"The effective management of critical rotating equipment is a major challenge faced by all oil & gas operators, no matter where their facilities may be."
Allister Langlands
Chief Executive
The world's second largest continent is revealing new reserves of hydrocarbons, providing unparalleled opportunities for developing nations and their infrastructure.
The topsides and jacket for the Hess Elon shallow water platform, located offshore Equatorial Guinea, were designed by Mustang.
As the ancient Roman scholar, Pliny the Elder famously commented, "There is always something new out of Africa."
Indeed there is, with oil reserves being uncovered in several areas of the continent not previously noted for hydrocarbons. One-third of the world's new oil finds since 2000 have been made in Africa, and the lack of exploration in most parts of the continent has provided the exciting prospect that there may be much more yet to be found.
Some African nations, notably Algeria and Nigeria, have been long-term players in the hydrocarbons business. But the major players are continuing to evolve: in 2008, Angola overtook Nigeria as the continent's largest oil producer, pumping some 1.9 million barrels per day (bpd).
It is against this background that Wood Group is increasingly involved in Africa.
One new area of interest is Uganda: "We've been doing some studies for projects there and the next phase will be front-end engineering design (FEED) for a pipeline project for one of our clients," explains Steve Wayman, CEO of Wood Group Kenny, which has significant experience in oil industry engineering design and project management on the continent. "Uganda is very keen to commercially produce its reserves."
In Tunisia, Wood Group Kenny has spent two years working for BG Group on pipeline design and project management on the Hasdrubal onshore gas production facility. "It's a substantial reserve," says Steve, "We're delighted to be on the ground in this part of Africa."
The market for Tunisia's gas is Southern Europe, as is that from neighbouring Algeria where the GALSI project – Gas from Algeria via Sardinia to Italy – will involve construction of three pipelines through rugged seabed conditions.
"We've completed FEED for GALSI and hope to be involved in the execution of the project. They will be very big contracts and the authorities will decide on them sometime this year."
Nigeria is probably the best-known sub-Saharan oil nation and Wood Group Kenny has had a team working as partners of Nigeria's Dover Engineering on FEED for Total's development of the deepwater Egina Field, whose estimated reserves of 550 million barrels of light crude are due to start flowing in 2013.
To ensure its long-term future in Nigeria it's vital, says Steve, that Wood Group Kenny ensures local personnel and materials are used as fully as possible: "We want to build a strong local business with local people, utilising local materials. Not only will this build us the best long-term presence, it will also help to ensure we meet government requirements."
The new jewel in Africa's crown is Angola. "It's a massive market with a lot of growth potential.
"We're in the execution phase of the PSVM (Plutao, Saturno, Venus and Marte)
development in Block 31. We are working in an integrated team with BP, where they order the equipment based on our jointly developed designs and specifications."
Block 31 is an ultra-deepwater site 100km (62 miles) offshore, where the seabed is 1,750 metres (5,740 feet) down.
Fortunately, weather conditions are generally benign, explains Steve. "But there are other issues, such as the remoteness of the site and the continuing development of the infrastructure, although Angola is building a lot in connection with onshore fabrication."
Angola is also the location of several contracts handled by ODL, particularly with operator Angola LNG. These include the creation of electronic operating manuals, sourcing spare parts for the LNG plant and conducting reliability centred maintenance.
One of these activities involves critical assessment of equipment. "Based on design, we rank all their equipment on its likelihood of failure and the consequences of such a failure," explains Tim Biernacki, ODL's operations director. "We then make recommendations and offer solutions, if required."
ODL is also supporting BP Angola with a database project: "We standardize and populate information in their database such as vendors, parts manufacturers or engineering data," he continues.
Tim also points to ongoing support contracts for the West African Pipeline Company, which is building a gas pipeline from Nigeria west through Benin and Togo to Ghana. Glen Makinson, senior manager with Wood Group Production Services, is the manager responsible for the Ghanaian project. "It's a 700km (434 miles) offshore pipeline that originates just outside Lagos and is connected to Benin and Togo before it reaches Ghana.
