Scottish Development International has organised a trade mission of 12 Scottish organisations which hope to break into oil and gas opportunities in Mozambique and Tanzania.
The mission is responding to a visit two years ago to Aberdeen by the President of Mozambique, who asked for Scotland’s support to grow their oil and gas industry. With some of the largest offshore gas fields in the world, no local supply chain and an immediate and significant demand for skilled workers, East Africa creates significant opportunities for Scotland’s oil and gas sector.
A spokesman for Aberdeen Council said: “The relationship between the city and Mozambique has been forged quite recently but is proving to be very fruitful. Aberdeen Council was first approached by the Mozambican High Commissioner in the UK, Carlos dos Santos, in June 2013 in relation to the visit of the President of Mozambique in July 2013.
“Since then, we have received two Ministerial delegations and one academic visit and Aberdeen officials have been also invited by the Mozambique Government to speak at conferences and advise them about how to develop Pemba as an oil city using the Aberdeen model for developing an indigenous supply chain.
“Future developments include the possibility of signing a Memorandum of Understanding between Aberdeen and the province of Cabo Delgado and the city of Pemba later this year.”
Gary Soper, Regional Manager in Africa, SDI, said: “It’s a real endorsement of Scotland’s global reputation for skills, experience and training when the President of Mozambique asks for our support to help grow their oil and gas industry.
“East Africa is a pioneering market, and with 150 trillion cubic feet of gas discovered off the East Africa Coast in deepwater, Scotland’s unrivalled deepwater subsea delivery and offshore experience makes us the perfect partner to help bring it into production.
“We know there are huge opportunities for Scottish education companies in Mozambique and Tanzania and working together, we aim to help our institutions and companies make the right connections and capitalise on the opportunities.
“Scotland has a strong and ambitious oil and gas sector, and despite the difficult market conditions, companies remain focused to deliver their long term growth potential by opening up new markets both at home and overseas.”
Joining the mission is UniversalPegasus International (UPI), an upstream engineering company with projects across the globe in energy, marine and government sectors. The company is currently supporting ENI with the Mamba Straddling Resources (MSR) project in Mozambique.
Tony Stead, Business Development Manager, UPI, said: “We are supporting ENI’s Mamba Straddling Resources Project in area 4 – our role was to deliver Front End Engineering Design (FEED) for a challenging deepwater development and over 60km tieback to the new LNG facilities at Palma.
“Working with SDI we aim to increase our activity in this key market and attending missions such as this is a key part of helping us achieve that.”
Operators in East Africa – Anadarko, ENI, BG, Shell, Ophir, Petrobras and ENH – are expected to spend approximately $2 billion to bring the fields to production. A good percentage of that, according to East Africa Oil & Gas laws, needs to be delivered locally. This means as well as capacity building, operators will need to substantially invest in education and training – around 25,000 people will require training at a technical and vocational level as well as higher education.
The global reputation of Scotland’s Oil & Gas education and training providers means it is well placed to support this opportunity. As such, five of the 12 companies on the mission are education and training companies including the university, college and private sector.
The mission also complements the newly announced £25 million UK Skills for Oil and Gas programme, led by DFID and supported by BG Group which aims to create jobs and boost incomes for local populations in Kenya, Uganda, Tanzania and Mozambique through training opportunities. Organisations taking part in the trade visit include:
- University of Aberdeen
- Bradley International
- University of Dundee
- Stirling Group
- O&G Supply Chain:
- Calderberg Group
- Intervention Rentals
- Lionrock Energy Services Ltd
- Rignet UK
- Universal Pegasus International
- Wood Group PSN
- X Subsea