10.10 UNDERWATER INTERVENTION

Background

The Committee is aware that the Offshore Oil and Gas industry is a specialized industry and it is true to say therefore, that both planned and unplanned underwater service interventions in this industry are regarded as highly specialized.

The international Contractors servicing this need internationally are not averse to taking great commercial and sometimes physical risk, for higher rewards.

The services they provide fall under the following main contract groupings, often on a fully integrated basis:

  • Provision of specialist offshore Dynamically Positioned (DP) vessels or Barges, or Anchored vessels/Barges and associated Marine crew, on a lump sum fixed-price or day rate basis.
  • Provision of other specialist support equipment on a lump sum fixed-price or day rate basis, including, but not limited to, Hyperbaric Pipeline Welding spreads, Inspection equipment, HP Jetting-equipment, Inspection/NDE equipment, Grouting equipment, Oxy-arc cutting equipment, leak-detection equipment, and bolt-tensioning equipment. All complemented by suitably trained/qualified and experienced offshore support personnel.
  • Provision of "Saturation" deep Diving services down to 1,000 FSW utilizing suitably certificated offshore personnel, on a lump sum or day rate basis.
  • Provision of shallow “Air” Diving services down to 164 FSW utilizing suitably certificated offshore personnel, on a “lump sum” or day rate basis.
  • Provision of Inspection and work-class Remote Operated vehicles (ROV’S) with associated ROV tooling packages and/or Survey equipment and certificated offshore Pilot’s/technicians/Survey personnel.
  • Provision of back-up Underwater Engineering, Construction/Installation Engineering services; multi-discipline Engineers are engaged with proven experience/expertise in Sub-Sea operations.

Providers of the above services tend to be larger companies as the Capex required for the various items of Marine hardware and other items of equipment can be extremely high. For example, a basic “Saturation” Deep Diving system would cost in excess of US$1.5million with the requisite in-date certification. The starting price of an Inspection ROV system would be in the region of US$60,000 rising to about US$ 650,000 for a basic, deepwater work-class vehicle.

The ROV tooling packages which are needed for use with the expensive ROV Manipulators of differing specifications are an expensive addition to this entry vehicle price, together with its associated handling system and control module.

Inspection ROV

Therefore, generally speaking, the opportunities which would be potentially open to local companies regarding the West African Oil & Gas marketplace would be in the provision of Air Diving and Inspection ROV services, only, where the Capex on the equipment is to be found at more reasonable level’s.

The potential client base is both conservative, and rightly, extremely concerned about Diving and other personnel safety issues. They require extensive and comprehensive documentation in terms of Safety/QA, and detailed Diving/Emergency procedures.

It is prohibited to use SCUBA diving equipment in the Oilfield. Even an Oilfield specification for Air Diving deployment systems, Helmets, Umbilicals, Communication systems and support DDC’s can be expensive for a smaller, local Diving company.

Deepwater ROV

The major opportunities which exist are for the suitably qualified/certificated personnel to be hired as individuals, on day-rate by the major contractors overseas for their services.

South African Diving personnel are generally in the main, well regarded in the industry, and are perceived to be hard-working, working in unison with their international counterparts.

Personnel Requirements

Diving

With the exception of the USA marketplace, the main qualification for all Diving personnel engaged in Oil & Gas operations is the UK HSE Diving certificate Part I (being Air) or Part II (Part II being mixed-gas) or a Norwegian Bell Diving certificate (mixed gas) all coupled in an in-date Diving medical, issued by an approved UK HSE Diving Doctor, of which there are a number nominated worldwide.

Diving supervisory, Life-support and technical personnel also have certification issued by UK IMCA in conjunction with the UK HSE/Norwegian legislation.

It should be noted that Naval Diving and/or the various PADII/NAUI, SCUBA Diving qualifications are not acceptable in the Oilfield.

Most OILCO operators of offshore installations/pipelines insist on HSE qualified personnel for all activities outside of USA waters in their contracts with Main contractors and nominated sub-contractors alike i.e. they pass this specific requirement down the line.

Moreover, it has been experienced that the underwriters, whom provide EL/PL liability for the various contractors, also require UK HSE certificated personnel.

All Diving personnel keep detailed Log-books counter-stamped by their employer of the day, for scrutiny on request.

ROV Operators

ROV Pilots/Technicians should have a recognized qualification in Electronics’/Electrical Engineering, and/or Survey. They normally have to demonstrate a proven track-record in ROV operations and nominate specific class/types of vehicle. Most contractors require a detailed log-book to be kept at all times by all ROV personnel.

