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N O 12 , 3 R D Q U A R T E R 2 013

AFRICA
INDUSTRY PERSPECTIVE

NEW FRONTIER FOR AFRICAN OIL AND GAS

Importance of Local Content

AN INTERVIEW WITH ERNEST NWAPA, EXECUTIVE SECRETARY OF THE NIGERIAN CONTENT DEVELOPMENT AND MONITORING BOARD

GROWING BUSINESS IN AFRICA

INTERVIEW WITH MARTIN ADLER, CHIEF COMMERCIAL OFFICER AT DOCKWISE

The 23,000t Lucius Truss Spar, measuring 184m (605ft) long and 34m (110ft) in diameter, was loaded onboard the Dockwise Mighty Servant 1 by means of skid-on operation at Pori, Finland. About 6 weeks later the spar was discharged at Ingleside, Texas, USA where it was delivered back to Technip. Due to the restricted clearance space at Ingleside the engineering team at Dockwise developed an innovative approach whereby the spar was unloaded over the side instead of the conventional stern float-off execution.

VIEW THE PHOTO GALLERY

PRESS RELEASE BOSKALIS

DOCKWISER 2

FOREWORD
This Dockwiser Africa edition focuses on the oil and gas boom in East and West Africa. The feature (P15), New Frontier for African Oil and Gas, highlights industry developments in East and West Africa along with investment from emerging economies and an overview of the top African oil and gas producing nations. The successes in West Africa particularly in Nigeria and Angola have paved the way for additional countries to develop their hydrocarbon resources. Recent findings in East Africa such as Mozambique and Tanzania are a perfect example of the continents promising future. In an interview with Dockwises CCO, Mr. Martin Adler (P25-P26) shares his vision to support the international oil and gas community in Africa. Throughout this issue we share industry perspectives based on exclusive interviews with African leaders (P27-P31). In addition, new horizons are explored together as Boskalis management talks about the importance of Africa in a collection of interviews consisting of Boskalis CEO, Peter Berdowski and two top managers active in Africa (P36-P37). In this editions DockTalk, Dockwise employees share developments pertaining to sustainability (P32-P34) and FPSO dry-docking (P9-P10).

CONTENTS
DOCKNEWS
P5 - P8
NIGERIAN FIRMS PROSPER FROM OFFSHORE OIL BOOM
P11 - P12

FPSO DRY-DOCKING
P9 - P10

DOCKTALK
FPSO DRY-DOCKING P9 - 10 DRIVING SUSTAINABILITY P32 - 34

INDUSTRY PERSPECTIVE
FINANCIAL DISCIPLINE, INTEGRITY AND RESPECT. P27 - 29 IMPORTANCE OF LOCAL CONTENT P30 - 31

EXPLORING NEW HORIZONS TOGETHER

NIGERIA IS AND WILL REMAIN AN IMPORTANT MARKET FOR BOSKALIS P36 - 37 WE ARE NOW ABLE TO OFFER FULL PACKAGE SOLUTIONS TO CLIENTS P38 - 39 AFRICAN PEOPLE ARE ENTREPRENEURIAL AND ALWAYS READY TO DO BUSINESS P40 - 41

TOTAL AF

2002 376

2012 449

AFRICA FEATURE
NEW FRONTIER FOR AFRICAN OIL AND GAS P16 - P17 EMERGING INVESTMENT P18 - P19 WEST AFRICA GROWING P20 - P21 EAST AFRICA RISING P22 - P23 TOP AFRICAN OIL & GAS PRODUCING NATIONS P24 GROWING BUSINESS IN AFRICA P25 - P26

TOP AFRICAN OIL & GAS PRODUCTION NATIONS

P24

+ TOTAL AFRIC

DE

We hope you enjoy reading this Africa edition.

Editorial Team

2002 376.8 2002 138

2012 449 2012 216

FROM THE CEO

Dockwise has been recently acquired by Royal Boskalis Westminster N.V. to expand their offshore assets, capabilities and service offerings. We recently concluded the first phase of the integration and are currently in the second phase, which is progressing smoothly, on schedule and as planned. Dockwise brings, from a market perspective, specific offshore ingredients and knowhow to Boskalis. Apart from transportation, which is a specialty in itself, we are identifying synergies that can be formed around the existing services provided by both organizations. To accomplish this, a dedicated group thoroughly investigated market opportunities in the first phase to present the combined added value to clients. Specialist coming together under one umbrella could provide the optimum single source solution, reduce interface risk and in the end be more cost efficient than the individual ingredients separately.
REGARDS,

Clients are interested in what the combination of Boskalis and Dockwise can do for their project. In short, we have the potential to now deliver interface and project cost optimization, which are key criteria to run a successful project.

Once the integration process comes to a full circle, Boskalis together with Dockwise will be able to offer a value proposition unlike any other. We will in essence create new horizons by realizing the inconceivable together.

The proven experience of both organizations will create new synergies that offer a convincing and truly unique value proposition under one umbrella for our clients in the energy and ports industries.
Looking into Africa, Dockwise has established a track record in the African offshore market in both heavy marine transport and installation of offshore platforms. We have been involved in offshore developments in Nigeria, deep offshore projects in Angola and delivered drilling equipment and cranes to various locations throughout the continent. Together with Boskalis, we can provide even more services in the future. At the same time, we can possibly support Boskalis in countries such as Nigeria and elsewhere with Dockwise services and in doing so broadening service arrangements to clients.

ANDR GOEDE
CEO DOCKWISE

DOCKWISER 4

DOCK NEWS
SUPER-POST PANAMAX CRANES
Four new super-post Panamax cranes for Savannah GA were loaded onboard the Dockwise Teal in Nantong, China. The top sides of the cranes were lowered to safely pass the Sutong Bridge across the Yangtze River as well as the Eugene Talmadge Memorial Bridge across the Savannah River. Designed by Konecranes of Finland and assembled in Nantong, China, these enormous cranes can reach across a vessel loaded with 22 containers next to one another and lift cargo weighing up to 66 tons to a height of 42m above the dock. Each crane weighs 1,388 tons and measures 132m wide and 56m tall. The voyage took about 50 days to arrive in Georgia, USA and went around Cape of Good Hope.

PHOTO: FOUR SUPER-POST PANAMAX CRANES ARRIVE IN GEORGIA, USA.

DOCKWISER 5

NETHERLANDS ECONOMIC MISSION TO MOZAMBIQUE UPCOMING EVENTS

Offshore Energy OTC Brasil
Riocentro, Rio de Janeiro, Brazil

October 15-16, 2013 October 29-31, 2013

Amsterdam RAI, Amsterdam, the Netherlands

Hein Heyster, Senior Sales Manager at Dockwise: Participating, together with Boskalis, in the economic mission to Mozambique was a good opportunity for offshore experts, such as Dockwise, to understand the local needs in Mozambique.
The Netherlands Ministry of Foreign Affairs invited a delegation of specialized players of the Dutch offshore industry to visit Mozambique on an economic mission with a focus on the oil and gas industry and maritime infrastructure. The rising demand for knowledge and expertise in this sector within Mozambique is where these companies can be of assistance. Through decades of national and international experience, the Dutch specialized companies have obtained extensive in-depth knowledge to help Mozambique grow.

