Somalia ready to attract global participation with offshore licensing round

 

Following the signing of a new Petroleum Law and Revenue Sharing Agreement in May of this year, as well as the unveiling of its first ever offshore licensing round (15 blocks covering 75,000 sq. km), the Horn of Africa nation is keen to show the world that it is open for business.

The law breathes new life into a dormant Somali oil and gas sector – several concessions were awarded to the majors in the late 1980s, but Civil War erupting in the country led to a force majeure declaration. Since the government collapse in 1993, insecurity and lack of infrastructure have largely rendered the region a no-go for western companies, leaving local warlords and militias to claw out territories.

Read also: Orca Exploration Seeks To Maximize The Value Of Tanzania Operations

Almost 30 years later, Somalia is ready to shake-off past woes and attract global participation. This effort is being spearheaded by Minister of Petroleum and Mineral Resources, Abdirashid Mohamed Ahmed, who recently commented, “this year is a landmark in the development of Somalia’s natural resources…the Ministry has worked successfully with the federal member states to create an equitable and transparent framework to develop natural resources for the greater good of Somalia”.

As part of its efforts, Somalia is expected to honour most legacy contracts. An agreement has already been reached with Shell and ExxonMobil to settle rental fee payments for offshore blocks (part of a dormant joint venture). However, it does not seem that either company is rushing back into the country, with Shell stating that “the payment does not affect force majeure status, which remains in place”.

Despite this, Mr Ahmed has reason to hope that investment will begin to flow into Somalia. Seismic surveys conducted by British companies Soma Oil & Gas and Spectrum Geo suggest the country has promising offshore oil reserves of up to 100 billion barrels. What’s more, recent oil finds in Uganda and huge gas discoveries offshore Tanzania and Mozambique mean that oil companies have flocked to East Africa in recent years – Somalia could well become a beneficiary of this trend.

Mr Ahmed is attending Africa Oil Week 2019 in Cape Town this November. He will use this opportunity to lay out the future vision and objectives of the Somali national oil and gas sector in front of financiers and operators. The summit’s Director of Government Relations, Paul Sinclair, commented, “we are working closely with the Minister to ensure that the global private sector benefits from exclusive opportunities going live in a Somali National Showcase at Africa Oil Week”.-APO Group.

(With Inputs from APO)

Orca Exploration Seeks To Maximize The Value Of Tanzania Operations

 

 

 

Orca exploration who operates the songo songo gas field in Tanzania under its subsidiary Pan African energy Tanzania Limited announced the appointment of  RBC capital markets to review strategic alternatives for the Company under the direction of a special committee of independent directors, says a press release issued on 5th September 2019.

The review will include the evaluation of alternatives for the return of capital to shareholders and business combination opportunities.

Also Read:   Five Key Recent Developments Impacting The Oil and Gas

 

“Orca is currently evaluating several options to increase production to meet forecast gas demand both under the terms of the existing license and any possible license extension. This includes the preparation of a development plan for compression and the drilling of wells in Songo Songo North and their connection to the National Natural Gas Infrastructure. Details including the associated capital cost of this plan will be disclosed as appropriate” says a company in a press release.

In the meanwhile, the company  announces  that David Ross has been named the Chairman of the Board

 David currently holds the position of Non-Executive Director (“NED”) at Orca. Also, Frannie Leautier, Ebbie Haan and Carole Wainaina  have been appointed to hold the position of  Non-Executive Directors   as two of Orca’s existing Non-Executive Directors, William Smith and Glenn Gradeen, step down from the Board effective September 3, 2019

The announcement has followed in support of the company’s current business plan to maximize the value of Tanzanian operations and develop its assets base.

Orca exploration who operates the songo songo gas field in Tanzania through its subsidiary Pan African energy Tanzania Limited announced the appointment of  RBC capital markets to review strategic alternatives for the Company under the direction of a special committee of independent directors, says a press release issued on 5th September 2019.

Also Read:   Five Recent Developments Impacting The Oil and Gas

The review will include the evaluation of alternatives for the return of capital to shareholders and business combination opportunities.

