Photo by: Bloomberg
In acknowledgement of its contribution to the Western Cape economy, South African rig repair company DCD Marine Cape Town has been recognised by the Western Cape government for attracting some R1-billion in revenue to the province and creating around 1 193 jobs during recent work it completed on oil and gas contractor Saipem’s Scarabeo 7 oil rig.
The company said the award, which was also presented to Saipem, consolidated its position as a provider of world-class rig repair services, attracting repeat international business to the region and boosting the local oil and gas industry.
“It is an honour to be recognised by the Western Cape government for the hard work and time that DCD Marine Cape Town has invested to ensure that we put Cape Town on the global map as a rig repair destination of choice,” commented DCD Marine Cape Town GM Gerry Klos.
The company was awarded the Scarabeo 7 contract after successfully completing the special periodic survey for Saipem’s semi-submersible drilling rig, Scarabeo 3, in 2012.
The Scarabeo 7 project comprised a total of 3.2-million man hours performed by DCD Marine Cape Town and its subcontractors, which included the fabrication, installation and outfitting of a new accommodation module.
The module was fabricated in DCD Marine Cape Town’s workshop, transported using a barge, floated into position and then lifted and secured onto the rig.
The original scope of work was estimated at 82 days, with additional work taking 113 days, amounting to a total project duration of 193 days.
Commenting on the significance of the project, Western Cape Economic Opportunities Minister Alan Winde said the project delivered a “massive” boost to economic growth and job creation in the province.
“The DCD Marine shipyard is an important player in the Western Cape’s maritime industry and is attracting significant foreign investment to the province, specifically in the rig repair industry, which is a key growth sector, generating yearly income for the local economy of some R2-billion.
“We are grateful to both companies involved in this project for the role they have played in helping to build a sustainable local economy. The world-class service DCD Marine Cape Town offers makes it an asset to the Western Cape,” he noted.
Winde added that the project was aligned with the provincial government’s top priorities – economic growth and job creation.
“We believe it is our role to create an environment in which the private sector can grow the economy and create jobs. To do this, we have focused on reducing red tape and putting the necessary skills programmes in place for our residents,” he said.
OIL AND GAS FOCUS
Elaborating on national government’s interventions in the oil and gas sector, Winde noted that it would continue to advance clean fuel technology upgrades of crude refineries and the establishment of a gas-to-liquid refinery and import terminal, on which feasibility studies were being undertaken.
In addition, coalbed methane exploration activity would continue, while shale gas exploration, following the appropriate approvals from stakeholders, would be likely “in the next few years”, dependent on the Mineral Petroleum Resources Development Act.
Moreover, exploration activity off the coast of South Africa was expected to ramp up over the next 18 to 24 months, with many upstream exploration companies starting with approval processes for offshore exploration.
“We will continue to work with State-owned freight company Transnet to ensure that proposed port infrastructure is implemented. Key priorities will include maintaining existing port infrastructure and ensuring that our cost structures remain competitive with international ports,” said Winde.