Oi Review Africa 2012 issue 2

GNPC gears up forGhana O&G sector

Determining themaritime boundaries

Angola’s cleanalternative to flaring

Technology drivingAfrica’s LNG

Changing the face ofreal-time remotepressure management

Africa’s subsea markethots up

Meeting the deepwaterchallenge

Vsats - how muchshould one pay?

AfricaAfricaCovering Oil, Gas and Hydrocarbon Processing

Volume 7 Issue Two 2012

www.oilreviewafrica.com

Europe m10, Ghana CD18000, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

Joe Udofia, MD-CEO of VandrezzerEnergy Services Limited, Nigeria See page 6.

Angola...oldchallenges

remain

■ Geology - p36 ■ Gas - p38 ■ Exploration - p46 ■ Technology - p56

Oil Review

Africa

- Issue Two 2012

ww

w.oilreview

africa.com

REGULAR FEATURES: ■ News ■ Contracts ■ Events Calendar ■ IT update ■ Company profiles ■ Products & Innovations

ORA 2 2012 COVER_cover.qxd 12/04/2012 12:54

...Africa is our home

OML 130

Block 1

South Atlantic Petroleum• Nigeria • Benin • France • Madagascar

www.sapetro.com

Juan de Nova (France) &Belo Profond (Madagascar)outh Atlantic Petroleum has made significant contributions to the development

of oil and gas in the Gulf of Guinea. This has been through our participation in the Total-operated Akpo and Egina developments in OML 130 deep offshore Nigeria, as well as the upcoming redevelopment of the SAPETRO-operated Sèmè oil field offshore the Republic of Benin. We are also actively exploring our Juan de Nova and Belo Profond assets in the Mozambique Channel deep water frontier. Our over 12,000km of 2-D seismic data in these assets employs a new, state-of-the-art solution which has been deployed in Africa for the first time and is the largest such survey in the world at present.

As we continue to expand our footprints in sub-Saharan Africa, we look forward to developing further partnerships.

S

S01 ORA 2 2012 Start_Layout 1 12/04/2012 14:21

Head Office: Middle East Regional Office: Alain Charles Publishing Ltd Alain Charles Middle East FZ-LLCUniversity House, 11-13 Lower Grosvenor Place Office 215, Loft No 2A, PO Box 502207London SW1W 0EX, UK Dubai Media City, UAETelephone: +44 (0) 20 7834 7676 Telephone: +971 4 4489260 Fax: +44 (0) 20 7973 0076 Fax: +971 4 4489261

Production: Donatella Moranelli, Nick Salt, Jeremy Walters and Sophia WhiteE-mail: [email protected]

Subscriptions: E-mail: [email protected]

Chairman: Derek Fordham

Printed by: The Manson Group, St Albans, UK © Oil Review Africa ISSN: 0-9552126-1-8

Oil Review Africa Issue Two 2012 3

Editor’s noteTECHNOLOGICAL ADVANCES, ENORMOUS finds and high oil prices are driving thegrowth of a deepwater E&P market that not long ago was largely unviable.

The world’s largest energy companies have big plans for Mozambique, where,in the last 10 years, companies like ExxonMobil, BG and Eni have used the latesttechnologies, including advances in deep-sea drilling, to find new natural gasresources that are turning Mozambique into the centre of an energy boom. TheEast African country is not alone in its newfound energy wealth. Countries likeTanzania and Kenya also are attracting billions of dollars in investment from theworld’s largest energy companies as they search for new oil and gas reserves.

Meanwhile in West Africa, GNPC is gearing up for Ghana’s oil and gas sectorgrowth, where key operators such as Tullow and Kosmos are now pledging manybillions of dollars of new investment.

Now there is a clean and beneficial alternative to flaring. The LNG world hasbeen transformed in the past decade or so by improvements in technology, rightacross the supply chain. Angola LNG operates one of the world’s most modernLNG processing facilities and the first cargo is due soon. In Mozambique,Anadarko is also planning an onshore liquefaction plant.

Emerson’s subsea network answers many of operators’ questions relating to subseaoperations.

ColumnsIndustry news and executives’ calendar 4

AnalysisOil producers’ group responds to consumer fears 10

Diving profits: E&P deep undersea 12

Risk management offshore 16

Country FocusGhana 18Assessing risk for investment in GhanaGNPC gears up for Ghana oil and gas sector growthDetermining the maritime boundariesNuclear power positive for Ghana’s electricity needs

Angola 30A clean and beneficial alternative to flaring - Angola LNGAngola’s Sonangol coming of age, but old challenges remain

Geology & GeophysicsDevelopments 36

GasDevelopments 38

Technology evolution drives Africa LNG market growth 40

South Africa’s shale gas: abundant, affordabale and acceptable? 44

E&PDevelopments 46A round-up of recent exploration and production activity from around the region.

Health & SafetyStrengthening operational integrity 54How recommendations for health and safety following specific incidents have informedKCA Deutag’s polilcies.

TechnologyInnovations 56Drilling 58Changing the face of real-time remote pressure management.

Subsea technology 66The African subsea market continues to hot up.Meeting the deepwater challenge.

Pipelines 72Is the gas pipeline industry out of its depth?

Information TechnologyVSATs - are you paying too much for your satellite service? 78

Southey regularly exercise ultra highpressure water blasting, painting andgeneral maintenance contracts inNigeria, Cameroon, Gabon, Congo andAngola, seen here painting the GorillaVII port aft hull anchor.

GNPC gears up forGhana O&G sector

Determining themaritime boundaries

Angola’s cleanalternative to flaring

Technology drivingAfrica’s LNG

Changing the face ofreal-time remotepressure management

Africa’s subsea markethots up

Meeting the deepwaterchallenge

Vsats - how muchshould one pay?


Volume 7 Issue Two 2012

www.oilreviewafrica.com

Europe m10, Ghana CD18000, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12

Joe Udofia, MD-CEO of VandrezzerEnergy Services Limited, Nigeria See page 6.

Angola...oldchallenges

remain

■ Geology - p36 ■ Gas - p38 ■ Exploration - p46 ■ Technology - p56

REGULAR FEATURES: ■ News ■ Contracts ■ Events Calendar ■ IT update ■ Company profiles ■ Products & Innovations

Contents

Serving the world of business


Managing Editor: Zsa Tebbit - [email protected]

Editorial and Design team: Bob Adams, David Clancy, Andrew Croft, Prabhu Dev, Immanuel Devadoss,Ranganath GS, Prashanth AP, Genaro Santos, Ewan Thomson, Nicky Valsamaki and Julian Walker

Publisher: Nick Fordham Advertising Sales Director: Pallavi Pandey

Magazine Sales Manager: Serenella FerraroTel:+44 2078347676, E-mail: [email protected]

Country Representative Telephone Fax E-mail

China Wang Ying (86)10 8472 1899 (86) 10 8472 1900 [email protected]

India Tanmay Mishra (91) 80 65684483 (91) 80 40600791 [email protected]

Nigeria Bola Olowo (234) 8034349299 [email protected]

Russia Sergei Salov (7495) 540 7564 (7495) 540 7565 [email protected]

South Africa Annabel Marx (27) 218519017 (27) 46 624 5931 [email protected]

Qatar Saida Hamad (974) 55745780 [email protected]

UAE Camilla Capece (971) 4 448 9260 (971) 4 448 9261 [email protected]

USA Michael Tomashefsky (1) 203 226 2882 (1) 203 226 7447 [email protected]

66


Oil Review Africa Issue Two 2012

Ind

ust

ry N

ew

s &

Even

ts

4

E x e c u t i v e s C a l e n d a r 2 0 1 2APRIL

23-26 Oil & Gas Libya 2012 TRIPOLI www.montgomerylibya.com

24-25 MMEC 2012 MAPUTO www.mozmec.com

26-27 5th Annual Sub-Saharan Africa Oil & Gas Conference, 2012 HOUSTON energyandcorporateafrica.eventbrite.com

30-3 May OTC HOUSTON www.otcnet.org

MAY7-9 AIOGACE 2012 LUANDA www.aiogace.com

9-10 LNG 2012 LONDON www.lng-europe.com

15-17 Agrikexpo LAGOS www.agrikexpo.com

22-23 OGAFIC 2012 ABUJA www.ogafic.com

22-24 4th African Gas-LNG Conference LONDON www.petro21.com

22-24 MOC 2012 ALEXANDRIA www.moc-egypt.com

24 5th Nigerian Upstream Conference LONDO www.petro21.com

26-28 3rd East Africa Oil, Gas and Energy Week 2012 NAIROBI www.petro21.com

29-30 13th South African Oil, Gas & Energy JOHANNESBURG www.petro21.com

JUNE4-8 25th World Gas Conference KUALA LUMPUR www.wgc12.com

6-8 WAMPEX ACCRA www.cvlc.co.za

12-13 The Oil Council’s Africa Assembly PARIS www.oilcouncil.com

18-20 TOG 2012 TRIPOLI www.wahaexpo.com

19-20 4th MidEast North African Upstream Conference GENEVA www.petro21.com

19-21 GOG 15 MALABO www.cwc-news.com

19-22 ZIMEC 2012 LUSAKA www.zimeczambia.com

OCTOBER 8-11 Gastech 2012 LONDON www.gastech.co.uk

8-11 Mauritanides 2012 NOUAKCHOTT www.mauritanides2012.com

22 - 25 Artificial Lift Conference and Exhibition CAIRO www.spe.org

31-4 Nov 18th African Oil Week CAPE TOWN www.petro21.com

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

INTERNATIONAL OIL SERVICES group Aker Solutions has signed a two-year frameagreement with Egyptian oil giant Badr Petroleum Company (Bapetco). AkerSolutions will be the sole supplier of all of the oil company’s surface wellheadequipment, installation and lifecycle services operations in the Western Desertof Egypt. Dave Hutchinson, president of Aker Solutions in Asia Pacific, said: “We are veryexcited about this award, as it marks the successful entry of our surfacebusiness into the Egyptian and North African markets. Our ambition is to growAker Solutions’ operations in the Middle East and North Africa.” The contract will be delivered out of Aker Solutions’ surface productsmanufacturing centre in Batam, Indonesia, which was established in 1992. In2009, Aker Solutions upgraded the Batam facility in order to increase itsproduction capacity. As a result, manufacturing capacity for production and

assembly of surface wellheads and treeshas increased by more than 50 per cent,or equivalent to 300,000 man hours. Aker Solutions is one of the world’sleading oilfield products, systemsand services companies. Thecompany has 23, 500 employees in30 countries worldwide. The contract was signed and booked asorder intake in the first quarter of 2012.The contract party is Aker SolutionsSingapore Pte.

OIL & GAS LIBYA 2012 – the International Exhibition for the Regeneration ofLibya’s Oil, Gas and Petrochemicals Sector – is set to take place 23-26 April2012 at Tripoli’s International Fairground.The Organisers, Montgomery Libya Ltd, are in consultation with the LibyaNational Transitional Council, now internationally recognised as the legitimateconduit to the country’s future governance. The Council has establishedimmediate priorities which include rebuilding the country’s oil, gas andpetrochemicals sector which has suffered a lack of investment in recent yearsand considerable damage during the conflict.Libya is calling on the international export community to bring much neededexpertise and technology to revitalise its energy sector in the following areas:6 Exploration & Production6 Pipelines6 Refining and Petrochemicals6 HSE6 TrainingThe exhibition will play a vital part in bringing expertise and technology tohelp in the up-grading of Libya’s strategically important oil and gas industry.The conference will allow the Libyan authorities to set out their priorities andrequirements for the country’s energy sector and suppliers of technology andservices to recommend solutions.The highest level of support will be encouraged from private and public sectorplanners, specifiers and procurement officials both as visitors to the exhibitionand delegates to the conference.The recent freeing up of US$100bn of Libya’s previously frozen assets willimmediately contribute to the country’s energy redevelopment plans.Oil & Gas Libya 2012 follows the success of previous exhibitions organised byDar Alarab in association with Montgomery Libya Ltd, including Project Libya.

Libya to revitalise its energy sector Aker Solutions wins surface wellcontract in Egypt


S02 ORA 2 2012 News_Layout 1 12/04/2012 14:23

6 Oil Review Africa Issue Two 2012

VANDREZZERENERGY SERVICESLtd is a world-classEngineering,Procurement,Construction andInstallation Company(EPCI) with vastexperience inupstream projects forthe oil and gassector in Nigeria andthe West AfricanSub-region.Vandrezzer has beenat the forefront ofthis industry for over five years and the vast experience of thecompany's highly skilled project professionals includes oil and gasproduction technologies, extensive harsh environment design,construction experiences and construct-ability expertise.Its integrated EPCI approach to project execution, globalprocurement reach and unparalleled safety record for oil and gasprojects allow Vandrezzer Energy to successfully manage theaggressive schedule and rigorous cost demands associated withchallenging upstream projects.This is the first EPCI company in Nigeria and its mission is to raise apeople-oriented company using cutting-edge technology to providesuperior engineering solutions in a cost effective manner, within astipulated time, while meeting clients' specifications and standards,thus standing out as the best, in the quest for global and renewableenergy.

MADAGASCAR OIL HAS successfully resolved the outstandingissues with the Government of Madagascar surrounding its threeexploration blocks.Following a recent Management Committee Meeting withOMNIS, the state regulatory agency responsible for overseeingthe country's oil and gas operations, the validity of theProduction Sharing Contracts (PSCs) for Blocks 3105, 3106 and3107 was confirmed and the forward work programme andbudgets for the blocks were approved.This means that Madagascar Oil and the Government have nowresolved the outstanding issues surrounding the explorationBlocks and there are no further disputes with the Government ofMadagascar regarding the company's licenses.The company and OMNIS also approved formal amendments tothe PSCs which recognise and adopt the minimum workprogramme for the remainder of the exploration term, and allowfor the 15 month delay since December 2010 to be added to theend of the exploration period for each of the exploration Blocks.With the approval of the amendments and the work programmes,activity will begin immediately to initiate a planned airbornegravity gravimetric survey of approximately 21,000 km at a totalcost of approximately US$3.3mn for the three blocks.Madagascar Oil announced that the Force Majeure event on theexploration Blocks has now terminated.

OCEAN RIG UDW has received a Letter of Award for its ultra deepwaterdrillship Ocean Rig Olympia (UDW drillship), from a major oil company. TheLetter of Award is for a three year contract for drilling offshore West Africa,with an estimated backlog of approximately US$652mn. The Letter of Awardis subject to completion of definitive documentation and receipt ofregulatory approvals.The contract is expected to commence in direct continuation of the OceanRig Olympia's existing contract in West Africa.The customer would have the option to extend the contract for two periodsof one year each, with the first option exercisable within one year from thecommencement date under the drilling contract, and the second optionexercisable within one year after the date of exercise of the first option.With this latest fixture, Ocean Rig no longer has any rigs available in 2012.

Ocean Rig books UDW drillship

A wellhead jacket recently built by Vandrezzer EnergyServices Ltd in Nigeria, a unique project designed,fabricated and constructed by an indigenous provider ofenergy services.

NIGERIA HAS EDGED out Egypt, Libya and Kurdistan on a list of oil andgas producing countries where energy majors pay the mostsupplementary pay to senior staffers, according to executiverecruitment firm The Curzon Partnership.

Attracting talent to frontier countries such as Nigeria remains achallenge for the oil and gas industry. The average general managerin the West African country can receive a country premium up to 45per cent of base pay, bringing total salaries to approximatelyUS$460,000 a year.

‘The growth in exploration and production across frontier marketsover the last 15 years has created a global fight for talent among oiland gas businesses,’ said Helen Di Mauro, partner at The CurzonPartnership. ‘There are still roles in more mature regions like theNorth Sea, but frontier markets will represent an ever bigger slice ofthe pie in the future.’

Di Mauro said companies are willing to dole out country premiumsbecause it is harder for expats, and especially those with families, tomaintain the same lifestyles they would enjoy in the US or the UK infrontier markets. Those general managers or equivalents working in theNorth Sea, can make approximately $238,000 a year.

The Curzon Partnership attributes Nigeria’s high pay premiums tonot only cultural adjustments, but local skills shortages and thenumber of talent needed on projects.

“Nigerian oil projects are booming, with a number of new entrantstargeting opportunities which is generating a lot of demand for seniortalent,” Di Mauro said. “Some oil and gas executives and their familiesperceive frontier markets like Nigeria as riskier than other markets andthe high country premium reflects that.”

Comparatively, premiums in countries such as Egypt, Libya andKurdistan are lower amounting to 30 per cent of base pay. GeneralManagers in these countries stand to make between $309,000-371,000a year. Di Mauro attributes this to a well-established expat communityin Egypt and lower demand for senior staff in Libya and securityimprovements in Kurdistan.

Ind

ust

ry N

ew

s &

Even

ts

Madagascar Oil resolves block issueswith Government

Oil salaries higher in NigeriaNigeria’s 1st EPCI company

S02 ORA 2 2012 News_Layout 1 12/04/2012 14:23

S02 ORA 2 2012 News_Layout 1 12/04/2012 14:23


DESPITE GLOBAL ECONOMIC challenges,there is a real sense of optimism across theoil and gas industry, with renewedconfidence around the world.International demand for oil and natural gasmeans that commodity values continue toremain high, despite political tensions in anumber of regions, increasingly demandingexploratory environments and the resultantimpact of rising costs on operators.Regardless of these factors, the industry isnothing short of vibrant.Africa is a region that continues to showgreat promise. Whether in mining or oil andgas, nothing is done in half measures, withcountries such as Angola, Nigeria and Ghanaall considered major regional players.Security concerns are still present, butinternational confidence in the region isundoubtedly on the rise. This may be theresult of a number of super-majors willing toaccept the risks that are an inherent part ofthe potential rewards that are on offer. Successes are already evident. Particularly ofnote is Total’s Pazflor project offshoreAngola, which came on stream in August lastyear. The project encompasses the Perpetua,Acacia, Zinia and Hortensia reservoirs in theoffshore Gulf of Guinea. Pazflor covers an area of more than 600 sqkm – six times larger than Paris – with a

water depth of about 1,200 m and hasestimated proven and probable reserves of590mn barrels. It is a major development forAngola, and is expected to increase thecountry's production by approximately220,000 bpd.BP too has been involved in Angola foralmost 40 years with a long-termcommitment to the country; the result ofsubstantial deepwater interests, whileChevron’s wholly owned operating unit,Cabinda Gulf Oil Company Limited(CABGOC), is a major presence in Angola’senergy market.Unlike countries such as Nigeria, Angolaboasts strong manufacturing and fabricationservices to support energy-related projects,while better education and technical traininghas been recognised as a core requisite.Workforce development is a long-termapproach for many companies in the country.ExxonMobil for example, strategicallyimplements development programmes toboth meet local hiring objectives andovercome challenges related to theavailability of experienced candidates and in-country training capabilities. Meanwhile, BP has a working relationshipwith Agostinho Neto University in Luanda tohelp increase the number of qualifiedengineers and geoscientists that graduate

each year.The country is not without its challenges,however. Poor amenities, threats to personalsecurity, and the high costs of living are allfactors to take into account, particularly forcompanies looking to relocate employees toAfrica. The most recent workforce survey producedby OilCareers and Air Energi suggests that, aswith other countries in the region, whatappears sound on paper may vary widelyfrom the reality. It reports that, despite theintent of local officials or foreign investors,something in the deal inevitably goes wrong.Were Angola and Nigeria not sitting on 40per cent of the continent’s oil and 67 percent of its gas, and if the price of oil wasn’tso positive, the occurrence of backhanddealings may not have been tolerated for solong, according to the report. Instead, Angola’s massive pre-salt depositswill continue to be explored, while a gasliquefaction plant is scheduled to becommissioned this year, keeping FEED,subsea and safety personnel in high demand.With announcements pouring out of Angolaas rapidly as the oil itself, there appears tobe no shortage of work ahead for the country.

Mark Guest, Managing Director,OilCareers.com

RED SPIDER, THE Remote OpenClose Technology (ROCT)specialist delivering multi-millionpound savings and reduced risk tothe oil & gas industry, hascompleted its first work in WestAfrica and secured additionalcontracts in the region.The success follows Red Spider’srecent announcement of theappointment of an agent in WestAfrica to support its expansion inthe region.Work involving eRED, Red Spider’s breakthrough ROCT product, wascompleted in Equatorial Guinea. The success is expected to lead tofurther runs of the tool in a number of West African countries, withsignificant interest expressed by operators in Gabon, Ghana, Angolaand Nigeria. Further work involving one of Red Spider’s latest products,eRED-FB, is scheduled with an operator in Equatorial Guinea by the middleof 2012. Deals completed for work so far in West Africa have a value ofUS$604,000.Red Spider’s Africa sales manager Barry Killoh said: “We knew the WestAfrican market had huge opportunities for our technology and to have thislevel of interest from the outset is very encouraging. Our tools are provento help operators reduce risk and deliver major cost savings, particularlyduring deepwater operations, so they are ideal for the market.”

KOSMOS ENERGY HAS signed three Production Sharing Contracts (PSCs)with the Government of Mauritania for Blocks C8, C12, and C13 offshoreMauritania. The contracts will take effect upon formal ratification by theGovernment of Mauritania. The blocks, which are contiguous, range inwater depth between approximately 1,600 and 3,000 m, and have acombined acreage extent of approximately 27,200 sq km.Kosmos will be operator of the three blocks with a 90 per cent interest.The national oil company, Société Mauritanienne des Hydrocarbures(SMH), will hold a carried interest of 10 per cent. In the initial exploration phase under each of the contracts, Kosmosplans to acquire 2D and 3D seismic data. The company targets firstdrilling as early as 2014. The execution of the PSCs represents Kosmos'initial entry into Mauritania and significantly expands the company'sexploration footprint.Brian F. Maxted, Chief Executive Officer, commented, "With ourexploration programme focused on unlocking new petroleum systems bydrilling multiple basin-opening wells on an annual basis, the offshoreMauritania opportunity fits very well strategically with Kosmos' existingportfolio. We have now captured approximately 9.7mn hectares of high-impact exploration potential, with additional new venture initiativesongoing to selectively further our opportunity set. The new blockscaptured reside in the proven offshore Mauritania salt basin and includethe outboard fairway of the under-explored Upper Cretaceousstratigraphic play concept, Kosmos' core exploration theme. We lookforward to initiating a seismic programme over the blocks towards theend of this year or early next year."

Kosmos pens PSCs offshore Mauritania

Ind

ust

ry N

ew

s &

Even

ts

Red Spider announces West Africa deal

No shortage of oil and gas in Angola, a country with great potential

Red Spider technician works on eRED-FBtool on the production line.

S02 ORA 2 2012 News_Layout 1 12/04/2012 14:23

OFFSHORE AND ONSHORE accommodation specialist, HB Rentals has completed atwo-building accommodation project in West Africa, announced Regional SalesManager Mike Bradley.

The package included one 12-man module and a recreation room. The buildingswere installed onto beams that were welded on the deck to support the extra weightof the buildings. The enhanced design of the 12-man module was intended to ensureefficiency during offshore hook-up and installation.

“HB Rentals is committed to delivering the highest quality accommodations forour customers internationally, and these projects reflect our superior products andextensive project management capabilities,” said Bradley.

Connections made simple.

For communications solutions and services, Harris CapRock gives you easy access to the planet’s best satellite, wireless and terrestrial technologies.

Plus, connecting your operations with our reliable, high-performance communication services will help improve the daily operations of your exploration and production assets, enhance the HSE (Health, Safety and Environment) impact of your business and improve crew morale by keeping your remote workers connected.

It’s all possible when you choose the world’s leader in voice, video and data services for your remote oil and gas operations. No matter where on Earth your operations take you, we’ll make the connections, we’ll make them powerful and we’ll make them simple.

www.harriscaprock.com/energy-ora

© 2012 Harris CapRock Communications, Inc. All rights reserved.

RELIABILITY NEVER REACHED SO FAR™


ITF, THE OIL and gas industry technology facilitator,has announced new membership agreements withtwo major global service companies. Through theirmembership, Petrofac and Siemens will join otherhigh profile energy players in supporting newtechnologies through the ITF model to tackleglobal industry challenges. Neil Poxon, managing director at ITF, said:“Welcoming two of the world’s largest servicecompanies is a great coup for ITF as they bring awealth of knowledge and industry expertisewhich will further strengthen the resources

available to us. Our growing internationalmembership is absolutely crucial to fundingsome of the game-changing technologies thatwill secure hard-to-reach reserves and supportexploration in new frontier regions.”ITF members share funding and risk on bringingforward new solutions through Joint IndustryProjects (JIPs). Developers can secure up to 100per cent funding and retain full intellectualproperty rights. To date, ITF has launched morethan 180 JIPs from early stage projects throughto field trials and commercialisation.

SCHLUMBERGER HAS AGREED to acquireSPT Group, a software company specialisingin dynamic production flow modelling in theoil and gas industry.

The agreement was made with SPTGroup's owners, Altor Fund II.

SPT Group provides a combination ofsoftware and consulting services formultiphase flow and reservoir engineeringapplications.

“The dynamic modeling and reservoiroptimisation software of SPT Group willcomplement the existing Schlumbergerproduction software portfolio,” said TonyBowman, President, SchlumbergerInformation Solutions (SIS).

'In combination with the Petrel E&Psoftware platform and other SIStechnologies, this will enable customers tofurther optimise production from reservoirperformance to processing facilities.'

“This is a great testament to ouremployees and a remarkable opportunity forthe company,” commented Tom EvenMortensen, CEO of SPT Group.

Schlumberger acquiresSPT Group

Ind

ustry

New

s & E

ven

ts

9

HB Rentals completes project in W Africa

ITF boosts membership with leading service companies

S02 ORA 2 2012 News_Layout 1 12/04/2012 14:23


NNOT OFTEN DO top representatives of the main producer andconsumer groups comment simultaneously on majorsupply/demand issues surrounding oil. But such an occasion tookplace last month at the 13th International Energy Forum

Ministerial in Kuwait. The issue of the moment is of course the continuing riseof prices, with WTI increasing by five per cent in February alone; that’s up 20per cent this year. Neither side is happy with this.

The International Energy Agency’s views are well known and were thesubject of a special feature, “Excellent prospects for Africa’s oil”, in the last ORA(Issue One). We update this with a summary of Executive Director Maria van derHoeven’s views, as stated in the Gulf, below.

Mitigating volatilityBut what of the main producers’ grouping OPEC, to which so many of Africa’skey producers belong? Secretary General Abdalla S El-Badri provided a concisesummary of the complex situation described in full in the Organization’s MarchMonthly Oil Market Report. In just two words his address was about thenecessity for “Mitigating volatility”.

Mr El-Badri stressed that this is an age-old problem, and that withoutdrawing on OPEC’s own spare capacity – an excellent example was seen justafter the Forum closed – the tightening of supplies, which brings such angst tomost IEA members, would have been even sharper. In other words a lid is beingkept on price rises occasioned by such various factors as uncertainty over Iranand the impact of central Europe’s exceptionally harsh winter.

OPEC’s top executive pointed out that prices swung violently in 2008, fromnearly US$150/bbl to just $30 at one point; noone can plan to balance supplyand demand in circumstances like these.

The “financialisation” of oil markets was blamed for this, and Mr El-Badricited specifically the entry of “new players” such as index funds and sponsors ofexchange trade funds. Their strategies include hedging against inflation,exploiting arbitrage opportunities and plain old-fashioned speculation. Hementioned unwanted “herd behaviour” too.

“This leads to the question: Do futures prices still reflect the physical supplyand demand fundamentals, or are they mainly driven by financial motivations?

“At OPEC we believe that massive and rapid in- and out-flows of financialinvestments into oil markets can alter price dynamics away from fundamentals.This can exaggerate price swings, both up and down, in the short-term, and, ifpersistent, in the medium- to long-term…

“Security of demand is as important as security of supply.”To mitigate against this unwelcome new factor, the Organization, like the

IEA itself, projects its supply/demand calculations ahead to cope with a numberof different scenarios. Thus, “between higher and lower economic growthscenarios [just one of the variables allowed for, transportation technologychanges being another] there is an almost 20mn bpd difference [through 2035].”