“Orca is currently evaluating several options to increase production to meet forecast gas demand both under the terms of the existing license and any possible license extension. This includes the preparation of a development plan for compression and the drilling of wells in Songo Songo North and their connection to the National Natural Gas Infrastructure. Details including the associated capital cost of this plan will be disclosed as appropriate” says a company in a press release.

In the meanwhile, the company  announces  that David Ross has been named the Chairman of the Board

 David currently holds the position of Non-Executive Director (“NED”) at Orca. Also, Frannie Leautier, Ebbie Haan and Carole Wainaina  have been appointed to hold the position of  Non-Executive Directors   as two of Orca’s existing Non-Executive Directors, William Smith and Glenn Gradeen, step down from the Board effective September 3, 2019

The announcement has followed in support of the company’s current business plan to maximize the value of Tanzanian operations and develop its assets base.

5 Key Recent Developments Impacting The Oil and Gas

Here are top five articles about recent developments impacting the oil and gas industry in Tanzania and sub-Saharan Africa.

 

Development #1:  Total Suspends Planned $3.5 billion Uganda-Tanzania Oil Pipeline

Total SA has suspended its planned $3.5 billion crude export pipeline from Uganda to Tanzania after the collapse of a deal to buy a stake in Tullow Oil Plc’s oil fields in Uganda.

Full article

Development #2:    South Sudan Makes New Oil Discovery in Adar

South Sudan has made a new crude find in the northern oilfields of Adar and plans production by the end of the year, Information Minister Michael Makuei Lueth said.

Full article

Development#3:   Oil exploration: Panoro Energy announces new discovery in Gabon

The independent Norwegian oil Exploration and Production (E&P) company Panoro Energy ASA has made a new oil discovery further to the drilling of  the Hibiscus Updip well on the Dussafu Marin Permit, offshore Gabon, the company announced on Friday 30th August in a press release.

Full article

Development#4:U.S. Exim Bank Seeks Vote On $5 Billion to Mozambique LNG project.

The U.S. Export-Import Bank said on Thursday its board intends to vote on a $5 billion direct loan for the development of a liquefied natural gas (LNG) project in Mozambique, the bank’s biggest export financing deal in years.

Full article

 

Development #5: Over 1500 youths undergo intense skilling for jobs in oil and gas sector

As part of ongoing efforts to prepare Ugandans for jobs in upcoming infrastructure projects such as oil and gas sector, Solid Rock Uganda is equipping over 1500 youths with intense skills in areas of construction, pipe rifting, carpentry and rigging among others.

Full article

 

 

 

 

Uganda Will be Able To Get Cash To Build the Proposed $3.5 billion Oil Pipeline

 

Bloomberg) — Uganda will be able to get the cash it needs to build a planned $3.5 billion oil-export pipeline, with financiers ready to commit funds as soon as a final investment decision is made, according to Stanbic Bank Uganda Ltd.

The project has attracted “a lot of interest” and raising capital “is not a problem,” Stanbic Chief Executive Officer Patrick Mweheire said Tuesday in Kampala. The pipeline, which is crucial to plans by Total SA, Cnooc Ltd. and Tullow Oil Plc to tap the country’s first oil, has faced opposition from lobby groups who have voiced concern over its potential environmental impact.

Uganda, with discoveries of 6 billion barrels of oil resources, is targeting the start of production in 2022, while the 216,000-barrel-a-day pipeline would begin operations the following year. The government has said that an FID to develop the finds and build the pipe could unlock as much as $20 billion of investment.

Read also:Three Industry Experts Share How Collaboration Between Operators and Service Providers Can Drive Cost Effectiveness and Increase Efficiency In Oil and Gas Projects in East Africa.

Standard Bank Group said in June it was reviewing a request by lobbyists to withdraw from funding the proposed pipeline. The lives of as many as 14,500 people along its route could be affected, according to the request, which was signed by organizations including U.K.-based Global Witness.

