‘Rise of ICT sector aiding oil and gas operations in South Africa’

ICT-wsquared photography  creative flickrDespite communication technology becoming more prevalent in the sector, services such as communication have not been commoditised in South Africa. (Image source: wsquared photography & creative/Flickr)The growing integration of information and communication technologies (ICT) in South Africa’s oil and gas operations is playing an important role in transforming the sector, according to latest study

Oil and gas companies are increasingly adopting emerging technologies in order to improve the efficiency of their operations and lower costs.

New analysis from Frost & Sullivan, ICT spend in South Africa: Oil and Gas Sector found that total ICT spend in the South African oil and gas sector was US$44.3mn in 2014. This is expected to reach US$50.6mn by 2019 at a CAGR of 2.7 per cent.

The study talks about ICT investment within the sector across seven categories — cellular connectivity, cloud services, data centres, fixed and non-cellular connectivity, IT hardware, managed services, and systems integration.

Frost & Sullivan information and communication technologies industry analyst Lehlohonolo Mokenela said, “Changes across the oil and gas sector necessitate new approaches to managing information, analysing patterns, and optimising outcomes in both downstream and upstream operations.

“Cloud services, machine-to-machine (M2M) and customised applications that enable remote access, communications, big data and anytime-anywhere collaboration, are among the main ICT trends driving operational efficiency in the sector.”

Despite communication technology becoming more prevalent in the sector, services such as communication have not been commoditised in South Africa. As a result, high costs remain a restraint to wider adoption. In the long-term, however, communication services are expected to become more affordable, and in turn, drive the uptake of cloud services.

“In order to make a mark, ICT service providers need to broaden their understanding of sector-specific requirements along with how ICT can be used to address them,” noted Mokenela.

“This is particularly true of the process-intensive oil and gas industry, which is looking at ICT to enhance exploration and production, improve refining and manufacturing, and optimise global operations.”

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?