaddition to the standard coffee asthe studies found people arewilling to pay for such services.Operators are seeing the

advantages of improving offshoreliving quarters, with morewelcoming living quarters as ameans of improving the mood ofemployees, and this has a knock-on effect on safety, engagementand productivity.“Aesthetically, rigs are very

clinical and standardised and allrooms are exactly the same –constructed with steel and whiteplastic,” said Hoffman. “But again, this survey showsthat the needs and expectationsaround creating a comfortableand welcoming environment are growing.”Hoffman said the study raised

client awareness of quality of lifeissues and allowed the voices ofemployees to be heard.“A great example of this goes

back to dining expectations,” saidHoffman. “Our clients oftenthink that their employees wantall-you-can eat meal options; butour survey shows that only 29per cent of the workforce wantsthis, versus 45 per cent whowould really like to have accessto a healthier food offer.Presenting these trends to ourclients surprises them and makesthem think and react differently.The wow effect is amazing.”

www.sodexo.com

Maintaining high standards for offshore employees, such as catering and accommodation, haspositive effects for operators in terms of safety, engagement and productivity. Alice Hoffman,from Sodexo, shares her views on the importance of offshore quality of life. By Georgia Lewis.

ENSURING QUALITY OF LIFE FOR

OFFSHORE EMPLOYEES

OFFSHORE

Working offshore can be an isolating experience for oil and gas employees.

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Alice Hoffman outlines the importanceof quality of life for offshore staff.

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http://www.hytera.com/

WITH NEARLY TWOthirds of all globalclaims, fire andexplosion is the

leading cause of “businessinterruption”, according to thelatest report by insurance giantAllianz. And it’s no surprise thatit’s the same story in the energysector with “fire and explosion”standing as the number onecause of loss – by both thenumber and the value of claims.

So what measures are theleading fire safety experts takingto reduce the risks and lossassociated with fire, and what isthe latest thinking in terms ofbest practice and innovation?

Steve Watkins, a seniorconsultant for Falck FireAcademy, the world’s leadingprovider of workplace-relatedsafety courses and safety services,with a focus on the offshore andmaritime sectors says: “Firesafety will be increasingly

controlled by smart, digital fireand gas and smoke detection”. Healso predicts we will see more oiland gas process installations withhigh risks of gas release beingequipped with “fully automaticfire extinguishing systems”.

Andy Gibbins, CEO andfounder of the UAE-based firmGLAS, which provides high levelconsultancy to the oil, gas andpetrochemical sectors, believesthe real solution is to prevent“loss of containment”. “Thismeans the prevention offlammable liquids and gasesfrom being released from pipingand equipment”. According to

Gibbins, this solution comesfrom good design andoperational standards.

Nikkii Ng, a principalconsultant at Lloyd’s Register(LR), a global engineering,technical and business servicesorganisation, providing risk andconsultancy services, believesthat best practice beings with theright approach from the outset.She says: “The best time to applythe principles of inherent safetyis during the early stages of adesign”. She argues that firmsneed to step back and visualiseoffshore platforms for what theyreally are: “Floating cities that

produce highly hazardouschemicals 24 hours a day.”

That is why LR has launcheda Joint Industry Project (JIP) toinvestigate how best to reducethe potential explosion and firerisks from hydrocarbon leaks ingas turbines. “Companies anduniversities across the world arecollaborating in this newinitiative to improve awarenesson how to optimise safetydesign.” Some of thecollaborators on the project are:ConocoPhilips Skandinavia AS,Maersk Oil and Gas AS andStatoil AS, along with GeneralElectric O&G.

Fire safety willbe increasinglycontrolled by smart,digital fire and gasand smokedetection, as wellas fully automaticfire extinguishingsystems”

Best practice fire safety management is essential to protect employees, reduce downtime and toavoid costly insurance claims. Amalia Illgner spoke to experts in the field about the latest

innovations to help oil and gas operators.

MINIMISING BUSINESS INTERRUPTION WITH GOOD

FIRE SAFETY MANAGEMENT

SAFETY ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM36

A platform caught fire in Bayou Sorrel, Louisiana, in March this year while in the process of being dismantled.

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But it’s not only design andinfrastructure innovation thatcan be improved. Ng is clear thatinfrastructure “assets” are nowgenerally safer by design and it iswidely accepted by the modernsafety expert that “at least 80-90per cent of major incidents” arecaused by human factors. Shesays that training and managing“human factors” aboard offshoreinstallations is as crucial as theright infrastructure andmanagement systems. “A positivesafety culture is essential,particularly in an environmentwhere you have long, demandingshifts, difficult workingconditions and a very highpotential for fatigue.”

