PetroSA together with Statoil Norway and Lurgi Germany established GTL.F1 in 2005 with the aim to show and commercialize the nucleus Fischer Tropsch ( FT ) engineering. GTL is seen as both a competitory option to, and a addendum to, other gas monetization paths, offering other facets to the developments than simply the monetization. The universe ‘s entire gas militias are estimated to be approx. 160 trillion three-dimensional metres. A significant portion of these militias are situated far from the chief gas markets without grapevine or other substructure. Hence, it is frequently referred to as “ stranded gas ” , and if converted into man-made fuel could bring forth one million millions of barrels with man-made oil. GTL.F1 is hence good equipped to add value to a national oil company with “ stranded gas ” . PetroSA ‘s Vision 2020 has four strategic pillars and one of them is Growth/Security of Supply. Growth/Security of Supply Centres on undertakings that support South Africa ‘s Energy Security Master Plan, purpose to turn the Company ‘s oil and gas militias and supply long-run income growing and variegation, while increasing PetroSA ‘s function as a accelerator for growing in the liquid fuels sector. One of the enterprises to accomplish the Growth/Security of Supply end is through engineering development. PetroSA seeks to commercialize its GTL and related engineerings. Harmonizing to Kahen ( 1994 ) , the deficiency of a comprehensive attack to engineering transportation for developing states has prohibited sufficient apprehension of the procedure. As engineering transportation is multi-dimension and multi-factor, there has non hitherto been built a consistent methodological analysis for engineering transportation and its rating to developing states. The absence of a figure of quantitative, qualitative, and other variables in any theoretical account of engineering transportation misleads policy shapers when optimizing their engineering commercialisation scheme. A qualitative, quantitative, and knowledge-based incorporate theoretical account is the proposed comprehensive theoretical account put frontward in this research.
Petroleum Oil and Gas Corporation of South Africa ( PetroSA )
The Petroleum Oil and Gas Corporation of South Africa ( Pty ) Ltd ( PetroSA ) is the National Oil Company of South Africa and is registered as a commercial entity under South African jurisprudence. PetroSA ‘s portfolio of assets spans the full crude oil value concatenation, with all operations run harmonizing to world-class safety and environmental criterions. PetroSA was formed in 2002 following the amalgamation of Soekor E and P ( Pty ) Ltd, Mossgas ( Pty ) Ltd and parts of the Strategic Fuel Fund. Wholly-owned by the State, PetroSA is a subordinate of the Central Energy Fund ( Pty ) Ltd. The nucleus concern activities of PetroSA are:
aˆ? The geographic expedition and production of oil and natural gas ;
aˆ? The engagement in, and acquisition of, local every bit good as international upstream crude oil ventures ;
aˆ? The production of man-made fuels from offshore gas at one of the universe ‘s largest Gas-to-Liquids ( GTL ) refineries in Mossel Bay, South Africa ;
aˆ? The development of domestic refinement and liquid fuels logistical substructure ; and
aˆ? The selling and trading of oil and petrochemicals.
1.1.1 Vision 2020
PetroSA ‘s Vision 2020 strategic aim is to guarantee that the administration becomes a fully-integrated, commercially competitory National Oil Company providing at least 25 % of South Africa ‘s liquid fuel demands by 2020. The Company is be aftering to accomplish this ambitious growing way through a figure of strategic enterprises, centred on Sustainability ; Growth/Security of Supply ; Transformation ; and Safety, Health, Environment and Quality ( SHEQ ) . These straddle the full PetroSA value concatenation, from upstream to downstream.