Many ROV personnel attend various courses/refreshers or otherwise, as the technology is changing, and in some instances, becoming more complex and sophisticated. Such courses are conducted in-house or in conjunction with the ROV manufacturer.

Trials are often conducted to prove ROV tooling packages developed for use in deepwater field development/IRM.

The ROV industry is a multi-million dollar industry, as clearly, many of the new field developments are being engineered/installed in deepwater, whereby the water-depth is way beyond the maximum Diving intervention limitation which stands at about 1,000 FSW.

It should be considered that almost the entire new field developments planned for West Africa are in deepwater, beyond Diver depth.

However, many of the older existing production facilities/pipelines are within Air/Sat Diving depth, so there is a continued potential market for IRM on these offshore fields for contractors with the requisite track-record, resources and Marine hardware/specialized equipment available to hand.

Finally, all offshore personnel require an “in-date” offshore Fire-fighting/Survival certificate issued by a recognized institution (which includes inversion in water from a downed Helicopter)

Outlook for the Western Cape

In broad terms, the facilities and infrastructure offered by Cape Town and the Cape Town Port are attractive to contractors in the international Sub-Sea business, with the exception of five factors:

  • Lack of a cost-effective supply of Helium Gas, with availability of it’s associated Tube/Quad storage packs.(the Helium business worldwide is controlled by a small select group of major international Gas companies)
  • Lack of credible, cost effective Technical and Electronics Engineering back-up and expertise locally, to service a very conservative Survey, ROV/ROV tooling industry with complex vested interests set up on a global basis.

ROV components tend to serviced and maintained under the umbrella of their respective manufacturers.

  • Lack of a reliable, cost-effective local supply of some of the more exotic Steels used in the Sub-Sea industry like 225mm plate, X60/X65 grade pipe, Monel, and some of the higher grades of stainless steel.

There would be some serious supply opportunities for ISCOR and Columbus Steel to supply such material into the West African marketplace which is currently supplied from Europe, USA, or Brazil.

  • Lack of frequent air-cargo routings via a potential Cape Town Hub which competitively springboards into all the various West African countries engaged in Oil and Gas production.

This aspect needs to be seriously addressed by SAA, Air-cargo division.

  • Lack of specialist Diving Doctors with a proven background and experience in serious hyperbaric incidents & medicine.

As previously stated, the Capex required to enter this business is quite high.

Real opportunities do exist however, for qualified and suitably certificated personnel to hire their personal services to the various contractors operating in West Africa.

Further opportunities may exist to develop Saldanha into a pipeline load-out and/or Sub Sea hardware fabrication facility. This prospect should be further refined by the Committee and more interest generated in this regard.

The various Underwater Engineering & installation contractors (Diving, Marine, and ROV) would find an Oil Service center in the Western Cape of interest, as they too; experience the significant increasing costs to support their activities out of Angola, Gabon, Cameroon, Equatorial Guinea, and Nigeria.

Notwithstanding the long distances, in terms of steaming time and associated costs to the said places, Cape Town, is, for all the reasons we have canvassed, and are all well aware of, must be the place to have a company presence, in some form.

We are confident that one or more of the major contractors engaged in Sub-Sea activity in West Africa, would enter into a lease at an Oil- base here as discussed by our committee, at reasonable rates, with reasonable terms and conditions.

Our objective should be to entice one or even two anchor-tenants at preferred rates, then other leading companies engaged in the Oil and Gas industry should follow.

The various Oil and Gas contractors tend to congregate and co-exist together in the same places, in selected countries worldwide;

By way of example, Oil and Gas bases are to be found in the following Hub’s for the respective region concerned:

Sharjah, Mumbai, Hong Kong, Singapore, Miri, Vung Tau, Jakarta, Lafayette, Halifax, Aberdeen, Peterhead, Stavanger, Perth, Port Harcourt, Port Gentil, and Luanda.

Action for Final Report

  • Determine whether Underwater Intervention has a role in a hub in the Western Cape
  • Determine whether technical and electronics engineering can be sourced in the Western Cape
  • Determine whether suitable UK HSE approved diving doctors are available in the Western Cape, and list.
  • Determine a cost effective supply of Helium Gas for the Western Cape, with the appropriate support equipment (Tubes/Quad-packs/Pumps)
  • Canvas operators in this industry to determine if they would be prepared to establish a facility in the Western Cape.

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