Watkins, who is also a formerUK fire officer with more than20 years’ experience, believesmajor global incidents such asDeepwater Horizon has made

firms re-think staff training. Hesays that previously there wereonly fire suppression systemsinstalled to the regulationrequirements. But now, he says,there is more emphasis onquality training to deal withcredible scenarios. “A goodexample is the Management ofMajor Emergencies (MOME)training for the offshoreinstallation managers (OIMs) onoffshore installation.”

But Ng says thatunderstanding the “humanelement” is complex and shethinks “we are only beginning torecognise the influence of theworkforce in efficient - andtherefore safe - operation ofoffshore assets”. But, she says,there are clear trends emerging.

She says the best firms are re-thinking how they promote their“positive safety culture”. This hasresulted in innovative ways ofapproaching training. “Theemphasis is shifting away from areliance on the deployment ofcompany ‘safety police’ in favourof employee engagement toolssuch as incentives, which giveworkers a stake in the process.”

However, quality training is asignificant investment and thedrop in the crude oil price hasaffected profitability in allcompanies. Gibbins believes thisis a “serious challenge” for theindustry across the Middle East

and Africa. “Companies havebeen forced to make budget cuts,which have impacted on staffinglevels, investment anddiscretionary spending on thingssuch as training.”

Gibbins sees a worrying trendin the Middle East and Africa.“Across both regions, companiesare reducing numbers of highlyexperienced expatriate staff. Thismeans that a lot of knowledge isleaving companies. Thiscoincides with cutbacks intraining.” He is worried about the

risk of falling standards. “We arealready seeing increasedincidents of ‘force majeure’associated with safety issues, being reported bycompanies – indicatingunforeseen loss of ability tosupply to their customers”.

Watkins is equally concerned.He says that “training ofpersonnel is sometimes seen as‘lost money’. But he is remindedof the saying “if you thinktraining is expensive, try a real incident”.

The best firmsare re-thinking how they create a positive safetyculture and thishas resulted ininnovative ways of approachingtraining”

SAFETYISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 37

Lessons have been learned from the Deepwater Horizon disaster in 2010.

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http://www.unitedsafety.net/

THE SOCIETY OFPetroleum Engineers(SPE) held their annualtechnical conference in

Dubai. Multiple speakersaddressed the event on enhancedoil recovery, with the focus onchallenging oilfields particularlyrelevant for many Africanoperators. Data analytics can alsohelp operators work moreefficiently and thesepresentations were interesting foroperators from around the world.

Enhanced oil recovery(EOR)Sunil Kokal, Modiu andAlmohannad Alhashboul,representing Saudi Aramco, gavea presentation on the design andimplementation of the first CO2-EOR for demonstration projectin Saudi Arabia.

While Saudi Arabia will notrequire EOR for decades tocome, this Saudi Aramco projectis still an important one as itdemonstrated the feasibility ofsequestering CO2 through EOR,and using it as grounds to testnew monitoring and surveillancetechniques. The project had twocomponents – the actual EORprocess, which took part in asmall part of an oilfield, and theCO2 capture plant.Main objectives of this project

include the estimation of

sequestered CO2, determinationof incremental oil recovery, andaddressing risks anduncertainties, such as migrationof CO2 within the reservoir andoperational concerns. It isestimated that around 40 percent of the injected CO2 will besequestered permanently in thereservoir.The project uses 40MMscf/d

of CO2, which is being captured,processed at an existing facilityand piped about 85km to thefield location. An infill line drive

has been used to take advantageof the east-west fluxes in thefield. This includes a row of fourinjectors and four producers, andobservation wells for monitoringand surveillance. CO2 is injectedinto a water-alternating gas modeand the monitoring andsurveillance programme has beenimplemented to evaluate theperformance. This also deploysnew technologies, such asseismic, inter-well tracers.gravity, geochemical samplingand analyses.Another presentation involved

representatives from fourcompanies. Ransis Kais fromApache Corporation, VidarMathiesen and Haavard Aakrefrom InflowControl, GlennWoiceshyn from AbsoluteCompletion Technologies, andAmr Elarabi and Ricardo

The Saudi Aramco enhanced oilrecovery project was made up of twocomponents – the actual EOR process,and the CO2 capture plant”

SPE ENGINEERS DISCUSS

EOR AND DATA ANALYTICS


Saudi Aramco will notrequire EOR for sometime, but the company isstill looking ahead withresearch.

