The end product of a reconnaissance visit is a report which summarises the views of a team of experienced specialists on all aspects of the proposed campaign. This report should be used to put on record the team's recommendations concerning the drilling campaign strategy, the skills/staff requirements (including an organisation chart with timing), the contracting strategy and an operations planning time chart. It should also address local politics, labour laws and difficulties, special difficulties in doing business, customs, immigration and residence formalities, climate, health, etc. It should include maps and photographs where appropriate to illustrate access routes, proposed drilling locations, possible bases, ports, other local facilities, etc.

As a guideline, the report should address the following items:

1 Concession Agreement

  • tax position
  • exoneration from import duties
  • government reporting procedures
  • remittal of foreign currency.

2 Joint Venture Agreement (if partners)

  • reporting procedures
  • authority constraints
  • rules concerning buying/selling of surplus materials.

3 Contact with local authorities

  • List addresses and contact details for the following entities:
  • Ministry of Finance (Customs & Excise)
  • Ministry of Mines (Licences)
  • Ministry of Transport (Special transport permits)
  • local authorities (Police, Harbour Master, PTT)
  • embassy, consulate.

4 Local conditions

  • political climate/stability (Nationality constraints, labour disputes)
  • seasonal effects (weather windows)
  • holidays/weekends (Ramadan).
  • check procurement policy for diesel,  luboils and greases.
  • check on import restrictions.
  • are there "blacklisted" suppliers?
  • is there a "buy local" policy?

5 Contact with other local companies

  • List addresses and contact details for the following:
    •  supply agents/ stockists
    •  manufacturers
    •  suppliers.
  • Are work/ machine shops available for
    • engine repairs (do they have spare parts)
    • thread cutting (are they licensed)?
  • Visit any competitors in the area and see if there is any potential for learning from their experience with bureaucratic procedures, etc. or for optimisation by sharing common facilities.
  • availability of drilling surplus
  • check whether tools/equipment can be hired.

6 Contact with International Services Companies (Halliburton, Baker, Schlumberger, etc.)

  • Check availability of key services in country (or neighbouring countries):
    •  drilling
    •  cementing
    •  logging
    •  well testing.
  • Check buy-back possibilities for
    •  bits + nozzles
    •  packers
    •  bridge plugs
    •  cementing equipment
    •  wellhead equipment
    •  cement
    •  mud chemicals.
  • rental possibilities for running tools.
  • quality requirements (inspection, certification)?
  • delivery times (FOB, etc.)?
  • prices ex works and country prices?
  • possibility of back-up support (reciprocating)

7 Local supply of key material and equipment:

  •  safety clothing (helmets, goggles, shoes, overalls, etc.)
  •  safety eqt. (fire extinguishers)
  •  packing materials
  •  general tools (incl. strapping machine)
  •  timber (dunnage for storage of pipes, etc.)
  •  slings, shackles, baskets, containers (+ certs.), pallets
  •  stationery (incl. computer paper)
  •  communications eqt.
  •  foodstuffs
  •  generator sets
  •  pumps, waterpipes
  •  office equipment
  •  furniture
  •  air-conditioners
  •  fuels, luboils, greases
  •  construction materials (cement, rebar, angle iron)
  •  check surplus available (condition and certificates available)

8 HSE

  • contact details for local and government agencies responsible for Health Occupational Safety and Environment.
  • contact details for local hospital (suitable for expats) or clinic
  • contact details for environmental /safety consultants for in (or neighbouring) country expertise.
  • contact details for suppliers in (or neighbouring) country of medical equipment
  • contact details of aviation suppliers for light aircraft and helicopters
  • contact details for safety training schools
  • contact details for local doctors accredited to provide health care for expat families
  • contact details for suppliers of safety equipment - PPE and ability to service same.

 9 Human Resources

  • contact details for local labour lawyer
  • contact details for local employment agencies
  • contact details for HR representatives of other oil and international companies operating in-country.
  • contact details for contractors to provide competent manpower for support ops.

10 IT and Telecomms

  •  Address & Contact details for the Ministry of Posts & Teleccomunications (PTT) For Radio & Satellite Licence Applications
  •  Address & Contact details for the National telephone service provider (Is it a state monopoly eg PTT, or other ?)
  •  Details of local and national Internet Service Providers (ISP's)
  •  Details of mobile phone operators and networks (coverage) in Mozambique
  •  Details of local telecomms suppliers (phone systems, fax machines)
  •  Details of local IT companies, particularly those who can provide local IT support services (not just hardware sales)
  •  Details of any companies specialising in Office cabling / fit-outs.

