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Research PREVIEW for
ICT Spend in the South African Oil & Gas Sector
Rising ICT Spend as the South African Oil &
Gas Sector Looks to Optimise Operations
Key Highlights
• Information and communication technologies (ICT) aids in and facilitates the ongoing
transformation of the South African oil and gas sector.
• With developments in technology, trends such as big data allow organisations to use
predictive analytics to gain a comprehensive understanding of structured and
unstructured data collected.
• Growing technologies such as cloud services, mobility, and customised applications
have helped organisations facilitate remote access to systems and distant capabilities
in upstream and downstream operations.
• Oil and gas companies must take advantage of the new ICT innovations available to
meet their business challenges and to gain competitive advantage.
• In order to compete effectively, ICT service providers will need to improve their
understanding of the industry-specific trends and ICT requirements over time.
South Africa’s Oil and Gas Sector at a Glance
• Total GDP: $327.1 billion
• Oil and gas sector: 1.9%,
or $23.6 billion, of overall
GDP
• ICT spend by the oil and
gas sector: $44.3 million
ICT in Oil and Gas:
Macroeconomic Trends,
South Africa, 2014
Oil and Gas Sector in South Africa
• A major economy in the Sub-Saharan Africa
region, South Africa’s oil and gas sector is built on
a legacy of developments in the Western Cape
region.
• South Africa does not have substantial upstream
fields, but is well positioned to facilitate upstream
logistics and oil and gas distribution services to
other regions of Africa. The Western Cape
Province has been contributing to a majority of
onshore facilities and offshore platforms for
material and equipment services.
• The developed infrastructure in South Africa is one of the key factors
underpinning the well-established midstream and downstream
activities. In fact, South Africa’s midstream and downstream value
chain has a combination of domestic and global participants in
distribution and logistics services.
• South Africa’s well-developed infrastructure and stable geopolitical
conditions create a unique advantage in forming a central hub for oil
and gas companies in Sub-Saharan Africa.
4
Overview of the Oil and Gas Value Chain
The sector is increasingly integrating emerging technologies and innovations to improve
operation and financial efficiency.
Key Takeaway: Oil and gas as well as value chain participants are looking to improve the
efficiency of exploration, production, and refining to optimise their operations.
Upstream Midstream Downstream
• Processing and
treating oil and gas to
be sent to markets
• Transporting oil and
gas to refineries
• Distributing and
marketing oil and gas
products
• Selling oil and gas to
consumers
• Exploring new oil and
gas resources
• Bringing oil and gas
to the surface using
natural and artificial
methods
5
Overview of ICT in the Oil and Gas Sector
Oil and Gas
Exploration
Production
Transport or Processing
Refining or Transport
Marketing
Machine to machine (M2M) communications, Big Data, ubiquitous collaboration, as well as network and
infrastructure security are among the main sector trends shaping the growing ICT investments made by oil
and gas companies, both globally and in South Africa.
Big Data
M2M Communications
Anytime, Anywhere Collaboration
Network and Infrastructure
Security
6
ICT in the Oil and Gas Value Chain—Key Takeaways
Big Data
Big Data is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications.
M2M Communications
M2M communication involves digital communication between an endpoint and an enterprise's backend system over cellular and/or satellite networks.
Anytime, Anywhere Collaboration
In this business environment, communications—both real-time and non-real time—are integrated to optimise business processes and increase productivity.
Network and Infrastructure
Security
New approaches are vital to the protection of both network and physical infrastructure, including identity and access management policies.
7
Overview of Enterprise ICT Spend by Sector
5-y
ea
r G
row
th F
ore
ca
st
Magnitude of ICT Spending
• Agriculture
• Construction
• Energy and
utilities
• Manufacturing
• Mining
• Transport and logistics
+ Financial
services
+ Public
sector
Oil and Gas
+ Retail
+ Healthcare
Key Takeaway: Overall ICT spend by large enterprises across all industries in South Africa was
$5.0 billion in 2014 and is expected to grow at a CAGR of 2.6% reaching $5.7 billion by 2019.
ICT in Oil and Gas: Enterprise ICT Spend by Sector, South Africa, 2014
Low
High
High
The Full Analysis Features the Following Content
Section Slide Numbers
Executive Summary 3
Research Overview 5
Market Definitions 10
Overview of the Oil and Gas Sector 13
ICT in the Oil and Gas Sector 17
ICT Spend in the Oil and Gas Sector 21
Drivers and Restraints 26
The Last Word 31
Appendix 33
The Frost & Sullivan Story 37
Key Questions the Analysis Answers
What is the current spend on ICT in the South African oil and gas industry?
What main ICT categories are oil and gas companies spending on?
How is this spend expected to evolve over the next five years?
What technologies are shaping the current and future investment in ICT?
Which oil and gas sector needs are driving the majority of the investment?
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Research Authors
Lehlohonolo Mokenela
Research Analyst
Information & Communication
Technologies
http://za.linkedin.com/pub/lehloh
onolo-mokenela/41/269/30
Samantha James Corporate Communications – Africa
(+27) 21 680 3574
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