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,
late 1940s.
built in Spain in 1977
1940s
Fixed Platforms + Jackets
The first oil FPSO
fabricated in China
named “Bo Hai You
Yi” was operatered
in 1993.
1970s
→
1990s
Shell and Samsung
announced an
agreement to build up
to 10 LNG FPSOs in
2009
2000s
160 FPSOs in the
worldwide in 2010.
40-50 FPSO facilities
are needed in the
next 5 years.
Present …
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)

JZ25-1SProject
(CEPA/ 9,800T)
BZ34-1 Project
(CEP/ 9,200T)

JX 1-1 Project
(CEPA/ 9,900T)

Jack-up Drilling Rig
(6800T×4)

Nickel Modularized Plant
(40,000T)
Page 5
5
Modularization Trend
Fabrication in
Yards
Offshore
Transportation
Site
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 M2
 Annual Fabrication Capacity: 270,000 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
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
PB GAS II
Duration: 2008.04-2009.08
Description : 11 Topsides
Modules
Module Weight: 6,445 T
Client： Petrobras Page 11
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, Canada
Construction Yard : COOEC Qingdao Yard
Site Location : New Caledonia
Scope of Work : Shop Design, Procurement &
Construction
 Construction Weight : 30,000 Tons




Page
12
12
Gorgon Project for Chevron





Project Name ：
Duration ：
Description
Weight ：
Client：
Chevron GORGON PARs
2011.01-2012.09
157 Modules
37000 T
Chevron
Page
13
13
Qualified and Accepted by International Clients
We Can Do It!
Page
14
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
Nan Hai EPC Project XI Jiang & Wen
Chang (QD Yard)
PL 19-3 FPSO Hook-up
Commissioning Project
Liu Hua FPSO Repair project
TSJOC FPSO Topside Project (QD
Yard)
PB Oil FPSO Topside Project (QD Yard)
Pyreneese FPSO Topside
EPC+Integration (QD Yard)
PB Gas ll FPSO Topside Project (QD
Yard)
Tupi FPSO Topside Project
CNOOC
2003
CNOOC
2005
Conoco Phillips
2006
CNOOC
2007
TSJOC
2007
Petrobras
2007
BHPB
2007
Petrobras
2008
Petrobras
2009
8
9
10
11
12
13
14
15
BHPB Pyrenees FPSO
Topsides Project
HAIYANG SHIYOU 116
(Wen Chang Project)
HAIYANG SHIYOU 115
(Xi Jiang Project)
Petrobras Opportunity
FPSO Topsides Project
HAIYANG HIYOU 113
(BZ25-1Project)
TSJOC FPSO Topsides
Project
HAIYANG SHIYOU 112
15
15
(CFD Project)
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
Equipment and Facilities
CHINA
Personnel Qualifications
Project References
17
Risk Control Method
More attention to process control for new partners;
Place more staff for supervision and surveillance
Training Programs (once found necessary)
CHINA
Close Monitoring of Progress Performance
Minimize Culture conflict
18
Risk Control Method
Establish Strategic Partnership with First Class vendors
Select Best Partners
Establish Cooperation Framework
CHINA
Revise / Improve Cooperation Model
19
THANK YOU!
ADDRESS: No.1078, Dan Jiang Road,
Tanggu, Tianjin, 300451, P.R.China
CONTACT : Mr. Li XiaoWei
TEL:
+86 22 6690 8879
FAX:
+86 22 6690 8899
WEBSITE: www.cnoocengineering.com
E-MAIL:
lxw@mail.cooec.com.cn
ADDRESS: No.492, Lian Jiang Road,
Qingdao Economic & Technical
Development Zone, Qingdao, 266555, P.R.China
CONTACT : Mr. Shen Weihe
TEL:
+86 532 8675 8188
FAX:
+86 532 8675 8987
WEBSITE: www.cnoocengineering.com
E-MAIL: mbteam@mail.cooec.com.cn
swh@mail.cooec.com.cn