1. - 1 - Premier’s Skills Summit Warwick Blyth CEO/Executive Director Introductory Remarks – Oil & Gas Services Sector February 2013

2. - 2 - ©2012 SA Oil & Gas Alliance Sub-Saharan Africa is one of the world’s fastest growing upstream opportunities Estimated 3-4 Bbbls oil discovered onshore in Rift Valley Offshore West Africa ~5 MMBO/day Pre-salt, deepwater growth North Africa ~5 MMBO/day Regional E&P Upstream expenditures in sub-Saharan Africa are currently >$30 billion annually and will continue at this rate for at least a decade ~200TCF recoverable gas discovered in Rovuma basin South Africa Licenses fully leased Gas development Early stage exploration

3. - 3 - ©2012 SA Oil & Gas Alliance The oil and gas industry involves a lot of players and has diverse skills requirements Fabrication & Construction (Subsea modules, jackets, topsides modules, steels & pipe, tugs/barges) Fabrication & Construction (Subsea modules, jackets, topsides modules, steels & pipe, tugs/barges) Maritime Repairs & Maintenance (Rig/ship repairs, class surveys, rope access services, certification, inspection & testing) Maritime Repairs & Maintenance (Rig/ship repairs, class surveys, rope access services, certification, inspection & testing) E&P Service Companies (Local/regional bases of global players) E&P Service Companies (Local/regional bases of global players) General Engineering Services (Mechanical, electrical & controls, civil & structural, geotechnical, environmental, chemical & process, marine, general & specialised project management) General Engineering Services (Mechanical, electrical & controls, civil & structural, geotechnical, environmental, chemical & process, marine, general & specialised project management) Equipment & Materials Supplies (Pumps, valves, pipes, motors, hoses, instrumentation, chemicals, hydraulic & pneumatics, process equipment) Equipment & Materials Supplies (Pumps, valves, pipes, motors, hoses, instrumentation, chemicals, hydraulic & pneumatics, process equipment) Logistics (Freight forwarding and clearing, warehousing & storage, helicopters, crew changes, chandelling, bunkering, stevedoring) Logistics (Freight forwarding and clearing, warehousing & storage, helicopters, crew changes, chandelling, bunkering, stevedoring) Other Services (ROV repair, training, financial, legal, commercial, IT, medical services, SHEQ services, recruitment, salvage, diving services, hospitality) Other Services (ROV repair, training, financial, legal, commercial, IT, medical services, SHEQ services, recruitment, salvage, diving services, hospitality) SA Service Sector Operators (License holders)

4. - 4 - ©2012 SA Oil & Gas Alliance Billions of dollars of local and regional oil & gas projects will create opportunities over the next decade Refineries Clean Fuels (R40bn) Graduate & Post-Graduate Engineering & Geoscience Skills Wide Variety of Artisan Skills Needed Compliance with International Standards and Work Practices Academic and On-the-job Training is Required for Effective Skills Development Time 0-3 Years10+ Years Orange Basin Gas to Power ($2bn+) Shale gas Production? ($bns) East Africa LNG Phase 2+ (USD20bn+) Rig Repair Hub (~R3bn/yr) East Africa LNG phase 1 (USD10bn+) Shale Gas Exploration ($200m) PROJECTS SKILLS 4-10 Years SA Deepwater Developments? ($bns) East Africa Rift Developments ($4bn+)

5. - 5 - For further information contact: Warwick Blyth: Tel + 27 21 425 8840 : wblyth@offshoreafrica.co.za Website : www.saoga.org.za