Mr Takolia said that the oil and gas value chain is based largely on risks and skills. At the early stages, it could cost upwards of R20 billion to do offshore exploration. South Africa did not manufacture rigs, or the cement going into the well or casing. It could supply some of the services but it cost US$500 000 a day to run the rig, and USD$1 million a day to do the drilling. In South Africa the opportunities for rig work is limited to case equipment and crew.