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INDUSTRY REVIEWUPSTREAM OIL & GAS


However, according to Steve Harley,


president, energy sector, customer solutions and innovation, for DHL, the picture of an industry now moving away from very large projects is not universal. “There are still some major projects out there which are continuing to attract finance,” he said. In Africa, for instance, examples include


large projects in Mozambique which are close to seeing final investment decisions, and oil and gas developments in the Senegal/Mauritania basin. Elsewhere in the world, he continued, exploration work is going on in Brazil and global oil company ExxonMobil is investing heavily in offshore oil exploration and production in Guyana. “Globally, there is also a trend in the


upstream sector towards extending existing fields – in fact that is where a lot of the immediate activity is taking place,” he added. When asked what overall new


requirements logistics providers servicing the upstream oil and gas project market are being asked to meet, Harley suggested collaboration is a key issue. “The oil and gas companies want to learn


from us, they want to see what we are doing in terms of digitalisation, what innovation we are doing; they want to discuss those topics and work more closely with us,” claimed Harley.


Exact costs William Hill, executive group vice president, GAC Energy, said customers also increasingly want to know the exact costs and timeframes for each operation, “so we are observing a wider trend towards inventory management and the reduction of working capital”. In other words, continued Hill, the industry is increasingly asking if there is a


100 January/February 2020


Customers increasingly want to know the exact costs and timeframes for each operation, “so we are observing a wider trend towards inventory management and the reduction of working capital”. –William Hill, GAC Energy


cheaper way of carrying out a similar project next time. “For suppliers, that lays down a challenge


to provide a continuous refinement of processes. One of the ways we can meet that new demand is to work with operators to forecast the future more accurately and thereby increase the whole sector’s ability to support multi-phase, short lead-time projects,” said Hill. Geodis’ Abreu made a similar point,


suggesting that logistics providers are now expected to bring significantly more to the table for the client – to effectively being a


partner in projects. “The oil and gas industry requires


logistics providers to be much more engaged with the project, with key performance indicators (KPIs), cost evaluations and full project control, and so on,” he said. At a more basic level, Abreu also


confirmed that logistics providers, like other upstream oil and gas industry suppliers, continue to be under pressure in terms of costs. “Although the industry is a lot more cheerful than it was a year or two ago, it is still working hard to make sure the cost per barrel when it comes to drilling and production continues to be reduced, which means it is also looking to reduce the cost of all services, including logistics.” Expanding on this, José Luis Vidal,


managing director of WV Logistics & Services, said that as a result of the 2014 downturn, oil and gas companies have sought ways to improve the cost-effectiveness and productivity of their operations in order to remain competitive.


Strategic partnerships “As a logistics provider, we have looked to meet those requirements through the development of strategic partnerships with other players to optimise business and operating costs while maintaining efficiency and consequent productivity,” he stated. For example WV Logistics is working in


partnership with a port terminal strategically located on the edge of the RJ & Santos Basin in the heart of the Brazilian pre-salt area. It is being developed to provide a logistics support base for upstream oil and gas operations in the region. “That partner recently secured certification for a bonded licence,” Vidal added.


www.heavyliftpfi.com


HLPFI


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