Developments and Prospects of Oil & Gas

Exploration in the Eastern Mediterranean Region

and How these Translate to Employment
Opportunities Training and
Education Needs
DR. CHARLES ELLINAS
Executive President
Frederick University, 19 September 2013

CyprusOffshoreExploration
Review
Cyprus has so far leased 6 Blocks and progress is as follows:
Noble Energy is conducting a second appraisal drilling in Block 12. The company
will announce the revised estimates volume by October.
ENI/KOGAS have Blocks 2, 3 and 9 and are about to start their seismic survey
programme, with exploration drilling scheduled to start second half of 2014.
Total has Blocks 10 and 11, with potential both for oil and gas. They have just
complete their seismic survey programme, with exploration drilling scheduled
in 2015.
Key point: the Government signed the LNG MoU with Noble, Delek/Avner.
Negotiations are in progress for the full LNG Project. Agreement, scheduled to be
completed by December 2013.

Introduction
A large number of workers will be needed which may peak to 7,500 during the
construction of the LNG plant at Vasiliko with about 700 jobs to be created during
the operation phase. Note: for every local job created during construction, three or
more other local jobs will be also created for external support, secure and supplies.
Government, Oil & Gas industry and academia should provide the necessary training
to professionals that this new industry demands to function efficiently. Emphasis
should be given to training for lower skills jobs and technicians needed for
construction.
Education is the driving force for the development of the oil & gas industry. Cyprus
needs to invest to education if it is to become a strong energy center in Eastern
Mediterranean.

LNGPlantatVasiliko

The Vasiliko Energy Centre has already been allocated, the required land, by the
Government for the development of the LNG plant and it is available and
sufficient initially for 3 trains.

Located in the Zygi Municipality in the Southern part of Larnaca District.

Is a thinly populated area (88 inhabitants/km2) and because it is an existing

industrial area has already most of the required infrastructure.

Some very sensitive plants are also placed there, such as a Power plant, a Naval
base, the Petrolina and VTTI Storage tank farms. The Zygi Police Station, the
National Guard and some Special Intelligence police units are responsible for the
security of the area.

Possible Layout of Cyprus LNG Plant in Vasilikos Onshore facility to liquefy gas for export
Pre-FEED:
echnip have just completed
the Select Phase development
Concept selection studies
Collection of site specific
data for FEED
Permitting and construction
execution plans
Technical and commercial
FEED RFP bid package
FEED and EPC project
schedules
Cost estimate
One and two train options
A minimum of 6 tcf is needed
to make the LNG Plant viable

DevelopmentofAphroditeandLNGPlant
The key stages in the development of the Aphrodite gas field and LNG Plant are as
follows:
Appraisal drilling, as mentioned earlier, has already started, and by Q4 we
should be able to confirm gas volumes. However, if a second appraisal is
needed assessment of commerciality may have to await until well into 2014.
As a result The Final Investment Decision (FID) for train 1 may be delayed until
2016.

DevelopmentofAphroditeandLNGPlant

(2)

We hope to be able to start construction of the offshore facilities, subsea

pipeline and the LNG Plant at Vasiliko in 2016. This is achievable if all
preparation is carried out as planned and will provide good employment
opportunities for Cypriots.

Delivery of natural gas for the local market will then be expected by the end of
2019/2020.
And by the end of 2020/early 2021 the LNG Plant is expected to be operational,
starting LNG exports to the Far East Europe and other parts of the world.