Paper Presentations at OTC Brasil

Float-over Feasibility in Brazilian Water Session #09: Constructability and Design Considerations October 29, 2013 2:00 pm Room 208 Offshore Dry-docking of FPSOs Session #26: Brownfield - Debottlenecking for Safely Extend the Operational Lifetime October 30, 2013 2:00 pm Room 202 B

ADIPEC Marintec China

November 10-13, 2013 December 3-6, 2013

ADNEC, Abu Dhabi, United Arab Emirates

DOCKWISER 6

DOCKWISE PEOPLE GO AROUND THE WORLD

One of Dockwises employee, Diederik Muijsson (Deputy Site Manager / Senior Electrical Supervisor, FS), is a real globe-trotter. The journey for Diederik, his wife Anne Mara, and two children Olivier (8) and Florine (4) started in 2010 in Ulsan, South Korea. Diederik was responsible for the electrical and outfitting of the new built Dockwise Vanguard vessel. After the delivery of the Dockwise Vanguard, Diederik and his family took some short time off in the Netherlands, but the next challenge was already on the agenda. Despite the cultural differences Diederik and his family thinks it is a fantastic opportunity, adventure and experience for both himself and his family, which they would not miss for the world. This time, the adventure brought them to Guangzhou, China to manage the construction process of a new type-1 vessel, the Dockwise White Marlin.

Greetings from Guangzhou!

WANT A GLOBAL CAREER?

Diederik, Anne Mara, Olivier and Florine

YET ANOTHER MILESTONE FOR THE DOCKWISE VANGUARD

After two years of preparation, Dockwise was awarded a contract to transport the Moho Nord Floating Production Unit (FPU). This transport marks the first mono hull production floater booked onboard the Dockwise Vanguard. The FPU hull is 250m long by 62m wide weighing 82,200mt. The transport will take place in the first quarter of 2016 and will go from the Hyundai Heavy Industry yard in Korea to Port Gentil, Gabon, with an offshore discharge option in Congo.

DOCKWISE VANGUARD

WATCH THE MAIDEN VOYAGE ONLINE

DOCKWISER 7

A NEW BRAND PROMISE

Dockwise has evolved over the years from being a Heavy Marine Transport company to a full service Marine Contractor for the oil and gas industry. As we grow as an organization, so does the manner we engage with our stakeholders. To continue our success and support our growth ambition, we need to work closely with customers, partners and vendors. To capture this paramount key success factor, Dockwise has recently launched a new brand promise:

We have incorporated our new brand promise to our website, LinkedIn, YouTube and other communication channels including this Dockwiser edition. Via these channels, we will share Inconceivable Journeys, a collection of stories that bring our promise to live. Furthermore, it has been engrained into our Mission Statement: Creating superior value by realizing the inconceivable together. Now being part of the Boskalis Group, we will continue to deliver world class services our customers have come to expect with a keen focus on together, because we cannot realize the inconceivable alone.

WATCH OUR CORPORATE MOVIE AT DOCKWISE.COM

THE INCONCEIVABLE JOURNEY

DOCKWISER 8

DOCKTALK

FPSO
GAME CHANGING OFFSHORE SERVICE
DOCKTALK WITH HANS LEERDAM, SALES MANAGER OFFSHORE PROJECTS

WATCH THE DOCKWISE VANGUARD ANIMATION ONLINE

A tanker-based Floating Production Storage and Offloading system (FPSO) is an important asset in developing marginal, large and remote offshore oil fields. The FPSO is a floating facility mainly installed near oil and gas production wells to receive, process, store and export hydrocarbons. Most FPSOs consists of a shipshape hull permanently moored on-site via a free weathervane or fixed heading mooring system. At present, there are nearly 200 FPSO units operating around the world.

DOCKWISER 9

Trends FPSOs have traditionally been used in oil producing regions that lack an established pipeline network (China, Brazil, Indonesia, West Africa, Australia). In the early 70s, FPSOs were developed in small fields (20-80 million barrels) and in regions with mild environments and shallow waters as an intermediate solution to start up oil field production. Continuous improvements in mooring systems, fluid swivel technology, and offloading systems have greatly increased the reliability and confidence in these systems. FPSO technology is now a dedicated solution for both large and small field developments in harsh and deepwater environments. With the increased presence of FPSOs in remote areas and the lack of a support infrastructure, mobile drydocking support for FPSOs can be the solution for unit owners or operators. Repair yards can be located far away from the FPSO resulting in significant downtime if the unit is disconnected. Also shutdown of the oil field should be avoided wherever possible, as damage can occur to the reservoir and wells. FPSO Dry-docking With the significant presence of FPSOs in remote areas often lacking support infrastructure, Dockwise innovated a completely new service: FPSO dry-docking. With the Dockwise Vanguard, the latest edition to the fleet, Dockwise is uniquely positioned to offer the industrys first offshore and quayside dry-docking service for Inspection, Repair and Maintenance (IRM) opportunities. As the floating unit is safely secured on the vessels deck, dry access to critical items of the floating structure is achieved.

While dry-docked offshore, the unit remains connected to its mooring and turret system while keeping the riser systems intact and with the possibility of continuing limited production. Furthermore, the FPSO will still be capable to freely weathervane around the turret mooring. Alternatively, the vessel can also support quayside drydocking by dry-transporting to a nearby designated facility. In this option, local content is stimulated, transit time is reduced and consequential off-hire and production losses are decreased.

Approval in Principle Dockwise obtained an Approval in Principle (AiP), for this completely new offshore service from ABS as a result of commissioning a Hazard Identification (HAZID) safety assessment. The assessment took place in the presence of a multidisciplinary team of experts and witnessed by representatives from two major oil companies. Joint Industry Project Taking dry-docking innovation further, Dockwise commenced a Joint Industry Project (JIP). This project will focus on the criteria for the float-on and discharge of a floating structurebased on a converted VLCC vessel FPSOon the Dockwise Vanguards deck. Confirmatory model tests in an international recognized model basin are included in this phase.

OFFSHORE DRY-DOCKING ENABLES FPSOS TO OPERATE AT DIFFERENT CONDITIONAL MODES.

Offshoredry-docking has the potential to help our customers save valuable time. And in the oil and gas industry, time is money.

Hans Leerdam Sales Manager Offshore Projects

DOCKWISER 10

THE GROWTH OF NIGERIA'S RICH DEEPWATER SECTOR HAS HAD A BIG IMPACT ON THE NATION'S HOMEGROWN OIL AND GAS COMPANIES.

NIGERIAN FIRMS PROSPER FROM OFFSHORE OIL BOOM

As Nigerias offshore sector has expanded, so too has the nations indigenous oil and gas industry. From exploration and production, right through to transportation services, the local energy sector is rightly enjoying some of the benefits of the nations huge oil and gas wealth. After all, it was never the intention of the government to design local content policies exclusively for onshore operations. But the daunting prospect of deepwater operations is an entirely different proposition to traditional onshore work, even in challenging environments like the Niger Delta. Still, it is a transition process that has been underway for some time now. Its almost 10 years since Shell launched production from Nigerias first deepwater project, Bonga, back in 2005, which overnight lifted the nations oil capacity by 10 per cent. First discovered in 1995, the field sits in water depths over 1,000 metres, over an area of 60 sq km, and can now produce more than 200,000 barrels of oil a day (bpd) and 150mn standard cubic feet of gas a day. Although the field is owned by big international oil companies (IOCs), led by Shell, indigenous firms played a vital role in its development. Three of the big Bonga modules were designed and built in Nigeria, for instance. So too were the foundation piles for the floating production storage and offloading (FPSO) vessel, as well as the risers, and the giant single point mooring buoy, the largest in the world at the time for deepwater operations, weighing in at about 870 tonnes.

