Africa will suffer significantly higher production costs for its own new grass-root refinery projects, planned in Nigeria, Angola and Gabon, according to GlobalData. These countries have a lack of highly skilled workforces and minimal infrastructure, meaning that most if not all equipment, materials and labour needs to be imported.
Carmine Rositano, GlobalData’s managing analyst covering downstream oil and gas, says, “Further costs for this region will also result from the financial and geopolitical risks associated with the construction of onshore refining facilities in African countries, such as Algeria and Uganda. These factors will push Africa’s refining capital expenditure to almost US$28-billion dollars by the end of 2020.”
The global refining capital expenditure is forecast to reach about US333-billion dollars between 2014 and 2020, representing an annual average of almost USD48 billion dollars and 1,6-million barrels a day.
Showing posts with label skills. Show all posts
Showing posts with label skills. Show all posts
Friday, 8 August 2014
Thursday, 7 August 2014
South Africa: Skills needed to grease growth of oil and gas sector
South Africa is ideally positioned to become a major hub in the booming oil and gas sector on the continent, but a huge global shortage of skills exists in the industry, especially at middle management and executive levels, says Guy Lundy, a principal at global executive search firm Odgers Berndtson.
While local universities do produce “excellent” geologists and engineers, Lundy says the country also needs to encourage training in other relevant professions such as accountants, lawyers and tax specialists who understand the oil and gas industry.
He says universities should offer more industry-related courses and attract students from all over Africa and companies active in the sector need to focus on mentorship to enable the upskilling of young people.
Lundy suggests that government play a crucial role in opening up South Africa to foreign skills – companies should be incentivised to facilitate the entry of skilled foreign management, who can ensure the transfer of skills to local employees.
While local universities do produce “excellent” geologists and engineers, Lundy says the country also needs to encourage training in other relevant professions such as accountants, lawyers and tax specialists who understand the oil and gas industry.
He says universities should offer more industry-related courses and attract students from all over Africa and companies active in the sector need to focus on mentorship to enable the upskilling of young people.
Lundy suggests that government play a crucial role in opening up South Africa to foreign skills – companies should be incentivised to facilitate the entry of skilled foreign management, who can ensure the transfer of skills to local employees.
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