Figure 1. PetroSA ‘s Vision 2020 ( Beginning: Adapted from PetroSA ‘s Annual Report 2010 )
1.2 Low Temperature Fischer Tropsch ( LTFT ) Technology
Transformation of natural gas feedstock via a chemical transition procedure to liquid fuel ( gasoline, Diesel, kerosine and other fuels ) merchandises, waxes and lubricators can be provided by Gas to Liquids ( GTL ) engineering, utilizing the Fischer- Tropsch ( FT ) engineering. PetroSA, a province owned South African company, developed the universe ‘s first commercial GTL works in Mossel Bay in South Africa. The Mossel Bay refinery remains the largest natural gas to liquid installation in the universe. PetroSA together with Statoil ( Norway ) and Lurgi ( Germany ) established GTL.F1 in 2005 with the aim to show and commercialize the Low Temperature Fischer-Tropsch ( LTFT ) engineering. The discovery engineering, under trial in Mossel Bay since 2004, allows for the transition of gas to the clearest wax to day of the month, without the demand for secondary clean-up. Assorted automotive fuels can now more easy be produced. This is a major discovery as similar gas-to-liquid workss around the universe have struggled with the high degree of drosss in the wax merchandise. The deductions for world-wide acceptance are tremendous and have vast fiscal deductions for PetroSA and its spouses. This engineering could interrupt the technological deadlock impacting multi-billion dollar gas-to-fuel undertakings in other parts of the universe. Mossel Bay is the lone site in the universe where three of the GTL engineerings are in operation ; HTFT ( High Temperature Fischer Tropsch ) , LTFT ( Low Temperature Fischer Tropsch ) and COD ( transition of Olefins to Distillate ) . Equally good as being the first GTL works in the universe, the Mossel Bay Refinery has been the largest for 19 old ages since commissioning in 1992. The Fischer-Tropsch ( FT ) procedure is the transition of synthesis gas to liquid hydrocarbons and oxygenated hydrocarbons – gasoline, Diesel, kerosine and other fuels. Companies developing and using the engineering usage different combinations of accelerators, reactor types and procedure conditions. The FT reaction is accelerated through contact action and the reactions take topographic point in a reactor under controlled procedure conditions. Iron and Cobalt accelerators are largely applied in commercial applications. Reactor types used are go arounding fluidised bed ( CFB ) , fixed fluidised bed ( FFB ) , fixed bed and slurry bubble column reactors. The reactor runing temperature distinguishes the procedure conditions, so called High or Low temperature FT. The FT engineering commercially applied at the GTL Refinery in Mossel Bay, under license from Sasol, is an Iron-based accelerator used in a CFB reactor at a high temperature. This iron-based engineering produces a short-chain, olefinic hydrocarbon merchandise watercourse with a high selectivity for oxygenated merchandises. This procedure is suited for gasoline and chemicals production with lower volumes of Diesel produced. The GTL.F1 FT engineering, is a cobalt-based accelerator in a slurry bubble column reactor runing at a low temperature. This LTFT engineering produces chiefly longer concatenation paraffinic merchandises in the wax scope which is converted to diesel.
1.3. Rationale of the research
A turning industry consciousness of the gas monetization option offered by GTL combined with attempts to cut down development capital outgo and ( current ) high petroleum oil monetary values are factors which are promoting several of the universe ‘s major international energy companies to go on their attempts towards development of economically-attractive GTL engineering and undertakings. In such an environment, the about alone experience gained by PetroSA in developing the supplies for and runing the universe ‘s largest installation suggest that the licensing of its available GTL engineerings and /or development of the new-build GTL undertakings outside South Africa must be considered amongst the options to PetroSA, towards the company ‘s end of edifice on and commercializing its bing GTL and related experience. As shown in Figure 2, below, Technology transportation has many dimensions and all this must be considered during the procedure of engineering commercialisation. The chief focal point of this survey will be to find the best theoretical account for PetroSA to follow during the procedure of commercializing its LTFT engineering.
Figure 2. Transfer Technology
( Beginning: adapted from Padmanabhan et al. , 1994 )
2. Literature Review and Analysis
2.1 Technology and Technology Transfer
Merriam-Webster dictionary defines Technology as a capableness given by the practical application of cognition. Dorf and Worthington ( 1987 ) describes engineering as the engine of advancement, wealth creative activity, and hence the economic growing since the first industrial revolution. Le Grange and Buys ( 2002 ) defines engineering transportation, as the motion of engineering, dwelling of cognition, accomplishments and equipment, from an conceiver ‘s environment to a user ‘s environment. Keller and Chinta ( 1990 ) , describes International Technology Transfer as a procedure by which engineering is transferred across a boundary or boundaries to another organisation. The engineering can be transferred in a pure informational signifier, which has been called discorporate engineering transportation or the engineering can be embodied in the signifier of a merchandise, machine, procedure, or individual and so transferred. The advantage of an corporal signifier of transportation is that the individual, machine, package, etc. , “ bundles ” the know-how in a manner that makes the engineering able to be implemented.