Local Engineering Boost In fact, the Bonga project helped create the first generation of Nigerian oil and gas engineers with deepwater experience, according to local industry experts. When work first commenced, the country had very few contractors with the technical capacity or scale to support such an enormous offshore development. Shells upstream unit, Shell Nigeria Exploration and Production Company Limited (SNEPCo), actually began training local engineers for Bonga as early as 1999. By the end of 2011, some 90 per cent of the projects core offshore staff were Nigerian. Perhaps even more importantly, Bonga also stimulated the growth of other support industries, so vital to all offshore projects. For the Bonga project itself, a modern onshore base for subsea equipment testing and maintenance was established at Onne in Rivers State in the Niger Delta. And these shore-based facilities are now thriving commercial hubs for the growing deepwater sector.Many of the small local companies that started out as Bonga took shape are now working for international clients on other big fields. In fact, strong local content has been used for all of Nigerias other major deepwater projects such as Agbami and Usan. More investment is on its ways too, with Shell recently confirming that it plans to go ahead with another deepwater project, Erha North Phase 2 in OML 133. The field, which is located over 100 km off the Nigerian coast, will eventually produce some 60,000 boepd. By Air and Sea Nearly a decade after the launch of Bonga, there is a growing air of confidence about Nigerias local services companies, and their ability to service the deepwater needs of the IOCs. Among the better known is Caverton
DOCKWISER 11

THE BONGA PROJECT HELPED CREATE THE FIRST GENERATION OF NIGERIAN OIL AND GAS ENGINEERS WITH DEEPWATER EXPERIENCE.

Helicopters, which works closely with Shell on its offshore contracts. Headquartered in Lagos, it is the first wholly indigenous civil helicopter company to work in the oil and gas industry. This year, it became the only certified Agusta Westland Service Centre in sub-Saharan Africa, opening up a new state-of-the-art purpose-built hanger outside Lagos, to service aircraft built by the Ango-Italian chopper group. The centre now provides maintenance and repair services to operators across the region. And there are ambitious plans for continued growth still. Caverton this year placed an order for an additional three AW139 helicopters - ideal forserving deepwater oil and gas installations with their long range - to add to its existing fleet of six, in order to better serve offshore clients.Cavertons executive vice chairman Adeniyi Makanjuola called it another major milestone for his company, as it seeks to broaden its client base and increase capacity. As well as up in the air, the same trend is being seen on the waves too. One company looking to modernise its fleet in a similar fashion is Seabulk Offshore Operators Nigeria Limited, which counts Chevron and ExxonMobil among its client base. The companys roots date back more than a decade but it was only in 2008 that it was taken over by Nigerian ownership. Since then, management has actively sought to modernise the fleet, introducing state-oftheart dynamic positioning (DP) vessels and highspeed supply boats, a measure of the companys confidence and ambition. The companys first DP2 PSV, The AlKat, acquired in 2012, is currently working offshore for Chevron. Deepwater E&P Sector And it is not only in the services sector that Nigerias entrepreneurs are making an impact. New and emerging

locally-owned exploration and production companies are also starting to gain a foothold in the testing deepwater sector. This is no easy undertaking with most local producers content to focus on opportunities onshore, in areas passed on by the IOCs, or perhaps those places deemed to hazardous for foreign companies. That should not mask their ambition, however: Atlantic Energy, for instance, which holds assets in the western Niger Delta, hopes to achieve 150,000 barrels of oil equivalent per day (boepd) by 2015. And, just as the deepwater sector is a dauntingly challenging prospect from a technical perspective, it is a financially costly proposition to aspiring oil companies too.

THE BONGA PROJECT HELPED CREATE THE FIRST GENERATION OF NIGERIAN OIL AND GAS ENGINEERS WITH DEEPWATER EXPERIENCE.
But it Can Be Made to Work. South Atlantic Petroleum Limited (Sapetro) has a small equity stake in Totals deep offshore Akpo field in Block OML 130, for example. This deepwater field has a plateau production of around 180,000 barrels per day (bpd) of condensates. Sapetro is also exploring for hydrocarbons beyond Nigerias borders, again a measure of growing confidence among these niche producers. Last year, it signed up the Juan De Nova permit offshore Mozambique, a new up and coming gas province on Africas eastern flank, to add to another overseas project, the redevelopment of the Seme field in Benins Block 1. Another contender is Dangote Equity Energy Resources, a part of the large and

diversified Dangote Group, which also includes various oil and gas services ventures. Upstream, Dangote holds equity in blocks in the Joint Development Zone (JDZ), a largely virgin offshore territory located between Nigeria and Sao Tome and Principe. It holds a nine per cent interest in JDZ Block I, where it partners Chevron and ExxonMobil and where an initial discovery has been made - and a 10 per cent stake in JDZ Block 3, where it partners operator Anadarko Petroleum. It also holds a small stake in one deepwater exploration block off Nigeria (Block 315), where it partners Petrobras and Statoil. Although the company is yet to taste first production from these deepwater areas, it is backed by substantial resources from the broader Dangote Group; the highly successful cement division is heading for a UK stock market listing this year, for example. At the World Economic Forum earlier this year, Dangote Group president Aliko Dangote expressed his confidence in the countrys private sector to make Nigerias economy strong. With local oil and gas industry players on the ascendancy - from upstream producers, to engineers and manufacturers - its a trend that is already happening.

DOCKWISER 12
THIS ARTICLE IS REPRINTED WITH KIND PERMISSION FROM OILD REVIEW AFRICA. IT FIRST APPEARED IN ISSUE THREE 2013 OF SAID MAGAZINE.

AFRICA FEATURE
NEW FRONTIER FOR AFRICAN OIL AND GAS
P16 - P17

EMERGING INVESTMENT
P18 - P19

WEST AFRICA GROWING

P20 - P21

EAST AFRICA RISING

P22 - P23

TOP AFRICAN OIL & GAS PRODUCING NATIONS

P24

GROWING BUSINESS IN AFRICA

P25 - P26
DOCKWISER 15

AFRICA FEATURE

NEW FRONTIER FOR AFRICAN OIL AND GAS

Africa has historically been referred to as a continent rich with minerals, including fossil fuels, although the exact economic potential of these resources is not known. New discoveries of oil and gas in Africain locations never before thought to hold such resources in signicant amountsprove that the continent is still virgin in many aspects regarding exploration and exploitation of oil and gas resources.
DOCKWISER 16

Oil and Gas Boom Africas rich oil elds and the prospects for more discoveries have transformed it into a key target in global oil production and resource extraction. Oil production in the continent is expected to continue to rise at an average rate of six percent per year for the foreseeable future. The majority of oil reserves (and production) in Africa comes from Libya, Nigeria, Algeria, Angola, and Sudan, which together produce more than 90 percent of the continents reserves. Proven natural gas reserves in Africa are mainly concentrated in four countriesAlgeria, Egypt, Libya, and Nigeriawhich possess above 90 percent of the continents proved reserves. In particular, Nigerias undeveloped natural gas reserves are a logical target of the international giants in the sector. Furthermore, large deposits of natural gas have been identied in Tanzania; signicant oil deposits found in Albertine Graben in Uganda and in the western part of Ghana (offshore); and there are potential signicant oil discoveries in South Africa, Mozambique, and Tanzania. Challenging Environment A key concern regarding the governance of oil and gas resources is that the governments of African oil and gas producing countries receive an inadequate share of the large rents from production. This may stem from a number of reasons, including contracts and regimes that are not designed to extract maximum rents, and oil and gas policies designed primarily to promote and attract investments resulting in policies that have not changed with evolving global dynamics and national interests. The sustainable development of oil and gas resources requires policies, principles, and practices that support the utilization of resources in a manner that does not prevent future generations from beneting from the resources.

A great challenge, particularly for oil and gas producing African countries, is to ensure sufcient, reliable, and environmentally responsible supplies of oil and gas, at prices that reect market fundamentals.

To achieve this important goal, several challenges have to be addressed, including high and volatile oil prices; growing external and internal demand for oil and gas; increasing import dependence of many African countries; and, most importantly, sustainable management of the continents oil and gas resources for the benet of all. Despite the challenges and issues involved, an oil and gas resource boom can, under the right circumstances, be an important catalyst for growth and development. The often-referred-to natural resource curse can be avoided with the right institutions and policies. Several countries in Africa have demonstrated this and there is some reason for cautious optimism that more countries have learned hard lessons from past resource booms, and, in future, will pursue strategies and policies that will allow them to fully reap the benets of their natural resource wealth. Setting Priorities Today, Africa enters a new phase in the history of global oil and gas development as the continents industries and businesses slowly realign around increased selfdetermination. The drive to use some of the precious energy sought by foreign interests for internal domestic markets, while also capturing much needed capital from international oil and gas trade, will set the tone for the foreseeable future.

