Logistics major expands service offering

SDV South Arica, part of the Bolloré Africa Logistics group, is strategically expanding its services to enhance support around the oil and gas sector, according to Davydd Rees, logistics solutions manager of oil and gas at SDV SA. This includes property acquisitions to provide storage within areas which best serve its client base, as well as logistical bases and vessel chartering opportunities to name but a few. He said these would be taken to market as and when feasibilities allowed. “With planned refineries in countries such as Angola, recent independent certification suggesting gas volumes of approximately 540 BCF (billion cubic feet) in the Ibhubesi Gas Field off the East Coast of South Africa, and continuing exploration off the coast of Namibia and Mossel Bay/ Port Elizabeth, our intention is to take our existing track record and proven skills to the market in support of these ventures. This will be performed through the services of clearing and forwarding as well as shore base operations, support vessel chartering, husbandry and all associated services,” said Rees. He said there was growing interest in East and West Africa, including but not limited to Angola, Namibia, Mozambique, Kenya, Tanzania and South Sudan. “Landlocked countries such as Botswana are also being explored extensively for the extraction of coal bed methane, with the intention of monetising reserves through servicing local energy markets,” he added. All major oil and gas players with refining capacity in South Africa are servicing the downstream market, specifically through exporting refined fuels and lubricants into neighbouring countries such as Zimbabwe and Botswana, and at present these account for the majority of exports related to the oil and gas market, he said. “As far as the upstream market is concerned, most of the products/machinery such as casings etc required, are imported, with very little being sourced from the South African market for export to global destinations,” he added. “In addition it should be noted that given recent discoveries, countries such as Mozambique are looking for partnerships with countries like South Africa in both the mid-stream and downstream markets,” he said. Ports Challenges throughout the continent include bureaucracy, infrastructure, short–term availability of specialised handling equipment and hampered access to vital points such as quaysides for supply vessels etc. “Our approach to these issues is to partner with local port operators/ agencies and develop the infrastructure in all aspects, the result being improved available services for the market, commensurate effect on processes, and growth of the local economy,” said Rees. Border crossings Difficulties are mainly faced when items need to be exported across borders out of South Africa. There are a limited number of transporters that run cross-border, specifically into the northern territories of countries such as Mozambique, often necessitating the need to “tranship” cargo between vehicles and transporters with commensurate risk and financial implication. Decisions Given the fact that South Africa could be considered an emerging market in the field of oil and gas, decisions to invest need to be well calculated and decisive, both on the part of contractors, operators and logistical service providers. Once synergy between legislation and exploration aligns and proven reserves are brought to the market, the industry will grow exponentially. The key is to be ahead of the market when this happens. Risk Mitigation The inherent QHSE and environmental risks involved in this industry necessitate strict maintenance of standards and prerequisites, adherence to which is essential. In addition, given the global nature of the market and the imperative to mitigate the risks (insurance shortfalls, cargo handling and lost time to name but a few) involved with moving cargo to and from innumerable global destinations, the importance of a seamless network that “speaks the same language” is invaluable. CAPTION The Ibhubesi Gas Field off the East Coast of South Africa. Photo: Sunbird