Technologies subject to engineering transportation are as follow:
( a ) Registered patents, public-service corporation theoretical accounts, designs, and hallmarks
( B ) ( Non-registered ) know-hows including technological information or information of corporations, technological services, technological support etc.
( degree Celsius ) Other protective rights of computing machine package, semiconducting material french friess etc.
2.2 Technology Commercialization Models
Models in relation to the engineering commercialisation procedure are mostly divided into two types.
Jolly ‘s ( 1997 ) theoretical account which divides the 1 stage-multi faceted theoretical account of Cooper ( 1986 ) , Foxall ( 1986 ) , Knox ( 1990 ) , Kokubu ( 2001 ) , which possesses a additive construction from the thought to market entryway, and the commercialisation procedure into the chief activity phase and sub activity phase, and the multi degree – multi-faceted theoretical account of Yeong-deok Lee ( 2001 ) .
2.2.1 Kokobu ‘s engineering commercialisation procedure
In the engineering commercialisation procedure shown in Table 1, which covers from the R & A ; D phase to the selling phase, an rating is conducted at the terminal of each phase to make up one’s mind whether to continue to the following phase or to halt, and when arrest is decided, the possibility of supplying externally the chance of reassigning the R & A ; D consequences to day of the month is emphasized. At this phase, the grounds for the arrest may include technological troubles, uncertainness in commercialisation, insufficient development financess, market immatureness, alterations in precedence etc. Interim R & A ; D consequences are arranged into engineering information and commercial information, and by the creative activity of added value they are in a status where they can be distributed as engineering ware.
Conception & A ; feasibleness survey
Technological/commercial feasibleness survey
Principle research ( patent application for the prospective engineering )
Use enquiry ( patent application for the prospective engineering )
Specific use enquiry ( patent application for the prospective engineering )
Design/development/production of specific merchandise
Trading theoretical account design
Improvement & A ; concluding production readying
In-house industry & A ; consigned industry
Table 1. Kokobu ‘s engineering commercialisation procedure
2.2.2 Cooper ‘s engineering commercialisation procedure
In carry oning engineering commercialisation undertakings, it is a theoretical account for raising undertaking operation efficiency & A ; speed through the method of predetermining nucleus undertakings per phase and inspecting the advancement consequences, and the characteristic is its efficient allotment of development support. Because it consists of phases for each procedure and Gatess which determine undertaking advancement, it is besides called the Stage-Gate Process, and because each procedure regulates even the highly precise inside informations, as a whole, it takes on an organic feature.
( a ) Idea find phase
There are thoughts obtained from the basic research which have high hazard and non-productive features compared to the high expected income, and thoughts obtained from consumers which require apprehension of the market and the finding of the company ‘s strengths, failings, and nucleus competences.
Gate 1: Idea screen
Make a cheque list dwelling of inquiries like is the undertaking consistent with the concern policy sought by the house, is the undertaking executable, what is the size and attractive force degree of the market, does the merchandise have strong points, does it lend to increasing corporate resources etc. and carry on the phase 1 showing based on the yes/no replies.
( B ) Phase 1: Scoping
As review type undertakings to find whether there is value in footings of clip and economic sciences, activities such as preliminary market ratings, preliminary engineering ratings, and preliminary business/finance ratings are conducted.
Gate 2: Second screen
Based on the information obtained in phase 1, re-evaluation undertakings are conducted in relation to publicity capableness, consumer response to the merchandise, and Fatal factors in engineering and legal facet
( degree Celsius ) Phase 2: Building the concern instance
As the concluding phase before development, it consists of in-depth engineering rating, construct scrutiny ( research of penchants, purchase purpose, monetary value sensitiveness etc. ) , finance/business analysis, executing & A ; be aftering including consumer demand/request analysis, rival analysis, market analysis, and research lab trials.
Gate 3: Travel to development
Before resources are injected, fiscal analysis is of import as the last chance to call off the undertaking, and the concluding undertaking squad must be formed.