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Hernandez from Schlumberger,collaborated on an EOR waterand CO2 injection scheme project.The project’s focus was on the

significant challenges presentedby short-circuiting of CO2 gasand water between injectors withEOR schemes that utilise CO2and water injection. This canoften leave a significant trail ofoil behind. The presentersdescribed to the conference thedescription and results of a fieldtrial of new downhole flowcontrol technology designed toprovide autonomous inflowcontrol of produced fluids fromeach zone in multi-zone wells.The new technology deployed

by the engineers involvedintegrating an autonomousinflow control valve (AICV) anda conventional inflow controldevice (ICD) in a unique three-position sliding sleeve, shifted bycoil tubing to allow performancecomparison between the twodevices. The AICV was designedand lab-tested to selectivelychoke back or shut off flow offree CO2 gas and high watercut.It was found that reservoir

sweep was significantly improvedand higher oil production wasyielded with the AICV. A joint project by Total ABK,

Total SA and Total US waspresented on offshore chemicalEOR pilot project in a high-salinity, high-temperatureenvironment. The paper wasbased on a 2014 surfactant-polymer one-spot pilot offshoreto test the effectiveness of in-house-developed surfactantmolecules to mobilise trapped oil.The paper is the culmination ofseveral years of R&D and focusedstudies on an offshore light oilfield of the United Arab Emirates. The EOR options considered

were water-based techniques,either by optimising thecomposition of the injected wateror by using chemicals; andtertiary gas injection, preferablymiscible injection, to obtain asignificant decrease of theresidual oil to water, with CO2

and carbon gas being considered.It was the world’s first pilot ofthis type in in such harshoffshore conditions. The pilot was considered

“quite successful” because it wassafely conducted, and it targetedthe development of EORchemicals able to withstand lowinterfacial tensions, as well ashigh salinity and temperature.The pilot concluded that “verysignificant” desaturation wasproven by two differenttechniques, but some injectivityissues were still faced. A multi-well pilot will be the

next step in order to demonstratethat the chemical formulationcan propagate efficiently from aninjector to a producer, mobilisingoil bank that is observable at theproducer or producers. This sortof pilot would also providecalibration data for modellingand upscaling to larger fieldimplementation.

Data analyticsOn behalf of the Abu DhabiCompany for Onshore PetroleumOperations, Richard MohanDavid gave a presentation on an

approach towards establishingunified petroleum data analyticsfor enabling data-drivenoperations decisions.The presentation highlighted

that operators need to harnessdata analytics to identifypatterns, trends, correlations, andforecasts from vast petroleumdata to extend the present limitsof the digital oilfield. Thisincludes exception-basedsurveillance, case-basedreasoning, and condition-basedmonitoring in order to facilitateadvanced monitoring andstrategic decision-making.David’s presentation advised

systematic capture, storage and

management of data, integratingand embedding data analyticsinto the mainstream sub-surface, drilling, production andoperations workflows, whichincludes reservoir monitoring,drilling and productionoptimisation. He went on to say that data

analytics technology blendstraditional data analysis withsophisticated algorithms andbusiness rules for processinglarge volumes of diverse datathrough an integrated dataanalytics environment (IDE) .Data governance is essential toIDE to ensure clear ownershipand responsibilities as theaccuracy of the results are asgood as the quality of the data. An integrated data analytics

platform enables integratingE&P workflows and dataanalytics to enhance operationsmonitoring, predict wellproductivity, identifyperformance patterns and KPI, improve reservoir recovery,and predict equipment failure, towards achievingcontinuously optimised oilfieldperformance.

Operatorsneed to harnessdata analytics to identify patterns, trends,correlations, andforecast from vastpetroleum data”


Leveraging data through accurate analysis and easy access is more important than ever for oil and gas operators.

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Phillips


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TO REFLECT THEchanging needs of theindustry, DNV GL hasworked together with its

industry partners to update tworecommended practices (RP).The first for corroded pipelines(DNV-RP F101) and the secondfor integrity management ofsubmarine pipeline systems(DNV-RP-F116).

The updates have beendeveloped through thecompletion of joint industryprojects (JIPs). The revisionsaim to further support thedecision-making processesrelated to maintaining theintegrity of pipeline systems inthe following areas: • Extension of in-serviceoperation.

• Costly repairs andreplacements.

• Long-term planning ofactivities based on balancedevaluations of both technicaland non-technical issues.

• Continuous improvement ofintegrity managementsystems.Anne Britt Høydal, principal

engineer – pipelines & materials,DNV GL Oil & Gas, says: “By itsvery nature, the pipeline sector isconstantly evolving to meetregulatory requirements, addresstechnology advances and react toan often volatile economicmarket. Likewise, recommendedpractices must keep ahead withthese changes.

“The latest revisions to twoRPs for the pipeline sector willhelp ensure that best practice isadhered to and that decision-makers have the mostappropriate guidelines at theirfingertips.”

First issued in 1999, the latestupdate to DNV-RP F101 includesa new assessment methodologyon how to estimate the pressureresistance of a pipelinecontaining long axial grooving(the methodology is alsoapplicable for pipelines withother patterns of internalcorrosion), and assessment of internal corrosiondevelopment with time.

Updates have also been madeto achieve better compliancewith the newest edition of theoffshore standard DNV-OS-F101rev. 2013-10, e.g. with regard topressure definitions andterminology, characteristic

material properties, partial safetyfactors and fractile values, andsupplementary materialrequirements.

