New Western Cape facilities ready for first oil rig

18 May 2007

Cape Town - The partners in the R1.72 billion infrastructural investment in the Western Cape oil and gas hub have started showcasing the project to global rig operators to secure the order book for the launch of the facilities next year.

Three of the partners had already secured a contract to repair an oil rig at Cape Town port's A berth repair facility, Brian Blackbeard, the managing director of Atlantis Marine Projects, said yesterday. Atlantis Marine is the South African partner of the lead investor in the project, Germany's MAN Ferrostaal.

The rig, which operates in Angola, was due to be towed to Cape Town from Saldanha this week for repairs, which would start even though the R57 million first phase of the infrastructural investment to upgrade the A berth was due to kick off only in July, Blackbeard said.

The joint venture announced with the operational partners had allowed for the pooling of resources so they could function as a single structure for clients.

This had enabled them to secure the contract to repair the rig with Transocean, the world's largest offshore drilling company, he said.

The rig will feature prominently in Cape Town harbour over the next two months as it will be loaded on to a barge. It will be repaired by DCD Dorbyl Marine, SA Five Engineering and Globe Engineering Works.

The other two operational partners in the infrastructural investment are Grinaker LTA and DCD Dorbyl Heavy Engineering.

The project forms part of MAN Ferrostaal's offset commitments arising from its supply of three U-209 submarines to the SA Navy as part of the arms deal.

The German industrial group announced in March that it would invest in a fabrication hub at Saldanha Bay and upgrade a repair facility at Cape Town. The initial investment would amount to R220 million and create 720 direct jobs at Saldanha.

Blackbeard said the contract to repair the Transocean rig showed the importance of integrating Saldanha with the Cape Town facility as rigs could be onloaded and offloaded at Saldanha.

MAN Ferrostaal and Atlantis Marine were forming a new company, FerroMarine Africa, to manage the project. MAN Ferrostaal would be the majority shareholder.

Atlantis Marine was in negotiations with a black economic empowerment firm to take a 33 percent equity stake in the company.

He would not identify the black-owned company but said it had experience in the marine industry.

Blackbeard said the parties were on track to establish the facilities within 10 months of construction starting in July.