While Pretromar is not one of the most known names in the Angolan oil industry, the company is an oil contractor with an important role in the development of the country's oil industry infrastructure. Important deep sea discoveries in recent times indicate that this is likely to continue. Could you start by giving us a brief history of Petromar, its objectives and the main stages of its development.
Petromar was founded in 1983, as the first joint venture between Sonangol (the Angolan state owned oil company) and Bouygues Offshore the French oil and gas contractor. The purpose of the company in 1983 was to develop the country's ability to design, construct and install offshore oil platforms. Initialy Sonangol had 10% of the equity and Bougues Offhsore had the remaining 90%. Since 7th February 2001, Sonangol has increased its share to 30% of the equity.
Petromar first invested in a construction yard in Ambriz about two and a half hours north of Luanda. For about 10 years we built several jackets (metallic supports for offshore oil rigs) for Elf, Texaco and Chevron. We had up to 700 people working in this facility.
You built jackets for which exploration blocks?
We built several platforms for Elf in block 3, for Chevron in block 0 and two for Texaco in block 2. These were all shallow water developments. Then, in late 1992 the construction yard was completely destroyed by rebels.
What was the estimated loss in capital?
Several million dollars but the exact figure is confidential. The entire investment was lost.
From 1992 to 1994 we had a difficult time. Since 1994, we have reorganised ourselves with smaller construction yards. We now have three workshops; one in Malongo for block 0, one in Soyo and one in Luanda. Instead of building the main platforms we now do modifications to platforms such as extending a structure or adding equipment to a platform. The modifications are manufactured in our onshore workshops and installed offshore for our clients.
So you don't actually have a construction yard in Angola anymore?
We only had workshops from1994 to 1998 employing a total of 400 people. In 1998 Petromar was awarded a very important project in block 17 which marked the return of the company to large scale projects. The contract was awarded by Elf for the construction of 14 bundles connecting oil wells at the bottom of the Girassol field in block 17. These are interconnecting underwater pipes ranging from 2 to 3 kms long so this can be considered a large construction project. It is being carried out at our workshop in Soyo, located at the mouth of the Zaire river.
Deep sea oil extraction is a very recent activity in the oil industry. How recent is the technology you are using for this contract?
Bundle technology has been used in the North sea and in the Gulf of Mexico but never at this depth with the temperature constraints that that involves. So this is the first time ever that these types of bundles are being installed. The design is done in France by our mother company Bouygues Offshore but the actual construction will be done in Soyo, Angola by Petromar.
At what depth are these new bundles going to be installed?
1300 meters below sea level.
How deep are the bundles currently in operation in the Gulf of Mexico and the North Sea?
Approximately 600 meteres below the sea level. | What is the water's temperature at 1300 meters below sea level?
The water is at 2 or 3 degrees centigrade and the oil had to be kept at 70 degrees during the two or three kilometers it travels from the well to the main shaft and then another 1300 meters up to the floating platform. This is a very big technological challenge.
What is the value of this contract for Petromar?
It is about US$35 million which compared to our annual turnover of US$40 million represents a big project for Petromar.
How long will it take to complete the contract?
About two and a half years. We deliver the first seven bundles in April 2001 and the remaining seven the following month in May.
What role has Petromar had in training Angolans to become skilled construction engineers for the oil industry?
In 1983, Petromar had 20% Angolans and 80% foreigners. In 2001 we have 86% angolans and 14% expatriates. During the first ten years we trained a lot of welders and pipe filterers. Since 1994 we have been training skilled technicians such as electricians and mechanics.
In 1998, you decided to build a new production facility in Soyo despite your facilities there being destroyed in 1993 by rebels. A more stable security environement could be attributed to this decision. Can you comment on that?
The situation in Soyo since mid 1998 has been fairly stable. Bundle technology can only be assembled close to the production site because it must be towed from the assemly plant to the oil field. Bundles are not like an oil platform that can be built in Korea and installed in Angola. Therefore we have to manufacture the bundles in Angola.
The idea is also to re-use this production facility for future bundle or flow line contracts. The Dalia oil field is similar to the Girassol field so there will be opportunites there for further bundle contracts. If the technology is successful, maybe BP or Exxon or other companies will use this technology.
How does Bouygues Offhsore's investment in Angola rank amongst the company's overseas investments?
If you look at the last four years, Petromar has had the main portion of Bouygues Offshore's investment in production facilities. We have invested in a new workshop and a new head office in Luanda and in the production facility in Soyo.
What are Petromar's challenges for the future?
To keep our leading position in the maintenance of oil platforms in Angola. Maintenance is not as publicised as the construction of new oil platforms but it is a key activity for Petromar because the contracts are long term. We also aim to develop our bundle technology expertise and try to bring new technologies to other aspects of deep sea oil equipment and facilities. We will also be aiming to help Angola's oil industry meet an increasing amount of its needs within the country. Unlike in other parts of the world this is a priority which always comes up and we wish to continue participating in making it a reality. |