Mr El-Badri concluded: “We cannot avoid speculation and volatilityaltogether. It is part of the market. However, it is essential to mitigate extremevolatility and excessive speculation, which are detrimental.

“Thus, it is important we look to well-designed regulatory reforms, continually

improve the quality and timeliness of data, and strengthen JODI*, advanceacademic research, and further enhance the producer-consumer dialogue.” Ofwhich the latest IEF Ministerial was of course an excellent example.

For its part the IEA is still fearful of a coming supply shortfall, its own MarchOil Market Report describing a “Heady brew of both real and anticipated supply-side risks, alongside a very evident tightening in actual market fundamentals…

“It seems appropriate to stand back and acknowledge a big picture …”Escalating supply-side risks are mentioned as a key part of this.

In her own address to the IEF the Agency’s senior spokesperson pointedout that global expenditure on crude oil last year was in excess of five percent of the world’s total GDP, an unsustainable situation last seen back introubled 2008 when deep near-global recession - most of Africa escaped -was one of the results.

“We should all be worried about recent increases in prices,” she concluded.The IEA expects global demand to rise by 0.9 per cent this year, almostprecisely the same as OPEC’s latest forecast.

Good news from AfricaThere is serious concern on both sides of the argument therefore,, but all welcomethe good news that continues to come out of both North and sub-Saharan Africa.Africa as a whole contributes far more crude to the world economy than itconsumes, and the gap is growing. This continent continues to feature six of theworld’s 10 fastest-growing countries, with SSA alone exceeding East Asian growthover most of the last decade. And several African stock markets, such as the JSE,are now exceeding the world’s rapidly-improving norms.

Further, the Euro did not collapse as some predicted, although it hasbelatedly lost a lot of its value this year. And demand for oil in China seems tobe moderating at last, with a record trade deficit being recorded in February.

So, as we headlined in the last issue, it all continues to point to “Excellentprospects for Africa’s oil”. ■

*Joint Organisations Data InitiativeORA HSE March 2012

Africa as a whole contributes far more crude to the world economy than it consumes.

“Security of demand is as important assecurity of supply.”

An

aly

sis

10

“Security of demand is as important as security of supply” said OPEC’s Secretary Generalin March just as its latest MOMR report was being released. The IEA has been giving itsviews on “the big picture” too.

Oil producers’ group responds to

consumer fears

S03 ORA 2 2012 Analysis_Layout 1 12/04/2012 16:48

PortHarcourt: Lagos: Ghana: Rest of Africa:+234 84 783 400, +234 1 736 0905, +233326 8 593832, + 1 832 888 7097

Automation & Software | Instrumentation & Control | Industrial Safety | Smart Grid | Turnkey Solutions | Technical Training

Your Automation

Partner for

West Africa...

We have learnt never to compromise on

and by partnering with the best and

working with the standards.

We focus on your

and needs, just so you can

make the best of your most critical assets.

Our vision is to be your best partner in

Safety, Timely

Delivery Quality

Electrical, Instrumentation, Safety

Systems, Control Automation

providing systems

that work!



LLARGE-SCALE DEEPWATER exploration andproduction has long been an aim of the oiland gas industry. However, only 20 yearsago deepwater E&P was often too

expensive and technically difficult to pursue. Insome cases, more energy might have beenexpended to reach oil and gas reserves than wouldresult from the finds themselves. And, at that time,onshore supplies were, if not plentiful, available inreasonable quantities.

All this has clearly changed. Driven bydiminishing onshore opportunities, multi-billionbarrel deepwater finds and technological advancesthat have enhanced the technical and economicfeasibility of oil production at great depths,deepwater is today a vast, multi-billion dollarbusiness.

Business research group Douglas-Westwood hasexamined this progression and attempted to predicthow it will develop. The World Deepwater MarketReport 2012-2016* examines the present state ofplay and outlook for the deepwater sector. The oilprice, clearly, will continue to drive muchdeepwater exploration. Indeed Douglas-Westwoodbelieves future price shocks are likely. As thecompany points out: “This will impact ondeepwater developments to the extent that theywill become even more economically viable as theoil price rises”.

More eonomically viableHowever, given the price reversals of previousdecades, is this time really going to be different?Steven Kopits, managing director of Douglas-Westwood’s New York office, thinks it is: “Thesupply-demand balance is quite different from‘those other times’,” he argues. “The oil supply hasbarely budged; China is prepared to take hugevolumes of oil over the next decade. So weanticipate continued excess demand over supply,which implies strong pricing in general. Of course,there can be oil shocks and recessions in between,but the dynamics are exactly reversed from, say,1979.” Having said which, he adds (this commentwas made in January), “The global economy ispretty much at its carrying capacity for the price ofoil. We peg that at US$95 / barrel for the US; $110for China. So $125 Brent may well proveunsustainable on the demand side over the longerrun. The US, for example, is shedding demandrapidly. January 2012 demand was down 4.7 percent from January a year ago.”

For oil companies the overall outlook for 2012is for greater expenditure; one estimate of

worldwide E&P budgets, from Barclays Capital,suggests they will increase by 11 per cent. Thelonger-term outlook indicates that subsea,predominately deepwater, developments willcontinue to play a strong role in the portfolios ofthe major independent oil companies and somenational oil companies, such as Petrobras of Braziland Norway’s Statoil. Of course, “most deepwaterplays are long-term commitments by definition,”Kopits points out.

As for the regions that will be the primary focusof activity, Eastern Europe and the FSU ispredominately a shallow water region, although itis likely to dominate global trunkline expenditureover the 2012-2016 period. The Macondo spill islikely to impact North American installations in2012 due to the 18 to 24-month lead-time for suchprojects. However, the outlook for 2013-2016 lookspromising, unless new safety and environmentalregulations delay recovery of activity in the Gulf ofMexico.

Despite a significant decline in activity duringthe global recession, deepwater basins remain animportant focus area for development in Asia,notably deep and ultra-deep fields in India,Malaysia and Indonesia. Australasia’s focus willlargely be on its massive offshore gas supplies.

Which leaves what are, at present, the two most

important deepwater regions of all: Africa and LatinAmerica. Latin America is currently the secondbiggest deepwater region by total capex afterAfrica. Douglas-Westwood notes: “Continuingdevelopment of the pre-salt basins off Brazil byPetrobras should see this region overtake Africa in2013.”

For now, however, Africa, and in particular WestAfrica, is the main focus of deepwater activity.Angola in particular has made a name for itself as aleading area for deepwater E&P, with an estimatedoutput of 1.7mn bpd in 2011. Recent onstreamprojects include Pazflor and Platina, whiledevelopments of the Canela and Kaomba fields areplanned or ongoing. Ghanaian activity focuses onthe vast Jubilee field (which was producing 70,000bopd in May 2011) and further development is onthe way, including integration with otherdiscoveries. Other planned projects in Ghanainclude Tweneboa and Enyera. Nigeria is of courseAfrica’s largest oil producer and already has anestablished deepwater oil and gas industry.Production is underway from the Agbami, Akpo andErha projects and development is underway atUsan. Planned projects include Bosi and Chota.Outside these three countries Egypt’s West NileProject and Mozambique’s Windjammer are alsonoteworthy.

It all seems promising but are there anydownsides compared to, say, Brazil? Kopits notes,“I have heard that, in some cases, they [Africancountries] are considered easier than Brazil, as thelocal government has less expertise and is thusmore dependent on the oil company.” However, headds, “Corruption is, of course, an issue. Africa isconsidered worse than Brazil.” There is a morepositive message in Kopit’s assessment of West

Deepwater basins remain an important focus area for development.

For now, Africa, and inparticular West Africa, is the

main focus of deepwateractivity

An

aly

sis

12

Technological advances, enormous finds and high oil prices are driving the growth of adeepwater E&P market that not long ago was largely unviable. And, says VaughanO’Grady, a new report suggests that the continuing deepwater boom is going toencourage massive expenditure — much of it linked to Africa.

Diving profits:

E&P deep undersea


Africa’s ultra-deepwater potential: “The basinshould be the mirror image of Brazil”. As for howlong Africa’s three oil giants can keep upproduction, he simply says “A long time.”

Optimism for global equipmentNot surprisingly, then, the global equipmentforecast is overwhelmingly positive. The deepwatermarket brings together a number of sectors, all ofwhich offer opportunities for vendors, among themdrilling and completion, floating productionsystems and, of course, pipelines. However, subseahardware will be a large part of E&P, and thereforeeconomic, activity. Douglas-Westwood’s suggestedshopping list for deepwater exploration includesproduction hardware such as subsea trees, controlsystems, templates and manifolds, flying leads andjumpers; subsea construction, umbilicals, risers andflowlines; and processing hardware (such asboosting/pumping, separation, compression andmultiphase metering).

Of course where and how this equipmentgenerally, and pipelines in particular, may have arole depends on the context. As Kopits says,“Distance to shore and depth can both influencethe attractiveness of pipelines. Shuttle tankers aretypically used where pipeline networks are notavailable. This applies to both Brazil and WestAfrica.”

However the oil companies’ money is spent theamount that is spent is going to rise: DouglasWestwood forecasts a global capex of over $232bnfor the 2012-2016 period. This is, the companyadds, 90 per cent more than the amount spent inthe preceding five-year period. The companyconcludes: “In the global context, the overalloutlook for the global deepwater business is clearlyone of significant long-term opportunity withsubstantial growth in activity in West Africa, Braziland Asia.”

Production at unimaginable depthsAstonishing engineering feats and amazingtechnical progress have taken oil and gasproduction to previously unimaginable depths. It isnot uncommon to hear talk of drilling andproduction nearing 3,000 m, and the economiclandscape will be affected as deepwater projectsbecome increasingly capital-intensive. E&Pcompanies will be further challenged to build a

profitable business despite tight margins. And, aswe have seen, this implies a significant role for theinternational oilfield service and equipment vendorsthat can help them to do that — and perhapsresearch and development. Not that we can expectsudden leaps forward. As Kopits points out, “Subseaprocessing is the most compelling technologicaltopic regarding breakthroughs. But there remainissues. There are incremental improvements all thetime, but no game-changers I’m aware of.”

Still as the industry closes in on 3,000m depthsone is bound to ask how far is too far offshore? Andhow deep is too deep? On distance, Kopits is clear:“There is no such thing as too far offshore.” Anddepth? “To the best of my knowledge, Perdido [inthe Gulf of Mexico] is the deepest oil development,the deepest drilling and production platform, andwill produce from the deepest subsea well in theworld: 2,800m. But if the oil’s there, I see noreason to think the industry couldn’t go deeper.” ■

*The World Deepwater Market Report 2012-2016is the latest in a series of business studies byDouglas-Westwood an independent company andthe leading provider of business research &analysis, strategy and commercial due diligenceon the global energy services sectors. For pricesand further information, see www.douglas-westwood.com/shop


An

aly

sis

14

“The [West African] basinshould be the mirror image

of Brazil”



DDEALING WITH ‘MACRO’ offshoreemergencies such as a major spill iswell covered by specialist privateoperators like OSRL and the

internationally funded IPIECA. Both are well knownin Africa’s deep and shallow waters. However, whenit comes to the ‘micro’ scale – reacting to a failureof safety-critical equipment, for example – the rigoperator is largely dependent on his own resources,initially anyway. This is where in-advance operationalrisk assessment (ORA) comes into its own.

ORA is based on the development of robustprocedures for the implementation of adequateassessments for dealing with all the abnormalsituations that can be reasonably anticipated.

Full assessment of anticipated operational risksprior to implementing adequate mitigatingmeasures is essential to ensure accident preventionand safe operations offshore. Potential accidenthazards must first be identified and recorded bycompetent personnel so that all associated safety-critical elements can be fully evaluated and signedoff, both on the rig and at the operatingheadquarters.

Complete risk elimination too much to askComplete elimination of all risk is too much to ask;keeping risks “as low as reasonably practicable” is theusual objective of both on- and off-site duty holders.

These include qualified individuals who areeither directly responsible or accountable for alloperations, including dealing with accidents, andthose who are remotely consulted about how torespond to them. There is usually a separate tier ofsenior management that has to be kept informedabout what is going on, including what mitigatingmeasures have been put in place.

On the rig itself these duty holders usuallyinclude offshore installation managers, HSEadvisers, technicians and engineers, and verifiers;equipment vendors’ own personnel are oftenavailable on the site too. If not they are usuallyinvited in once a relevant incident has occurred ora major accident hazard has been identified.

These measures need to be reviewedwhenever specific investigating, drilling orproducing operations extend beyond whatever is‘normal’ for the site. And equally when the usualprotecting or monitoring devices such as safety-critical equipment (e.g. fire-control pumps) areout of action for some reason. Whenever thishappens the pre-planned operational riskassessment process should swing smoothly intooperation, which may and may not result in full

shut-down procedures being implemented. The same thing happens before re-starting

production or maintenance operations. All this can betriggered by something as simple as malfunctioningof a cooling system within an oil/gas processingmodule or the failure of a well barrier.

Major risk assessment stepsThe major risk-assessment steps that need to betaken will nearly always include:6 ensuring rapid and appropriate initial response

takes place, automatically if possible6 accurate identification of anticipated follow-on

hazards6 accurate logging of the failure of all safety-

critical elements6 full evaluation of the resulting risks, including

the probability of foreseen equipment failuresand the ranking of resulting risks, includingthose anticipated down-the-line

6 deciding by competent personnel whether toshut down the whole complex or just theaffected plant, and whether or not to end

reliance on automatic remote monitoringequipment

6 assessing residual risk after the primary incidenthas been satisfactorily dealt with

6 ensuring the “as low as reasonably practicable”level of follow-on risk has been returned to

6 recording the whole incident and gainingapproval for mitigating measures taken

6 arranging for a final inspection once repairs havebeen completed.One organisation that can help materially with

the very obvious training needs of all this is OPITOInternational (www.opito.com/international).Extensively experienced with risk anticipation in theMiddle East, North Sea and Far Eastern oil and gasprovinces, this not-for-profit safety body recentlyannounced the extension of its training for offshoreemergency response activities to the US Gulf. Itnow offers response training services out ofHouston too, especially handy for operators in Northand West Africa.

OPITO offers all its international clients andtheir duty holders - mandatory in some territories -a structured standard-based risk-assessmentframework which stretches from basic offshoresafety through a range of specialised responseroles. Integration based on international experienceis the key, and this framework replaces thesometimes fragmented procedures used elsewhere.

“Raising the bar on safety” is how its activitiesare described by Gulf of Mexico VP Albert Skiba. ■

OPITO offers all its international clients and their duty holders a structured standard-based risk-assessment frameworkwhich stretches from basic offshore safety through a range of specialised response roles.

Keeping risks ‘as low asreasonably practicable’ is theusual objective of both on-and off-site duty holders.

An

aly

sis

16

Operating risks are never absent on a prospecting or producing rig, especially when thelocation is offshore. Full assessment of major accident hazards and pre-planning ofmitigation measures by engineers, technicians and HSE personnel working as a team isthe norm these days.

Risk management

offshore


PEM Offshore LimitedPlot 231, Trans-Amadi Industrial Layout, Port-Harcourt, NigeriaPhone: +234.(0)84.361.390 Mobile: +234.803.403.6935

PEM Offshore Inc.2425 West Loop South, Suite 200 Houston, 77027 Texas, USAPhone: +1.713.297.8868 Fax: +1.267.224.9070 Mobile: +1.832.339.6843

OUR PARTNERS

UAE Mobile: +971.555.122.725 Email: [email protected] www.pemoffshores.com

OUR PRODUCTS

• Sewage/Waste Water Treatment

• Reverse Osmosis Desalination water making

• Offshore Equipment supply

• Gas Detection devices/Monitors

• Lifesaving Appliances/Marine safety appliances

• Offshore Containers & Baskets

• Marine and Offshore Consultants

• Marine Warranty Surveys, Pre-purchase, On/Off - Hire Inspections,

• Riggings/Loose Lifting Equipment Inspection, NDT Services

• Vessel Managers and Marine Technical Advisers

• Rope Access Inspection / Risk Based Inspections

• Underwater Engineering, Subsea Inspections and Support

OUR SERVICES

PEMPEM OffshoreDelivering Great Services

S04 ORA 2 2012 Ghana_Layout 1 12/04/2012 14:33


IIN DECEMBER 2011, the governmentsubmitted the draft Local Content andParticipation Bill for the energy sector toParliament. The bill sets a highly ambitious

90 per cent local content and participation in allaspects of the value chain by 2020, and stipulatesthat all major stakeholders consider Ghanaiancompanies and operators first in the awarding ofcontracts. However, due to a lack of domesticexpertise in the energy sector, firms are unlikely tobe able to comply with proposed targets,heightening contract and bribery risks as thegovernment is likely to use the policy as leverage.Given that E&P firms have already showncommitment to compliance by offering trainingopportunities to local employees, the governmentis likely to target first energy service firms for fullcompliance.

While extensive parliamentary debate on thebill is likely, the adoption of clauses within the billis likely before the vote given broad consensusexists among key influence groups. This includesthe initial 30 per cent provision of local staff, thefive per cent local equity stake in service contracts,and the awarding of contracts in non-technicalaspects to local firms. The law is driven by theincreasing social demands for greater benefits fromGhana's resource wealth, hence the ruling NDCparty's desire to adopt the law ahead of theDecember 2012 elections.

As a new oil producer, Ghana lacks the requisitehuman resource knowhow to manage the valuechain in the three-to-five-year outlook. Also, energyfirms will face financial and technical challengesstemming from the inability of local sub-contractorsand suppliers to meet capital and operationalrequirements set by the industry. If the localprocurement provision is enforced without atransitional phase, it is likely to jeopardise healthand safety standards and quality control of

operations. Furthermore, despite the recapitalisationof the insurance sector to the minimum of US$1mnin core capital and the syndicated local insuranceof the FPSO's, an EA source reported that thecapacity of the local insurance industry did notseem adequately prepared to underwrite some ofthe high-capital risks, especially with new projectscoming on stream.

Risks of industrial action will also increase amidmounting reports of depressed wages for localworkers. On 30 November 2011, local employees ofUS firm Weatherford protested in support of a 25per cent salary increment. The local labour quotarequirements will give Ghanaian workers morebargaining power, which is likely to embolden localstaff to make greater wage demands.

However, the risk of strikes and disruptions atmines and ports is likely to recede in the three-yearview as the economy improves, inflation goes downand the government loosens fiscal austeritymeasures. In January 2010, the governmentincreased the minimum wage by 17 per cent, inline with inflation.

Financial and technical challengesProtests are likely to be more sophisticated in 2012as local groups increase co-operation with foreigncounterparts. Foreign oil companies will be undergreater scrutiny, and political pressure will push thegovernment to increase Ghana National PetroleumCorporation's (GNPC) shares in projects: it holds13.75 per cent in the Jubilee oil fields. Tullow, andpartners, and new entrants are at risk. However,GNPC abandoned its attempt to obtain KosmosEnergy's 23.49 per cent stake in the Jubilee oilfield, with Kosmos pledging to develop the assetafter the government cancelled its proposed sale toExxonMobil. Further, if the Local Content andParticipation Bill becomes law, as is likely, foreignenergy companies, especially first energy service

firms, will be at increased risk as the government islikely to use the policy as leverage over operatorsunable to comply.

Bribery and corruption risksGhana is EITI compliant, yet the risk of corruption islikely to increase in the nascent oil sector, despitegovernment anti-graft measures. A number ofrecent scandals have heightened concerns overcorruption in Ghana and undermine the country'spreviously high standing on governance in theregion. In September 2009, UK engineeringcompany Mabey and Johnson was convicted ofpaying bribes in the 1980s and 1990s to Ghanaianpoliticians. This has led to the resignation of twoserving ministers.

The current NDC government is pursuingcorruption investigations involving contracts signedunder the former administration. Energy-sectorcontracts awarded to the US' Kosmos Energy andNorway's Aker are the subjects of investigationslaunched in 2009 after accusations of favourableconditions and strong associations between localpartners and former President John Kufuor. Thegovernment is also investigating the favourablerevenue share awarded to Kosmos and local partnerEO Group under the Kufuor administration. Thegovernment is likely to renegotiate certain high-profile contracts as a result, particularly in theenergy sector.

On 2 March 2011, Parliament passed the OilRevenue Management Bill, which is expected toincrease transparency in the sector and decreasesovereign non-payment risks. An independentregulator and increasing local-content provisions areexpected as well as an independent revenue body.Ghana reached EITI compliance in October 2010.

However, the opposition continues to delaypassage of the Oil Exploration and Production Billsthat would be key to preventing corruption as oilproduction gathers pace. The opposition has 109 ofparliamentary seats so it is difficult to passanything without their approval. Further, if theDecember 2011 Local Content and ParticipationBill becomes law, as is likely, foreign energycompanies will be at increased risk. These foreignoperators are unlikely to be able to comply withproposed local content and participation targets,heightening bribery risks as the government islikely to use the policy as leverage. Energy servicefirms, such as Baker Hughes, ABB, ASCO,Halliburton and Schlumberger are most at risk. ■

Exclusive Analysis LtdSub-Saharan Africa Risk Score Table for oil producers.

Gh

an

a

18

The Africa Forecasting Division, led by Natznet Tesfay, has calculated Ghana’s overallcountry risk score to be 2.4 (High Risk) for the one-year outlook. While Ghana’s risk scoreis lower than that of other oil producing sub-Saharan nations (see table), there are stillrisks that investors and businesses need to understand when operating in the country.

Assessing risk for investment

in Ghana


Leadership in technology.

The world is growing. Every day, more people, vehicles, homes and factories are driving an ever-increasing demand for energy.

That’s why ExxonMobil is investing more than $1 billion annually in research, development and technology application—part of our commitment to developing the breakthrough technologies required to meet the world’s rapidly growing energy needs.

For example, at the deepwater Kizomba projects in Angola, ExxonMobil developed one of the most challenging extended-reach drilling programs ever undertaken.

So whether it’s investing in research and development, delivering innovative petroleum products or investing in communities, ExxonMobil is developing more than oil and gas—we are helpingto support Africa’s future.

Learn more about our work at exxonmobil.com



FFOR MANY YEARS, officials from theGhana National Petroleum Corporation(GNPC) toured the world’s oil capitals inthe hope of drumming up investment in

the country’s upstream sector. At that time, it was a hard sell.Back then, Ghana was viewed as little more

than a backwater, in the shadow of its westAfrican peers, notably the region’s biggest oilproducer, Nigeria.

But that all changed in 2007 when big oil wasdiscovered with the Mahogany-1 well in thecountry’s largely untested deepwater.

That discovery, in the West Cape Three Pointslicence, was the trigger for a succession of oilfinds that have since helped propel Ghana to theforefront in the battle for investment dollars.

A year ago, international operators Tullow Oiland Kosmos Energy launched first productionfrom the area, now known as the Jubilee field,which also straddles the Deepwater Tano licence.

Jubilee started pumping crude in December2010 but a target of 120,000 barrels per day (bpd)was delayed in 2011 by technical problems.

In 2011, gross production from the Jubileefield averaged 66,000 bpd, according to projectleader Tullow, just over half the plateau target.

At the start of March, Kosmos said that by theend of the year, it anticipates gross production atthe site to average between 70,000 and 90,000bpd, still some way below the hoped for outputfigure. Plateau production is now being targetedfor 2013, Tullow reported in March, after anextensive work programme planned for this year.

GNPC roleDespite these production teething troubles, itmeans Ghana is now an oil exporter of some note- as GNPC bosses had long claimed it would oncebe - and on the ascendancy, with more drillingunderway, and further production expected fromthe many oil fields now discovered.

This dramatic turnaround in the fortunes ofGhana’s oil sector has had profound implicationsfor the country - a long-term fuel importer - andfor GNPC itself, the national oil company.

Founded in 1983, the state oil concern hopesto become a leading global oil and gas company,partnering international operators like Tullow, forthe benefit of all Ghana and its people.

GNPC chief executive, Nana Boakye Asafu-Adjaye, says the company intends to develop itsoperating capabilities further for achieving thevision of a nationally led oil and gas sector that

contributes and enhances positively to nationaldevelopment. Furthermore, he believes thatrecent offshore drilling success is just the tip ofthe iceberg.

“Despite the recent exploration andproduction successes, the country’s sedimentarybasins remain under-explored,” he says.

“A number of interesting leads and prospectswith good potential for oil and gas accumulationstill remain.”

InvestmentSince the discovery of oil, Ghana has become anattractive investment destination for energycompanies and their suppliers, with a pro-business, open door policy and a stable,democratic political backdrop to work from.

It means GNPC is well positioned to enterstrategic alliances with more oil companies toexplore and develop the nation’s hydrocarbonpotential further for mutual benefit.

Just as Ghana itself is often viewed as amodel for stability and prudent managementacross the West African sub-region, GNPC hopesto leverage these strengths in its nascent oil andgas industry.

“We seek companies that are technically andfinancially capable,” says Asafu-Adjaye. “Theymust have systems and processes and a long-term commitment to stay in Ghana.”

This is already becoming evident with GNPCforging positive alliances not only with existingoperators active in the country, but with otherinternational companies too.

Last year, it teamed up with PetroSaudi, aninternational oil company from Saudi Arabia, theworld’s biggest oil producer, for a strategicalliance to explore joint ventures in exploration,development and production, oilfield services andinfrastructure and national capacity building.

Upstream 2012Meanwhile, key operators such as Tullow andKosmos are now pledging many billions of dollarsof new investment in Ghana.

More than 90 per cent of the US$600mnKosmos Energy 2012 capital budget is earmarkedfor Ghana, for instance.

This is broadly split between new explorationactivities and development work, with plans toparticipate in nine new wells in 2012.

Multiple flow tests and reservoir studies, andappraisal wells, are planned for the Teak,Mahogany, Akasa, and Banda discoveries on the

West Cape Three Points Block this year. On the Deepwater Tano Block, there are plans

for two appraisal wells, as well as flow tests atthe Enyenra and Ntomme oil discoveries.

A development plan for the Tweneboa,Enyenra, Ntomme (TEN) area is expected to besubmitted for approval during the year, that willfurther boost Ghana’s production numbers.

The intention is to develop the threeaccumulations in an integrated subsea clusterusing a single floating production storage andoffloading (FPSO) vessel.

New exploration targets include theDeepwater Sapele, Wawa, and Turonian Deep(also known as ‘Tweneboa Deep’) prospects onthe Deepwater Tano Block, which have netunrisked mean resources of more than 100mnbarrels of oil equivalent combined.

In addition, the extension of the Jubilee fieldwill gather momentum, with the Phase 1Adevelopment sanctioned in January 2012, whilethe drilling of the first production wellcommenced on schedule in February.

This initiative, to be conducted over an 18month period, will cost around $1.1bn.

Nana Boakye Asafu-Adjaye, GNPC’s Chief Executive.

The dramatic turnaround inthe fortunes of Ghana’s oilsector has had profoundimplications for GNPC.

Gh

an

aA profile on Ghana National Petroleum Corporation (GNCP).

GNPC gears up for Ghana

oil and gas sector growth



Gas sectorThere is also the makings of a nascent naturalgas industry as well. The Jubilee operators areseeking to utilise associated gas from theoffshore oil field for use onshore in power plantsand in industry, with GNPC playing a keyfacilitating role.

The state company is proposing a GasInfrastructure Project to transport gas from theJubilee FPSO gas export termination point to aprocessing plant at Domunli in the Western

Region of Ghana. It is currently assessing workthat will include the construction of several keygas pipeline facilities.

These include: a 12” 50 km pipeline from thetermination point to the Domunli processing site;a 12” 38 km pipeline to transport dry gas fromthe gas processing plant to Effasu; and a 20” 100km pipeline to move dry gas from the processingplant to the Aboadze thermal power station.

Other facilities on the agenda include theconstruction of a riser platform at up to 80 m

water depth to gather gas from the otherpetroleum developments from the Tano and CapeThree Points Basins; plus a 6.5 km pipeline andinstallation of an export buoy in approximately 30m of water offshore of the gas processing plant.

