Offshore Projects in China Advantages & Risks Sam Shen, COOEC April, 2012
CONTENTS Offshore Projects China Advantages Risk Control Method 2
Going into More Difficult Environment Oil has been produced from The first oil FPSO was offshore locations since the the Shell Castellon, The first oil FPSO fabricated in China late 1940s. built in Spain in 1977 named Bo Hai You Yi was operatered in 1993. Shell and Samsung announced an agreement to build up to 10 LNG FPSOs in 2009 160 FPSOs in the worldwide in 2010. 40-50 FPSO facilities are needed in the next 5 years. 1940s 1970s 1990s 2000s Present Fixed Platforms + Jackets Floating Facilities + Subsea Units From shallow to deep, remote, even Arctic Areas 3
Increasing Demand for Energy Facilities FPSO Demand Billion More demand for deep water facilities especially in South Americas and Western Africa Many large-scale Onshore LNG Projects 4
Projects / Modules Getting Bigger LD 27-2/32-2 Project (PSP/11,500T) BZ34-1 Project Jack-up Drilling Rig (CEP/ 9,200T) (6800T 4) JZ25-1SProject (CEPA/ 9,800T) JX 1-1 Project (CEPA/ 9,900T) Nickel Modularized Plant (40,000T) Page 5 5
Modularization Trend Fabrication in Offshore Site Yards Transportation Installation 6
What is required? Innovative and Reliable engineering support Large & first-class Fabrication Facilities A large pool of experienced workers in particular Availability of necessary materials / equipment locally Sound logistic support like heavy lift / sea transportation 7
CONTENTS Offshore Projects China Advantages Risk Control Methods 8
Advantages of Yards in China Most Material and equipment available in China Technical Compliance of Chinese Materials Cost and time effectiveness of Materials made in China Adequate Skilled Workforce Available Many Excellent Yards already Qualified by International Clients 9
COOEC Qingdao Yard Facilities Quay Line: 1,645 M Quay Water Depth: 10~12.4 M Total Area: 1,200,000 M 2 Annual Fabrication Capacity: 270,000 000 T Dry Dock: 420 M 110 M 13.9 M 10 The yard has experience with EPCI contract in the Asia Pacific region for oil & gas industry.
International Projects Reference Duration: 2007.09-2008.03 Description: 3 Topside Modules Weight: 700 T Client: MODEC Opportunity Topsides Pyrenees FPSO Project PB GAS II Duration: 2007.09-2008.06 Description:10 Topside Modules Module Weight:6,900 T Client:MODEC Duration: 2008.04-2009.09 Description: 10 Topside Modules Module Weight: 5,500 T Client: BHP Billiton Duration: 2008.04-2009.08 Description : 11 Topsides Modules Module Weight: 6,445 T Client: Petrobras 11 Page 11
Modular Plant for Xstrata COOEC strategically extended business to onshore market by signing a construction contract in 2008, which is an integrated and modularized nickel metallurgical plant. Client : Xstrata, t Canada Construction Yard : COOEC Qingdao Yard Site Location : New Caledonia Scope of Work : Shop Design, Procurement & Construction Construction Weight : 30,000 Tons Page 12
Gorgon Project for Chevron Project Name : Chevron GORGON PARs Duration : 2011.01-2012.09 Description 157 Modules Weight : 37000 T Client: Chevron Page 13
Qualified and Accepted by International Clients We Can Do It! Page 14
COOEC FPSO Experience COOEC FPSO Experience No. PROJECT NAME CLIENT YEAR 1 QHD 32-6 FPSO Project CNOOC / ARCO 1999 2 Wen Chang FPSO EPC Project CNOOC / Husky 1999 3 FPSO Modification Project for PL19-3 Conoco Phillips 2001 4 PY 4-2 / 5-1 FPSO EPC Project CNOOC 2002 5 CFD 11-1 / 11-2 FPSO EPC Project KMG 2002 6 BZ 25-1 FPSO EPC Project CNOOC 2002 7 BN FPSO EPC Project CNOOC 2003 8 Nan Hai EPC Project XI Jiang & Wen Chang (QD Yard) CNOOC 2005 9 PL 19-3 FPSO Hook-up Commissioning Project Conoco Phillips 2006 10 Liu Hua FPSO Repair project CNOOC 2007 11 TSJOC FPSO Topside Project (QD Yard) TSJOC 2007 12 PB Oil FPSO Topside Project (QD Yard) Petrobras 2007 13 Pyreneese FPSO Topside EPC+Integration (QD Yard) BHPB 2007 14 PB Gas ll FPSO Topside Project (QD Yard) Petrobras 2008 15 Tupi FPSO Topside Project Petrobras 2009 BHPB Pyrenees FPSO Topsides Project Petrobras Opportunity FPSO Topsides Project TSJOC FPSO Topsides Project HAIYANG SHIYOU 116 (Wen Chang Project) HAIYANG SHIYOU 115 (Xi Jiang Project) HAIYANG HIYOU 113 (BZ25-1Project) HAIYANG SHIYOU 112 (CFD Project) 15
CONTENTS Offshore Projects China Advantages Risk Control Methods 16
Risk Control Method Choose the right vendor / yard Pre-qualifications prior to order placement; Sound Quality & HSE Management System CHINA Equipment and Facilities Personnel Qualifications Project References 17
Risk Control Method More attention to process control for new partners; Place more staff for supervision and surveillance CHINA Training Programs (once found necessary) Close Monitoring of Progress Performance Minimize Culture conflict 18
Risk Control Method Establish Strategic Partnership with First Class vendors Select Best Partners CHINA Establish Cooperation Framework Revise / Improve Cooperation Model 19
THANK YOU! ADDRESS: No.1078, Dan Jiang Road, Tanggu, Tianjin, 300451, P.R.China CONTACT : Mr. Li XiaoWei i ADDRESS: No.492, Lian Jiang Road, Qingdao Economic & Technical Development Zone, Qingdao, 266555, P.R.China TEL: +86 22 6690 8879 CONTACT : Mr. Shen Weihe FAX: +86 22 6690 8899 TEL: +86 532 8675 8188 WEBSITE: www.cnoocengineering.com FAX: +86 532 8675 8987 E-MAIL: lxw@mail.cooec.com.cn WEBSITE: www.cnoocengineering.com g E-MAIL: mbteam@mail.cooec.com.cn swh@mail.cooec.com.cn