ProjectDevelopmentStages
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

MAINPROJECTMILESTONES
OWNERSACTIVITIES:INPARALLELWITHTRANSITIONTOFEEDPHASE
TRANSITIONTOFEEDPHASE
FEEDPHASE
EPCPHASE
DETAILEDENGINEERING
PROCUREMENT
CONSTRUCTION TRAIN1&ASSOCIATEDFACILITIES
SitePreparationT1&Ass.Fac.,PilingT1
CivilWorks Train1&Ass.Facilities
PipingWorks Train1&Ass.Facilities
MechanicalErection Train1&Ass.Facilities
E&IWorks Train1&Ass.Facilities
Painting&Insulation Train1Ass.Fac.
LNGStorageTanks(2x180,000m3FullContainment)
LNGJetty,LoadingPlatf.(2Berths)&Flare
Precomm./Comm/Startup
FIRSTLNGEXPORTSFROMTRAIN1

HowdoesOil&GasIndustryWorks

UPSTREAM
Searchingfor
potentialnatural
gasfields

MIDSTREAM

DOWNSTREAM

Transportationby
pipelinesand
storage

Makingitusefulfor
consumers

Listofrequiredskills

10

BulldozerOperators
BackhoeOperatorsorExcavators
FrontendLoaderorPowerShovelOperators
GraderOperators
HeavyHaulTruckers
ShutteringJoiners
SteelRebarFixer
Concreteworker
CivilConstructionEngineeringTechnologists
Materials/GeotechnicalTechnologists
Drafting/CADD/3DModelingTechnologists
SurveyTechnologists
CraneOperator

Listofrequiredskills

11

HeavyDutyEquipmentMechanicsorTechnicians
IndustrialElectricians
IndustrialMechanics/Millwrights
Insulators
IndustrialPainters
SteamfittersandPipefitters
Welders
ElectricalProjectTechnologists
ControlSystems/ProgrammableLogicControl(PLC)Programmer
MechanicalTechnicians
Health,SafetyandEnvironment(HSE)Advisors/Coordinators
Medics/OccupationHealthNurses
EmergencyResponsePlanner

(2)

Listofrequiredskills
FacilityEquipmentandOperatingUnitMaintenance
ProjectEngineers
ElectricalandInstrumentationSpecialist
QualityControlInspector
OccupationalHealthandSafetyOfficers
ProcessSafetyEngineers
SupportStaff
Labourers
Drivers
Cleaners
CateringStaff
SecurityStaff
AdministrativeStaff
12

(3)

ExampleofskillsneededduringConstructionPhase

CONSTRUCTIONPHASE

14

ConstructionPhases
The LNG Plant at Vasiliko will be a complex project with major construction phases as
follows:
1.
2.
3.
4.
5.

15

Preparation of the land area at the LNG Plant site.

Transportation, mobilization and installation of labour camps.
Construction of LNG Plant processing, tank storage and work areas.
Testing and commissioning of systems and equipment.
Construction of jetty and LNG exports facilities.

DetailsofphasesofLNGPlantconstruction

SitePreparation

Secondaryplant
facilities

16
16

Accessroads
Constructioncampandtemporaryfacilities
Cleaning,levelingandexcavation
Electricity(includingitsrelatedfuelstorage)
Water(includingitsrelatedwaterstorage)
Concretebatchingplants
Settlingandslabconstruction
Constructiondock

Heliport
Gasturbineelectricitygenerator
Waterhouses andlaboratory
Administrationbuilding
Permanenthousing
Staffamenities
Sewerageandwastetreatmentfacilities

DetailsofphasesofLNGPlantconstruction

(2)

Feed gasreceivingarea,liquidseparation,gasmeteringand
pressurereduction
Processing modules Safetysystemsandgroundflares
constructionand
Gasdehydrationandcarbonadsorptionunits
assembly
Refrigerationandliquefactionmachinery
LNG,LPCandresidualNGLstoragetanks
Refrigerantstorage
Shiploadingpumpsandpiping

Marine Facilities

Jetty,platforms,trestle,tankerberth
Piledconcretebreakwaterprotectingshore
Loadingarms,unitydock
Tugboatberths

