Offshore Projects in China Advantages & Risks

Offshore Projects in ChinaAdvantages & Risks

Sam Shen, COOEC

April, 2012

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　　Offshore Projects

　　Risk Control Method

　　China Advantages

CONTENTSCONTENTS

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1940s 1970s 1990s 2000s Present …

The first oil FPSO was the Shell Castellon, built in Spain in 1977

Shell and Samsung announced an agreement to build up to 10 LNG FPSOs in 2009

Oil has been produced from offshore locations since the late 1940s.

Fixed Platforms + Jackets → Floating Facilities + Subsea Units

From shallow to deep, remote, even Arctic Areas

Going into More Difficult Environment

The first oil FPSO fabricated in China named “Bo Hai You Yi” was operatered in 1993.

160 FPSOs in the worldwide in 2010.

40-50 FPSO facilities are needed in the next 5 years.

… …

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Increasing Demand for Energy Facilities

•More demand for deep water facilities especially in South Americas and Western Africa•Many large-scale Onshore LNG Projects

FPSO Demand

Billion

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Projects / Modules Getting Bigger

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BZ34-1 Project (CEP/ 9,200T)

LD 27-2/32-2 Project (PSP/11,500T)

Jack-up Drilling Rig

(6800T×4)

JX 1-1 Project

(CEPA/ 9,900T)

Nickel Modularized Plant

(40,000T)

JZ25-1SProject

(CEPA/ 9,800T)

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Modularization Trend

Fabrication in Yards

Offshore Transportation

Site Installation

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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

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　　Offshore Projects

　　Risk Control Methods

　　China Advantages

CONTENTSCONTENTS

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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

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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

COOEC Qingdao Yard Facilities

The yard has experience with EPCI contract in the Asia Pacific region for oil & gas industry.

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Opportunity Topsides Pyrenees FPSO Project

PB GAS II

Duration ： 2007.09-2008.03

Description: 3 Topside Modules

Weight: 700 T 　Client ： MODEC

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

International Projects Reference

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Modular Plant for XstrataCOOEC 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

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Gorgon Project for Chevron Gorgon Project for Chevron

Project Name ： Chevron GORGON PARs Duration ： 2011.01-2012.09 Description 157 Modules Weight ： 37000 T Client ： Chevron

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Qualified and Accepted by International Clients

We Can Do It!

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COOEC FPSO ExperienceNo. PROJECT NAME CLIENT YEAR

1 QHD 32- 6 FPSO Project CNOOC / ARCO 19992 Wen Chang FPSO EPC Project CNOOC / Husky 19993 FPSO Modification Project for PL19-3 Conoco Phillips 20014 PY 4-2 / 5-1 FPSO EPC Project CNOOC 20025 CFD 11-1 / 11-2 FPSO EPC Project KMG 20026 BZ 25-1 FPSO EPC Project CNOOC 20027 BN FPSO EPC Project CNOOC 2003

8Nan Hai EPC Project XI Jiang & Wen

Chang (QD Yard)CNOOC 2005

9PL 19-3 FPSO Hook-up Commissioning Project

Conoco Phillips 2006

10 Liu Hua FPSO Repair project CNOOC 2007

11TSJOC FPSO Topside Project (QD

Yard)TSJOC 2007

12PB Oil FPSO Topside Project (QD

Yard)Petrobras 2007

13Pyreneese FPSO Topside

EPC+Integration (QD Yard)BHPB 2007

14PB Gas ll FPSO Topside Project (QD

Yard)Petrobras 2008

15 Tupi FPSO Topside Project Petrobras 2009

COOEC FPSO Experience

Petrobras Opportunity FPSO Topsides Project

TSJOC FPSO Topsides Project

BHPB Pyrenees FPSO Topsides Project

HAIYANG SHIYOU 116 (Wen Chang Project)

HAIYANG HIYOU 113 (BZ25-1Project)

HAIYANG SHIYOU 112 (CFD Project)

HAIYANG SHIYOU 115 (Xi Jiang Project)

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CONTENTSCONTENTS

　　Offshore Projects

　　Risk Control Methods

　　China Advantages

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Risk Control Method

Choose the right vendor / yard – Pre-qualifications prior

to order placement;

Sound Quality & HSE Management System

Equipment and Facilities

Personnel Qualifications

Project References

CHINA

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Risk Control Method

More attention to process control for new partners;

Place more staff for supervision and surveillance

Training Programs (once found necessary)

Close Monitoring of Progress Performance

Minimize Culture conflict

CHINA

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Risk Control Method

Establish Strategic Partnership with First Class vendors

Select Best Partners

Establish Cooperation Framework

Revise / Improve Cooperation Model CHINA

THANK YOU!

ADDRESS: No.1078, Dan Jiang Road, Tanggu, Tianjin, 300451, P.R.ChinaCONTACT : Mr. Li XiaoWei TEL: +86 22 6690 8879FAX: +86 22 6690 8899WEBSITE: www.cnoocengineering.comE-MAIL: lxw@mail.cooec.com.cn

ADDRESS: No.492, Lian Jiang Road, Qingdao Economic & Technical

Development Zone, Qingdao, 266555, P.R.ChinaCONTACT : Mr. Shen Weihe TEL: +86 532 8675 8188FAX: +86 532 8675 8987WEBSITE: www.cnoocengineering.comE-MAIL: mbteam@mail.cooec.com.cn swh@mail.cooec.com.cn