Presentation at Finpro Market Opportunity Day 22.10.2013.

1. The Possibilities in Offshore
Industry in East and Southeast
Asia

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. 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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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16. Comparing Market Entry Strategies: Singapore &
Malaysia
Singapore
Malaysia
Petronas
Keppel
Corporation
Partner
Sembcorp
Marine
Partner
Partner
Finnish company
23/10/2013
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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
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