Stanbic and Japan’s Sumitomo Mitsui Banking Corp. are the lead arrangers for financing of the 900-mile conduit, seeking to raise $2.5 billion in debt funding. Total, Cnooc and Tullow will also provide funds, as will the government.

“There are a lot of people sitting on the sidelines; funding for the pipeline can be raised,” Mweheire said. “We are all working collectively for FID.”

An investment decision on the pipeline, which would run from Hoima in Uganda’s oil region to the Tanzanian port of Tanga, is targeted later this year.

To contact the reporter on this story:
Fred Ojambo in Kampala at fojambo@bloomberg.net

Four Industry Professionals Share How They Find Jobs and Join The Oil and Gas

One of the biggest challenges to people looking to build a career in the oil and gas sector face is how they can get involved in the oil and gas industry. So I reached out to five oil and gas professionals and asked the following question:

How did you happen to get started in the oil and gas industry?

Alex Athanas

I am a former a  wireline Engineer at Schlumberger. And currently assigned as Engineer in charge for ENI Project in Mozambique.

I studied Bsc. in Telecommunication Engineering from University of Dar es Salaam, during my final year in 2013 I got an opportunity to meet with recruiters from Schlumberger who came to visit College of Engineering and Technology (COET) looking for potential engineering candidate who could join them in their ongoing projects across East and Southern African region.

They invited everyone from engineering and mining background to participate in aptitude exam conducted at the University of Dar es Salaam.

The response was amazing, about 600 candidates participated and only few of us managed to pass this stage.

Thereafter went through series of interview session including oral, presentations and group session. I finally got successful and got assigned to Mtwara, Tanzania as Wireline Field Engineer trainee to work on the then ongoing BG Tanzania operation.

I didn’t actually plan to have a career in the oil and gas industry, but took the opportunity when it presented itself, because the field engineer job seemed interesting, unique, and challenging.
After taking up the role I started with training since I didn’t have oil and gas background, my first training was in Paris France, this was mostly covering introduction to Oilfield and where Schlumberger fit in the market.

My second training was in US, this was bit extensive and long one taking about 4 months covering Wireline operation, crew management, Health, Safety and Environment (HSE) and other specific courses related to Schlumberger operation.

After completing my training, I joined the crew working on BG Tanzania offshore operation. I remember the name of the rig was Deep Sea Metro1 and the first well I logged was Mzia-3 appraisal well.

Since then I have been working on several projects across Sub-Saharan African.

I have been working in emerging market environments in East and South Africa (South Africa, Mozambique, Kenya, Uganda, Tanzania & Ethiopia) and in several west African countries from Cameroon, Ghana, Gabon, Equatorial Guinea and Congo managing wide variety of Wireline and basic Slickline services; working offshore/onshore for international as well as local demanding clients (BG, Total, ENI, Sasol, Ophir, Shell, Tullow Oil, New Age, Maurel & Prom & PanAfrican Energy).
As a wireline engineer, I am responsible for crew safety, providing the client with the excellent data and service quality while adhering to stringent health, safety and environment policies.
The most challenging part of my role as an Engineer in Charge is organizing and tackling an extremely large and varied amount of tasks, ranging from planning my crew to work safely and efficiently, to checking tools making sure all the tools and equipment are operational, to inputting HSE and service quality reports, to speaking with clients on a daily basis. There are so many tasks on my list that it was impossible to complete them all, so I had to learn to prioritize.

My advice for anyone who wants to start out career in oil and gas industry, as this industry is very demanding, fast-paced, and volatile, they need to be prepared to work very, very hard. And long hours. It’s not always fun. But it is rewarding, challenging, and you will learn a lot. Perseverance is key.

I encourage my fellow Tanzanians (especially those who wants to take advantage of business opportunities, graduates and students) to take the time to really learn about the oil and gas industry, especially now this is hot cake and it is fast growing market in East Africa.

Why To Follow: Alex Athanas worked with one of the largest oil service company in the world (Schlumberger), he now works as Engineer in charge for ENI Project in Mozambique.