ConstructionPhaseNeeds
Materials / Supplies

Construction

Services

Aggregate

Earthworks

Surveying / Design Services

Cement

Drainage

Scaffolding

Armor Rock

Roads

Cleaning

Welding Consumables

Concrete

Waste Disposal

Industrial Gases

Piling

Environmental Services

Office Supplies

Reclamation

Public Relations

Lumber

Plant buildings

Equipment Rental

Fuels and Lubricants

Marine Construction

Housing

Construction Consumables

Heavy Duty Equipment Mechanics or

Technicians

Transportation

Electricians

Catering / Laundry

Mechanisms/Millwrights

Telecommunications

Insulator

Security

Steamfitters and Pipefitters

Vehicle Maintenance

Welders

Import/Export

Control Systems/
Instrumentation

Medical

Mechanical Technicians

OPERATIONALPHASE

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OperationalPhase
Most of these jobs require very high skill levels as they involve operating and
maintaining advanced technological equipment.
Jobs that will require less skills: cleaning and simple maintenance tasks, security,
catering and secretarial services (could easily be filled by locals)
The operator of the LNG Plant must be required to maximize employment of local
labour. This can be promoted through different methods: a) the government
authorities must develop national employments policies b) award the LNG Plant to
be developed and be run by companies who are genuinely concerned about local
content. KRETYK must have a leading role in this.

20

Departmentsneededfortheoperationof
LNGProject

21

OfficeoftheManagingDirector
Health,EnvironmentalandSafety
LNGProjectManagementTeam
Operations
Maintenance
Engineering
Financial
HumanResources
Commercial
Legal
GovernmentRelations
CommunityRelations
Logistics/IT

OperationalTeam
ManagementTeamSupportRoles
ProjectManager
ConstructionManager
CommercialManager
Engineers
Environmental,Quality,Safety
Officers
Distributionandproduction
managers

IndustrialRelations
HumanResources
Procurement
PlannersandSchedulers
Administrativepersonnel
Clerical
Superintendent
Machineoperators

Sciencetechnicians
TechniciansandTrade
workers
22

Currentsituationoflocalworkforce

Unemployment is expected to increase significantly over the next few years.

There will be difficulties in filling positions in the LNG project due to the fact that
there are no relevant LNG oil & gas industry skills, experience and knowledge
locally.

There is a need for an effective education and training programme to train local
labour for the specific requirements of the LNG Plant project. Even then, most
jobs will go to skilled foreign workers, ie with more than 10 years in the sector.
We must concentrate on preparing locals for unskilled, semiskilled and skilled
positions.

23
23

WORKFORCETRAININGSTRATEGY

24

WeneedaWorkforceandTrainingStrategy

Cyprus must develop a Workforce and Training Strategy: This describes the Projects
approach to ensure cooperative strategies are in place to meet the Projects
workforce demands. The Strategy adopts a long range outlook and targets local
students and existing and potential employees.

25

Thisshouldbesupportedby:
SocialImpactManagementPlanfortheLNGFacility
StakeholderandCommunityEngagementPlan
ProjectTrainingPlan
LNGProjectEmployeeRelationsManagementPlan

26

WorkforceandTrainingobjectives
To ensure an adequate and timely supply of labour to the Vasiliko LNG Project by:

Maximizing employment opportunities for locals to meet Project needs.

Developing and increasing the available pool of skilled labour.

To seek to address local workforce and trainingrelated concerns by:

27

Increasing employment, retention and career development for local people.

VasilikoLNGApproach
Vasiliko LNGs approach to developing and delivering the Workforce and Training
Strategy should be to collaborate with relevant education establishments, industry,
government and community stakeholders in order to support a targeted and
coordinated approach to workforce and trainingrelated issues. Eventually this
should be done in collaboration with the main Contractor and in accordance with the
Engineering Procurement and Construction (EPC) agreement for the Project as it
relates to labour procurement.
The challenge is to build local workforce through training and development
initiatives of local trades and professions that are currently not directly related to the
LNG industry.