These are big challenges for the state oilcompany as it grows together with the nation’supcoming energy sector and the leadingoperators it is now partnering.

GNPC, like Ghana’s oil sector, is finallycoming of age. ■

TULLOW OIL HAS announced that the Enyenra-4A appraisal well, in theDeepwater Tano license offshore Ghana, has successfully encountered oil in verygood quality sandstone reservoirs. The firm also reported that good evidence ofcommunication with the Owo-1 discovery wells and the Enyenra appraisal wellsconfirms the significant extent of the Enyenra light oil field.Located just under seven km south west of Enyenra-2A and almost 21 km southof the Enyenra-3A well which defined the northern end of the Enyenra oil field,the Enyenra-4A well was drilled to define the southern extent of the field.Results of drilling, wireline logs, samples of reservoir fluids and pressure datashow that Enyenra-4A has intersected 32 m of net oil pay. Pressure data fromthe oil leg has demonstrated that the oil is in static communication with the oilseen in the other wells in the field and indicates a continuous oil column ofapproximately 600 m.The Ocean Olympia drillship drilled Enyenra-4A to a total depth of 4,174 m in

water depths of 1,878 m. Wireline logging has been completed and injectivitytests are under way to provide important data for the design of the waterinjection system. On completion of operations, the well will be suspended forlater use. The drillship will return at a later date to the Deepwater Tano block toperform a drill stem test on the oil zone in the Ntomme-2A well."This bold step out is an excellent result which is further enhanced by thequality and thickness of the reservoirs found at this downdip location," saidTullow Exploration Director Angus McCoss."Proving a 600-m oil column over a distance of 21 km with three appraisal wellsis a significant achievement which was only possible through the use of highlyrefined geophysical techniques. The appraisal of the Enyenra field will nowcontinue with the monitoring of the pressure gauges deployed in several wellsto determine the level of dynamic connectivity within the system and to furtherrefine the estimates of oil in place."

Tullow finds oil at Enyenra-4A well in Ghana

Gh

an

a



TTHE UNITED STATES is interested in theoutcome of the boundary disputebetween Ghana and Côte d’Ivoire overparts of the Jubilee Oilfields. The two

countries are locked in talks aimed at resolving amaritime boundary dispute sparked by fresh oildiscoveries. Côte d’Ivoire is claiming that oilcurrently being explored by neighbouring Ghanalies in its territorial waters in a dispute that hasintensified as prospectors inch closer to asuccessful find.

“The United States has, as we say, no dog in thefight. We are very interested to find out theresults,” US deputy assistant secretary for AfricanAffairs, William Fitzgerald said in a recentteleconference with international journalists.American oil company Kosmos, which is a partnerin the Jubilee Field with an 18 per cent stake, hasexpressed anxiety over the future of a portion of itslicence in the Deepwater Tano Block if the disputeremains unsolved. “Uncertainty remains withregard to the outcome of the boundary demarcationbetween Ghana and Côte d’Ivoire and we do notknow if the maritime boundary will change,therefore affecting our rights to explore anddevelop our discoveries or prospects within suchareas,” Kosmos said in a statement last year.

The Ghanaian authorities have, however, allayedstakeholders’ fears with the chief executive of theGhana National Petroleum Corporation (GNPC),Nana Boakye Asafo-Adjei, saying claims ofownership of some of its oilfields by the Côted’Ivoire do not have merit. Fitzgerald said it was upto the governments of the two countries to solvethe problem, but was ‘not sure what the timeline isto make a decision between the two countries.’Both the Ivorian president, Allasane Ouattara, andhis Ghanaian counterpart, John Atta Mills, have metover the matter. “I know that President Ouattaraand President Mills have met and discussed thisand given the work over to a commission betweenthe two countries to try and solve it in a equitableway,” Fitzgerald said.

Ghana officially entered the league of oilproducing nations in December 2010 after thediscovery of the offshore Jubilee Field three yearsearlier. The new exploration ground lies 74 nauticalmiles off the country’s western coast and promisesan additional US$1bn a year in revenue to thenational purse.

Before the Jubilee Field came on tap in 2007,Ghana and Côte d’Ivoire respected a median lineas the maritime border, but the promise of morehuge oil and gas deposits beneath the seas appears

to have raised the stakes for resource control. In2010, the Côte d’Ivoire petitioned the UN tocomplete the demarcation of the Ivorian maritimeboundary with Ghana after exploration firm Vancodiscovered oil in its Dzata-1 deepwater-well.

Simmering tensions were exacerbated by Côted’Ivoire’s disputed elections of November 2010 inwhich Ghana was seen as being a sympathiser offormer president Laurent Gbagbo. In March of thatyear Ghana began initiatives to safeguard itsborders against what it termed as ‘intrusion’,setting up the Ghana Boundary Commission toenable it to negotiate proper demarcation of itsland and maritime borders.

The new commission began talks with adelegation from the Côte d’Ivoire led by its interiorminister, Desire Tagro, in the hope of amicablyresolving the row. Although details of the

negotiations are scanty, reports indicate that theCôte d’Ivoire mapped out a new maritime border,which covers part of Ghana’s prolific oil fields.

Production partners kept on the edgeThe developments are keeping production partnersin Ghana on the edge as they have expressed fearsthat any changes resulting from the outcome ofdiscussions could affect their operations. Thesedevelopments, international relations experts say,must be handled with careful diplomacy so as notto further strain relations between the twocountries. Vladimir Antwi Danso, a fellow at theUniversity of Ghana’s Centre for InternationalAffairs, also pointed out that reckless handling ofthe issue by the media could inflame passions.“There is no need to go to war on this, the bodiesare there to solve the problem,” he said. “Eitherthe border commission that we have set up will beable to solve the issue or, if one side is not ready tolisten to the result, we will have to take it up withthe United Nations.”

Questioning why Côte d’ivoire was now raisingthe border issue when it remained silent over theJubilee Field discovery in 2007, Antwi Danso added,“We must interrogate all these things and ourdiplomats must be very careful as to how to goabout negotiating because if we don’t take care,tempers will flare up.”

Oil and gas allocations along the Ghana-Côte d'Ivoire border

Uncertainty remains withregard to the outcome of theboundary demarcation and

we do not know if themaritime boundary

will change.

Gh

an

aGhana's discovery of oil on its border with Côte d'Ivoire is testing the long-standing relationship between the twonations. The long running dispute over oil has led to Côte d'Ivoire's Director General of Hydrocarbons and Petrociunveiling a new maritime border with Ghana in November 2011, that includes some of the massive oil wealth inthe western region, Ghana's Jubilee oil fields. Jon Offei-Ansah reports.

Determining the

maritime boundaries


Southey Off Shore Engineering and Maintenance Services: SERVING THE OIL AND GAS INDUSTRY IN AFRICA

Southey Contracting’s Offshore Division is increasingly active in all major Oil and Gas provinces off Africa’s coastlines including Angola, Gabon, Cameroon, Ghana, Nigeria and East Africa including Tanzania and Mozambique.

A strong Support Office in South Africa with a recently acquired state of the art hub in Cape Town comprising a 1,600m square office and warehouse facility will continue supporting strong growth throughout Africa and ensuring high standards of service delivery are met.

Significant projects have been undertaken in the provision of maintenance and inspection services to the Offshore Exploration and Drilling Sector, including services performed on drilling rigs, production platforms and FPSO’s where Southey has employed it’s technological and human capital for the effective execution of our client’s requirements.

Multidisciplinary Engineering &

Maintenance Services

Inspection and Non-destructive

Testing & Certification Services

Lifting Gear Inspection &

Certification

Access – Scaffolding and Rope

Access Services

Ultra High Pressure Water Blasting

Application of coatings and Linings

Tank Cleaning

Marine and Offshore Crew

Assignments

Southey’s Bolt torque & tensioning service is achieved by investment in the latest technology and tools to facilitate

rapid and safe completion of this essential task

Scaffolding and inspection services on a knuckle boom crane

UHP Water Blas�ng mobilised off shore

Steel replacement project using rope access and scaffolding

MPI inspec�on of a spud can during a UWILD

Rope Access technics assist with the applica�on of specialist Marine Coa�ngs

Southey specialises in the supply, erec�on and dismantling of complex scaffolding structure both on and offshore.



LOG ONTO WWW.PORTWESTCOM CALL OUR SALES OFFICE ON +44 (0)1709 894575 OR EMAIL [email protected]

For further information

Kwesi Aning, a security analyst at the Kofi AnnanInternational Peace keeping Centre, believes thegovernment should nevertheless take a firm stance.“More often than not, when these problems arise,there is a certain naivety on the Ghanaian side, acertain humanitarian approach, saying we are allbrothers,” he said. “We are not brothers. TheIvoirians… have made their calculations and they arewilling to push this demand as far as possible to getwhat they want.” He argued that a bi-partisan groupof technical experts with the requisite knowledge onissues of such magnitude was key to ensure thatrelations between the two countries do notdegenerate, pointing out that the Ivoirians had apresented ‘well structured and co-ordinated case’that put them ‘miles ahead’ of Ghana as far as thearguments for demarcation is concerned.

“The Ivoirians have been structured, they’ve beenco-ordinated and, irrespective of their own internalpolitical crisis, they have the vision to make theCôte d’Ivoire a richer country irrespective of whetherit is stable or not,” he stated. “In their struggle withus over where the boundaries are, the Ivoirians aremiles ahead of us. I hope… a bi-partisan group oftechnical experts is put together, the money is foundto support their work, they are given theindependence of purpose to bring Ghana’s interestonto the table so that the [oil] find can be used toimprove the lives of the people of this country.”

According to Aning, if tensions between thetwo counties worsened, Ghana and Ivory Coastcould replicate the conflict that ensued betweenNigeria and Cameroon over the Bakassi peninsula.Although the border was never permanentlydelineated, Bakassi was considered part of Nigeriauntil it began attracting interest from oilexploration companies. In 2008, followingintervention by the International Court of Justice,the territory was formally ceded to Cameroon, butas yet no oil has been found.

Over 30mn barrels already producedMeanwhile crude lifted from Jubilee Field mid-March crossed over the 30-millionth barrel ofJubilee Oil, since the field started production onNovember 28, 2010. The 30 millionth barrelpumped from the field was reached following thesuccessful lifting of the 31st cargo of about990,000 barrels of the light sweet crude oil fromthe field by Anadarko & Sabre Oil and Gas,bringing the total crude lifted from the field toover 30,300,000. Jubilee operator Tullow Oil’slifting of 996,358 barrels on 2nd March, broughtthe total lifting to 29,327,955 and with afavourable world crude price hovering above the$120.00 per barrel mark, partners have beenlifting around their maximum allowable cargo of997,500.

Ghana has so far lifted 4,926,673 barrels andtherefore its sixth cargo would bring thecountry’s total lifting to date to about 5,924,173barrels. Field Operator, Tullow Ghana Limited,has so far lifted the highest quantity of JubileeOil of 10,609,113 barrels, followed by KosmosEnergy with 6,901,950 barrels, with theAnadarko – Sabre Oil & Gas Holdings groupraking in 6,890,219. Production from the field,which started at a daily rate of less than 40,000bpd rose steadily to 85,000 bpd sometime lastyear, before it declined to below 80,000 bpdrate, registering a shortfall of a third of theprojected plateau for 2011.

Jubilee Operator, Tullow Ghana Limited inNovember 2011 reported that ‘production rateshave been below expectations due tomechanical issues in certain wells related to thedesign of the well completions,’ adding thatsuch problems were not unusual for a new fielddevelopment of this type and remedial workwas ongoing. The Jubilee Field is currentlyproduced by the floating production, storageand offloading FPSO Kwame Nkrumah MV 21vessel, owned by the partners. The Jubileepartners are already implementing Phase 1Adevelopment of the field, to boost production tothe 120,000 bpd capacity of FPSO KwameNkrumah MV 21. ■

Gh

an

a


S05 ORA 2 2012 Ghana 02_Layout 1 12/04/2012 14:37


TTHE PROJECTION BY the government ofGhana to increase power supply by 2015due to the discovery of huge deposits ofnatural gas at the Jubilee Offshore Oil

Field is welcome news. It must also beremembered, however, that this resource is finiteand therefore a better alternative power source isneeded to act as a long lasting complement. Thissource could come in the form of nuclear power.

Ghana’s Vice President, John Dramani Mahama,recently announced that the country will increasepower generation to ensure a reliable power supplyand become a net exporter of power in the WestAfrica sub-region by 2015. Solar and biomass wereother sources of energy mentioned by the VicePresident to be explored but he remained silentregarding nuclear energy.

Nuclear energy originates from the splitting ofuranium atoms in a process called fission. At thepower plant, the fission process is used to generateheat for producing steam, which is used by aturbine to generate electricity.

Ghana’s electricity consumption has beengrowing at 10 to 15 per cent per annum for the lasttwo decades and it has been projected that theaverage demand growth over the next decade willbe about six per cent per year. According to energyexperts, electricity accounts for about 11 per centof the nation’s final energy consumption and with acustomer base of approximately one to four million,it has been estimated that 45-47 per cent ofGhanaians, including 15-17 per cent of the ruralpopulation, have access to grid electricity, with aper capita electricity consumption of 358 KWh. Allthe regional capitals have been connected to the

grid. Electricity usage in the rural areas is estimatedto be higher in the coastal (27 per cent) and forest(19 per cent) ecological zones than in the savannah(4.3 per cent) areas of the country.

A positive ideaIt is a positive idea for the government of Ghana toresolve to diversify the power sector away from acomplete reliance on hydroelectric power towardsthermal fuel sources. The hydroelectric powerplants at Akosombo and Kpong all in the EasternRegion, which over the years have been the mainsource of power generation in the country, areprone to seasonal variations in water levels creatingperiods of severe electricity crisis like theexperiences the country went through in 1983,1993, 1980, 1999 and 2006-2007.

These difficult periods, according to experts,enabled the nation’s major power house, VoltaRiver Authority (VRA), in 1997 to build a number ofdiesel and crude oil – fired thermal plants to meetpeak power demand and to provide backup in theevent of occasional shortfalls in hydroelectricpower. But thermal power generation has proven to

be expensive in Ghana with the high price of crudeoil on world markets. Using the under-constructionGhana Gas Plant in Takoradi in the Western Regionto help increase megawatts of electricity islaudable but policymakers must complement thegas factor with sustainable nuclear power.

Some energy experts are playing down the ideaof nuclear power saying that it is unreasonable todelve into nuclear at this time since the countryhas discovered huge deposits of natural gas. But itis important to remember that the country’s long-term energy needs require planning properly for thefuture and assessing options so as to avoid beingtaken by surprise by events.

Abhorrence of nuclear power stems from certaindisasters associated with it in the past for some, oneexample being the March 2011 Fukushima nuclearenergy disaster in Japan, but Professor EdwardAkaho, Executive Director of Ghana Atomic EnergyCommission (GAEC) noted that nuclear energy is aproven technology, being used by many differentcountries over 50 years and that its accompanyingallied technologies have the potential to promoteeconomic development in the country.

In 2007 when Ghana experienced an energycrisis, the then President John Kufuor inaugurated aNuclear Power Committee whose responsibility wasto prepare pre-feasibility studies on the country’schances of expanding its power generation byincluding nuclear energy. The committee, whichwas chaired by Professor Daniel Adjei Bekoe, formerchairman of the Council of States under theKufuor’s administration, presented to thegovernment after nearly five months a roadmap foradopting nuclear power by 2018.

Focus now on gas resourcesNo mention has been made of this nuclear powerroadmap since and the overriding focus is now onthe country’s gas resources, with the governmentprepared to tap it to the fullest for the country’spower requirements as well as for thepetrochemical industry.

As pointed out by Professor Akaho, in the earlypart of 2011 in an interview with Public Agenda aprivately-owned weekly newspaper, “Atomic energyexperts from the International Atomic EnergyAgency (IAEA) are expected in the country soon todiscuss the location characteristics of the proposedGhana nuclear electricity plant, and the visit willprovide a further boost to the country’s agenda toexplore nuclear energy for electricity generation by2018 to augment the existing source of powergeneration in the country.”

Nuclear power holds promise for 10 African countries in pursuit of building their own nuclear plants. Windand solar solutions aren't reliable enough, planners say, nor do they offer adequate electricity. Koebergnuclear power station near Cape Town.

The government of Ghanahas resolved to diversify thepower sector away from a

complete reliance onhydroelectric power towards

thermal fuel sources.

Gh

an

a

26

The country’s long-term energy needs require proper planning for the future. EmmanuelYartey looks at the possibility of nuclear power.

Nuclear power positive for

Ghana’s electricity needs


SGS as the world’s leading inspection, verification, testing and Certification Company, we provide competitive advantage, drive sustainability and deliver trust. Recognised as the global benchmark for quality and integrity, we employ over 64,000 people and operate a network of more than 1,250 offices and laboratories around the world. We are continually pushing ourselves to deliver innovative services and solutions that help our customers move their businesses forward.

SGS have their operations established in Nigeria since 1957, we have a local content workforce of over 90% indigenous Nigerians and we are fully committed to “The Nigerian Content Policy” as promulgated by The Federal Government of Nigeria. SGS Inspection Services Nigeria Limited board of directors consists of 50% Nigerian nationals and the Company has 50% Nigerian shareholding.


WHEN YOUR MISSION IS MAKING MEDICINES THAT SAVE LIVES, FAILURE’S NOT AN OPTION. ESPECIALLY POWER FAILURE.

GENERATORS 8-4000 KVA | TRANSFER SWITCHES | SWITCHGEAR | ACCESSORIES

MEDIUM VOLTAGE | STANDARD AND REMOTE RADIATORS | PACKAGING | CONTROLS

Call us at +33 149178300, e-mail [email protected], or check out KohlerPower.com

KOHLER®, ON™ and the color green are trademarks of Kohler Co.

Tests are performed, results compiled and production lines roll.

Every day, a leading U.S. pharmaceuticals innovator makes the

products that treat serious and life-threatening medical conditions.

Loss of power for even a short time could cost a production

run … and hope for those who need help now. For the health

of this company and its customers, KOHLER backup power

solutions are the best medicine. With KOHLER, the power stays

on because the people behind the products are on. Always.

You can’t make breakthroughs in medicine if you’ve got

breakdowns in power. Which is why so many people trust

KOHLER to come through. Without fail.

Tony Arroyo of Kohler prescribed two 2,000 kW

KOHLER® generators and KOHLER switchgear

to protect the productivity of a major

pharmaceuticals maker.


The IAEA, the world’s regulatory bodyresponsible for nuclear and atomic energyactivities, promotes the safe, secure and peacefuluse of nuclear technologies. With regard to theimplementation of the roadmap that will lead toGhana producing nuclear electricity by 2018, thereis little left for the experts to do for now; whatremains is a sustained political will to carry theproject through.

Now that Ghana is producing oil and gas incommercial quantities, the economy will definitelybe expanding. Coupled with a growing population,it is automatic that the country will be facing majorchallenges in providing the required energy in areliable and sustainable manner.

Peak power demandPublic Agenda again reports, “The peak demand forpower for the domestic market is projected to3,000MW and 4,000MW in 2015 and 2020respectively. The existing installed capacity forelectricity generation is 2,044MW made up of 58per cent hydro, 37 per cent thermal plants and fiveper cent diesel generators.

“The capacity would have to double by 2020 inorder to meet the peak power demand, andavailable renewable energy resources other thanhydro can at best provide 10 per cent of thenational demand at competitive prices by 2020.

The total available hydro power potential, includingthe under developed sites, could only continue upto 44 per cent of total demand by 2020.

“Some 30 countries around the world, includingSouth Africa, Brazil and Mexico, generate electricitythrough 440 nuclear plants. Nigeria has alsoidentified four locations for its future nuclearelectricity plant.”

It could be argued, therefore, that it is timeGhana Government considered the nuclear poweridea and began to implement what is in the

roadmap before it is too late, and a situation arisesthat costs the nation a lot of money to execute.

Preservation and management of nuclearknowledge in Ghana has emerged as a growingchallenge to the sustainability of nuclearprogrammes and activities in the country, and forthis reason, the Ghana Atomic Energy Commissionis continuing to upgrade and expand nuclearfacilities, It is also conscious of the fact that theaccumulation of knowledge based on technicalinformation in the form of scientific analysis ofengineering systems also includes tacit knowledgeembodied in people.

Ghana will be better placed to introducenuclear power to solve our electricity generationand supply problems if human resourcedevelopment and strengthening of basicinfrastructure in nuclear science and technology aresuccessful. ■

Gh

an

aIt is time the Ghana Governmentconsidered the nuclear power idea.

The country’s long-termenergy needs requireplanning properly for

the future.


For further enquiries please contact….

B. G. Technical Limited, Plot 149 Trans Amadi Industrial Layout, Port HarcourtRivers State, NigeriaTel: +234 84 463-592, Fax: 084 238-647Cell: +234 803-548-0012, +234 809-990-9024, +234 803-548-0025 [email protected]

B.G. Technical Limited(Pipeline and Well services Company)

Pipeline ServicesPipeline and Facility Commissioning Facility Protection and Data servicesManufacture of Pigging productsIntelligent piggingPipeline PiggingPumping ServicesDesign, Modification and Fabrication

Well ServicesElectric Wire line and TestingPipe Recovery Stimulation and Pumping Sand Control Frac ServicesCompletion ServicesPerforation ServicesWork Over and Rig less Well Intervention

S06 ORA 2 2012 Angola_Layout 1 12/04/2012 14:41


DDELAYS HAVE STRUCK Angola’s newliquefied natural gas (LNG) terminal inSoyo – the single largest investmentever made in the country - at the

country’s northernmost coastline. The export-oriented plant had been scheduled to come onstream in March this year but has now been putback to mid-May. State oil company Sonangol hasblamed the delay on the need for more testing ofthe plant. At nearly US$10bn, the total constructioncosts of the project are almost double the annualtotal GDP of Malawi.

One of the primary reasons for developing theAngola LNG project was to provide a clean andbeneficial alternative to the practice of venting orflaring. Gas flares, visible from space, causesignificant damage to the environment –pumping various toxins into the atmosphere,causing corrosive acid rain, and polluting thesurrounding soil.

Gas flaring in Nigeria has wreaked havoc on thecommunities within the Niger Delta regioncontributing to the gradual destruction of theagricultural viability of the region and resulting innumerous associated health concerns includingrespiratory infections, and skin and eye conditionscaused by the fumes.

The massive expansion of the Angolan oilindustry witnessed since the end of civil war in2002 coincided with a resurgent internationalinterest in natural gas. Throughout the 1980s and90s, with cheap oil flooding international markets,the development of the oil-associated natural gasindustry was considered economically unviable.

The steady rise in oil prices since 2003, due tothe huge increases in demand caused by the rapidgrowth of countries such as China and India,combined with worldwide production stagnation,has resulted in renewed popularity of the naturalgas industry.

Natural gas demand to outrstrip that for oilWorldwide consumption of natural gas is estimatedto increase from 100 trillion cubic feet (tcf) in 2004to 163 tcf in 2030. The World Bank now estimatesthat global demand for natural gas will outstripdemand for oil by as soon as 2025.

Yet the recent volatility of the internationalenergy market looks set to continue. Instability inthe Middle East and North Africa, combined withthe aggressive tactics of the Russian gas monopoly,Gazprom, have left many states eyeing up thepotential of Sub-Saharan Africa as an importantenergy source.

The United States has taken a particularlyspecial interest in Angola as a vital source ofenergy. The Angola LNG project demonstrates theincreasingly close commercial ties between thetwo countries. Angola LNG originated from ajoint-feasibility study conducted by Sonangol andChevron (the second largest oil company in theUnited States after ExxonMobil in 1999). Chevronnow holds the largest stake in Angola LNG at36.4 per cent, followed by Sonangol at 22.8 percent (British Petroleum, France’s Total and Italy’sENI each hold 13.6 per cent). North Americanenergy companies have largely missed out onSub-Saharan Africa’s other natural gas giant,Nigeria LNG, potentially offering someexplanation to why Chevron has been at theforefront of the industry in Angola.

Construction began in November 2008 with theUS engineering company, Bechtel Corporation,alongside US based multinational energycorporation, ConocoPhillips overseeing the project.

Having just completed a similar LNG facility inEquatorial Guinea, Bechtel and ConocoPhillips wereperfectly suited to take responsibility of the plant.ConocoPhillips, with over four decades of industryexperience, is considered a global leader in LNGinnovation, while Bechtel have engineerednumerous other mega-structures including theHoover Dam in 1930.

It was originally believed that once completedand operational, the primary customer of AngolaLNG would be the Gulf LNG Terminal in Mississippiin the United States from where it will supplynatural gas to consumers and industrial usersthroughout the southern states of America.However, Angola LNG is looking to sell its LNG tonon-US buyers after prices there plummeted due toan increase in domestic gas production. ‘Our projectwas based, four years ago, on US sales, but sincethe LNG market is not very good, we are looking forother opportunities,’ Antonio Orfao, chairman ofAngola LNG, told an industry conference inAustralia earlier this year.

Angola LNG's plans to turn its focus awayfrom US buyers occurs in the wake of a rapidincrease in shale gas production brought about bynew drilling and extraction technologies whichwill bring US gas production to a record high thisyear. US LNG imports have halved since 2007with some import terminals re-exporting cargoesas the country's demand is increasingly met bydomestic gas production.

Angola LNG is a liquefaction project that is set to commence production in April of this year.

One of the primary reasonsfor developing the Angola

LNG project was to provide aclean and beneficial

alternative to the practice ofventing or flaring.

An

go

la

30

Angola LNG operates one of the world’s most modern LNG processing facilities in Soyo.The project is expected to facilitate continued offshore oil development while reducinggas flaring in Angola. First LNG is planned for 1st quarter 2012. Jon Offei-Ansah reports.

A clean and beneficial alternative

to flaring



New marketing entity being createdTo market its gas, Angola LNG is creating new LNG marketing entity that willlook to sell its gas to the most competitive markets, Orfao said, but would notspecify which markets Angola LNG was targeting. ‘We look for the best markets,it can be any place - our team is looking at different options,’ Orfao said, addingthat although there were no signed sale contracts yet, he expected saleagreements to be made in the next several months. Rapidly increasing AsianLNG demand and higher prices for the fuel in the region have pulled supplies ofthe gas from the Atlantic region in the last few months.

Despite being a hub for the Angolan oil industry for some time now,construction of the LNG plant has irreversibly changed Soyo. Once chosen tosite the LNG plant, large-scale dredging began under the auspices of a jointventure between the Dutch construction company Boskalis International, andBelgian company Jan de Nul. 125 hectares of land on Kwanda Island was raisedwhile a further 65 hectares of new land was created in the Congo River estuary.

A workforce from all four corners of the globe flies in and out of the smallprovincial airport each day. The national policy of Angolanisation ensures thatthe project is contributing towards a growing highly-trained Angolan workforceinvolved in all disciplines – from senior management to design engineering toaccountancy and human resources. Foreign companies are dependent onAngolan workers to manage operations in the country. 90 per cent of Chevron’sprofessional, technical and managerial staff are Angolan.

The rising influx of a large international workforce has resulted in a rapidgrowth of service industries including hotels and restaurants. Once a collectionof numerous small villages, Soyo is now a bustling town. Rapid urbanisation isnot without consequences. Yet thus far, local inhabitants appear to haveweathered the changes well.

Prior to the commencement of construction a comprehensive Environment,Social and Health Impact Assessment was conducted in the region. Educationoutreach programmes were conducted to raise awareness in the region of theeffects that this mega-structure is likely to have. An information centre in theSoyo town is open to all people living in the region and provides advice on thelocal impact of the LNG plant and the development projects it supports.

The Angola LNG project symbolises the rapid development of Angolatoday. Less than twenty years ago Soyo was the scene of fierce fighting whenUNITA rebels launched an all-out offensive and managed to capture many ofthe oil facilities. Today it hosts one of the largest construction projects onthe continent.