.

Fikiri Ali                                   

    

“I first joined the industry back in 2013 as a planning analyst for Swala oil and gas (T) plc. This role was advertised by radar recruitment Tanzania. Since I worked as a Market Analyst before, radar decided to contact me and I was first interviewed by radar. I did well and I was referred to the Swala CEO for the second interview. I did well and I received a job offer. The company immediately sent me to Australia for a month training before I was fully given responsibilities.”

Why to Follow: Fikiri Ali is an experienced planning analyst with a demonstrated history of working with the oil and gas industry. Skilled in Analytical skills. Financial modeling, strategic planning, social science, and SPSS. Strong business development professionals with a masters degree in Applied Economics and Business from Mzumbe University in Tanzania

Innocent Urio
 

“My journey in the oil and gas industry started in early 2012 just after completing my final-year exams. I was given an offer to work with Schlumberger as Maintenance Engineer after passing series of interviews conducted during a career fair event organized by Schlumberger at College of Engineering and Technology, University of Dar es Salaam, Dar es Salaam”

Describing the top challenge faced in his career Innocent says “The main challenge was during my first two years when you spend most of the time on the field, doing onshore and offshore drilling rigs. This is the time when you are supposed to acquire a lot of skills through on-job and in-class training and you are required to break out and become a standalone competent engineer. The condition for employment during this time was to pass all training, otherwise, you will be dismissed.
The most memorable event in my career occurred in 2015 when I was promoted to General Maintenance Engineer (GME) after passing all interviews and successfully delivering my project presentation in Congo Brazzaville, Pointe Noire. I delivered this presentation in front of Regional Management and it was a pass-or-fail event.”

Why to Follow:Innocent Urio worked with one of the largest oil service company in the world (Schlumberger), he now works downstream (oil marketing company) with Puma Energy Tanzania as an Engineering and Maintenance Manager.

Benoit Gallois

“During my international studies at the Rouen Business School (France), I was part of the Junior Entreprise Alteo Conseil team as Sales Manager. In 2008, I met one of my future partners with whom we started our technical assistance and equipment procurement activities for oil drilling projects in North Africa (Tunisia, Algeria, Libya). This entrepreneurial experience led us to the Arab Spring in 2011 forcing us to put our activities on hold. After a detour via Houston in 2012, I joined Veolia Water in Rep of Congo in 2013 and then a subcontractor for the oil industry, SERVTEC Congo, in 2015 where I will soon take up my position as Deputy General Manager.”

Why to Follow: Benoit Gallois is a commercial  and operations manager of chez SERVTECH International group. He is in charge of the management of 10 business engineers incharge of  45 customers accounts with more than 70% of  turn over in oil and gas industry(Total E&P, Total Distribution, Parenco, Halliburton, TechnipFMC. Subsea7, Baker/GE etc.)

 Writer’s excerpts.
I always compare the oil industry with the military sector. Why? Because it employs people from every profession. Oil and gas companies hire accountants, doctors, legal officers, engineers of all kinds, drivers, security guards, cooks, computer programmers, etc.. And there are different routes to get into this industry. So don’t be daunted of academic background
And the cool thing is that in the oil and gas industry, there are opportunities for people of all ages and shape.

Feel free to contact me if you have any question:

hussein.boffu@tanzaniapetroleum.com

+255655376543

LP Gas Access To Power Growth In Africa

Ahsif Ahamed , Sales manager, Hexagon Ragasco As.

Ahsif Ahamed the sales manager of Hexagon Ragasco, gives his thoughts on  LP Gas  market in Tanzania and Africa at large and how his company made a giant stride in the market.

Hexagon Ragasco is one of the official sponsor   of the 6th Africa LP Gas summit holding 3-4 July 2019 in  Dar es salaam.

Hussein Boffu asked.

1. Describe your company’s recently milestone?

Hexagon Ragasco has sold as at this year 16 million composite LPG cylinders in over 80 countries. This is a milestone we are very proud of as it reinforces our global leadership position within composites.