Integrity management isclimbing further up the agendaas the industry looks to get themost from life extension ofageing pipelines. Corrosion inparticular poses a major threatto these pipelines. Revisions toDNV-RP F101 aim to improvecorrosion defect assessments,through thorough probabilisticevaluation, corrosiondevelopment evaluations andpressure resistance calculationsaccounting for system effects.

The February 2015 revisionof DNV-RP-F116 provides morecomprehensive guidelines oncarrying out risk assessments.Guidelines regarding integritymanagement reviews as well asrecommendations for identifyingkey performance indicators have

also been revised and updated.These can be used to furtherdevelop risk assessment methodsfor company governingdocumentation.

“The listed indicators in theRP are based on a combinedintegrity management andbarrier philosophy mindsetwhere barriers to risk can beseen as preventative andreactive. The updated RPprovides guidelines on how tofurther embrace technical,human and organisationalelements working together. Thiswill provide a valuableframework to deliver riskevaluations for planningintegrity management activities,”continues Høydal. DNV GL willbe hosting a number of seminarsin Norway to present therevisions to the RPs.

www.dnvgl.com

DNV GL has worked with industry partners to update recommended practices for pipelinemanagement. This has been done with the aim of reflecting the ever-changing industry and

ensuring more effective operations.

UPDATING BEST PRACTICES FOR

PIPELINE SYSTEMS

PIPELINES ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM42

Updated guidleines are essential forcost-effective pipeline management

and long-term planning.

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P.EMPRESA NACIONAL DE HIDROCARBONETOS, E.

P.EMPRESA NACIONAL DE HIDROCARBONETOS, E.

EMPRESA N P. NACIONAL DE HIDROCARBONETOS, E.


http://www.mozambique-gas-summit.com/

EVENT ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM44

OIL AND GAS industryleaders from around theworld will be calling forgreater collaboration and

an increased focus onoperational efficiency when theyspeak at the 2016 edition ofADIPEC, the Abu Dhabi

International PetroleumExhibition and Conference.

Patrick Pouyanné, chairmanand CEO of Total, speakingahead of his address at ADIPEC,said that industry stakeholdersmust work in unison to create asustainable energy future.

“The global energy landscapeis witnessing a rapid change,influenced by economicchallenges and efforts to reducecarbon emissions, which can beaddressed by the emerging roleof natural gas and renewables,”he said. “All of this makes itcrucial that industry playersoperate not only more efficiently,but also more closely, in a spiritof cooperation.”

With BP’s Energy Outlookreport pointing out that fossilfuels will remain the dominantform of energy powering globalexpansion for the next twodecades, ADIPEC is timely. Thereport adds that the global fuelmix will change with gasemerging as a major resource.

Jeff Miller, president ofHalliburton and another speakerechoed the BP report, saying:“Hydrocarbons are, by far, themost affordable and abundantresource for advancing theprogress of human life and play an integral part in meetingthe world’s growing demand for energy.”

Vicki A. Hollub, presidentand CEO of OccidentalPetroleum Corporation and aspeaker at the event, said:“ADIPEC is one of the premieroil and gas conferences, bringingenergy leaders together fromaround the world.”

There will be a strong focuson the role of women, with theWomen in Energy event on the

third day. Fatema Al Neami,manager of the gas strategy andmaster planning unit at the AbuDhabi National Oil Company anda speaker at the women’s eventsaid that although women havecome a long way, especially in theUAE, “we still have a long way togo as there are many challengesthat need to be addressed”.

“These challenges are not justspecific to this country or theregion but are global obstaclesthat the industry is facing everyday. They are also both physicaland socio-psychological innature, from creating supportivecorporate infrastructures toinspiring women to be part ofthe industry’s futuredevelopments.”

According to a report byReuters, the oil and gas industryhas the lowest representation of female professionals among all employers.

Other confirmed speakersinclude Dr Sultan Ahmed Al Jaber,UAE Minister of State and CEO ofthe ADNOC group of companies,Rex W. Tillerson, chairman andCEO of ExxonMobil Corporation,Bob Dudley, CEO of BP,Alexander Medvedev, deputychairman of Gazprom, and PaalKibsbaard, chairman and CEO of Schlumberger.

The conference will be held in AbuDhabi from 7-10 November at theAbu Dhabi National Exhibitioncentre. www.adipec.com

Industry leaders will converge on Abu Dhabi at this year’s ADIPEC event, encouragingstakeholders to collaborate and embrace change in the new energy landscape for

greater operational efficiency.

