Development Stage A Massive Logistics Exercise – Summaya Athmani

National Oil Corporation Managing Director Sumayya Athmani is asking local companies in the logistics field to prepare for the development stage so that they should not lose out from the emerging opportunities.

According to Sumayya it is approximated that the development stage excluding export pipeline & marine terminal workforce will require 4000 to 6000 thus the need for capacity building with local institutions to train oil and gas professionals.

Summaya also approximates that one central processing facility CPF with production capacity of 75,000 to 100,000 bopd to cater for 300 to 500 wells (including injection wells) that will be drilled during the period.

During the same period it is estimated between 35 to 50 well pads will be required depending on the number of wells per pad as well as approximately 170 km of infield flow lines.

Among other opportunities for players in the logistics field include transportation of approximately 2 million tonnes of materials, which is the equivalent to approx: 4 x Burj Khalifa Towers or 24 x Golden Gate Bridges or 200 Eiffel Towers besides the approximately 500, 000 tonnes of waste materials arising from the various projects.

Other opportunities include: Financing, Engineering, Construction, Supply of heavy machinery and lifting equipment, Welding and fabrication, Service Yards, Accommodation and camp services.

The managing director is however quick to caution that the development stage still faces various challenges including: falling oil prices, declining demand, impact of shale, lack of capital, increase in supply once Iran is back into the market, Pre salt developments in Brazil, Tar sands project in Canada  among other issues.

Kenya expects to be producing about 30,000bpd when production starts around the year 2020/2021 and will reach around 100,000bpd two years later.

In total Phase 1 of the Lokichar development expected to cost app. $5B excluding the crude pipeline.

Sumayya was speaking as she made a presentation to stakeholders in a Nairobi hotel.