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Offshore toimialan mahdollisuudet Kaakkois Aasiassa


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Presentation at Finpro Market Opportunity Day 22.10.2013.

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Offshore toimialan mahdollisuudet Kaakkois Aasiassa

  1. 1. The Possibilities in Offshore Industry in East and Southeast Asia
  2. 2. The Regional Focus Areas in Offshore Industry • U.S. and European based companies control of the key technologies of offshore equipment, having general contracting capacities, and are still engaged in construction of high-end offshore facilities. • Singaporean and South-Korean companies take leading position in the field of assembly construction, having already certain capacities as international general contractors. • China is still mainly engaged in the construction for low-end equipment and subcontracting, but is gradually entering the general contracting and deep-water fields related equipment. • Norwegian companies are the leading offshore operators.
  3. 3. Value Chain in Offshore Industry Designer • Technical consulting • Concept design • Functional systems decided • Modules Construction • Integration • Turnkey Project Management • EPCI, EPC Owner: Oil companies, Operators • Capital • Idea of facility 23/10/2013 General Contractor Sub-contractor Companies: Constructor, SI Designer © Finpro System & Equipment Suppliers • Basic design • Detailed design • Production design 3
  4. 4. Offshore Industry in China • • Chinese offshore oil and gas exploration and development and production are exclusively granted to China National Offshore Oil Corp (CNOOC), China National Petroleum Corp (CNPC) and China Petroleum & Chemical Corp (Sinopec) • China Oilfield Services Limited (COSL), a subsidiary of CNOOC, has approx. 95% market share of China’s offshore drilling market • 23/10/2013 China is one of four main countries for building offshore oil and gas exploration and production facilities and engineering vessels Foreign oil companies are allowed to access to offshore oil and gas business (exploration, development and production) only via partnering with the three Chinese oil companies, and the Chinese oil company must maintain at least 51% share of the joint project. © Finpro 4
  5. 5. Offshore Industry in China • • More than 60% of oil production in China is onshore, but most new discoveries are offshore. Many discoveries have been made in recent years - 121 new oil & gas fields. China’s offshore still has huge resource potential. • 23/10/2013 CNOOC is the leading offshore oil company dominating at least 90% China offshore oil & gas business. CNPC is a leading onshore oil company dominating the upstream while Sinopec is dominating the onshore downstream business. China has the status of observer in Arctic Council © Finpro 5
  6. 6. China Oilfield Services Limited More than half of COSL rigs are older than 10 years Only 14.3% rigs can operate in deep water (>1500 ft) 14,3% 45% 55% >1500 ft ≥10 years 85,7% COSL owns 34 drilling rigs all together and one drill rigs to be on stream and operates 22 drill rigs in Chinese offshore. 23/10/2013 © Finpro 6
  7. 7. China’s main Offshore Oil and Gas Fields Beijing Bohai Bay Shanghai East China Sea Guangzhou Hong Kong South China Sea 23/10/2013 © Finpro 7
  8. 8. Offshore Industry in Australia • Over 80% of Australia’s gas reserves and over 95% of oil reserves are located offshore • • • 13 new offshore petroleum exploration permits awarded in 2013 by Australian Government. • • 23/10/2013 Spending on oil & gas exploration in Australia is concentrated on offshore activities (~71% of spending) Of total exploration expenditure in 2012, offshore accounted for AUD 2.8 billion (EUR1.9 billion) New investments Western Australia and Tasmania offshore over the next 1-2 years with AUD 180 million (EUR 127 million). With the proposed secondary work programs expenditure could rise to more than AUD 550 million (EUR 345 million). Source: APPEA 2013 – Key Statistics © Finpro 8
  9. 9. Australia’s main Offshore Oil and Gas Fields Bonaparte Basin Browse Basin Carnarvon Basin Brisbane Perth Basin Perth Sydney Melbourne Otway Basin • 23/10/2013 Gippsland & Bass Basin In terms of offshore exploration, the northern Carnarvon basin attracts the highest levels of industry activity © Finpro 9
  10. 10. Main Industry Players in Australia • • Apache Corp: big build-up in its Australia oil and gas operations over the next 3 years. Plans to spend a record ~USD 4 billion (EUR 3 billion) for new projects in Western Australia (Carnarvon Basin) in 2013 and 2014. • Shell: AUD 12 billion (EUR 8.2 billion) Prelude project in progress, off the West Australian coast, will be the first and largest LNG facility ever built in the world. • 23/10/2013 Santos: Gas discovery in the Carnarvon Basin offshore WA. Potential commercialisation opportunity, including possible expansion of Santos’ existing production. Woodside Petroleum: potentially developing a multibillion-dollar LNG processing plant for discoveries in the Browse Basin © Finpro 10