TOP LEVEL SPEAKERS URGE POSITIVE CHANGE AT

ADIPEC 2016


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MULTI GAS CLIPInfrared (MGC) 4-gasdetector for LEL, H2S,CO and O2 by Gas Clip

Technologies is proving to be oneof the most technologicallyadvanced portable multi gasdetectors on the market. Thisdetector can run for two monthsstraight on one charge. There’sno need to stop and charge thedetector after 12 to 15 hours ofoperation, saving valuable timeand ensuring continual safetycompliance.During a power outage, an

emergency situation or wheneasily charging a detector is notan option, this long-lastingdetector offers uninterruptedprotection for users. The extended battery life

comes from the utilisation of lowpower photometric infraredtechnology for LELmeasurement. This replacesarchaic pellistor technology,which has been around since the1950s. However, infraredtechnology is not new. Gas Clip Technologies has

pioneered the development of thetechnology to create the uniquebeneficial features that are foundin the Multi Gas Clip line. One benefit, besides longevity

of battery life, is that the detectordoesn’t have to be calibrated orbump tested frequently becausethe infrared LEL sensor doesn’tchange over time and is immuneto catalytic poisons such as H2S

and silicones. Recommendedcalibration is once a year. If thesensor fails for any reason, thedetector will let you knowimmediately.Another benefit is the

accurate detection of toxic gas inoxygen-depleted or oxygen-enriched environments. Sinceinfrared is a beam of light, not abead-and-filament system, as in apellistor, it is not dependentupon oxygen to burn.Maintenance and downtime aregreatly reduced as well becausethe infrared LEL sensor doesn’thave a bead that can heat up and burst when there’s a suddenhigh gas exposure and it doesn’t have a fragile filamentthat can break when the detector is dropped. Each detector is 100 per cent

quality control-tested to ensurereliability and protection.Standard features include simple,one-button operation, datalogging, high viewing anglealphanumeric liquid crystaldisplay, full function self-testupon activation, and visual,vibrating and audible alarms.Multi Gas Clip Infrared iscompatible with the MGC Dockfor easy bump testing,calibrating, data logging, andprogramming of up to fourdetectors at a time within a fewminutes with a simple snap into abay and the push of a button.

www.gascliptech.com

The use of infrared technologyreplaces archaic pellistor technology,which has been around since the 1950s”

Leveraging infrared technology means this exciting new device offers users excellent battery life,which is ideal for emergency situations and remote locations. Additionally, it offers extremely

accurate gas detection for improved operational safety on oil and gas projects.

EXTRA LONG LIFE FOR

MULTI GAS DETECTOR

INNOVATIONSISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 45

This detector has an extremely long battery life, running for two months straight on one charge.

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AFRICAN RIG COUNT - 2016COUNTRY August 2015 September 2015 August 2016 September 2016

ANGOLA 16 19 10 10

EGYPT 15 14 9 9

NIGERIA 12 12 6 7

GABON 6 6 0 0

CONGO (BRAZZAVILLE) 3 3 2 2

GHANA 3 3 2 2

CAMEROON 2 2 1 0

TUNISIA 1 1 2 2

SOUTH AFRICA 2 1 1 1

CÔTE D’IVORE 1 1 1 1

LIBYA 1 1 1 1

MAURITANIA 1 1 0 0

TANZANIA 0 1 0 0

Grand Total 63 65 36 36

Source: Luke Davis, Infield Systems

MIRMORAX, THE NORWEGIAN-BASED provider of subsea and topsidesampling and monitoring systems, haslaunched a desktop oil-in-wateranalyser, the DT250. This device usesultrasonic technology, and offersflexible, accurate analysis, and livemeasurements of oil and solids inproduced water. It is the result ofextensive research by the company.The main benefits are improved

monitoring capabilities, the flexibility toremove bottlenecks from various stagesof the processing system, enabling thetargeted use of chemicals, and helping make it easier for operators to meetenvironmental requirements. Additionally, the DT250 could be a boon

to operators working in challenging fields thathost separation from different tie-backs with various oil types in the sameproduced water.It simultaneously detects oil and solid

particles, calculates the mean size of oilparticles and solids, and provides informationin a portable device. The device offers a low-maintenance system that is quick to set up

and can be used as a sample analyser or by-pass analyser that provides continuousmeasurements. It is also capable of analysing

water that is freshly produced or has beenstored for a longer time.It is based on ultrasonic measurements,

in which individual acoustic echoes are characterised using advanced

signal processing. The highly focused

signal is transmitted directlyinto the prodiced water andthe reflection and

absorption of the signalprovidesmeasurements. Mirmorax CEO

May Britt Lilletvedtsays she hopes that inthe current low oil andgas price environment,the DT250 will offer

operators a “flexible, cost-effective and accurate

monitoring of oil in water to ensureoptimal operations, effective separation andenvironmental compliance”, which she sayshave “never been more important.”

www.mirmorax.com

New oil-in-water analyser from Mirmorax offers portabilityand accuracy for operators

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This device is portable and highlyaccurate.


INNOVATIONSISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 47

NETCO, A NIGERIAN providerof design and engineeringservices, has successfullycompleted a project for one ofNigeria’s leading IOCs.The contract, awarded to

NETCO in 2015, was to carryout a facility information projecton the IOC’s floating storage andoffloading (FSO) vessel. Thisinvolved data gathering, desktopstudies and the creation ofintelligent 3D models.The FSO vessel is the world’s

first steel-hulled, new-build LPGFSO constructed for an offshoreNigerian gas field. The vesselconverts propane and butanecomponents of the gas streaminto liquid products, which arestored in the tanks of the FSOhull prior to being offloaded toLPG tankers.NETCO commended the

project by sorting through allexisting information. Gapassessment and gas closureactivities involved identifyingmissing information anddocuments and initatingmeasures to either generate,retrieve or update them.For information-generation

and verification activities.NETCO used laser scanningtechnologies to create a pointcloud dataset and an intelligent3D model using AVEVAsoftware. The software was vitalfor supporting NETCO’s facilityinformation work scope bytransforming the point clouddataset into an intelligent basemodel that was then transformedinto 2D As-Built documents.The project was completed in

under a year with an updatedmaster document register for thevessel being sent to the client forvalidation and sign-off.

NETCOcompletesLPG FSOproject

OIL AND GAS operatorsseeking technology to improvethe water management aspect ofproduction may benefit from theAlfa Laval PureBallast watertreatment system.Alfa Laval has filed for US

Coast Guard approval for thesystem. This follows on fromsuccessful completion of land-based tests with marine, brackishand fresh water, which took placein mid-2016.These tests were performed

usingthe CMFDA/FDA(staining)method approved by the USCoast Guard and were conductedat DHI in Denmark. The testinginvolved the same hardware,power consumption and flow asthe IMO-approvedversion of thePureBallast 3 family.A test report package has

been finalised by the DNV GL

independent laboratory.“We were confident that

PureBallast would deliver high-performance results without anychange to its components orsystem design,” says AndersLindmark, general manager,business centre, for PureBallast.“Testresults have now been

submitted and they conclusivelydemonstrate that PureBallastprovides reliable biologicaldisinfection at full flow in allwater salinities. The system hasalso met the rigorous mechanicaland electrical testing verificationschemes required by the USCoast Guard and IMO.”

A NEW 3D multi-clientreimaging programme has beensuccessfully created for southernMexican offshore operations in acollaboration betweenSchlumberger and ION. It is a3D reimaging broadbandprogramme which uses Mexico’s

National HydrocarbonsCommission (CNH) data library.The Campeche 3D re-imagingprogramme comprises threesurvey areas coveringapproximately 82,000km2 in theBay of Campeche. Like manyAfrican offshore plays, the

Campeche 3D project involvedcomplex and variable geologicalareas which required a set ofconsistent, advanced workflowsto maximise bandwidth. This needs to be achieved whileproducing data with strong low frequency content for subsalt areas. High-resolution steep dip

reverse time migration (RTM)and Kirchoff imaging algorithmsproduce data which can then beused for prospect identificationand exploration.ION president and CEO

Brian Hanson commented: “TheCampeche 3D reimagingprogramme area is in one of themost challenging, yet prospectiveregions offshore Mexico, wherewe have significant processingexperience and expertise.”

Successful 3D multiclient reimagingprogramme used in Mexico

Water treatment technology awaiting US Coast Guard approval

The water treatmentsystem has already

passed rigoroustesting procedures.

The Bay of Campeche, which has been successfully reimaged in 3D.

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W.L GORE & ASSOCIATEShas launched its first outwearrange designed specificallyfor workers in the oil and gas industry.Best known for

creating GORE-TEXfabric, which iswaterproof, windproofand breathable, thecompany has nowintroduced GORE FRApparel.This range features

another trademark Gorefabric, GORE-TEXPYRAD, a flame-resistantweatherproof fabric whichhas been designed with wearer comfort as the top priority.The company

recognised that oil andgas workers have ademanding set of needs withtheir all-weather outerwear. Thejacket features a bib anddetachable hood to offer

protection from incident flameexposure as well as wet andwindy conditions.

Using the same technology asGORE-TEX, the GORE FR rangemeets multiple internationalsafety standards and, for addedprotection in dark conditions,the jackets come equippedwith reflective properties.“Simply put, GOTRE FR

Apparel is a best-in-classline of foul-weatherouterwear products thatwill deliver anunprecedentedperformance-to-valuesolution for our customersin the oil and gas markets,”said Sean McDearmon,market developmentchampion for Gore. “A newperformance benchmarkhas been established.”The range was launched

at the National SafetyCongress in AnaheimCalifornia, on 17 October.

www.goreprotectivefabrics.com/oil-gas

ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COMINNOVATIONS48

CUBELINK, A NEW technologyfrom Norway-based Cubility, is acost-effective way to transportdrilling waste directly from shaleshakers or from Cubility’s ownMudCube solids control systemto a storage unit or finalprocessing unit on a drilling rig.The system consists of a

recurring belt shaped in adrop-belt configuration.This opens up in a U-shape in the feedingstation to receivedrilling waste that isfed in by gravity fromshakers orMudCubes. The beltis then closed and routed tothe destination. Then, the belt

opens up and returns flat over aturning roller where the drillingwaste drops by gravity into areceptacle, such as a skip. Theprocesseliminates the

traditional process of shakingfluids and solids.