11 Buying

  •  How do local prices compare with international prices?
  •  What are delivery time guaranties (is expediting required)?
  •  Can international freight be sent directly or need to transit in neighbouring conntry
  •  Can foreign currency be transmitted (what is procedure)?

12 Preservation and packing

  •  climatic conditions during materials transport and storage?
  •  extent of handling and transport involved?
  •  are there weight/size restrictions?
  •  what lifting devices are required:
  •  hoisting eyes?
  •  pre-slinging?
  •  palletising (jungle wrapping)?
  •  heavy lifting bags?
  •  containerizing?
  •  sufficient materials available for rebagging and strapping?
  •  packing need to be resistant to theft?
  •  packing require easy access for inspection (customs)?
  • own containers required for storage on-site?

13 Insurance

  •  what needs to be insured (Company policy)?
  •  regulations (local insurance compulsory or recommended)?
  •  who covers transport (time limit)?
  •  who covers storage (block cover?)?
  •  what are claims procedures?
  •  are claims paid in local or foreign currency by local insurers?
  •  premiums to be paid in local currency?

14 Shipping

  •  local regulations or policies regarding choice of shipping/airline companies?
  •  recommended (air)port of discharge
  •  infrastructure?
  •  facilities?
  •  shipping frequencies?
  •  information on reliable shipping lines and airlines:
  •  shipping times
  •  schedules
  •  tariffs
  •  are there ro-ro/container/conventional services?
  •  what is the inducement tonnage for alternative ports of call?
  •  .Is there sufficient tonnage for economical charter?

15 Seaport facilities

Capacity and condition

  • ship's berth (size, draft)?
  • cranes (shore, mobile, floating; ranges)?
  • barges?
  • forklift trucks?
  •  trucks/trailers?
  • slings, shackles, spreader bars, etc. (certificates)?
  • quay, space/access (weight restrictions)?
  • open/covered storage?

Security:

  • access control (are passes required for personnel and vehicles)?
  • fencing?
  • lighting?
  • locked stores? 

Tariffs:

  • materials handling from/to ships/storage/truck etc.?
  • use of equipment?
  • use of open/covered storage?
  • free storage time in port?
  • What is clearance/on-forwarding capacity of the port?
  • Port congestion, which times of year, priority berthing?
  • Working hours of dock labour, opening hours of port, office hours of the port administration?

16 Airport facilities

  • Airport facilities and charges for handling, storage, clearance and onforwarding of materials?
  • airport agents available/required and what are their tariffs?
  • International traffic?

17 Importation and exportation

  • reputable and experienced agents available (check with other Companies and port authorities)?
  • agent's conditions and tariffs?
  • import or export licenses required (general or for certain commodities)?
  • certain materials prohibited from import or export?
  • import/export tariffs (duties and taxes)?
  • documents required for
    • licence application?
    • importation, exportation?
    • payment (foreign currency remittance)?
  • who needs these documents, how many original/copies and what are time factors involved?
  • should courier services be use for document transmittal? which courier services are available?
  • do documents require special clauses (country of origin, non-transferal) and/or do they require legalisation by embassy or consulate?
  • is pre-shipment inspection required by Government approved agent. If so, what are procedures?
  • procedures concerning dangerous goods?
  • do agents provide clearance services only or also on-forwarding services. (Which transporters do they use and what are the costs)?
  • time required for customs clearance and on-forwarding?
  • It is essential to be very precise on documentation (pro-forma invoices, letters of credit) required for the import of material. Giving government departments exactly what they require/expect can avoid unnecessary delays (exact wording to be used, the number of copies, the size of the paper, the colour of the paper, etc).

