The Target Market
Fabrication and Construction of Offshore Structures
Fabrication and Assembly Locations
Steel Supply
Skills Training
Certification, Classification and Verification
Engineering Services
Project Management
Underwater Intervention
Impact on NPA (Needs Analysis)
Preliminary Investment Budget for NPA
Recommended actions for NPA
World Market
Marketing information on the Offshore Oil & Gas industry is a deciding factor in
determining the potential size of business that can be secured by the Western Cape
and the scale of new investment in port facilities and general industry. Without
reliable marketing information it is very difficult to accurately predict the implications
on NPA. To this effect, a target market has been listed to give some indication on the
requirements of NPA.
It must be appreciated that the market for NPA is substantial and sustainable without
any Offshore Oil & Gas work. This is the story of the egg or the chicken – what
comes first. If we don’t have the facilities, Clients won’t entrust their expensive assets
to our facilities. Should NPA invest a minimal amount as listed in the Investment
Section, this investment would be at risk. The diagram below (although hypothetical)
indicates the scope of the world market. It demonstrates the likelihood of attracting
these clients to our shores to use our facilities with a minimal spend.
Market Description
In order to be able to assess the needs required from industry to support the
activities of NPA to create a hub for Offshore Oil and Gas in the Western Cape,
certain assumptions have to be made as to the market it would be servicing. As a
result, certain parameters must be established from real live projects that can be
used as a test case in the report for Fabrication and Construction discussions.
The opinion of the Sub-Committee for Fabrication and Construction has concentrated
its efforts on the following market description which could be attainable by fabricators
and constructors in the Western Cape and South Africa as a whole.
The Project should be in a benign environment for fixed structures
The water depth can vary from 10 metres to 150 metres for fixed structures
From 150 metres onwards TLP’s (style as envisaged by Forest Oil)
That standard processing of oil and gas/condensate will occur on the
The wet quayside modifications to a FPSO
The dry quayside medications or conversions to a FPSO.
These are the parameters that have been established for an envelope in the market
for the Western Cape.
Potential Projects for the Western Cape
The Fabrication and Construction Sub-Committee has identified the following nearterm projects for the Western Cape. These are:
Forest Oil’s TLP on the Ibhubesi Gas Field. This development will be in 280
metres of water, which will consist of one processing TLP and two satellite TLP’s.
The value of this project is in the region of $190m. The time horizon for this
project is 2004. A generic EIA study has been conducted with the results having
been finalised in May 2003. A drilling campaign is presently underway and all
drilling should be complete by December 2003. The nature of the project is per
Appendix "Ibhubesi EIA Project Description"
Artist’s impression of the Ibhubesi Development
A hypothetical potential project to establish a development in West Africa. The
water depth is approximately 40 metres and will consist of thirty three structures
(a combination of jackets and tripods) with topsides. This development will
consist of a Central Processing Platform, an Accommodation Platform and three
Wellhead Platforms. The time horizon date for development is assumed to be in
2004. The estimate for this project is between US$300million to US$400million.
From research that has been done on FPSO’s, it is predicted that 34 FPSO’S will
be required on the West Coast of Africa from 2003 to 2007. This would represent
an investment value of US$ 12 billion over this period.
The Western Cape can presently handle "modifications" to FPSO's but
"conversions" will require a graving dock. This is a market that the Western Cape
has to address.
On the basis of the above prospects for the ports of Cape Town and Saldanha, the
rest of the interim report will be discussed on the basis of this envelope.
Actions for Final report
A reliable marketing assessment must be undertaken on prospects in the
Offshore Oil & Gas industry. Once this assessment has been undertaken, the
probability of attracting this business to the Western Cape that gives a level
confidence to NPA must be workshopped by the Committee.