  11. 11. Offshore industry in Singapore • • • • About 70% of the global jack-up rigs and vessel conversions into floating oil production units are made in Singapore. Singapore is very active in the arctic marine business and for example building multi purpose vessels with ice breaking capacity for Norway- the country has also the status of observer in Arctic Council No local certificates required to enter offshore industry Keppel Corporation and Sembcorp Marine are the 2 world’s largest builders of offshore oil rigs. – At the end of last year, net order books stood at SGD 12.8 billion (EUR 7.5 billion) for Keppel and SGD13.6 billion (EUR 8 billion) for Sembcorp Marine. – Keppel is expected to receive SGD 5.5 billion (EUR 3.2 billion) in orders this year and Sembcorp Marine to receive SGD 4.5 billion (EUR 2.7 billion). Deliveries of these orders are scheduled through to 2019. 23/10/2013 © Finpro 11
  12. 12. Keppel partners PEMEX to Strengthen Foothold in Mexico Joint Venture to develop yard to build jack-up rigs “Keppel Offshore & Marine (Keppel O&M) has strengthened its foothold in the offshore and marine industry in Mexico with the signing of an MOU (Memorandum of Understanding) with PEMEX Exploracion y Produccion (PEP) and P.M.I. Norteamérica, S.A. de C.V. (PMI), both subsidiaries of Mexico's national oil company, Petroleos Mexicanos (PEMEX). The MOU is to jointly develop, own and operate a yard facility in Mexico, the first phase of which is to support the construction of six KFELS B class jack-up drilling rigs for PEP...” Keppel CorporationPress Release, October 4th 2013 23/10/2013 © Finpro 12
  13. 13. Offshore industry in Malaysia • The oil and gas industry plays a prominent role in the Malaysian economy, contributing to one-fifth of the national GDP over the past decade • The national oil company of Malaysia, Petronas, has the entire ownership and control of the petroleum resources in the country 23/10/2013 © Finpro 13
  14. 14. Business Opportunities in Malaysia • Malaysian Government has established Entry Point Projects (EPPs) to support the identified National Key Economic Areas with an estimated investment volume of 100 billion Euro by 2020 • Finpro has identified business opportunities for Finnish companies at least in three Entry Point Projects: – EPP 2: Developing small fields through innovative solutions each of which hold at least 30 million barrels of recoverable oil – EPP 4: Building a regional storage and trading hub which leverages Malaysia’s strategic port locations on major shipping routes for crude oil and refined products – EPP 8: Developing Engineering, Procurement and Installation Capabilities and Capacity through Strategic Partnerships and Joint Ventures 23/10/2013 © Finpro 14
  15. 15. Business Opportunities in Malaysia • Other Entry Point Projects, in which Finnish offering might have business opportunities: – EPP 1: Rejuvenating existing fields through enhanced oil recovery (EOR) a technique that uses gas, chemical injection or thermal flooding – to improve oil recovery from industry norms – EPP 3: Intensifying exploration activities to boost new and sizeable discoveries to maintain Malaysia’s position as one of Asia’s top oil and gas producers – EPP 5: Unlocking premium gas demand in Malaysia through import of LNG farther afield at market prices to counter declining domestic production and increase industrial demands – EPP 6: Attracting MNCs to bring their global oil field services and equipment operations to Malaysia aiming to attract 10-20 major firms in the oil field services and equipment (OFSE) industry to base their business operations in Malaysia – EPP 7: Consolidating Domestic Fabricators to encourage market-led consolidation of Malaysian fabricators to increase financial resources and increase knowledge and technology transfer, thus becoming more competitive in the region 23/10/2013 © Finpro 15
  16. 16. Comparing Market Entry Strategies: Singapore & Malaysia Singapore Malaysia Petronas Keppel Corporation Partner Sembcorp Marine Partner Partner Finnish company 23/10/2013 © Finpro 16
  17. 17. Global Finpro Network in Asia Australia: Sydney China: Beijing, Shanghai, Guangzhou, Hong Kong India: New Delhi, Mumbai, Chennai Indonesia: Jakarta Japan: Tokyo, Sendai Malaysia: Kuala Lumpur Philippines: Manila South Korea: Seoul Taiwan: Taipei Thailand: Bangkok Republic of Singapore: Singapore Vietnam: Hanoi, Ho Chi Minh City 23/10/2013 © Finpro 17