CubeLink for improveddrilling waste transportation

HONEYWELL UOP HASintroduced a new portfolio ofhydrotreating catalysts forremoving impurities andcontaminants from petroleumand refining feedstocks. This willproduce cleaner-burning gasolineand diesel, meeting globalemissions regulations.The regulations, which can be

met with the assistance of thesenew catalysts, include Euro V,China V and India’s BS-VI. All ofthese specify less than 10 partsper million of sulphur intransportation fuels.Hydrotreating is an important

step in the refining process. Thisis when hydrogen andproprietary catalysts are used to

pre-treat feedstocks to removesulphur, nitrogen, metals andother contaminants beforeconversion into transportationfuels. The process helps producecleaner-burning fuels.The new range features more

than 20 hydrotreating catalystsfor applications such ashydrocracking, fluid catalyticcracking (FCC), diesel andkerosene hydrotreating, andcoker naphtha hydrotreating. Additionally, Honeywell UOP

offers catalysts for naphthahydrotreating and FCCdesulphurisation.The catalysts will be

manufactured at HoneywellUOP’s facility in Shreveport.

Hydrotreating catalysts forcleaner-burning fuel

Drilling waste transportationmade simple.

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New generation flame-resistant, weatherproofjacket for oil and gas workers

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THE SUBSEA SERVICESAlliance, a collaboration betweenHelix Energy Solutions Groupand Schlumberger announcedthe launch of the first riserlessopen-water abandonmentmodule (ROAM). The 183⁄4-inch large bore

system will enhance wellabandonment capacity from awell intervention vessel byallowing tubing to be pulled in open water in a safe and environmentallycontained manner.This system wil be engineered

and built at the OneSubseamanufacturing facility inAberdeen. The system, whichwill complement existingintervention riser systems andsubsea intervention lubricators, isexpected to be available in thethird quarter of 2017.

Plans forriserlessabandonmentsystem

Designed to protectin all weathers aswell as beingfireproof.


ADVERTISER’S INDEXABS............................................................................................................................................26

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CWC Group Ltd (Mozambique Gas Summit 2016) ........................................................43

DMG World Media Abu Dhabi Ltd (ADIPEC 2016) ........................................................25

ECA Robotics ..........................................................................................................................12

FUGRO GEOS Ltd ..................................................................................................................11

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GRACO BVBA..........................................................................................................................41

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Hytera Communications Co. Ltd ........................................................................................35

M.A. Qaiser Industrietechnik GmbH....................................................................................44

Magnetrol International N.V. ................................................................................................17

Oman Cement Company ......................................................................................................29

Panoba Ltd ................................................................................................................................7

Petroleum Agency SA............................................................................................................28

PFL Engineering Services Limited........................................................................................2

RSCC (Russian Satellite Communications Co) ................................................................21

Tilone Subsea Limited ..........................................................................................................27

Tolmann Allied Services Company Ltd ................................................................................5

United Safety International Ltd - FZ LLC ..........................................................................37

Well Fluid Services ................................................................................................................14

Whassan Nigeria Ltd ............................................................................................................39

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SCHLUMBERGER WESTERNGECOAND ION Geophysical Corporationhave announced a new 3D multiclientreimaging broadband programmeoffshore Mexico, which uses Mexico’sNational Hydrocarbons Commission(CNH) data library. The Campeche 3D reimaging programcomprises three survey areas coveringapproximately 82,000 km2 in the Bayof Campeche offshore southernMexico.Leveraging both companies’

extensive imaging experience inMexico, the programme will beprocessed using both customtechnologies and techniques from thetwo organizations which will maximize data quality and offer geologicalinsights for upcoming licensing rounds.

The use of broadband preprocessingcoupled with high resolution steep dipreverse time migration (RTM) andKirchhoff imaging algorithms willproduce data ideal for prospectidentification and exploration. IONPresident and Chief Executive Officer,Brian Hanson, commented, "We arepleased to be collaborating withWesternGeco on such a large projectoffshore Mexico, where we anticipatecontinued strong client interest. TheCampeche 3D reimaging program areais in one of the most challenging, yetprospective regions offshore Mexicowhere we have significant processingexperience and expertise."

The program is fully supported by industry funding. Fast-track dataare available now for Round 1.4 deepwater bid preparation decisions.

