Finpro opportunities in the offshore industry


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Asia is interesting market for companies in the offshore sector. Levels of investment are growing and the significance of these regions is expected to increase.

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Finpro opportunities in the offshore industry

  1. 1. OPPORTUNITIES IN THE OFFSHORE INDUSTRY EAST AND SOUTHEAST ASIA China China is one of the four leading countries in terms of constructing offshore oil and gas exploration and production facilities, and in terms of building engineering and construction vessels. Licenses for offshore oil and gas exploration and development and production are exclusively granted to China National Offshore Oil Corp (CNOOC), to China National Petroleum Corp (CNPC) and to China Petroleum & Chemical Corp (Sinopec). Foreign companies are only allowed access to the country’s offshore oil and gas business through partnerships with these three Chinese companies, and the Chinese partner’s share of any joint project must be at least 51%. Australia Over 80% of Australia’s known gas reserves and more than 95% of its known oil reserves are located offshore. Investments in oil and gas exploration in Australia are focused on offshore activities and make up approximately 70% of total expenditure - in 2012, investment in the offshore sector totaled AUD 2.8 billion (EUR 1.9 billion). The Australian government has awarded 13 new offshore petroleum exploration permits this year (2013).
  2. 2. Business opportunities in the offshore industry in East and Southeast Asia Singapore Some 70% of the world’s jack-up rigs are now built in Singapore and seven out of ten vessel conversions into floating oil production units take place there. Companies operating in Singapore are very active in the Arctic marine sector, one example is the building of multipurpose vessels with icebreaking capacity for Norway. Singapore has been granted permanent observer status at the Arctic Council. Keppel Corporation and SembCorp Marine, Singapore’s rig makers, are among the world’s largest builders of offshore oil rigs. At the end of 2012, Keppel’s net orderbook stood at SGD 12.8 billion (EUR 7.5 billion) and SembCorp Marine’s net orderbook was SGD 13.6 billion (EUR 8 billion). Katja Haukipuro Consultant +358 40 762 7874 Malaysia The oil and gas sector plays a central role in the Malaysian economy, contributing approximately one fifth of national GDP. Petronas, Malaysia’s stateowned oil company, owns and controls all of the country’s petroleum resources. To support National Key Economic Areas (NKEAs), the Malaysian government has established Entry Point Projects (EPPs) with investment totaling EUR 100 billion expected by 2020. The 12 EPPs in the Oil, Gas and Energy sector represent potential business opportunities for companies operating in the industry. Pietro Karjalainen Area Sales Manager pietro.karjalainen(a) +358 20 469 5787
  3. 3. Business opportunities in the offshore industry in East and Southeast Asia South Korea South Korean companies specialize in building offshore rigs - in terms of value, deliveries from South Korea are the world’s largest. Hyundai, Samsung and DSME, the three biggest marine industry companies, are all based in South Korea. South Korean shipyards are seeking to improve their competitiveness in the offshore construction sector and are always looking for new partners. South Korea’s government has identified offshore research and construction in the Arctic as a focus area, so there is specific demand for related Finnish know-how. In this connection, South Korea is currently Norway’s most important business partner in Asia. The value chains for containerships and offshore rigs differ significantly: in containerships, some 90% of the machinery, equipment and other requirements are sourced locally, in offshore rig construction this figure is only 20%. Finnish companies planning to do business with South Korean offshore players should have a good working knowledge of the vessel owners, system integrators and shipyards they will Katja Haukipuro Consultant +358 40 762 7874 be dealing with. A large proportion of the vessel owners Shell and Statoil are good examples - are Europe-based, and system integrators such as ABB and Kongsberg are familiar to Finnish companies. The majority of procurement decisions are made by shipyards. Could growth for your company come from offshore operations in East and Southeast Asia? Finpro has long experience of Asian markets and extensive local knowhow. Our experts have wide-ranging contact networks and can help you gain access to decision makers. We understand both the industry value chains in different countries and their business requirements. By participating in global value chains, your company can expand through involvement in projects in growth sectors in other markets. To seize these business opportunities, contact us for further information. Pietro Karjalainen Area Sales Manager pietro.karjalainen(a) +358 20 469 5787