While oil production in Angola expands so will the volumes of the oil-associated natural gas. This gas can either be used productively or it can bevented or flared. Angola LNG indicates the Angolan government’s andinternational oil companies’ determination to make use of this hithertoconsidered by-product of oil and turn it into a major source of localemployment, domestic energy consumption and export revenue. ■

LNG carrier British Trader will be used to transport LNG from the Angola LNG Project

An

go

la


NNOW THAT THE country vies withNigeria for the title of Africa’s greatestoil producer, Angola is looking topush on, to enhance local industrial

development and grow a more sustainabledomestic energy sector.

And this charge is being led by Sonangol, thenation’s energy champion, as it seeks to make adent in chronic poverty levels.

An estimated two-thirds of Angola's 16.5mnpeople still live on less than US$2 per day, despitethe nation’s huge oil wealth.

At the same time, it also means raisingAngola’s profile beyond its oil-rich shores.

Like Nigeria, the country is now a member ofthe Organisation of Petroleum Exporting Countries(OPEC), a membership that conveys status amongan elite group.

Sonangol is also blazing a trail with explorationinterests in Iraq, Venezuela and Brazil.

The group operates across the oil and gas chain,though it is predominantly known for itsinvolvement in Angola’s own upstream sector,partnering international firms in their explorationand production ventures.

It also has subsidiaries engaged in storage plusthe marketing of crude oil and refined petroleumproducts, with offices in London, Houston, Beijing,Singapore and Rio de Janeiro.

Profit boostWith oil still accounting for over 90 per cent ofAngola’s export income, but employing less thanone per cent of its people, Sonangol is in the frontline of national development efforts.

But with profits soaring, it is well placed tobuild on all these strategic initiatives.

The company posted a 32 per cent rise in netprofit in 2011, based on strong revenues accruedfrom higher oil prices, which offset slightly weakerproduction numbers.

The company's new chief executive, Franciscode Lemos José Maria - appointed when hispredecessor Manuel Vicente moved to a key job ingovernment - told a press briefing in March that netprofit tallied $3.32bn, up from $2.52bn in 2010.

Sales were up 14 per cent, at $33.78bn in 2011, headded, due to higher oil prices in international markets.

Angola’s crude oil production fell, however,from 1.76mn barrels per day (bpd) in 2010 to1.66mn bpd last year, due to technical problems atsome fields and maintenance at others.

The government expects this to rebound to 1.8mnbpd during 2012 as additional production comesonstream and maintenance work is completed.

José Maria, cited by state news agency, Angop,said Sonangol’s own direct production fell 6.9 percent, while production by international firmsdropped 18.2 per cent.

Downstream diversification One of Angola’s primary diversification strategies isthe move to monetise gas associated from thenation’s huge offshore oil production.

Sonangol is playing a central role in thenation’s largest current investment project, toproduce and sell liquefied natural gas (LNG), whichwill help diversify income for the developing WestAfrican state.

After many years in the making, this project isalmost complete with first exports of LNG anticipatedaround May, according to Sonangol officials.

The 5.2mn tonnes per annum project is beingled by Sonangol, which has a 22.8 per cent interestand Chevron, which holds 36.4 per cent.

Other partners include Italy's Eni, Total of Franceand BP, which each hold a stake of 13.6 per cent.

Elsewhere, plans to expand domestic refiningcapacity are still being held up, however, with thecountry struggling to find suitable foreign partnersand financing.

Sonangol is lining up a $8bn new refiningproject in the port city of Lobito in southern Angolaalthough this initiative has been beset by delays.

The state company had originally hoped to havethe facility operational by 2011.

Officials are in talks with some of the AngolaLNG partners, including Eni, Total and BP, aboutworking jointly on the project, although there is stillno realistic timeframe for start-up.

Sonangol’s existing Luanda refinery last yearposted a 26 per cent rise in output to 41,600 bpd,although this is still less than current market demand.

The company’s imports of refined products rose15 per cent to 3.27 million tonnes during 2011.

International aspirationsBut it is clear that Sonangol’s ambitions are fargreater than building up Angola’s oil and gasindustry back home.

Like other national oil champions, it is keen toventure further afield, with a smattering ofupstream projects on its books already, andmarketing activities globally.

More is to come with Sonangol looking to buy adirect stake in Portugal’s refiner and explorer, GalpEnergia, according to reports.

Sonangol is negotiating to buy half of Italiangroup Eni's 33.3 per cent stake in the Portugueseenergy group, which also holds interests in four oilblocks offshore Angola, including a slice of theprolific Chevron-operated block 14.

Sonangol is in the front lineof national development

efforts.

An

go

la

32

Angola’s state-owned oil company Sonangol is making moves to bolster its reputation,both at home and overseas.

Angola’s Sonangol coming of age, but

old challenges remain


Sonangol’s new chief executive, Francisco de LemosJosé Maria.


Sonangol already holds a 15 per cent indirectstake in Galp through its 45 per cent holding inPortugal's Amorim Energia, which controls a thirdof Galp.

Debt-stricken Portugal is believed to bereceptive to any deal, courting investment from itsoil-rich former colony in a bid to revive its flaggingeconomy.

The Portuguese government also plans to sellits 7 per cent stake in Galp this year under aprivatisation programme dictated by the terms ofan international bailout package.

The acquisition would also land Sonangol furtherupstream exposure in Brazil, where Galp partnersPetrobras in 20 projects across seven basins.

Challenges aheadDespite a small drop in oil output last year, Sonangolcontinues to lead from the front in Angola.

But some of the old challenges for the country -and for the company itself - still remain.

This includes raising transparency andaccountability levels, a common criticism, amonginternational watchdogs.

Transparency International ranks Angola asamong the most corrupt countries in the world,with the government long accused of mismanagingoil revenues and avoiding genuine public scrutiny.

Critics have also urged Angola to reduce thehuge influence of Sonangol, calling for anindependent agency to ensure oil income filtersthrough to the poor.

In December, New York-based watchdog HumanRights Watch urged Luanda to account for US$32billion in missing government funds, thought to belinked to Sonangol, which were spent or transferredfrom 2007 through 2010, citing an IMF report.

The government denied the funds are missingand said the discrepancy resulted from insufficientrecord-keeping.

These are allegations that have long plaguedAngola, and ultimately Sonangol itself.

Despite progress on the ground, including thelong-awaited start-up of Angola LNG, and a growingroster of international projects, these are issues thatwill need to be addressed, especially if Sonangolhopes to grow its world stature further. ■


An

go

la

34

Some of the old challengesfor the country - and for thecompany itself - still remain.

Sonangol reported $33bn earnings,$3.3bn profits for 2011.


Turn The

Into Your

EXTERRANADVANTAGE

COMPETITIVEEDGE

Exterran Nigeria Limited offers our customers a world of energy solutions through a comprehensive portfolio of products and services. We offer the Total Solution, a single point of contact to design, fabricate, install commission, operate and maintain your oil and gas facilities with worldwide expertise in: Natural Gas Compression System and ServicesNatural Gas Processing and TreatmentLPG and NGLFuel Gas Conditioning for Power PlantGas Flare out Solution Our pre-engineered and modular plants, combined with our local presence and highly experienced personnel result in faster project delivery times and better Return on Investment to our customers.

Oil and Gas Production FacilitiesGas-fuelled Power Generation SystemsOperation and Maintenance servicesIntegrated Oil and Gas SolutionsAftermarket OEM spare parts and Manpower Services

S07 ORA 2 2012 Geology_Layout 1 12/04/2012 14:44

SOCO INTERNATIONALHAS been givenpermission to carry outaerial surveys of aCongolese oil blockwhere exploration wassuspended last yeardue to concerns overenvironmental damage. Soco has rights to BlockV but exploration hasbeen halted as theblock sits partially inDemocratic Republic ofCongo's VirungaNational Park, which isAfrica's oldest, andhome to some of theworld's last remainingmountain gorillas. "We're delighted tohave clearance toproceed with the aerial survey over Block V," said Soco's deputy CEORoger Cagle. Cagle added that work could begin in the second quarter of the year. Congo's government last year suspended exploration after pressure fromconservation groups and the World Bank. The company says it wouldhave a beneficial impact on the area.

OPHIR ENERGY SAYS the focus of exploration on its Ntsina and Mbeliconcessions off Gabon has turned to the presalt play. Until now, poorseismic imaging has limited exploration of the presalt play in theNorth Gabon basin, but recent advances now allow effective mappingof presalt traps. Ophir says seismic and gravity gradiometry surveys have revealed apotentially significant presalt play system in its blocks. The main focus hasbeen over the Padouck Deep prospect which could hold around 1.3bn bbl. Across the conjugate margin from Gabon is Petrobras’ Carmopolis field, within-place reserves estimated at 1.7bn barrels. Petrobras has farmed into 50 per cent of both Mtsina and Mbeli, and isfunding the cost of a new 2,200-sq km seismic survey acquired early thisyear by PGS, which is intended to image the presalt system. The data willundergo pre-stack depth migration processing. The pre-salt play has more limited extent southward into Ophir’sManga and Gnondo concessions, where the focus is on the postsaltstratigraphic section. Discoveries off Brazil such as Petrobras’ Barra in 2010-11 suggest this playcould have analogues in the North Gabon basin. Ophir has acquired 3D seismic already this year over Manga to assess thepotential west of the Loiret Dome, where it has identified stratigraphiconlap plays and leads, of which Afo could be significant. The play systemextends into the southern part of the Ntsina block and therefore the 3Dsurvey has continued into this concession. Processed data should available in early 2013. Once this has beeninterpreted, Ophir plans to seek a farm-in partner for next-phase work whichcould lead to drilling during the first half of 2013.

Ophir sees presalt analogies to Braziloffshore Gabonine

Geo

log

y &

Geo

ph

ysi

cs

Soco to survey Congo oil block


VANCOUVER-BASEDVANOIL Energy hasbegun the first phaseof a 400-km 2Dmarine seismic shootin the East KivuGraben block of north-western Rwanda. The high-resolutionlow-penetrationsurvey forms part ofVanoil's 2012 workprogramme that willbe included inupcoming ProductionSharing Contract negotiations with the Ministry of NaturalResources of Rwanda, the company said in a statement. A team from Syracuse University in the US is running the shoot aspart of their long-running scientific investigations of Africa's GreatRift Valley, Vanoil said. The current survey extends across an area of 1631 sq km on Vanoil'sexclusive license in the East Kivu Graben block. Vanoil said the block’s prospectivity is “further enhanced by thepresence of long-chain hydrocarbons in the lake bottom sediments,indicative of possible existence of an active petroleum system”.

SERICA ENERGY PLC has signed a contract with Polarcus Seismic utilising the10-streamer vessel Polarcus Nadia for an extensive 3D seismic acquisitionsurvey in Serica's Luderitz Basin Blocks 2512A, 2513A, 2513B and 2612A (part),located offshore Namibia.The survey, planned to commence in early April and cover an area of up to4,150 sq km, will considerably exceed Serica's obligations for seismicacquisition under the license terms. It is aimed to achieve three objectives:6 to delineate one of the three large four-way dip closed structures already

identified on the blocks,6 to identify the potential for stratigraphic pinch-out prospects which are likely

to have formed in conjunction with large channel sand features present inthe blocks, and

6 to seek to demonstrate the presence of hydrocarbon indicators.The full cost of the survey is to be met by BP who will earn a 30 per centinterest in the License under a farm-out agreement with Serica. Followingcompletion of the seismic survey the interests in the License will be held bySerica Energy Namibia BV, Exploration (Luderitz Basin) Ltd (a wholly ownedsubsidiary of BP), National Petroleum Corporation of Namibia (Pty) Ltd andIndigenous Energy (Pty) Ltd.Serica will continue to be the operator of the License for the seismic survey.Tony Craven Walker, Serica's Chairman and Interim Chief Executive said, "This isa very significant seismic contract and we are pleased that we have been ableto arrange it so soon after being awarded the blocks in December. The large sizeof the survey and the fact that we have been able to make such an early startwill assist us and our partners in bringing forward the decisions required prior tocommencing a drilling programme. The prospective nature of the under-explored deep water basins offshore Namibia offers great opportunity and Sericais pleased to be a playing significant part of this expanding effort."

Geo

log

y &

Geo

ph

ysics

The Basins of Kivu Graben.

Vanoil kicks off Rwanda shoot in Serica’s seismic survey contract with Polarcus



THE JACKUP TRANSOCEAN GSF Monitor has started drilling the Gazelle-P3production well for Rialto Energy on the CI-202 block off Côte d’Ivoire. The locationis on the northern flank of the Gazelle structure, 43 km southwest of Abidjan. The well is due to reach a TD of 3,400 m MDRT and should require 60-70 daysto drill and test. This is the first of a three-well campaign on the block whichshould take six months to complete, including testing. Gazelle-P3, which is being drilled from the Gazelle subsea template, is designedas a deviated hole targeting oil in already tested sands over the UpperCenomanian reservoirs. It will also be deepened to test a potential gas prospect,

Condor, and a combination structural/stratigraphic trap in the LowerCenomanian not previously drilled. Assuming a success, the second well will appraise Condor, while the third wellin the programme will target the Chouette exploration prospect, 13 km from theGazelle template. Rialto has a gas memorandum of understanding with the government of Côted’Ivoire, and appraisal drilling success will allow development of Gazelle tomove forward, leading to a production start by end-2013. Initial production rates should be 8,000 bpd of oil and 100 mmcfd of gas.

38

Gas

Rialto probes for gas off Côte d’Ivoire

Eunisell flow assurance solution is positioned to provide a world class opera-tion that meets clients’ equipments and personnel requirements. We provide quality equipments, competent, experienced and dedicated personnel.

Our operations are strategically located for Well testing, Early Production, Severe Service Sand Management, Well Sampling and various flow assurance solutions. “We force reservoirs to yield their potential” throughout our operations, with key points of coordination located in our service centres.

• Prove• Measure or Monitor Reservoir• Improve Asset Management• Generate Early Cash Flow or Return on Investment

Eunisell Solutions

Eunisell’s services assist clients to:

Eunisell Limited196A Jide Oki Street, Victoria Island, Lagos Nigeria

Tel: +234 1 4612476, 4612477, Facsimile: +234 1 4612475, E-mail: [email protected] Website: www.eunisellsolutions.com

JOINT VENTURE PARTNERS Aminex and Solo Oil havemade a gas discovery at the Ntorya-1 exploration wellin the Ruvuma Basin, onshore Tanzania.Further to the companies' update earlier this month,which reported strong gas shows in a good qualityCretaceous reservoir sand at a depth of 2,660 m,the open hole has now been logged from totaldepth of 2,750 m across the zone of interest.Aminex chief executive Stuard Detmer said thatfollowing recent high-profile exploration successesin the offshore Ruvuma Basin of Tanzania andMozambique, the Ntorya-1 well has established, forthe first time, the presence of reservoiredhydrocarbons onshore. "Given current plans to develop major gas

infrastructure on the coast just 25km away, this hasthe potential for commercial development and opensnew possibilities in the underexplored onshoreregions of our Ruvuma block PSA," said Detmer.Evaluation of electric logs from the well revealed agross sand interval of 25m between 2,660m and2,685m, with a three metre net gas bearing payzone in sandstones.Aminex said the sandstones show 20 per centporosity at the top and a 16.5m thick lowersandstone interval with further possible gas pay. The company noted the presence of reservoiredhydrocarbons in Cretaceous sands in Ntorya-1opening up the potential for additional plays inthick Mesozoic sandstones that were encountered

by the company and its partners in the Likonde-1well, 14km north of the Ntorya-1 well.Aminex plans to run a 7-inch liner to total depthand the well by a further 250m to investigate aprominent seismic event at 3,000m.

Aminex, Solo Oil discover gas pay at Tanzania Ruvuma well

S08 ORA 2 2012 Gas_Layout 1 12/04/2012 14:47


ANADARKO PETROLEUM HAS announcedthat with the success of its Barquentine-4appraisal well, the partnership hascompleted the drilling portion of itsplanned appraisal programme in thediscovery area offshore Mozambique. TheBarquentine-4 well, located in OffshoreArea 1 of the Rovuma Basin, encounteredapproximately 160 m of natural gas pay,and became the Anadarko partnership'sninth successful well in the complex. Additionally, the company announced thatsixth- and seventh-grade students at EscolaUnidade and Escola Primaria 16 de Junho inPalma Village, Mozambique recentlyselected "Prosperidade" (Prosperity) as thename for the discovery area in the OffshoreArea 1 block. Prosperidade includes theWindjammer, Barquentine, Lagosta andCamarao discoveries, as well as the fivesubsequent appraisal wells in the block. Aspreviously announced, Prosperidade isestimated to hold recoverable resources of17 to 30-plus tcf of natural gas. "Our appraisal drilling programme in theProsperidade complex offshoreMozambique delivered outstanding resultsthat provide significant confidence in the

vast extent of this accumulation and will bekey in achieving third-party reservecertification, as we advance thepartnership's world-class LNG project

toward FID (final investment decision),"Anadarko Sr. Vice President, WorldwideExploration, Bob Daniels said. "Theselection of Prosperidade as the field nameis certainly appropriate, as it symbolisesthe partnership's expectations for this areaand the opportunities it represents for thepeople of Mozambique. Our next step is tomobilise the drillship to the northernsection of our block to begin testingadditional high-potential explorationprospects that may expand the resourceeven further and provide tiebackopportunities for future LNG hub facilities." The Barquentine-4 well is the northernmostwell in the Prosperidade complex,approximately 30 km north of the Lagostadiscovery well located on the southern end.It is located in water depths of approximately1,650m. Once operations are complete atBarquentine-4, the drillship will be moved tothe northern part of the Offshore Area 1block to top-set the Atum prospect, and thenbegin drilling the Golfinho prospect. Thepartnership's second drillship operating inthe area is continuing to carry out anextensive testing programme within theProsperidade complex.

39

Gas

493 - Oil & Gas Ad Adapt.ai 1 11/30/11 4:46 PM

Anadarko's position in Offshore Area 1 of theRovuma Basin, including the Prosperidade complex

Anadarko successfully completes planned appraisal drilling programme

ENI HAS ANNOUNCED a new giant natural gas discovery in Area 4, offshore Mozambique, at theMamba North East 1 exploration prospect.The results of this well, drilled in the Eastern part of Area 4, are of special importance since they increasethe resource base of Area 4 by at least 10 tcf of which 8 tcf of these contained in reservoirs exclusivelylocated in Area 4. This new discovery further improves the potential of the Mamba complex in Area 4offshore Mozambique now estimated to have at least 40 tcf of gas in place.Mamba North East 1 is located 50 km off the Capo Delgado coast in a water depth of 1,848 m andreaches a total depth of 4,560 m. The well was drilled approximately 15 km north east of theMamba South 1 giant discovery and 12 km south west of the Mamba North 1 giant discovery.The discovery well encountered a total of 240 m of gas pay in multiple high-quality Oligocene andEocene sands and proved reservoir continuity and pressure communication with Mamba South 1 andMamba North 1 wells.

New success for Eni in Mozambique

S08 ORA 2 2012 Gas_Layout 1 12/04/2012 14:47


FFROM IMPROVEMENTS IN upstream technology, through to downstream processing and transportation, the LNGindustry has seen huge and

unprecedented change.It has enabled pioneers such as gas giant

Qatar to massively ramp up LNG supply tocustomers all over the world, as economies ofscale have brought costs down. And it has comeat just the right time with gas demand on therise and oil prices running high.

Now, Africa could be at the forefront of theLNG technology evolution as operators seek tomonetise new gas deposits away fromestablished infrastructure.

This includes exploiting huge new deepwatergas finds off Tanzania and Mozambique’s prolificRovuma basin.

Anadarko Petroleum is currentlycontemplating a large LNG plant in Mozambique,a project that could cost US$25 bn, more thantwice the country’s gross domestic product.

BG will also soon start to pondermonetisation options for its offshore Tanzanianfinds.

With more projects in the planning in Nigeriaand Angola as well, Africa is likely to be a testground for some of the very latest LNGtechnology.

FLNGOne option that could be tested in Africa beforelong is the floating LNG (FLNG) concept, whichShell is pioneering far off in Australia.

The company said last year that it iscommitted to building the first-ever offshorefacility to cool processed natural gas to liquid atsea.

The 600,000 ton FLNG vessel would measureabout 1,600 feet, making it the largest floatingoffshore facility in the world.

It would first be deployed to the Australianwaters of Shell's Prelude natural gas field.

If the concept works, then the idea couldeasily be rolled out to other offshore areas.

Namibia has long been linked to the FLNGconcept as a means to exploit the stranded Kudugas deposit, which has sat idle for decades.

Malcolm Brinded, Shell's executive director ofupstream international, has called FLNG a “gamechanger” for the LNG industry.

The company expects the demand for naturalgas to double by 2030 and sees demand for LNGdoubling within the next 10 years.

Market potentialAlthough the Prelude vessel would be the firstfloating production facility, a number ofcountries have already deployed offshore LNGreceiving terminals.

China - one of the world’s high growthmarkets for LNG - is currently developing its firstfloating receiving and storage facility near thenorthern city of Tianjin.

The US is also utilising floating LNG importterminals offshore because of limited landavailability and strict onshore environmentalregulations.

These floating import docks could be usefulfor bringing in short-term gas supplies forcountries in Africa facing shortages.

South Africa has long contemplateddeveloping a large, land-based LNG terminal tobring in additional volumes of gas.

Mozambique LNGDespite the fascination with FLNG, inMozambique, it is likely to be a more

conventional land-based terminal that operatorAnadarko opts for, despite the deepwater andoffshore challenges involved.

The US-based company says the estimatedrecoverable resources of the area, between 15-30 trillion cubic feet (tcf), are ideally suited for alarge-scale LNG development, which will likelyrepresent the largest foreign investment evermade in Mozambique over the life of the project.Anadarko and its partners are currentlydesigning the onshore facility to consist of atleast two trains with the flexibility to expand tosix trains.

The company also plans to leverage itsinternational experience, gained from extensiveworldwide deepwater projects includingIndependence Hub, to overcome some of thelogistics challenges entailed.

This includes the design and construction ofa flexible offshore production system to collectgas from the wells approximately 56 km offshoreand tied back to the liquefaction plant onshore.

A final investment decision is anticipated bythe end of next year, with first production by2018.

New frontierOther partners on the Mozambique projectinclude local state-owned oil company ENH,Bharat Petroleum, Videocon, Mitsui & Co andCove Energy, currently the subject of a takeoverbid by Shell and others.

Conceptual Mozambique LNG Project.

With more projects in theplanning, Africa is likely tobe a test ground for some

of the very latest LNGtechnology.

Gas

40

The LNG world has been transformed in the past decade or so by improvements intechnology, right across the gas supply chain.

Technology evolution drives Africa LNG

market growth

S08 ORA 2 2012 Gas_Layout 1 12/04/2012 14:47

S08 ORA 2 2012 Gas_Layout 1 12/04/2012 14:47

If Shell gains access to the project, via Cove, itwould also bring to bear its own weighty LNGcredentials.

According to leading energy lawyers, King &Spalding, eastern Africa has become the world’smost promising LNG frontier in 2012.

The law firm says the area is well positioned toserve the high growth Asian market and, like gasleader Qatar, European consumers as well.

“This region could also become a majorcompetitor of Australia and other exporting countries,as both Mozambique and Tanzania look to join theranks of the world’s LNG exporting nations,” the lawfirm states in a March report, ‘The Top 10 IssuesFacing the LNG Industry in 2012’.

Angola LNG launchThe next project up to make it, however, is likely tobe Angola’s long-awaited and much-delayed LNGventure (see pages 30-31 for full information).

There are hopes that the scheme, which groupsmost of the country’s top upstream operators, couldbe ready to launch this year, despite cost over-runsand seemingly endless and unexplained delays.

The Angola LNG plant will have a capacity of5.2mn tons per year.

Stake holders include: Sonangol (22.8 per cent),Chevron (36.4 per cent), Total (13.6 per cent), BP(13.6 per cent), and ENI (13.6 per cent).

The project, which was originally designed tosupply the US market principally, has also had to re-assess its marketing options, given the shale gasboom in North America.

Project officials have conceded that cargoes willhave to be redirected to Asia.

Like the Mozambique concept, the project

gathers gas from deepwater offshore to a land-basedterminal at Soyo in Angola.

The LNG is made from previously strandedmethane that can now be brought ashore.

With scores of gas flares encircling the oilderricks offshore, the area is rapidly becoming one ofthe world’s most visible and active fields for gasdevelopment.

Within months, the flares will begin to flicker, asmore and more of their methane fuel, now simplyburned off, is put to better use.

US-based engineer Bechtel built the actual LNGliquefaction train, plus storage tanks, and thesupporting facilities under a four-year lump-sumcontract.

When the project finally launches this year, as ishoped, it will be another big leap for Africa and itsgrowing high technology LNG sector. ■


Gas

42

The LNG carrier British Trader will be used to transport LNG from the Angola LNG Project,which will establish Angola as a major competitive source of LNG.

With scores of gas flaresencircling the oil derricks

offshore, the area is rapidlybecoming one of the world’smost visible and active fields

for gas development.

Chemical Technologies and Services for the Oil & Gas IndustryClariant Oil Services is a leading global providerof production and pipeline chemicals. We offerlocal services with global capabilities, custom andinnovative chemical solutions, environmentally-friendly chemical alternatives and an unsurpassedsafety record. Contact us today!

Clariant Oil Services: Howe Moss Place, Kirkhill Industrial Estate, Dyce, Aberdeen AB21 0GS. Tel: +44 1224 797400. Web: www.oil.clariant.com.Email: [email protected].

Make sure you visit our new website with updated news coverage in Africa

You can also view our digital edition of this issue on www.oilreviewafrica.com


S08 ORA 2 2012 Gas_Layout 1 12/04/2012 14:47

S09 ORA 2 2012 Gas 02_Layout 1 12/04/2012 14:57


MMANY OF SOUTH Africa’s energyexperts are calling for the shale-gasresources that are believed to existin the semi-arid Karoo region,

between Johannesburg and Cape Town, to beexplored and exploited. They make a compelling casefor the government to lift the year-long moratorium itplaced on shale gas exploration drilling.

South Africa is a net importer of energy, andstill needs 56GW of new electricity generationcapacity by 2030 as energy demand is forecast togrow even faster than the global average. It is alsowidely accepted that the continued economicgrowth of the country is absolutely dependent onstable and affordable energy supplies.

Currently, 70 per cent of South Africa’s primaryenergy is derived from coal and 90 per cent ofSouth Africa’s electricity is coal generated. The netresult is high carbon emissions even if only 80 percent of South Africans enjoy access to gridelectricity. The government’s objective is that, by2030, at least 95 per cent of South Africans willhave access to electricity.

Compared to the ubiquitous coal-fired powerstations that South Africa is so heavily dependent on,gas-fired power stations are about 40 per cent moreenergy efficient and emit 50-70 per cent less CO2.Furthermore, carbon capture and storage (CCS)retrofit costs, per MWh of power produced, aresimilar – and, it is argued, gas is a bettercomplement to power derived from renewables suchas wind power. So both conventional andunconventional recoverable gas reserves are part of anew energy mix that South Africa is now considering.

Replacing coal with gas for electricitygeneration is the cheapest and fastest way to meetSouth Africa’s CO2 reduction targets. The CombinedCycle Gas Turbine (CCGT) power station is both lessexpensive to build than a coal station, and costcompetitive on a total cost basis (i.e. capital, fueland operating costs).

That is why many experts are now calling forthe Karoo’s shale-gas resources to be explored andexploited. At today’s gas price, the shale gassupporters say, between US$12.8bn (R80bn) and$32bn (R200bn) could be added to the country’sannual GDP – assuming just 20 trillion cubic feet(tcf) were extracted over 25 years, or 50 tcf over thesame period, respectively. These figures representfour per cent and 10 per cent of the Karoo’sestimated resource size, currently put by the USEnergy Information Agency as being 485 tcf.

But the benefits do not just end there,according to the shale gas lobby. There is the

prospect that around half a million jobs could becreated by what would be an entirely new industry.In addition, energy security would be significantlyincreased with the estimated resource base havingthe energy equivalent of 400 years of South Africa’scurrent total fuel consumption.