The first priority across most of Africa is to utilize the continents natural resources to improve local standards of living. Oil and natural gas are of little use to anyone, including Africans, without pipelines, refineries, electric power plants and other hardware that enable hydrocarbons to be moved, processed and converted to useful forms of energy and materials. Significant sums will be required to build modern energy systems on a continent that lags behind with regard to energy access; the guiding developmental frameworks must foster home-grown capital as well as attract money from abroad. Additionally, African governments, like the governments of oil and gas producing countries elsewhere, want a bigger slice of the oil and gas profits pie. And while they have many tools for getting more value out of their own resources, including influencing commercial arrangements, African governments will need to do a better job managing their resource wealth. Finally, and perhaps most notably, the landscape for oil and gas investment in Africa is diversifying. Long led by European and American interests, Africa is now home to Chinese, Indian and other new entrants competing for oil and gas projects and challenging the status quo.
DOCKWISER 17

AFRICA FEATURE

INVESTMENT
Foreign investment is essential for development and growth. The African Union (AU) is now developing a strategy for engaging China and other emerging economies such as India, Brazil, Russia, Malaysia and Turkey that have been looking at Africa for new markets and investment opportunities. The AU believes that a coordinated approach by member countries to relations with foreign investors would help develop the best practices by investors when it comes to technology transfer, employment of local labor force, expansion of domestic businesses and guardianship of local communities and environment. One of the most important goals appears to be the development of valueadding industries rather than simply exporting natural resources extracted by foreign companies.

Africa is set to bolster its strategic role as a world oil and gas supplier.

African countries offer access to hydrocarbons under contractual terms that allow international oil companies to realize attractive rates of return. With respect to world-class deepwater provinces, the number of international oil companiessuch as Total, Royal Dutch Shell and ExxonMobilwith financial resources that can handle the technological risks of these projects is limited. As long as host countries continue to offer access and competitive fiscal terms, international companies will continue to invest in these large projects.
DOCKWISER 18

Changing the Status Quo Africas natural resources endowment has established the foundation to build lasting relationships with powerful emerging countries. These relatively new relationships are shifting the balance of standing ties with developed countries. Historically, the African foreign direct investment landscape was originally composed of western investors.

Annual growth in labor productivity, 2000 to 2008

Europe U.S. Africa

1% 1.5% 2.8%

Emerging economies are keen to invest in the African economy and further support Africas growth ambitions.
As a result, emerging economies are changing the status quo with their deep pockets and ever increasing need of fossil fuels. In 2000, Chinese companies invested only in Sudan. Today, Chinese companies have upstream (exploration and production) and downstream (refining and other) interests in more than 30 countries. Chinese Leading Investments Chinas interest in Africa is not limited to the oil and gas industry; rather, it is taking an integrated approach to access critical natural resources and raw materials and establish economic investment opportunities in other segments of African economies. More than 1,000 companies from China are estimated to be active in Africa. Chinas economic relationship with Africa is growing at a breakneck pace. In 2012, the volume of tradeimports plus exportsreached USD 198 billion. Some estimates indicate trade volume could amount to USD 385 billion by 2015 if it continues to grow on its current trend. By comparison, trade between the US and Africa amounted to USD 108.9 in 2012.

Economies of sub-Saharan Africa ranked amongst the lowest in the World Banks 2010 Ease of Doing Business report.

Compounded annual rate at which consumer spending rose from 2005 to 2008.

16%

$1.6
Africas collective GDP in 2008, roughly equal to that of Brazil.

220
Africas number of telecom subscribers exceeded 450 million in 2009, up from 52 million in 2003.

million
Numbers of Africans who are able to meet only basic needs but will become consumers by 2015.

trillion

20
$72 billion
Foreign direct investment in Africa in 2008 - almost as large as the flow into China, relative to GDP. Four countries by the numbers Nigeria South Africa 2.6% Kenya

Numbers of African companies with at least $3 billion in revenue last year.

Compounded annual real GDP growth, 2000 - 2008 * Developed Latin America Africa Emerging Asia 2.0% 4.0% 4.9% 8.3%

Percentage of African households with discretionary spending power.

2000 2008 35% 43%

Revenue growth in African telecom industry at compounded annual rate over the last five years.

40%
10%
Oil

Average African inflation per year. 1990s 2000s 8% 22%

Percentage of worlds reserves in Africa

Algeria $5,760

40%
Latin America Europe Africa

Gold

Chromium

84%
63 52 52 48

Platinum

88%

154

2.4%

$4,420

Number of cities with population over 1 million

1.2%

1.5%

$1,190

49 40 35

$760

2009 population, in millions.

Avarage annual population growth 2002 - 2008.

2009 gross national income per capita.

Emerging Asia

DOCKWISER 19

AFRICA FEATURE

WEST AFRICA
DOCKWISER 20

The first commercial quantities of oil in West Africa were discovered in 1956 in Nigerias Niger Delta Basin, and it was not long before the region became well known for holding some of the Worlds largest oil and gas reserves. High Potential Region It has been estimated that sub-Saharan Africa contains about 80 billion barrels of oil, with 24 billion of this in the Gulf of Guinea. With current and projected production levels, West Africas geopolitical and growing strategic importance to the world powers cannot be over-emphasized. This is against the background of increased insecurity in the Middle East, thus compelling many companies and governments to turn their attention to a West Africa that is less conflict-prone and has higher-quality minerals and other hydrocarbons.

Expanding Investment Oil majors have been active in this promising oil and gas region for decades and plan to invest further. Chevron, the third-largest oil producer by market value, has long stated that West Africa is a key strategic area. Chevrons activities in West Africa include exploration for oil in Liberia and producing and exploring for oil in Angola, Chad, the Democratic Republic of the Congo, Nigeria and the Republic of the Congo. It is involved in several projects at different stages of development, including a major development program aimed at increasing Angolan production. ExxonMobils West-African upstream operations include both onshore and offshore exploration, development and production. In the shallow waters of Nigeria, Mobil Producing Nigeria operates a joint venture covering more than 800,000 acres in four leases off the southeastern coast of the country. It was also responsible for restarting the Erha and Erha North deepwater developments, located 97 km offshore Nigeria. West Africa also remains a key focus point for French energy giant Total. Total has been present in Nigeria since 1962 and operates seven production licenses out of the 44 in which it has a stake, and two exploration licenses out of the eight in which it has a stake. The group is also highly active in natural gas through Nigeria LNG and the Brass LNG project.

Most major international energy firms are already heavily invested in West Africa.
The region has also fast become a prime hunting ground for deepwater oil and gas exploration and production. Since the first exploration in the Congo Basin in 1994, deepwater oil and gas exploration offshore West Africa has boomed, and the region is now recognized as one of the most high-potential areas in the world.

WEST AFRICA GROWING

DOCKWISER 21

AFRICA FEATURE

EAST AFRICA RISING

zero in 1886 to 23 percent of the global supply in just 10 years.

Two Jack-Up Rigs, 'Ben Avon' and 'Ben Rinnes', DORMAC Yard, Saldahna Bay (SA).