2..According to Energy, Water and utilities Regulatory Authority (EWURA), Tanzania imported 120,961 MT of LPG as at December 2018. This is an increase of 13% compared to 107,0883MT imported in 2017.This is huge number and testimony that LPG marker is growing at rapid pace in Tanzania, what are some initiatives that Hexagon Ragasco has in place in order to meet the high demand of LPG in Tanzania ?
Our presence in Africa has become more important in the course of the past years and we wish to continue working with Tanzanian regional stakeholders and LPG users to spread the word about our innovative and safer technology along with the real advantages offered by our award-winning cylinder. The lighter weight, translucency and rust-free characteristics of our cylinders, combined with their increased safety can positively impact and change the way LPG is used in Tanzania.

3. LPG summit returns to Africa for the 6th time running, the summit is once again to be held in Dar es salaam on 3-4 July 2019 with Hexagon Ragasco fully supporting it as an official sponsor of the summit. What are you expectation for this important gathering.

The Summit gives attendants the opportunity to meet with and renew acquaintances with the movers and shakers of the industry and be informed of the new trends and happenings in the market. We are looking forward to meet with key influencers, decision makers in Tanzania and with key LPG distributors in Africa to renew and strengthen our partnerships. We are also excited about presenting our composite cylinders, our state of the art technology and welcoming visitors to our booth.

Prepare For The Oil and Gas Opportunities

Innocent Urio Engineering and Maintenance Manger, Puma Energy Tanzania

 

Innocent Urio has built a lucrative career in the oil and gas industry. From working with one of the largest oil service company in the world (Schlumberger), he now works downstream (oil marketing company) with Puma Energy Tanzania as Engineering and Maintenance Manager.

His interesting story reflects that anyone can build and grow a career in the oil and gas industry, as long as he or she is willing to work hard and long hours.

In this exclusive chat, Innocent gives insight on his journey in the oil and gas industry: the challenges he faced and some initiatives he takes to ensure that he stays in this dynamic industry.

Hussein Boffu, asked.

1.How did you happen get started in the oil and gas industry?

My journey in the oil and gas industry started in early 2012 just after completing my final-year exams. I was given an offer to work with Schlumberger as Maintenance Engineer after passing series of interviews conducted during a career fair event organised by Schlumberger at College of Engineering and Technology, University of Dar es Salaam, Dar es Salaam.

2.Describe the main challenge you faced in your career?

The main challenge was during my first two years when you spend most of the time on the field, doing onshore and offshore drilling rigs. This is the time when you are supposed to acquire a lot of skills through on-job and in-class trainings and you are required to break out and become a standalone competent engineer. The condition for employment during this time was to pass all trainings, otherwise you will be dismissed.

3.What is your most memorable event in your career?

My most memorable event in my career occurred in 2015 when I was promoted to General Maintenance Engineer (GME) after passing all interviews and successfully delivering my project presentation in Congo Brazzaville, Pointe Noire. I delivered this presentation in front of Regional Management and it was a pass-or-fail event.

4.The long awaited oil and gas market is  recovering with new projects being approved. How does that impact your career?

The oil price is recovering already and has started to provide opportunities to many areas around the world. What is required is just for all stakeholders in industry to be ready to grasp these opportunities.

5.What does local content mean to you?

Local content, to me, means the provision of employment for locals and the use of local goods and services through development and participation of local human capital and business firms in the entire value chain of the oil and gas industry.

6.What advice would you offer to young people looking to build a career in the oil and gas sector?

The most important thing is to try to be well-informed. Seek information and know what qualities most oil and gas companies are looking for. Also, it is very important to be connected in professional networks such as LinkedIn.

Ensure you have a well-crafted and updated CV. The professional network profile and the CV should portray your qualities. Some job sites are specific for oil and gas jobs. It is very important to visit these websites regularly.

