China to Invest USD 1.5 trln in Oil and Gas Exploration and Production
OREANDA-NEWS. December 22, 2011. China’s offshore oil and gas sector is expected to get the majority of the USD 1.5 trillion investment in the country's energy plan (2011-2015). The nation also announced it anticipates domestic oil production will be increased to 500,000 barrels per day by 2015.
China National Offshore Oil Company (CNOOC) increased its investment by 30 percent in the South China Sea during 2011. China National Petroleum Corp, Sinopec, Exxon-Mobile and BP are also working in the offshshore sector and are expected to invest heavily in its development as well.
At the recent Offshore Support Vessel-China Conference in Shanghai a number of key players in the OSV vessel and shipbuilding industry gathered to discuss the new opportunities. But, safely and vessel technologies and well production activities were highlighted too.
Simon Liang, CEO, Sinopacific Shipbuilding Group and John Janik, CEO, Electronic Power Design (EPD Asia and the EPD worldwide group), kicked off the two-day seminar recently at the Grand Hyatt Shanghai. Liang, whose company is the largest builder of energy support vessels in China, shared Sinopacific’s ‘Five Year Plan’ (2011-2015), which offered the key advantages of building OSVs in China as well as some of the challenges.
Janik, whose integrated ‘Engine Operating Station’ (EOS) have been installed in hundreds of offshore energy support vessels around the world, explained the benefits of the EOS systems for owners and shipyards. EPDs' integrated containerized power systems are locked during vessel construction and only reopened during commissioning. He also spoke about the importance of strategic partnerships and of real-time testing as well as properly training the end users. EPD operates around the world and has manufacturing and service facilities in the U.S., Brazil, China and Singapore.
Denis Welch, CEO of IHC Merwede - South East Asia, acted as moderator for the event. Arnstein Eknes, Segment Director-Special Ships, Det Norske Veritas, discussed technological challenges facing the changing world of multi-purpose vessels and well intervention. Other presenters included Leong Seng Keat of Nam Chong, Dr. Markus Johannes Voege of Drydock World UAE, Paul Zhou of China Merchants Heavy Industry, John Payne of Hallin Marine, Xu Guang of China Export & Credit Insurance Corporation, Gerhard Aulbert and George Zhang Guanhao of Germanischer Lloyd.
The South China Sea and deepwater areas between Hong Kong and Hainan Island and ultra-deepwater offshore hold the best promise for oil and gas production. Meanwhile, the nation's imports are estimated to be about 50% of its consumption and the unrest in the Middle East is has increased the emphasis on the nation's offshore, which how makes the sector a major part of its overall energy dependence strategies.