Shell the main advocateThe lead proponent of the Karoo Shale Gas’exploitation is Royal Dutch Shell. The group is onrecord as committed to spend up to US$200mn in aprospecting programme, involving the drilling of upto 24 exploration wells in a 30,000sq kilometerarea of the 90,000sq kilometre Karoo – despite thefact that in the US, where shale gas exploitationhas been ongoing for many years, there has been ashift of emphasis. Shell now intends to focus onshale oil in North America as gas prices have fallenso significantly.

Just as in the US, where shale gas exploitationhas some heavyweight supporters – includingPresident Barrack Obama who has promoted USshale gas technology on visits to China, India andPoland – there is vocal opposition to the hydraulicfracturing process, or ‘fracking’, that is required toaccess the gas that lies under the vast wildernessthat is the Karoo. In fact, the Treasure the KarooAction Group (TKAG) has formed a strategic alliancewith Water Defense, the leading opposition groupto fracking in the US.

Fracking involves injecting water, chemicals andsand at very high pressure deep underground tocreate hairline cracks in rocks and release thetrapped, or ‘tight’, gas. After fracking, much of thewater at each well returns to the surface mixedwith toxic chemicals.

Large-scale shale gas production by frackingdid not occur until Mitchell Energy andDevelopment Corporation experimented during the

1980s and 1990s to make deep shale gasproduction a commercial reality in the BarnettShale in Texas, USA. Since then, the developmentof shale gas has become a ‘game changer’ for theUS natural gas market.”

“We believe that there is the technology toextract shale gas in a way that is entirely safe,”Obama said in a speech in May 2011 in Poland atthe US embassy in Warsaw at an internationalshale gas conference. Yet opposition to fracking isbased on a number of concerns including land andwater use; the contamination of aquifers; the noiseand traffic involved; and deteriorating air qualitydue to emissions.

Speaking at the 14th Omega Euro-AfricanTrade and Investment Summit, Martin Bell, thesurface technical lead and water manager forShell’s Karoo Project, tried to allay some of theseworries by spelling out the commitments hiscompany had made.

He said that Shell would not compete with thepeople of the Karoo for their water needs, andnobody would go short of fresh water because ofdrilling operations. Shell would, in short, conserveand recycle the water they used, as well as disclosethe fracturing fluids the company was injecting ateach drilling location.

Bell also drew attention to the shale gaslandscape that Shell had created at Groundbirch,Canada, where well locations are no closer than fivekilometres apart. He pledged this type of separationwould be replicated by Shell if hydrocarbons arediscovered and developed in the Karoo.

That is because, he explained, up to 32horizontal wells can be drilled from single well-head. “The footprint of a development in the Karoowould be very small,” he promised. “There arechallenges, but risks can be mitigated through bestindustry standards and strong regulatory oversight.

Gas

44

There is an energy shortage facing Africa’s largest economy, but there is also theprospect of an abundant, affordable but controversial resource that might be used tomeet the country’s future needs. Stephen Williams examines the debate surroundingSouth Africa’s shale gas prospects

SA’s shale gas: abundant, affordable

and acceptable?

The footprint of a development in the Karoo would be very small.

S09 ORA 2 2012 Gas 02_Layout 1 12/04/2012 14:57

E-mail: [email protected]: www.nadaboenergygroup.com

Abuja Offi ce:Plot 730 Alexandra Crescent, Wuse II AbujaTel: +234-1-790-6410, (0)803 317 3656

Lagos Corporate Offi ce

Tel: +234 (0)1 270 1393, (0)8037144811Tel/Fax: +234 1 280 6944

Port-Harcourt Offi ce:No. 176, Okporo Street, Rumodara, Port Harcourt, Rivers State, Nigeria.Tel: +234-1-870-6893, (0)803 3013157

Nadabo Energy is a wholly indigenous Integrated Energy Group providing World Standard Services to the Public and Private Sectors of the Nigerian economy.

Our proven track record evidenced in the excellent and professional services we have delivered to our distinguished customers show that we have the capacity to help your business achieve high performance in any of these areas:

� Petroleum Products Trading, Marketing and Distribution � Engineering Procurement � Project Management � Operation and Maintenance of Oil & Gas Equipment � Construction and Installation of Electrical and Mechanical Equipment

15B, Ogbunike Street, Off Admiralty Way, Lekki Phase 1, Lagos

Our Mission is to make Energy solutions better

The key challenge“The key challenge in the Karoo is access to water,” hecontinued. “The water required for fracking may bebrought in by rail from the coast, or drawn fromaquifers far below the ones that supply water forfarmers. The company will tap into the aquifers thatfarmers use only if it can prove no adverse impact.Drilling waste, which could be especially toxic becausethe area is high in uranium deposits, will be shipped todisposal plants by pipes or by rail,” Bell added.

Yet fracking’s detractors cite the fact that inJuly last year, the Advertising Standards Authorityof South Africa, an independent agency that setsguidelines for media companies, ruled that severalof Shell’s advertised claims, including one that saidfracking had never led to groundwatercontamination, were misleading or unsubstantiatedand should be withdrawn.

Jan Willem Eggink, Shell’s South Africa GeneralManager for upstream operations reiterates whatBell says. “We will not operate wells where isolationof our completion and production activities frompotable ground water cannot be achieved. And,wherever possible, we use non-potable water,including the recycling and reusing of water fromour operations. Nobody will go short of fresh waterbecause of our operations; either in the explorationphase, or if there is any further development. This isa legally binding commitment.”

Shell wants to drill at least half a dozen shalegas exploration wells over the next three years inthe Karoo, and if the gas reserves appear viable, itwill start production with at least 1,500 wellsseveral years later.

Speaking at the 2012 Africa Energy Indaba inJohannesburg in February, Eggink described theUS experience as the “best analogue” for SouthAfrica’s shale gas industry.

“Something like 10 years ago,” he told theIndaba delegates, “the US was tendering toimport gas and the building of LNG terminals.Then shale gas was discovered, and today the USis self-sufficient in gas. Within the next 10-20years they believe they will be self-sufficient inenergy, if the growth in gas continues. Thatcountry’s energy landscape has really changed,and it is something that could happen in SouthAfrica too.” ■


Gas

45

South Africa needs to get moving on exploring the potential of its suspectedshale gas fields in the Karoo, according to a top economist.

Shell would not competewith the people of the Karoo

for their water needs, andnobody would go short of

fresh water because ofdrilling operations.

S09 ORA 2 2012 Gas 02_Layout 1 12/04/2012 14:57


WEST-AFRICAN-FOCUSED explorer African Petroleum hasbeen awarded an exploration permit over Block CI-509, offthe Côte d'Ivoire. Under its agreement with the government and state-runcompany Petroci, African Petroleum will operate the 1091 sq-km permit area and hold a 90 per cent stake, with Petrociholding the remaining 10 per cent.The agreement follows African Petroleum’s recent award ofa 90 per cent stake in offshore Block CI-513 in December oflast year. The company said its exploration programme off the Côted'Ivoire would target deep-water Upper Cretaceous sub-marinefans which were considered to have similar potential asdiscoveries in the Tullow Oil operated Jubilee field off Ghanaand Anadarko Petroleum’s Mercury discovery off Sierra Leone.It added that it expected to kick off a 3D seismic programmeover both blocks in mid-April.

PHASE 1A DEVELOPMENT drilling started in February on the Jubilee field offGhana, according to operator Tullow Oil. Under the US$1.1-bn programme, eight new wells will be drilled comprising fiveproducers and three water injectors. The first of these wells should comeonstream in late June. Phase 1 remedial work continues – measures will include acid stimulations andrecompletions of some underperforming wells. This overhaul, and the additionalPhase 1A wells, should allow production to build toward the FPSO’s designcapacity of 120,000 bpd. Tullow expects Jubilee’s production to average between 70,000 and 90,000 bpdin 2012, depending on the well performance achieved from the Phase 1recovery program and the execution schedule of the Phase 1A wells. In the Deepwater Tano license containing Jubilee’s western portion, studiescontinue on the Tweneboa, Enyenra, and Ntomme fields oil and gas/condensatefields, now known collectively as TEN. Tullow expects to develop all three accumulations via an FPSO under anintegrated subsea cluster development scheme. FEED work started last August,and a design competition is under way involving three FPSO contractors. SubseaFEED is nearing completion and tenders for this work are being prepared. Tullow expects to submit the TEN Plan of Development (PoD) soon and aformal declaration of commerciality to Ghana’s Government. It anticipatesachieving first production from TEN 30 months after government sanction. The company has identified further exploration prospects in the license. Wellsthat could be drilled are Wawa-1, targeting hydrocarbons that may have movedto a trap up-dip from the TEN fields; Sapele-1, immediately south of the Jubilee,testing a prospective turbidite lobe; and Tweneboa Deep-1, a prospectunderlying the TEN fields.

AFRICAN PETROLEUM HAS hired theservices of Ocean Rig UDW a globalprovider of offshore deepwater drillingservices, for a two-well programmewith the “option” for a third well, to“continue” its drilling programme inBlocks 8 & 9, Liberia.The West African-focused explorersaid that the contracting of the EirikRaude “demonstrates” the company’s“ability” to secure deep water drillingrigs in a very “tight rig market” andalso “ensures that it can deliver itsextensive exploration programme”.The Liberian Narina-1 discovery was drilled to a TD of 4,850 m in 43 days with nooperational issues in a water depth of 1,143 m at a cost of US$55mn, AfricanPetroleum said.The well, it continued, encountered a total of “32 m net oil pay” in two differentreservoirs including a Turonian submarine fan and an Albian zone.The prospective size of the Turonian reservoir is 250 sq km based on 3D seismicinterpretation but ultimately will have to be confirmed through this upcomingappraisal drilling campaign.The programme will be completed using the Eirik Raude, a deepwater 5thgeneration semi-submersible, drilling rig and it is expected to commenceoperations in Q3 or Q4 2012.

African Petroleum signs contract withOcean Rig UDW for two wells in Q4 2012

BARELY THREE WEEKS after the Federal Government renewed the oil leasesof Mobil Producing Nigeria (MPN), operator of the Joint venture (JV) with theNigeria National Petroleum Corporation (NNPC) for another 20 years, thecompany has completed three wellhead platforms constructed locally for thedevelopment of 20 new oil fields.

President Goodluck Jonathan recently in Lagos commissioned two of theplatforms, which were constructed by Nigerdock Nigeria Plc at the SnakeIsland Integrated Free Zone.

Mobil's feat is a landmark achievement in the Nigerian Contentdevelopment as the facilities are the largest fabrication contracts carried outin the country by Nigerian companies for the NNPC/MPN Joint Venture.

The project, which is under MPN's Satellite Fields DevelopmentProgramme phase 1 (SFDP-1), is intended to develop the resources of over20 discovered but undeveloped oilfields in the NNPC/MPN) Joint Ventureacreage. Phase one of the project (SFDP-1) comprises Abang, Oyot and Itut(AOI) fields located in Oil Mining Leases (OMLs) 67 and 70, offshore Nigeria.

The project sought to recover more than 100mn barrels of oil and over20mn boe of natural gas liquids.

Nigerdock was contracted to fabricate the Abang and Itut wellheadplatforms, piles, coating and corrosion protection; installation ofmechanical/electrical equipment skids, testing, sea-fastening and load-out,while Dorman Long Engineering Limited was also contracted to fabricate theOyot wellhead platform.

Mobil's SFD-1 project involves engineering, fabrication and installation of awellhead platform in each of the three fields with production gathering pipelinesand tie-ins to existing production facilities as well as drilling of oil wells.

Executive Director of MPN, Mrs. Gloria Essien-Danner stated that the threecompleted platforms would soon depart from Nigerdock Nigeria Plc and DormanLong Engineering Limited's fabrication yards for the Abang, Oyot, and Itut oilfields. According to her, the platforms are a major achievement for NigerianContent as they are the largest fabrication contracts carried out in-country byNigerian companies for the NNPC/MPN Joint Venture.

E&

P

Tullow draws up Jubilee expansion plans

Mobil completes platforms for 20 new Nigerian oilfields

African Petroleum wins Côte d’Ivoire block

The Eirik Raude semi-submersible.

S10 ORA 2 2012 E&P_Layout 1 12/04/2012 15:02

Global Oceon Engineers is a Nigerian Offshore engineering design company,

established in 2007 and promoted by Petrolog group, a US mudlogging giant,

which has been operating in Nigeria for more than 30 years.

THE NIGERIAN GOVERNMENT’S LocalContent laws re-defined the industryand legislated the increased localparticipation in Nigeria. The government

has put its weight behind the development ofNigerian Companies and International OilCompanies (IOCs) have to collaborate todevelop local talent, while fulfilling their ownlegitimate commercial aspirations.

International oil companies accustomed toworking with global players expect thequantity and quality of work done by theindigenous companies to be of a similarstandard. Oceon now offers that service that isexpected by IOCs operating in West Africa’soffshore fields.

Global Oceon is focused on offshoreengineering and has built strong capabilities inSubsea and pipeline engineering. Oceon iscommitted to providing innovative solutions forclients, satisfying the oil and gas sector needsusing resources developed in Nigeria and byNigerians.

Oceon offers comprehensive engineeringservices from definition engineering through toconstruction support which includes:

Feasibilities, Preliminary Engineering,Conceptual Studies, Front End Engineering &Design (FEED), Detailed Engineering Design(DED), Project

Management, Fabrication & ConstructionSupport, Procurement, and Asset IntegrityManagement.

Oceon’s exhibits capabilities in Pipelineengineering which includes deepwater andshallow water pipelines and risers, routeselection & pipeline alignment drawings, onbottom analysis, reports, specifications, MTO,data sheets, pipeline wall thickness, corrosionprotection & weight coating, expansion, span &

stress analysis, pipeline expansion, pipelayinstallation analysis, upheaval and lateralbuckling, pipeline crossing, shore approach andlanding, pipe installation analysis: J-Lay, S-Lay& reel lay, static and dynamic analyses,initiation & abandonment analyses.

One of Oceon’s strength is its StructuralEngineering comprising topsides &appurtenances design, fixed platform design,Seafastening analysis &design, barge designand structural analysis, installation aids design,PLET/PLEM design, sub-sea manifold design,flare tower design, heavy lift analysis andtransportation analysis.

Another example is Piping Engineeringwhich includes piping and equipment layouts,general arrangement drawings, pipe stressanalysis, development of isometric drawings,material take offs (MTOs) for piping and valves,specifications, safety equipment location plan,piperacks and pipe support, wall thicknesscalculations, valve data sheets, line lists, as-built documentation & data collection.

Oceon is also noted for its Computer AidedDesign & drafting which includes InstallationProcedures Sketches, Installation Aids, FiledLayout, fabrication Drawings, Sea Fastening etc.

The company’s Process Engineering doesdesign reports and philosophies, P&IDs andPFDs, line list, HAZID and HAZOP, sizing ofpressure vessels, process control, processmodelling & simulation, topside modelling &simulation, steady-state & transientstate flowassurance analyses, hydraulic studies,multiphase flow troubleshooting, operatingphilosophies & support for plant start-up,warm-up, cool down, flowline sizing &insulation and 14c compliance.

These are just a few of the strengths thecompany possesses.

Project experienceAs testimony to the confidence that IOCs havein Global Oceon, since it was formed four yearsago, Global Oceon has worked on numerousprojects including: OSO RE for Mobil (platformmodifications, transportation analysis,construction support) Pazflor for Total (pipelinesdesign) EGP3B for Chevron (pipelines and risers,modification of existing offshore fixed facilities)EESP for Chevron (offshore pipeline systemswith PLEM and SPM loading buoy, cost estimateand schedule estimate) KIZOMBA C for Mobil(marine transportation design) AGBAMI forChevron (design of offshore installation aids)EPC2B for Mobil (offshore platformmodifications) BONGA for Shell (structuralfailure analysis) and Satellite FieldDevelopment Project Phase 1 for Mobil.

Global Oceon is boldly becoming theforemost engineering design company inNigeria, with roots that are authenticallyNigerian, recognised for the quality of itspeople, the quality of its designs and thestrength of its overall performance. ■

S10 ORA 2 2012 E&P_Layout 1 12/04/2012 15:02


AFREN WILL DRILL two productionwells at its Okoro East oil discovery,offshore south east Nigeria, aftertesting confirmed a high quality oilfind at the project, the company hastold the London Stock Exchange. Afren said it expected futurehorizontal production at the OkoroEast wells would yield between4,500 and 7,000 bopd per well,based on data from three drill stemtests undertaken since 17 January.The tests revealed oil reserves atbetween 38°API and 40°API as wellas multi Darcy permeabilities andaverage porosity of between 30 percent and 35 per cent, in what thecompany said were “excellentreservoir sands”. The wells would be drilled in the second half of thisyear using the free well head slots on the existingOkoro platform.They would be tied back to the Armada Perkasafloating production, storage and offloading vessel, amove Afren chief executive Osman Shahenshahsaid would ensure a high return.“The well has also opened up follow-onprospectivity on the block that we will continue toevaluate,” he said.

Afren and its partner in development licence OML-212, Amni International Petroleum DevelopmentCompany, would now consider developmentoptions for the project, he said.Up to eight production wells would be drilled thereunder a full field development scenario.The well was spudded in December by theTransocean jack-up Adriatic IX, which the companyused to search for oil near its producing Okoro field.

ANGOLA’S SONANGOL IS in talks onincreasing its stake in Portugal's GalpEnergia in a deal that would give it alarger slice of four oil blocks and a gasexport project offshore Angola. The state player is negotiating to buyhalf of Eni's one-third stake in themostly downstream company, boardmember Sebastiao Gaspar Martins toldReuters on the sidelines of theInternational Energy Forum in Kuwait.Crisis-hit Portugal has been courtinginvestment from its oil-rich former colonyin a bid to revive its flagging economy.Sonangol holds a 15 per centindirect stake in Galp through its 45per cent stake in Portugal's AmorimEnergia, which controls a third ofGalp, but wants a direct stake."We are working on that deal. Wewill go ahead ... I think the deal willbe done," he said of the talks.The Chevron-operated block 14located 80 km off the coast of thesouth west African country is theonly asset currently producing oil forGalp in Angola.

Sonangol in talks towiden Galp stake

48

E&

P

Afren wells follow Okoro test

THE LATEST STAGE ofTotal’s Anguille fieldredevelopment offGabon is in the finalconstruction, hookup,and testing phase. 21 Phase 3 wells willbe drilled from thenew AGMN wellheadplatform, which wascompleted in Francelate last year. Theplatform arrived in Gabon in January, with the three main sections —jacket, deck, and vent stack — assembled early February. Elsewhere in Gabon, Total says construction continues of the powerplant at the onshore PG2 site which will supply the Anguille andTorpille fields. The 1,000 metric-ton subsea electric cableconnecting the plant to the offshore facilities was laid in Januaryand February. At the offshore Torpille field, the TRM34 well entered productionlast month. Total’s capital expenditure in Gabon last year totalled US$758mn,up from $296mn in 2010. This was directed mainly at the continuedredevelopment of Anguille field, with completion of the AGMNwellhead platform, and replacement or installation of flowlines andoffshore pipelines. Other capex items included a program to replace obsolete electricalsystems on the Anguille and Torpille fields and drilling of wells onthese fields and the offshore Girelle field.

An operator on an offshore platform in the Anguillefield, off the coast of Gabon.

CHARIOT OIL & GAS has signed acontract with AP Moller Maersk fora one-well drilling slot using theMaersk Deliverer (UDW semisub)rig offshore Namibia. The firmexpects to spud its first explorationwell in the country imminently,after the anticipated arrival of therig on location at the end of March.The Tapir South prospect, whichChariot is targeting, is part of theTapir trend and is located inChariot's Northern Block 1811A,which is 100-per cent owned bythe firm. The prospect, saidChariot, has a 25 per cent change of success and gross un-risked meanprospective resources estimated at 604mn barrels.The well will be located 80 km offshore Namibia in 2,108 m of water,with a drilling depth of approximately 5,100 m total vertical depthsubsea. It is expected to take around two months to drill and is the firstwell in Chariot's four-to-five well exploration programme that isplanned to take place in 2012 and 2013. "We are extremely pleased to have concluded this drilling rig contractwith Maersk and to provide an anticipated spud date for our firstexploration well offshore Namibia. Despite the tight rig market wehave secured an excellent drilling rig for the Tapir South prospect witha highly reputable contractor," said Chariot CEO Paul Welch. "This willbe only the second well ever to have been drilled in the Namibe Basinand we look forward to commencing our operations and updating themarket with our progress in due course."

Chariot signs up Maersk Deliverer forNamibian well

Anguille offshore drilling platform in place

Afren confirms high quality oil atOkoro East discovery

S10 ORA 2 2012 E&P_Layout 1 12/04/2012 15:02

SkyVision. Your link to Global CommunicationsContact us at: [email protected] or +44 20 8387 1750 to learn more about our solutions. www.skyvision.net

Voted best for what we do best

S10 ORA 2 2012 E&P_Layout 1 13/04/2012 09:50


AUSTRALIA-BASED SUNBIRD Energy has spudded its first well at its Ermelocoal bed methane project in South Africa, the company has announced. The well, located about 200 km south east of Johannesburg in theWitbank coal mining region, was the first of nine core holes to bedrilled over Sunbird’s three lead projects.Sunbird plans to drill three core holes on Ermelo by May, with gasdesorption results due 60 to 90 days after completion of the final well.Following that, the drill rig and crew will move to the SpringbokFlats project, north east of Pretoria, to drill a further three wellsthere. The project is due to be completed, with the remaining threewells to be drilled in the Mopane project, south west of Messina, byearly in the third quarter.Sunbird managing director Will Barker said the company aimed todetermine the resource potential of its the 144,300 ha Ermelo project.“Each core hole will involve the sampling of coal seams for gasdesorption analysis to determine the gas content of the coals,” hesaid. “Additionally, each core hole will undergo geophysical loggingand permeability testing to determine the reservoir characteristicsof coal intervals.”The Ermelo permit and Ermelo West application provide a combinedbest estimate of 800 bcf of gas in place.

ADX ENERGY IS set to test its Sidi Dhaher-1 well in the Chorbane Exploration Permitonshore central Tunisia. The 2,428 sq km Chorbane permit, nearthe port city of Sfax, is surrounded byseveral oil producing fields and oil andgas pipelines.ADX expects to sign the contract for theDietswell Rig imminently while scheduling to move the rig and auxiliaryequipment to the well site is currently underway.Key site personnel are already in place and an operational work programme hasbeen agreed and finalised by the joint venture with testing operations expectedto commence within three weeks. Initial results are expected to be available shortly.ADX is also preparing to undertake an extended well production test toestablish long-term flow performance in the event of a successful test, onbehalf of the joint venture.The company's previous estimates have indicated the mean contingentoil in place.

Sunbird spuds in South Africa ADX Energy to test Sidi Dhaher oil discovery in Tunisia

Source: Baker Hughes

The Baker Hughes Rig Count tracks industry-wide rigs engaged in drilling and related operations, which include drilling, logging, cementing, coring, well testing, waitingon weather, running casing and blowout preventer (BOP) testing.

MARCH 2012 - LAND & OFFSHORETHIS MONTH VARIANCE LAST MONTH LAST YEAR

Country Land OffShore Total From Last Month Land OffShore Total Land OffShore TotalALGERIA (1) 32 0 32 0 32 0 32 24 0 24 ANGOLA 1 11 12 2 1 9 10 0 5 5CAMEROON (1) 0 0 0 0 0 0 0 1 1 2 CHAD (1) 2 0 2 0 2 0 2 2 0 2CONGO 2 2 4 -1 2 3 5 1 1 2 DRC (1) 0 0 0 0 0 0 0 0 0 0 EQUATORIAL GUINEA (1) 0 2 2 0 0 2 2 0 0 0 ETHIOPIA (1) 0 0 0 0 0 0 0 0 0 0GABON 5 0 5 1 4 0 4 6 1 7GHANA (1) 0 2 2 1 0 1 1 0 3 3IVORY COAST (1) 0 0 0 0 0 0 0 0 0 0KENYA 1 0 1 0 1 0 1 1 0 1 LIBERIA 0 1 1 0 0 1 1 0 0 0 LIBYA*** 5 0 5 5 0 0 0 0 0 0 MAURITANIA (1) 0 0 0 0 0 0 0 0 0 0 MOROCCO (1) 0 0 0 0 0 0 0 0 0 0 MOZAMBIQUE (1) 0 2 2 0 0 2 2 1 1 2NIGERIA 4 13 17 -1 5 13 18 6 8 14 SENEGAL 0 0 0 0 0 0 0 0 0 0 SOUTH AFRICA 0 0 0 0 0 0 0 0 0 0 TANZANIA (1) 0 2 2 0 0 2 2 0 1 1TUNISIA 2 0 2 1 1 0 1 2 0 2UGANDA (1) 0 0 0 0 0 0 0 0 0 0TOTAL 54 35 89 8 48 33 81 44 21 65

S10 ORA 2 2012 E&P_Layout 1 12/04/2012 16:36

S11 ORA 2 2012 Health & Safety_Layout 1 12/04/2012 15:12


US INVESTORS ARE moving to boostelectricity generation in Africa, where alack of reliable power has long been oneof the biggest impediments to broadereconomic growth.On a two-week energy trade mission toGhana, Nigeria, Tanzania, andMozambique, officials from Chevron,General Electric, Symbion Power, EnergyInternational, and Caterpillar met withgovernment officials, chambers ofcommerce, and private sector leaders onthe vast potential for American firms toinvest in African energy.In Nigeria, Deputy Assistant Secretary ofState, William Fitzgerald, says US firmsare among those preparing June bids forthe privatisation of power plants andpower distribution networks. With regular supplies of less than 4,000MW in a country where estimateddemand tops 10,000 MW, Fitzgerald saysPresident Goodluck Jonathan is movingto improve generation in partnership withprivate sector investors.“The Nigerian government realises that topromote – certainly to diversify theeconomy – to bring the manufacturersback on line, they need to boost power,”Fitzgerald says. Many US firms areinterested in oil and natural gas offshoreGhana, especially if Ghana and Côted'Ivoire resolve differences over thelocation of their maritime border, hesays.“It's an exciting time to be in the energysector in Ghana,” Fitzgerald says. “And Ithink what you are seeing is very much acommitment on the part of the Ghanaiangovernment to embrace private sectorcompanies to come in and do the work.You are going to see employment levelsincreasing and reaching record heights.You will also see education and health

sector clinics improving.”In Tanzania, Symbion Power is operatingan off-grid, renewable energy programmethat has helped create 1,000 jobs forsugar cane and bamboo growers as partof the US$206mn energy component ofTanzania's nearly $700mn US MillenniumChallenge Corporation compact.Fitzgerald says officials in Nigeria andGhana are looking at the possible transferof that technology to solve their own off-grid power needs. But for all the interestUS investors have about Africa, he saysthere must continue to be progress onlowering trade barriers to create apositive business climate.“The American companies that are going

to invest in Africa need to make areasonable rate of return,” he says. “Theyare not doing it for development.”US foreign direct investment in Africa hasgrown from about $14bn in 2006 tonearly $25bn in 2010. Total US trade withAfrica last year was about $83bn. That isbehind the European Union's $150bn andChina's $90bn in total trade.“Foreign leaders often say to me, Whereare the American businesses? How comethey’re not here competing for thisconstruction contract or that miningdeal? What are they waiting for?”Secretary of State Hillary Clintonchallenged business leaders gathered atthe State Department. “Thisadministration is doing everything we canto help American companies, large andsmall, compete and succeed,” she says.“But ultimately, we know it is up to you.We can't help you if you are not hungryenough to get out there and compete forthe business that is going to beavailable.”

Scott Stearns

THE PRESIDENT OF the Gabonese Republic, AliBongo Ondimba, has recently visited thelargest oil refinery in the world, situated inUlsan, South Korea. The visit comes after theGovernment of Gabon signed a letter of intentwith SK Energy (a conglomerate includingSamsung) in January 2012 for the constructionof a refinery in Port-Gentil in the Mandji IslandFree Zone within two years.

The new refinery would replace SOGARA,the Gabonese Refining Company, which isnow old and not capable of processing thequantities required by the President's policyon the development of raw materials.

