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

Transcription

1 Serving the interests of industry and members in the upstream and midstream oil & gas sectors The Customer Driven Retailer Membership Advocacy Knowledge Linking & Networking Grounded in Insights, Fueled by Data and Analytics August 1, 2011 TNPA Workshop Presentation Mthozami Xiphu 14 April 2014

2 Agenda 1 SAOGA Mission and Vision. 3 2 Oil & Gas Developments in South Africa Sector Overview African Oil & Gas Scenarios Support Infrastructure Equipment / Service Supply Opportunities South Africa: Services Available at Oil & Gas Hubs

3 Connect with us! 3

4 Governance and Implementation Mission Vision Strategy HRC ARC Reviewing, Advising and Approving Setting and Implementing Implementation Board of Directors EXCO CEO Employees We implement on our mandate through project leadership teams Governance Task Team Ports Cluster Leadership Team Major Project Leadership Team Marketing Leadership Team Local Content Task Team

5 Oil & Gas Developments in South Africa 20 Companies 30 Licences Offshore exploration activity announcements Regional snapshot of offshore exploration developments in Southern Africa Source: PASA

6 Sector Overview SSA Major Projects Refineries Clean fuel technology upgrades of crude & GTL refineries Mthombo Refinery, port of COEGA - (Feasibility Studies being conducted for crude oil refinery and import terminal) Terminals Oil Oiltanking MOGS Saldanha Crude storage & blending terminal Oil/Gas New Fuels/LPG Terminal in Richard s Bay Vopak Gas LNG Import Terminal to feed PetroSA LPG Import Terminal Sunrise Energy LNG Liquefaction Palma Bay, Mozambique Regional snapshot of offshore exploration developments in Southern Africa 6

7 Sector Overview Industry Spinoffs Regional snapshot of offshore exploration developments in Southern Africa Many large corporations have set up or are considering setting up offices in Africa Foreign direct investments have been made into Africa with the acquisition of local industry players New companies have entered the Oil & Gas value chain

8 Tracking offshore activity in Sub-Saharan Africa & Vessel Demand Oil & Gas Activity in Africa Rigs Oil Export Terminals FPSOs LNG LNG Import Facilities Strategic Storage Refineries Pipeline 8

9 Tracking offshore activity in Sub-Saharan Africa & Vessel Demand Oil & Gas Activity in Africa Refinery Upgrades New Refineries New FPSOs New LNG New LNG / LPG Import Facilities New Strategic Storage New Pipelines Rigs Rigs Oil Export Terminals FPSOs LNG LNG Import Facilities Strategic Storage Existing Pipelines 9

10 Support Infrastructure Port of Durban Port of Saldanha Bay Strong ship repair capability Engineering & fabrication 120km (60-90min drive) northwest of Cape Town. Depth up to 21.5 metres. Existing O&G fabrication yard. Port of Cape Town Sturrock dry dock 360m length, 45m width, 13.7m depth over entrance. Repair quay - 457m with 12m draft. A-Berth O&G repair/ fabrication facility Port of Coega New deep water port ~20m Surrounded by free zone Northern edge of Port Elizabeth O&G development not currently planned here 10

11 Supplier Development Industry Spinoffs Equipment and service supply opportunities in South Africa Rig and Ship Repair Welding Crude Oil Value Chain Exploration Production Transportation Refining Marketing Scaffolding Pressure Vessels Geophysical Evaluation & Design Field Development Drilling Operations Oilfield Services Bringing the oil to the surface Gathering and transporting pipelines, tankers, trucks Fractionation of crude oil into petroleum products Product Blending Retailing Trading Fabrication Engineering Services Construction Storage Logistics Contract Drilling Drilling Related Services & Techniques Production & Maintenance Exploration UPSTREAM 3D Seismic Geophysical Evaluation & Design Drilling Operations Gasfield Services Production Bringing the gas to the surface Field Development Continuing drilling operations MIDSTREAM Natural Gas Value Chain Processing Gathering & Processing Fractionation Transportation & Storage Transportation (pipelines) Storage Liquefaction (for tanker transport) DOWNSTREAM End Users Industrials Power Generation Utilities Residential and Commercial loads Contract Drilling Drilling Related Services & Techniques Production & Maintenance UPSTREAM MIDSTREAM DOWNSTREAM 11

12 Supplier Development Challenges and Opportunities (1) Exploration & Well Completion Challenges Equipment Expensive Produced in industrialized countries Requires specialised fabrication Requires specialised artisans Requires established heavy engineering capacity and knowledge Requires a hub from which to procure complimentary products and services Technology Limited R&D capacity Skills Shortage of specialised skills Global shortage of skills makes retention of people difficult, even indigenous Africans Equipment and service supply opportunities in South Africa Opportunities Equipment repairs and maintenance Technology local branch operations Skills Projects to develop sough-after skills will build in-country capacity 12

