Brulpadda has much promise

Maritime SA needs to set a Big, Hairy, Audacious Goal to reap maritime benefits

THE DISCOVERY of condensates at the Brulpadda field south-west of Mossel Bay engendered positive sentiments, indeed excitement, although much still needs to be done before either gas or oil flows in significant quantities.

Later this year, other wells will be drilled to provide greater clarity on the extent, composition and calorific value of the discovered field. “It’s a very big deal for South Africa,” commented a leading figure in the oil and gas sector. And if it is a viable reserve, one can imagine the benefits for the country.

Some of the envisaged benefits are directly related to shipping. If all goes well, the production company will need to lay out fittings and pipes on the seabed, a major task requiring specialist vessels, given the water depth at the site which is seaward of the continental shelf.

Production from the field may need an FPSO (floating, production, storage and off-take vessel), or the new wells could be connected to the existing pipeline from the FA Platform (about 80 kilometres south-west of Mossel Bay) to the refinery ashore. However, extending the pipeline to link the new field to the existing system is difficult as the pipeline would come from the depths of the sea, up the continental shelf and along a rugged seabed before reaching the existing pipeline.

If Brulpadda becomes operational – and a considerable time will be needed to establish this complex deepwater project where wave heights can be extraordinary – constant supplies of food, fuel and equipment will need to be ferried to either the FPSO or to a new platform, while there is every possibility that shuttle tankers, instead of a pipeline, may also be used to bring the product ashore.

Perhaps vessels involved in this venture – from additional prospecting operations to production and the supply vessels – should be obliged to carry a sizeable percentage of South African officers and ratings.

Let’s hope that contracts are awarded to local ship management companies or shipowners with good track records and sound expertise in the field. In such wild conditions as can be experienced south of the continental shelf, there is no place for inexperienced people or those whose only credentials are that they are “loyal cadres”.

The value to the country of rich gas or oil reserves is difficult to assess, although savings in foreign exchange through a local supply of energy as an import replacement for some of the country’s requirements will be substantial. Tax revenues accrued from the production, ancillary operations and fuel sales will also contribute significantly to the state’s coffers. Hopefully such income will be used wisely and not channelled to kith and kin of those in the inner circle.

There will be jobs of various descriptions, especially if a new platform needs to be constructed to replace – or in addition to – the 30-year-old FA Platform.

While Brulpadda holds promise, the Durban meeting between the minister of transport and shipping folks last week brought varied responses. A late notice postponing the meeting for a week had many folks scrambling to rearrange their diaries and reschedule air bookings. At least one delegate lost hundreds of rands because the airline would not reschedule the flight, a bare-faced rip-off.

Then, due to open the seminar, the minister – like at least three of his predecessors at various events – arrived late, keeping delegates waiting for over an hour. “Does he really care?” was one response. Despite those issues, and some who expressed their frustration at various aspects of the shipping industry, positive action may result from the meeting that yielded interesting discussions on several topics.

Old but valid chestnuts – ship registration, cabotage, transformation of the shipping industry and others – were raised, but government needs to enact positive legislation such as tax enticements and clarity on security of investment and property, including ships, so that shipowners can feel comfortable to register their vessels in South Africa.

Carefully-constructed plans – not knee-jerk reaction – should be formulated to introduce limited cabotage regulations for aspects of the South African trade. Such regulations should include incentives (and perhaps penalties if not adhered to) to encourage cadet training and employment of South African officers and ratings.

By reducing tariffs and actively expanding their business, ports should become catalysts for wider maritime development, not cash cows to support failing sections within Transnet.

Casting aside pettiness and politicking, we need to borrow from the planning strategy of a large tanker company by setting a BHAG – Big, Hairy, Audacious Goal.

The company succeeded in reaching its goal in becoming the leading player in three sectors of the tanker market. Then it set a BHSG – Big, Hairy, Scary Goal – to become the undisputed leader in marine services to the oil and gas industry by 2010.

It achieved those goals through brilliant leadership, collective brainpower, thorough planning, and extremely hard work.

Similar goal-setting and methodology should apply to Maritime South Africa.

| Andrew Ingpen THE FPSO Glas Dowr under tow from the Sable oilfield south-west of Mossel Bay late in 2008. Later, she was towed to Port Elizabeth and then to Singapore for a refit before repositioning to an oilfield in the Timor Sea. Prior to her deployment off the South African coast in 2003, she had undergone an extensive refit in Cape Town. A similar vessel may be used on the newlydiscovered Brulpadda field or the product may be piped directly ashore.