Task team set up to address challenges in oil industry

Rob Davies. (Image: GCIS)

The task team was established during Rob Davies' visit to the Transnet National Port Authority, Port of Saldanha, in the Western Cape.

The task team said the department will amongst others consist of the community, business fraternity, labour and government.

The task team that has been set up, according to Davies, will have to come up with a full audit in four weeks on how to unlock the bottlenecks that impact negatively on the implementation of the ability to service the oil rigs, also known as oil platforms, when used in their marine prospecting and extraction role.

"These bottlenecks and challenges include limited companies providing oil rig maintenance and repair, inadequate skills development, and supply chain for the locals remain a fundamental aspect of making sure that the community benefit from the oil rig," added Davies.

He said that government cannot allow only high-end companies to benefit from servicing the oil rigs.

Davies, who was accompanied by representatives of the South African Bureau of Standards, National Metrology Institute of South Africa, South African National Accreditation System and National Regulator for Compulsory Specifications met with the Saldanha Bay business community and the management of the oil rig in the Port of Saldanha.

A typical oil platform, also known as an oil rig. SA has the potential to become a major oil platform/rig repair and maintenance hub. (Image: Public Domain)

"Saldanha Bay has... potential of becoming an employment hub if we do things the right way," said Davies.

According to Davies, paying attention to getting local businesses accredited to be able to service the oil rigs and to become proper players of the oil rigs is instrumental to growing the economy and creating employment.

"We need to give the local companies a fair opportunity as all other companies to service the oil rigs by assisting them to meet the standards required," added the Minister.

These efforts, according to Davies, will go a long way in creating employment.

Davies noted that 28 international investors have showed interest in investing in Saldanha Bay IDZ and South Africa remains a preferred choice of investment opportunities.

The Minister's visit was part of "Taking the dti to the Factories" campaign, which is an initiative of the dti, that aims to determine the outcomes and impact of some of the measures government has put in place with regards to the promotion of economic growth in South Africa and new opportunities that can be explored.