13 Supplier Development Challenges and Opportunities (2) Logistics & Transportation Challenges Equipment Requires specialised fabrication Requires established industry, e.g. steel Requires a hub from which to procure complimentary products and services Opportunities Equipment Utilise mineral resources to beneficiate products for oil and gas industry e.g. pipelines and pressure vessels Produce products under licence from established field service companies that have the knowledge and experience Equipment and service supply opportunities in South Africa 13

14 Supplier Development Challenges and Opportunities (3) Refining and Production Challenges Equipment Refineries are old and need upgrading Import raw vs refined product Skills Shortage of specialised skills Opportunities Equipment GTL? FLNG? Skills Projects to develop sough-after skills will build incountry capacity Equipment and service supply opportunities in South Africa

15 Services Available at Oil & Gas Hubs Equipment and service supply opportunities in South Africa 15

16 Services Available at Oil & Gas Hubs Equipment and service supply opportunities in South Africa Diversified Regional Supplier Base Training & Skills Development SA Upstream / Midstream Hub Major Logistics & Distribution Centre Attractive Location for Regional Head Offices Upstream Repair & Maintenance Hub 16

17 South African Ports with Oil & Gas Track Record Port of Saldanha Bay Port of Durban Strong ship repair capability Engineering & fabrication 120km (60-90min drive) northwest of Cape Town. Depth up to 21.5 metres. Existing O&G fabrication yard. Port of Cape Town Sturrock dry dock 360m length, 45m width, 13.7m depth over entrance. Repair quay - 457m with 12m draft. A-Berth O&G repair/ fabrication facility Port of Coega New deep water port ~20m Surrounded by free zone Northern edge of Port Elizabeth O&G development not currently planned here

18 South Africa - well-positioned to play a hub role as opportunities spread across the region. Sophisticated Economy & Infrastructure Strategic Position & Regional Linkages Strong Human Capital Base Highly attractive environment & lifestyle Largest, most sophisticated economy in Africa diverse industrial base Excellent transportation and communications infrastructure Strong financial and legal system supports first-world business environment. Part of Africa leading player in African Union, SADC and SACU Strategic position as East and Southern Africa upstream adds to the West African success. De facto logistics and transport hub for sub-saharan Africa Johannesburg effectively the regional commercial capital. Diverse population Young, trainable workforce Predominantly English speaking World-class universities and business schools. Great climate and general standard of living for expatriate personnel. High quality education and medical care. Vibrant cultural and recreational life.

19 South African supplier base in the key ports offers the following services and capabilities Class Approved Underwater Services Class Approved Welding Procedures Vessel Class Inspections and Surveys Crane Repairs Dry-Dockings Electrical Installation, Fault Finding and Repair Full Engineering Turnkey Solutions Grit Blasting & Coating Propulsion Repairs Hydraulic Repairs Mechanical & Valve Testing Machinery Inspections Machining NDT Services Pipe Work Fabrication & Installation Rig Leg Repairs Riser and Subsea Fabrication Spud Can Repairs Steelwork Fabrication & Installation Travelling Squads UWILD Inspections Afloat Repairs Cofferdam Repairs

20 South Africa - Attractive base for operations into sub-saharan Africa

21 Southern African ports of potential interest for Oil & Gas Rig/OSV servicing Las Palmas Lobito 3913nm 33 days 3059nm 26 days Dubai Mtwara Pemba Nacala 1472nm 12 days Beira Walvis Bay 1561nm 12 days Luderitz Maputo Saldanha Bay Cape Town Coega Durban East London Richards Bay Mossel Bay 832nm 7 days

22 South Africa - Current Rig Repair Rig: Marianas Client: Transocean Location: Port of Cape Town Arrival: October 2013 Piping, Mechanical, Electrical, Steel renewal, Accommodation upgrade, Control Systems upgrade Rig: Sedco 702 Client: Transocean Location: Port of Saldanha Arrival: November 2013 UWILD inspection, Life Boat upgrade, Steelwork, Accommodation work, Drill String overhaul, BOP Rig : Scarabeo 7 Client: Saipem Location: Port of Cape Town Arrival: December 2013 Piping, Mechanical, Steel renewal, Tank cleaning, Painting, Accommodation/ Galley upgrade, Control Systems upgrade Thruster overhaul Rig: DS-2 Client: ENSCO Location: Port of Cape Town Arrival: October 2013 Thruster Repairs Rig: Orca Client: PetroSA Location: Port of Coega Arrival: September 2013 Refitting and refurbishing to meet the requirements of a Special Period Survey (SPS) certification. Rig: ENSCO 5000 Client: ENSCO Location: Port of Saldanha Arrival: October 2013 Cold Stacking

23 South Africa Legislation: Challenges and Opportunities Equipment and service supply opportunities in South Africa Legislation Challenges Local content requirements that can be prohibitive Expensive Not economically feasible Requires specialisation and industry maturity that cannot be replicated Requires a hub from which to procure complimentary products and services Opportunities Local content requirements that can be supportive Appropriate and plausible Economically feasible Requires specialisation to the extent that it can be replicated Develop hubs to create capacity and drive industry development 23

24 Thank you!