"For 18 months we've been training more than 70 staff from the four countries to be operators of the pipeline. They will be undertaking maintenance, pipeline operation, taking measurements and metering."
The Tombua–Landana compliant piled tower, shown here during installation offshore Angola, was designed by Mustang and selected by Offshore Magazine as a Project of the Year.
"The fact that many of Africa's oilfields are either offshore or in coastal locations helps offset the continent's challenges with infrastructure," says Jim Johnson, vice-president international operations of Wood Group Production Services, which provides manpower to help maintain facilities. Supplies can be brought in by sea, while oil and gas can be exported without having to tackle some of the unsurfaced rural roads.
Challenges include the risk of malaria in West Africa. Wood Group is proactive in managing the disease's impact on staff, says Rod Prinsep, president of Wood Group Production Services.
"A member of the Corporate Alliance on Malaria in Africa, Wood Group is working together with nongovernmental organisations, inter-parliamentary groups, new donors and charitable foundations to fight against malaria in Africa using our strong technological and managerial skills to enhance the implementation of advocacy programmes. We also donate US$25,000 each year to CAMA."
In Chad, Wood Group is five years into a 10-year performance-based contract with Esso Exploration and Production Chad Inc. (EEPCI) at its Kome facility. The Group oversees the maintenance- and performance-based programme of submersible pumps and progressive cavity pumps. Across six fields, Wood Group has so far designed, installed and maintained pumps for more than 500 wells.
And in one of Africa's smallest states, Equatorial Guinea, Wood Group Production Services is providing several hundred personnel for four contracts with some of the oil industry's major players, handling work for offshore platforms and FPSOs. They have an inspection contract with BP for Angola Block 18, and have substantial operations involving Shell in Nigeria and Conoco in Algeria. Also in Equatorial Guinea, Mustang has been selected by Noble Energy to provide the FEED for the Belinda Project in the offshore Block 'O' area.
Last year, Mustang participated in three of five projects specifically selected by Offshore Magazine as their Projects of the Year. One of the projects was the Tombua-Landana compliant piled tower (CPT), operating in approximately 1,200ft (366 metres) of deepwater in block 14 offshore Angola.
The Tombua-Landana platform is a substantial 35,300 short tons (operating weight). It holds accommodation for 120 people and is supported by the 56,400 short ton CPT, securely fastened to the seafloor by 12 massive foundation piles. The platform, thanks to the CPT, plays host to one of the tallest manmade structures in the world.
Mustang designed the critical tower portion for both Tombua-Landana and Benguela-Belize, the only other CPT operating outside the U.S. Gulf of Mexico.
Mike Farley, general manager of Angola, is in on the ground floor representing both Mustang and J P Kenny. He is deeply involved in getting an entity established and registered so they can offer their services locally in the African nation.
"I've been in Luanda since January of this year. ExxonMobil, Chevron, BP, TOTAL and the state-owned oil company Sonangol – all significant clients of ours – are here and very active. New discoveries in ever deeper water are continuously being announced."
Mike's colleague, Gary Neal, describes the last five to seven years in Angola as a major re-birth of the country. "Since the end of a 27-year civil war, it has been nothing short of amazing to see the growth in infrastructure and rebuilding that has occurred."
Deepwater
As the world's more easily accessible offshore hydrocarbon deposits have already been discovered, the oil & gas industry is exploring more inaccessible locations in its search for commercially viable reserves.
Indeed, technological advancements and a rising value of hydrocarbons mean more inaccessible reserves are becoming more economic to develop and deepwater and ultra-deepwater operations are becoming more prevalent.
Deepwater is defined as water depths between 500 and 1,499 metres (1,640ft and 4197ft)
Ultra-deepwater is defined as water depths of 1,500 metres (4921ft) and more.