As unemployment in South Africa reaches crisis levels, onshore preparation will determine whether offshore oil and gas potential can sustain jobs while integrating affiliated small and medium-sized enterprises and supporting inclusive growth in the energy sector, reports oil and gas industry body Offshore Petroleum Association of South Africa (OPASA) national spokesperson Niall Kramer.

“Readiness is the key here, so that when the final [project] authorisations come, we understand what needs to be done to ensure businesses are prepared [to take up new orders and related work]. . .” he states.

There are businesses in the supply value chain that are ready and able to contribute to new activity in the oil and gas sector, says Kramer, adding however, that much of the current activity in the value chain is focused on Mozambique and Namibia.

He notes, however, that this “is a good thing for South Africa”, as the country can become a training ground where skills, capacity and onshore-readiness procedures can be developed to take up either foreign or local oil and gas work.

Oil- and gas-affiliated companies that want to be involved in future projects, when they reach financial close and receive authorisations to start project developments, should focus on safety, security and environmental responsibility in their operations, states Kramer.

“We need to watch the neighbouring countries and see what they are doing [in this regard]: learning from their successes and their mistakes, mapping the skills that are going to be needed, and transferring those skills [to South Africans] through youth development; education; training; and a science, technology, engineering and mathematics-focused set of programmes,” he emphasises.

In regard to human resources, Kramer points out that there are many industries, including the mining sector, in which there are highly competent people with transferable skill sets that could easily be integrated into offshore support activities.

As workers, such as those in mining and related heavy industries, are already technically competent, he says they only need to ensure they are ready for offshore support work, adapting their skills to be more flexible, including honing specialist skills such as underwater welding and other marine industry know-how.

While many technical skills once used in the oil and gas industry, such as subsea inspection and maintenance, are now being augmented or developed through AI, other oil and gas job requirements and technologies – such as drone technology – still require licensed individuals to operate them safely.

As such, Kramer points out that individuals who aim to work in the offshore oil and gas value chain should obtain the correct licences, such as drone certifications, and qualify to be listed onto the databases of companies that plan to operate within the offshore oil and gas value chain.

However, he says while it may be the wrong time for South African oil and gas professionals to get onto the databases of active Namibian and Mozambican projects, it is the opportune time for such professionals to gain insight into such projects, so that when South African projects go into development, locals will stand a better chance of being selected.

Onshore Participation

According to Kramer, there is a clear distinction between oil and gas exploration and production in terms of project certainty and scale benefits, with the economic benefits of job creation, the re-industrialisation of South Africa and an increase in local activity reliant on the development of an onshore environment making it an important primary consideration.

Significant benefits, such as the growth of onshore jobs and local industries, arise when the development and production of oil and gas is underway, and with most modern oil or gas rigs typically employing between 100 to 200 highly specialised offshore personnel, the increased demand in the surrounding and related onshore environments, such as in harbours and ports, logistics systems and aviation to support offshore infrastructure, is where opportunity lies.

When looking at the broader African oil and gas sector, Kramer says oil and gas operators should all be engaging each other in a “spirit of partnership” and working together to ensure the sector can grow.

“There is no question that there is willingness and interest all around, certainly on the side of the ministries involved and the authorities,” he concludes.