( vitamin D ) Phase 3: Development
Development of the existent merchandise is conducted in conformity with the development program. Trials are conducted on the lab-tested paradigm, and the trial program, merchandise cargo programs, and production installation operation programs are formulated.
Gate 4: Travel to proving
Examine that the advancement inside informations are as planned, and re-examine the program for the following phase.
( vitamin E ) Gate 4: Testing & A ; proof
The overall undertaking endurance possibility is examined such as the merchandise & A ; production procedure, consumer adaptability, and the economic facets of the undertaking. Extra inventions are performed on internal merchandise testing, merchandise consumer analysis, paradigm production, market proving & A ; trial gross revenues, business/finance analysis etc.
( degree Fahrenheit ) Gate 5: Travel to establish
As the concluding gate in engineering commercialisation, it is the last chance to call off the undertaking.
( g ) Phase 5: Launching
( H ) Post-launch reappraisal
Figure 3. Cooper ‘s Technology Commercialization Model
2.2.3 Jolly ‘s engineering commercialisation procedure
In a book called Commercialization of New Technology, Jolly ( 1997 ) proposed a 2 stage-multi faceted procedure theoretical account unlike the traditional additive engineering invention theoretical account for the commercialisation of developed engineering. By utilizing the engineering commercialisation rhythm theoretical account, Jolly explained engineering commercialisation by spliting the commercialisation procedure into the chief class which is the nucleus activity recognizing the value of the new engineering and the bomber class which is a procedure of related activities affecting stakeholders to fulfill those related to each phase and to carry through the purposes. Rather than a technological penetration being additive and sectional from the thought to market debut, it is a continual and consecutive procedure dwelling of 5 sub-processes and a series of activities called Bridgess which reciprocally connect each of these procedures. In conformity with this, the importance of the phase 2 support activities have been added which are merely every bit of import as the phase 1 nucleus activities. Particularly, if suited support activities in relation to the phase 2 activities are non performed, a gray country in commercialisation support is said to eventuate. The 5 phases of Jolly ‘s commercialisation are as follows ;
( a ) Idea Imaging
Technology commercialisation commences from the thought phase. The thing to observe in the thought imagination phase is the judgement of whether the thought is worthwhile to seek commercialisation. An thought is non something that has accumulated but develops through the capablenesss of new engineering and eternal interaction between market demands.
( B ) Technology Commercialization Possibility Inquiry & A ; Incubating
As a phase for happening out the possibilities and restrictions of engineering commercialisation, a more in depth research is conducted on the engineering, the research consequences are integrated into the merchandise & A ; procedure before commercialisation, a paradigm is produced or a trial phase is performed where connexion is made with the initial clients in the market, a phase required for effectual demand creative activity and market related analyses are conducted. This phase falls between the thought and selling phases, and is performed to increase the supplementation & A ; public-service corporation of the R & A ; D and excite more involvement from the resource supplier and stakeholders. The 2 chief grounds for most engineering commercialisation efforts neglecting in the incubation phase are the alterations in market conditions and deficiency of feasibleness in respects to initial demands.
( degree Celsius ) Product/Process Showing
This phase is related to merchandise development. Unlike other merchandises, with merchandises that are made based on new engineering one must acknowledge what merchandise is wanted by clients, and whether the merchandise integrating that engineering is carry throughing its map must be thought approximately. Product development is a series of activities including merchandise readying for market debut from the initial beginning from the design phase, and is a continual procedure affecting preliminary design of the production system, paradigm building, proving & A ; merchandise feasibleness analysis, merchandise & A ; production system supplementation, trial selling & A ; proof, production beginning & A ; cargo into the market.
( vitamin D ) Promoting Reception/Accumulation
No affair how good the thought is or how good it has been validated, innovations that are automatically accepted in the market are really rare. 27.5 % of new merchandises and procedure engineerings fail due to market factors that are hard to command. Another 26 % are developed with the idea that “ there is public demand ” but fail because purchasers can non be found or inadequacy in marketability. The schemes in this phase include response by the market, procuring a place in the market enabling acceptance by consumers, pricing for early acceptance, gross revenues scheme in calcium hydroxide with the leaning to buy, communications for widespread response etc.