Schlumberger and ION Announce New 3D MulticlientReimaging Programme Offshore Southern Mexico

WesternGeco and ION expand the Campeche multiclient reimaging programto cover the shallow water Round 2.1 blocks.

NEWSISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM 49

Image Credit: S

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berger

S13 ORA 5 2016 - Innovations_ORA Master Template - 2016 New 14/10/2016 18:55

How did Tilone Subsea start?In 1993, after my stint withChevron as a youngdesign/construction engineer, Iwas divinely inspired to startTilone Nigeria Limited. It wasincorporated in March 1993 torender engineering constructionand procurement services. In2001, the company realigned herscope of services to marine,contracting and subseainspection, maintenance andrepair (IMR) services. In 2010,the company was renamedTilone Subsea Limited to reflecther core competences.

What have been somehighlights for the company?Tilone has enjoyed a fair share ofhighpoints and some of theseinclude the purchase of SeaeyeFalcon ROV in 2004 and trainingof personnel in the UK as ROVpilots and technicians; thesuccessful mobilisation of anOIMR vessel with WROVsonboard for TOTAL in 2012 andthen Exxon Mobil in 2014; thepurchase of two Quantum XPWROVs from Hallin Marine, ourformer technical partners; andthe certification to ISO9001:2008, ISO 14001:2004 andOHSAS 18001:2007 for Quality,Environment and SafetyManagement Systems.

What challenges does the lowoil price climate create?Demand for offshore drilling rigs

which we support with ourROVs came to almost zero andclients we supported with ourequipment for the productionend of the industry negotiateddown contracts to the point thatthey were almost not profitableto run. Very few offshore rigs arecurrently operating in Nigeriaand this has put a lot ofconstraint on offering lucrativepricing as the industry hasbecome extremely competitive.Offshore exploration and drillingactivities came to a halt andproduction activities werestreamlined to reduce cost. Therehas been underutilisation ofequipment. Most assets are notdeployed and some werepurchased with bank loans, so we are struggling to meet bank obligations with assets thatare undeployed.

How are these challengesbeing met?The low oil price has impactednegatively on Tilone’s operationsand consequently various degreesof redundancy for bothpersonnel and equipment, belowoptimal utilisation of resourcesand downscaling of operations. We, however, are employing costsaving strategies to reduceoperating costs and re-currentoverheads/expenditure.

What impact does the low oilprice have on expansion?The low oil price has led to

expansion plans being sloweddown tremendously and sometotally suspended but goingforward Tilone will strategisewith more careful steps.

Where do you see as thegrowth areas for subseaexpansion in Africa?Traditional areas, primarilyoffshore West Africa includingNigeria, if we get our act togetherand pass the PIB and movebeyond it, that is,. having a firmframe work for the future of theoil and gas industry, and Angolaand Ghana. Also, offshore EastAfrica, Mozambique andTanzania are future growth areas.

What technologies doesTilone use to staycompetitive?Tilone has a fleet of state of theart WROV systems (SMDQuantum XP Heavy Duty 200HPsystems) which are engineeredfor heavy duty work.

How important is localcontent when recruiting?We focus on placing locals in allcountries in responsible positionsincluding offshore and basepositions in all employee strata:junior, intermediate and seniormanagement positions. It is part of Tilone’s core values to do this as it makes personnelreadily available to work in eachcountry and helps growcompetencies locally.

What sets Tilone apart fromits competitors?Tilone is 100 per cent indigenouscompany With a staff of over 95 per cent locals, we can renderworld class services. Training oflocals in the various services werender, such as survey, ROV,positioning, subsea constructionand offshore management. The drive to push locals to the highest levels of managementin the company because thefuture lies in raising localcompetencies to run and managethe company operations.

Expansionplans have sloweddown but Tilonewith strategise with more carefulsteps”

Stanford Tassie, managing director and CEO of Tilone Subsea, talks to Oil Review Africa about getting through the challenges posed by the low oil price environment, local content

requirements in all markets, and meeting international standards.

OVERCOMING CHALLENGES AND FINDING

NEW AFRICAN MARKETS

INTERVIEW ISSUE 5 2016 • WWW.OILREVIEWAFRICA.COM50

Stanford Tassie is meeting challengesin the market with smart strategies.

Image Credit: Tilone Subsea



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Gabon South Basin25,000 km2 of new BroadSeis data

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CGG’s fast-track 3D seismic data from our advanced BroadSeis™ survey over the deepwater Gabon South Basin are available now. This survey is optimally designed for the region’s complex salt structures and is imaged with the latest technology. The final PSDM data will be available in November.

CGG’s BroadSeis data and advanced subsurface solutions offer unique opportunities for success in Gabon’s emerging pre-salt story.

For more details, please contact:Luke Davey [email protected] +44 (0)1293 683539Thomas Obidairo [email protected] +44 (0)1293 683206

18:21


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