After decades operating in the shadow of North and West Africa, East Africa is finally emerging as one of the most significant players in the continents oil and gas industry. East Africas oil and gas potential has been compared to the gold rush in South Africawhere production of the commodity went from

DOCKWISER 22

Hot Spot Africa is certainly the hot spot for oil and gas exploration as well as foreign investment. But East Africa stands out on the continent. Large oil discoveries around Ugandas Lake Albert in 2006 and subsequent gas discoveries offshore Mozambique have dramatically altered perceptions of East Africa, transforming it into an up-and-coming destination for extractive industry investment. Companies that previously only gave the region a passing glance before turning their attention to areas such as the Gulf of Guinea are now rapidly coming to terms with the Rift Valleys potentially vast, untapped reserves. Onshore is Promising Exploration has been underway in East Africa for several decades, but the extent of the potential has only become apparent in the last few years. Uganda looks set to become one of the five largest oil producers on the continent, with its Lake Albert oil fields potentially capable of producing 200,000-350,000 barrels per day (bpd). News of fresh discoveries in neighboring Kenya has boosted onshore exploration in that country, though commercial viability is still being established. South Sudan already has vast reserves and is increasingly looking to East Africa rather than to its hostile northern neighbor to export its oil. Meanwhile, there are hopes that both oil and gas could be discovered in Ethiopia in commercially viable quantities.

Offshore is Even More Promising Offshore, the picture is even more promising. The waters of the Indian Ocean are proving a rich hunting ground for natural-gas exploration. The US Geological Survey estimates that coastal areas of Mozambique and Tanzania alone could harbor more than 250 trillion cubic feet of gas in addition to a further 14.5 billion barrels of oil. Of the 27 wells drilled in the last two years offshore Tanzania and Mozambique, 24 have yielded discoveries. Compared with the heavily explored areas elsewhere on the continent, East Africa is practically virgin territory. By 2010, only 600 wells had been drilled, compared with 14,000 and 20,000 in West and North Africa respectively.

Attracting Investment Exploration activity in East Africa is no longer solely the domain of oil and gas juniors. As the size and scope of the regions reserves have become more apparent, the industry heavyweights interest has increased. Governments are anxious to attract the attention of international oil companies in addition to the steady flow of interest from juniors. The development of the sector does not only offer opportunities for upstream investors, and there is increasing focus on vital supporting infrastructure, including pipelines, refineries, port facilities and transport links. The regional gas boom has attracted a long list of players including super majors (ExxonMobil, Total and Royal Dutch Shell), large international E&Ps (Anadarko and BG Group), hybrid IOC/NOCs (Statoil, Petrobras and Galp Energia) and smaller regional specialists (Tullow, Ophir Energy/Dominion, Cove Energy, Pancontinental Oil & Gas NL and Premier Oil).

THE SUCCESS RATE OF COMPANIES LOOKING FOR GAS OFFSHORE IS PHENOMENAL.

DOCKWISER 23

TOP AFRICAN OIL & GAS PRODUCING NATIONS

African nations have realized a significant increase in oil and gas production over the past ten years. The top three oil producing nationsAlgeria, Angola, Nigeriaaccount for 62% of the continents oil production for 2012. Nigeria clearly leads the pack with oil production and single handedly accounts for 26% of the continents production. When compared to the 2002 production levels, Angola has seen the highest increased production level reaching 95%.
The top three natural gas producing nationsAlgeria, Egypt, Nigeriaaccount for 86% of the continents natural gas production for 2012. Algeria is topping the chart at 38% of the continents natural gas production. Although Algeria holds the natural gas production title, Egypt and Nigeria have seen an increase of at least 120% when compared to the 2002 production levels. With the proven oil and gas reserves along with recent discoveries in both East and West Africa, the production levels will certainly see a positive growth curve.

ALGERIA
2002 70.9 2012 73 DELTA

+3%
2002 80.4 2012 81.5 DELTA

EGYPT
2002 27.3 2012 60.9 DELTA

+1%

+123%

NIGERIA
2002 101.7 2012 116.2 DELTA

OIL PRODUCTION
IN MILLION TONNES

+14%
2002 18 2012 43.2 DELTA

NATURAL GAS PRODUCTION

IN BILLION CUBIC METRES

+140%
ANGOLA
2002 44.6 2012 86.9 DELTA

+95%
REST OF AFRICA
2002 159.6 2012 172.9 DELTA

TOTAL AFRICA
2002 376.8 2012 449 DELTA

+19%

+8%
2002 12.5 2012 30.6 DELTA

2002 138.2 2012 216.2 DELTA

+56%
SOURCE: BP Statistical Review of World Energy, June 2013

+145%

AFRICA FEATURE

GROWING BUSINESS IN AFRICA

INTERVIEW WITH MARTIN ADLER, CHIEF COMMERCIAL OFFICER AT DOCKWISE

Mr. Martin Adler has served as CCO at Dockwise since 2008 responsible for international sales, strategy, marketing and operations. Before assuming his current role, he held positions as senior vice president for the Shaw Group (Stone & Webster) and various senior management positions at Fluor. Mr. Adler holds a masters degree from Delft University of Technology and a MBA from Erasmus University Rotterdam. He is a Dutch citizen and resides in the Netherlands.

My vision to leverage opportunities in this flourishing oil and gas landscape entails providing local fit for purpose onshore and offshore services.

The oil and gas economy in Africa is experiencing significant growth, particularly in East and West Africa. While some companies already have a foothold in these regions, others are positioning their services. How is Dockwise currently positioned to leverage the flourishing oil and gas landscape?

DOCKWISER 25

Dockwise has long standing business transporting offshore and port equipment to Africa. Based on our experience and established relationships, we seek to deepen our local position in East and West Africa. As we do not have extensive experience in these regions, we need to diligently assess political and economic developments impacting local and international investment decisions To be successful locally, we need to learn how to best apply our services to both regions as they differ greatly in maturity. Collaboration with local entities, in the form of partnerships, will enable Dockwise to accelerate this process.

enable us to offer in-house fit for purpose service that significantly reduce the need for third party contracting. Can you shed light on developing trends? And how does Dockwise plan to capitalize on these trends? There are two major trends that directly impact our business: Exploration and Production (E&P) activities going deeper; Increased size and weight of next generation top-end offshore structures. We plan to capitalize on these major developments by investing in assets and capabilities to transport and install these mega units, such as the Dockwise Vanguard. Additionally, our research has surfaced many innovative concepts such as FPSO dry-docking enabled by offshore loading and discharge knowhow for deepwater developments. What is Dockwises vision to grow business in Africa? To realize this vision, what is the key success factor? Dockwise plans to expand its current service scope to local and international oil and gas companies with the transport and installation of offshore and nearshore structures. This will be done with the support of Boskalis, whose solid reputation and firm understanding

security risks will be mitigated within acceptable levels. Once this occurs, further investment commitments from international oil and gas companies will increase activities resulting in the need to transport and install offshore and port equipment. Being acquired by Boskalis, do you see synergies between Boskalis and Dockwise in Africa? There are definitely synergies to be leveraged. Boskalis has an established reputation in Africa spanning more than half a century. We are now capable to extend our capability scope beyond what we would be able to offer to the market standalone. There is a lot of collective experience and assets we can now offer under one roof. This new foundation is capable to provide a very interesting and unique value proposition to meet the needs of clients in East and West Africa. We are at the beginning phase of exploring new horizons together where learning, exploring and structuring are essential to later reap the synergies. And this is only the tip of the iceberg.

Now that we are part of the Boskalis group, we can grow business faster.
Boskalis has a strong foundation in Africa with more than 50 years solid experience with local content and understanding of business dynamics. Collectively, we are now capable of expanding our service scope offering local and international clients with multiple services under one roof. In essence, we can make sound business decisions based on the collective synergies of both organizations, resulting in great opportunities for our clients. My vision to leverage opportunities in this flourishing oil and gas landscape entails providing local fit for purpose onshore and offshore services. This vision is underpinned by our offshore transport and installation along with logistical management capabilities. Factoring in the scope augmentation through Boskalis capabilities

Together with Boskalis, we embark on a promising journey.

of local needs will accelerate our growth strategy. Of the various key success factors to drive our growth in Africa, security of our people, cargo and assets is top of mind. With continual help and support of local and international professional institutes and companies,
DOCKWISER 26

INDUSTRY PERSPECTIVE

FINANCIAL DISCIPLINE, INTEGRITY AND RESPECT

INTERVIEW WITH MR. REMI OKUNLOLA, CO-FOUNDER & EXECUTIVE DIRECTOR AT SEAWOLF

SeaWolf Oilfield Services Limited was established in April 2007, with the objective of providing drilling and drilling related oilfield services in the West African oil and gas market. Today, SeaWolf operates a modern fleet of jack-up drilling units. SeaWolf is Africas premier indigenous offshore drilling company.

