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How Namibian youth can stand a better chance to benefit from the oil and gas industry

by editor
October 3, 2024
in Opinions
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By Albert Khevare

The Namibian oil and gas industry has been making waves across the world amidst the massive oil discoveries in the Orange Basin. Equally, over the past year we have seen an increase in training institutions setting up their training centres in order to harness the business opportunities that the oil discoveries are presenting.

Consequently, Namibian youth may stand a better chance of securing employment opportunities   across the three streams namely Upstream, Midstream, and Downstream sectors of the industry. In order to do so, they may be required to be upskilled, reskilled and cross-skilled. Each of these three sectors have its own focus and demands a different skill set. Our vocational schools and university will have a significant role to play in this regard.

Here is an overview of some essential skills that may be required in for all three sectors:

Upstream (Exploration and Production)

The upstream sector involves the exploration and extraction of oil and gas from underground or underwater reservoirs. Workers in this sector need specialised skills in geosciences, drilling, and production.

Key Skills:

•               Geological and Geophysical Analysis: Understanding of subsurface mapping, seismic interpretation, and well log analysis.

•               Reservoir Engineering: Knowledge of reservoir simulation, fluid dynamics, and pressure-volume-temperature (PVT) relationships.

•               Drilling and Completion Technology: Proficiency in drilling techniques, wellbore stability, completion design, and equipment operation.

•               Health, Safety, and Environmental (HSE) Compliance: Training in safety protocols (e.g., well control, fire safety), environmental impact, and hazardous material handling. Also, once critical skills must be learnt is the offshore survival skill.

•               Petroleum Engineering Software: Skills in software like Schlumberger’s Petrel or Halliburton’s Landmark for simulation and modeling.

•               Well Testing and Production Techniques: Understanding of flow rates, well testing, artificial lift, and enhanced oil recovery methods.

•               Mudlogging and Wireline Logging: Skills in gathering and interpreting data on rock formations and fluid content during drilling.

Additional Skills required:

•               Project Management: Managing large-scale exploration and drilling projects.

•               Supply Chain Logistics: Knowledge of sourcing and delivering drilling materials and equipment.

•               Contact Management: There are various agreements that are involved at this level namely, Production Sharing Agreements (PSAs), contracts between governments and oil companies regarding resource extraction. Joint Operating Agreements (JOAs) this is an agreement between multiple parties involved in a joint exploration and production venture. Drilling Contracts, contracts with service providers for drilling rigs and associated services Lastly, a Lease Agreements which are contracts with landowners or governments for the right to explore and extract oil and gas.

•               Petroleum Economics and Financial skills- these skills are required when it comes to determining the monitory value during the exploration, development and production stages of the sector.

Midstream (Transportation, Storage, and Processing)

The midstream sector deals with the transportation, storage, and sometimes processing of oil and gas. Professionals here work on pipelines, terminals, and other transportation systems.

Key Skills required at this stage:

•               Pipeline Design and Maintenance: Understanding of pipeline materials, routing, installation, and monitoring systems (e.g., SCADA systems).

•               Corrosion Engineering and Prevention: this is knowledge of anti-corrosion techniques, coatings, and cathodic protection systems.

•               Compression and Pumping Technology: this is operation of compressors and pumps that facilitate the transportation of oil and gas via pipelines.

•               Storage Facility Operations: this requires expertise in the design and management of storage tanks, terminals, and underground storage systems .

•               Regulatory Compliance: this requires knowledge on transportation regulations and environmental rules related to pipeline safety and operations.

•               HSE for Midstream Operations: this focuses on risk assessments, incident response, and safety management in transportation and storage.

•               Pipeline Integrity Monitoring: understanding of leak detection, inline inspection tools and failure analysis.

Additional Skills:

•               Logistics and Supply Chain Management: Managing the transport of crude oil, refined products, and natural gas across regions.

•               Project Planning and Execution: Skills in planning new pipeline routes or expanding existing transportation infrastructure.

Downstream (Refining, Distribution, and Retail)

The downstream sector involves refining crude oil, distributing products, and retail operations such as fuel stations and chemical processing. In Namibia we currently have plenty of retail stations across the country and this sector already employees a good number of Namibians already.

Hereunder are some skills required in this sector.

•               Refining Processes: Deep understanding of refinery processes like distillation, cracking, reforming, hydro treating, and blending.

•               Process Engineering: Knowledge of process optimization, heat integration, and the handling of chemical reactions within refinery operations.

•               Catalyst Technology: Expertise in the use of catalysts in refining to enhance fuel quality and efficiency.

•               Petrochemical Production: Understanding of processes used to manufacture chemicals and plastics from oil and gas derivatives.

•               Instrumentation and Control Systems: Skills in managing automated systems that control refinery operations, such as DCS (Distributed Control Systems) and PLCs (Programmable Logic Controllers).

•               HSE for Refining Operations: Emphasis on process safety, hazardous area classification, explosion prevention, and incident management.

•               Quality Assurance and Laboratory Testing: Skills in product testing, ensuring fuel meets specifications (e.g., octane rating, sulfur content).

•               Environmental Compliance: Knowledge of emissions controls, waste management, and effluent treatment.

•               Supply Chain and Logistics: Managing the distribution of refined products via pipelines, trucks, or ships.

•               Retail Management: Knowledge of managing fuel distribution networks, pricing strategies, and customer service for fuel stations.

Cross-Sectoral Skills

In addition to sector-specific skill, the Namibia  youth  with the following skills may benefit from the booming oil and gas industry.

•               Risk Management: Identifying, assessing, and mitigating risks.

•               Sustainability Practices: Integrating environmental and social governance (ESG) principles into daily operations.

•               Communication and Team Collaboration: Ability to work effectively with cross-disciplinary teams.

•               Advanced Technology Proficiency: Skills in AI, automation, and digital twins for optimizing operations.

•               Finance and Economics: Understanding of oil price dynamics, cost management, and project economics.

Finally, the graduates in various fields may just need a bit of reskilling, upskilling and cross skill to enable them to fully benefit from oil discoveries. For instance, a welder from our local vocational school may need to acquire skills on underwater welding.

This would then enable him/her to work on the oil rig as a welder. Equally, a graduate in Economics or mechanical engineering will need additional skill relating to oil and gas for them to deliver effective services to their potential employer.

Consequently, each level of the oil and gas industry demands a broad and unique set of skills, supported by in-depth technical training and regulatory knowledge.

*Albert Khevare is an Oil and Gas Training and Specialist and Career Coach. He writes this in his personal capacity.

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