Total lifecycle solutions for oil, gas and chemical sectors

Online since 31.08.2016 • Filed under Industry news • From Issue 4 - September 2016 - February 2017 page(s) 58-59
Total lifecycle solutions for oil, gas and chemical sectors

Clients in the oil, gas and chemicals sectors are on the lookout for smarter, more efficient ways to produce, process and deliver products to market, as well as for assistance with environmental and sustainability considerations. AECOM is able to offer comprehensive services to these sectors over the entire lifecycle. 

While AECOM has a strong presence in Africa, it is also one of the largest multinationals in the world, enjoying strong relationships with most of the major oil and gas companies. ‘As a company, we have a very good understanding of the industry and its role players. Thanks to AECOM’s size and diverse nature, we are one of a few companies that can offer a total solution,’ comments Africa Oil and Gas Business Line Leader, Samuel Du Rand.

‘AECOM believes a strong local industry that delivers services from within each country is essential to sustained success. It is this understanding that will allow us to add great value to the development of the industry on the continent,’ he adds. He points out that the biggest factors currently impacting the industry are the oil and gas price, as well as technological development and the costs associated with alternative energy sources. This includes the development of large global unconventional resources such as shale gas, which will impact the long-term development of new reserves. Global oil and gas dynamics, including the shifting political landscape within the oil-rich regions of the Middle East and other areas will also have a major impact. Du Rand predicts that there is likely to be an increased focus on previously untapped and unexplored reserves in Africa, especially southern and eastern Africa. Major oil and gas companies will look to expand their reserves in Africa as an alternative supply to the known markets of the Middle East and Russia. In turn, this will enhance trade and investment on the continent. ‘Inter-country infrastructure such as pipelines between Uganda and Kenya or Tanzania, Mozambique and South Africa, for example, are typically very large investments. However, these are game changers in terms of development and macro-economic growth. Unfortunately, in Africa as well as many other parts of the world, the discovery of hydrocarbon reserves has come with conflict.’ With this in mind, developing and implementing legislation and regulations at an early enough stage to adequately address the interests of African countries, local residents and international oil companies is essential for the success of the industry. Du Rand points to numerous global instances of the success of this approach. ‘Norway is often used as an example of a country where wealth obtained from reserves was well-managed. Unfortunately, the development of regulations and preparing for development itself can also lead to long delays in decision making that often hampers the feasibility of projects.’ Looking at oil-and-gas opportunities in Africa, Du Rand stresses that major discoveries in countries such as Mozambique, Tanzania, Kenya and Uganda have generated a lot of excitement and interest in the region. ‘The development of new reserves has been slow, while the lack of enabling infrastructure such as roads, airports and ports requires a lot of time and major investment to be resolved,’ he argues. ‘However, regulatory requirements are being addressed, with Mozambique, for example, being close to ready for development. Unfortunately, the low oil price is stalling many developments at the moment. It will also be interesting to see how international oil companies will decide to develop new reserves in Africa, and how the cost of creating enabling infrastructure locally compares with other parts of the world,’ Du Rand remarks. South Africa currently has little proven oil and gas reserves and therefore remains a net importer of these resources. There is great interest in shale gas in the Karoo, as well as other potential oil and gas reserves on and offshore of South Africa. ‘The current regulatory environment is not friendly to investment in exploration while there are a lot of environmental challenges to overcome. Significant development of the industry in the short term is probably unlikely. Programmes such as the gas-to-power initiative by the Department of Energy may stimulate development going forward,’ Du Rand predicts.

AECOM

T +27 012 421 3596

E +27 083 324 2418

W rashree.maharaj@aecom.com

Issue 4 - September 2016 - February 2017

Issue 4 - September 2016 - February 2017

This article was featured on page 58-59 of SABI Magazine Issue 4 - September 2016 - February 2017 .

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