Mr. Okunlola is co-founder and executive director of Africas first indigenous offshore drilling company, SeaWolf. Prior to co-founding SeaWolf, Mr. Okunlola was partner of a top Lagos commercial law firm, Perchstone & Graeys, which he also cofounded in 1997. Next to his legal and business background, he is renown for his commitment to not-for-profit causes in arts, music and child welfare. Remi holds a LLB. in Law and a MBA. He is a New York Attorney, a Nigerian legal practitioner and an English Barrister.

The Nigerian Local Content Act remains the most important development of the last half century of Nigerian oil and gas.
DOCKWISER 27

Can you describe the structure of SeaWolf and its business strategy. SeaWolf is a private equity portfolio company, with investors including sub-Sahara Africas largest bank, Nigerias largest insurance group and a substantial South-African infrastructure development fund. Our strategy is simple. Operate the most modern fleet of jack-up drilling units available in the West-African region to world class operating and safety standards.

The International Oil Companies (IOCs) have demanded no more than this, and this is our headline strategy. Our main driver remains creating a world class Nigerian-owned offshore oilfield equipment company with a market leading position offshore West Africa. We operate in a market that requires anything between 12 to 18 jack-ups at any pointonly three are indigenous owned. Yet, Nigeria content provisions require a 40 percent local content, or seven jack-ups. There is no bigger driver than this.

What are the main developments at SeaWolf and respective markets? SeaWolf is contracted to some of the Worlds biggest and most regarded IOCs such as ExxonMobil. We previously executed a two year contract for Total. So, from a contracting perspective, SeaWolf is very pleased with the quality of our clients. Now, in terms of managing our growth as first of its kind indigenous company, we have enjoyed the invaluable support of the Nigerian National Petroleum Corporation (NNPC) and the

DOCKWISER 28

Nigerian National Oil Company (NNOC). We enjoyed the unquantifiable financial and operational support of each of the IOCs to which we are contracted. The Nigerian Content Monitoring Board (NCMB) has been very supportive in using its mandate to assist the emergence of this company. NNPCs investment arm, the National Petroleum Investment Management Services (NAPIMS), has been even more determined to assure the emergence and survival of this business, using its equity in the various joint ventures to promote our entry into the Nigerian oil and gas industry.

From a wider market perspective, SeaWolf is clearly only one small part of a bigger social policy to grow indigenous participation in the strategically significant Nigerian oil and gas industry. There is a broader policy to expand the presence of Nigerian players along the entire value chain.

Although SeaWolf maintains a strong performance, how does Africas fluctuating economy impact the operating business of your company? We derive our strength from the support that we enjoy from the NNPC, NAPIMs, Nigerian Content, and our clients, the IOCs. With the diverse stakeholders

We entered the business with a mission to be the contractor of choice for safe, environmentally responsible, operationally efficient, high specification, drilling services in West Africa.
Can you give a brief overview of the focus segments? What are the main developments in these segments? Our focus segment remains offshore drilling and we expect to increase our West Africa market share over the next couple of years. With activity moving deeper offshore, we are already focused on leveraging contracting opportunities in that segment. The Nigerian Content Act (NCA) remains the most important development in the Nigerian market with an increasing number of indigenous players entering the industry, acquiring assets and seeking to navigate this terrain. Next to the NCA, exploration continues to move deeper offshore and we are intent on moving with this trend by deploying deepwater drilling assets within the Nigerian oil and gas sector, as well of course, as extending our jack-up business. In the interim, with the growing list of indigenous asset owners, we are currently focused on knowledge transfer through operations and management services. determined to make our business work, and ensure the stability of this first of its kind indigenous enterprise, yes, we are strong and stable. Still, we need to ramp up competences, talent and skills, including through increased investment in training, but additionally through the diverse world-class third party international relationships that have become key to redefining and reinventing SeaWolf. Which fundamental role do you see for Dockwise in the short run and in the long run in this region? According to the rig quarterly reports, the demand for assets as the IOCs ramp up on their development programs will create an inherent need for contractors to deploy more assets across the corridor creating an opportunity for Dockwise to secure increasing market share on the heavy lift movement within the corridor.

FINANCIAL DISCIPLINE, INTEGRITY AND RESPECT

DOCKWISER 29

INDUSTRY PERSPECTIVE

IMPORTANCE OF LOCAL CONTENT

INTERVIEW WITH ERNEST NWAPA, EXECUTIVE SECRETARY OF THE NCDMB

Mr. Nwapa was appointed executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB) in April 2010 following the signing of the NCA. He has worked for many years in the international oil and gas industry gaining most of his experience within various capacities and functions at the Nigerian National Petroleum Corporation (NNPC). Mr. Nwapa is internationally recognized for his advocacy and promotion of capacity building and local content development in the national oil and gas sector. He is a civil engineering graduate from the University of Nigeria.

The Nigerian local content model is not designed to indigenize the countrys space nor designed to nationalize assets. It is designed to create a level playing field where Nigerians can participate in their own economy.

NCDMB
The Nigerian Content Development and Monitoring Board (NCDMB) is set up to implement the Nigerian Content Act (NCA) provisions to support the capacity building efforts of the government and industry and to make sure that the targets and aspirations of government in this act implementation are met.

How is local content developing in Nigeria? I think local content in Nigeria has come to stay. It is something that the government has been pushing for a few years, but with the enactment of the law in 2010 it has become an imperative. The government believes that by insuring that more is done in Nigeria, we can create more jobs for our people, retain more capacity and more spend in the county to have more impact in the oil and gas industry and on the GDP of the country.

DOCKWISER 30

It is also a major part of our national economy, so we believe that if we do the right things in the oil and gas industry, it will translate to all the linking sectors of the economy and the transferability of the capabilities that we are creating. The oil and gas industry will begin to deeply impact on the entire national economy. What has Nigeria learned from Brazils local content strategy? A whole lot actually. When we started the experiment in 2005, we had a lot of shared experiences with Brazil. Brazil has managed, because they already had some form of developed industry, to leap a lot. We on the other hand, have to start from scratch. We have to build our capacity stage by stage. A lot has changed in Nigeria, but I can tell you on a biannual basis, we have serious engagement with Brazil and there are a lot of learning points there. Brazil is good with offshore works and training and funding they give to the national players. We have modeled some of our initiatives around what Brazil does, because its easier to model Brazil and Malaysia than modeling America for instance. We see some similarities in our national economies, people and culture. So it easier to tell a Nigerian that if Brazilians can do it, Nigerians can do it. So that is why we look at Brazil and Malaysia to try to benchmark.

Do you think West Africa will be leading the rest of the continent with regards to local content? I think that Nigeria has already started taking the leadership role. Nigeria has a production capacity way in excess of any other African country. Therefore, what we do matters a lot and other countries are focused on what Nigeria is doing. We have seen how some of them have actually transformed their own operations to fit into what we are doing. It is going to grow as they dive into their own exploration. We have made some errors in Nigeria and many of those other countries will do betternot making mistakes before they start doing it right. The success of our Nigerian content program gives them more confidence. How would you advise those other developing countries to stimulate SME growth? To really make an impact, the bottom of the ladder should be able to benefit from this. Small enterprises play a role in job creation in mobilizing the innovative spirit of the people and in Nigeria we have an agency, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The job that is facing us now is to link them strongly with the industry. That is the sense of the component manufacturing theme. There are SMEs that can go into manufacturing or are doing some manufacturing. What we would need to do is to link them up with some of the manufacturers who may not be necessarily in the position to start manufacturing themselves, but who can use some other agents to start manufacturing components for them.