( vitamin E ) Prolonging uninterrupted commercialisation & A ; realisation of long-run net incomes
The key to recognizing value from new engineering is the long-run continuation of the merchandise or procedure integrating the engineering as a merchandise with value, and a important part of the value created must return to the engineering developer. The specific methods to accomplish this include the protection of engineering application, increasing ingestion, exclusivity of nucleus engineering to procure long-run net incomes, the continuation of the engineering and the house established with that engineering.
Figure 4. Jolly ‘s Technology Commercialization Model
2.2.4 Yeong-deok Lee ‘s Technology Commercialization Process
In Yeong-deok Lee ‘s survey, Jolly ‘s theoretical account was evaluated as being applicable for new engineering commercialisation in the private sector of developed states where the overall substructure such as engineering development & A ; commercialisation related indirect community capital, information substructure, substructure engineering, system & A ; policy, engineering substructure etc. is good established. In instance of less developed states, where engineering development & A ; commercialisation related substructures are non good facilitated, Jolly ‘s theoretical account can non be applied as is, so assorted amendments are necessary, and particularly with the commercialisation of authorities supported development engineering, that are non for the intents of the authorities itself, he states that big parts must be amended. The inside informations of the amendments suggested in the same survey are as follows.
( a ) R & A ; D Initiating
With authorities supported R & A ; D in less developed states, to advance the spread of developed engineering, there needs to be a R & A ; D originating procedure where R & A ; D is proposed and a proposal drawn up by the joint engagement of the user & A ; developer in the R & A ; D proposal & A ; program puting procedure before the thought release phase in relation to the proposed R & A ; D engineering as suggested by Jolly. In this phase, the user sentiment is reflected in the R & A ; D program constitution in relation to the development capable engineering, and at the same clip, the user house jointly participates in the building of the R & A ; D proposal. Besides, with the bottom-up method, the industry sentiment is reflected in the find of R & A ; D topics, and the user can really play a prima function in the R & A ; D executing procedure. By this, the spread in respects to the R & A ; D aims & A ; functions that can look between the engineering developer and the user can be eliminated.
( B ) Locating & A ; Producing
After the engineering incubation phase, if the production of the paradigm utilizing the researched & A ;
developed engineering and the trial selling on initial clients is successful, factory location for
the existent concern must be secured and production installations for mass production must be
incorporated. So, in this phase, overall determinations are made in respects to factory location for onsite
production, engineering & A ; advice required for onsite production, engineering confederations with big
corporations, procuring adept production forces & A ; education/training, specialised production
through outsourcing, confederations & A ; connexions with production companies of bing merchandises etc.
However, in the instance of new houses using new engineering, because they have non been able to
make a suited degree in footings of concern, important jobs arise in expeditiously carry oning
production activities. Particularly, the support required in these sorts of activities is non the customary
R & A ; D related support, but funding for installations and operations, so non merely is the graduated table of the support
big, if a state of affairs where there is a deficiency of financess arises it is non easy to raise financess through loans
given that their concern record and recognition conditions are weak. As a consequence, within the extreme
environmental alterations & A ; timing there are many instances where new engineering merchandises that have
been successful in the sensitive trial selling can non take to a full graduated table production system and neglect
to come in the market.
3 ) Constructing a commercialisation substructure environment
Even if the spreads between the chief procedures and the sub-processes of commercialisation are filled
in the instance of less developed states with comparatively weak commercialisation related substructure,
it does non intend that the developed engineering will decidedly be commercialized. Subsequently, to
promote this engineering commercialisation, non merely is at that place a demand for the enlargement of related
corporate activities and the traditional direct community support, engineering substructure and
information substructure must be facilitated along with the constitutions of substructures in
existent corporate production activity related technology engineering, standardisation & A ; proving
engineering, measuring engineering etc. Together with these, systems, policies, and assorted
plans related to these substructure constitutions must be improved, and organic structures & A ;
organisations that can expeditiously run engineering commercialisation must be formed.
A theoretical account developed by Spann, Adams, and Souder ( 1995 ) efforts to reply the inquiries: What differences and similarities exist in engineering transportation prosodies as used by developers, patrons and adoptive parents? This survey was conducted utilizing NASA ‘s Marshall Space Flight Centre ( MSFC ) as the unit of analysis. Although the survey is generalized, its consequences suggest several ways that federal and private-sector directors could better the measuring of engineering transportation. However over-all it was recommended that each function could better its measuring patterns by placing those steps most appropriate in the entire procedure instead than concentrating on the most easy measured dimensions.