Gabon is still currently exporting 95 percent of its crude oil, with the remainingfive per cent being processed locally bySOGARA. If negotiations are successful, thenew refinery is expected to process 50,000bpd (vs. the 21,000 bpd currently processedby SOGARA). Half of this will be exported,while the remainder will be used locally.The new plant will produce:6 LPG,6 Gas oil,6 Diesel,6 Jet fuel, 6 Fuel, 6 Refined petroleum.

The cost of building this refinery -around US$1bn - will be shared betweenGabon and SK Energy, supported by theKorean International Cooperation Agency(KOACI), which provides subsidies forKorean companies interested in doingbusiness abroad.

The climate variable was taken intoaccount in the feasibility studies. The newentity will limit its emissions of greenhousegases, recycle natural gas and recover oilresidue. The energy produced from the gasreleased during oil processing will be usedto supply the refinery with green electricity.

Boosting electricity generation Discussions underway tobuild an oil refinery in Gabon

Do

wn

stre

am

Golder provides the oil and gas industry with a comprehensive suite of geotechnical,environmental and social management solutions for challenges with onshore and offshore exploration and production activities, pipelines, LNG facilities, plants and refineries.

Engineering Earth’s Development, Preserving Earth’s Integrity

Offices across South Africa, Botswana, Ghana, Guinea and Mozambique. Tel: +27 31 717 2790 | oil&[email protected] | www.golder.com

Need a consulting firm that understands thediverse technical and cultural demands involved in oil and gas exploration and production?

Just Ask Golder.



RREAMS OF PAPERS have been expended in the wake of the 2010Gulf of Mexico Macondo blow-out and the Montara oil spill off thecoast of Australia the year before, with still more reports due to bepublished. Unlike many tomes that gather dust on shelves and are

rarely looked at, the findings and recommendations from these specificincidents have been taken seriously by the oil and gas industry.

Following the Macondo and Montara incidents, reports by the InternationalAssociation of Oil and Gas Producers and other industry and governmentalbodies along with the BP investigation itself have come up with a number ofexcellent recommendations. What we have taken from them in particular arerecommendations to improve competence management and to furtherstrengthen our systems and processes around operational and technicalintegrity. In the area of health and safety, it is well known that safety levelsimprove as a result of having the right equipment and tools, thereafter bycomplete adherence to processes and systems. The final improvement step isall around behaviours, an area in which the industry has given significantattention. Operational in particular, and to a degree technical, integrity hasn’treceived the same level of industry focus, however, we are all realising thatprocess safety is just as important as behavioural safety.

At KCA Deutag, we define the spectrum of safe operations as technicalintegrity, operational integrity and HSSE - the behavioural side. Organisationshave typically focused on technical integrity by maintaining and managingtheir assets, an area that KCA Deutag has always been strong on as a company.Now the industry is also looking to strengthening operational integrity. For usoperational integrity is about taking a holistic approach to safety which iseverything from the design, maintenance and operation of the equipment tothe competence of the people operating it and the human and behaviouralfactors associated with that activity. As a result we’re applying this holisticapproach to those parts of our process that have the highest exposure: well-control and lifting.

We’ve already rolled out a number of activities as part of our HSSE plan. Forinstance we have introduced an operational integrity review whereby we send amulti-disciplined team to each country where we have rigs to look at the full

remit of operational activity. The concept has also been introduced to our HSSEforums where it is changing the language that we’re speaking. Operationalintegrity is now a much more common discussion point, running like a threadthrough all of our safety tools whether these are incident review panels orinvestigations, new start-ups or operational readiness plans.

Strong operations departmentWe are also committed to developing group and local procedures through astrong and competent operations department. This includes a technicalauthority, similar to that which applies to equipment, where a particularperson will be the final arbiter from a technical perspective as to whatoperation is, or is not, acceptable. The technical authority relates to wellsthat we’re drilling, particularly the higher risk wells, to ensure that the fivecore values of The KCA DEUTAG Way are enforced when it comes tooperational integrity.

As a company we have over 100 rigs situated in 22 countries around theworld, so we’re revisiting a safety case approach to critically review thecontrols we have in place to prevent a major accident. This means translatingthe safety case into practical procedures for clearly identified individuals.Many of these are already in place through existing safety case work but wehave chosen to review all our cases to ensure we have prescribed the bestsets of controls possible. A thorough review of safety case “bow tie” studieshas allowed us to confirm these control and mitigations aspects of oursystems which are critical. We are addressing this by ensuring these aspectsare incorporated into operational procedures, training, job descriptions and soon. These procedures run throughout the company as part of the way we dobusiness wherever we operate in the world.

Wherever KCA Deutag works, we like to be in-country for the long-termand have a commitment to using local labour. This includes Africa where KCADeutag has been working for around 50 years in countries such as Libya,Algeria, Angola, Mozambique, Tunisia, the Sudan, Nigeria and most recentlyGabon. Before taking up my current position, I was senior vice-president forAfrica responsible for on and offshore. In most areas of Africa locally sourcedlabour accounts for around 90 per cent or more of the workforce and our start-up training programmes are run to meet not only our own high standards butlocal employment regulations.

Commitment to a universal standardIndeed, this commitment to a universal standard when it comes to deliveringsafe, effective, trouble-free operations for our clients wherever they are in theworld, is what gives us our competitive advantage. Therefore it is vital thatthese standards are maintained whether we are working in the Artic or Angola.Sometimes this can be challenging in tropical or desert regions where there areadditional risks associated with weather and climate.

To successfully and safely operate in this variety of regions, we rely on theleadership of our supervisors and expect them to be safety and operational leaders.

Post-Macondo many of our major clients now expect compliance in a numberof areas that perhaps weren’t so critical previously. We believe if we candemonstrate to industry we are taking operational integrity seriously then webelieve that puts us in a more competitive position as well as ensuring wemaintain our commitment to our staff. ■

* Jack Winton is Operations Senior Vice-President for KCA Deutag, one of theworld’s leading drilling and engineering contractors,

The oil and gas industry needs to develop large-scale rescue,response, and containment capabilities

Healt

h &

Safe

ty

54

Jack Winton* explains how recommendations for health and safety following specificincidents, such as the Macondo incident, have informed KCA Deutag’s policies.

Strengthening operational

integrity



Lib

ya

56

GGERMAN OIL AND GAS company Wintershall has restated itscommitment to post-Gaddafi development in Libya as it looksto ramp its oil production in the country back up to pre-revolution levels

Having resumed operations within Libya in October of last year,Wintershall has rebuilt its production levels up to 60,000 barrels per day(bpd) from its sites across the country.

The company has stated that its immediate aim was to increaseproduction within the country to pre-revolution levels of 100,000bpd.

Strong support from new governmentWintershall Libya general manager Dr Uwe Salge told Oil Review Africa thatthe company had received strong support from the new government andregional leaders.

“The focus is to re-establish pre-war production and there is a clearagreement among all players, including other oil producers and the state, toachieve this as fast and as efficiently as possible,” Salge remarked.

“The signals we are receiving from Tripoli and Benghazi is that everybodysupports the oil industry and that it should be centrally organised.

“I see no signals that the country’s new leaders want to change this;even the leaders in the east of the country who want more federalism arguethat certain sovereign structures should remain.

“They do not want to separate or divide the oil industry,” he added.Salge said that the firm’s Libyan employees were taking a “more pragmatic”

approach than before the revolution, with many people on the ground and inmanagement roles now more willing to make quicker decisions.

At the company’s annual press conference in Kassel, Germany,Wintershall chairman of the board of executive directors Rainer Seeledescribed Libya as a “test case” for the firm’s corporate activities in the Arabworld, and said that Wintershall’s commitment to the North African countrywould make it more attractive to potential partnerships across the region.

“Libya is going to become more important as an investment market forus,” Seele remarked. “We did not abandon our staff [in the country] and theydid not abandon us.”

Despite announcing increasing profits for 2011, the company’s overallproduction levels fell by 15 per cent, which Seele said was mainly due to thecrisis in Libya.

The company’s expectant growth from its Nord Stream operations withRussian gas giant OAO Gazprom, as well as its growing interests off the

coast of Norway, has allowed it to take a measured approach towards thestabilisation of its Libyan operations.

Long-term Libyan activities “Our activities in Libya have always been long-term and our contacts [withinthe country] date to before the Gaddafi era,” said Wintershall executivedirector for exploration and production Martin Bachmann.

“We deploy Libyan staff to sites around the world. Most of our staff in thecountry are Libyans and we will continue to train and invest in these staff.”

Assuming conditions remain stable, Bachmann said that Libya’s“enormous potential” would lead to Wintershall’s continued investmentin the country.

The company has invested more than US$2mn in the country in the pastfive years, Bachmann noted.

Salge, who is based in Tripoli, added that Wintershall’s capacity withinthe country could enable it to produce the desired 100,000 bpd within acouple of days, but that infrastructural issues needed to be rectified before itwas possible to export the oil.

“At the moment we are dependent on rectifying certain infrastructuralelements, such as pipeline repairs, but we cannot export such volumes at themoment as the pipeline is not able to sustain the necessary higher pressurewe would need for that,” Salge said.

“Certain sections of the pipeline need to be repaired and replaced and weare in contact with the National Oil Corporation and the pipeline operators.”

Salge predicted that it would be at least another 12 months before thecompany was exporting 100,000bpm from the country. ■

Wintershall operates eight onshore fields around 1,000 km southeast of Tripoli.

Wintershall’s capacity within the countrycould enable it to produce the desired100,000 bpd within a couple of days.

Oil Review Africa travels to German oil and gas company’s headquarters in Kassel fortheir annual press conference to find out the latest about their operations in post-Gaddafi Libya.

Wintershall remains committed to

post-Gaddafi Libya

Wintershall says it has boosted output in Libya to three times what it was in the autumn.


WHAT IS THE background to your marine operation? What were its mainfunctions at the outset and how has it developed? The company started in 1973 as a marine engineering company (Nico)servicing vessels. Nico International, now a subsidiary of Topaz, wasestablished in Dubai to service the increasing marine traffic generated by theoil boom. It bought one vessel then a second, but only needed one-and-a-half, so chartered one out. This worked so well that the company keptbuying, and by 2002 it had eight vessels.

Nico became Topaz in 2002 and started new manufacturing lines within theoil and gas fabrication works and installation, such as pressure vessels, processskids and structural works. The vessel TEAM Oman was added to Topaz's fleet.Its specialised cable laying capabilities significantly increased the Topaz fleet'sdiversity (we just signed a contract with ABB for a further five years).

In 2009 Topaz launched a revitalised corporate brand and the newdivisional brands Topaz Marine and Topaz Engineering, and in 2010 enteredthe Brazilian market through the acquisition of two vessels deployed inBrazil followed by West Africa in 2011. Today the company has 100 shipswith an average age of six to seven years.

Your fleet includes anchor-handling tug supply vessels, platformsupply vessels, multi-purpose supply vessels, specialised barges andice-breakers. Could you give some examples of the services suchoffshore support vessels offer? The PSVs supply all equipment to support the drillrigs such as mud, tubulars, casing and cement andalso personnel, food, fuel and water. The anchorhandling tug supply vessels (AHTSV) are vesselswhich supply oil rigs, tow them to location, anchorthem up and, in a few cases, serve as EmergencyRescue and Recovery vessels (ERRV).

AHTSV differ from Platform Supply Vessels (PSV)in being fitted with winches for towing and anchorhandling, having an open stern to allow the decking of anchors, and havingmore power to increase the bollard pull. The machinery is specificallydesigned for anchor handling operations. They also have arrangements forquick anchor release, which is operable from the bridge or other normallymanned location in direct communication with the bridge.

The multi-purpose support vessels are designed to operate in a morespecific role whether it be pipe-laying, diving, well intervention, ROV,stand-by and accommodation vessels to name a few. Designed as a multi-role vessel for the oil and gas industry, these vessels provide supply andgeneral support; construction support; maintenance support; andunderwater pipeline inspection. Secondary roles might include platformfire fighting and cooling, anti-pollution oil dispersant spray operations aswell as standby and rescue operations.

Has demand for vessels like these grown as more exploration andproduction has gone offshore?Demand now is deep, difficult, distant and dangerous: it is deeper and furtheroffshore and riskier as it is so deep. Also compact mud might be required tokeep gas pressure down. Shallow water drilling is continuing in Nigeria; it ismainly repair and installation contracts that have been postponed. However,now the market is increasing and tenders are starting to come out again, wehaven't seen much cut-back.

Technology has enabled oil and gas recoveryfrom deeper, more difficult to reach and moredangerous offshore areas. Do you constantlyupgrade and adapt your services to meet thesechallenges?Oil companies are looking for vessels that areDP2. Currently we are upgrading nine vessels toDP2 (at a cost of US$9.5-19mn) in dry dock,adding additional risers. Six new vessels have

come online this year with the possibility of being joined by four more.There is also a demand for DP3 vessels.

Rising oil prices make offshore operations ever more viable. Does thesame apply to your support services? Yes. We only invest in vessels that are needed and they are nearly all working.

It’s very early days for Nigeria. However, Ghana, Angola and a numberof other present and planned African operations are offshore. And, ofcourse now, East Africa is showing a lot of potential. Do you seepotential in the sub-Saharan African market as a whole? Currently the company sees so much opportunity in Nigeria that they are notplanning to go further afield – such as to Angola and Ghana, let alone EastAfrica – yet. Revenues are higher there than in the Middle East but costs arevery similar.

And what do you see as the main challenges for your business in thecoming year – or years? The major challenge is crew! There is an extreme shortage of seafarersworldwide. We need to look at the future and not employ expatriates. It onlycosts GBP2,000 per month (US$3,150) to train a cadet but it’s a question ofattracting them in the first place.


Topaz Energy and Marine has sent two anchor handling tug supply vessels to the Atlas,Mira and Britannia fields offshore Nigeria.

Demand now is deep,difficult, distant and

dangerous.

Inte

rvie

w

57

Topaz Marine provides supply and support services to the offshore oil and gas industry,supporting major projects. Roy Donaldson, COO, recently met with Oil Review.

Marine and engineering solutions

to the energy industry

S12 ORA 2 2012 Topaz _Layout 1 12/04/2012 16:38


AAS DRILLING ENVIRONMENTS becomemore challenging and complex, theneed to increase safety margins andreduce drilling non-productive time

(NPT) costs continues to intensify.It is also likely that our industry’s future will

face greater pressure from regulators and thepublic to ensure safer drilling practices.

More and more operators are turning toremote surveillance services as a way to providereal-time interactions with wellsite personnel tomitigate drilling hazards.

Through remote monitoring services,dedicated personnel can actively monitormultiple operations and spot potential problemsthat busy rig hands might otherwise overlook orlack the specialized training to recognize.

In addition to the health, safety, andenvironmental (HSE) benefits of fewer personnelon location, remote service engineers/specialistscan easily collaborate with a team of expertslocated in an offsite center of excellence,providing greater wisdom for real-time decisionscompared to any one person at the wellsite.

Developing a value-added remote servicefrom scratch requires many elements forsuccess. For example, providing a remote, real-time integrated pressure management servicerequires careful planning and development ofservice components.

These include facilities and communicationsinfrastructure, software and data-managementtools, clearly defined service integrationprocesses and communications protocol,trained and available personnel for job

execution, and customer partners willing tofield test service solutions.

This paper offers a case study on how asuccessful remote, real-time integrated pressuremanagement and wellbore stability service hasbeen developed in the US Gulf of Mexico.

It discusses the various aspects of theservice’s development from defining theservice objectives, components, anddeliverables to the communications protocolsand the personnel competencies and trainingrequirements for staffing.

The paper also describes aspects of thephysical facilities, communications infrastructure,and real-time software tools that provideautomated alarms, which aid personnel inkeeping the drilling operation out of trouble.

Finally, a customer field trial that helped toimprove the service further is examined and abrief summary of future developments is providedin the paper.

Many of today’s wells are being drilled inchallenging environments in order to accesspreviously inaccessible petroleum reserves.

Due to the complexity, geologic uncertainty,and sophisticated technology required forconstruction, a significant number of wellsexperience elevated drilling costs. The result isexcessive drilling NPT and vast HSE risks.

Two separate studies of drilling-related NPThave been published and their results areshown in Fig. 1.

On the left-hand side of the figure (Dodson2004), the pie chart shows that at least 42 percent of all drilling NPT can be attributed togeomechanic issues. The more recent,independent study (Welling & Company 2009)shown on the right side of Fig. 1 confirms thisquantity.

The authors of this paper contend that if moreproactive effort were placed on identifying,predicting and mitigating trouble zones duringthe planning phase and while drilling, asignificant reduction in NPT and a greater degreeof safety could be accomplished. A real-timepressure management service was established toaddress these needs.

Remote pressure management serviceThe primary objective of the real-time, remotepressure service is to supplementconventional predrill geomechanical modelingby identifying trouble zones in real time andtaking corrective actions.

This results in an increase in safety margins(e.g., diminish the potential for a kick) and areduction in drilling NPT (due to hazardmitigation). Additionally, by providing thisservice from a remote location, HSE risks arealso reduced.

During wellsite pressure managementendeavors, the pressure engineers are incontinuous face-to-face communication with theoperator’s rig supervisor. However, delivering thisservice remotely is more challenging because theremote pressure engineers must build trust andconfidence with the operator by ensuringconstant communication and careful datamanagement from a remote location.

Service components and integrationThe first service component, the predrillgeomechanical model, uses offset well dataand/or seismic data to derive a safe operatingwindow profile versus depth that is used for initialwell planning purposes.

The primary objectives of conducting a predrillmodel are to identify trouble zones andFigure 1 - Greatest sources of NPT

Developing a value-added remote service from scratch

requires many elements for success.

Tech

no

log

y

58

Building real-time, remote pressure management service capability to enhance safetyand reduce drilling NPT, by Andreas Sadlier, Chris Wolfe and Mike Reese, Baker Hughes;and Bill Kenda, Deepweater Drilling & Completion Consultant (Apache Deepwater LLCformerly Mariner Energy Inc)

Changing the face of real-time remote

pressure management

S13 ORA 2 2012 Technology_Layout 1 12/04/2012 15:18

©2012. Micro Motion, Inc. All rights reserved. The Emerson and Micro Motion logos are respective trademarks and service marks of Emerson Electric Co. and Micro Motion, Inc.

YOU CAN DO THAT

Drilling is a real-time operation. I need better visibility into well dynamics to stay safe and productive.

Accurate, continuous, real-time drilling fluid data improves drilling operations. Emerson’s Micro Motion Coriolis flow and density meters are used in a wide range of

drilling fluid systems to deliver real-time data that improves the quality of your drilling programs, lowers cost, keeps your operation running, and provides alerts to avoid critical events. At last, clearer insight into your drilling data drives profitable, safe well production–with confidence. For more information, visit www.EmersonProcess.com/Drilling or call +27 11 451 3700.

Visit the Emerson Global Users Exchange in Düsseldorf:

www.EmersonExchange.org/emea



appropriate geomechanical modeling methods. The drilling and casingprograms are then designed based on the predrill geomechanical model.

Fig. 2 shows a typical depth-based mud weight window that can beviewed in real time using an Internet browser. The shaded area is the “safeoperating window.” The operator’s representative is responsible formaintaining the downhole mud weight and equivalent circulating density(ECD) within the safe operating window and the remote pressure analystupdates the safe operating zone while drilling.

Delivering real-time pressure monitoring/modeling remotely requirescollaboration between consultants, geoscience, operations and the remotepressure engineering team. Typically, the remote pressure engineering teamis responsible for providing continuous mud weight window updates to theoperator’s drilling team, while the other groups provide support andadditional advice as needed.

Communications protocolWith modern computer systems and high speed data communications nowcommonplace in the petroleum industry, high-quality data are now availablein real time.

In-depth analysis of relevant pressure management data is typicallycarried out by an expert at the wellsite or in a remote center withinformation then dispersed accordingly to facilitate decision making.

In a remotely monitored operation, it is vital that all interestedparties stay informed on a continual basis as decisions normally madeat the wellsite must now be shared with offsite personnel.

Establishing a communication protocol can be quite complex,depending on the type of service provided, the communication capacitiesof the operation, or the number of companies involved. An examplecommunication protocol flow chart for remote pressure management ispresented in Fig. 3.

Remote operations platformExecuting a successful remote drilling service requires a reliable andscalable remote operations platform.

This includes a secure, robust communications infrastructure, physicalfacilities and expert personnel available 24/7 to interpret current conditionsand provide recommendations. It also includes software to automate,process, and display information.

To accommodate the remote pressure management service requirements,a separate remote services center was commissioned. The center is used tooperate a variety of complex interpretive services including: pressuremanagement, drilling optimization, reservoir navigation and other servicesthat optimize the wellbore construction process.

Furthermore, a collaboration room (Fig. 4) was established that can beused in conjunction with other subject matter experts (SME) and/or clientrepresentatives for accelerated decision making.

PersonnelThe most challenging aspect of delivering a remote pressure managementservice is finding personnel with the appropriate skill sets.

A typical engineer is required to have vast knowledge in the areas ofgeology, geophysics, petrophysics, and petroleum engineering because theanalyst uses a wide range of information (such as seismic, acoustics,images, formation tests and drilling) from all of these disciplines.Engineers with these skill sets are usually very scarce and difficult toacquire, especially for 24/7 operations.

As pressure management services are designed for hazard mitigation

throughout the drilling process, remote pressure management engineers arerequired to be available 24/7.

The minimum plan requires a total of four personnel: two remotepressure engineers working separate 12-hour shifts (while the third is ondays off) and a sales and engineering support specialist who ensures thesmooth operation of the remote services center. In reality, more remotepressure engineers are required because of workload, training, vacations, etc.

TrainingA comprehensive training program is generally structured as follows:candidate selection, initial training, structured, targeted training andcontinuous advanced training with mentoring.

Candidate selection is especially critical for pressure managementengineers as they must be technically competent and must possessexcellent communication skills.

The initial training phase should provide the engineers with a broadknowledge of the drilling process, geology, geophysics and formationevaluation.

Targeted pressure management training should include hands-on trainingin pore pressure and wellbore instability mechanisms, principles,methodologies, processes, predrill modeling (1D or 3D), and real-timeoperations.

Pressure management engineers gain further experience through anexcellent mentoring program where the engineers are exposed numerous,diverse pressure management jobs.

Software capability and data integrationInformation management is also a key component required for deliveringhigh-quality service execution.

Commercial software for pore pressure analysis and prediction providesa platform for integrating the predrill model and real-time information.

Many of these systems provide sufficient functionality, but for remoteservices, software tools must acquire real-time wellsite data through theremote services platform and infrastructure.

Therefore, a solution to address data integration needs while takingadvantage of the collaborative benefits of remote services was needed.

It was determined through customer trials that software which assistedpersonnel in filtering out relevant information and alerted them of potentialhazards before they are encountered would be extremely beneficial. Thesolution concept is presented in Fig. 5.

First, a predrill geomechanical model is developed for the prospect (label1 in Fig. 5). The model is then delivered to the remote center where it is

Tech

no

log

y

With modern computer systems and highspeed data communications now

commonplace in the petroleum industry, high-quality data are now available in real time.

Figure 2 - Example of mud weight window


imported into the real-time pressure management software (label 3 in Fig. 5). Next, real-time measurements while drilling (MWD/LWD), mudlogging,

and wireline are continuously sent from the rigsite to the remote center inreal time.

These measurements are delivered using the service company’s remoteoperations platform communications infrastructure, indicated by label 2 inFig. 5. The Wellsite Information Transfer Standard Markup Language(WITSML) is typically used to transmit the while-drilling data from thewellsite into the real-time pressure management software platform.

There, the pressure analysts compute the safe operating window andsend the relevant data to the remote operations visualization system (label 4

in Fig. 5). This enables multiple experts to view the same information at thesame time from any global location with an internet connection.

Finally, automated alarms (label 5 in Fig. 5) built into the real-timecollaboration system help minimize unplanned events from occurring.

Alarms included are: kick risk, lost circulation risk,hole cleaning efficiency, wellbore collapse risk, andseveral “look-ahead” alarms.

Remote pressure management service implementationDue to HSE concerns, there has been an increasingindustry trend to provide services remotely.

In deploying a remote or wellsite pressuremanagement service, there must be a fail-proofcommunication protocol, an accurate predrill analysis,adequate real-time measurements available, and adedicated cross-discipline team of professionals.

There must be an interactive communication linkbetween the wellsite (driller, LWD, mud logging, mudengineer, and the drilling foreman), customer (drillingengineer, geologist, and geophysicist) and the remoteservices center (geoscientists, drilling applicationsengineers, pore pressure and wellbore stabilityexperts).

Customer trials While most companies have dedicated personnelspecifically looking at the issues surrounding porepressure and wellbore stability, they are oftenunderstaffed and undertrained.


Tech

no

log

y

62

Figure 3 - example of remote pressure management communications protocol

A solution to address data integration needs,while taking advantage of the collaborative

benefits of remote services, was needed.

Figure 5 - Remote pressure management service information workflow


One particular operator expressed the desirefor real-time pressure management services for adeepwater Gulf of Mexico project.

The project contained many unknownsbecause of limited offset well data, poor seismicvelocities and a high potential for centroid(dipping bed) effects near salt.

In this particular well, a splitwellsite/remote pressure management servicewas deployed utilizing LWD resistivity andacoustic measurements.

While drilling, the pressure engineers wereable to compute an updated, accurate mudweight window. The analysis revealed that thesands were highly overpressured (sand pressures> shale pressures).

Accurately monitoring and modelling the safeoperating window in real-time enabled drillingdown through the primary target objectives.

Additionally, interactive communication andproactive decision making between the operator’soffice (drilling and geology) and thewellsite/remote pressure engineers aided in thesuccessful drilling of the well.

Conclusion and recommendationsMany elements are required for a successfulremote service. Due to the enormous NPTassociated with geomechanic issues, a real-timeremote pressure management service wasdeveloped meet operational needs.

There are numerous challenges involved indeveloping a remote interpretive service. Theseinclude: scarcity of qualified personnel, datacommunications infrastructure, appropriatesoftware, establishing communication protocolsand exhaustive training.

The lessons learned from customer trialsindicate that effective planning,communications protocol, and experiencedpersonnel make the execution of a remote real-time pressure management service an effectivevalue-added solution that can solve majoroperator challenges.

In the future, it is envisioned that thisreal-time pressure management service willexpand to include comprehensive remotewellbore stability services to minimize othergeomechanical issues (e.g., running casingto bottom).

It is anticipated that additional automationfrom software tools including enhanced alarms,

advice, and/or recommendations fromknowledge databases will provide higher servicequality by reducing the variability in the serviceand decision-making process. ■

ReferencesDodson, James K. "Gulf of Mexico 'trouble time'creates major drilling expenses." Offshore,January 2004.Welling & Company. Worldwide Survey of theMarket for Drilling Services. Market Reportprovided to Baker Hughes, Houston. Welling &Company, 2009.


Tech

no

log

y

63



TTHE LATEST WORLD Deepwater MarketReport from analysts Douglas Westwoodforecasts a 90 per cent growth indeepwater expenditure between 2012

and 2016 as compared to the previous five-yearperiod, with a total of US$232bn predicted to bespent subsea. In addition, Emerson expects thenumber of new Christmas Trees coming on streameach year to increase from about 280 in 2011 toaround 720 by 2016.

As part of the so-called deepwater ‘goldentriangle’ alongside North and South America, Africais likely to secure a significant portion of this spendwith the same Douglas Westwood report estimatingthat 72 per cent of forecast deepwater spend willbe in Africa and the Americas.

Another report from Quest Offshore Resources(Subsea Acceleration: Fathoming NewTechnologies) forecasts 3,200 new subsea treeorders between 2011 and 2015 with 60 per cent ofthese being in offshore Brazil and Africa. Along withBrazil and Australia, West Africa remains a keymarket for Emerson and we are currently pursuing80 subsea projects over the next two years.

So in what specific areas is this growth insubsea installations being seen?