Global Local Content Summit Mr. Nwapa, will be speaking at the 9th Annual Global Local Content Summit taking place in London from October 23rd - 26th, 2013. At the summit, he will share insights to on how to build the capacity of local businesses to participate more actively and with greater success in the oil and gas industry.

LOCAL CONTENT SUMMIT

IMPORTANCE OF LOCAL CONTENT

DOCKWISER 31

DOCKTALK

DRIVING SUSTAINABILITY
COMMITMENT TO SUSTAINABLE AND PROFITABLE BUSINESS
DOCKTALK WITH VERA GELUK, SUSTAINABILITY MANAGER

Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. A company takes responsibility throughout the companys activities, reports on these consequences, and constructively engages with stakeholders. Sustainability has received much attention in recent years due to increased focus on global issues such as human rights, climate change and resource scarcity. Stakeholders increasingly press management and boards to focus on opportunities and risks related to environmental and social issues. These efforts reflect the growing belief that a companys environmental and social policies correlate strongly with its risk management approach and financial performance, including in terms of supporting growth and cost-reduction opportunities.

DOCKWISER 32

Leadership Showing the Way Commitment towards sustainability starts with the top. At Dockwise, the members of the Executive Committee have a clear vision on driving sustainability. Andr Goede, CEO of Dockwise states,

Sustainability is a pre-requisite for the future of Dockwise. For years now, we have gathered data and started various initiatives, but ultimately Dockwise has to live up to stakeholder expectations.
To professionalize sustainability, Dockwise welcomed Vera Geluk, to head sustainability. As sustainability manager, Vera hit the road running with ideas, initiatives and has established a strategic roadmap. With a top management endorsed vision and a strategic program in place, Dockwise is well positioned to incorporate sustainability into core business processes. Establishing a Framework Since 2012, Dockwise has been working more systematically on the implementation of a corporate responsibility framework that includes People, Planet and Profit (Triple P). The framework, based on international principles, will pinpoint the uniqueness and the operational context of the company. The overall aim is to ensure that a robust and practical system is imbedded in the core business of the company, while making use of the already present business structures and documents. This includes the integrated management system and certification schemes (ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007). Invasive marine species pathways and origins From NW Atlantic From NE Atlantic From Asia Major areas with invasive marine species

> 250
250 - 150
< 150
Number of invasive alien species

Image courtesy of UNEP/GRID-Arendal Maps and Graphics Library

DOCKWISER 33

Minding the Environment Dockwise is fully aware of the environmental risks associated with all operations executed by the company. The most significant environmental impact of Dockwise is the fuel consumption of the fleet and the accompanying CO2 emissions of the vessels. Reporting on fuel consumption and emissions is complex due to differences in fleet composition, age of the vessels, utilization of the vessels, distance traveled and cargo transported. All the above mentioned aspects influence the energy consumption of the fleet. Continuous improvements have been made to report, measure and reduce fuel consumption, all in close cooperation with our ship manager Anglo-Eastern.

Innovation at Work Almost all types of ships require ballast water, primarily for stability during operations and voyage. While ballast water is essential for safe and efficient shipping operations, it may pose serious ecological, economic, and health problems due to the multitude of aquatic organisms carried in ships ballast water. These species include bacteria, microbes, small invertebrates, eggs, cysts and larvae of various species. The transferred species may survive to establish a reproductive population in the host environment, becoming invasive, out-competing native species and multiplying into pest proportions. The problem was officially recognized in 1992 by the United Nations (UN). The UN requested for the development of rules for ballast water discharge to prevent the spread of invasive species. The International Maritime Organization (IMO) assisted to develop IMO Ballast Water Guidelines and the (not yet ratified) IMO Ballast Water Convention to prevent, reduce, and ultimately eliminate the transfer of harmful aquatic organisms and pathogens from ships ballast water and sediments.

In 2009, the IMO concluded that there were sufficient type-approved (qualified for certification) ballast water treatment technologies available for ships. Dockwise found the existing technologies unsuitable for semisubmersible heavy transport vessels. The amount of ballast water, time needed for the treatment process, additional energy use along with space needed and hazard for the safety of crew, vessel and cargo during operations were identified. To bring the special type of vessels to the attention of the IMO, Dockwise and other ship owners issued a submission on this topic, reviewed by the Ballast Water Review Group (BWRG) who acknowledged the problem and allocated more time and invited member states to come up with suitable solutions. Dockwise proposed an in-tank treatment during voyage, whereby only the transported ballast water from one location to another will be treated, so vessels arrive with sterilized tanks at the destination. The Dockwise method for internal circulation treatment of ballast water was proposed to the IMO, and the committee agreed to initiate the development of a unified interpretation clarification before the convention will enter into force. Want to learn more about ballast water treatment, contact us.

Dockwise strives for new initiatives, a better and transparent reporting structure and realistic objectives for the next years.

Vera Geluk Sustainability Manager

DOCKWISER 34

EXPLORING NEW HORIZONS TOGETHER

NIGERIA IS AND WILL REMAIN AN IMPORTANT MARKET FOR BOSKALIS

INTERVIEW WITH DR. PETER BERDOWSKI, CEO AT ROYAL BOSKALIS WESTMINSTER N.V.

Dr. Peter Berdowski has served as CEO and Chairman of the Board of Management at Royal Boskalis Westminster N.V. since 2006. He joined the Management Board of Boskalis in 1997 and served as Vice Chairman from 2001 to 2006. Before 1997 he fulfilled various management positions at Royal Dutch Shell Group and served as Managing Partner of Krekel Van der Woerd Wouterse. Dr. Berdowski studied Chemistry at the University of Utrecht.

DOCKWISER 36

When did Boskalis start business in Nigeria? Sixty years ago, it all started from Port Harcourt and expanded to Warri. These are still important support locations for our operations in the Niger Delta. Doing business in Nigeria was and remains complex, as you are almost completely self-sufficient. For example, when something breaks down, you rely on own resources to resolve the issue, as you cannot hire a local company to resolve the problem. Many years ago, the workforce composition of Dutch versus Nigerians was one out of three, but today, our company is fully integrated with the local population. We now have 450 Nigerian colleagues on the payroll of which some have been employed by Boskalis for over 40 years now. You follow the developments in which oil and gas extraction is increasingly going offshore? Indeed, this is a historical development. For 50 years, we have been working in the swamp areas of the Niger Deltafacilitating drill-holes, building harbors and that sort of work. In the 90s, the Nigerian offshore developments commenced, which later proved to contain significant amounts of oil and gas reserves. Since then, our work scope incrementally expanded to coastline and offshore projects. We support in the development and export of LNG, building of harbors, protection of coastlines, etc. The conditions offshorefrom both a technological and social point of vieware still challenging, but of a different order than in the Niger Delta. Is Boskalis also active in other West-African countries? We have representatives in 11 other countries, such as Angola, Cameroon and Gabon. Mainly because oil and gas exploration takes place in these countries. Nigeria plays a pivotal role in the region as our operations there are more continuous than in neighboring countries. We also work increasingly in the promising East-African region. Due to Mozambiques significant gas reserves, we have done various projects for their harbor development. Furthermore, Kenya and Tanzania are interesting growth markets. For us, it is important that the African continent is rich of resources like nickel, cobalt and iron ore. As soon as a mine opens, we take care of the infrastructure around it. The mined resources must then be transported, for example via harbors.
DOCKWISER 37

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. The company provides creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world with the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. In addition, Boskalis offers a wide variety of marine services and contracting for the offshore energy sector including subsea, heavy transport, lifting and installation (through Boskalis Offshore and Dockwise) and towage and salvage (through SMIT and Smit Lamnalco). With a versatile fleet of over 1,100 units, Boskalis operates in around 75 countries across six continents. Including its share in partnerships, Boskalis has approximately 11,000 employees.

