Construction work has started on State-owned enterprise Transnet National Ports Authority’s (TNPA’s) new offshore supply base (OSSB) at the Port of Saldanha’s general maintenance quay.

The OSSB would provide a base for receiving equipment and waste from offshore exploration and production activities and facilities for loading and shipping of equipment, stores, goods, bunkers and drilling fluids.

While it was a difficult time in the oil industry, there was still an appetite for the development of a dedicated facility in Saldanha for the oil and gas sector, Saldanha port manager Willem Roux said in a statement on Wednesday.

“The current economic climate in the oil and gas market may not be conducive to embarking on new exploration projects, but one has to be mindful that the majority of existing offshore production remains operational. Demand for support of these operations will continue and the lull in exploration activities may in fact provide an opportunity to perform repairs and maintenance to exploration vessels and equipment,” he added.

The OSSB was one of three priority projects earmarked for the Port of Saldanha under government’s Operation Phakisa initiative. The facility would be the country’s first dedicated and customised facility supporting offshore oil and gas activities and was expected to be commissioned by September 2016. It would serve vessels engaged in supporting offshore exploration and production activities along the west and east coasts of Africa, and that were calling at South African ports for support and logistics services.

Roux said contractor Basil Read started preparatory site establishment activities during April. “Construction work will entail infilling the gap of about 80 m between the existing two quays, refurbishing one portion of the quay and lengthening the quay by 20 m on either side to create a total quay length of 294 m. Minor dredging works will provide a depth of 8 m alongside the overall length of the quay,” he explained.

TNPA also appointed a transaction adviser to provide a report on best practice, market analysis and different operating models for consideration.

“The transaction adviser will assist TNPA with the finalisation of request for proposal documentation for the appointment of an operator for the OSSB. This operator will be responsible for providing infrastructure such as warehousing, workshops, offices, canteen and rest room facilities, as well as equipment such as cranes and other rubber tyred equipment to operate the facility,” Roux outlined.

An environmental assessment practitioner would be appointed to perform baseline and specialist environmental studies this month.

OPERATION PHAKISA
Besides the OSSB, Operation Phakisa would also see the establishment of a rig repair facility at berth 205, with a length of 380 m and a depth of 21 m, which could accommodate two rigs at a time.

A new 500 m finger jetty in the vicinity of the port’s Mossgas quay would also be constructed, with a depth of 8.5 m and 12 m pockets to accommodate floating docks for vessel building, repairs and maintenance.

TNPA intended to follow a build, operate and transfer model in the establishment of these facilities. In terms of the expanded Mossgas finger jetty and the oil rig repair facility at berth 205, the successful bidder would be responsible for dredging works as well as the wet and dry infrastructure development.

All three projects would complement the 330 ha Saldanha Bay industrial development zone (IDZ), which was designated in 2013 and expected to be constructed from August.

The IDZ would allow operators to import equipment and goods destined for offshore exploration and production activities in a similar manner as a free port.

The port authority expected to complete all three projects within two to three years, working alongside strategic partners including government, the Southern African Oil and Gas Alliance and the Saldanha Bay IDZ Licensing Company.