 

Sub Sahara Africa Upstream Oil, Gas Summit Puts Spotlight On Petroleum Regulatory Reform On East Africa’s Oil and Gas

Dapo Ayoola, Chief Executive Officer, Sub-Sahara Africa Upstream Oil and Gas Summit and Exhibition.

Sub-Sahara oil and gas industry professionals will discuss regulatory reforms and major issues faced by the oil and gas industry with a focus on East Africa at the upcoming Sub Saharan Africa upstream oil and gas summit and exhibition in Nairobi, Kenya.

This uniquely placed platform for the oil and gas professionals in Sub Sahara Africa will be held from July 24 to 26 at the prestigious Serena Hotel, Nairobi.

“Like in any sector, the challenges are there but the way we are approaching the challenges is focusing on opportunities and talking to regulators. If regulators are upfront with investors by telling them what they need to do and then we get a checklist, that’s all an investor wants to know.

The investor wants to know what the challenges are and that’s why on the 25 we will be bringing key regulators to come and talk to investors and say, “this is what we’d be asking of you” ” Says Dapo Ayoola, Chief Executive Officer of Sub-Sahara Africa upstream oil and gas summit and exhibition.

“The other challenge is funding. On the other hand, is technology. In terms of manpower, Nigerians are as brilliant as any other part of the world. What we have not been able to put together is our own funding mechanism. Another issue we have not perfected is technology.

We know that if you have the right personnel, you know the fiscal policies of the country, then you can bring a huge pocket to your advantage, then you buy the technology and then we have the capacity to deliver.” Dapo added.

“At the summit, we will also discuss funding opportunities. Can we pull together as a continent and fund genuine investment opportunities on our soil?” Dapo concluded.

Giving Locals Priority In East African Oil and Gas

 

Sudesh Dewar, C.E.O , Demps Offshore

 

Oil and gas East African Network (OGEAN) had the opportunity to interview Sudesh Dewar who is a  Chief executive officer at DEMPOFSHORE. He talks about the company’s recent milestone and some strategies they will take to enhance local content development through hiring and developing the local workforce in the oil and gas sector in Tanzania and East Africa 

Hussein Boffu asked.

Can you tell us a little about Demps Offshore?

 Demps Offshore Services is a man management company from Navi Mumbai – India, catering mainly to the Oil & Gas industry. We also have our international presence in South Africa. We will be shortly opening our office in Dar es Salaam, Tanzania as well.

Over the period of just ten years we are in the position to provide host of offshore personnel for dredging projects, upstream, midstream & downstream.

Managing the entire HR aspects which includes shortlisting, client approval, documentation, medicals, insurances, travel formalities, maintaining required crew strength, crew rotation schedule, crew change, payroll, etc. on behalf of our clients has been the focal point of our services. Our concept / intention is to ease out the pressure of managing the required man power & give the client room for focusing on other important issues.

 What are the biggest projects Demps Offshore has handled & how many people did you hire for the project?

 The project handled by Demps Offshore are as follows:

PROJECT LOCATION YEAR TOTAL CREW PROVIDED FOR PROJECT
PRP Offshore pipeline replacement Mumbai High, India 2008 to 2011 20 to 45
Pipe Laying / Cable Laying /SBM / Top Side / Jacket Installation / South Pars, Iran 2010 to 2014 22
Dredging + LNG Terminal Construction Jafrabad, Gujarat, India 2017 to 2018 65
Offshore Drilling Kish Island 2017 to 2018 45
Dredging & LNG Terminal Construction Jafrabad, Gujarat, India 2018 (On going) 27+
Dredging Abu Dhabi, UAE. 2019 953 (Recruitment only)

 There are so many manpower companies out there, why should oil companies or their major contractors (EPC) choose your company instead of others?

 Demps Offshore has demonstrated their know how, understanding & expertise in providing & managing manpower for all segments of oil & gas & in addition dredging project. There is no other manpower company who are proficient in giving all mentioned services under one roof. We completely out class our competitors.

Like any other country when major projects such as pipeline construction or LNG come on stream, the government wants its citizen to benefit. As it concerned to pipeline welding project, it you are supposed to supply local workforce, how would you manage to supply welders & fitters from Tanzania.

