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Eastern Africa Oil & Gas HVO Overview
Phil Haymes Subsea Expo, February 2014
Mozambique, Tanzania and Kenya
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East Africa, a region of great potential More hydrocarbons have been discovered in East Africa in the past few years than anywhere else in the World…
World-class offshore discoveries in Mozambique and Tanzania • Mozambique: Up to 180 Tcf of estimated natural gas in place • Tanzania: 46.5 Tcf of estimated recoverable natural gas
Significant onshore discoveries in Uganda and Kenya • Uganda: Proven reserves of 3.5Bn barrels with 1.2 – 1.6 billion recoverable
• Kenya: About 1 Billion recoverable barrels of oil have so far been announced, estimated to be much higher by the end of 2014. Some Gas shows but not in sufficient quantities to warrant development, Exploration offshore Kenya stepped up in 2014.
East Africa Region: an advantaged geographic location
Source: www.mzlng.com
The region is geographically well positioned to export LNG, oil and other petrochemical products to the Asian markets, especially Pakistan and India, but also China, Taiwan, Thailand, Korea and Japan.
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East Africa - Main operators
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Mozambique
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Mozambique – Main Opportunities 2014
• EPC for the LNG onshore development opportunities for equipment manufacturers and subcontractors
2014 • EPC for the offshore development awarded opportunities for equipment
manufacturers and subcontractors
2014 • Education and Skills Development of Training Centres and Partnership
Programmes with local Universities / TVET institutions
2015 • Infrastructure development Supply Base, LNG Export Terminal, Airports, Power
Plants
2016 • Onshore gas distribution networks (North – South pipeline project)
2019 • Operation & Maintenance of the LNG Plant; Facilities Management • Gas Monetization project other than LNG (Methanol, Gas to Liquids, Fertilizers, etc.)
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Anadarko – FEEDs awarding ONSHORE LNG PLANT
OFFSHORE INSTALLATIONS
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Current Opportunities with : • Subsea equipment: large bore valves, flow meters, umbilical's, Christmas trees… • Sea Floor Coring services • Accommodation camps / Catering services • Engineering consulting services • Electrical services and materials, (generators, consumables, cables and assistance). • Geotechnical services • LIDAR services (Light Detection and Ranging) • Chemical supply • Steel Fabrication and Welding services • Training • Sandblasting/Painting/Coating Services • Crew Transport • Marine services – Long term LNG bay support vessels, crewing and maintenance
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Tanzania
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Tanzania – Main Opportunities
2014 • EPC for the LNG onshore development – opportunities for EPC contractors,
equipment manufacturers and sub contractors.
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• Infrastructure development – Freezone for Oil Field Supply in Mtwara, Power Plants, pipelines, expansion and development of airports, enhancement of the road infrastructure within the country and accessibility to/from Mtwara.
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• Education and Skills – development of training centres, collaboration with UK universities and technical and vocational institutions. Local content policy formation.
2016 • LNG Plant, Onshore gas distribution networks
2020 • Operation & Maintenance of the LNG Plant. • Gas monetisation project other than LNG (Fertilisers, Methanol, etc)
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Kenya
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Kenya – Main Opportunities 2014/15
• LNG Re-gasification Plant and Import Facility in Mombasa. FEED awarded and completed. Project set to be operational by 2017, ideally tender to be out anytime now.
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• Infrastructure development – LAPSSET project presents opportunities in Pipelines, Road, Rail, Airports, Storage Terminals, Berths. Some of the elements have already started. Opportunities in subcontracted work, Financing and PPP.
2014 • Education and Skills – Big shortage of skilled O&G workforce. • Opportunity to partner with local institutions/ local operators to establish an Oil &
Gas Centre of Excellence. UK universities and technical and vocational institutions can partner for capacity building in line with Local content obligations.
2014/15
• Upstream - Competitive bidding for 7 new exploration blocks formed from relinquishment obligations i.e. Both Onshore and Offshore.
• Partnering with the National Oil Corporation (NOC) in its upstream activities and carrying out MultiClient Geochemical Surveys.
2014 • Partnering with NOC in its upstream exploration ventures.
East Africa Challenges
• Poor Infrastructure • Lack of Skilled Labour Force • Irregular Power Supply • Bureaucracy/Legal framework Corruption/Political
Interference • Institutional capacity
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Summary • More hydrocarbons discovered in last 2 years than
anywhere else in the World • Early days; timing right to influence decision makers • FEED & EPCM contracts are the commercial focus • UK expertise is valued • Many challenges: Infrastructure, skills… • Competition very active
UKTI Contacts Tanzania: [email protected]
Mozambique: [email protected]
Kenya: [email protected]
Business Specialist: [email protected]
Regional Coordinator: [email protected]
Head of Oil & Gas: [email protected]