18 Transportation

  • road system LH or RH?
  • road conditions (seasonal differences)?
  • weight/size restrictions by road/rail/air?
  • capacities of bridges?
  • heights of overhead cables (HT, telephone, etc.)?
  • rules for police escort and expatriate movement?
  • restrictions for transport of dangerous goods (road/rail/air), such as chemicals, explosives and radioactive materials?
  • road haulage contractors available:
  • what is reputation?
    • do they have well trained staff?
    • what are their safety records?
    • what type of vehicles do they use, how many, what condition?
    • what are size/tonnage restrictions per type of vehicle?
    • what are optimum loads?
    • what are general tariffs?
    • what is insurance cover?
    • do they have certified/good condition lashing equipment/tarpaulins/nets?
    • is adequate supervision available during loading/offloading?
    • Is there adequate public road transport (buses, taxis)?
    • Is there possibility of car rental:
    • what firms?
    • what conditions/tariffs?
    • what is condition of vehicles?
    • what is insurance cover?
    • Is there sufficient fuel at all times?
    • What are freight transport possibilities by rail:
    • what are frequences/schedules (are they reliable)?
    • what are costs (including demurrage)?
    • is transfer required (what are costs)?
    • how is security?
    • do they have loading/lashing eqt./tarpaulins, etc.?
    • what is their insurance cover?
    • What are freight transport possibilities by fixed wing and/or helicopter (airlines, charters, military, contractors)?
    • Are flight operators and aeroplanes/helicopters approved by Company?
    • Is aircraft fuel and fuel dispensing equipment available?
    • What are schedules, capacities and rates of airline workers?
    • What are quantity, types, back-up possibilities, action radiuses and standing/flying charges for helicopters (do they accept Company standard contract terms)?
    • What are airfield/airstrip conditions and facilities (night flying, NDB, refuelling)?
  • What sea transport is available:
    • liner vessel Ro-ro, general cargo, container?
    • charter?
    • supply vessel?
    • barge + tug?
    • landing craft?
    • What are schedules, shipping times, rates?
    • What are demurrage rates?
    • Do vessels have/require own gear for loading/offloading?
    • What are maximum lifting capacities?
    • What are hatch dimensions?
    • What are dimensions, capacities, draft, restrictions of vessels?
    • What flag (flag dispensation required?)?
    • Can Company charter party be used?
    • Are fuel, luboils/grease, maintenance days included?
    • Who supplies certified lifting tackle?
    • Who covers insurance of materials, contractors materials, third party liability?
    • What are weather restrictions?
    • What are safety records?
    • How is security?

19 Storage

  • Is a staging area required/available?
  • What size of open/covered area available?
  • What is optimum location?
  • How is surface/drainage?
  • How is security (lighting/fencing) and safety (proximity of public areas)?
  • Are watchmen required?
  • How are access roads?
  • What is condition of stores (construction, access for FL/truck etc., potable water, electricity/lighting, office space)?
  • What are climatic conditions?
  • Is racking available?
  • Is fire fighting eqt. available?
  • What are rental charges/rental periods?

20 Handling

  • Can cranes, forklift trucks be hired (inspected/certified only)?
  • What contractors are available; check
    • reputation;
    • types/quantities/condition of equipment;
    • repair possibilities/spare parts back-up;
    • safety records;
    • available slings, hooks, etc. (certification;
    • supervision;
    • skilled/licensed drivers.
  • Are containers/baskets etc. required and available (check lifting appliances and certs)?
  • What type/size of pallets are used (do sizes correspond with truck dimensions for economical loading)?
  • Are wrapping and strapping materials and tarpaulins available?
  • Are bulk handling facilities available
    • what is capacity (double or single silo)?
    • back-up compressor?
    • connections (couplings/hoses)?
  • Are heavy lifting bags used; what type/capacity?
  • Is Area Classification 2 required (when operating on rig site)?

21 Administration

  • What is size/complexity/location of operations?
  • Where will other administrative functions be based?
  • What system is being used by Finance?
  • What computer hardware/support is available locally, what is cost?
  • What is reliability of electricity supply and what is voltage/frequency?
  • Is training required?
  • Are their special records and accounting procedures required by government/or partners?
  • Does end-responsibility for import/export of contractor's materials rest with the company?
  • Are local procedures known/available concerning materials documentation and has Group Materials been informed of relevant requirements?

22 Staffing

  • What materials/supply staff will be required:
    • skills (knowledge, experience)?
    • quantity?
    • married or bachelor?
    • nationality (policies, languages, schooling)?
    • preferred age?
  • What are living conditions:
    • housing/furnishing?
    • schooling?
    • food?
    • medical facilities?
    • safety/security?
    • working hours/holidays?
    • public transport?
    • postal/telephone services?
  • Where will the materials/supply staff be located?
  • What are leave schemes?
  • Is suitable local staff available (can they be trained short-term or taken on loan form established OpCo)?
  • Can work be executed in existing OpCo (or leave relief provided)?
  • What are restrictions/procedures concerning work permits/visas?
  • What is availability and condition of hotels and offices?

23 Emergency back-up

  • What reserves are required:
    • plugging materials?
    • chemicals/cement?
    • tubular?
    • wellheads?
  • Are there other companies in the country or in neighbouring countries (provided there are easy and quick import facilities)?
  • Can these companies help out in case of
    • unexpected mud losses?
    • loss of hole (re-drill)?
    • delayed delivery of own supplies?
  • What is the fastest mode of transportation between these parties in emergencies?
  • Should assistance be on basis on loan, hire or purchase?