 In any profession career starts at the lowest level which is called trainee to apprentice. This level is safe level for a fresher to understand the work profile & exploring correct working methods. In similar way we intend to hire locals & develop them gradually with periodical test & certification. By doing so we manage a “WIN WIN” situation to all (Local Tanzanian people, Government with respect to employment & revenue in the form of tax, Client for getting competitive labour cost, Contractor for providing competitive quote to the client due to the availability of local manpower). By tapping the local resources of manpower we up lift the human development index.

You mentioned  that you have presence in South Africa and  also you are  opening  Tanzania branch . Can you tell us why Tanzania?

There are several attributes to this questions namely, to qualify in getting contracts. It is only possible if you have a local company. Use the local man-force available thus cutting cost on employment visa & travel cost. Great potential in doing business in Tanzania.

Managing Work Stress And Make Your Job More Enjoyable

 

Bhakti Shah, Managing Director, Impact Afya Ltd

Ms Bhakti Shah, Managing Director of Impact Afya ltd,  talks to  the Oil and Gas East African Network (OGEAN) about minimizing health risk  and increasing productivity  and improving performance of the employees at the oil and gas workplace. 

 

 ImpactAfya Ltd is a Corporate Wellness Solutions Provider, based in Dar es Salaam.

Hussein Boffu asked,

1.As the country’s oil and gas expands, with new employees joining the oil and gas workplace for their first time. Do you think that is vital for oil and gas companies to develop wellness program relevant to new and local workforce?

 

Yes of course – working in the oil and gas sector is extremely demanding and this is substantiated by the fact that the utilization of wellness services in this sector is increasing rapidly around the world.

As the Oil and Gas industry expands in Tanzania, it will attract Tanzanians from across the country and expatriate staff.  Looking at the industry trends in other parts of the world, The prevalence of both physical and psychological stressors is expected to increase and will lead to numerous health risks, which in turn will negatively affect the productivity and performance

Research from the World Health Organization shows that one in five people worldwide are living with mental health issues.  Modern workplaces are increasingly challenging and personal lives in this sector experience isolation and loneliness.  Almost a quarter of adults are not physically active to prevent illness and one in three people are usually distracted at work by their financial situation.  This applies to Tanzania as well, where the Tanzania Demographic and Health Statistics has reported a 16% probability of dying in the economically productive age-group of 30-70 due to non-communicable diseases.

Employees and their dependents in the Oil and Gas sector need assistance with work-life issues, including family support services and substance abuse intervention, nutritional issues, including weight management and dietary consultation as it relates to disease prevention and management.  Family and relationship issues such as eldercare, childcare and addictions are also of concern in this sector due to the nature of work demands.

Employers in Oil and Gas industry must examine existing policies, practices and objectives as they relate to working conditions, retention and attraction, and socio-economic factors.  Risk management strategies, as they related to each of the issues, should be identified, as well as factors including a well thought out wellness program will contribute to organizational success in general.

 

2.What are the importance of collaboration among human resources, operational management and other departments within organizations in improving health and productivity of the employee at workplace?

With the rapidly changing business environment, oil and gas companies are transforming to being decentralized and agile.   As a result, human resources function has evolved from being purely administrative role to that of a strategic business partner that demands interaction across the organization for improved efficiencies and performance.

Workplace health and safety policies and programs are of critical concern where heavy industrial construction and technical competency are fundamental components of the work environment.   The Oil and Gas industry operates under very strict safety standards and government regulations to ensure the well-being of workforce…

The industry makes use of many different activities in all the sectors of the business cycle: from upstream to downstream. Health, safety and environment standards are applied at all levels of operations and therefore departments must collaborate together to implement programs that promote health, safety and resultant productivity.

 

3. According to IPIECA, fatigue  is the state of tiredness that is associated with long hours of work, prolonged periods without sleep and requirement to work when would normally be resting.  How can organizations manage fatigue risks especially in oil and gas operations that employ workers in geographyically remote areas?