3. Research job statement and research aims
3.1. Problem statement
The job is that we do non cognize how different National Oil Companies step value created by geting a engineering during the engineering transportation procedure.
3.2. Research aims
The aim of this survey is to develop and suggest standards or factors that influence how different National Oil Companies value engineering. This appraisal will supply counsel in footings of the spreads that still exist during transportation of engineering to a National Oil Company, and will therefore supply both the engineering holder every bit good as the possible investor with a clearer image sing the benefits and hazards involved with the transportation of engineering.
In order to turn to the research job efficaciously it is proposed that:
Appropriate engineering rating standards for National Oil Companies be developed and applied to GTL engineering and be used to bespeak what value an NOC purposes to accomplish but geting the engineering
The developed standards will help PetroSA negotiate for optimal footings during the engineering transportation procedure.
3.3. Type of research
The research survey will consist of the undermentioned constituents ( comparative weights of the constituents are indicated in bold ) :
Theory edifice research – 30 %
Theory proving research – 10 %
Theory application research – 60 %
4. Expected part of the research
The survey will non lend to the organic structure of cognition with regard to engineering transportation mechanisms.
A practical guideline for the PetroSA New Ventures group to measure possible engineering clients
A tool that will supply purchase for PetroSA negociating scheme during the engineering transportation procedure between PetroSA and other National Oil Company. It will take to better determination devising when prosecuting new undertakings and accomplishment of engineering transportation benefits that are common to all parties involved.
5. Proposed research scheme and agenda
5.1 Proposed research scheme
In broader footings, the research scheme will dwell of:
Data excavation for information on old PetroSA/GTL.F1 engineering transportation undertakings
Secondary informations hunt for NOCs fiscal records and public presentation
A literature reappraisal that would place issues that are potentially critical in engineering rating by National Oil Companies
Data acquisition by agencies of semi-structured interviews with engineering direction forces, engineering holders and joint-venture spouse
Criteria analyses to standardise the result of the interviews and literature survey, whereby the part of each standard towards engineering rating will be determined
Data analysis consisting of categorization and correlativity analysis to set up tonss and weights of the rating standards
Testing the new choice standards on bing and proposes undertakings
5.2 Proposed research agenda
The proposed agenda is shown in Figure 1. Below
Figure 1: Agenda of the research survey
6. Proposed Table of Contentss of the research study
Chapter 1: Background
1.2 Historical development and current province of GTL undertakings
1.3 Research job
1.4 Rationale for the survey
1.5 Research aims
1.6 Key properties of the engineering rating standards by NOCs
Chapter 2: Literature study
2.1 Literature reappraisal
2.2 Current theories
2.3 Current theoretical accounts
2.4 Current engineering rating methods
Chapter 3: Conceptual method
3.1 Theories to be used in this survey
3.2 Models to be used in this survey
3.3 Methods to be used in this survey
Chapter 4: Research design and methodological analysis
4.1 Research scheme
4.2 Research methodological analysis
4.3 Research instrument
Chapter 5: Consequences – information gathered and analysis
5.1 Data assemblage procedure
5.2 Datas gathered
5.3 Data analysis
5.4 Proposed engineering rating standards
5.5 Testing engineering rating standards
5.6 New engineering rating standards
Chapter 6: Decisions and recommendations
6.1 Research consequences
6.2 Contributions to pattern
List of mentions
List of appendices
The research survey can be conducted in the clip available
The restrictions are that information on fiscal perfomance of National Oil Companies is non easy accessible due to confidential rights and besides because some of them are PetroSA ‘s direct rivals. However, some information is gettable due to presentations at international seminars.
Since the survey will be limited to the PetroSA experience and the selected National Oil Companies, therefore it can non be generalised to other participants in the GTL universe.
The principle for this survey it provides represents a critical trial of a important theory ( Yin, 2003 ) as good provides a tool for PetroSA to do strategic determinations whilst reassigning engineering to other National Oil Companies.