28

LocalEducationandTrainingProgram
Should aim to increase the profile of the Gas and LNG Industry as a career
opportunity through the following:

29

Partnering in education establishments based traineeship and apprenticeship

programs.
Supporting industry specific projects in educational establishments.
Participating in education seminars and workshops.
Providing industry familiarization to educators.
Scholarship programs and professional pathways.

WorkforceDevelopment
Vasiliko LNG Project recognises the importance of building the local workforce.
The Workforce Development Plant aims to create local jobs and train people in
technical and professional skills that are needed during the construction phase of the
Project and future employment opportunities during the operation phase of the
Project.
At peak almost 7,500 workers will be employed on Project activities. We hope to fill
25% of these positions by locals. In addition, for every job on the project three or
more will be employed in support roles and in providing services and supplies to the
project.
In total we hope to create 10,000 jobs through this development. In addition we
should train locals who will be responsible for operating and maintaining the LNG
Plant when production commences in 2020/2021.
30

WorkforceDevelopmentPlan

We need a LNG Workforce Development Plan to advise the industry as well as the
Government of the skill requirements and numbers of workers required to be
trained.

The maximize the benefits from this opportunity we need to form a Gas and LNG
Skills Taskforce.

The Taskforce should work with Government and other key stakeholders to
ensure the availability of a competent and sustainable workforce to support the
current and future development of the LNG Industry.

The Taskforce should undertake strategic workforce development planning to

prepare for the considerable increase in skills demand over the next ten years.

31

WorkforceDevelopmentPlan

32

(2)

This should include assistant to and reorientation of existing unemployed

graduates who would like to follow up a career in the Oil & Gas sector.

Preparestudentstoworkintheoilandgas
industry

Public and private universities should strengthen and upgrade their related
courses, to meet the industry's expectations. Early preparation is crucial to be
ready for construction in 2016.

Education establishments should specifically design programs to prepare students

to work in the oil & gas industry. Example: courses should require students to do
an internship abroad to gain field experience. Companies will be looking for
people with relevant experience. They will provide additional training where they
needed to be more specialized.

Universities should regularly ask industry experts for their input to ensure
graduates are meeting industry needs.

33

Preparestudentstoworkintheoilandgas
(2)
industry

Oil and gas industries should demonstrate their support for training and
education by providing financial help with facilities, equipment and scholarships.
Also they could provide paid internships for selected students during summer.

The Cyprus Productivity Centre as a training and productivity center could offer
preemployment training to help and prepare students that are looking to break
into oil and gas industry. It could provide students knowledge and handon
training to start working in LNG Project specific areas.

Our students are our most important asset and education establishments should
provide the best education and the right guidelines.

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Strategiestobuildacompetentworkforce

Attractpeopletotheindustry.

Developrightskillsfortheindustry.

Developtherightsystemsandprocedures.

Establishasustainablemodel.

EstablishaLNGCareerAdvisoryCenter.
ThereisenoughtimebetweennowandLNGPlantoperation,forpeopletobe
educatedandtrained,togaintherequiredskillsandexperience.Companiesand
governmentshouldprovideallthenecessarysupport.

Trainingshouldbeprovidedbythecompaniesoperatingtheplant.

35

Benefits
Creation of longterm sustainable employment opportunities.
Improving schools and universities on technical matters.
New skills will be developed with new opportunities for future generations.
The construction and operation of an LNG plant can provide the impetus and start
up funding for small local businesses of various kinds, as subcontractors for goods or
services to the LNG project and late to LNG Plant.

36

Conclusions

Jobs in the Oil & Gas industry will depend very much on the training policies we
implement now. Funds should be increased in technical education and training,
and local educational institutions should include relevant subjects in their
curricula, a start has already been made.

The expertise of contractors should be used not just to construct and operate the
facility but also to train local workers and this will be made part of the
requirements for winning the contract to build and operate the LNG Plant at
Vasilikos.

We have a lot to achieve in a short time but we owe it to the people of Cyprus. All
should benefit from this exciting opportunity.

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