 

The American Petroleum Institute defines fatigue as: “reduced mental and physical functioning caused by sleep deprivation and/or being awake during normal sleep hours.  This may result from extended work hours, insufficient opportunities for sleep, failure to use available sleep opportunities, or the effect of sleep disorders, medical conditions or pharmaceuticals, which reduce sleep or increase sleepiness”.

Fatigue is associated with shift work and overtime and links have been identified between fatigue and industrial disasters.  Fatigue is also associated with medical conditions such as diabetes, obesity and hypertension.

Fatigue is determined by a multitude of Work-related factors such as shift schedule design, overtime and on-call arrangements, commute, environmental conditions and access to food and water, type of work, task design, staffing levels, breaks within shifts, safety culture, pay structures, commitment to fatigue risk management, sleep environment and individual factors such as sleep environment, sleep disorders, health, domestic and social commitments, commute, commitment to fatigue risk management, sleep hygiene, age, secondary employment.

 In order to provide comprehensive protection from the impaired performance caused by fatigue, an organization should carry out a risk assessment and then institute fatigue risk management plan which gives consideration to all these factors. An effective fatigue risk management should recognize that fatigue is the joint responsibility of employers and employees and that communication, consultation and commitment on both parts are essential.

The fatigue risk management plan should take into account operational experience and practicalities and should be integrated into corporate safety and health management system.

4.Some offshore specialists routinely move from one installation to another and tend to have no fixed work and leave cycle how does that impact performance of the employee?

 

Most offshore personnel are employed long-term on one installation, where their work schedules form a regular pattern.  The schedule is usually planned months in advance.  However, specialist personnel working on ‘ad-hoc’ basis are required to travel to different installations where and when required to meet particular operational needs.  Consequently, these personnel are likely to work irregular and/or unpredictable schedules.

The working time arrangements operated in different areas worldwide depend largely on factors such as travel times and distances between the installation and the shore, employees’ home location, the mode of travel and prevailing weather conditions, along with local and national employment practices.  Most schedules are based on equal-time work/leave cycles for employees.  In general, specialists tend to work on longer rotations so as to reduce the time and costs involved.

Long work hours are an integral feature of offshore employment, irrespective of a particular work schedule.  Fatigue is potentially a serious problem for all offshore personnel.

Work on offshore installations involves potentially hazardous production and/or drilling operations.  The intensive work patterns, the nature of tasks involved, and the effect of fatigue, are potential sources of risk to the safety and well-being of personnel.  There is the operational risk of explosion, fire, structural failure, shut-down, reduced productivity resulting from human error and impaired performance, and risk to the physical and psychological well-being such as injury, illness, sleep disturbance, anxiety.  Moreover, the family problems resulting from the offshore lifestyle may indirectly on the well-being and work performance of the offshore specialist.  Long hours and fatigue may impair performance during the offshore work and may carry over into travel during and adjustment to, shore breaks.

On arrival offshore, workers need time to recover from travel fatigue, to adjust to work routine, and to become familiar with any operational changes that occurred while they were away.  This adjustment typically takes 2-3 days from the period of shore leave and during this time, work performance may be adversely affected.

 

Recovery from fatigue requires adequate rest to replenish mental and physical exhaustion.  A period of recovery makes people feel capable and ready for the next phase and prevents the accumulation of fatigue and the serious health consequences as a result.Rest and recovery does not necessarily mean doing nothing. Time spent on social and physical activities that are enjoyable facilitate recovery and well-being and performance on return to work.

5.What advice would you offer to Senior Management who would like to improve employee health outcomes and productivity?

 

Considering the occupational, physical and psychosocial stressors in this industry, employee wellness programs are a strategic imperative.  A pro-active approach promoting employee wellbeing through a variety of well thought out initiatives and interventions will drive employee productivity, engagement and retention and meet new social expectation.  Adopting a long-term strategic approach to employee health and well-being is key to ensuring that your organization and its people thrive.