This interview is printed with permission from Management Scope magazine, September 2012.

EXPLORING NEW HORIZONS TOGETHER

WE ARE NOW ABLE TO OFFER FULL PACKAGE SOLUTIONS TO CLIENTS

INTERVIEW WITH MR. MAARTEN MEEDER, GENERAL MANAGER AT NWDM

Can you describe the structure of the NWDM? Nigerian Westminster Dredging and Marine Ltd. (NWDM) is closely involved with and operates in Nigerias dredging, marine construction, piling and civil engineering markets, as well as the offshore markets. This includes riverbed and riverbank protection works (erosion control), reclamation and sand stockpiling and services for the national oil and gas industry, port operators, government and project developers. What are the main developments at NWDM and respective markets? We restructured the company a few years ago, making a lean organization capable to compete in this challenging market. Due to our long presence in Nigeria, we are often seen as a local company. Our activities are further very diverse making us reach many clients. With the merger of SMIT, we executed several diving projects together with what is now Boskalis Offshore. Beside the diving activities, we are entering the wreck removal market. We work for the government, private clients and the International Oil Companies (IOCs). We strive to have simultaneous projects with each of these clients to diversify our service portfolio. What is the companys business strategy and key business driver? Currently, NWDM focuses exclusively on Nigeria, but we intend to further diversify to offshore works where we are not present at this moment. With the help of SMIT

Mr. Maarten Meeder moved to Lagos, Nigeria from the Netherlands to head Nigerian Westminster Dredging and Marine (local entity of Boskalis). Working before as commercial Manager Africa and previous postings in Ghana and South Africa, the African way of doing business is not new for him. His family is active in anti-malaria campaigns organized by an NGO and sponsored by NWDM. Mr. Meeder holds a Civil Engineering degree and track record in dredging technology and project management.

DOCKWISER 38

and Dockwise, we see a big market available of which we havent touched. We need to determine in what scope we are interested and then start selling our activities to clients. The core business is dredging, reclamation, earthmoving works and shoreline protection works. Further on we focus on piling, marine construction, diving operations, pipeline installation related activities (post/pre trenching, pipe pulling, cofferdam installation) and fabrication works. Our key business driver in Nigeria is to execute complex marine projects where indigenous companies still not have the expertise to do these jobs making it possible for clients to realize their projects. Can you give a brief overview of the focus markets and respective developments? We focus on the high-end market, the larger and more complex marine projects related to the Nigerian oil and gas industry. With SMIT and Dockwise as part of the Boskalis group, we are now able to offer full package solutions to our clients, making NWDM an interesting partner for them. Theres a large offshore market in Nigeria, with a number of FPSO projects to start next year. Nigerias offshore exploration and production activity is centered around the Niger West Delta and has until recent years involved development on the continental shelf in relatively shallow waters. During the last years, however, deepwater production has seen a significant increase, with large fields such as Bonga (Shell), Agbami-Ekoli (Chevron), Erha (ExxonMobil) and Akpo (Total) coming into production and large fields to be

developed such Bonga South West (Shell) and the Egina Field (Total). Can you shed light on trends? We see an increase in competition from indigenous companies, a slowdown of investments in the oil and gas industry due to the delay in the passage of the Petroleum Industry Bill (PIB) and also an increase in Nigerian content requirements, making it more difficult for foreign companies to operate as a service provider in the Nigerian oil and gas industry. We have to closely monitor further developments of the Nigerian Content Act (NCA) and assess the consequences for NWDM and plan accordingly. This could implicate a change in shareholder structure in order to be fully compliant with the act. Boskalis recently acquired Dockwise. What synergies do you envision with the combined entities operating in Africa? NWDM has a proven name in Nigeria and is known for the quality of works. We will explore the possibility to use NWDM as the contracting entity for projects to be executed locally as we are well established in Nigeria with a complete organization, offices, equipment and local network.

Furthermore, we expect to have contact on a more regular basis with the Dockwise organization to discuss the market opportunities, organizational issues and the business strategy. We plan to expand our network, cross sell and share our local knowledge with Dockwise. As Boskalis is focusing more and more on the Offshore Energy industry, Dockwises client base are in most cases also Boskalis clients or desired future clients. In Nigeria, there are a number of FPSOs out in deepwater fields requiring maintenance and the plans to install at least two new build FPSOs in the next five to eight years. With the Dockwise Vanguard recently added to the fleet, this could be a very interesting market for Dockwise. Furthermore, there is an increase in the development of power plants to improve the erratic power situation in Nigeria. This could give opportunities for Dockwise in the heavy marine transport segment. In addition, a number of deep-sea ports and the upgrade of the existing ports are planned requiring the transportation of large container cranes to Nigeria.

DOCKWISER 39

EXPLORING NEW HORIZONS TOGETHER

AFRICAN PEOPLE ARE ENTREPRENEURIAL AND ALWAYS READY TO DO BUSINESS

INTERVIEW WITH MR. PETER DEVINCK, BUSINESS UNIT MANAGER AFRICA AT ROYAL BOSKALIS WESTMINSTER N.V.

Mr. Peter Devinck joined Boskalis in 2004 and is Business Unit Manager for Africa and the Indian subcontinent since April 2010. Before assuming this role, Mr. Devinck held positions as Regional Manager for Russia and was resident General Manager of Nigeria Westminster Dredging Marine, the operating company of Boskalis in Nigeria. Prior to joining Boskalis, Mr. Devinck held project management, commercial and business development positions in DEME Group and Group de Cloedt in Belgium. He holds a degree in Economics from the University of Louvain and is a Belgian citizen.

DOCKWISER 40

What is your experience in Africa while working for Boskalis? Colonial times have unnaturally shaped this continent in the way it is today. The mix of traditional and imported culture along with religion make this continent extremely interesting. Although unwise to generalize, one could state that for doing business, personal relationships are most important and fairly easy to establish. This makes the continent so attractive for us to work in. It goes without saying that the cultural differences influence the way to do business, but this makes it even more interesting and challenging. Can you shed light on developing trends? In the middle and long term, the main interesting developments for Boskalis in Africa focus around container ports and mineral export including mining, inland transport and port development. The driver for the first development is the increasing middle class in Africa, requesting higher standard consumer products, whereas the second is driven by the ever increasing global demand for minerals. Both these developments are merely realized by foreign investment and therefore very much dependent on global economic trends. Oil and gas developments will continue and the ones in East Africa have only started. Spinoffs into large infrastructural developments are to be expected.

Where does Boskalis see the most interesting opportunity? West Africa has been investing a lot in port developments over the last decade, but still no really big West-African container hub has been established. East-African port development is accelerating and major developments are expected. Small scale mineral developments in West and East Africa will continue, but the major ones, requiring significant investment will only start when the global economy picks up and investors are convinced that stability in the region is acceptable. The speed of these developments will depend a lot on the progress countries can make in creating legislation that gives comfort to foreign investors.

Boskalis recently acquired Dockwise. What synergies do you envision with the combined entities operating in Africa? The sharing of commercial intelligence will create options to get early involved in project developments. The synergy lies in the combination of our capabilities, which will add value for clients and allow us to bid in an alternativemore complete, and with a different risk profilemanner than our competitors. This opportunity may not be achieved in the short-term, but we need to keep an open mind and be creative to define such projects when they ariseeven when the projects are small scale.

Since mid-2012, Boskalis has been at work in the port of Mombasa, Kenya, on the construction of a new container terminal.
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The Dockwiser is a publication of the Dockwise Group. For more information, please contact: +31 (0)76-548 41 00 communication@dockwise.com www.dockwise.com Project Management Danille Biermans Editing Jonathan Martinez Art Direction / Realization Canday Solutions Contributors a.o. Boskalis, NWDM, SeaWolf, IQPC UK Photography a.o. iStockphoto, HeliFoto

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