Fred Silva, group administrator of Navilog Group, talks to The Energy Year about the importance of the Barra do Dande project for the company, the progress in its relationships with IOCs, its partnership with Sea Titan and the potential challenges for the company’s growth strategy. Navilog Group is an integrated logistics and freight services provider.
How do you expect Navilog’s relationship with IOCs to progress?
We have started providing services for TotalEnergies. We are currently doing the transportation of samples to overseas labs for GRI [Gas Research Institute] analysis, among other services. Our contract is not as large as we would like, but it’s a start. We have been building a relationship with them for the past three years, and now we have succeeded. However, it’s not an exclusive contract, but we work very hard to provide excellent service to keep the door open for future collaboration.
In 2022 we brought in equipment for Total E&P in order for them to certify some of their rigs, and this ended in May 2023. They have reached out to us again to provide other services, which has created new opportunities to expand while giving us greater visibility.
What is your assessment of Navilog’s partnership with Sea Titan?
When we started working together, we had a joint venture just for the Barra do Dande project. We grew a lot as partners on this project, so currently we are talking about future investments.
In Mozambique, Sea Titan has started operating a crewing school. This is a great project that could be used as a blueprint to create a crewing training centre here in Angola.
Another priority for us is to develop our shipping department. We have a licence, but it is not our business focus right now. We have always been more engaged in oil and gas logistics, but our next chapter will be to expand into the general logistics market while simultaneously expanding our fleet.
What are the potential challenges to your growth strategy?
The greatest challenge for me in Angola mostly concerns manpower. It’s quite hard to find capable people. Secondly, keeping employees after investing in their training to the level of expertise we require is difficult.
A related problem concerns protecting the knowledge of our operations. We don’t have much of a business confidentiality culture in Angola.
Another big concern is the impact created by internal politics in the country. You can plan and forecast for the following year, but then, before you can anticipate it, new agencies are created that make new regulations. Adjusting to those changes can create constraints in our business development.
What upcoming projects is Navilog most interested in?
We are interested in participating in the Cabinda, Lobito and Soyo refineries. Logistics in Cabinda can be quite tricky, and most equipment will have to be imported from abroad, which entails prolonged Customs clearances and authorisations processes.
However, we are satisfied with the growth we’re experiencing currently. Thanks to our participation in the Barra do Dande operations, we’re able to further grow our business with IOCs. Right now, we intend to observe the market for further opportunities for us to take part in. Despite word of various prominent projects, many do not materialise. This is a risk that must be considered in any investment decision.
In any case, in five years, I foresee Navilog growing larger and steadier. I believe that we will be able to achieve significant growth if we maintain our strategy, proceed methodically and develop sustainable projects and perhaps even work with Sonangol and other large players. Nevertheless, we plan to maintain contained, risk-assessed growth and make sure that we achieve all our objectives.
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