Africa, an increasing
supplier of global energy, may be unable to expand its output as fast as
expected in coming years due to a shortage of industry skills.
Inadequate schools and relative poverty mean Africa is badly placed to
compete for the expertise it will need to develop new fields, a situation only
made worse by a wider international shortage of oil and gas engineers and
geologists, analysts say.
Will that affect the pace of new oil coming onstream?
"Absolutely. That's going to be the issue. That's one of the main depressive
themes for (Africa's oil) development," said Robert Taylor, business development
manager for IHRDC, an energy industry training and consulting company.
"Nobody's talking about it in Africa. What they're talking about is creating
jobs generally. But creating something like a petroleum engineer takes 10 years.
As they start developing the big fields, you don't just go create a petroleum
engineer job."
The United States already receives about 15 percent of its oil imports from
Africa's Gulf of Guinea region. Analysts predict this may rise to 25 percent by
2015. Additional amounts come from Algeria and Libya.
But experts at an industry conference in Algeria on African energy said a
shortage of exploration and development skills was looming from two sources: a
global shortage of expatriate experts and a lack of homegrown talent in Africa
itself.
"Oil companies, contractors and other enterprises are locked in a fierce
competition for a skilled labour pool which is too small for the available
work," said a briefing paper by AMEC, an energy services firm, cited by
conference participants.
"Skill shortages are worst in Africa, the Middle East and parts of the former
Soviet Union."
Experts said it was no longer possible to use expatriates on the scale of 20
years ago because there were simply too few of them, so training Africans was
increasingly important.
"However, developing local capacity of this kind can take a decade and
managers are particularly hard to find," said AMEC.
Ahmed El-Ghaber, technical adviser to the National Oil Corporation of Libya,
told Reuters: "We need to get the technical gap (with the West) closed as much
as possible."
"It's not an easy task. To make an expert will take you years and you need
patience and care."
Alexandre Bayonne, an energy consultant from Congo Republic, said the country
needs to do more to train nationals to take over the complex, senior roles long
dominated by expatriates.
"Accords with foreign operators on skills transfer are not enough. We want
more investment in training per se," he said.
Dave Lafiaji, executive secretary of the African Petroleum Producers
Association, said African governments had to realise that local mastery of
skills attracted international investment.
Africa's race for oil talent is replicated in other regions of the energy
sector, an industry with an ageing workforce suffering a lack of skills after
years of cuts and layoffs with consolidations and mergers. The workforce's
average age is 48.
But Africa's relative poverty means it is less able to keep talented people.
Poaching of staff is a constant problem.
Ghaber was one of several executives at the meeting, who said north African
state firms regularly lost talented nationals to energy companies in the Gulf
who paid higher salaries.
"We make all efforts to keep our people but if he wants to go you cannot keep
someone by force, you have to go back to your pool and train more young guys,"
said Ghaber. "The point is to see whether the company can handle such a drain
over time."
In the West, Big Oil's image as a dirty industry with an uncertain, boom and
bust record of layoffs deters young people. In Africa, the problem is that
schools are hard put to educate young people adequately to embark on the
engineering training.
China is pumping out engineering contractors, but experts at the conference
said their expertise tended to be in downstream services. Upstream, western oil
majors were at the cutting edge.
Taylor said it was a mistake to think the agreements with foreign operators
on training were a sustainable solution.
"They (Africans) think it's going to be like a gift from foreign operators
who will transfer technology - but that's all on paper. How's it actually going
to transform into finding young people who are going to be educated to take
these skills?"
"Also, it's not easy to tell an expert 'go work 60 hours a week and then at
the same teach and transfer your knowledge' and typically for no extra
reimbursement."
"Transferring skills is a job in itself and oil companies will be pressed
simply to have the expertise to extract the oil and gas."