Subsea Partner of Choice - Subsea UK, Aberdeen, … van der Graaf_Subsea7_Develop… · • Rigid Pipelay and Local Content – Seven Oceans ... – cabotage –tax ... • Logistics

Subsea Partner of Choice

Developing a Business in AfricaDeveloping a Business in Africa

Jan Willem van der GraafVP Africa region , Subsea 7


Contents• Growth of the Africa Subsea Market• Subsea 7 Company Profile• Developing Africa Business


Total Subsea 7 Market Capex 2002-2010$Billion

Source: Infield Systems Ltd

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2002 2003 2004 2005 2006 2007 2008 2009 2010

Angola

Congo

EquatorialGuineaIvory Coast

Mauritania

Nigeria

Republic OfSouth Africa


$4.5

$6.5

$2.5

$12.0

$5.5

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

BP Chevron ExxonMobil Shell Total

Installed Capex 2007-2012 of 5 Main Operators$Billion

•Total of 5 Main Operators = $31Bn•Grand Total for all Operators in West Africa = $35.5Bn

Source: Infield Systems Ltd


Water DepthsWater Depths

Metres

AngolaLobito

Tomboco AngolaSaxi/

BatuqueAngolaPazflor

AngolaDalia

NigeriaBonga

AngolaBlock

31

NigeriaAgbami

EgyptAbu Sir

USAThunderhorse

USAAtlantis

USANakika

BrazilBarracuda/Caratinga

-3000

-2500

-2000

-1500

-1000

-500

0

Africa Deepwater Fields


Subsea 7 company profileSubsea 7 company profile

• A subsea installer with focus on:– Assets :16 – 22 Vessels, 130 ROV’s– Technology– Local content

• DSV’s – Seven Atlantic• Rigid Pipelay fleet – Skandi Navica• Flexible Pipelay – Toisa Perseus• General Construction – Skandi Seven• Support – Subsea Viking


Asset DeploymentAsset Deployment

• 16 – 22 Vessels

• DSV – Seven Atlantic• Pipelay Rigid – Skandi Navica• Pipelay Flexible – Toisa Perseus• Construction – Skandi Seven• Support – Subsea Viking


















The nucleus of Subsea 7 business in Africa:The nucleus of Subsea 7 business in Africa:

• Rigid Pipelay and Local Content– Seven Oceans– Skandi Navica– Spoolbases


Rigid Rigid PipelayPipelay and Local Contentand Local Content

• Seven Oceans• Skandi Navica• Luanda Spoolbase


Rigid Rigid PipelayPipelay and Local Contentand Local Content

• Seven Oceans• Skandi Navica• Luanda Spoolbase


Angolan Angolan SpoolbaseSpoolbase / Fabrication Yard:/ Fabrication Yard:

• Track record: 70km• New Projects: 80km• Local Labour Development


Africa Infrastructure for Subsea 7:Africa Infrastructure for Subsea 7:

• People• Spoolbases / Fabrication Yards

– Local Labour Training– Engage Well Established Local Contractors– Grow the capability step by step

• Offices and Accommodation• Engineering

– Long Term Relationship with Engineering House– Train and employ


Subsea 7 Experience in Africa:Subsea 7 Experience in Africa:

• Angola: – Established a spoolbase and developing Further

• Nigeria: – Fabrication base in Progress– Engineering company

• South Africa: – Training Engineers in Europe


Considerations when starting business: Considerations when starting business:

• Build on the strengths of individual countries• Listen to what the countries want• In-country production & fabrication is a requirement not a

“maybe”• Provide facilities that can be utilised across the entire oil

& gas deepwater offshore industry• How to add maximum value to the local economy and

Subsea7• Engage with the community


Day to day challenges when doing businessDay to day challenges when doing business

• Government & Legal issues – cabotage– tax

• Security • Health• Culture • Logistics & Import / Export


Signs Things Have Gone Wrong :Signs Things Have Gone Wrong :

1. The Project Manager is proud he has to charter an Antonov for his project.

2. Solutions to the logistics problem include “Do we REALLY need what we ordered?”

3. The logistics man is employed for less than an year, but on a first name basis with executive management.

4. The boss of the logistics man recommends wine and Tylenol to help him relax after work. He also begins the project with Shakespearean quotes but soon resorts to lessons from Desperate Housewives to boost confidence that everything will work out.


Conclusion:Conclusion:

• Understanding the country• Good advisors and partners• Recognise and adapt to local culture• Developing long term strategy and objectives.


Questions:

Documents

Subsea Partner of Choice - Subsea UK, Aberdeen, … van der Graaf_Subsea7_Develop… · • Rigid Pipelay and Local Content – Seven Oceans ... – cabotage –tax ... • Logistics