The increasing demand for subsea trees andassociated hardware, such as control modules,manifolds and umbilicals, is helping drive the needfor many broader solutions – solutions that canprovide operators with more information andgreater control over their subsea operations.

This covers everything from reliable reservoirand well monitoring in order that production keepsflowing, through to the avoidance of costly shut-downs resulting from sand, hydrates or an increasedamount of water in the flow lines.

Continued growth of multiphase metersTake the issue of measuring flow rates in the wellstreams and the role of multiphase and wet gasmeters subsea.

Today, there is a definite need for multiphaseflow meters to be installed from field start-up toefficiently manage the reservoir throughout itsproduction life, ensure optimal recovery andmaximise output. As of 2010, according to GioiaFalcone of Texas A&M University and Bob Harrisonfrom Soluzioni Idrocarburi Srl, there were 3,314multiphase and wet gas meters installed worldwide– a number that is likely to double over the nextten years.

Current Emerson multiphase installations inAfrica include the West Delta Deep Marine (WDDM)

concession offshore Egypt, where 49 Roxar Wetgasmeters have been installed to help the operatorBurullus monitor water production profiles in real-time; the deepwater Akpo field, offshore Nigeriawhere Roxar subsea Multiphase meters have beendeployed; and the Kizomba B development, offshoreAngola, where Roxar subsea Multiphase meters andsubsea sensors have been installed for the operator,Exxon. Through the continuous measurement of theamount of oil, condensate, gas and water at thewellheads on the sea bed, Exxon will be able todetermine the optimal production capacity of eachwell (thereby avoiding the risk of overproducing thewell), increase flow assurance from the fields andoptimise the production process.

In the WDDM example in Egypt, over just a fourmonth period, the Wetgas meters were utilised toavoid several water breakthroughs, identify zonesfor water production, and optimise gas productionwithin acceptable and controlled water rates. Byproviding early warnings of the water produced, themeters have helped Burullus and its partners saveseveral wells from water breakthrough leading to asustainable production strategy moving forward.

For all the benefits of multiphase meters,however, the last few years have seen a raft of newsubsea challenges that they have to face. This

includes a wider range of process conditions withmore liquid and water present in the flow as well asdeeper wells with higher process pressures andtemperatures; and the growing remoteness of manysubsea fields where costs for subsea interventionsand periodic fluid sampling (PVT) are high.

In addition, there has also been an increase inthe number of subsea tie-backs withEICDataStream, the global projects database of theUK trade association, the Energy Industries Councilnoting that there are 27 current and future subseatie-back projects in Africa. Examples of fields wheresubsea tie-backs are in place include the Diega &Carmen oil fields in Equatorial Guinea; the Foxtrot,Mahi & Manta gas fields off the Côte D’Ivoire; theErha North and Erha South fields, offshore Nigeria;and the Kizomba development offshore Angolawhere Emerson’s Roxar meters are in place.

The risks of longer horizontal productionpipelines and tie-backs is that it takes more time todetect a water breakthrough in the well, increasingthe need for real-time monitoring to preventobstacles to flow assurance, such as hydrates andwater encroachment.

It is therefore vital that today’s subsea multiphaseand wet gas meters come with an extended operatingrange, added resilience, and generate ever moreaccurate and sensitive measurements of flow ratesand water production profiles.

Emerson’s latest subsea wet gas meter, forexample, is being designed to include newmicrowave electronics to provide even more stableand accurate measurements. The meter will be

Emerson's subsea network answers many of operators’ questions relating to subsea operations.

The last few years have seena raft of new subsea

challenges

Tech

no

log

y

66

Driven by the need to develop fields in deeper waters, more challenging locations and inreservoirs of increasing geological complexity, the subsea installation market is expectedto grow at a significant pace over the next few years, with deepwater developments likelyto be a major element of many of the world’s IOC and NOC portfolios.*

The African subsea market continues

to hot up


particularly applicable for new gas finds, such as offthe East African coast where Anadarko and ENI, forexample, are engaging in significant explorationactivities offshore Mozambique.

With the new meter, transmission andresonance measurement significantly extend theoperating range. The meter also includes a salinitymeasurement system which can inform thereservoir engineer where formation water isentering the flow as well as also helping theprocess engineer when adjusting injection rates ofscale and corrosion inhibitors.

Other developments in Emerson’s multiphasemetering capabilities include a new downhole flowsensor system which will, for the first time,generate multiphase flow measurements fromdownhole in the well and deep in the reservoir,leading to increased operator understanding ofreservoir flow and zonal contributions from wells;and to be launched in early 2013, a subsea versionof Emerson’s third generation multiphase meter.

The new meter version will be two thirds ofthe size and half the weight of the currentsubsea version without any technologycompromises. Such compactness is crucial, withmany subsea manifolds offshore Africa alreadycrowded with instrumentation.

Downhole reservoir monitoring & hydrate managementDownhole reservoir monitoring and hydratemanagement are also crucial to African subseaoperations today.

To this end, Emerson’s Roxar intelligentmeasurement devices and sensors are highly robustand are utilised not only to monitor temperature,

pressure and water cut, but also gas fraction, sandrate and flow velocity.

Deployed in production, injection, orobservation wells, the Roxar Permanent DownholeMonitoring System (PDMS), for example,continuously transmits accurate pressure,temperature and flow rate data from the reservoir inreal time to local or remote well control facilities.Some of its gauges have been in operation fordecades, requiring minimal maintenance.

In addition, Emerson has recently launched anew solution that can generate information fromthe B annulus within the casing of an oil well –previously a ‘no go’ area. The new tool is expectedto have a significant impact on both production andoffshore safety, provide early warnings of highpressures, protecting casing integrity, andpreventing pressure build-up and, in the worst casescenarios, shallow gas blow outs.

Hydrate build-up, where crystals formed in highpressure and low temperature gas flows can blockpipelines and interfere with production, are also aparticular risk in deepwater fields today.

The situation can be made even worse,however, if the wrong amount of hydrateinhibitors, such as MEG (Monoethylene Glycol), isinjected. We have seen cases, for example, whereup to 20 per cent of the pipeline capacity isoccupied with MEG, due to overdosing.

In response to this need to establish greatercontrol over the measuring and injection of hydrateinhibitors, Emerson has developed a compact androbust subsea retrievable injection valve solution,which provides operators with precise control overchemical dosage rates.

The injection valve can also be integratedwith other measurement solutions, such as thesubsea wet gas meter, to increase subseaproduction performance. In this case, the wet gasmeter measures the early onset of formation-water production and then the subsea chemicalinjection valve ensures that the necessarypreventative is action.

Transparency & integrationIt is this integration of instrumentation which iscentral to the increased need for transparency andbetter handling of information in Africa’s subseafield operations.

This is being enhanced through a specialisedWindows-based field monitoring system whichenables E&P operators to observe their fields fromremote facilities.

Known as Roxar Fieldwatch, the systemincorporates a wide range of Emerson’s reservoirmonitoring instrumentation within one singlecontrol system framework, covering everythingfrom sand monitors and erosion probes through todownhole pressure and temperature gauges; andthe tracking of well test jobs.

The latest version also comes with newerosion-combatting capabilities which enableoperators to install virtual erosion sensors withintheir production system – particularly to monitorbends, T-bends and reducers in areas where it’sdifficult to deploy physical sensors. While not asaccurate as real sensors, the virtual erosionmodels can calculate important productioninformation by inputting flow information,pressure and temperature data.

Maximising asset returnsSuccess in maximising asset returns in subseaoperations today depends largely on operators’ability to characterise and understand reservoirsand generate accurate production information toguide decision-making.

How are my wells performing? Are there anyconditions that affect my assets and the productionflow? How do I keep my assets working for the fulllife of the field with the same efficiency?

Many of these questions are now beinganswered. ■

* By Steve Jennings & Ingar Tyssen, EmersonProcess Management..


Tech

no

log

y

68

The new Roxar downhole flow sensor system generates multiphase flow measurements from downhole in the well and deep in the reservoir.

Downhole reservoirmonitoring and hydratemanagement are also

crucial to African subsea operations today.

The Roxar subsea Multiphase meters have beendeployed on fields, such as the Akpo field offshoreNigeria and Kizomba B development offshore Angola.


S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

The AX-S subsea well intervention system is one of the most significant and innovativepieces of technology the subsea industry has seen and is specifically designed to directlyaddress some of the unique operation demands of the deepwater subsea environment.*


IIT IS WIDELY recognised that while subseawell intervention is necessary, traditionalmethods can make it a time consuming andvery costly activity, with drilling and semi

submersible rig costs running at up to US$1mn to$1.4mn a day spread rate. There are more than4,000 oil and gas producing subsea wellsworldwide and this number is increasing at a rate ofapproximately 500 a year. With many such wellsover a decade old, intervention is crucial to allowfor maximum oil and gas extraction.

The sustained rise of deepwater oil and gasexplorations has made the challenge of cost-effective well intervention even more pertinent. Thechallenging conditions experienced at depth, inregions such as West Africa, Brasil, Asia and theGulf of Mexico, mean many wells have beenproducing for several years without necessaryintervention. This often results in sub-optimumproduction and ultimate recovery reduction.

It was clear that the oil and gas industryrequired a step-change in technology and it was at3,000m (10,000ft) that the AX-S (“access”)challenge started.

Developed at 3,000mFollowing a seven-year development programme,involving the technical expertise of a range ofpartners, international oilfield services companyExpro has developed a technology which provides acost-effective well intervention solution designed toclose the value recovery gap between subsea anddry-tree fields by providing a safe, riserless andremotely operated subsea solution which is at leastone third the cost of using a rig.

The AX-S subsea well intervention system isone of the most significant and innovative pieces oftechnology witnessed by the subsea industry. It is alife of field solution to well intervention and isspecifically designed to directly address some ofthe unique operating demands of the deepwatersubsea environment.

The system, which is deployed from a monohullvessel, is the world’s first intervention technologythat can operate in depths up to 3,000m, whichcovers every subsea well across the globe. It allowsoperators to significantly increase production ratesand ultimate recovery from subsea wells.

The AX-S system has been designed and builtwith the input of more than 200 vendors andsignificantly reduces subsea intervention time. As acomparison, a typical deepwater intervention cantake approximately 10 to 12 days using a rig,compared to only six to eight days using AX-S.

To enable deployment of the system, Expro hasentered into a multi-year charter party contractwith TS Marine Asia Pacific to use its DP 2 multi-services vessel Havila Phoenix for worldwideoperations. The Havila Phoenix is 110m long and23m wide with a moonpool of 7.2m x 7.2m, a 250tonne actively-heave compensated subsea craneand 2 x 4000m rated Schilling UHD WorkclassRemotely Operated Vehicle (ROV) systems.

Designed for deepwater The AX-S structure is 34m tall and weighs 220t,is deployed onto a subsea tree with an active-heave compensated fibre-rope winch from thevessel, and is remotely controlled from thesurface like an ROV. It consists of an integratedset of pressure-contained subsea packagescompromising well control package (WCP), toolstorage package (TSP), wireline winch package(WWP) and fluid management package (FMP). Ahydraulic plug-pulling tool overcomes the risksassociated with pulling and setting tree crownplugs, while a novel control umbilical overcomesthe challenges of weight and subsequentdeployment/handling system size.

The AX-S system has a fully-enclosed pressurehousing, with no dynamic seals between thewellbore and surrounding environments.

The WCP is a dual safety barrier containingindustry-proven 7 3/8inch shear seal and gate valves.If any safety issues arise, the operator has time toidentify the problem and isolate the wellbore.

Positioned directly above the WCP is the TSP,which contains eight tool pockets, located aroundthe inner circumference of the package. The toolsare swapped on the seabed (in minutes rather thanhours) and as they are held in a pressure retainedhousing, no pressure testing is required after eachtool change, saving significant operational time.

The tools are run in the well by the WWP.Contained in a pressure housing means issues suchas hydrocarbon leaking into the surrounding waterand water seeping into the well are all buteliminated. The winch has 7,620m of mono-conductor that conveys the various interventiontools into the well.

The final subsea section, the FMP, can deployglycol fluid into the system to flush out seawaterand also hydrocarbons that are then circulated backinto the well or more likely back to the host subseaproduction system. Depending on the specificneeds of the customer, seawater can be mixed withthe fluid in variable ratios as required, for pressure-testing and flushing.

A control cabin on the vessel has a computergenerated interface to control and instruct thevarious packages on a fully automated basis. Thecontrol system comprises of all hydraulic controlssubsea meaning that there is no requirement for anyhydraulic lines going back to the surface. To ensureoperations are safe and effective, video cameras andan ROV are an integral part of the system.

Expro, Deep Tek Ltd and Parkburn have

This solution is designed toclose the value recovery gap

between subsea and dry-tree fields.

Tech

no

log

y

70

Meeting the

deepwater challengeA-S meets your interventionneeds at any depth.

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

developed a fibre rope umbilical bundle and handling system for deployment ofthe AX-S system that comprises three individual umbilicals helically wrappedaround a main fibre rope, which provides greater strength and operationalefficiency than wire rope alternatives. It is buoyant in water and therefore adds noadditional weight to the overall deployment system. This also reduces the winchpower consumption, surface equipment size and there is no torque in the liftingline that may prove hazardous in the management of vessel-based operations.

The technology also brings benefits in the safety aspect of its design. As thetool swaps are carried out on the seabed, back deck operations are far safer. Alsoit is only necessary to disconnect the running tool and umbilical from the supportvessel to leave location, leaving the system as a fully pressure containing safetybarrier on top of the subsea tree.

The system is more cost effective than riser based alternatives because it issupported from a mono-hull vessel, and is faster to operate than wire-through-water solutions especially on horizontal trees. Studies carried out by Exproindicate that AX-S is the only viable solution that is economically attractive forwireline intervention in deepwater wells and this step-change in philosophybrings significant commercial and operational advantages in shallower waterregions as well.

Tried and tested Expro is currently undergoing a comprehensive testing programme, which startedin June 2011, to ensure that every element of the AX-S system is workingeffectively before it is finally commissioned and commercialised in 2012.

The company successfully completed the roll out of a three-phase wettesting process in September. Starting at a depth of 115m in the Buchan Deep,East of Peterhead, Scotland, the active heave compensation tool, winder andumbilicals, deployment and recovery of dummy packages onto the seabed andAX-S running tool thrusters and orientation were tested.

These elements were then successfully tested at 1,206m water depth inSognefjorden, North east of Bergen, Norway and finally tested in deeper watersof 2,444m North of Shetland in the Norwegian North Sea.

The final phase will be to install the AX-S subsea packages and run the finalcommissioning tests on a subsea wellhead, which is due to be completed byearly 2012 prior to heading for its first commercial job.

Expro has now signed a long-term frame agreement with Total E&P UK Ltd, asubsidiary of the Total Group enhancing the company’s strategy and long-termcommitment to its life of field vision for subsea developments in any water depth.

This first agreement will allow Expro to work together with its clients to fosterExpro’s subsea well intervention capabilities and ensure these meet industryrequirements. Discussions are also advancing with various other global andindependent operators who all see the vision and value of the AX-S technology.

ConclusionSubsea and deepwater well intervention is increasingly important as operatorslook to extend reservoir life and maximise production, however with budgetsbeing constantly scrutinised across the industry, increasing rig costs anddeclining availability mean intervention is an activity which could come underthreat (or typically does not happen on subsea wells).

Expro’s AX-S system delivers a cost-effective answer to this dilemmaand helps to promote good practice and maximising AX-S to reserves andvalue within the industry through the concept of increased intervention.The emergence of deeper water plays provides a ready and willing marketfor this technology.

With the number of subsea wells increasing across the world, it has openedup opportunities for emerging and maturing subsea regions, such as Brazil, theGulf of Mexico, India and West Africa. These are potentially huge areas for notonly AX-S, but also Expro’s range of services and it will be working closely withthose regions to deliver and meet the needs of customers.

AX-S aims to provide enhanced hydrocarbon recovery by providing wet treeswith the same opportunity for intervention and management as is available on drytrees. The system has the potential to transform the economics of subsea wellproduction by providing a safe, cost-effective solution compared to traditionalintervention methods. ■

*Matthew Law is technical manager for Expro’s AX-S business.


Tech

no

log

y

71

Subsea and deepwater well intervention isincreasingly important as operators look to

extend reservoir life and maximise production.

Scott Pattillo, senior AX-S engineer, overseestesting of the AX-S system in Aberdeen.

A DAMEN MODULAR Dock (DMD) 4020 is beingconstructed for - and will be delivered to -Djibouti. Djibouti’s busy port is one of the mostimportant gateways to the African continent andis strategically located at the confluence of theRed Sea and the Indian Ocean. Besidesmaintenance of the Port Authorities’ own fleet,the dock will be used for repair andmaintenance of port-calling vessels.

The dock, that measures 50 x 20 m, is tobe used for repair and maintenance of theAuthorities’ fleet, which consists of varioussupporting vessels such as tugs, shoal bustersand pilot vessels. The delivery of the DMD4020, currently under construction in Dubai, isscheduled for the second half of 2012. Aftertesting in Dubai and delivery of the dock inDjibouti, a Damen Services team will stay onlocation for two years to give operational andtechnical support. Damen Services the

Netherlands will support the dock operations bysupplying parts, equipment and expertise.

The practical and competitive dock can be builtworldwide and can be used in various types ofmarine circumstances. It can also be outfitted with

cranes, accommodation units, roller blocks,workshop units, sandblast curtains and dockmooring systems. In fact, with an ISO 14001certification, it lives up to the latest standards inenvironmental care. The design incorporatessuch features as low emission motors, LEDlighting and dedicated systems for wastemanagement and spills avoidance.

The secret lies in the simplicity of theconstruction, consisting of two wing walls thatare coupled to a number of individual pontoons.Marcel Karsijns, Manager Special Projects, says:“Every unit measures 10 m. You can enlarge thedock to a length of 100 m whenever youchoose. Modules and wing walls are coupled

afloat. It’s equally simple to unlock thecomponents. You can upkeep and repair thesemodules in the dock itself, making the dock self-maintaining. In addition, the dock contributes tothe uptime and success of our customer’s fleet.”

Damen Shipyards awarded contract to build modular dock for Port of Djibouti

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52


MMANY FLOORS ABOVE ground levelis possibly not where you wouldexpect to be when discussingtechnology that is to run along the

sea bed. However, if you’ve got a good story, itreally doesn’t matter where it’s told. And X-Streamis a very good story, as DNV, a global provider ofknowledge for managing risk, made clear in a pressconference earlier this year in a high-rise buildingin central London.

X-Stream is a new pipeline conceptresearched and developed by DNV. Its aim is tolower the costs of deep-and ultra-deepwater gaspipelines but still meet safety standards.

If it can be done it will probably find themarket receptive. Gas fields are going deeperand further offshore and the likeliest alternativegas transport option — FLNG — is notparticularly cheap. X-Stream of course wouldneed some upfront investment and testing butDNV presents it as a reasonably priced option, ifit can be commercialised.

DNV would not be the company thatcommercialised X-Stream; that’s for the oil andgas industry itself to do — with DNV’s help ifrequired. However, based on past experience,DNV is not being overly optimistic in promotingthis concept. The company has beeninstrumental in developing and upgrading thesafety and integrity regime and standards foroffshore pipelines over a number of decades.Today, more than 65 per cent of the world’soffshore pipelines are designed and installed toDNV’s offshore pipeline standard.

The selling point of the concept is that bycontrolling the pressure differential between apipeline’s external and internal pressures at alltimes, the amount of steel and thickness of thepipe wall can be reduced by as much as 25-30per cent — and possibly more. That’s animportant claim because today’s very thickpipelines can only be produced by a limitednumber of pipe mills and laid by a limitednumber of vessels. Reduced thickness meansmore pipe mills and vessels, which means morecompetition, more economies of scale andcheaper pipelines. That, at least, is the idea.

Downloads and videos explaining thetechnical details of the concept can be found athttp://www.dnv.com/resources/video/x_stream_gas_transport_concept.asp andhttp://www.dnv.com/binaries/X_Stream_gas_transport_concept_tcm4-506349.pdf. However, abrief summary goes as follows: during

installation, it is necessary to fully or partiallyflood the pipeline to control its differentialpressure. An inverted High Pressure ProtectionSystem — i-HIPPS — and inverted Double Blockand Bleed valves — i-DBB — are used to ensurethat the system immediately and effectivelyisolates the deepwater pipe if the pressurestarts to fall. In this way, the internal pipelinepressure is maintained above a critical level forany length of time.

A concept studyAs we have noted, this is a concept study; abasic and detailed design will need to becarried out before the X-Stream concept isrealised on a real project. DNV intends towork further with the industry to refine andtest the concept.

Experienced players in the pipeline industrywill notice that much of this is not new — andthat is something DNV freely admits. Thecompany based its concept on improvingexisting technological systems rather thaninventing new ones, as DNV’s global pipelinemanager, Asle Venås, explains. “We looked at

several technologies, some new and somebased on existing technologies. This one waswhat we saw as the most promising,” he says.

That, however, begs an important question:if the systems existed already, why was DNV thefirst to come up with this concept? In fact, saysVenås, several authorities have alreadysuggested using continuous internal pressure inpipelines as a concept, “but without givingdetails on how this can be done. We put severaltechnologies together in a way that makes thissafe and reliable.”

The fact that this is not a system requiringa totally new approach is important. After all,technological change is often slow in the oiland gas world. While he does not estimate aspecific timeframe from acceptance of theconcept to development, testing and launch,Venås does say: “X-Stream is based onalready proven technology so I guess itshould be relatively easy to qualify andimplement.” However, he adds: “Time isdependent on the resources put intodevelopment.” In any case, “it is a conceptthat needs to be studied further”.

But it could clearly meet a need. “We knowthat the cost of long-distance gas transport inultra-deep water is a serious challenge,” saysVenås. “X-Stream was started after our CEOHenrik Madsen had been told this by the CEO ofPetrobras, which faces this challenge on its pre-salt development. “

DNV has developed a new deepwater pipeline concept.

Its aim is to lower the costs ofdeep-and ultra-deepwatergas pipelines but still meet

safety standards.

Tech

no

log

y

72

Does pipeline supply of gas at extreme depths have to be limited to high priced, speciallymade and very thick pipes? Not necessarily. Phil Desmond discusses a new approachto deepwater pipeline supply that adapts some existing technologies and, potentially, cutscosts — without undermining safety standards.

Is the gas pipeline industry

out of its depth?

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

Exhibition opening times:

Entry to Oil & Gas Libya 2012 exhibition is free of charge to business and specialist visitors only. All visitors will be registered on arrival.

For further information please go to:

or contact the organisers: DAR ALARAB, 18 Algeria Square, Tripoli Phone: 021 333 9141 Email: exhibitions @alarab.co.uk

International showcase for oil exploration, production, refining and petrochemicals Where service and supply companies meet the oil and gas producers and refiners On display: drilling and downhole technology, reservoir management and engineering

solutions, LNG, pipelines and refinery development Exhibiting countries include: Canada, Egypt, France, Germany, Italy, Netherlands,

Turkey, UAE, UK, USA and Libya High-level conference programme 23-24 April – to be inaugurated by Libyan Minister

of Oil, Abdul-Rahman Ben Yezza Exhibition running alongside Infrastructure Libya 2012 – the International

Exhibition & Conference for Libya’s Rebuilding Programme

Sponsored by:

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

Bear in mind also that even though areaslike the Middle East tend to carry out E&P atmodest depths, pipeline transport of gasoverseas (from Oman to India, say, which hasbeen mooted) will inevitably involve greaterdepths. Venås explains: “The Middle East has alot of gas and in principle only one country toexport to that is within reach for pipelines —and that is India. However, the Arabian Sea isultra deep.”

Of course African gas involves depth ofproduction as well as supply. “A large part of theoil and gas field offshore West Africa is in verydeep water and the new licences issued are ineven deeper water,” says Venås. And there is aclear opportunity to monetise that gas if transportcosts can be driven down. “In West Africa most ofthe associated [offshore] gas is flared because it istoo costly to send to shore. The only country inWest Africa where it is forbidden to flare theassociated gas is Ghana.”

And Africa will have a lot more gas to dealwith soon, he suggests “There are also severalnew oil and gas fields in other areas offshoreAfrica, such as Mozambique, which hasdiscovered large reserves.”

FLNG, which has been, and will be,regularly covered in these pages, remainscostly and will take a long time to develop. Ifpipeline production costs were to fall as aconsequence of adopting X-Stream (or aversion of X-Stream designed for commercialuse), it might quickly pay back the moneyspent on development. That, however, dependson a number of factors: the type of projectsthat use it, the timing of its adoption, andcustomer demand for example. Pipelines maybecome cheaper as thickness becomes less ofan issue but really big economies of scale maybe a bonus that arrives a lot further down theline,

And DNV may be among those to benefit,even though from DNV’s point of view this is aresearch concept rather than a project. Thecompany would, however, hope to gain fromthe application to the new deepwater pipelineenvironment of its established profiling,consultative, verification, standardisation andcertification business.

Of course without X-Stream the deep seagas pipeline business is not necessarilydoomed. However, as Venås notes, “If the costgoes down more projects will becomefinancially feasible.” And those projects willstart at levels unimagined in the past. Howdeep would Venås suggest? “No limit. Bylooking at the trend it appears the industrywill go deeper and deeper.” ■


Tech

no

log

y

74

It will be important to maintain the minimum pressure in the pipeline during pre-commissioning.

Africa will have a lot moregas to deal with soon.

TDW OFFSHORE SERVICES AS (TDW) announcedthat it has successfully designed and built acustomised 48-inch SmartPlug® pipelinepressure isolation tool for Nord Stream AG.Weighing approximately 12 tons, it is thelargest SmartPlug tool ever produced. Nord Stream retained TDW to assist indeveloping contingency solutions for pipelay,pressure testing and planned futuremaintenance of the Nord Stream gas pipelines.Upon completion, the two 48-inch pipelineswill extend approximately 1,220 km fromRussia through the Baltic Sea to Germany.TDW carried out a series of pre-engineeringstudies before finalising the design. TheSmartPlug tool was designed, built andrigorously tested by TDW at its global headquarters in Stavanger. Thenew 48-inch SmartPlug tool will be used to safely isolate pipelinepressure during scheduled pipeline maintenance and potential valve

change-outs. It is currently Type Approved byDet Norske Veritas for a maximum operatingpressure of 199 Bar. “The tool design is based on our proven 42-inchSmartPlug design,” said Larry Ryan, Director,Operations for TDW Offshore Services. “However,the exceptionally large diameter of the pipelinemeant that Nord Stream required a SmartPlugtool that was 30 per cent larger. The newSmartPlug tool is not only exceptionally large,but is also capable of isolation at extremely highpressures,” he added.The SmartPlug pipeline pressure isolationmethod is designed to provide great value toowners and operators of pipeline systems. Itmakes it possible to safely isolate the area

targeted for work from hydrocarbons without bleeding down theentire work zone, which is costly and time-consuming. It is also veryeffective in minimising impact on the environment.

BAKER HUGHES HAS developed a chemicaladditives line designed to remove hydrogensulphide from asphalt or bitumen products. BakerPetrolite SULFIX 9610 and SULFIX 9614 asphaltadditives help reduce hazardous levels of hydrogensulphide that can lead to health, safety and

environmental issues. Hydrogen sulphide, a toxic,colourless highly flammable gas, is a commoncomponent of many petroleum products, includingthose used in asphalt for construction of roadways.Baker Petrolite's technology for the treatment ofasphalt reduces exposure to hydrogen sulphide

throughout the asphalt supply chain - from therefinery to the paving process."Working together with asphalt producers, BakerHughes can help them stay on track with theirhealth, safety and envronmental programmes, "notes Jerry Basconi, vice president of Baker.

TDW Offshore develops largest ever Smartplug isolation tool

New additives remove hydrogen sulphide

The new 12-ton 48-inch SmartPlug pipeline pressureisolation tool that TDW Offshore Services custom-designed for Nord Stream will facilitate pipelinemaintenance activities.

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

75Oil Review Africa Issue Two 2012

Tech

no

log

y

A NEW BAKER Hughes service identifies potentialdrilling issues before they occur by pinpointingsimilar case histories in real-time using a globallibrary of drilling practices and expert advice toprovide operators with suggestions on how torespond or take corrective actions while drilling.

