Optimism and Growth in Nigeria and West Africa

May 2019

SVS Offshore is a company which was formed to meet the unique requirements and challenges of the offshore oil and gas sector in Sub-Saharan Africa.

From its early days focussed on major offshore projects in East Africa, the company has since grown and adapted to work alongside major clients throughout the region, providing vessels for a wide range of roles and helping clients meet an even wider range of challenges.

As a versatile and client-focussed organisation we have always been willing to mobilise and operate vessels wherever there is a demand; it is very clear that West Africa, and Nigeria in particular, are at the forefront of that demand at present. We are proud that we have been able to establish ourselves in this complex and demanding environment and, as demonstrated by the positive analysis and forecasts below, we believe it is a region where our vessel fleet and business will continue to grow and prosper.

For more than half a century the West Africa region, in particular the countries bordering the Gulf of Guinea and Congo Delta, has been one of the most exciting and attractive regions in the world for the oil industry. A review of E&P activity and an assessment of the strategy of all major international oil companies reveals that this region has not only remained attractive in recent years, but that in the future it will become even more important. The excellent exploration record and the start of many new fields over the last few years, particularly in deep water, are proof that the region has remained attractive.

The pace of drilling growth around the world is set to step up after the recovery in global oil and gas drilling seen in 2018, with growth in offshore oil and gas drilling expected to outpace the overall global drilling market.

While total global drilling activity excluding the U.S. is set to rise by 2.5 per cent in 2019,  offshore drilling is expected to grow by just over 6 per cent to 2,204 wells.

Drilling in Africa is expected to grow at the fastest pace among all regions, by 8.7 per cent.

In total, 67 new crude and natural gas projects are expected to start operations in the sub-Saharan Africa during the period 2019 - 2025 [1].

Key projects are expected to contribute about 1.1 million barrels of oil equivalent per day and around 9.4 billion cubic feet per day of global gas production by 2025.

The region is expected to spend proposed capex of USD $20.3bn to bring the planned projects online and USD $154.6bn on key announced projects during the forecast period.

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period, with a capex of US$59bn on 28 planned and announced projects.  (Of the total count, 8 are planned and 20 are announced projects.) [2]

Among operators, Shell Petroleum Development Company of Nigeria Ltd leads with the highest number of four upcoming projects – three announced and one planned – all being conventional gas projects.

Royal Dutch Shell Plc, Exxon Mobil, Nigerian National Petroleum Corporation, Eni SpA and Sonangol EP are the key players in terms of highest capex spending on the major planned and announced projects; these companies alone are expected to spend about USD $64bn.

[1] Source: Announced Projects and Capex by Country in Sub-Saharan Africa, 2018-2025

[2] Source: Global Data, Oil and Gas Intelligence Center

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Our Fleet of Vessels

SVS Offshore operates 5 x Damen 3307 FCS Vessels.

We have a variety of charter and operating arrangements in place and have the flexibility to deliver a range of solutions in order to meet client needs. We provide support to a variety of market sectors.

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