Baker Hughes’ WellLink Radar Remote DrillingAdvisory Service is an integrated solution thatuses case-based reasoning and event detection. Itleverages Verdande Technology’s DrillEdgesoftware to reduce uncertainty, minimisenonproductive time (NPT) and increase safety. Theservice allows for the remote monitoring ofmultiple wells simultaneously and enhancesdrilling efficiency. This can reduce HSE risk bylimiting personnel on the rig.

Baker Hughes’ remote service engineers monitorreal-time drilling operations around the clock whilethe DrillEdge software looks for patterns based onsimilar situations where issues have occurred inpreviously drilled wells. When a similar situationoccurs, the software automatically recalls relevantcases from the Baker Hughes’ knowledge base ofexperience and best drilling practices. The engineersinvestigate, validate and determine the best courseof action. They then make recommendations toavoid potential drilling challenges. New cases canbe included in the knowledge base, allowing for thecontinuous enrichment of the service.

An independent operator successfully deployedthe WellLink Radar Remote Drilling Advisory Servicein an ultradeepwater well, within a previously

undrilled block of the Gulf of Mexico. The offsetwells on a nearby block had experienced pack-offs,stuck pipe, lost circulation and influx of water. Whiledrilling, the WellLink Radar Remote Drilling AdvisoryService identified multiple events including pack-offs, overpull, maxed-out torque, hard stringers,string stalls and changes in pore-pressure. Theseevents are known symptoms that could lead todrilling problems such as stuck pipe, twist-offs, lostcirculation and influx. Based on matches withprevious cases, the identification and validation ofthese potential events enhanced the riskassessment. By preventing these possible drillingproblems, the WellLink Radar Remote DrillingAdvisory Service potentially saved the operator anestimated US$2mn for each incident avoided.

New service to detect and diagnose drilling challenges before they occur

A DAMEN MODULAR Dock (DMD) 4020 is beingconstructed for - and will be delivered to -Djibouti. Djibouti’s busy port is one of the mostimportant gateways to the African continent andis strategically located at the confluence of theRed Sea and the Indian Ocean. Besidesmaintenance of the Port Authorities’ own fleet,the dock will be used for repair and maintenanceof port-calling vessels.The dock, that measures 50 x 20 m, is to beused for repair and maintenance of theAuthorities’ fleet, which consists of various supporting vessels suchas tugs, shoal busters and pilot vessels. The delivery of the DMD4020, currently under construction in Dubai, is scheduled for thesecond half of 2012. After testing in Dubai and delivery of the dock inDjibouti, a Damen Services team will stay on location for two years togive operational and technical support. Damen Services in theNetherlands will support the dock operations by supplying parts,equipment and expertise.

The practical and competitive dock can be builtworldwide and can be used in various types ofmarine circumstances. It can also be outfittedwith cranes, accommodation units, roller blocks,workshop units, sandblast curtains and dockmooring systems. In fact, with an ISO 14001certification, it lives up to the latest standards inenvironmental care. The design incorporatessuch features as low emission motors, LEDlighting and dedicated systems for wastemanagement and spills avoidance.

The secret lies in the simplicity of the construction, consisting of twowing walls that are coupled to a number of individual pontoons. MarcelKarsijns, Manager Special Projects, says: “Every unit measures 10 m.You can enlarge the dock to a length of 100 m whenever you choose.Modules and wing walls are coupled afloat. It’s equally simple to unlockthe components. You can upkeep and repair these modules in the dockitself, making the dock self-maintaining. In addition, the dockcontributes to the uptime and success of our customer’s fleet.”

Modular Dock for Djibouti from Damen

STORK TECHNICAL SERVICES, the leading globalprovider of knowledge-based asset integritymanagement services for the chemical, oil & gasand power sectors, has launched an industry-firsthot bolt clamp system that enables the saferemoval and replacement of corroded bolts on liveflanged connections that have eight bolts or less.The system has been extensively field-tested andwas successfully utilised by Stork operatives for arecent project on a Chevron North Sea Limitedoperated asset in the North Sea.Fraser Coull, operations support director for StorkTechnical Services, said: “Corroded andsubstandard bolts can seriously impact on anasset’s integrity and lead to hydrocarbon releases.Our innovative hot bolt clamp system provides asafe, efficient and cost-effective method ofrectifying this issue which can be deliveredoutwith a traditional shutdown period.”The system hydraulically clamps pressurised bolted

pipeline flanges together so that corroded studbolts can be safely removed without exertingadditional force to the gaskets. Once all of the boltshave been replaced, the hot bolt clamps are de-pressurised and removed. Change out of the bolts isachieved without taking the flanges out ofoperation, disruption to the standard line pressureor danger of hydrocarbon release.The hot bolt clamp system removes the potentiallytime consuming activity from planned orunplanned shutdown programmes; therebyreducing downtime and minimising personnelrequired on-board when bed space is at a premium.Most importantly, the clamp system improvesthe safety for offshore operatives and the assetas a whole by reducing the likelihood ofhydrocarbon releases which can have adevastating impact offshore.Coull continued: “We constantly strive to improvethe safety and quality of our service delivery

through innovation and the hot bolt clamp systemis an excellent example of this. The system willdeliver significant benefits to our customers andour recent project success with Chevron has led towider interest from across the industry.”

Industry’s first hot bolt clamp technology

Stork’s hot bolt clamp system enables the safe removaland replacement of corroded bolts on live flangedconnections that have eight bolts or less

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52


ANTECH LTD, A leading UK designengineering and manufacturing companyserving the upstream oil and gas industries,has significantly expanded its wellheadoutlet range. In addition, the entire rangeis now fully IECEx-certified. Since 2001, AnTech has been supplyingATEX-certified, single and dual conductorwellhead outlets. The wireline, completionsand coiled tubing drilling specialist hasrecently announced two new options: thetriple conductor and the fibre optic line. The wellhead outlet is used in permanentcompletions where pressure andtemperature must be continuouslymonitored. It connects the downhole cableto the surface telemetry system, and isattached to the wellhead to provide a safeconnection between the cables and sealagainst downhole pressure. Theconfiguration ensures that the integrity ofthe wellhead is maintained, even if thedownhole cable is flooded. Having developed a bespoke fibre opticwellhead outlet for a major servicecompany, AnTech is now making a systemavailable to the global market. It is workingon numerous enquiries to provide a fibreoptic alternative to operators and servicecompanies around the world. “We always aim to develop products that

arise from specific demands from themarketplace, and the fibre optic Wellhead

Outlet is no exception,” said Tim Mitchell,Sales Manager at AnTech. “Well before wecreated a custom-built system for ourcustomer, we had been receiving enquiriesfor a fibre optic option. We’re confidentthat the new system will be embraced bythe global market, just as our WellheadOutlet range has been during the past 10years,” he added.With the growth in multi-drop intelligentcompletions, there has been an increase inthe number of conductors required andpower requirements downhole. In responseAnTech has developed a new tripleconductor option to further enhance itsrange which features both single and dualconductor Wellhead Outlets. With itsinnovative connector and cablehead, thetriple conductor design offers simple andsafe connection, while retaining the sameconfiguration as AnTech’s existing outlets. With the introduction of the fibre optic andtriple conductor options, AnTech now offerssolutions for nearly every type of wellheadseal and downhole line. With single, dual,triple and fibre optic solutions available,AnTech aims to meet all customerrequirements and become the leadingprovider of ATEX- and IECEx-certifiedWellhead Outlets worldwide.

QUICKFLANGE, ONE OF the industry’s leading providers of high performancepipe connection systems, is to launch a series of fixed cost ‘taster kits’ designedto stimulate initial use of its own ‘cold’ pipe connection solution.

The new taster kits, which are being launched in the UK and theNetherlands and which will be priced based on each installed flange, will allowoperators to see the benefits of the Quickflange for themselves before makingany longer-term commitments. Furthermore, operators will also be safe in theknowledge that there will be no additional costs from open-ended mobilisationor if a particular job is delayed or moved. Such delays can be particularlyexpensive with additional costs relating to rental equipment and increasedpersonnel requirements.

The Quickflange pipe connection solution provides a fast, convenient, safeand highly cost effective piping solution equivalent in strength to a welded ormechanical connection. As it takes place within a ‘cold-solutions’ environment,the Quickflange solution doesn’t require heat sources in the same way thatwelding does.

“These taster kits are all about bringing our Quickflange solution to a wideroperator audience so they can see for themselves its undoubted benefits of costeffectiveness, flexibility and safety, while being secure in the knowledge thatthere will be no additional costs or surprises.” said Quickflange CEO, RuneHaddeland. He continued: “For smaller markets and potential customers, thisnew service will provide a reduction and simplification of commercial risk, highlyvisible and transparent pricing, and what we believe to be the most cost effectiveand flexible mechanical pipe connection solution on the market today.”

The taster kit is designed to provide coverage for pipe sizes of up to 8” indiameter and is limited to certain materials, such as carbon and stainless steel,

and CuNi/duplex. The kit consists of a number of common size Quickflanges,which are charged for on a ’use or return’ basis and shipped to the customer,with training on the configuration and use of the tool provided to a smallnumber of personnel.

For many piping managers and engineers, the prominent technology forinstalling flanges is that of welding. However concerns remain as to the speed,cost and resources required, as well as the safety implications due to the needto access heat sources and, on occasion, the need to shut down production.

The Quickflange solution is a safe, ’cold’ connection solution with theflange machined in such a way that it can slide onto the pipe itself without theuse of heat or other potential ignition sources. A hydraulic tool is then used toactivate the flange, allowing for a mechanically robust flange-to-pipeconnection within minutes.

The fact that the Quickflange is modified from a standard flange and is self-contained also means that it can be easily shipped and delivered within hours.With such a simple ‘cold-solution’ connection, existing personnel can also betrained up with no need for increased staffing.

Typical Quickflange applications include pipe work and new spool tie-ins;the replacement of existing flanges; fitting flanges in space restricted areas;replacing damaged or corroded piping; the insertion of valves; and theavoidance of welding in inaccessible areas.

The wellhead outlet has been re-engineered tooperate safely in the higher temperatures typicallygenerated by the majority of HPHT (High Pressure,High Temperature) wells.

Inn

ovati

on

s Quickflange launches fixed cost ‘taster kits’

Antech extends wellhead outlet range

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52


EENSURING EFFECTIVE SATELLITEcommunications for your oil rig does notcome cheap. But how much you actuallypay for your VSAT and use of satellite

networks depends on a number of factors — forexample, which of the available bands you use. Inone of Africa’s oil-producing regions, attenuationcaused by monsoon-like conditions could be aproblem for the Ku band and entirely rule out thehigher frequency Ka band — at least for now. Youmay therefore require a deployment in the C band,further down the spectrum, which has lesssusceptibility to rain fade.

If that is the case antenna kits may run up toUS$100,000 for a fully stabilised maritime antenna(a figure that doesn’t necessarily includeinstallation). Some oil and gas customers may thenhave to pay monthly usage bills of $40,000 per site.

There is another downside. Antenna diameter isinversely proportional to frequency. So asfrequency increases the antenna diameterdecreases. Given its portion of the electromagneticspectrum, this means that C band requires a wide— very wide — antenna. “You’ve got a 2.4 mantenna that has to be pointed continually at acertain part of the sky,” explains Simon Bull, seniorconsultant with specialised telecommunicationsconsultancy company COMSYS*. This meansspending money on stabilising a very big antennaand on protecting it from the elements with aneven bigger — up to 3.6 m — radome. Hence theprice tag. A similarly performing Ku band systemantenna kit costs up to $60,000, and monthly billsare less than a similarly provisioned C band system.However, C band’s reliability in difficult conditions,as is often the case offshore Angola and Nigeria,can still give it the edge.

No significant price drop soonAnd that is one reason that services won’t getsignificantly cheaper too soon. As Martin Jarrold,Chief of International Programme Development,GVF**, points out, VSATs in both the offshore andonshore O&G sector tend to be more expensive dueto their ruggedness, which is in turn due to theharsh conditions in which they must operate;offshore platforms, tankers and pipelines, not tomention remote land drilling locations, can beunforgiving places. The good news is that Ku bandunits are getting sturdier, have longer histories ofreliability, and offer more capabilities for singlechannel per carrier (SCPC) services (dedicatedsatellite bandwidth services popular in the oil andgas environment). “On the equipment side,” says

Jarrold, “the movement from 2.4m stabilisedmaritime VSATs [for C band services] to 1.2m oreven 0.6m stabilised maritime VSATs [for Ku bandservices], rather than specific equipmentefficiencies, is driving down costs.”

So C band won’t always have things its ownway. Nor, however, will VSATs. Market research andconsulting company Northern Sky Research (NSR)suggests a present-day oil and gas market roughlysplit 70 per cent/30 per cent between VSATs andMSS units (such as Inmarsat’s BGAN andFleetBroadband or Iridium’s OpenPort). As newdiscoveries occur near or above the Arctic Circle,NSR adds, MSS providers, specifically Iridium, whichhas the only true global coverage area, willexperience an uptake in usage until VSAT providersare able to overcome look-angle limitations in thenorthern latitudes.

Predicted revenues highNevertheless NSR projects that oil and gas VSAT

revenues will reach $742mn by the end of 2020.Most of these VSAT units will be used to enablelow data rate applications that are important inpipeline distribution networks. However, with thepush into deepwater, satellite communications willremain a critical piece of oil and gascommunications offshore. Ku band VSATs willprovide the bulk of operator revenues during theforecast period. That admittedly, is in part becauseof Ku’s large installed base in the onshore segment(servicing pipelines) but Ku is also slowly reachingthe global coverage of C band and, as we have seenin this series of articles, it has a growing reliabilityrecord on offshore E&P platforms.

As Jarrold has noted, the movement to Ku bandand the trend in pricing for that band whencompared to C band should eventually benefit VSATservices for oil and gas users. And there’s moregood news: NSR projects that newer technologiessuch as HTS (High Throughput Satellites) thatpromise a lower cost per bit and at least twice the

With the push into deepwater, satellite communications will remain acritical piece of oil and gas communications offshore.

VSATs in both the offshore and onshore O&G sector tend tobe more expensive due to their ruggedness, which is due to

the harsh conditions in which they must operate.

ICT

78

VSATs play an important role in many parts of oil and gas E&P, but on rigs they areessential. However, asks Vaughan O’Grady, how much can — and should — you expectto pay to keep in touch offshore?

Are you paying too much for your

satellite service?

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

THE 4TH SAUDI ARABIA INTERNATIONALOIL & GAS EXHIBITION

24-26 SEPTEMBER 2012DAMMAM, KINGDOM OF SAUDI ARABIA

WWW.SAOGE.ORG

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

throughput of current satellites, will commandseven per cent of total revenues by the end of2020. However, while HTS services promise lowercost per bit they operate in frequencies (often theKa band) that might cause reliability issues in theoffshore oil and gas environment. TDMAtechnology, popular in less critical satcomsapplications, is also slowly grabbing market shareand may push costs down, but SCPC links will stillbe present through to 2020 for customers whodemand more secure, dedicated, criticalcommunications.

But whatever efficiencies may be introduced,satcom costs will never come down to the level ofconventional communications so it’s no surprisethat some oilfield service companies and othersvisiting offshore might choose to lease suchservices. In fact NSR research indicates that this isbecoming more and more common. Jarroldexplains: “As the life cycle of products is becomingshorter and technological advances expected withHTS Ka band satellite grow near, more satelliteservice providers are offering leasing services to oiland gas clients as an upgrade path to moreadvanced equipment and services.” This isn’t thewhole story, however. Jarrold points out: “Due tomuch more rugged and solid equipment, for themaritime segments (offshore, service vessels andtankers) replacement cycles of antennas areextending the lifecycle of VSATs from five to sevenand sometimes ten years. This requires a carefulROI analysis from O&G end-users,” he adds.

Whatever the costs, oil companies can expecttheir satellite communications usage to grow — andnot just for the obvious reason that so much nowhappens offshore. As Bull points out, the experts whocan assess well logs, drilling conditions, seismicsurveys and other technical geological questions thatare now part of the growing mountain of importantdata available to oil companies, are hardly likely todo their assessment from a rig. “Those guys aregetting fewer and older,” he points out, “and theydon't want to go to a rig offshore Angola. They wantto sit at their desk in Houston or Aberdeen and studythe data. So this stuff has to be brought back”. That,and the sheer volume of data that can now beretrieved and assessed also means many moregigabytes of data consumed on a monthly basis. Onthe positive side, the money spent on bandwidthcould be partly offset by savings on transport,support and staffing costs.

Obviously the satellite market is never going tochallenge cellular and fibre. “The entire satellitebusiness is big: billions and billons of dollars,” saysBull. “But put it in the context of the wholetelecoms market, the whole IP market, and it’snothing.” And, as we learned in part one, thesatellite trunking market in Africa was all butobliterated by undersea cable. But the satellitebusiness will survive — and not just because the oiland gas industry will always need it. As Bull says,there are two truths that always need to beremembered. “One: as much satellite capacity asyou can ever build you will always be able to sell.

Two: you never know where you're going to sell it.There’s never going to be a situation where we'vegot tons of capacity and we can’t sell it. Whether itgoes on aircraft, trains, boats, rigs, land-baseddrilling rigs or RVs, it will get sold.”

So how much are West Africa’s oil rig ownerslikely to have to pay to guarantee communications?Well they’ll certainly want to negotiate onbandwidth and availability but, as Bull points out:“When you come down to it, rental of a rig is amillion dollars a day. So when you're spending$10,000 or $50,000 or $100,000 a month onmission-critical application it's inconsequential inthe scheme of things, frankly.” ■

Notes*COMSYS is a specialised telecommunicationsconsultancy company with a core expertise insatellite and VSAT systems. www.COMSYS.co.uk

**The Global VSAT Forum (GVF) is an association ofkey companies involved in the business ofdelivering advanced digital fixed satellite systemsand services to consumers, and commercial andgovernment enterprises worldwide. GVFacknowledges the contribution of Northern SkyResearch, the GVF Oil & Gas CommunicationsConference Series Content Partner, in the responsessupplied for this article. The 16th conference in theseries is planned for Luanda, Angola, in Q4 2012.

See www.gvf.org for more information.


ICT

80

EMERSON PROCESS MANAGEMENT has released Roxar RMS2012, the latest version of its reservoir modelling software. Thelaunch sees the continued expansion of Roxar RMS into thegeophysics domain through a completely integrated reservoirmodelling workflow which includes seismic interpretation,reservoir simulation, reservoir behaviour predictions, anduncertainty management.“With average global oil & gas recovery rates at just 22 percent, the smallest percentage improvements can have a hugeimpact on both future oil & gas production and the bottomline”, said Kjetil Fagervik, managing director of Emerson’sRoxar Software Solutions. “Accurate predictive reservoir models that can realisticallyrepresent the underlying seismic data and that can offer aseamless route from seismic to simulation are absolutelycentral to efforts to improve oil & gas recovery today. These arethe underlying goals behind Roxar RMS 2012.”The key new features of RMS 2012 include seismic inversion,seismic attributes, and field planning.

6 RMS Seismic Inversion allows geoscientists to use seismicdata to create a rock property model quickly and accuratelythrough increased automation.

6 RMS Seismic Attributes is a powerful new visualisationtoolkit which enables modellers to extract maximum valuefrom their seismic data.

6 The RMS Field Planning functionality enables modellers toquickly and accurately create multiple, optimal well plansfor their fields.

PII PIPELINE SOLUTIONS has introduced its PVI Lite software, the company’snewest addition to its family of PipeView™ Integrity software, a fullyintegrated software environment that enables pipeline operators to easilycontrol and use data, perform advanced risk assessment and establishintegrity management plans for their networks.

When dealing with inline inspection (ILI) data, operators face several keyissues to keep track of the volume of data generated, accurately compareone run to another and leverage ILI data to determine a pipeline’s fitness forservice. Currently, operators typically use spreadsheet-based solutions, whichare time consuming and prone to error, to perform these tasks.

The PVI Lite software provides the opportunity for real productivity gainsfor integrity teams by allowing operators to conduct consistent and accurateILI integrity evaluations—including fitness for purpose assessments—usingformulas based on proven industry best practices. This product is a “plug-and-play” solution that works directly from ILI files, with no data conversion,commissioning or implementation required.

Additionally, operators can use the PVI Lite software as a tool tocatalogue and organise ILI and other data associated with a pipeline network.Operators also can use the software to assess the significance of ILI-reportedfeatures on the immediate and future integrity of the pipeline. The PVI Litesoftware can be used with data from a variety of vendors, including PII. Mostimportantly, the tools found in the software are the same as those used byPII’s internal integrity engineers.

The new software has already been adopted by operators in NorthAmerica, Europe and Australia, particularly by those customers that need toconduct in-house integrity evaluations but do not want to invest in a GIS-based solution. The new product was developed to fill a gap in the marketbetween software provided with ILI reports and comprehensive datamanagement systems.

PVI Lite - newest member of PipeViewintegrity software

Roxar launches reservoir modelling solution

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

We are delighted to announce to our numerous Clients and the industry at large that Tolmann Allied Services Company Limited has achieved ATLAS approval as an invigilation centre for OPITO International Minimum Industry Safety Training (IMIST). IMIST is an OPITO standard which supports the global oil & gas industry to meet safety initiative targets. Tolmann has always been in the fore front of delivery of internationally accredited safety training.

• Basic Offshore safety Induction Emergency Training (BOSIET)• Helicopter Underwater Escape Techniques (HUET)• Survival at Sea (SAS)• Proficiency in survival Craft and Rescue Boats (PSCRB)• STCW 95

• Advance Fire Fighting• Confined Space Entry Training• Basic First Aid• Transportation of Dangerous Goods by Air & Sea• Helideck Team member Training

Our Services include:

Other courses available can be found on our website.

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

ROCKWELL AUTOMATION HAS extended thereach of its PlantPAx process automationsystem to integrate critical rotating assets,such as compressors, pumps, turbines and fans,giving users the ability to manage plant-wideoperations with a single platform. ThePlantPAx system combines the company’s coreprocess automation capabilities andtechnologies with those of partners andacquisitions to deliver an integrated controland information solution to customers.

Users can now tie intelligent motordevices into this unified-control architecture,making an immediate and measurable impacton asset availability, operational efficiencyand energy management. The tight integrationbetween process automation and motorcontrol is especially beneficial in heavyindustrial applications with considerablemechanical investments, such as mining,power, oil and gas, water/wastewater, andpulp and paper applications.

PlantPAx system users will have access todiagnostic information on any device in thesystem from any location – including motorcontrol centres, drives, compressors, pumps,fans and instrumentation. Leveraging the

EtherNet/IP network, engineers can monitorprocess conditions such as electric motorcurrent, vibration signatures of key rotatingassets and torque signatures of variable speeddrives. This allows plant engineers to predictpotential problems and help avoid equipmentdowntime – resulting in improved productivityand reduced maintenance costs.

Leveraging a single-network architectureto bring operational information from motorcontrol devices into the control system alsohelps engineers extend the life of theirmechanical assets and improve their overallconfiguration, operation and maintenanceexperience.

Unlike other distributed control systemsthat require users to manually map datafrom motor control devices to the controlsystem, the PlantPAx system mirrors thedevice memory, making data automaticallyavailable within the control system. Userscan also setup applications in the PlantPAxsystem to collect and archive performancedata from motor control devices intodatabases for analysis.

This convenient data acquisition providescost savings throughout the lifecycle of the

equipment. Furthermore, since EtherNet/IP isthe delivery mechanism for the PlantPAxsystem, users can avoid electrical hazards byaccessing information remotely, helpingpersonnel safely monitor, troubleshoot anddiagnose motor control centres and otherequipment. In addition to integrating motorcontrol devices into the control system, otherkey features with the PlantPAx system include:6 EtherNet/IP network support for redundant

systems and Device Level Ring (DLR)network topology that provides a highlyavailable EtherNet/IP network without anyadditional infrastructure costs.

6 Improved device integration and assetmanagement as drives, for example, arenow exposed via icons and faceplates in thevisualisation layer, and managed in theasset management layer to provide disasterrecovery, automatic backup and restore ofdrive configuration, and change auditing.

6 Accelerated design engineering with initialsizing and architecture design, the creationof reusable engineering and templateobjects, and engineering and deploymenttools for objects and diagnostics in thePlantPAx library.

Info

rmati

on

Tech

no

log

y

Rockwell Automation extends PlantPAx process automation system

Company ..........................PageAggreko Middle East Limited....39AME Trade Ltd. (AIOGACE 2012) ..............................69AME Trade Ltd. (MMEC 2012) ....67B.G. Technical Limited....................29Baker Hughes ....................................84Broron Oil and Gas Limited ........83CapRock..................................................9Century Energy Services Limited ..............................15Clariant Oil Services UK Ltd.........42Container World (Pty) Limited ......................................13Damagix Nigeria Limited ............34Elite International Careers Limited ................................51Emerson Process Management ....................................59Emval Nigeria Limited ..................77Eunisell Limited ................................38Exterran................................................35ExxonMobil Corp. ............................19Fortune Global Shipping and Logistics ......................................63Gil Automations ..............................11Global Oceon Nigeria....................47Golder Associates Africa ..............52Ibafon Oil Ltd. ....................................41

International Exhibition Services S.r.l. (SAOGE 2012) ........79Italgru S.r.l ............................................61Kohler Power Systems ..................28Magnetrol International N.V.......36Montgomery Libya ........................73Nadabo Energy Group..................45NHV Aviation ....................................21Oando PLC ............................................5Oil Country Tubular Ltd (OCTL)....................................................53PEM OFFSHORE................................17Portwest Clothing ..........................24Prakash Steelage Ltd. ....................55SGS Inspection Services Nigeria Ltd........................27Sky Vision Global Networks........49Sonils Angola ....................................33South Atlantic Petroleum ..............2Southey Tanzania ............................23Suraj Limited......................................31Tilone Subsea Ltd. ..........................25Tolmann Allied Services ..............81Topher Zhang Vocational Centre............................14Toprope................................................43United Grease & Lubricants Co LLC ..............................7Vandrezzer Energy Services ......64

Advertiser’s IndexI wish to subscribe toOil Review Africa

for 1 year (6 issues) starting with the next copy.Europe a 93, Kenya Ksh 2200, Nigeria N3500,

South Africa R228, United Kingdom £63, USA $124

Enclosed is my cheque/draft ❑ Please send us the invoice ❑Please debit my: Amex ❑ Visa ❑ Mastercard ❑

Card number: ooooooooooooooooExpiry date: oo/oo Security Code: ooo(Please note that we will debit your account in sterling).

Name..............................................................................................Position..........................................................

Organisation ..........................................................................................................................................................

Telephone............................................................Fax............................................................................................

Address.....................................................................................................................................................................

.......................................................................................................................................................................................

Country .........................................................................Signed............................................................................

Email: ................................................................................................Date.............................................................

Send this subscription form by airmail together with cheque payable to:Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place London, SW1W 0EX, UK

Subscription Form 2012

YOUR JOB TITLE/FUNCTION Corporate Management Government Municipal, Public Services

Executives General Management Technical Management Others, Please specify

......................................................................

YOUR BUSINESS Government/Public/Diplomatic Services Infrastructure Educational/Research Institutes

Industry/Manufacturing Commercial Services Import/Export Agents, Distributors Commercial Transport Oil & Gas: Exploration, Dirlling and

Production Oil & Gas: Downstream Processing Oil & Gas: Other, Please specify

............................................................................

Others, Please specify............................................................................

01

02

03

04

05

54

03

02

01

Subscription order can also be placed via the web: www.alaincharles.com or email at [email protected]

64

04

06

16

08

10

74

S14 ORA 2 2012 IT_Layout 1 12/04/2012 17:36

S14 ORA 2 2012 IT_Layout 1 12/04/2012 16:52

S14 ORA 2 2012 IT_Layout 1 12/04/2012 17:02

Oi Review Africa 2012 issue 2

Documents

Transcript of Oi Review Africa 2012 issue 2